Intimate Merger, Inc.

Business Details

Intimate Merger, Inc. supports client companies' digital marketing initiatives and DX promotion based on its proprietary data management platform, IM-DMP. The core of its business is the collection, analysis, and provision of audience data utilizing IM-UID, and it offers a variety of services including post-cookie solutions, AI-ready data provision, and performance-based advertising operation. The company is promoting a shift in its revenue structure from operation-agency-type services to data-infrastructure-provision-type services. Major customers are Fan Communications (13.0% of net sales) and Lawson/United Cinema (11.9% of net sales).

Recent Overview

In the first half of FY2026 (ending September 2026), the company achieved year-on-year growth in both net sales and profit, and maintained its full-year forecast

In the first half of FY2026 (ending September 2026) (October 2025 to March 2026), net sales were ¥1,809 million (up 6.8% year on year), operating profit was ¥159 million (up 19.7% year on year), and net income attributable to owners of parent for the first half was ¥109 million (up 23.7% year on year). IM-UID has become established as data infrastructure via Google Ad Manager and other platforms, and ad delivery volume has increased. Demand for high-quality audience data for generative AI has also surged. On the other hand, selling, general and administrative expenses increased to ¥339 million (up 6.1% year on year) due to increases in fixed costs such as server expenses and in sales promotion expenses. Operating cash flow was ¥128 million (down from ¥150 million in the same period of the prior year), mainly due to corporate tax payments of ¥64 million. There has been no change to the full-year earnings forecast (net sales of ¥3,704 million, operating profit of ¥284 million).

Key Products

Growth Drivers

• Continued demand for post-cookie solutions (IM-UID): Cookie usage restrictions in the domestic browser environment have continued, leading to increased ad delivery volume utilizing IM-UID and steady expansion of data usage fees
• Expansion of generative-AI-related demand: Demand for high-quality audience data aimed at AI-agent-driven applications and SGE/LMO compliance has surged rapidly, expanding the company's role as AI-ready data infrastructure
• Shift in revenue structure toward infrastructure provision: The business model transition from operation-agency-type (managed-type) services to data-infrastructure-provision-type services is building a scalable, highly profitable business structure
• Expansion of self-service-type accounts: The company is promoting the provision of self-service-type data procurement services within its marketing support business, contributing to increased per-unit prices
• Release of new services and pricing structures: The release of new services and new pricing structures in the data management and data analytics domain has led to increased inquiries and business discussions

Risks

• Risk of dependence on large spot projects: Dependence on specific projects poses a risk of causing fluctuations in business performance (there is a track record of the loss of a large spot project in the same period of the prior year becoming a factor in decreased revenue)
• Risk of privacy regulation and technical specification changes: The data utilization environment is subject to change at any time due to amendments to the Personal Information Protection Act and changes in browser specifications (tightening of cookie restrictions)
• Major customer concentration risk: The company has a high degree of revenue dependence on Fan Communications (13.0% of net sales) and Lawson/United Cinema (11.9% of net sales)
• Competition and technological innovation risk: The pace of technological innovation in the internet market is fast, requiring continuous development investment to maintain competitive advantage
• Risk of stagnation in the number of marketing support accounts: In-house operation of advertising by client companies remains limited in some cases, and growth in the number of accounts has tended to stagnate
• Risk of increasing costs: Selling, general and administrative expenses are expanding due to increases in fixed costs such as server expenses and in sales promotion expenses, which could constrain improvement in profit margins
• Risk related to transparency and ethics in AI utilization: As the social implementation of generative AI progresses, societal demands regarding algorithmic fairness, data provenance management, and protection of user privacy are increasing, which could raise the cost of compliance