In Q1, both sales and operating profit surpassed the estimates of auto marketplace operator Proto Corp. and the previous corresponding period’s results. Higher sales significantly lifted gross profit and, as a result, operating income.

The segment of Japan-based Proto Corp. which includes the flagship auto vertical brand GooNet, maintenance shop search service GooNet Pit and sales support tools for new car dealers, saw revenue improve by Y378 million to Y7.4 billion.

The segment’s operating income grew 6.5% year-on-year to Y2.3 billion—more than the group’s quarterly operating income of Y2.1 billion ($15.6 million U.S.), which was up around 17%. The sales of Proto climbed 74.1% year-on-year to Y23.8 billion ($178 million) in April-June.

GooNet’s monthly ARPA (average revenue per account) rose 4.1% to Y57,000. While the number of dealers inched up during the period under review, the marketplace has about 60% of all used car dealers in the country, according to the earnings announcement.

The company expects continuous growth in existing businesses and new consolidated business during the current fiscal year, with annual sales estimated to surge by 49.1%. Digital auto retail and services will continue to attract upfront investments.

 

Source: Proto Corp.

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