Based on the presentation material of the Q1, I will first highlight the financials and also numbers. Regarding the progress of the midterm plan, I will pass the floor to Mr. Ogawa for the details. Let me start my presentation. The Q1, fiscal year ending October 2025, this is a highlight: full net sales, JPY 8.6 billion, year-on-year up 36.2%. Operating profit, JPY 1.4 billion.
Operating margin is 16.4%. Average take rate and fee rate, you see, 28.8% and 84.6% respectively. We are maintaining very high level at the bottom: transaction volume and active client account, and also the transaction volume per active account. Transaction volume about JPY 30 billion and more than 200,000 active client accounts, and transaction volume for active client account is more than JPY 140,000. These are more details.
First, on P&L, full net sales, JPY 8.64 billion, up 36.2% year-on-year, and operating profit is JPY 1.4 billion and 148.7% up year-on-year, and operating margin 16.4%. Net sales, the year-end, the new year falls into Q1. With a serious labor shortage, logistics and food and retail in all industries, we increased the net sales and also increased year-on-year basis. Continued from last year for the food category, at the customers, they are facing cost pressures. In the same manner, the growth rate was small.
Last year, in December, at the full year results briefing, as we said, the measures against unauthorized usage. We have started taking full measures, and with that, there was a decline in usage of small-sized clients. However, with the retail and logistics industry, we had a healthy usage. Therefore, we continued good growth in net sales.
On the cost side, in 2024, the previous fiscal year in Q1, we conducted the client marketing on a trial basis, and also on BPO, we conducted on a trial basis. For days, throughout the year, there are some bearing fruits, and we are continuing them, and those which are not bearing fruits, we've suspended. We are continuing disciplined investment, and net sales increased, and disciplined investment was maintained.
On top of that, operational productivity improved, and also cost related to the measures against unauthorized usage. We've conducted disciplined spending, and on year-on-year, we achieved a significant increase of profit. KPI transaction volume, as I said, about JPY 30 billion, significant increase year-on-year, and for take rate, as you see, we are maintaining high rate on the logistics industry. We offered limited-time volume discounts.
There are some declines, but for the food and retail and other industries, we are maintaining virtually 30% level. Number of AAs and fee rate, and the transaction volume per AA, I will touch on this later. That is all for the Q1, and the outlook for Q2. For net sales, JPY 7.9 billion-JPY 8.1 billion, about 29.4%-32.7% up year-on-year.
Operating profit, the range of JPY 1.66 billion-JPY 1.7 billion, and growth rate 44.2%-47.7% year-on-year, and operating margin 21%. I will come back to this point later. At the four-year results of a previous fiscal year, we released the forecast of the Q1. This is a comparison of a forecast versus the results. For net sales, we have disclosed range. The upper limit, we exceeded the upper limit of a Q1 forecast by JPY 70 million.
We landed at JPY 88.6 billion due to competitive environment and measures against unauthorized use. These two are the factors of the range disclosure, but it was within the range, so we landed above the upper limit. For operating profit, Q1 range upper limit, we exceeded by JPY 574 million, and I landed at JPY 1.413 billion. I have more analysis to share in the following pages.
This is the operating profit analysis versus plan, how we performed on Q1. The baseline, JPY 839 million, this is the upper limit of the Q1 forecast, and actually we landed at JPY 1.413 billion. The blue boxes, or we spent less, and the yellow was we spent more. That's how it is broken down. As you see, for main portion, HR costs and marketing costs, those were the big factors.
The worker marketing, last year in the Q4, previous fiscal year, we aggressively conducted worker marketing, and with that, for Q1, we maintained the fee rate and generated good net sales. The cost, we spent less than the plan, and the client marketing significantly saved. Measures against unauthorized use for small-sized clients' conversion would deteriorate.
That was our assumption, and that's why we conducted disciplined investment. For HR cost, improved productivity. That's the reason of the savings. Q2 forecast factors for Q2 versus Q1 results, we are forecasting a decrease. It is due to the reasons of the seasonality, as you see on the bottom. In February, it is included in the Q2, we will recover in March and April, but we will have a slow season, off-season in February. This is a seasonal, normal seasonal factor.
For this fiscal year, in the Q2, we are having the same seasonality, and the top line will be less, so the cost will be less as well. Therefore, the operating margin will be significantly high. For the same manner, for this fiscal year, we are generating good level of operating margin, 21%. This is the highlight. I will go into more details, just touching on highlights. Q1 net sales, I have already touched on.
Progress is 24.2% operating profit. As you see, the progress, 21.1%. Here, on the progress for net sales, we are having very good progress. In Q2, Q3, and Q4, we will continue this good momentum and full profit. Versus Q1, versus first half, we have a higher profitability in the second half. That is the seasonality. This current progress of operating profit shows a good progress.
This is year-on-year comparison of the quarter. There are many overlaps, so I will not read out. The net profit for Q1, JPY 1.3 billion, and previous year, the Q1 in the previous year, it was JPY 300 million. It is a quadruple fold. This is due to the deferred tax asset. For the previous fiscal year, Q1, it was a loss. The tax was deferred, losses carried forward, but for this fiscal year, we are generating profit. We are recognizing deferred tax asset. Because of that, net profit, it is increasing significantly.
Transaction volume and other KPIs. As I said, the logistics and retail showed a good momentum. You see year-on-year numbers on the right-hand side. Other sectors, food category, 5.6% was a growth rate. This is a continuing trend. The cost pressures customers are facing and the usage was not growing.
The average take rate, this is a detail. As I said, 28.8% was a number. By industry, when you see a breakdown, you see those numbers on the right-hand side. About 30% is maintained, excluding logistics, 27.9%. The reason being that the limited time for year-end, we provided volume discount and transaction volume increased, and the volume discount range was also bigger.
Therefore, the rate was about 28%. This is a limited time, so this will not continue. As you see, month-on-month trend, it is coming back in January and further improving in February. This is temporary. Net sales, the take rate is high. The trend is same as the transaction volume and the active accounts. You also see these numbers. The logistics and retail are continuing to be strong.
Measures against unauthorized use due to the impact, the increase of a small-sized account is slowing, so the number of AAs also showing mild growth. Related to that point, the transaction volume per active account, JPY 144,000, it is increasing Quarter-on-Quarter . The rate of decline significantly improved year-on-year. The reason being the small-sized client ratio percentage is getting smaller and unit price is improving.
For the details on this page, if you see at the bottom chart, you see the percentage of small-sized clients is getting smaller. On top of that, the logistics industry shows strong growth. For last year, due to warm winter, the logistics volume was smaller, and that's not seen this year. Therefore, transaction volume trended healthy in a healthy manner. Now moving on to the ratio of core workers. It will be the trend, which remains pretty much unchanged.
It is 54%, which will be the core worker ratio. Therefore, in the Q4 of October of fiscal year 2024, the workers that we acquired back then are now becoming core workers. Therefore, it is progressing quite favorably. Now moving on to the high fill rate. One Q1 will be a very busy time. It is less of a busy time. Therefore, it tends to be lower. However, we are able to maintain a quite significant level.
Now looking at year over year in terms of our cost. Now looking at the breakdown, as you can see, it will be three factors. As mentioned in the outset, for HR, it is a 2.7% decline. Then as for worker client marketing, client marketing has declined significantly, whereas worker marketing at the end of the year and beginning of the year, it was a busy time.
Therefore, we made significant investments where client marketing declined significantly. Overall, it is a decline. Lastly, when it comes to outsourcing, as we mentioned in the outset, BPO cost versus the previous year has reduced because we had made a review. Therefore, the ratio as a proportion has declined. Therefore, the operating profitability for the Q1 has improved significantly. That would be it for numbers. Now I would like to hand over to Ogawa, our CEO.
Thank you very much for your engagement. As Yagi explained, numbers-wise, we are solidly delivering in terms of our sales, as well as a significant jump in our profitability. Therefore, we have been able to disclose favorable numbers. Now I would like to share with you what we intend to do from this fiscal year strategy-wise and on, and what we intend to do going forward.
As you can observe, most recently, this is what we are doing in terms of strategy as well as tactics. It will be vertical, horizontal, as well as it will be a linear upwards look. These are all the different strategies that we are employing. You can see from a number, a transaction volume, we are making sure that including human resource, we are investing.
We are maximizing our fill rate. As you can see from an upwards trend, it's a work opportunity that we are trying to maximize. It will be a non-linear growth that we will be seeing, which will be M&A and other activities that we are currently considering in the medium to longer term.
Therefore, within this context, we are hoping that we are going to have a solid medium-term management plan that Timee will be working on. Within that context, starting with the active account numbers. Even for AS, we are making sure that it is ramping up very solidly. Even though there is intense competition, we are making sure we're expanding our existing client base.
Furthermore, we did show this about the hotel industry in the previous deck as well, but we are seeing a very high increase in this space. This will be for cooking assistance as well as dishwashing, as well as bed making. We are seeing a very granular breakdown. Making sure that all of this on-demand staffing can be worked together with a worker actually conducting sales.
Therefore, there are many different areas where it may be difficult to work, but we actually have a team where it will be more of a hotel dedicated team, and they have a specialty when they actually visit the site, and they will be creating manuals as well that everybody can work in a sense of comfort. It is not just limited to hotels, but in the elderly care area as well, especially when we support people when they bathe and then also when they dine.
We have Timee workers that are being used. Not limited to that, it would be the government that has actually been extending support, whereas MHLW will be offering support for matching app as usage for on-demand staffing. We do have a budget available, which has been supportive as well.
Japan is seeing a declining population with an aging society. We have the 2025 problem where Timee is going to be helping solve social issues. We are very hoping that we are increasing our position to really support that. We do believe that this is an area that will be of interest and also attention going forward as well. In terms of the AS increase, the small account, as Yagi explained, it is decreasing.
It is actually maintaining at the same levels. We are looking at a per location area where the volume is increasing. We do have more of an area-focused strategy, and we are trying to create a model case. As you can observe in Yokohama City, in Naka-ku, you can see the pin. This is where clients are utilizing Timee. You can see that it is very concentrated.
We're seeing a large number of users increase. It is going to be a strategic commercial area that we will be focusing on in order to engage. We will be distributing brochures and others so that it will be the whole city that could actually be using Timee. It is a very limited geographical area, but we are seeing very solid growth. We are trying to work with the government as well. This is faring quite well.
There are about 23 local governments, as well as more than six local governments that are added from the previous time. We are working together with the local governments as well as the government to make sure that we will be helping solve issues in the geographical areas.
Moving on to transaction volume for AA, we are seeing a very high level that is being maintained in the logistics area. There are workers that attend 2030 that will be visiting, and we do not know who is going to be teaching them. We want to try to reduce the burden of worker onboarding. Timee will have a dispatching license, and we will be dispatching leaders that could actually educate.
We also have workers in charge of onboarding as well so that we have successfully increased the transaction volume per AA. We are developing manuals and pouring a lot of energy into this effort as well. As you can see, it will be easy to understand handbooks, as well as hygiene management and other safety-related management as well.
That has been very successful in trying to help the management of each of the companies. It will be IT services, which is also a DX available for work improvement as well. Furthermore, we have shown this about the hourly pay and fill rates have increased significantly thanks to the badge holder only function. People who only have badge holders will have the job posting available. Companies that do that, this is more than 50%. You can see the hourly rate compared to others that do not use this are able to pay a higher hourly rate to the workers. Therefore, as a fill rate, it is on the rise as well.
Therefore, workers, when they have a higher hourly rate and the clients can enjoy a better worker, this is a very good, I think, cycle that we are able to see. This is something that only Timee can offer because we have net assets. Moving on to product development, there are different functionalities that we have been releasing today, but specifically, as I mentioned, especially when it comes to the elderly care area, we are matching more of the license holders.
Therefore, before working, we need to make sure that they actually do have public licensing. We will be checking. By that functionality being available, each of the elderly care operators does not need to check. Therefore, a functionality that would be deeply rooted in the industry has been established.
Therefore, it is the only Timee available functionality that we are offering. Then we can try to alleviate all of this, I think, a labor shortage in Japan, which will be on the rise. Thank you for your attention. That was the Q1 numbers, as well as some of the strategies that we are currently engaging in. There are many different seeds that we are sowing at the moment in a very solid manner.
A very high growth rate can be maintained going forward. It is not going to be just an extension of what we're doing now, but it will be many different challenges that we will be repeating so that we will be able to maintain a high growth rate. Therefore, we do look forward to continued support. Thank you.
[crosstalk] Now we will move on to the Q&A session. Welcome to Q&A session. Please enter your Zoom display name in the order of company name and your own name. If you have questions, please press the raise hand button at the bottom of the screen. The moderator will then call upon your name. Please unmute yourself and state your question. If you have a question, please raise your hand. Mr. Noguchi, please.
[crosstalk] This is Noguchi speaking from BofA Securities . Can you hear me? Yes, thank you. I have two questions. First, your review of the Q1 and number of active accounts. Growth is somewhat milder due to measures against unauthorized use. The client marketing was controlled ahead of time. How do you break down its impact? The measures against unauthorized use, is it really the reason of the slow growth of AAs? If you spent more on the client marketing, do you think that you were able to increase the number of AAs?
Yes. First, I would like Mr. Yagi to answer.
Yes, this is Yagi speaking. In conclusion, the client marketing, if we conduct aggressively, can we grow the number of AAs? It's not really in a proportionate manner. Why? Because the client marketing, unique price. As we are scaling, the acquisition cost CAC will have more pressure. For the Q1, as we have been saying, for the measures against unauthorized use, we still cannot quantify its impact.
Therefore, that's why we decided to control the marketing cost. If we significantly increased the marketing cost in Q1, I don't think that will be the case. Okay. A follow-up question. In a four-year results briefing, you said it's difficult to quantify the impact.
After the Q1, you can give us some qualitative explanation. How do you view this? Mid to long term, do you think the impact will continue for some time, or is it going to be more short-term impact so that by the end of this fiscal year, will it go back to more of the normal environment? Yes. My answer is that we continue to see a serious situation. I don't think so.
That reason is if we were the only one facing such challenge or on our funnel, do we have multiple frictions? No. Spot Work Association and also for all categories, including illegal part-time jobs, we are taking measures against unauthorized use. It is going to be more of the normal practice. We don't think this impact will linger.
The impact of the measures against unauthorized use, on the right-hand side, you see explanation. There are certain impacts we see. It is difficult to splice out, clearly break down for each factor. As we review numbers, we do see an impact. On the cost side, we are not disclosing concrete numbers, but the actual confirmation of the actual situation, we need to allocate resources. We are controlling the cost to make sure that they stay within the range to come down to the Q1 results.
Thank you. My second question is the measures against unauthorized use. Approaching only the type of accounts who can take these kinds of measures will be more effective. Number of AAs, rather than increasing the number of AAs, but more of the focusing on the transaction volume per AA, are you going to focus more on the transaction volume per AA? Earlier, minus 4.5%. It is a significant improvement. Earlier, it is not only usage being promoted, but the dilution impact was actually smaller, I believe. What will be your focus KPIs? Will it change with those measures against unauthorized use?
Yes, thank you for your question. As Mr. Yagi said, the impact of the unauthorized use, it was difficult to quantify. We have been cautious in conducting the client marketing. It is currently trending within our assumed range. We are requesting the accounts to submit papers so that deteriorates funnel. Also, CAC is deteriorating. That can occur on an earlier basis.
For small-sized clients, that is really the area we are talking about. We are going to put more effort on the strategic zones. We are visiting real physical stores if they really exist or not in order to promote the healthy job posting. We are not going to abandon the number of AAs. Not only the client marketing, I think we need to develop a different type of levers to increase the number of AAs in order for us to achieve the non-linear growth. Not only a transaction volume per active client account. That's how we're going to go deeper on AA development.
Mercari will start charging their service. For next fiscal year, what will be your outlook for the industry, your category?
Thank you. Starting next month, the competitor has announced they will start charging as Timee. We continue to maintain high growth rate, and the time is huge. There are an increasing number of players, and with a healthy cost, we should have a good competition, which we welcome.
For Timee, Mercari and others will come to our space. Are we losing sales or number of active accounts? We are not really seeing much impact from competition. Even with Mercari start charging their service, I do not think we will sustain material impact. The cost sensitivity should be rooted within our category for a more healthy environment.
Thank you. That's all from me.
Arai-san, please.
Hello, can you hear me? Just checking.
Yes, we can hear you. お願いします。
There are two questions . The first, The story of the fraudulent use mentioned earlier, Is that this is surrounding unauthorized usage. The profit margin of the first three families In the Q1, we do believe that profitability was quite strong. The downside of fraudulent use is the negative impact from unauthorized use was there.
However, the client marketing spend was less, so that was a positive. Then, I n your briefing, you were mentioning that you were trying to narrow down the commercial demographical area, and that could lead to better efficiency. As a result, when we look at the Q1 margin improvement, of course, margin does have seasonality, so it's not going to be the same. The Q1 margin improvement appears to be quite sustainable. That's something that I was picking up. I was wondering what your thoughts were. Thank you.
Thank you for the question. Let me speak first and then hand over to Yagi. We at Timee would like to be very mindful of growth. Therefore, we do understand that we are able to generate sustainable profitability.However, the market may be expecting a very high profitability , the market may be expecting a very high profitability that could be maintained, and that could be a mismatch. We are still in a phase where we do need to make solid investments. We want to constantly make sure that we can generate profit and continue to challenge. A word from Yagi, please.
Rather than not having profitability and we're finally starting to generate profitability, that's not so. We were a profit-generating structure. However we have been making quite a bit of trial investments to date. That is why we were not generating profits, even though the structure was there. We have been trying to be more disciplined, and we are seeing more cost reductions.
Specifically, this unauthorized use was an impact that we were not able to actually measure. That is the reason why we are seeing what we're seeing now. Now we have a better visibility. As Ogawa said, we are going to be developing more ammo and channels. It is going to be a non-linear growth that we do need to embark on.
Therefore, structurally, we do have a profit-generating model. However, for the future growth, we need to make sure that we invest. On the other hand, in terms of emergency and others, and with a very big difference in the external environment as well as macroeconomic environment, we can switch to generating profit. That is what we would like to establish. We already do believe that our structure is already there to do so.
Thank you,Including the nuance, I was able to really capture what you shared. Thank you. Now moving on to the second question. When it comes to food and beverages area, the sales growth appears to be a little more stagnant. I think suppression that is happening in the industry, so it's more of a macroeconomic reasoning.
Going forward, do you think food and beverages will continue to be less growth as an industry? Do you think that it would be some growth potential that you can see? Even though food and beverages are a bit weaker now, if you have an image about the medium to longer term, what are your thoughts on how the food and beverages industry will grow?
Thank you for that. I think by industry, in a world where Timee did not exist, how did they try to gather people that could work? Allow me to touch upon that. By industry, it was very different. When it comes to the logistics area, they were using dispatch agencies. Take rate was 40%, and therefore Timee was less expensive. 30% was basically non-resistant. When it comes to food and beverages, as well as the retail area, they were using basically job boards and others.
Therefore, 30% is going to be a constant number. They can only use when they're really in trouble. That was the commentary and voice that we were hearing. Therefore, for that specific area, we may need to change our plan as Timee. This is something that we are currently considering. When it comes to dispatching people, or logistics area, it could be similar to dispatching agencies. It will be very important that we are able to secure workers for them.
However, for food and beverages, whether it's important that they are able to recruit people as well. Therefore, there are people that are being taken out and stolen for free. I think this is something that we are trying to offer. Rather than a normal monetizing opportunity, we do need to think of other measures. That's what we're thinking as management. Is it going to be a low growth rate that we will be seeing in this industry only? No, what we want to do is to try to approach this so that a high growth rate can once again be attained. This is the type of initiative that we are currently discussing internally.
Very well taken Thank you very much.
Mr. Sekine, please.
This is Sekine from Daiwa Securities. Can you hear me? Thank you very much for your presentation. I have two questions. I would like to ask respectively. First is the overall business environment. I would like to have your view on the current business environment. Considering the take rate the transaction revenue per active account, I think that is about the same as earlier and also the food and retail. I think on a Q1Q basis, the revenue per active account is about the same.
The business environment on a Q1Q basis, I do not think there is worsening or improving. Is my understanding correct? As CEO said, hotel and nursing care currently categorized in others, you said you want to establish model case s to grow other categories. In going forward, next growth pillar, I think it is going to be a key in going forward. Is my take correct? And/or the improvement in the HR sector overall will be the key for the future. Thank you.
Yagi-san will answer the first point.
For each industry, regarding the situation of each industry, as you said, Q1, no meaningful change. You mentioned quarter on quarter for food, and year-on-year or versus two years ago. Yes. Now the customers are facing stronger cost pressure. Looking at the quarter on quarter or from the second half of the previous fiscal year, no big change in the business environment and the logistics and the retail. No meaningful change in the environment. Continued serious labor shortage helping the Timee service to be used more.
The second point, growing number of AAs. In order to achieve that, tapping into more industries will be critical. Hotel and nursing care and building maintenance and those categories are the ones for the next growth. These will contribute to the increase of a number of AAs. The horizontal axis and also having more concentration in a specific zone, so increasing. That is how we are working on the increase of number of AAs.
What Mr. Ogawa has just said, the transaction volume per active account, the logistics is dominant and others are more fragmented. That is why the numbers are very different. The hotels and the nursing care, which can be on par with the logistics in terms of the transaction volume per active account, what is more promising?
Yes, logistics is a particular industry. More than 100 openings per day in one location. It is unparalleled versus other industries. Also food factories. That is a type of industry or category similar to logistics. I think that is a promising area.
Okay, thank you. The other question is the ideal investment. Mr. Yagi mentioned improvement in productivity was achieved. Sales and marketing heads and also engineers for those hiring, you are controlling. You are not very aggressive now. If that's a healthy rate of hiring, that's fine. In going forward, when you accelerate net sales growth, where are you going to invest? Customer success?
I think, is it the area for more headcount or for more competitiveness? Is it engineering that you want to invest more? What is your investment policy in going forward? Also, what are going to be the conditions for you to be ready to invest more?
Thank you. Yes. Product investment is very important as we see more competitors from commoditized service. We need to launch Timee original or unique services. These are very detailed areas, but something dedicated to nursing care. We conduct a license holder hiring or license check. This is something that these are the product development we are doing ahead of others.
That is why we continue to be selected. The product development continues to be the focus and the tech touch. Using technology without the manual resources from account creation to start the job posting and something like AI, we provide a recommendation and also provide suggestions.
That is what we aim to achieve. Labor saving with the smaller size account increase, that is going to be very critical. We still need to develop more technologies like that. For that purpose, we will put more resources and sales and marketing resources, enterprise and strategic account. That is going to be the ideal way of allocating human resources. For the technology and sales and marketing, we will take optimum balance.
Okay, I understand. Thank you.
David Gibson.
Hi, yes, David Gibson from MST Financial. Could you give us an update on what drove the decision to do the one-time logistics promotion, which impacted your take rate? What gives you confidence that it is only one time and it will not be required in the future? Thank you.
Thank you very much for that. Would you like to have Yagi explain?
Yes. Conclusion is that this is not something that will be repeated. That is what we are assuming as a company. Why did we do this? As you can see on the left-hand side, the red line is describing. It could be the right as well. In the Q1, take rate did decline. This happened in the past as well. The reason for this is that for the Q1, there is the end of year, beginning of the year, most busy season.
Specifically, when it comes to the logistics companies, they usually have a very serious labor shortage. Therefore, we need to develop and build relationships in order to overcome this very difficult end of year to beginning of the year period. We would be introducing campaigns and promotions.
That is what we have been doing in the past as well. This is something that we did engage in this time around as well in order to build a further strong relationship. Therefore, it is not going to be something you will be seeing every quarter. This is something that will be appearing as a spot in the busy period. That could happen in the future, but this is going to basically just be limited to a season. Therefore, it's not something that will continue.
Okay, thank you. Who do you view as your biggest competitor that's upcoming? Is it Halo, Spot Baitoru , or others? Who do you view as the one that's really, yeah, as a competitor to you and could potentially impact your business?
Thank you for that. I think PERSOL's Sharefull, which has been done by PERSOL, has been offering services for a very long time. Therefore, function-wise, compared to others, they do have a very solid service offering. On the other hand, Timee enjoys an overwhelming share. Therefore, it's not just one company that will be a competitor because it's not that different across the different competitors.
Okay, thanks very much.
Mr. Oiwa, please.
This is Oiwa from Jefferies Securities. Congratulations on your strong results by sector fill rate. How can I interpret? This is an additional question. The food growth is slowing down, and when it comes back, will the fill rate deteriorate? That is my question.
Yes, thank you for your question. First, by sector, we are tracking. Rather than sector, the regionality or by area is also important. If it's close to a residential area, there's an area of schools. Those being the factors for the number of workers and the number of job openings. Not only by sector perspective, we will not answer everything. If the food increases, will the fill rate deteriorate? We do still have a capacity to increase. If the opening increases, we can increase the number of workers. Fill rate will continue to stay high. That continues to be a focus and also an investment on that. We'll continue.
Yes, as Mr. Ogawa said, looking at sectors, the type of the job you need to have the license. [crosstalk] the fill rate tend to be low among others. On the other hand, will it not be filled? Speaking of nursing care, the license holders, and for those sectors, how can we increase the fill rate? That means that we get a good number of workers and also product improvement.
[crosstalk] looking at the sectors, there are not such a big difference, but a higher degree of difficulties. We are taking multiple measures to boost the fill rate. On the presentation material, the type of job, slicing out that type of job, it doesn't require a license and if we add the license holder for a certain type of job, we can boost the overall fill rate. That is what we are working on.
Okay, understand. My second question, the variance of Q1 result versus forecast. In my understanding, client marketing, you were planning to spend JPY 300 million, and it was not included. So you made an upside. Sorry, it is JPY 260 million. My question is, in what situation did you not use? If you increase too many accounts, the fill rate may deteriorate. Is that why you decided not to spend?
Thank you. The client marketing, Google, YouTube, and the listing ads we use, and also TV commercial is something that you can imagine. It is the listing ads had a bigger weight. CPA and LTV and we are tracking CAC. We are putting the gas to the maximum to get the lead. With the unauthorized use, it deteriorated our funnel. The LTV CAC, the formula will deteriorate.
Therefore, on the normal output, the placement, those marketing placement we couldn't do as planned. If we continue the same level of marketing cost, it will deteriorate further because the funnel is deteriorating, and we are putting a lot of volume. The CAC will deteriorate further. The cost ROI, return on the investment, will not make sense.
That is why we decided to concentrate on strategic areas and also tapping into new industries. That is what we started on investment. Will it be the same in Q2? Where we allocated, where we spread the seed, we want to continue to invest. We will continue to take on the challenge to continue to grow the top line.
Okay, thank you, understand.
Are there any other questions? If not, even though it's a bit sooner than the scheduled time, we would like to conclude our earnings call. Are we okay to close? Since there appears to be no questions available, therefore we would like to conclude our 2025 October Q1 Financial Results Earnings Call. Thank you.