Carta Holdings, Inc. revised earnings guidance for 2023. The company have revised sales from JPY 26.6 billion to JPY 24.2 billion, which is down 9%. Furthermore, company have revised operating income from JPY 2.3 billion to JPY 500 million and current net income from JPY 100 million to minus JPY 1.6 billion.

The main reason for the decline here was a weaker than expected return of placements, mainly from brand advertisers, due to the macro environment. This resulted in a greater than expected decline in reservation-based advertising. Although efforts to reduce SG&A expenses are already underway, they have not been sufficient to offset the decline in gross profit, and the Company has decided to revise its forecasts for each stage of income, including operating income.