MEDIROM Healthcare Technologies Inc. provided earnings guidance for the year ended December 31, 2022. For the year, preliminary total revenue for the year ended December 31, 2022 is expected to be approximately JPY 6.5 billion ($49.3 million), representing a projected increase of JPY 1.1 billion ($8.3 million) from the total revenue reported in accordance with U.S. GAAP for the year ended December 31, 2021. Such increase was primarily due to the full-year revenue contribution of two subsidiaries, SAWAN and ZACC, which were acquired by during 2021, an increase in the revenue from sales of directly-owned salons to investors, which sales were commenced in the fourth quarter of 2021, and an increase in sales at directly-operated salons as a result of the recovery from COVID-19 in 2022.

The preliminary operating income is expected to be approximately JPY 240 million ($1.8 million) for the year ended December 31, 2022, representing a projected increase of JPY 711 million ($5.4 million) from the operating loss reported in accordance with U.S. GAAP for the year ended December 31, 2021. Such increase was primarily due to the increase in total revenue outpacing the increase in operating expenses in 2022.