Money Forward (3994.T): Announces earlier-than-expected price hikes for sole proprietor/corporate plans

Money Forward announced revisions to its pricing structure (effectively price hikes) for sole proprietor and corporate plans on its website on September 24. The background includes expanded investment aimed at strengthening the development system, enhancing product features, and improving support quality. We view this as a surprise, as we do not believe price hikes at this timing were the main scenario for investors (especially for corporate plans). The rate of increase for corporate plans was substantially narrower than the previous round of price hikes, but considering factors such as the increasing number of corporate users, the boost to ARR could potentially be at a level close to the previous price rises (+c.¥2.4 bn boost, corporate plans only). Although the price gap with competitor freee will narrow (Money Forward remains slightly cheaper) and competition may intensify, we think the move will provide a tailwind for earnings. Price revisions are scheduled to begin on December 1,