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Lam Research Corporation Reports Financial Results for the Quarter Ended December 29, 2024

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FREMONT, Calif., Jan. 29, 2025 /PRNewswire/ — Lam Research Corporation (the “Company,” “Lam,” “Lam Research”) today announced financial results for the quarter ended December 29, 2024 (the “December 2024 quarter”).

Highlights for the December 2024 quarter were as follows:

Revenue of $4.38 billion.U.S. GAAP gross margin of 47.4%, U.S. GAAP operating income as a percentage of revenue of 30.5%, and U.S. GAAP diluted EPS of $0.92.Non-GAAP gross margin of 47.5%, non-GAAP operating income as a percentage of revenue of 30.7%, and non-GAAP diluted EPS of $0.91.

Key Financial Data for the Quarters Ended 
December 29, 2024 and September 29, 2024
(in thousands, except per-share data, percentages, and basis points) 

U.S. GAAP

December 2024

September 2024

Change Q/Q

Revenue

$                4,376,047

$                4,167,976

+ 5 %

Gross margin as percentage of revenue

47.4 %

48.0 %

– 60 bps

Operating income as percentage of revenue

30.5 %

30.3 %

+ 20 bps

Diluted EPS

$                          0.92

$                          0.86

+ 7 %

Non-GAAP

December 2024

September 2024

Change Q/Q

Revenue

$                4,376,047

$                4,167,976

+ 5 %

Gross margin as percentage of revenue

47.5 %

48.2 %

– 70 bps

Operating income as percentage of revenue

30.7 %

30.9 %

– 20 bps

Diluted EPS

$                          0.91

$                          0.86

+ 6 %

U.S. GAAP Financial Results

For the December 2024 quarter, revenue was $4,376 million, gross margin was $2,073 million, or 47.4% of revenue, operating expenses were $739 million, operating income was 30.5% of revenue, and net income was $1,191 million, or $0.92 per diluted share on a U.S. GAAP basis. This compares to revenue of $4,168 million, gross margin of $2,003 million, or 48.0% of revenue, operating expenses of $738 million, operating income of 30.3% of revenue, and net income of $1,116 million, or $0.86 per diluted share, for the quarter ended September 29, 2024 (the “September 2024 quarter”).

Non-GAAP Financial Results

For the December 2024 quarter, non-GAAP gross margin was $2,077 million, or 47.5% of revenue, non-GAAP operating expenses were $735 million, non-GAAP operating income was 30.7% of revenue, and non-GAAP net income was $1,175 million, or $0.91 per diluted share. This compares to non-GAAP gross margin of $2,009 million, or 48.2% of revenue, non-GAAP operating expenses of $722 million, non-GAAP operating income of 30.9% of revenue, and non-GAAP net income of $1,122 million, or $0.86 per diluted share, for the September 2024 quarter.

“Lam is executing at a high level at a pivotal moment for semiconductor manufacturing. Increasing demands on chip performance play into Lam’s strengths, with advanced deposition and etch applications set to comprise a growing share of WFE,” said Tim Archer, Lam Research’s President and Chief Executive Officer. “Our investments to win at key technology inflections are paying off, with more exciting opportunities ahead.”

Balance Sheet and Cash Flow Results

Cash, cash equivalents, and restricted cash balances decreased to $5.7 billion at the end of the December 2024 quarter compared to $6.1 billion at the end of the September 2024 quarter. The decrease was primarily the result of cash deployed for capital return activities and capital expenditures during the quarter, partially offset by cash generated from operating activities.

Deferred revenue at the end of the December 2024 quarter decreased to $2,032 million compared to $2,047 million as of the end of the September 2024 quarter. Lam’s deferred revenue balance does not include shipments to customers in Japan, to whom control does not transfer until customer acceptance. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $453 million as of December 29, 2024 and $184 million as of September 29, 2024.

Revenue

The geographic distribution of revenue during the December 2024 quarter is shown in the following table:

Region

Revenue

China

31 %

Korea

25 %

Taiwan

17 %

United States

9 %

Japan

8 %

Southeast Asia

7 %

Europe

3 %

The following table presents revenue disaggregated between system and customer support-related revenue:

Three Months Ended

December 29,
2024

September 29,
2024

December 24,
2023

(In thousands)

Systems revenue

$              2,625,649

$              2,392,730

$              2,299,286

Customer support-related revenue and other

1,750,398

1,775,246

1,458,973

$              4,376,047

$              4,167,976

$              3,758,259

Systems revenue includes sales of new leading-edge equipment in deposition, etch and clean markets.

Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from our Reliant® product line.

Outlook

For the quarter ended March 30, 2025, Lam is providing the following guidance: 

U.S. GAAP

Reconciling
Items

Non-GAAP

Revenue

$4.65 Billion

+/-

$300 Million

$4.65 Billion

+/-

$300 Million

Gross margin as a percentage of revenue

47.9 %

+/-

1 %

$   2.8

Million

48.0 %

+/-

1 %

Operating income as a percentage of revenue

31.9 %

+/-

1 %

$   3.4

Million

32.0 %

+/-

1 %

Net income per diluted share

$1.00

+/-

$0.10

$   3.9

Million

$1.00

+/-

$0.10

Diluted share count

1.29 Billion

1.29 Billion

The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other significant arrangements that may be completed or realized after the date of this release, except as described below. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material. Reconciling items included above are as follows:

Gross margin as a percentage of revenue – amortization related to intangible assets acquired through business combinations, $2.8 million.

Operating income as a percentage of revenue – amortization related to intangible assets acquired through business combinations, $3.4 million.

Net income per diluted share – amortization related to intangible assets acquired though business combinations, $3.4 million; amortization of debt discounts, $0.8 million; and associated tax benefit for non-GAAP items ($0.3 million); totaling $3.9 million.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP results, this press release also contains non-GAAP financial results. The Company’s non-GAAP results for both the December 2024 and September 2024 quarters exclude amortization related to intangible assets acquired through business combinations, the effects of elective deferred compensation-related assets and liabilities, amortization of note discounts, and the net income tax effect of non-GAAP items. Additionally, the non-GAAP results for the December 2024 quarter exclude the income tax benefit from a change in tax law.

Management uses non-GAAP gross margin, operating expense, operating income, operating income as a percentage of revenue, net income, and net income per diluted share to evaluate the Company’s operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors’ ability to view the Company’s results from management’s perspective. Tables presenting reconciliations of non-GAAP results to U.S. GAAP results are included at the end of this press release and on the Company’s website at https://investor.lamresearch.com.

Caution Regarding Forward-Looking Statements

Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to: our outlook and guidance for future financial results, including revenue, gross margin, operating income and net income; our operational execution; the prospects for semiconductor manufacturing and for demand for wafer fabrication equipment (“WFE”); chip performance demands; the competitive positioning of Lam’s products; growth in the significance of advanced deposition and etch applications as a proportion of wafer fabrication equipment spending; the success of our investments at key technology inflections; and the opportunities ahead of us. Some factors that may affect these forward-looking statements include: the actions of our customers and competitors may be inconsistent with our expectations; business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; trade regulations, export controls, trade disputes, and other geopolitical tensions may inhibit our ability to sell our products; supply chain cost increases and other inflationary pressures have impacted and may continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; and natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the Risk Factors described in our annual report on Form 10-K for the fiscal year ended June 30, 2024, and our quarterly report on Form 10-Q for the fiscal quarter ended September 29, 2024. These uncertainties and changes could materially affect the forward-looking statements and cause actual results to vary from expectations in a material way. The Company undertakes no obligation to update the information or statements made in this release.

Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam’s equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe. Learn more at www.lamresearch.com. (LRCX)

Consolidated Financial Tables Follow.

 

LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data and percentages)
(unaudited) 

Three Months Ended

Six Months Ended

December 29,
2024

September 29,
2024

December 24,
2023

December 29,
2024

December 24,
2023

Revenue

$   4,376,047

$   4,167,976

$   3,758,259

$   8,544,023

$  7,240,321

Cost of goods sold

2,303,066

2,165,293

1,985,847

4,468,359

3,805,267

Restructuring charges, net – cost of goods sold

14,957

22,897

Total cost of goods sold

2,303,066

2,165,293

2,000,804

4,468,359

3,828,164

Gross margin

2,072,981

2,002,683

1,757,455

4,075,664

3,412,157

Gross margin as a percent of revenue

47.4 %

48.0 %

46.8 %

47.7 %

47.1 %

Research and development

494,947

495,358

469,712

990,305

892,341

Selling, general and administrative

244,150

243,128

228,843

487,278

435,866

Restructuring charges, net – operating expenses

1,688

3,709

Total operating expenses

739,097

738,486

700,243

1,477,583

1,331,916

Operating income

1,333,884

1,264,197

1,057,212

2,598,081

2,080,241

Operating income as a percent of revenue

30.5 %

30.3 %

28.1 %

30.4 %

28.7 %

Other income (expense), net

14,262

30,081

29,839

44,343

32,440

Income before income taxes

1,348,146

1,294,278

1,087,051

2,642,424

2,112,681

Income tax expense

(157,128)

(177,834)

(132,785)

(334,962)

(271,017)

Net income

$   1,191,018

$   1,116,444

$      954,266

$   2,307,462

$  1,841,664

Net income per share:

Basic

$             0.93

$             0.86

$             0.72

$             1.78

$            1.39

Diluted

$             0.92

$             0.86

$             0.72

$             1.78

$            1.39

Number of shares used in per share calculations:

Basic

1,287,109

1,299,236

1,316,293

1,293,173

1,321,067

Diluted

1,291,469

1,304,066

1,322,201

1,297,767

1,326,933

Cash dividend declared per common share

$             0.23

$             0.23

$             0.20

$             0.46

$            0.40

 

LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

December 29,
2024

September 29,
2024

June 30,
2024

(unaudited)

(unaudited)

(1)

ASSETS

Cash and cash equivalents

$         5,665,379

$         6,067,471

$         5,847,856

Accounts receivable, net

3,304,946

2,937,217

2,519,250

Inventories

4,358,152

4,209,878

4,217,924

Prepaid expenses and other current assets

284,370

277,802

298,190

Total current assets

13,612,847

13,492,368

12,883,220

Property and equipment, net

2,313,590

2,214,269

2,154,518

Goodwill and intangible assets

1,761,021

1,758,344

1,765,073

Other assets

2,152,458

2,067,508

1,941,917

Total assets

$       19,839,916

$       19,532,489

$       18,744,728

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current portion of long-term debt and finance lease obligations

$            504,136

$            504,682

$            504,814

Other current liabilities

4,846,160

4,837,986

3,833,624

Total current liabilities

5,350,296

5,342,668

4,338,438

Long-term debt and finance lease obligations

4,478,148

4,479,087

4,478,520

Income taxes payable

669,747

664,717

813,304

Other long-term liabilities

533,699

574,126

575,012

Total liabilities

11,031,890

11,060,598

10,205,274

Stockholders’ equity (2)

8,808,026

8,471,891

8,539,454

Total liabilities and stockholders’ equity

$       19,839,916

$       19,532,489

$       18,744,728

(1)

Derived from audited financial statements.

(2)

Common shares issued and outstanding were 1,284,956 as of December 29, 2024, 1,291,958 as of September 29, 2024, and 1,303,769 as of June 30, 2024.

 

LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)

Three Months Ended

Six Months Ended

December 29,
2024

September 29,
2024

December 24,
2023

December 29,
2024

December 24,
2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$         1,191,018

$         1,116,444

$            954,266

$         2,307,462

$         1,841,664

Adjustments to reconcile net income to net cash provided
by operating activities:

Depreciation and amortization

96,200

94,295

90,941

190,495

181,420

Deferred income taxes

(82,854)

(108,722)

(88,747)

(191,576)

(112,985)

Equity-based compensation expense

81,959

80,011

69,901

161,970

137,112

Other, net

(8,592)

(457)

4,182

(9,049)

4,032

Changes in operating assets and liabilities

(535,789)

386,900

423,297

(148,889)

353,760

Net cash provided by operating activities

741,942

1,568,471

1,453,840

2,310,413

2,405,003

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures and intangible assets

(188,349)

(110,588)

(115,276)

(298,937)

(192,268)

Net maturities and sales of available-for-sale securities

15,841

23,116

Other, net

12,974

37

(2,523)

13,011

(7,489)

Net cash used for investing activities

(175,375)

(110,551)

(101,958)

(285,926)

(176,641)

CASH FLOWS FROM FINANCING ACTIVITIES:

Principal payments on debt, including finance lease
obligations

(1,032)

(934)

(986)

(1,966)

(254,095)

Treasury stock purchases, including excise tax payments

(697,688)

(997,035)

(645,458)

(1,694,723)

(1,488,696)

Dividends paid

(297,634)

(260,985)

(264,414)

(558,619)

(494,746)

Reissuance of treasury stock related to employee stock
purchase plan

60,557

53,081

60,557

53,081

Proceeds from issuance of common stock, net issuance
costs

(194)

(43)

1,704

(237)

4,522

Other, net

761

(324)

(3,821)

437

(5,972)

Net cash used for financing activities

(935,230)

(1,259,321)

(859,894)

(2,194,551)

(2,185,906)

Effect of exchange rate changes on cash, cash equivalents,
and restricted cash

(26,022)

22,682

6,725

(3,340)

(4,306)

Net change in cash, cash equivalents, and restricted cash

(394,685)

221,281

498,713

(173,404)

38,150

Cash, cash equivalents, and restricted cash at beginning of
period (1)

6,072,084

5,850,803

5,126,809

5,850,803

5,587,372

Cash, cash equivalents, and restricted cash at end of
period (1)

$         5,677,399

$         6,072,084

$         5,625,522

$         5,677,399

$         5,625,522

(1)

Restricted cash is reported within Other assets in the Condensed Consolidated Balance Sheets

 

Non-GAAP Financial Summary
(in thousands, except percentages and per share data) 
(unaudited)

Three Months Ended

December 29,
2024

September 29,
2024

Revenue

$        4,376,047

$        4,167,976

Gross margin

$        2,077,151

$        2,009,022

Gross margin as percentage of revenue

47.5 %

48.2 %

Operating expenses

$           734,501

$           722,148

Operating income

$        1,342,650

$        1,286,874

Operating income as a percentage of revenue

30.7 %

30.9 %

Net income

$        1,175,000

$        1,121,507

Net income per diluted share

$                 0.91

$                 0.86

Shares used in per share calculation – diluted

1,291,469

1,304,066

 

Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income
(in thousands, except per share data) 
(unaudited) 

Three Months Ended

December 29,
2024

September 29,
2024

U.S. GAAP net income

$           1,191,018

$           1,116,444

Pre-tax non-GAAP items:

Amortization related to intangible assets acquired through certain business combinations – cost of goods sold

2,817

3,076

Elective deferred compensation (“EDC”) related liability valuation increase – cost of goods sold

1,353

3,263

EDC related liability valuation increase – research and development

2,432

8,136

Amortization related to intangible assets acquired through certain business combinations – selling, general and
administrative

538

692

EDC related liability valuation increase – selling, general and administrative

1,626

7,510

Amortization of note discounts – other income (expense), net

772

765

Gain on EDC related asset – other income (expense), net

(4,502)

(17,420)

Net income tax benefit on non-GAAP items

(276)

(959)

Income tax benefit from a change in tax law

(20,778)

Non-GAAP net income

$           1,175,000

$           1,121,507

Non-GAAP net income per diluted share

$                    0.91

$                    0.86

U.S. GAAP net income per diluted share

$                    0.92

$                    0.86

U.S. GAAP and non-GAAP number of shares used for per diluted share calculation

1,291,469

1,304,066

 

Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin,
Operating Expenses and Operating Income
(in thousands, except percentages)
(unaudited) 

Three Months Ended

December 29,
2024

September 29,
2024

U.S. GAAP gross margin

$        2,072,981

$        2,002,683

Pre-tax non-GAAP items:

Amortization related to intangible assets acquired through certain business combinations

2,817

3,076

EDC related liability valuation increase

1,353

3,263

Non-GAAP gross margin

$        2,077,151

$        2,009,022

U.S. GAAP gross margin as a percentage of revenue

47.4 %

48.0 %

Non-GAAP gross margin as a percentage of revenue

47.5 %

48.2 %

U.S. GAAP operating expenses

$           739,097

$           738,486

Pre-tax non-GAAP items:

Amortization related to intangible assets acquired through certain business combinations

(538)

(692)

EDC related liability valuation increase

(4,058)

(15,646)

Non-GAAP operating expenses

$           734,501

$           722,148

U.S. GAAP operating income

$        1,333,884

$        1,264,197

Non-GAAP operating income

$        1,342,650

$        1,286,874

U.S. GAAP operating income as percent of revenue

30.5 %

30.3 %

Non-GAAP operating income as a percent of revenue

30.7 %

30.9 %

Lam Research Corporation Contacts:
Ram Ganesh, Investor Relations, phone: 510-572-1615, e-mail: investor.relations@lamresearch.com

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SOURCE Lam Research Corporation

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SK hynix Begins Mass Production of 192GB SOCAMM2 ‘Setting a New Standard for AI Server Memory Performance’

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–     Mass production of 192GB high capacity products designed for the NVIDIA Vera Rubin platform
–     Maximizes power efficiency by featuring high density DRAM based on the latest 1cnm process
–     Company to closely collaborate with NVIDIA to solve bottlenecks in AI infrastructure and provide optimal performance

SEOUL, South Korea, April 19, 2026 /PRNewswire/ — SK hynix Inc. (or “the company”, www.skhynix.com) announced today that it has begun mass production of the 192GB SOCAMM2, a next-generation memory module standard based on the 1cnm process (sixth-generation of the 10-nanometer technology) LPDDR5X low-power DRAM.

SOCAMM2[1] is a module that adapts low-power memory – which was previously used mainly in mobile products like smartphones – for server environments. It is designed to be a primary memory solution for next-generation AI servers.

[1]SOCAMM2 (Small Outline Compression Attached Memory Module 2): An AI server–optimized memory module based on LPDDR. It offers a slim form factor and high scalability, while its compression connector enhances signal integrity and allows for easy module replacement

SK hynix emphasized that the 1cnm based SOCAMM2 product that is now in mass production delivers more than double the bandwidth with over 75% improved power efficiency compared to conventional RDIMM[2], providing an optimized solution for high performance AI operations.

[2]RDIMM (Registered Dual In-Line Memory Module): DRAM module for server/workstation that includes a register or buffer chip to relay address and command signals between the memory controller and DRAM chip in a memory module

In particular, the company noted that its SOCAMM2 products are designed for NVIDIA Vera Rubin platform.

SK hynix expects the new SOCAMM2 product will fundamentally resolve the memory bottlenecks encountered during the training and inference of large language model (LLM) with hundreds of billions of parameters, thereby playing a pivotal role in dramatically accelerating the processing speed of the overall system.

The company stated that with the AI market shifting focus from inference to training, SOCAMM2 is gaining significant attention as a next-generation memory solution capable of operating LLMs with low power consumption. To meet the demands of its global Cloud Service Provider (CSP) customers, SK hynix has not only been providing a supply portfolio, but also stabilized its mass production system early on.

“By supplying the 192GB SOCAMM2, SK hynix has established a new standard for AI memory performance,” Justin Kim, President & Head of AI Infra (CMO, Chief Marketing Officer) at SK hynix said. “We will solidify our position as the most trusted AI memory solution provider, through close collaboration with our global AI customers.”

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world’s top-tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”) and flash memory chips (“NAND flash”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxembourg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.

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SOURCE SK hynix Inc.

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EBANX announces expansion into four Southeast Asian countries and Turkey, unlocking a USD 610 billion digital market

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Following the inauguration of its Asia-Pacific Headquarters in Singapore, EBANX brings its payments infrastructure to Thailand, Indonesia, Malaysia, Vietnam, and Turkey, opening access to more than 380 million consumers for global merchants

SINGAPORE, April 20, 2026 /PRNewswire/ — EBANX, a global technology company specializing in cross-border payment services for emerging markets, today announced it will begin operating in five new countries: Thailand, Indonesia, Malaysia, Vietnam, and Turkey. With this expansion, EBANX will have integrated payment methods across seven economies in Asia, including India and the Philippines. Combined, they represent a USD 610 billion opportunity in digital commerce and more than 1.1 billion consumers, according to data from Payments and Commerce Market Intelligence (PCMI) and World Data Lab (WDL) analyzed by EBANX. The five new markets alone account for 57% of that volume and 386 million of those consumers — whose spending is projected to grow 97% over the next decade, faster than regions like Europe, the US, and Canada, per WDL data featured in EBANX’s Beyond Borders 2026 study.

EBANX’s announcement follows a series of milestones in the region: the inauguration of its Asia-Pacific Headquarters in Singapore, a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), and the appointment of Eduardo de Abreu as Chief Product Officer (CPO) and regional CEO of EBANX Singapore.

“Asia is where the world’s fastest-growing consumer base is, and also where some of the most ambitious digital companies are headquartered,” said João Del Valle, Co-founder and CEO of EBANX. “Our investment in the region allows us to be closer to both. Global companies need local payment infrastructure to reach Asian consumers, and Asian companies need that same expertise to sell internationally. The opportunity runs in both directions.”

Among the five new EBANX’s additions, Vietnam is the fastest-growing digital commerce market, with a 22% compound annual rate through 2027, according to PCMI projections — rising from USD 36 billion to USD 44 billion. The others are not far behind. Indonesia will expand 19% over the same period, from USD 106 billion to USD 125 billion. Turkey’s 15% growth takes it from USD 123 billion to USD 142 billion. Malaysia and Thailand round out the group at 16% and 15%, respectively.

As global merchants look to diversify beyond established markets like the U.S., Europe, Brazil, and Mexico, cross-border demand in these economies is already waiting for them: international transactions account for 30% of e-commerce volume in Thailand and Malaysia, and 28% in the Philippines.

EBANX’s operations in Indonesia, Thailand, and Turkey are already available to merchants, with Malaysia and Vietnam set to follow in the next quarter. These operations will be fully supported by EBANX’s APAC HQ in Singapore.

A region that skipped the card era

Southeast Asia’s payment landscape is structurally distinct from other emerging markets. EBANX’s new countries of payment operations largely bypassed card infrastructure entirely, going from cash straight to e-wallets and account-to-account (A2A) transfers. Combined, those two methods account for 65% of e-commerce in Thailand, 61% in Indonesia, 50% in the Philippines, 35% in Malaysia, and 21% in Vietnam, according to PCMI.

“This did not happen by accident,” explained Eduardo de Abreu, Chief Product Officer and regional CEO of EBANX Singapore. “Southeast Asia has one of the youngest, most digitally fluent consumer populations in the world. Many of them got their first smartphone before they ever had a bank account, and certainly before they had a credit card. Digital wallets and instant transfers solved a real problem for a generation that was already living online.”

According to WDL data analysed by EBANX, Southeast Asia and India are the only regions where Generation Z holds the largest share of online spending across all verticals, at 27%. Elsewhere in Asia, Generation X leads at 30% — nearly double Gen Z’s 18% share.

How to reach local consumers

That payment landscape has become a barrier for global companies looking to scale in the region. According to an EBANX survey with its merchants, its fragmentation and low card usage often lead to performance issues that prevent them from reaching local consumers.

“The global companies we talk to about Southeast Asia are no longer asking about the region’s potential; they are asking how to unlock that potential and achieve high conversion rates,” said Abreu. “Our APAC Headquarters in Singapore gives us the regulatory anchor and the operational proximity to build country-by-country solutions that actually convert. We have been working toward this expansion for years, and the infrastructure is ready.”

Considering the seven Asian countries in EBANX’s portfolio, the company will have integrated more than 20 payment methods across the region. Among them are some of the most widely used alternative payment methods in each market, such as digital wallets and account-to-account (A2A) transactions—like bank transfers and QR-based paymentsas well as credit and debit cards.

ABOUT EBANX

EBANX is the leading technology platform connecting global businesses to the world’s fastest-growing digital markets. Founded in 2012 in Brazil, EBANX was built with a mission to expand access to international digital commerce. Leveraging proprietary technology, deep market expertise, and robust infrastructure, the platform enables global businesses to offer hundreds of local payment methods and streamline cross-border payments across Latin America, Africa, and Asia. With a global footprint, it established a technology and regulatory headquarters in Singapore in 2026. More than just payments, EBANX drives growth, enhances sales, and delivers seamless purchase experiences for businesses and end users alike.

For further information, please visit:
Website: https://www.ebanx.com/en/
LinkedIn: https://www.linkedin.com/company/ebanx

Media Contact:
Shan Huang
shan.huang@ahgstrategies.com 

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Agoda Report Highlights Opportunities for Japanese Hoteliers to Capture Asia’s Travelers as Only 34% Reach Advanced Localization

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Insights from Agoda’s latest report highlight how moving beyond basic localization can drive stronger revenue outcomes as Japan sees rising intra-Asia travel demand

SINGAPORE, April 20, 2026 /PRNewswire/ — Digital travel platform Agoda, in its latest deep dive report “Tailored to Win: Mastering Localization to Capture Asia’s Travelers in Japan“, reveals opportunities for Japanese hotels to capture more value from Asia’s fast-growing travel demand, with only 34% of properties having progressed beyond basic localization strategies.

Among surveyed properties, 71% of hotels at early stages of localization report positive revenue outcomes, compared to all hotels that have implemented more advanced localization, showing that while early efforts are delivering results, a more holistic approach maximizes commercial outcomes.

According to the Japan National Tourism Organization (JNTO), the market welcomed over 42 million international visitors in 2025, a 16% year-on-year increase, with Asian travelers accounting for over 80% of all arrivals.[1]  With such a high concentration of regional travelers, tailored strategies are becoming essential for hotels looking to better capture Japan’s Asian visitor market.

Agoda’s report highlights that with around 7 in 10 visitors coming from just five key Asian markets (South Korea, China, Taiwan, Hong Kong, and Thailand), hotels need to move beyond one-size-fits-all strategies and tailor their offerings to the distinct preferences of each market, whether through localized digital payment options, language support or culturally relevant on-site experiences. Hotels that adopt this more integrated approach are already seeing results, with around 80% of surveyed hoteliers reporting improvements in bookings.

“Only 34% of hotels have reached advanced stages of localization today with real opportunity lying in accelerating these efforts across the guest experience,” said Tadashi Ikai, Senior Country Director for Japan at Agoda. “By closing gaps across payments, language, and cultural understanding, hotels can better connect with Japan’s highly concentrated Asian traveler base and turn this into a sustained competitive advantage.”

Despite the potential results, Japanese hotels face several challenges in advancing localization efforts. According to the report, hoteliers cite limitations in payment integrations and marketing resources (each at 51%) as key barriers, alongside gaps in foreign language capabilities and awareness of cultural norms (each at 49%). These constraints continue to slow the adoption of more advanced, market-specific strategies.

As Japan’s tourism landscape becomes increasingly shaped by regional travel, the ability to deliver culturally attuned and localized guest experiences is becoming a key differentiator. To help partners navigate these challenges, Agoda’s report includes targeted “Quick Wins” based on traveler motivations:

South Korean Travelers: Seeks cultural exploration and unique local experiencesChinese Travelers: Spends more on experiences such as dining and activities rather than accommodationTaiwanese Travelers: Strongly motivated by culinary exploration and wellness experiencesHong Kong Travelers: Frequent, tech-savvy repeat visitors who value flexibility and convenienceThai Travelers: Often travel in families and favor budget-conscious, short-haul getaways

Agoda’s digital suite for localization draws on a global network of over 6 million diverse accommodations across markets, enabling partners to better align their offerings with the preferences of different traveler segments. With support for 39 languages, multi-currency payment options, and 24/7 customer support, Agoda helps hotels deliver more seamless and locally relevant experiences. Dedicated programs such as the Agoda Growth Program for visibility in priority markets, country-specific promotions and Agoda Media Solutions for native-language campaigns further support partners in localizing effectively. Through Agoda’s platform and expertise, hotels can overcome barriers, reach new segments and optimize their returns from international demand.

To explore how practical localization tips and actionable insights can help hotels capture more value from Asia’s diverse traveler base, download the full report at https://ago-da.co/4bAITjm.

[1] Japan National Tourism Organization (JNTO) (2025), “Tourism Statistics Database – Inbound Travel to Japan (Annual Data 2025).”
Available at: https://www.tourism.jp/en/tourism-database/stats/inbound/

 

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