AMIYA (4258) Q3 2024 earnings summary

Executive summary

• Achieved record-high operating profit in Q3 FY2024, with revenue for the nine months ended September 30, 2024, increasing 30.6% year-over-year to ¥3,455 million, driven by strong demand for cybersecurity services and IT talent shortages.

• Operating profit rose 16% year-over-year; net profit attributable to shareholders grew 1.6% to ¥267 million.

• Both Data Security and Network Security segments achieved double-digit sales and profit growth, with notable expansion in subscription-based revenues.

• Progress on the three-year mid-term management plan is on track.

• Transition to all-subscription model in Data Security business is progressing smoothly.

Financial highlights

• Q3 FY2024 revenue: ¥3,455 million (+30.6% YoY); operating profit: ¥365 million (+16.0% YoY); net profit: ¥267 million (+1.6% YoY).

• Gross profit for the period was ¥2,046 million, up from ¥1,346 million in the prior year.

• Progress rates: revenue 73% of revised full-year forecast, operating profit 80%, net profit 80%.

• SG&A expenses rose only 6.1% YoY, well below revenue growth.

• Equity ratio declined to 39.5% from 47.3% due to increased borrowings and contract liabilities.

Outlook and guidance

• Full-year revenue forecast revised to ¥4,740 million; operating profit to ¥459 million; net profit to ¥333 million.

• Q3 progress rates indicate strong likelihood of meeting or exceeding revised guidance.

• Mid-term plan targets doubling revenue and profit by FY2025, driven by cloud/AI and subscription model.

• No changes have been made to the previously announced full-year guidance.