oRo (3983) Q3 2024 earnings summary

Executive summary

• Q3 FY2024 revenue rose 12.4% year-over-year to 5,799 million yen, with operating profit up 5.8% to 1,990 million yen, and profit attributable to owners up 1.1% to 1,381 million yen.

• Cloud Solutions and Marketing Solutions both contributed to growth, with flagship products performing well and robust demand in marketing.

• Dividend policy revised to a progressive approach, with a dividend forecast increase to 35 yen per share and a treasury stock repurchase up to 500 million yen.

• The company maintained its integrated manufacturing and sales system, focusing on cloud services and marketing solutions, and continued investments in client acquisition, marketing, and recruitment.

• Segment reporting was revised: the Digital Transformation business was discontinued, and the SaaS tool "dxeco" is now fully included in Cloud Solutions.

Financial highlights

• Consolidated revenue: 5,799 million yen (+12.4% YoY); operating profit: 1,990 million yen (+5.8% YoY); profit attributable to owners: 1,381 million yen.

• Cloud Solutions revenue: 3,607 million yen (+8.8% YoY); operating profit: 1,546 million yen (+0.2% YoY).

• Marketing Solutions revenue: 2,192 million yen (+18.9% YoY); operating profit: 442 million yen (+17.9% YoY).

• Gross profit margin held at 66.8% YoY; operating margin at 34.3%.

• Total assets grew to 12,739 million yen, with cash and cash equivalents at 9,471 million yen at period-end.

Outlook and guidance

• Full-year revenue forecast: 8,229 million yen; operating profit: 2,782 million yen; profit attributable to owners: 1,963 million yen.

• Cloud Solutions and Marketing Solutions are expected to meet or slightly exceed operating profit plans, with some revenue recognition delayed to next fiscal year.

• Dividend forecast raised to 35 yen per share, reflecting performance and future business development.