POPER (5134) Q2 2024 earnings summary

Executive summary

• Revenue for 2Q FY2024 increased 15.7% year-over-year to ¥470.99 million, driven by new contracts, upselling, and business expansion.

• Operating profit before M&A expenses rose 85.1% year-over-year; after M&A and higher costs, operating profit increased 3.5% to ¥23.49 million.

• Net income for 2Q was ¥12–12.77 million, with progress toward the full-year net income target at 26.4%.

• Acquired BIT CAMPUS business from TierraCom via absorption-type split, effective May 2024, to expand market share.

Financial highlights

• 2Q FY2024 revenue: ¥470 million (+15.7% YoY); gross profit: ¥352 million (+17.3% YoY); gross margin: 74.8% (+1.1pt YoY).

• Operating profit (adjusted for M&A costs): ¥42 million (+85.1% YoY); operating margin (adjusted): 8.9% (+3.3pt YoY).

• Net profit declined 4.5% YoY to ¥12.77 million due to higher personnel, advertising, and M&A costs.

• Total assets at Q2-end: ¥997.65 million; equity ratio: 65.3%; cash and equivalents: ¥741.85 million.

Outlook and guidance

• 2Q revenue progress is 47.7% of the full-year target; full-year revenue forecast: ¥987 million, operating profit: ¥62 million, net income: ¥48 million.

• Growth expected to accelerate in the second half with new contracts, system customization, and BIT CAMPUS integration.

• No change to previously announced full-year guidance.