POPER (5134) Q3 2024 earnings summary

Executive summary

• Revenue for 3Q FY2024 increased 23.9% year-over-year to ¥755 million, driven by new customer subscriptions, expansion among existing clients, and integration of the BIT CAMPUS business.

• Operating profit rose 52.6% year-over-year to ¥29 million, with net profit up 80.6% to ¥14.8 million, reflecting higher sales and improved operational efficiency.

• Integration of BIT CAMPUS and collaboration with TierraCom expanded the customer base and strengthened business competitiveness.

• The company continues to focus on expanding its customer base, especially among small and medium-sized cram schools, and enhancing its SaaS platform.

• No dividend is planned for the current fiscal year.

Financial highlights

• Gross profit rose 24.8% year-over-year to ¥559 million, with gross margin improving by 0.5pt to 74.1%.

• Recurring profit reached ¥27 million, a 77.8% increase year-over-year.

• Total assets at July 31, 2024, were ¥988 million, up ¥110 million from the previous year-end.

• Equity ratio was 66.1%, down from 72.5% at the previous year-end.

• SG&A expenses increased 23.6% to ¥529 million, mainly due to higher personnel costs and M&A-related expenses.

Outlook and guidance

• 3Q revenue progress reached 76.5% of the full-year target, with additional large-scale custom development sales expected in 4Q, supporting confidence in achieving full-year guidance.

• Full-year revenue is forecast at ¥987 million, with operating profit of ¥62 million and net profit of ¥48 million, unchanged from previous guidance.

• Full-year operating profit margin is forecast at 6.4%, up from 3.9% in 3Q.

• Management notes that actual results may differ due to various factors.