Sansan (4443) Q1 2025 earnings summary

Executive summary

• Net sales increased 27.7% year-over-year to ¥9,584 million, with adjusted operating profit up 44.4% to ¥207 million, despite higher personnel and rent expenses from headcount growth and head office relocation.

• Annual recurring revenue (ARR) rose 29.6% year-over-year to ¥35,133 million.

• Ordinary profit and profit attributable to owners were negative due to a significant increase in share-based payment expenses.

• The company expects a ¥416 million gain on sale of investment securities as extraordinary income in Q2 FY2024.

• Bill One Expense service was launched, and Kaede IR Advisory was acquired and merged into Logmi.

Financial highlights

• Gross profit grew 27.7% year-over-year to ¥8,313 million, with a gross margin of 86.7%.

• Adjusted operating profit margin improved by 0.3 points year-over-year to 2.2%.

• Ordinary profit declined and net loss attributable to owners was ¥372 million due to increased share-based payment expenses.

• Operating profit swung from ¥120 million in Q1 FY2023 to a loss of ¥325 million in Q1 FY2024.

• Basic earnings per share dropped from ¥0.25 to ¥(2.96) year-over-year.

Outlook and guidance

• FY2025 net sales forecast is ¥43,026–44,042 million (up 27.0–30.0% year-over-year), with adjusted operating profit projected at ¥3,012–4,404 million (up 76.2–157.6%).

• Adjusted operating profit margin expected to improve by 2.0–5.0 points year-over-year, targeting 7.0%–10.0%.

• Medium-term policy aims for a 22–27% CAGR in net sales and an 18–23% adjusted operating profit margin by FY2026–FY2027.

• Long-term profit margin expected to exceed 30% once growth stabilizes at market average.

• Full-year guidance remains unchanged from previous announcements.