Sansan (4443) Q4 2024 earnings summary

Executive summary

• Net sales rose 32.8% year-over-year to ¥33,878 million, with adjusted operating profit up 81.5%, exceeding the upper end of guidance.

• All major business segments posted revenue and profit growth, with Bill One net sales up 155.5% and the Eight segment achieving full-year profitability for the first time.

• Growth was driven by strong performance in Sansan/Bill One and Eight, with significant market share gains in core services.

• Growth strategies focused on strengthening sales organizations and expanding product offerings, especially in BILL ONE and Sansan.

• Ordinary profit surged 903.3% year-over-year, and profit attributable to owners of parent turned positive at ¥953 million from a ¥141 million loss.

Financial highlights

• Revenue increased 32.8% year-over-year; organic growth rate (excluding M&A) was 30.2%.

• Adjusted operating profit rose 81.5% year-over-year to ¥1,709 million, with margin improving by 1.3 points to 5.0%.

• Gross profit margin was 85.1% for the year, with gross profit up 32.0% to ¥28,814 million.

• Annual recurring revenue (ARR) grew 30.9% year-over-year to ¥33,270 million; BILL ONE ARR exceeded ¥7.6 billion.

• Ordinary profit surged to ¥1,224 million from ¥122 million year-over-year, and EPS improved from -¥1.13 to ¥7.59.

Outlook and guidance

• FY2025 net sales are forecasted to grow 27.0–30.0% year-over-year to ¥43,026–44,042 million.

• Adjusted operating profit expected to rise 76.2–157.6% to ¥3,012–4,404 million, with margin improvement of 2–5 percentage points.

• Segment growth forecasts: Sansan +16.0–17.0%, BILL ONE +60.0–70.0%, Eight +32.0–38.0%.

• Medium-term policy targets a 22–27% CAGR in net sales and an adjusted operating profit margin of 18–23% by FY2026/2027.

• Key costs: personnel expenses to rise ~29%, advertising ~16%, and a one-time ¥1.2 billion increase due to HQ relocation.