Sharingtechnology (3989) Q4 2024 earnings summary

Executive summary

• FY2024 sales revenue reached 7,502 million yen, up 21% year-over-year, with operating profit at 1,790 million yen, up 44% year-over-year, and net income at 1,467 million yen, up 11% year-over-year.

• Strong growth driven by main genres and expansion of Az support, with cost ratios maintained at stable levels.

• Group company Az support contributed 761 million yen in sales, with Q4 sales up 216% year-over-year.

• First-ever year-end dividend of 15 yen and share repurchase of 500 million yen executed.

• Comprehensive income attributable to owners reached 1,472 million yen, up from 1,320 million yen the previous year.

Financial highlights

• FY2024 sales revenue: 7,502 million yen (+21% YoY); operating profit: 1,790 million yen (+44% YoY); net income: 1,467 million yen (+11% YoY).

• Q4 FY2024 sales revenue: 2,234 million yen (+15% YoY); operating profit: 576 million yen (+38% YoY); net income: 465 million yen (+110% YoY).

• Gross profit for FY2024 was 6,871 million yen, up 18% year-over-year.

• SGA expenses increased to 5,161 million yen (+13% YoY), with advertisement cost ratio maintained at around 47%.

• Cash and cash equivalents at year-end increased to 4,109 million yen from 1,851 million yen.

Outlook and guidance

• FY2025 forecast: sales revenue of 8,600 million yen (+15% YoY), operating profit of 2,000 million yen (+12% YoY), net income of 1,400 million yen (-5% YoY, due to tax effect accounting).

• Dividend per share to double to 30 yen in FY2025, with payout ratio expected to exceed 49%.

• Cost of sales and fixed costs expected to rise with expansion of own services, while advertisement and call center labor cost ratios remain stable.

• Management notes that forecasts are based on currently available information and rational assumptions, with actual results subject to various factors.