Software Service (3733) Q2 2024 earnings summary

Executive summary

• Revenue for the second quarter was ¥21,981 million, up 31.1% year-over-year, with operating profit at ¥5,201 million, up 45.7% year-over-year, and net income attributable to shareholders at ¥3,610 million, up 45.9% year-over-year.

• The company operates a single segment focused on medical information systems, with strong sales and profit growth driven by increased demand for digital transformation in healthcare.

Financial highlights

• Operating profit margin improved, with operating profit at ¥5,201 million (45.7% increase) and net profit at ¥3,610 million (45.9% increase) compared to the same quarter last year.

• EPS for the quarter was ¥690.46, up from ¥473.37 year-over-year.

• Total assets increased to ¥42,648 million, and net assets rose to ¥34,699 million, with an equity ratio of 81.4%.

• Cash and cash equivalents at quarter-end were ¥15,726 million, up ¥5,016 million from the previous year-end.

Outlook and guidance

• Full-year revenue is forecast at ¥36,408 million, operating profit at ¥7,189 million, and net profit at ¥5,027 million, with no changes from previous guidance.

• Annual dividend forecast is ¥130 per share.