Toyokumo (4058) Q3 2024 earnings summary

Executive summary

• Q3 FY2024 net sales reached ¥801 million, up 29.1% year-over-year and 7.0% sequentially.

• Operating profit for Q3 was ¥282 million, a 131.7% increase year-over-year but down 5.3% sequentially.

• Net sales for the nine months ended September 30, 2024, reached ¥2,250 million, with operating profit at ¥841 million and profit attributable to owners of parent at ¥582 million, reflecting year-on-year growth.

• Annual recurring revenue (ARR) rose to ¥3,302 million, up 27.1% year-over-year.

• Churn rate remained low at 0.68%.

Financial highlights

• Nine-month net sales totaled ¥2,250 million, up 27.6% year-over-year, achieving 72.6% of the full-year forecast.

• Operating profit for the nine months was ¥841 million, up 26.9% year-over-year, at 76.5% of the annual target.

• Gross profit for the nine-month period was ¥2,186 million, with a gross margin of approximately 97%.

• Ordinary profit totaled ¥842 million, and comprehensive income was ¥580 million.

• Total assets as of September 30, 2024, were ¥4,234 million, with net assets of ¥2,797 million and an equity ratio of 65.7%.

Outlook and guidance

• Full-year forecasts were revised upward: net sales to ¥3,100 million (+3.3%), operating profit to ¥1,100 million (+10.0%), and profit attributable to owners of parent to ¥760 million (+10.1%).

• Full-year EPS is forecast at ¥69.71.

• Dividend per share forecast raised to ¥14.00, with a payout ratio of 20.1%.

• Operating profit margin for FY2024 is expected to be around 35%.