Asteria (3853) Q2 2024 earnings summary

Executive summary

• H1 revenue exceeded ¥2.0bn for the first time, with subscription products and design services driving growth; an unrealized investment loss caused a large consolidated operating loss.

• Revenue rose 17% YoY and gross profit rose 19% YoY; Gorilla Technology Group’s share-price decline was the primary reason for investment-segment losses.

Financial highlights

• H1 revenue was ¥2,003m versus ¥1,711m YoY; gross profit was ¥1,682m versus ¥1,411m.

• Consolidated operating loss was ¥3,344m versus operating income of ¥4,685m a year earlier, including a ¥3,799m unrealized investment valuation loss.

• Financial results included foreign-exchange gains of more than ¥300m, partly reflecting yen depreciation.

Outlook and guidance

• DX demand is expected to remain supported by regulatory changes, labor shortages, overtime-limit rules and the need to improve operational efficiency.

• Subscription products are positioned for continued demand as customers seek lower initial costs and no-code tools amid shortages of IT personnel.

• Forward-looking expectations carry uncertainty and actual results may differ as conditions change.