Asteria (3853) Q3 2024 earnings summary

Executive summary

• Q3 cumulative revenue reached ¥3,115 million, up 22% YoY and the first time above ¥3 billion for a third quarter; recurring product sales and design revenue grew strongly.

• Unrealized investment valuation losses tied mainly to Gorilla Technology drove an operating loss, while the software segment generated ¥791 million in operating profit.

Financial highlights

• Revenue was ¥3,115 million, up 22% YoY; gross profit was ¥2,588 million, up 23% YoY.

• Operating loss was ¥3,396 million versus operating income of ¥1,291 million a year earlier; net loss attributable to owners was ¥2,264 million versus income of ¥938 million.

• SG&A declined to ¥1,843 million from ¥1,977 million YoY despite higher revenue, following the end of prior-year advances in promotion and hiring costs.

• Financial gains included ¥130 million of foreign-exchange gains from yen depreciation.

Outlook and guidance

• Subscription products remained a growth priority; Warp subscription sales rose 38% YoY and Platio revenue rose 58% YoY in the cumulative period.

• Demand opportunities include workflow digitalization amid labor shortages, work-hour regulations, the 2024 logistics and construction issues, and SAP's 2027 maintenance transition.

• Warp support plans were revamped in February 2024 to expand service options and raise customer value; the latest version added productivity and performance improvements.