ATLED (3969) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 rose 18.8% year-over-year to ¥641 million, with operating income up 3.2% to ¥213 million and net income up 1.9% to ¥139 million.

• Growth driven by strong performance in AgileWorks (+24.1%) and cloud services (+24.1%), with continued shift from package to cloud offerings.

• IT investment and digital transformation needs continue to support demand for workflow software.

• Company maintained its position as market leader, receiving the highest "LEADER" award for the 10th consecutive term in workflow systems.

Financial highlights

• Stock revenue ratio remains high, exceeding 80%, supporting stable business model.

• Cloud sales ratio increased to 45.5% in Q1 FY2025, reflecting accelerated cloud shift.

• Gross profit for Q1 FY2025 was ¥401.9 million, up from ¥393.7 million year-over-year.

• Operating profit margin declined due to nearly doubled cloud infrastructure costs, but price revisions from July are expected to improve margins.

• Contract renewal rates for main products remain above 99.8%.

Outlook and guidance

• FY2025 revenue is projected to grow 11.9% year-over-year to ¥2,800 million, with operating income expected to rise 11.4% to ¥1,170 million.

• Net profit forecast for the year is ¥784 million, up 9.8% year-over-year.

• Cloud business is expected to continue driving growth, with new pricing for X-point Cloud and increased recognition for AgileWorks cloud version.

• Company aims to further accelerate the shift from package to cloud, while capturing remaining package demand.

• Interim and year-end dividends are planned at ¥16.00 each, totaling ¥32.00 for the year.