BASE (4477) Q3 2024 earnings summary

Executive summary

• Net sales for the nine months ended September 30, 2024, rose 35.5% YoY to ¥11,297 million, with operating profit of ¥799 million versus a loss of ¥420 million a year ago.

• Consolidated gross profit reached a record high, surpassing COVID-19 levels, driven by group-wide growth and improved profitability across all businesses.

• All business segments—BASE, PAY.JP, and YELL BANK—achieved strong growth in sales and profitability.

• want.jp Inc. was acquired in August 2024 to strengthen cross-border EC capabilities.

• Ordinary profit reached ¥814 million, reversing a ¥410 million loss, and profit attributable to owners was ¥687 million, up from a ¥514 million loss.

Financial highlights

• Q3 FY2024 net sales: ¥3,972 million (+33.5% YoY); gross profit: ¥1,786 million (+42.2% YoY); operating profit: ¥291 million (positive, vs. -¥133 million in Q3 FY2023).

• Nine-month net sales: ¥11,297 million (+35.5% YoY); gross profit: ¥5,024 million (+40.7% YoY); net income: ¥687 million (vs. -¥514 million YoY).

• BASE business net sales: ¥2,231 million (+17.6% YoY); PAY.JP net sales: ¥1,500 million (+50.5% YoY); YELL BANK net sales: ¥240 million (+190.4% YoY).

• Group GMV: BASE ¥36,951 million (+10.3% YoY); PAY.JP ¥54,926 million (+39.6% YoY).

• Earnings per share improved to ¥5.96 from a loss of ¥4.51 year-over-year.

Outlook and guidance

• FY2024 full-year forecast: net sales ¥15,500 million, gross profit ¥6,900 million, operating profit ¥200 million, net income ¥198 million.

• All businesses expected to slightly exceed forecasts; SG&A expenses to be slightly higher due to increased promotional spending.

• Group aims for ¥10 billion gross profit in FY2026 and long-term EBITDA margin improvement.

• BASE business GMV expected at ¥151,000 million; PAY.JP GMV at ¥202,000 million.

• want.jp Inc. expected to contribute ¥403 million in net sales and ¥34 million in operating profit for FY2024.