Bengo4.com (6027) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY3/2025 rose 37.9% year-over-year to ¥3,297 million, with EBITDA up 39.6% and operating profit up 14.6% year-over-year.

• Operating profit was ¥282 million, ordinary profit ¥294 million, and profit attributable to owners of parent ¥183 million for the first quarter ended June 30, 2024.

• Company-wide ARR reached 10.76 billion yen, up 40.1% year-over-year, driven by strong performance in both Bengoshi.com and CloudSign segments.

• The company acquired Bengo Kakumei Inc. on May 1, 2024, integrating its digital case record-keeping tool for lawyers into operations.

Financial highlights

• Gross profit increased 29.3% year-over-year to ¥2,537 million, while SGA expenses rose 31.4% year-over-year due to personnel and outsourcing costs.

• EBITDA for the quarter was ¥484 million.

• Basic earnings per share for the quarter was ¥8.23.

• Operating profit margin declined to 8.6% from 10.3% year-over-year.

• Extraordinary income of ¥11 million and extraordinary losses of ¥8 million were recorded.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2025: net sales ¥14,740 million, operating profit ¥2,500 million, ordinary profit ¥1,700 million, profit attributable to owners of parent ¥1,000 million, and basic EPS ¥44.88.

• Continued focus on acquiring large enterprise clients for CloudSign and expanding cross-selling of new services such as CloudSign Review.

• Ongoing development of the Legal Brain initiative, with the first research product launch scheduled for August 26.

• No changes to previously announced earnings forecasts.