Bridge Consulting Group (9225) Q4 2024 earnings summary

Executive summary

• Achieved consolidated revenue of ¥2,017.7 million, operating income of ¥231.2 million, and net income attributable to parent of ¥169.9 million for FY2024, the first year of consolidated financial statements.

• Achieved over 22% growth in IPO support in 2023, expanding market share and establishing new offices, including Fukuoka.

• Expanded professional sharing business, with over 4,900 registered accountants and 1,200+ client companies as of September 2024.

• Launched BridgeResourceStrategy and Bridge Executive Search to strengthen group management and focus on specialized business areas.

• Enhanced the professional accountant platform, surpassing 5,000 registered members and launching premium services for listed companies.

Financial highlights

• FY2024/9 revenue rose to ¥2,017 million, up 21.9% year-over-year; operating income increased to ¥231 million, up 48.8%.

• Gross profit: ¥1,089.1 million; SG&A expenses: ¥857.9 million.

• Net income attributable to parent was ¥169 million, up 65.1% year-over-year.

• Consulting services accounted for 92.6% of revenue, with personnel introduction services at 7.4%.

• Cash and equivalents at year-end: ¥1,204.5 million; Operating cash flow: ¥185.9 million.

Outlook and guidance

• FY2025/9 revenue forecast at ¥2,430 million (+20.4%), gross profit at ¥1,314 million (+20.7%).

• Operating income expected to decrease to ¥150 million (-35.1%) due to increased investment in personnel and platform development.

• Net income forecast to decline to ¥105 million (-38.2%).

• Gross margin projected to remain stable at 54.1%, while SG&A ratio will rise with strategic investments.

• Temporary profit decline anticipated as investments are made to achieve 2030 targets.