Broadleaf (3673) Q3 2024 earnings summary

Executive summary

• Revenue for 3Q FY2024 rose 15.2% year-on-year to ¥12,958 million, driven by strong cloud service sales and new customer acquisitions.

• Operating profit returned to positive at ¥288 million, compared to a loss of ¥1,522 million in the prior year period.

• Profit attributable to owners of the parent was ¥161 million, reversing a ¥1,028 million loss in the prior year.

• Shift to a subscription-based model and cloud software adoption are driving recurring revenue and improved margins.

• Cost reductions in sales and administrative activities contributed to improved profitability.

Financial highlights

• Gross profit for 3Q cumulative rose 25.0% YoY to ¥8,409 million; SG&A expenses decreased 1.6% YoY.

• Basic EPS improved to ¥1.81 from -¥11.60 YoY.

• Recurring sales ratio increased to 81% (from 80% YoY).

• Operating cash flow improved to ¥3,542 million, exceeding investment outflows.

• Total assets at September 30, 2024, were ¥39,005 million, up ¥2,255 million from the previous fiscal year-end.

Outlook and guidance

• FY2024 full-year revenue forecast raised to ¥17,800 million (+15.7% YoY), with operating profit forecast at ¥450 million.

• Profit before tax forecast at ¥350 million and profit attributable to owners of the parent at ¥125 million.

• Basic earnings per share for FY2024 projected at ¥1.40.

• Medium-term plan targets ¥32,500 million revenue and ¥13,000 million operating profit (40% margin) by FY2028.

• Dividend forecast for FY2024 increased to ¥2.00 per share (from ¥1.00 in FY2023).