Broadleaf (3673) Q4 2024 earnings summary

Executive summary

• Revenue rose 17.3% year-over-year to 18,045 million yen, driven by strong cloud service growth and new customer acquisition.

• Operating profit returned to 674 million yen in FY2024, reversing prior losses as planned.

• Net income attributable to owners was 343 million yen, up from a loss of 1,487 million yen.

• Cloud software customer base expanded by 865, while packaged software customers declined by 644.

• SG&A expenses declined by 112 million yen due to cost optimization.

Financial highlights

• Gross profit increased 25.4% year-over-year to 11,712 million yen.

• Free cash flow improved to 2,222 million yen from -244 million yen.

• Basic earnings per share improved to 3.85 yen from -16.76 yen.

• Cash and cash equivalents at year-end were 4,306 million yen, up 386 million yen.

• Net cash from operating activities was 6,531 million yen, up 90.7% year-over-year.

Outlook and guidance

• FY2025 revenue forecasted at 20,100 million yen (+11.4% YoY), with operating profit expected to more than double to 1,500 million yen.

• Profit attributable to owners projected at 1,000 million yen, with EPS of 11.13 yen.

• Cloud services revenue projected to grow 45.2% year-over-year; recurring revenue ratio to rise to 87%.

• Annual dividend for FY2025 forecasted at 4.00 yen per share, doubling year-over-year.

• Medium-term plan targets operating income of 13,000 million yen by 2028, with 100% cloud adoption.