Cyber Security Cloud (4493) Q2 2024 earnings summary

Executive summary

• Revenue for 2Q FY2024 reached 1.84 billion yen, up 26.6% year-over-year, with operating income rising 60.8% to 480 million yen and ARR growing 21.3% to 3.49 billion yen.

• Net sales for the six months ended June 30, 2024, rose 26.6% year-over-year to ¥1,843 million, with operating profit up 60.8% to ¥489 million and profit attributable to owners of parent up 69.3% to ¥372 million.

• Earnings per share increased to ¥40.33 from ¥23.39 year-over-year.

• Churn rates for key products Shadankun and WafCharm remained low at 0.99% and 0.79%, respectively.

• The company continues to expand globally, now operating in over 90 countries and enhancing its product lineup and cloud compatibility.

Financial highlights

• Gross profit for 2Q FY2024 was 1.29 billion yen, up 27.5% year-over-year, with an operating margin improvement of 5.7 points to 26.6%.

• Net income attributable to owners rose 69.3% year-over-year to 372 million yen.

• Ordinary profit increased 70.6% year-over-year to ¥549 million.

• Comprehensive income reached ¥375 million, up from ¥221 million year-over-year.

• Cash and cash equivalents at the end of 2Q FY2024 stood at 1.54 billion yen, down from 1.75 billion yen at the previous year-end.

• Recurring revenues increased steadily, while non-recurring revenues declined due to the absence of a one-time government project.

Outlook and guidance

• FY2024 revenue is forecasted at 3.8–4.0 billion yen, with operating income projected at 650–750 million yen.

• Full-year profit attributable to owners of parent forecast is ¥450–520 million, up 5.6–21.8% year-over-year.

• Earnings per share for the full year projected at ¥47.72–55.06.

• The company targets 5 billion yen in sales and 1 billion yen in operating income by FY2025, aiming for a 10% overseas sales ratio.

• Plans include aggressive marketing, enhanced recruitment, and further global expansion, especially within the AWS ecosystem.