Cyber Security Cloud (4493) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of 3.85 billion yen for FY2024, up 26.0% year-over-year, with operating income rising 40.7% to 0.77 billion yen and net income up 34.6% to 575 million yen.

• Surpassed revised earnings forecasts, with operating profit margin exceeding 20% for the first time since listing.

• Comprehensive income reached 577 million yen, up from 428 million yen in the prior year.

• Annual Recurring Revenue (ARR) reached 4.09 billion yen, up 24.6% year-over-year, driven by strong new order value and price revisions.

• Churn rates for core products Shadankun and WafCharm remained low and stable at 1.10% and 0.83%, respectively.

Financial highlights

• Gross profit increased 18.0% year-over-year to 2.52 billion yen.

• Ordinary income rose 48.8% to 832 million yen, and achievement rates for all major profit metrics exceeded 100% of forecasts.

• Operating margin improved to 20.1% from 18.0% year-over-year.

• Earnings per share rose to 62.36 yen from 45.28 yen year-over-year.

• Cash and cash equivalents at year-end were 1,667 million yen.

Outlook and guidance

• FY2025 targets: revenue of 5 billion yen (+29.6% YoY), operating profit of 1 billion yen (+29.3% YoY), and net income of 693 million yen (+20.6% YoY).

• Earnings per share projected at 75.42 yen for FY2025.

• Plans to accelerate CloudFastener growth with large-scale marketing and global expansion.

• Dividend policy revised to aim for continuous increases; first dividend payout of 5.0 yen per share planned for FY2025.