DIP Corporation (2379) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 operating income of ¥4,023 million, up 20.4% year-over-year, with sales rising 8.9% to ¥15,279 million and net income up 30.2% to ¥2,804 million, driven by growth in personnel recruiting and DX businesses.

• Launched new AI Agent business and AI-driven services, positioning them as core innovations for future growth and transforming services from conventional search to interactive experiences.

• Expanded management team with a new CTO and executives to accelerate innovation and operational efficiency.

• Investments made in sales capabilities, including new graduate hires and office expansions.

• Continued market share expansion in personnel recruiting and DX businesses, outpacing market growth.

Financial highlights

• Q1 FY'25/2 sales: ¥15,279 million (+8.9% YoY); operating income: ¥4,023 million (+20.4% YoY); net income: ¥2,804 million (+30.2% YoY); gross profit: ¥13,746 million.

• DX Business sales: ¥1,707 million (+20.8% YoY); Personnel Recruiting Services sales: ¥13,572 million (+7.6% YoY); segment profit for recruiting: ¥5,714 million (+28.8% YoY).

• Net income per share was ¥51.44, up from ¥38.57 year-over-year.

• Decreased advertising and personnel expense ratios, with improved operational efficiency.

• Comprehensive income increased 30.9% year-over-year to ¥2,742 million.

Outlook and guidance

• Full-year FY'25/2 forecast unchanged: sales ¥57,600 million (+7.1% YoY), operating income ¥13,400 million (+5.0% YoY), net income ¥8,900 million (-1.7% YoY); dividend forecast at ¥88 per share.

• Personnel Recruiting Services sales expected to grow 5%, segment profit 13%; DX Business sales to rise 20%, segment profit 16%.

• Market sentiment assumed to remain weak or flat in the second half, especially for part-time job advertising.