Extreme (6033) Q3 2024 earnings summary

Executive summary

• FY2023 3Q cumulative revenue was ¥7,483 million, up 18.0% YoY; operating profit was ¥894 million, up 36.9%, and net income was ¥721 million, up 29.4%.

• Q3 revenue reached a record ¥2,644 million; sequentially, revenue rose 11.5%, while operating profit fell 7.6% to ¥248 million.

Financial highlights

• 9M ordinary profit was ¥1,096 million, up 41.3% YoY; Q3 ordinary profit was ¥208 million, down 45.6% QoQ.

• 9M segment sales: digital talent ¥4,525 million, contract development ¥2,779 million, and content properties ¥348 million; figures include intersegment sales or transfers.

• Q3 sequential segment sales: digital talent ¥1,578 million, up 5.8%; contract development ¥1,058 million, up 27.4%; content properties ¥71 million, down 32.0%.

Outlook and guidance

• FY2023 forecast revised: revenue ¥10,100 million, operating profit ¥1,050 million (10.4% margin), ordinary profit ¥1,260 million, net income ¥825 million, and EPS ¥149.96.

• Versus prior guidance, revenue rose 1.0%, operating profit 16.7%, ordinary profit 26.0%, and net income 28.9%; EPS increased from ¥116.33 to ¥149.96.

• Content-property sales are expected below plan; larger contract-development projects, higher EXTREME VIETNAM utilization, and improved cost control supported the revision.