Fuji Soft Incorporated (9749) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months rose 5.9% year-over-year to ¥236,922 million, driven by strong SI business, system integration, and demand for DX and advanced technology solutions.

• Operating income increased 8.5% to ¥16,823 million, with net income attributable to shareholders surging 72.6% to ¥16,096 million, aided by a one-time real estate sale gain.

• Despite higher SG&A expenses from office relocation and corporate value initiatives, profit growth was supported by improved sales and profitability.

• The company invested in new business areas, including translation technology, and launched a 24/7 AWS security service.

Financial highlights

• Gross profit rose to ¥55,378 million from ¥49,859 million year-over-year, with gross margin improving to 23.4%.

• Operating margin increased to 7.1% from 6.9% a year earlier.

• Net income margin attributable to shareholders improved to 6.8% from 4.2% year-over-year.

• EPS for the period was ¥255.67, up from ¥148.36 in the prior year period.

• Comprehensive income reached ¥17,385 million, up 33.7% year-over-year.

Outlook and guidance

• Full-year revenue forecast is ¥315,000 million, with operating income projected at ¥22,000 million and net income at ¥21,000 million (EPS ¥333.80), unchanged from previous guidance.

• 3Q cumulative progress: revenue at 75.2%, operating income at 76.5%.

• Despite some IT investment restraint from certain customers due to China’s economic uncertainty, demand for DX-related investments remains strong.