GMO Financial Gate (4051) Q4 2024 earnings summary

Executive summary

• FY2024 operating profit grew 35.2% year-over-year, surpassing the original full-year forecast; recurring ARPU and merchant ecosystem expansion drove results.

• Revenue reached ¥18.70 bn (+17.6% YoY), with operating profit at ¥1.51 bn (+35.2% YoY); recurring-model revenue rose 41.8%.

• Transaction volume and GMV both increased over 50% YoY, with active terminals up 25.6% YoY to 375,000.

• Progress toward mid-term plan is one year ahead of schedule, with a clear path to ¥5 bn operating profit by 2030.

• Received the "2024 Award for Excellence in Corporate Disclosure" for the second consecutive year.

Financial highlights

• Gross profit rose 54.8% YoY to ¥6.05 bn, outpacing revenue growth due to higher-margin software and recurring revenue.

• Profit attributable to owners of parent was ¥986 mn (+32.2% YoY), aided by a one-time tax credit of ¥74 mn.

• Dividend per share increased to ¥62 (+¥16 YoY), exceeding forecast.

• Recurring revenue composition increased, with fee and stock revenue both showing strong double-digit growth.

• Top 30 merchants' GMV grew 29.8% YoY, but dependence on top clients decreased as overall GMV expanded.

Outlook and guidance

• FY2025 revenue forecast is ¥22.2 bn (+18.7% YoY), with operating profit expected to reach ¥2.02 bn (+31.9% YoY) under IFRS.

• Dividend per share projected to rise to ¥80.

• Gross profit margin expected to decrease slightly due to changes in terminal revenue mix.

• Continued focus on expanding recurring revenue and active IDs, with large projects concentrated in 2H FY25–1H FY26.

• Targeting operating profit of ¥5 bn by 2030, one year ahead of initial plan.