Institution for a Global Society (4265) Q1 2024 earnings summary

Executive summary

• HR and education started the fiscal year steadily; revenue and losses were reported as tracking budget, while ONGAESHI development investment weighed on results.

• Q1 revenue was ¥81.5m; the ¥137.8m operating loss reflected the pre-launch period for ONGAESHI and higher development spending.

Financial highlights

• Revenue was ¥81.5m, down 20.0% YoY; prior-year figures are reference comparisons because the current period began consolidated reporting.

• Gross profit was ¥19.3m, down 67.2% YoY; operating loss was ¥137.8m vs. ¥69.9m, and net loss was ¥138.5m vs. ¥70.7m.

• Cost of sales rose 44.1% to ¥62.3m and SG&A rose 22.2% to ¥157.1m YoY; personnel allocation shifted costs from SG&A to cost of sales.

Outlook and guidance

• FY March 2024 individual forecast unchanged: revenue ¥913.0m, operating and ordinary profit ¥16.4m each, and net profit ¥14.1m.

• Revenue guidance implies 36.7% growth YoY, led by forecast growth of 9.0% in HR, 17.5% in education, and 293.5% in Platform/Web3.

• ONGAESHI is scheduled to launch in October, with sales planned from Q3; education subsidy income is expected in Q2, with no full-year impact from the timing shift.

• The forecast assumes a return to standalone reporting during the fiscal year, so only individual guidance was issued.