Institution for a Global Society (4265) Q4 2024 earnings summary

Executive summary

• FY Mar 2024 individual revenue was ¥920.9m, 37.8% YoY; individual net loss was ¥3.0m, near break-even but below the ¥14m profit plan, mainly due to delayed new-service launch and higher R&D costs.

• Core HR and education businesses advanced, while the platform/Web3 segment recorded a loss; FY2025 guidance targets higher revenue and a return to net profit.

Financial highlights

• FY2024 consolidated revenue was ¥916.955m; gross profit ¥571.756m, up 21.7% YoY on the disclosed individual-comparison basis; operating loss ¥21.667m and net loss ¥21.171m.

• FY2024 individual revenue was ¥920.915m versus ¥668.135m in FY2023; cost of sales rose 76.9% to ¥345.199m, while SG&A increased 4.6% to ¥579.241m.

• Individual revenue exceeded plan by ¥7m following completion of the platform-system sale in Q4; individual net loss was ¥3m versus planned net income of ¥14m.

Outlook and guidance

• FY2025 revenue forecast: ¥1,050m, up 14.6% YoY; net income forecast: ¥35m, supported by growth in HR and education and earlier monetization of the new business.

• FY2025 segment revenue forecasts: HR ¥425m, up 24.3%; education ¥373m, up 26.9%; platform/Web3 ¥251m, slightly lower YoY due to the prior-year system sale.

• Longer-term targets include revenue growth in the 30% range and average operating margin of at least 25%, alongside global-south expansion and business-model development in platform/Web3.