Kubell (4448) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024, rose 36.6% year-over-year to ¥3,994.97 million, with a return to profitability at all levels, including net income of ¥24.87 million compared to a loss of ¥418.38 million a year earlier.

• EBITDA reached ¥313.13 million, reversing a negative result from the prior year, and operating profit was ¥41 million, both positive after prior losses.

• The company revised its FY2024 forecast, projecting revenue growth of 29–31% YoY and EBITDA of 570–600 million yen, both exceeding previous guidance.

• Strategic initiatives included revising the free plan, enhancing paid plan features, discontinuing the security business, and relocating headquarters.

• The company is focusing on expanding its business chat platform and BPaaS services, with significant investments in product development and customer acquisition.

Financial highlights

• Q2 FY2024 revenue reached 2,060 million yen (+36.3% YoY, +6.5% QoQ); Chatwork segment revenue was 2,023 million yen (+38.8% YoY, +6.7% QoQ).

• Gross profit rose 54.8% YoY to 1,436 million yen, with gross margin improving 8.3pt YoY to 69.7%.

• Cash and cash equivalents rose by ¥407.87 million to ¥2,510.35 million as of June 30, 2024.

• Net assets increased by ¥170.33 million to ¥2,592.54 million, and the equity ratio improved to 39.1%.

• EBITDA was 188 million yen, and operating profit was 41 million yen, both positive after prior losses.

Outlook and guidance

• FY2024 revenue forecast revised to 8,365–8,495 million yen (+29–31% YoY), with gross profit of 5,665–5,794 million yen (+36.5–39.6% YoY).

• Gross margin expected to reach 67.7–68.2% (+3.7–4.2pt YoY); EBITDA forecast at 574–600 million yen.

• Operating profit projected at 1–27 million yen, returning to profitability for the first time in four years.

• Net income is forecast in the range of a 97 million yen loss to an 8 million yen profit.

• Medium-term plan targets 30%+ CAGR in revenue through 2026, aiming for JPY15bn revenue and 10–15% EBITDA margin by FY2026.