Kubell (4448) Q4 2024 earnings summary

Executive summary

• Achieved operating profitability for the first time since FY 2020, with revenue, operating profit, and ordinary profit meeting or exceeding FY 2024 forecasts.

• EBITDA rose 71.8% YoY in Q4, turning positive at ¥856.9 million from a loss last year, despite extraordinary losses from group restructuring.

• Major strategic actions included a company name change, headquarters relocation, discontinuation of the security business, and a planned merger of kubell partner and MINAGINE in July 2025 to accelerate BPaaS growth.

• Significant organizational changes and personnel system revisions were implemented to drive growth and productivity.

• ARPU grew 8.8% and account business ARR rose 14.0% YoY, driven by product enhancements and plan revisions.

Financial highlights

• FY 2024 revenue: ¥8,470.7 million (+30.6% YoY), gross profit: ¥5,843 million (+40.8% YoY), gross margin: 69.0%.

• EBITDA: ¥856.9 million (vs. -¥83.4 million previous year), operating profit: ¥96.9 million (vs. -¥677.4 million), ordinary profit: ¥75 million (vs. -¥686 million).

• Net loss: ¥1,172.5 million, impacted by impairment losses of ¥1,249.7 million and a ¥44 million loss on investment securities.

• Cash and cash equivalents increased to ¥2,912.9 million, up ¥810.4 million from last year.

• Equity ratio declined to 26.1% from 38.6% YoY; net assets per share fell to ¥38.38.

Outlook and guidance

• FY 2025 forecast: revenue growth of at least 15% YoY to ¥9,741 million, EBITDA of at least ¥1.0 billion.

• Medium-term plan targets revenue CAGR of 30%+ from 2024 to 2026 and EBITDA margin of 10–15% by 2026.

• FY 2026 targets: ¥15.0 billion revenue, ¥1.5–2.25 billion EBITDA.

• Focus remains on expanding BPaaS and the core platform, with continued investment in growth and profitability.