Logizard Co (4391) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue reached ¥546.7 million, up 9.2% year-over-year, with net income at ¥85.7 million (+2.3% YoY) and operating profit at ¥115.3 million (+3.0% YoY), driven by strong cloud service and recurring revenue growth.

• Monthly Recurring Revenue (MRR) hit a record ¥141 million, up 9.4% year-over-year, with account numbers rising to 1,785 (+7.4% YoY).

• Growth was fueled by increased demand for B2B WMS, automation, and integration of smart stores and online channels.

Financial highlights

• Cloud service revenue grew 9.6% year-over-year to ¥420 million, with gross margin improving by 4.2 points to 65.1%.

• Development/implementation services revenue rose 3.6% to ¥96.9 million; equipment sales surged 26.5% to ¥29.7 million.

• Gross profit increased to ¥298.5 million, with an overall gross margin of 54.6%.

• Operating margin for the quarter was 21.1%, and net margin was 15.7%.

• Progress against full-year budget: 24.7% of revenue and 28.8% of operating income achieved in Q1.

Outlook and guidance

• Full-year FY2025 guidance remains unchanged: revenue forecast at ¥2,214 million (+12.0% YoY), operating and ordinary profit at ¥400 million (+15.6% YoY), and net profit at ¥281 million (+11.3% YoY).

• MRR target for year-end is ¥149 million, with Q1 progress at 37.2%.

• Annual dividend forecast is ¥18.00 per share, up from ¥16.00 in the previous year.

• Management expects further catch-up in development/implementation services as new hires gain experience.