Logizard Co (4391) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was ¥546.7 million, up 9.2% year-over-year, with operating profit at ¥115.3 million, up 3.0%, and net profit at ¥85.7 million, up 2.3%.

• Growth was driven by increased demand for BtoB WMS, automation trends, and integration of smart stores and online channels.

• Number of accounts grew to 1,785, and Monthly Recurring Revenue (MRR) increased 9.4% year-over-year to ¥141 million.

Financial highlights

• Cloud service sales rose 9.6% year-over-year to ¥420.0 million, driven by new account acquisitions.

• Development/implementation services increased 3.6% to ¥96.9 million; equipment sales surged 26.4% to ¥29.7 million.

• Gross profit margin for cloud services improved by 4.2 percentage points year-over-year, despite higher personnel costs.

• Operating margin remained strong at 21.1%, with net margin at 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).

• Net income progress rate is 30.5% of the annual target, indicating a strong start.

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