Plus Alpha Consulting (4071) Q4 2024 earnings summary

Executive summary

• Net sales rose 24.6% year-over-year to 13,914 million yen, with operating profit up 22.4% to 4,540 million yen and an operating profit margin of 32.6%.

• Profit attributable to owners of parent grew 18.0% year-over-year to 3,093 million yen; comprehensive income reached 3,095 million yen, up 18.1%.

• HR Solutions accounted for 73% of net sales and profit, with strong growth in the Talent Palette business.

• Both HR Solutions and Marketing Solutions segments performed well, with upselling and new customer acquisition driving growth.

• Operating profit was slightly below plan due to lower-than-expected performance in Grow Up and upfront investments in new businesses and M&A.

Financial highlights

• Consolidated ordinary profit increased 23.4% year-over-year to 4,540 million yen; net profit rose 18.0% to 3,093 million yen.

• Gross profit improved to 10,148 million yen from 8,212 million yen year-over-year.

• Monthly Recurring Revenue (MRR) grew 20.4% to 1,018 million yen companywide; HR Solutions MRR up 29.9% to 712 million yen.

• Number of customers increased by 445 year-over-year to 2,668; ARPU rose 1.7% to 387 thousand yen.

• Cash and cash equivalents at period end were 10,189 million yen, up from 8,278 million yen.

Outlook and guidance

• FY2025 forecast: net sales of 17,730 million yen (+27.4% YoY), operating profit of 5,600 million yen (margin 31.6%), profit attributable to owners of parent 3,900 million yen (+26.0%), EPS 91.79.

• Dividend forecast for FY2025 is 18.00 yen per share.

• Growth expected from increased customer numbers in both HR and Marketing Solutions, and full-year contribution from recent M&A.

• Medium-term goal: sales of 30 billion yen and operating profit of 10 billion yen.