SAKURA Internet (3778) Q1 2025 earnings summary

Executive summary

• Net sales rose 16.3% year-over-year in Q1 FY 3/2025 to ¥5,935 million, driven by the launch of GPU cloud services and strong cloud infrastructure growth.

• Operating profit surged 122.0% year-over-year to ¥231 million, reflecting higher sales and active investment in human resources, digital infrastructure, and cloud development.

• Ordinary profit increased 30.3% year-over-year to ¥95 million, but profit attributable to owners fell 61.5% due to extraordinary items and a prior-year gain on investment securities.

• Significant capital was raised through a public offering to fund GPU infrastructure and data center investments.

• Comprehensive income dropped sharply to ¥16 million from ¥339 million a year earlier.

Financial highlights

• Q1 FY 3/2025 net sales: ¥5,935 million (+16.3% YoY); operating profit: ¥231 million (+122.0% YoY); ordinary profit: ¥95 million (+30.3% YoY); profit attributable to owners: ¥41 million (-61.5% YoY).

• Gross profit margin improved to 28.6% from 25.2% YoY.

• Annual Recurring Revenue (ARR) increased 9.4% YoY to ¥13,031 million.

• EBITDA for Q1 FY 3/2025 was ¥1,032 million.

• Net income per share: ¥1.15 (down from ¥3.04 YoY).

Outlook and guidance

• Net sales and operating profit are tracking in line with forecasts, but ordinary profit and net profit lag due to share issuance costs.

• Full-year net sales forecast: ¥28,000 million (up 28.3% YoY); operating profit forecast: ¥2,000 million (up 126.1% YoY); profit attributable to owners forecast: ¥1,250 million (up 91.8% YoY).

• Earnings forecasts may be revised depending on the timing of GPU arrivals or delivery of NVIDIA HGX B200 System.

• Planned year-end dividend for FY 3/25 is ¥4.00 per share, up ¥0.50 YoY.

• No change to previously announced earnings forecasts; progress expected in line with plan.