SAKURA Internet (3778) Q1 2027 earnings summary

Executive summary

• Net sales reached a record ¥11,134 million for Q1, up 48.6% year-over-year, driven by strong GPU infrastructure demand and high utilization of NVIDIA GPUs.

• Operating profit turned positive to ¥1,230 million, reversing a prior loss, as revenue growth outpaced increased costs from GPU and human resource investments.

• GPU infrastructure services were the primary growth driver, supported by robust customer demand and high utilization of newly added GPUs.

• Growth investments expanded in AI and cloud domains to capture market opportunities and secure new projects.

• Ordinary profit was ¥1,258 million, compared to an ordinary loss of ¥438 million a year earlier, with profit attributable to owners at ¥855 million versus a loss of ¥324 million.

Financial highlights

• Net sales: ¥11,134 million (up ¥3,642 million, +48.6% YoY).

• Operating profit: ¥1,230 million (up ¥1,687 million YoY, turned positive from a loss).

• Ordinary profit: ¥1,258 million (up ¥1,696 million YoY).

• Profit attributable to owners: ¥855 million (up ¥1,180 million YoY).

• EBITDA: ¥4,389 million, a record high, up 264.2% YoY.

• Gross profit margin improved to 30.7% from 20.6% YoY.

• Gross profit rose to ¥3,421 million from ¥1,544 million YoY.

• Comprehensive income for the quarter was ¥861 million, compared to a loss of ¥277 million in the prior year.

• Basic earnings per share improved to ¥21.38 from a loss of ¥8.11 YoY.

Outlook and guidance

• Full-year net sales forecast revised upward to ¥45,500 million (+1.1% from initial forecast, up 28.9% YoY).

• Full-year operating profit forecast raised to ¥2,500 million (+66.7%), with profit attributable to owners at ¥1,500 million (up 594.4% YoY).

• Six-month net sales forecast set at ¥22,500 million (up 43.9% YoY), with operating profit of ¥2,200 million.

• Continued high GPU utilization expected, with management resources focused on AI and cloud growth.

• Dividend forecast for FY 3/2027 set at ¥5.50 per share.