Sansan (4443) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 FY2024 rose 27.4% year-over-year, with adjusted operating profit up 63.6% due to improved gross margin and sales growth.

• Net sales for the six months ended November 30, 2024, rose 27.5% year-over-year to ¥20,058 million, driven by strong demand for DX and SaaS solutions.

• Adjusted operating profit surged 58.4% year-over-year to ¥828 million, mainly due to higher sales and lower advertising expense ratio.

• Profit attributable to owners of parent surged 394.1% year-over-year, partly from a gain on sale of investment securities.

• Ordinary profit declined 48.1% year-over-year due to a temporary spike in share-based payment expenses in Q1.

Financial highlights

• Q2 FY2024 net sales: ¥10,473 million (+27.4% YoY); YTD: ¥20,058 million (+27.5% YoY).

• Adjusted operating profit: ¥828 million (+58.4% YoY); Operating profit: ¥183 million.

• Gross profit margin improved to 86.5% (+1.1 pts YoY).

• EPS for Q2: ¥5.38 (+381.7% YoY); Basic EPS: ¥2.54; Diluted EPS: ¥2.50.

• ARR reached ¥37,208 million (+26.4% YoY).

Outlook and guidance

• Full-year net sales forecast: ¥43,026–44,042 million (+27.0% to +30.0% YoY).

• Adjusted operating profit forecast: ¥3,012–4,404 million (+76.2–157.6% YoY).

• Medium-term target: 22–27% CAGR in net sales through FY2026, with adjusted operating profit margin of 18–23%.

• No dividends planned for FY2025.