Sharingtechnology (3989) Q3 2024 earnings summary

Executive summary

• 3Q YTD sales revenue reached 5,268 million yen, up 23% year-over-year, driven by main genres and Az support expansion.

• 3Q YTD operating profit rose 48% year-over-year to 1,213 million yen, with strong cost control.

• Net income for 3Q YTD decreased to 1,002 million yen due to tax effect accounting, despite strong operational gains.

• Total assets grew to 5,541 million yen from 4,126 million yen at the end of the previous fiscal year.

• Az support business saw 3Q sales of 266 million yen, up 83% year-over-year, and maintained operating profit despite prior investments.

Financial highlights

• 3Q YTD sales revenue: 5,268 million yen (YoY 123%), operating profit: 1,213 million yen (YoY 148%), net income: 1,002 million yen (YoY 92%).

• Gross profit for 3Q YTD increased by 777 million yen year-over-year to 4,819 million yen.

• Net cash provided by operating activities was 1,542 million yen, more than double the prior year.

• Basic earnings per share for the period were 44.03 yen, compared to 50.05 a year earlier.

• Cost of sales and advertisement costs increased with revenue, but ratios to gross profit remained stable.

Outlook and guidance

• FY2024 forecast maintained: sales revenue 7,200 million yen (YoY 116%), operating profit 1,600 million yen (YoY 129%), net income 1,300 million yen (YoY 98%), dividend per share 15.00 yen.

• Progress rates toward FY2024 forecast: sales revenue at 73.2%, operating profit at 75.9% as of 3Q YTD.

• Earnings per share forecast is 57.12 yen for the full year.

• Cost of sales ratio expected to rise slightly due to Az support, while other cost ratios remain stable.

• No revision to FY2024 forecast due to strong progress.