Software Service (3733) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended July 31, 2024, rose 16.3% year-over-year to ¥29,199 million, with operating profit up 24.6% to ¥6,093 million and net income attributable to shareholders up 24.3% to ¥4,262 million.

• The business focuses on medical information systems, with continued demand driven by healthcare digitalization and system replacements in medical institutions.

Financial highlights

• Gross profit increased to ¥8,105 million from ¥6,836 million year-over-year, while operating margin improved due to higher sales and controlled SG&A expenses.

• Comprehensive income for the period was ¥4,303 million, up 24.7% year-over-year.

• EPS for the period was ¥815.08, compared to ¥655.60 in the prior year.

Outlook and guidance

• Full-year revenue is forecast at ¥36,408 million (up 8.0% year-over-year), with operating profit of ¥7,189 million (up 10.3%) and net income of ¥5,027 million (up 3.3%).

• No changes have been made to the previously announced full-year guidance.