Software Service (3733) Q4 2024 earnings summary

Executive summary

• Revenue rose 14.0% year-over-year to ¥38,425 million, with operating profit up 11.6% and net income attributable to shareholders up 9.5%.

• Growth driven by strong new and replacement orders for medical information systems, offsetting higher personnel and depreciation costs.

• Order backlog increased 12.7% year-over-year, supporting future revenue visibility.

Financial highlights

• Operating profit: ¥7,274 million (+11.6% YoY); ordinary profit: ¥7,336 million (+11.3% YoY).

• Net income: ¥5,328 million (+9.5% YoY); EPS: ¥1,018.92.

• Cash and equivalents at period-end: ¥15,129 million, up from ¥10,710 million.

• Dividend per share increased to ¥140, with a payout ratio of 13.7%.

Outlook and guidance

• FY2025 forecast: revenue ¥41,600 million (+8.3% YoY), operating profit ¥8,246 million (+13.3% YoY), net income ¥5,759 million (+8.1% YoY).

• Dividend forecast for FY2025: ¥150 per share.