Visional (4194) Q3 2024 earnings summary

Executive summary

• Net sales for 3Q YTD reached JPY 48.92Bn, up 17.8% year-over-year, driven by strong HR Tech segment performance and robust demand for professional recruitment in Japan.

• Operating profit for 3Q YTD was JPY 15.26Bn, up 53.2% year-over-year, with a margin of 31.2%.

• Profit attributable to owners for 3Q YTD was JPY 11.08Bn, up 57.5% year-over-year, with a margin of 22.7%.

• Growth was driven by disciplined execution, balancing investments for future growth and cost control.

• BizReach led growth with significant increases in registered employers, active headhunters, and scoutable job seekers.

Financial highlights

• Gross profit for 3Q YTD was JPY 44.79Bn, with a margin of 91.5%.

• Ordinary profit reached JPY 15.79Bn, a 50.7% increase year-over-year.

• Basic earnings per share rose to JPY 282.96 from JPY 182.67 in the prior year period.

• Total assets increased to JPY 70.70Bn as of April 30, 2024.

• Net assets grew to JPY 50.44Bn, with an equity ratio of 71.0%.

Outlook and guidance

• FY2024/7 consolidated net sales forecast remains at JPY 66.40Bn (18.0% YoY growth).

• FY2024/7 operating profit forecast revised up to JPY 17.20Bn (30.0% YoY growth, 25.9% margin).

• Profit attributable to owners of parent forecasted at JPY 12.22Bn (up 23.1%).

• BizReach FY net sales forecast adjusted to slightly below JPY 58.00Bn, reflecting expanded slowdown in hiring activities.

• HRMOS FY net sales forecast raised to JPY 3.80Bn (73.9% YoY growth) due to strong customer acquisition.