Visional (4194) Q4 2024 earnings summary

Executive summary

• FY2024 net sales reached JPY 66.14Bn, up 17.5% year-over-year, with operating profit at JPY 17.83Bn, up 34.9% year-over-year and a 27.0% margin, reflecting strong execution and disciplined investment.

• BizReach, the core business, delivered JPY 57.77Bn in net sales (+17.5% YoY), while HRMOS net sales grew 76.0% YoY to JPY 3.84Bn, with significant customer acquisition and product expansion.

• Incubation segment net sales declined 9.8% YoY due to the sale of BizHint, but all other incubation businesses recorded growth.

Financial highlights

• Consolidated gross profit was JPY 60.43Bn (91.4% margin), and profit attributable to owners of parent was JPY 12.99Bn (+30.8% YoY, 19.6% margin).

• 4Q operating profit declined 21.1% YoY due to planned growth investments, but full-year profit exceeded forecasts by 11.5%.

• HR Tech segment net sales grew 18.8% YoY to JPY 63.79Bn, with operating profit of JPY 20.06Bn.

• Incubation segment posted an operating loss of JPY 1.02Bn, an improvement from the previous year.

Outlook and guidance

• FY2025 consolidated net sales forecast is JPY 76.40Bn (+15.5% YoY), with operating profit of JPY 19.15Bn (+7.4% YoY, 25.1% margin).

• BizReach net sales expected to grow 15.0% YoY to JPY 66.44Bn, maintaining a 40% profit margin; HRMOS net sales forecast to rise 30.1% YoY to JPY 5.00Bn.

• Increased investment planned in human capital and other businesses to drive mid-term enterprise value.