Cyber Security Cloud (4493) Q3 2024 earnings summary

Executive summary

• Revenue for FY2024 3Q cumulative reached 2.80 billion yen, up 26.2% year-over-year, with ARR at 3.78 billion yen, up 25.3% year-over-year.

• Operating income for 3Q cumulative was 0.69 billion yen, a 48.7% increase year-over-year.

• Net income attributable to owners was 0.47 billion yen, up 38.3% year-over-year.

• Comprehensive income for the period reached 0.47 billion yen, compared to 0.34 billion yen in the prior year.

• Each profit stage exceeded the lower bound of the initial forecast for the fiscal year.

Financial highlights

• Gross profit for 3Q was 1.90 billion yen, up 23.2% year-over-year.

• Ordinary income rose 40.4% year-over-year to 0.70 billion yen.

• Earnings per share for the nine months were 51.12 yen, up from 36.17 yen in the prior year.

• Total assets as of September 30, 2024, were 2.74 billion yen, with net assets at 1.60 billion yen and an equity ratio of 56.9%.

• Recurring revenue saw a substantial increase due to WafCharm price revision and new projects, achieving a record high in new order value.

Outlook and guidance

• Revenue forecast for FY2024 revised to 3.8 billion yen, with operating profit forecast at 720 million yen.

• Full-year earnings per share are forecast at 51.17 yen.

• Rapid investments planned to accelerate customer acquisition in the next fiscal year.

• Financial targets for FY2025: revenue of 5 billion yen and operating income of 1 billion yen.

• Overseas sales ratio targeted to exceed 10% by December 2025.