Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | SORACOM,INC. (147A) timely disclosure

Worth reading

54Recurring

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Improvement

Direction inferred from the company’s description.

Scale

52.1

Year-on-year increase in net sales (%)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of the fiscal year ending March 202710 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥3,384 million+52.1%

Operating profit¥215 million+69.3%

Ordinary income¥202 million

Net income¥171 million attributable to owners of the parent

Gross Profit Margin47 %

Operating profit margin6.4 %

Selling, general and administrative expenses¥1,373 million

Results for the three months of the current quarterRecurring revenue: ¥2,742 million; revenue: ¥3,384 million; gross profit: ¥1,589 million; SG&A expenses: ¥1,373 million; EBITDA: ¥316 million; operating profit: ¥215 million

Full-year earnings forecast

Recurring revenue

¥11,421 million

Net Sales

¥15,124 million

Gross profit

¥7,614 million

Selling, general and administrative expenses

¥6,492 million

EBITDA

¥1,650 million

Operating profit

¥1,122 million

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Recurring revenue24.0%

Net Sales22.4%

Gross profit20.9%

Selling, general and administrative expenses21.2%

EBITDA19.2%

Operating profit19.2%

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Recurring revenue and revenue are both progressing smoothly against the full-year forecasts. EBITDA and operating profit are also progressing smoothly.

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

The gross profit margin declined by 8.0 percentage points following the consolidation of ミソラコネクト (Misora Connect). The SG&A ratio improved by 8.7 percentage points due to greater cost efficiency through the use of AI and other factors.

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Assumed Exchange Rates¥150.00/USD

New initiatives

Launch of a cloud-native mobile core business for telecommunications operators
Launch of SORACOM Automotive Suite
Announcement of a new LTE-enabled, outdoor-compatible cloud camera model, with sales beginning in September
Rollout of the AI agent service SORACOM Agent
Plan for overseas expansion through the acquisition of an overseas IoT MVNO

Key KPIsA metric the company considers important as a management benchmark.

Recurring revenue¥2,742 million
Year on year against the same period last year+48.6%
Recurring revenue as a percentage of global revenue50.5 %
Year on year against the same period last year+45.9%
Annual churn rate0.4 %
Net retention rate121 %
Number of contracted lines10,000,000 More than lines
Employee AI utilization rate100 Approximately %

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Recurring revenue per paying account (ARPA)¥1,044 thousand
Year on year against the same period last year+30.6%
Number of paying accounts10,600 Accounts
Year on year against the same period last year+21.3%
Global ARPA¥2,121 thousand
Year on year against the same period last year+20.7%
Number of global paying accounts2,700 Accounts
Year on year against the same period last year+27.6%

Medium-term management plan targets

Target fiscal yearFiscal year ending March 2031

Net Sales¥50.0 billion

Revenue CAGRMore than 30%

Recurring revenue ratio70～80%

Inorganic growth ratio20～30%

Organic EBITDA marginMore than 20%

Comparison with actual resultsRevenue target of ¥50 billion in FY2031, compared with revenue of ¥12.423 billion in FY2026

Financial targets

Equity ratio73.7% (actual as of the end of Q1 FY2027)

ROICThe policy states that investment projects must achieve ROIC > WACC

Market Size / Share

Global IoT market sizeApproximately $952.3 billion in 2029

Total IoT marketApproximately $1,239.0 billion in 2031 (TAM)

IoT connectivity marketApproximately $124.9 billion (SAM)

Number of employees

Number of Employees196 People as of the end of Q1 FY2027, regular employees excluding directors

Change during the periodIncreased from 175 people at the end of the same quarter of the previous year

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	¥3,384 million (YoY +52.1%)
Operating profit	¥215 million (YoY +69.3%)
Ordinary income	¥202 million
Net income	¥171 million (attributable to owners of the parent)
Gross Profit Margin	47 %
Operating profit margin	6.4 %
Selling, general and administrative expenses	¥1,373 million
Results for the three months of the current quarter	Recurring revenue: ¥2,742 million; revenue: ¥3,384 million; gross profit: ¥1,589 million; SG&A expenses: ¥1,373 million; EBITDA: ¥316 million; operating profit: ¥215 million
Full-year earnings forecast	Recurring revenue ¥11,421 million / Net Sales ¥15,124 million / Gross profit ¥7,614 million / Selling, general and administrative expenses ¥6,492 million / EBITDA ¥1,650 million / Operating profit ¥1,122 million
Progress against full-year forecast	Recurring revenue 24.0% / Net Sales 22.4% / Gross profit 20.9% / Selling, general and administrative expenses 21.2% / EBITDA 19.2% / Operating profit 19.2%
Self-assessment against the plan	Recurring revenue and revenue are both progressing smoothly against the full-year forecasts. EBITDA and operating profit are also progressing smoothly.
Breakdown of Factors Affecting the Change	The gross profit margin declined by 8.0 percentage points following the consolidation of ミソラコネクト (Misora Connect). The SG&A ratio improved by 8.7 percentage points due to greater cost efficiency through the use of AI and other factors.
Key KPIs	Indicator name Recurring revenue / Value ¥2,742 million / Year on year against the same period last year +48.6%, Indicator name Recurring revenue as a percentage of global revenue / Value 50.5 % / Year on year against the same period last year +45.9%, Indicator name Annual churn rate / Value 0.4 % / Year on year against the same period last year Not disclosed, Indicator name Net retention rate / Value 121 % / Year on year against the same period last year Not disclosed, Indicator name Number of contracted lines / Value 10,000,000 More than lines / Year on year against the same period last year Not disclosed, Indicator name Employee AI utilization rate / Value 100 Approximately % / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Indicator name Recurring revenue per paying account (ARPA) / Value ¥1,044 thousand / Year on year against the same period last year +30.6%, Indicator name Number of paying accounts / Value 10,600 Accounts / Year on year against the same period last year +21.3%, Indicator name Global ARPA / Value ¥2,121 thousand / Year on year against the same period last year +20.7%, Indicator name Number of global paying accounts / Value 2,700 Accounts / Year on year against the same period last year +27.6%
Number of employees	Number of Employees 196 People (as of the end of Q1 FY2027, regular employees excluding directors) / Change during the period Increased from 175 people at the end of the same quarter of the previous year
Assumptions Underlying the Business Outlook	Assumed Exchange Rates ¥150.00/USD
Medium-term management plan targets	Target fiscal year Fiscal year ending March 2031 / Net Sales ¥50.0 billion / Revenue CAGR More than 30% / Recurring revenue ratio 70～80% / Inorganic growth ratio 20～30% / Organic EBITDA margin More than 20% / Comparison with actual results Revenue target of ¥50 billion in FY2031, compared with revenue of ¥12.423 billion in FY2026
Financial targets	Equity ratio 73.7% (actual as of the end of Q1 FY2027) / ROIC The policy states that investment projects must achieve ROIC > WACC
Market Size / Share	Global IoT market size Approximately $952.3 billion in 2029 / Total IoT market Approximately $1,239.0 billion in 2031 (TAM) / IoT connectivity market Approximately $124.9 billion (SAM)
New initiatives	Launch of a cloud-native mobile core business for telecommunications operators, Launch of SORACOM Automotive Suite, Announcement of a new LTE-enabled, outdoor-compatible cloud camera model, with sales beginning in September, Rollout of the AI agent service SORACOM Agent, Plan for overseas expansion through the acquisition of an overseas IoT MVNO

Items this document does not state (9)

Segment resultsNumber of stores and locationsRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue and recurring revenue increased, driven by growth in the global business and other factors. The gross profit margin declined following the consolidation of ミソラコネクト (Misora Connect), while the SG&A ratio improved as the use of generative AI and AI increased cost efficiency and helped contain the increase in SG&A expenses.

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