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Earnings presentation147ASORACOM,INC.Information and Communications, Services and Others

Financial Results Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027

In the first half of the fiscal year ending March 2027, recurring revenue, revenue and operating profit all exceeded the year-earlier period. As SG&A expenses were contained through the use of AI, the full-year forecasts for revenue and other items were left unchanged, while the EBITDA and operating profit forecasts were each raised by ¥108 million.

Worth reading
73In focus
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
108
¥ million
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter (interim period) 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¥7,211 million+44.5%
Operating profit¥814 million+161.8%
Ordinary income¥807 million
Net income¥611 million
Gross Profit Margin49.7%
Operating profit margin11.3%
Selling, general and administrative expenses¥2,769 million
Results for the three months of the current quarter
Recurring revenue
¥2,793 million+22.9%
Net Sales
¥3,826 million+38.5%
Gross profit
¥1,994 million+41.1%
Operating profit
¥598 million+226.0%
Full-year earnings forecast
Recurring revenue
¥11,421 million
Net Sales
¥15,124 million
Gross profit
¥7,614 million
Selling, general and administrative expenses
¥6,384 million
EBITDA
¥1,758 million
Operating profit
¥1,230 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 revenue48.5% (versus the initial forecast)
Net Sales47.7% (versus the initial forecast)
Gross profit47.1% (versus the initial forecast)
Selling, general and administrative expenses42.7% (versus the initial forecast)
EBITDA58.8% (versus the revised forecast)
Operating profit66.2% (versus the revised forecast)
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 generally progressing in line with the full-year forecasts. SG&A expenses are running above plan, while EBITDA and operating profit are significantly ahead of plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Recurring revenue: strong global growth and the addition of Misora Connect to the consolidated accounts. Revenue: early deliveries in the first half for large device projects and KDDI synergy projects. Profit: improved operating efficiency and lower SG&A expenses through the use of AI, offset by a decline in the gross profit margin due to the consolidation of Misora Connect and large device projects.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rateUS$1 = ¥150
Foreign-exchange sensitivityFor each ¥1 depreciation of the yen, revenue increases by ¥40 million and operating profit increases by ¥4 million
New initiatives
  • Launch of SORACOM Physical AI Suite
  • Launch of security assessment and hardening services
  • Launch of the LTE-equipped, outdoor-capable cloud camera “SoraKame Pro”
Key KPIsA metric the company considers important as a management benchmark.
  • Annual churn rate0.4%
  • NRR121%
    Year on year against the same period last year+21%
  • Global revenue ratio (revenue)43.9%
  • Global revenue ratio (recurring revenue)51.5%
    Year on year against the same period last year+40.2%
  • Profitable Growth48.7%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Recurring revenue per paying account (ARPA)¥1.911 million
    Year on year against the same period last year+14.5%
  • Global ARPA¥2.093 million
    Year on year against the same period last year+14.5%
  • Number of paying accounts10.4k
    Year on year against the same period last year+11.5%
  • Number of global paying accounts2.6k
    Year on year against the same period last year+22.5%
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2031
Net Sales¥50.0 billion
Recurring revenue ratio70～80%
Inorganic growth ratio20～30%
Organic EBITDA margin20% or higher
Financial targets
Actual equity ratio74.8%
Market Size / Share
TAMApproximately $1.239 trillion
SAMApproximately $124.9 billion
2031 SOM¥50 billion (approximately $330 million)
Number of employees
197 people (end of Q2)
BreakdownEngineers: 118; business: 23; back office: 56
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending March 2027
Net Sales¥7,211 million (YoY +44.5%)
Operating profit¥814 million (YoY +161.8%)
Ordinary income¥807 million
Net income¥611 million
Gross Profit Margin49.7%
Operating profit margin11.3%
Selling, general and administrative expenses¥2,769 million
Results for the three months of the current quarterRecurring revenue ¥2,793 million (YoY +22.9%) / Net Sales ¥3,826 million (YoY +38.5%) / Gross profit ¥1,994 million (YoY +41.1%) / Operating profit ¥598 million (YoY +226.0%)
Full-year earnings forecastRecurring revenue ¥11,421 million / Net Sales ¥15,124 million / Gross profit ¥7,614 million / Selling, general and administrative expenses ¥6,384 million / EBITDA ¥1,758 million / Operating profit ¥1,230 million
Progress against full-year forecastRecurring revenue 48.5% (versus the initial forecast) / Net Sales 47.7% (versus the initial forecast) / Gross profit 47.1% (versus the initial forecast) / Selling, general and administrative expenses 42.7% (versus the initial forecast) / EBITDA 58.8% (versus the revised forecast) / Operating profit 66.2% (versus the revised forecast)
Self-assessment against the planRecurring revenue and revenue are generally progressing in line with the full-year forecasts. SG&A expenses are running above plan, while EBITDA and operating profit are significantly ahead of plan.
Breakdown of Factors Affecting the ChangeRecurring revenue: strong global growth and the addition of Misora Connect to the consolidated accounts. Revenue: early deliveries in the first half for large device projects and KDDI synergy projects. Profit: improved operating efficiency and lower SG&A expenses through the use of AI, offset by a decline in the gross profit margin due to the consolidation of Misora Connect and large device projects.
Key KPIsIndicator Annual churn rate / Value 0.4% / Year on year against the same period last year Not disclosed, Indicator NRR / Value 121% / Year on year against the same period last year +21%, Indicator Global revenue ratio (revenue) / Value 43.9% / Year on year against the same period last year Not disclosed, Indicator Global revenue ratio (recurring revenue) / Value 51.5% / Year on year against the same period last year +40.2%, Indicator Profitable Growth / Value 48.7% / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator Recurring revenue per paying account (ARPA) / Value ¥1.911 million / Year on year against the same period last year +14.5%, Indicator Global ARPA / Value ¥2.093 million / Year on year against the same period last year +14.5%, Indicator Number of paying accounts / Value 10.4k / Year on year against the same period last year +11.5%, Indicator Number of global paying accounts / Value 2.6k / Year on year against the same period last year +22.5%
Number of employeesValue 197 people (end of Q2) / Breakdown Engineers: 118; business: 23; back office: 56
Assumptions Underlying the Business OutlookExchange rate US$1 = ¥150 / Foreign-exchange sensitivity For each ¥1 depreciation of the yen, revenue increases by ¥40 million and operating profit increases by ¥4 million
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2031 / Net Sales ¥50.0 billion / Recurring revenue ratio 70～80% / Inorganic growth ratio 20～30% / Organic EBITDA margin 20% or higher
Financial targetsActual equity ratio 74.8%
Market Size / ShareTAM Approximately $1.239 trillion / SAM Approximately $124.9 billion / 2031 SOM ¥50 billion (approximately $330 million)
New initiativesLaunch of SORACOM Physical AI Suite, Launch of security assessment and hardening services, Launch of the LTE-equipped, outdoor-capable cloud camera “SoraKame Pro”
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.

Because the use of AI improved operating efficiency and reduced SG&A expenses more than planned. Revenue and recurring revenue benefited from early deliveries and the weaker yen, but the full-year forecasts were left unchanged because the outlook for foreign exchange rates remains uncertain.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 | SORACOM,INC. (147A) timely disclosure | Komori