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Financial results presentation3634Sockets Inc.Information and Communications, Services and Others

Earnings Presentation Materials for the Second Quarter of the Fiscal Year Ending March 2027

In the first half, revenue was broadly in line with the same period of the previous year, while operating profit doubled year on year to ¥32 million, and the operating margin improved from 3.0% to 6.2%. The full-year forecast remains unchanged, and the company is advancing initiatives for growth from the next fiscal year onward, including the acquisition of an IP licensing business platform and investments and alliances.

Worth reading
48Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
200
Year-on-year change in operating profit (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationCumulative second quarter, fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥528 million-0.4%
Operating profit¥32 million+100.0%
Ordinary income¥33 million+94.0%
Net income¥22 million
Gross Profit Margin50.4
Operating profit margin6.2
Selling, general and administrative expenses¥233 million
Full-year earnings forecast
Net Sales
¥1,100 million
Operating profit
¥65 million
Ordinary income
¥67 million
Net income for the current fiscal year
¥56 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。
Net Sales48%
Operating profit50%
Ordinary income50%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressed broadly in line with plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Increase in stock-based revenue from operations and licensing, productivity improvements including the use of coding AI, completion of upfront investments, and company-wide efficiency improvements
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Based on information available as of the announcement date and certain assumptions deemed reasonable, but specific figures are not disclosed
New initiatives
  • Acquisition of an IP licensing business platform from 株式会社CREO
  • Investment in 株式会社ミュージック・クラッカー
  • Integration of MSDB cross-media data into the IP database
  • Launch of Re-Record for Music, an AI-OCR service specializing in music
  • Product and service development toward the commercialization of an entertainment DMP
Key KPIsA metric the company considers important as a management benchmark.
  • IP content20,000 Engagements
  • Works by media type950,000 Title
  • Recorded relationships1,200,000 over downloads
  • PoC for an entertainment DMP6 Engagements
  • Pipeline with major IP holders8 companies or more; 6 sectors, etc.
Segment results
Music data services
Year-on-year change in gross profit104%
Video data services
Year-on-year change in gross profit99%
Affective marketing
Year-on-year change in gross profit221%
Medium-term management plan targets
Gross MarginAt least 60%
Revenue growth20% or higher
Operating profit margin25〜30%
Target fiscal yearMedium term
Financial targets
Equity ratio
Actual results65.8 %
Annual Dividend
¥6 per share (the breakdown between the interim and year-end dividends is not disclosed)
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredCumulative second quarter, fiscal year ending March 2027
Net Sales¥528 million (YoY -0.4%)
Operating profit¥32 million (YoY +100.0%)
Ordinary income¥33 million (YoY +94.0%)
Net income¥22 million
Gross Profit Margin50.4
Operating profit margin6.2
Selling, general and administrative expenses¥233 million
Full-year earnings forecastNet Sales ¥1,100 million / Operating profit ¥65 million / Ordinary income ¥67 million / Net income for the current fiscal year ¥56 million
Progress against full-year forecastNet Sales 48% / Operating profit 50% / Ordinary income 50%
Self-assessment against the planProgressed broadly in line with plan
Segment resultsMusic data services Year-on-year change in gross profit 104% / Video data services Year-on-year change in gross profit 99% / Affective marketing Year-on-year change in gross profit 221%
Breakdown of Factors Affecting the ChangeIncrease in stock-based revenue from operations and licensing, productivity improvements including the use of coding AI, completion of upfront investments, and company-wide efficiency improvements
Key KPIsIP content 20,000 Engagements, Works by media type 950,000 Title, Recorded relationships 1,200,000 over downloads, PoC for an entertainment DMP 6 Engagements, Pipeline with major IP holders 8 companies or more; 6 sectors, etc.
Assumptions Underlying the Business OutlookBased on information available as of the announcement date and certain assumptions deemed reasonable, but specific figures are not disclosed
Medium-term management plan targetsGross Margin At least 60% / Revenue growth 20% or higher / Operating profit margin 25〜30% / Target fiscal year Medium term
Financial targetsEquity ratio Actual results 65.8 % / ROE Not disclosed / ROIC Not disclosed / Debt-to-equity ratio Not disclosed
Annual Dividend¥6 per share (the breakdown between the interim and year-end dividends is not disclosed)
New initiativesAcquisition of an IP licensing business platform from 株式会社CREO, Investment in 株式会社ミュージック・クラッカー, Integration of MSDB cross-media data into the IP database, Launch of Re-Record for Music, an AI-OCR service specializing in music, Product and service development toward the commercialization of an entertainment DMP
Items this document does not state (11)
Results for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey 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.

This was due to an increase in stock-based revenue from operations and licensing, along with lower cost-of-sales and SG&A ratios resulting from productivity improvements, including the use of coding AI, the completion of upfront investments, and company-wide efficiency improvements.

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.
Earnings Presentation Materials for the Second Quarter of the Fiscal Year Ending March 2027 | Sockets Inc. (3634) timely disclosure | Komori