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Earnings presentation3673Broadleaf Co.,Ltd.Information and Communications, Services and Others

Materials for the Briefing on Financial Results for the Third Quarter of the Fiscal Year Ending December 2026

Although cumulative results for the first 3 quarters of the fiscal year ending December 2026 showed higher revenue and profit, the full-year earnings forecast was revised downward due to the loss of a major contract by a subsidiary and a review of the timing of cloud implementations, among other factors.

Worth reading
53Recurring
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
1300
¥ million (downward revision to full-year revenue and operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationThird quarter of the fiscal year ending December 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥16,297 million+7.0%
Operating profit¥2,344 million+57.1%
Ordinary income¥2,239 million+72.1%
Net income¥1,481 million+69.8%
Selling, general and administrative expenses¥8,836 million
Results for the three months of the current quarter
Revenue
¥5,515 million
Operating profit
¥867 million
Full-year earnings forecast
Revenue
¥22,500 million
Cost of sales
¥7,100 million
Gross profit
¥15,400 million
SG&A expenses and other expenses
¥11,900 million
Operating profit
¥3,500 million
Profit before tax
¥3,400 million
Profit for the year attributable to owners of the parent
¥2,300 million
Basic earnings per share
¥12.71
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue growth¥1,066 million
    DirectionProfit growth
  • Cost of sales¥257 million
    DirectionProfit decrease
  • Selling, general and administrative expenses¥-462 million
    DirectionProfit decrease
  • Other¥-9 million
    DirectionProfit decrease
  • Increase in cloud depreciation¥-238 million
    DirectionProfit decrease
  • Increase in IT infrastructure costs¥-304 million
    DirectionProfit decrease
New initiatives
  • Stepped-up AI-related research and development
  • Restructuring of the organizational structure for development, sales and other functions
  • Concentration of resources on migrating existing customers to the cloud
  • More proactive upsell proposals to cloud software customers
  • Improvement and enhancement of IT infrastructure
  • Consideration of a review of the pricing structure
Key KPIsA metric the company considers important as a management benchmark.
  • Number of cloud software users15,001 Number of licenses at quarter-end
  • User retention rate99.8 %
  • Recurring revenue ratio75.2 %
    Year on year against the same period last year+4.4 percentage points
  • Number of licenses24,927 Quarter-end
  • ARPL¥25,245monthly revenue per license, weighted average for the latest 12 months
  • Cloud adoption rate42.3 % quarter-end
  • ARR¥7,595 million quarter-end MRR × 12
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of licenses24,927 Quarter-end
  • ARPL¥25,245monthly revenue per license
Segment results
Cloud services
Sales
¥10,664 million
Year-on-year (%)26.8
Software services
Sales
¥10,291 million
Year-on-year (%)28.5
Marketplace
Sales
¥373 million
Year-on-year (%)-6.6
Package systems
Sales
¥3,688 million
Year-on-year (%)-16.4
Software Sales
Sales
¥1,220 million
Year-on-year (%)11.9
Operations and support
Sales
¥2,467 million
Year-on-year (%)-25.7
Other
Sales
¥1,945 million
Year-on-year (%)-19.3
Hardware
Sales
¥1,448 million
Year-on-year (%)-24.2
Supply chains
Sales
¥497 million
Year-on-year (%)-0.8
Annual Dividend
¥7.75per share, post-split basis
Interim Dividend
¥3.75
Year-end dividend
¥4
Payout ratio
61 %
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredThird quarter of the fiscal year ending December 2026
Net Sales¥16,297 million (YoY +7.0%)
Operating profit¥2,344 million (YoY +57.1%)
Ordinary income¥2,239 million (YoY +72.1%)
Net income¥1,481 million (YoY +69.8%)
Selling, general and administrative expenses¥8,836 million
Results for the three months of the current quarterRevenue ¥5,515 million / Operating profit ¥867 million
Full-year earnings forecastRevenue ¥22,500 million / Cost of sales ¥7,100 million / Gross profit ¥15,400 million / SG&A expenses and other expenses ¥11,900 million / Operating profit ¥3,500 million / Profit before tax ¥3,400 million / Profit for the year attributable to owners of the parent ¥2,300 million / Basic earnings per share ¥12.71
Segment resultsCloud services Sales ¥10,664 million / Year-on-year (%) 26.8 / Software services Sales ¥10,291 million / Year-on-year (%) 28.5 / Marketplace Sales ¥373 million / Year-on-year (%) -6.6 / Package systems Sales ¥3,688 million / Year-on-year (%) -16.4 / Software Sales Sales ¥1,220 million / Year-on-year (%) 11.9 / Operations and support Sales ¥2,467 million / Year-on-year (%) -25.7 / Other Sales ¥1,945 million / Year-on-year (%) -19.3 / Hardware Sales ¥1,448 million / Year-on-year (%) -24.2 / Supply chains Sales ¥497 million / Year-on-year (%) -0.8
Breakdown of Factors Affecting the ChangeFactors Revenue growth / Amount ¥1,066 million / Direction Profit growth, Factors Cost of sales / Amount ¥257 million / Direction Profit decrease, Factors Selling, general and administrative expenses / Amount ¥-462 million / Direction Profit decrease, Factors Other / Amount ¥-9 million / Direction Profit decrease, Factors Increase in cloud depreciation / Amount ¥-238 million / Direction Profit decrease, Factors Increase in IT infrastructure costs / Amount ¥-304 million / Direction Profit decrease
Key KPIsIndicator name Number of cloud software users / Value 15,001 Number of licenses at quarter-end / Year on year against the same period last year Not disclosed, Indicator name User retention rate / Value 99.8 % / Year on year against the same period last year Not disclosed, Indicator name Recurring revenue ratio / Value 75.2 % / Year on year against the same period last year +4.4 percentage points, Indicator name Number of licenses / Value 24,927 Quarter-end / Year on year against the same period last year Not disclosed, Indicator name ARPL / Value ¥25,245 (monthly revenue per license, weighted average for the latest 12 months) / Year on year against the same period last year Not disclosed, Indicator name Cloud adoption rate / Value 42.3 % (quarter-end) / Year on year against the same period last year Not disclosed, Indicator name ARR / Value ¥7,595 million (quarter-end MRR × 12) / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Number of licenses / Value 24,927 Quarter-end, Indicator name ARPL / Value ¥25,245 (monthly revenue per license)
Annual Dividend¥7.75 (per share, post-split basis)
Payout ratio61 %
New initiativesStepped-up AI-related research and development, Restructuring of the organizational structure for development, sales and other functions, Concentration of resources on migrating existing customers to the cloud, More proactive upsell proposals to cloud software customers, Improvement and enhancement of IT infrastructure, Consideration of a review of the pricing structure
Items this document does not state (15)
Gross Profit MarginOperating profit marginProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition 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.

The consolidated subsidiary SALES GO failed to win a major contract because the parties could not agree on pricing and other terms; mid-sized and larger customers prioritized support for enhanced security; and the timing of cloud implementations was adjusted due to difficulties procuring servers and other hardware.

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.
Materials for the Briefing on Financial Results for the Third Quarter of the Fiscal Year Ending December 2026 | Broadleaf Co.,Ltd. (3673) timely disclosure | Komori