Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | SAKURA internet Inc. (3778) timely disclosure

Worth reading

74In focus

Scored from 5 of 6 sections

Direction

Improvement

Direction inferred from the company’s description.

Scale

1000

¥ million (amount of the upward revision to the full-year operating profit forecast)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial Results 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 Sales11,134 Millions of yen+48.6%

Operating profit1,230 Millions of yen

Ordinary income1,258 Millions of yen

Net income855 Millions of yen

Selling, general and administrative expenses2,190 Millions of yen

Gross Profit Margin

Rate30.7

Year-on-year change (points)10.1

Operating profit margin

Rate11.1

Year-on-year change (points)17.2

Results for the three months of the current quarter

Net Sales11,134 Millions of yen

Operating profit1,230 Millions of yen

Ordinary income1,258 Millions of yen

Profit attributable to owners of parent for the quarter855 Millions of yen

Full-year earnings forecast

Net Sales

45,500 Millions of yen

Operating profit

2,500 Millions of yen

Ordinary income

2,300 Millions of yen

Profit attributable to owners of the parent

1,500 Millions of yen

What the company explained in this material

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

Increase in cloud services revenue277 Millions of yen
Increase in GPU infrastructure services revenue3,354 Millions of yen
Decrease in physical infrastructure services revenue-93 Millions of yen
Increase in revenue from other services103 Millions of yen
Increase in server maintenance and other costs-251 Millions of yen
Increase in depreciation and lease expenses related to GPU investment-1,365 Millions of yen
Increase in investment in human resources under the growth strategy-184 Millions of yen
Increase in taxes and dues-71 Millions of yen
Increase in cost of services for sale and other costs-52 Millions of yen
Increase in electricity costs-47 Millions of yen
Other16 Millions of yen

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

Expansion in generative AI demand, high GPU utilization, lower-than-expected electricity costs, and capitalization of part of the Government Cloud development costs, among other factors. Numerical assumptions: not disclosed

New initiatives

Decision to invest in NVIDIA's latest GPU, Rubin
Development of generative AI services centered on Sakura ONE
Connectivity demonstration between Ishikari and Tokyo with Equinix Japan and NTT East
Validation with Acompany of confidential-data AI processing on a domestic GPU infrastructure platform
Renewal of the partner network
Launch of an internal data integration and analytics platform project

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

EBITDA4,389 Millions of yen
Year on year against the same period last year+264.2%
ARR15,579 Millions of yen
Year on year against the same period last year+8.9%

Segment results

Cloud Services

Net Sales

3,975 Millions of yen

Cloud infrastructure

Net Sales

2,810 Millions of yen

Cloud applications

Net Sales

1,164 Millions of yen

GPU infrastructure services

Net Sales

4,718 Millions of yen+245.9%

Physical infrastructure services

Net Sales

708 Millions of yen

Other Services

Net Sales

1,732 Millions of yen

Financial targets

Historical trends for ROE, the equity ratio and other measures are presented, but target values are not disclosed

Market Size / Share

22nd globally in HPCG, 63rd globally in TOP500

Number of employees

Number of Employees1,171 People

Change during the period36 People

Capital expenditures

¥198 100 million full-year budget for the fiscal year ending March 2027

Annual Dividend

¥5.5 per share

Contents of this document
Item	Details
Document type	Financial Results Presentation
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	11,134 Millions of yen (YoY +48.6%)
Operating profit	1,230 Millions of yen
Ordinary income	1,258 Millions of yen
Net income	855 Millions of yen
Gross Profit Margin	Rate 30.7 / Year-on-year change (points) 10.1
Operating profit margin	Rate 11.1 / Year-on-year change (points) 17.2
Selling, general and administrative expenses	2,190 Millions of yen
Results for the three months of the current quarter	Net Sales 11,134 Millions of yen / Operating profit 1,230 Millions of yen / Ordinary income 1,258 Millions of yen / Profit attributable to owners of parent for the quarter 855 Millions of yen
Full-year earnings forecast	Net Sales 45,500 Millions of yen / Operating profit 2,500 Millions of yen / Ordinary income 2,300 Millions of yen / Profit attributable to owners of the parent 1,500 Millions of yen
Segment results	Cloud Services Net Sales 3,975 Millions of yen / Cloud infrastructure Net Sales 2,810 Millions of yen / Cloud applications Net Sales 1,164 Millions of yen / GPU infrastructure services Net Sales 4,718 Millions of yen (YoY +245.9%) / Physical infrastructure services Net Sales 708 Millions of yen / Other Services Net Sales 1,732 Millions of yen
Breakdown of Factors Affecting the Change	Factors Increase in cloud services revenue / Amount 277 Millions of yen, Factors Increase in GPU infrastructure services revenue / Amount 3,354 Millions of yen, Factors Decrease in physical infrastructure services revenue / Amount -93 Millions of yen, Factors Increase in revenue from other services / Amount 103 Millions of yen, Factors Increase in server maintenance and other costs / Amount -251 Millions of yen, Factors Increase in depreciation and lease expenses related to GPU investment / Amount -1,365 Millions of yen, Factors Increase in investment in human resources under the growth strategy / Amount -184 Millions of yen, Factors Increase in taxes and dues / Amount -71 Millions of yen, Factors Increase in cost of services for sale and other costs / Amount -52 Millions of yen, Factors Increase in electricity costs / Amount -47 Millions of yen, Factors Other / Amount 16 Millions of yen
Key KPIs	Indicator name EBITDA / Value 4,389 Millions of yen / Year on year against the same period last year 264.2 Millions of yen, Indicator name ARR / Value 15,579 Millions of yen / Year on year against the same period last year 8.9 Millions of yen
Number of employees	Number of Employees 1,171 People / Change during the period 36 People
Assumptions Underlying the Business Outlook	Expansion in generative AI demand, high GPU utilization, lower-than-expected electricity costs, and capitalization of part of the Government Cloud development costs, among other factors. Numerical assumptions: not disclosed
Financial targets	Historical trends for ROE, the equity ratio and other measures are presented, but target values are not disclosed
Annual Dividend	¥5.5 per share
Capital expenditures	¥198 100 million (full-year budget for the fiscal year ending March 2027)
Market Size / Share	22nd globally in HPCG, 63rd globally in TOP500
New initiatives	Decision to invest in NVIDIA's latest GPU, Rubin, Development of generative AI services centered on Sakura ONE, Connectivity demonstration between Ishikari and Tokyo with Equinix Japan and NTT East, Validation with Acompany of confidential-data AI processing on a domestic GPU infrastructure platform, Renewal of the partner network, Launch of an internal data integration and analytics platform project

Items this document does not state (10)

Progress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsPayout ratioAcquisition of treasury sharesOrders 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.

Performance was strong due to high utilization of GPUs added in the previous fiscal year and existing GPUs, growing demand for generative AI, the early launch of projects, and improved profitability resulting from higher GPU utilization. The upward revision to the full-year forecasts reflects continued GPU demand, the earlier-than-planned delivery of projects, strengthened sales and service delivery capabilities, lower-than-expected electricity costs, and the capitalization of part of the development costs for the Government Cloud.

How to read this page

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