Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027 | SAKURA internet Inc. (3778) timely disclosure

Worth reading

65In focus

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

1600

¥ million (increase in full-year operating profit forecast)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationSecond 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 Sales22,827 Millions of yen+46.0%

Operating profit2,963 Millions of yen

Ordinary income3,013 Millions of yen

Net income1,903 Millions of yen

Selling, general and administrative expenses4,349 Millions of yen

Gross Profit Margin

Rate32

Year-on-year change (points)11.9

Operating profit margin

Rate13

Year-on-year change (points)18.9

Results for the three months of the current quarter

Net Sales

11,692 Millions of yen

Operating profit

1,732 Millions of yen

Ordinary income

1,755 Millions of yen

Net income

1,047 Millions of yen

EBITDA

5,059 Millions of yen

Full-year earnings forecast

Net Sales

46,600 Millions of yen

Operating profit

4,100 Millions of yen

Ordinary income

3,900 Millions of yen

Profit attributable to owners of the parent

2,550 Millions of yen

What the company explained in this material

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

The first half came in above the revised forecast announced in July.

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

Year-on-year operating profit

Increase in cloud services revenue565

Increase in GPU infrastructure services revenue7,303

Decrease in physical infrastructure services revenue-214

Lower revenue from other services-458

Lower cost of services sold, etc.461

Increase in server maintenance and other costs-329

Increase in depreciation and lease expenses related to GPU investment-2,670

Increase in human resources investment-275

Increase in electricity costs-162

Increase in taxes and dues-143

Other-195

First-half operating profit vs. revised forecast

Increase in sales327

Reduction in advertising expenses162

Decrease in human resources investment expenses125

Decrease in other expenses149

New initiatives

Launch of Sakura's AI Engine Private Edition, a dedicated generative AI platform for corporate customers
Preferred Networks and NICT began efforts toward the social implementation of a platform for the active evaluation of generative AI
Participation in the establishment of the Ishikari Data Center Consortium
Strengthening mid-career hiring and marketing initiatives, including events and web advertising, in the second half

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

ARR15,966 Millions of yen
Year on year against the same period last year+8.8%
GPU infrastructure services revenue5,406 Millions of yen
Year on year against the same period last year+271.1%
Number of partner companies80 companies
EBITDA5,059 Millions of yen
Year on year against the same period last year+245.6%

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

GPU utilization approached full capacity, while pricing improved (specific utilization and pricing figures: Not disclosed)

Segment results

Cloud Services

Q2 revenue

4,096 Millions of yen

Cloud infrastructure

Q2 revenue

2,927 Millions of yen

Year on year against the same period last year+11.6%

Cloud applications

Q2 revenue

1,168 Millions of yen

GPU infrastructure services

Q2 revenue

5,406 Millions of yen

Year on year against the same period last year+271.1%

Physical infrastructure services

Q2 revenue

654 Millions of yen

Other Services

Q2 revenue

1,535 Millions of yen

Market Size / Share

Japan public cloud market forecastCAGR of 17.6% from 2025 to 2030

Japan AI systems market forecastCAGR of 25.6% from 2024 to 2029

Number of employees

Number of Employees

Consolidated, as of 30 September 2026

End of period1,126 people

Change during the period-9

Breakdown

The Company12

Group Companies-21

Hiring planPlans to hire approximately 70 mid-career employees in the second half

Capital expenditures

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

Annual Dividend

Annual dividend per share8 Yen

Breakdown

Interim and commemorative dividend2.5

Year-end dividend5.5

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	22,827 Millions of yen (YoY +46.0%)
Operating profit	2,963 Millions of yen
Ordinary income	3,013 Millions of yen
Net income	1,903 Millions of yen
Gross Profit Margin	Rate 32 / Year-on-year change (points) 11.9
Operating profit margin	Rate 13 / Year-on-year change (points) 18.9
Selling, general and administrative expenses	4,349 Millions of yen
Results for the three months of the current quarter	Net Sales 11,692 Millions of yen / Operating profit 1,732 Millions of yen / Ordinary income 1,755 Millions of yen / Net income 1,047 Millions of yen / EBITDA 5,059 Millions of yen
Full-year earnings forecast	Net Sales 46,600 Millions of yen / Operating profit 4,100 Millions of yen / Ordinary income 3,900 Millions of yen / Profit attributable to owners of the parent 2,550 Millions of yen
Self-assessment against the plan	The first half came in above the revised forecast announced in July.
Segment results	Cloud Services Q2 revenue 4,096 Millions of yen / Year on year against the same period last year Not disclosed / Cloud infrastructure Q2 revenue 2,927 Millions of yen / Year on year against the same period last year +11.6% / Cloud applications Q2 revenue 1,168 Millions of yen / Year on year against the same period last year Not disclosed / GPU infrastructure services Q2 revenue 5,406 Millions of yen / Year on year against the same period last year +271.1% / Physical infrastructure services Q2 revenue 654 Millions of yen / Year on year against the same period last year Not disclosed / Other Services Q2 revenue 1,535 Millions of yen / Year on year against the same period last year Not disclosed
Breakdown of Factors Affecting the Change	Year-on-year operating profit Increase in cloud services revenue 565 / Increase in GPU infrastructure services revenue 7,303 / Decrease in physical infrastructure services revenue -214 / Lower revenue from other services -458 / Lower cost of services sold, etc. 461 / Increase in server maintenance and other costs -329 / Increase in depreciation and lease expenses related to GPU investment -2,670 / Increase in human resources investment -275 / Increase in electricity costs -162 / Increase in taxes and dues -143 / Other -195 / First-half operating profit vs. revised forecast Increase in sales 327 / Reduction in advertising expenses 162 / Decrease in human resources investment expenses 125 / Decrease in other expenses 149
Key KPIs	ARR 15,966 Millions of yen, GPU infrastructure services revenue 5,406 Millions of yen, Number of partner companies 80 companies, EBITDA 5,059 Millions of yen
Unit price and quantity metrics	GPU utilization approached full capacity, while pricing improved (specific utilization and pricing figures: Not disclosed)
Number of employees	Number of Employees End of period 1,126 people / Subject Consolidated, as of 30 September 2026 / Change during the period -9 / Breakdown The Company 12 / Group Companies -21 / Hiring plan Plans to hire approximately 70 mid-career employees in the second half
Annual Dividend	Annual dividend per share 8 Yen / Breakdown Interim and commemorative dividend 2.5 / Year-end dividend 5.5
Capital expenditures	¥198 100 million (full-year budget for the fiscal year ending March 2027)
Market Size / Share	Japan public cloud market forecast CAGR of 17.6% from 2025 to 2030 / Japan AI systems market forecast CAGR of 25.6% from 2024 to 2029
New initiatives	Launch of Sakura's AI Engine Private Edition, a dedicated generative AI platform for corporate customers, Preferred Networks and NICT began efforts toward the social implementation of a platform for the active evaluation of generative AI, Participation in the establishment of the Ishikari Data Center Consortium, Strengthening mid-career hiring and marketing initiatives, including events and web advertising, in the second half

Items this document does not state (10)

Progress against full-year forecastNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial 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.

High GPU utilization, improved pricing, and expected large-project wins by group companies drove revenue and profit growth. In the first half, expenses declined after some hiring activities and advertising and event initiatives were reviewed to prioritize customer support for the unauthorized access incident. The second half reflects growth investments and costs specific to the current fiscal year.

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.

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