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Presentation materials for financial results3923RAKUS Co.,Ltd.Information and Communications, Services and Others

Fiscal Year Ending March 2027 First-Quarter Financial Results Presentation

Growth in the cloud business and more efficient advertising and promotional spending absorbed the impact of the transfer of the IT staffing business, resulting in a 0.9% year-on-year increase in revenue and a 30.1% increase in operating profit. Including approximately ¥16.7 billion in extraordinary income from the transfer of the IT staffing business, quarterly net income increased significantly.

Worth reading
77Important
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
1100
Millions of yen (year-on-year increase in operating profit)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥14,210 million+0.9%
Operating profit¥4,756 million+30.1%
Net income¥14,631 million +313.6%profit attributable to owners of the parent
Gross Profit Margin81.6%
Operating profit margin33.5%
Selling, general and administrative expenses¥6,834 million
Results for the three months of the current quarter
Net Sales¥14,210 million
Operating profit¥4,756 million
EBITDA¥5,166 million
Profit attributable to owners of parent for the quarter¥14,631 million
Full-year earnings forecast
Net Sales¥59,700 million
Operating profit¥20,500 million
Ordinary income¥20,500 million
Profit attributable to owners of the parent¥25,200 million
EPS¥71.16
Dividend per share¥8.00
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
A strong start, with both revenue and operating profit exceeding the internal plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue contribution from the cloud business+¥2,144 million
  • Increase in personnel expenses-¥696 million
  • Decrease in advertising and promotional expenses+¥447 million
  • Increase in other expenses-¥466 million
  • IT staffing business excluded from consolidation-¥328 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Assumes no M&A transactions or major price revisions. Other numerical assumptions: Not disclosed
New initiatives
  • Adding AI functions to Rakuraku Jido O-tai (automated response) and Rakuraku Seisan (expense settlement)
  • Launching Rakuraku Business Card and integrating it with Rakuraku Seisan (expense settlement)
  • Making Plus Alpha Consulting Co., Ltd. an equity-method affiliate
  • Capital and business alliance with ROBOT PAYMENT INC. and OEM rollout of Rakuraku Saiken Kanri (receivables management)
  • Establishment of a CAIO (Chief AI Officer) position
  • Developing an enterprise sales organization and SOC capabilities
  • Establishment of a dedicated cross-selling organization
Key KPIsA metric the company considers important as a management benchmark.
  • ARR¥53,578 million
    Year on year against the same period last year+17.6%
  • Recurring-revenue ratio93.3%
  • Active Rakuraku Seisan customers17,482 Customers
  • Active Rakuraku Meisai customers15,304 Customers
  • Active Rakuraku Hanbai customers4,250 Customers
  • Quarterly churn rate for Rakuraku Seisan (expense settlement)1.99%
  • Quarterly churn rate for Rakuraku Meisai (electronic billing)0.68%
  • Quarterly churn rate for Rakuraku Hanbai (sales management)2.66%
Segment results
  • Cloud Business
    Net Sales¥14,210 million
    Year on year against the same period last year+17.8%
  • IT human resources business
    Net Sales¥0 million (¥2,016 million in the same period of the previous year)
    Year on year against the same period last yearExcluded from consolidation following the transfer
Medium-term management plan targets
  • TargetOrganic Cloud Business revenue CAGR of at least 15%
    Target fiscal yearFiscal year ending March 2029
  • TargetAchieve the Rule of 50
    Target fiscal yearFrom the fiscal year ending March 2028 onward
  • TargetRevenue of at least ¥30 million per full-time employee
    Target fiscal yearFiscal year ending March 2029
Financial targets
  • ROE
    TargetMaintain at 30% or more
  • Total Payout Ratio
    Target20% or higher
    Actual results11.2% as of the beginning of the fiscal year
Market Size / Share
Market size, cloud adoption rate, and the Company's market share are described qualitatively by customer size. Numerical data: Not disclosed
Number of employees
Number of Employees2,396 (consolidated employees at period-end)
Change during the periodDown 25.1% year on year, a decrease of 805 employees
Hiring planContinue increasing headcount in the cloud business
Annual Dividend
Annual Dividend¥8.00
Payout ratio
Rate11.2%
Total payout ratio11.2% as of the beginning of the fiscal year; policy of 20% or more
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥14,210 million (YoY +0.9%)
Operating profit¥4,756 million (YoY +30.1%)
Net income¥14,631 million (profit attributable to owners of the parent) (YoY +313.6%)
Gross Profit Margin81.6%
Operating profit margin33.5%
Selling, general and administrative expenses¥6,834 million
Results for the three months of the current quarterNet Sales ¥14,210 million / Operating profit ¥4,756 million / EBITDA ¥5,166 million / Profit attributable to owners of parent for the quarter ¥14,631 million
Full-year earnings forecastNet Sales ¥59,700 million / Operating profit ¥20,500 million / Ordinary income ¥20,500 million / Profit attributable to owners of the parent ¥25,200 million / EPS ¥71.16 / Dividend per share ¥8.00
Self-assessment against the planA strong start, with both revenue and operating profit exceeding the internal plan
Segment resultsSegment Cloud Business / Net Sales ¥14,210 million / Year on year against the same period last year +17.8% / Profit Not disclosed, Segment IT human resources business / Net Sales ¥0 million (¥2,016 million in the same period of the previous year) / Year on year against the same period last year Excluded from consolidation following the transfer / Profit Not disclosed
Breakdown of Factors Affecting the ChangeFactors Revenue contribution from the cloud business / Amount +¥2,144 million, Factors Increase in personnel expenses / Amount -¥696 million, Factors Decrease in advertising and promotional expenses / Amount +¥447 million, Factors Increase in other expenses / Amount -¥466 million, Factors IT staffing business excluded from consolidation / Amount -¥328 million
Key KPIsIndicator ARR / Value ¥53,578 million / Year on year against the same period last year +17.6%, Indicator Recurring-revenue ratio / Value 93.3% / Year on year against the same period last year Not disclosed, Indicator Active Rakuraku Seisan customers / Value 17,482 Customers / Year on year against the same period last year Not disclosed, Indicator Active Rakuraku Meisai customers / Value 15,304 Customers / Year on year against the same period last year Not disclosed, Indicator Active Rakuraku Hanbai customers / Value 4,250 Customers / Year on year against the same period last year Not disclosed, Indicator Quarterly churn rate for Rakuraku Seisan (expense settlement) / Value 1.99% / Year on year against the same period last year Not disclosed, Indicator Quarterly churn rate for Rakuraku Meisai (electronic billing) / Value 0.68% / Year on year against the same period last year Not disclosed, Indicator Quarterly churn rate for Rakuraku Hanbai (sales management) / Value 2.66% / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 2,396 (consolidated employees at period-end) / Change during the period Down 25.1% year on year, a decrease of 805 employees / Hiring plan Continue increasing headcount in the cloud business
Assumptions Underlying the Business OutlookAssumes no M&A transactions or major price revisions. Other numerical assumptions: Not disclosed
Medium-term management plan targetsTarget Organic Cloud Business revenue CAGR of at least 15% / Target fiscal year Fiscal year ending March 2029, Target Achieve the Rule of 50 / Target fiscal year From the fiscal year ending March 2028 onward, Target Revenue of at least ¥30 million per full-time employee / Target fiscal year Fiscal year ending March 2029
Financial targetsIndicator ROE / Target Maintain at 30% or more / Actual results Not disclosed, Indicator Total Payout Ratio / Target 20% or higher / Actual results 11.2% as of the beginning of the fiscal year
Annual DividendAnnual Dividend ¥8.00 / Interim Not disclosed / End of period Not disclosed
Payout ratioRate 11.2% / Total payout ratio 11.2% as of the beginning of the fiscal year; policy of 20% or more
Market Size / ShareMarket size, cloud adoption rate, and the Company's market share are described qualitatively by customer size. Numerical data: Not disclosed
New initiativesAdding AI functions to Rakuraku Jido O-tai (automated response) and Rakuraku Seisan (expense settlement), Launching Rakuraku Business Card and integrating it with Rakuraku Seisan (expense settlement), Making Plus Alpha Consulting Co., Ltd. an equity-method affiliate, Capital and business alliance with ROBOT PAYMENT INC. and OEM rollout of Rakuraku Saiken Kanri (receivables management), Establishment of a CAIO (Chief AI Officer) position, Developing an enterprise sales organization and SOC capabilities, Establishment of a dedicated cross-selling organization
Items this document does not state (9)
Ordinary incomeProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookAcquisition 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.

The impact of higher revenue in the cloud business, more efficient advertising and promotional spending, and lower personnel expenses absorbed the decline in profit resulting from the transfer of the IT staffing business. Quarterly net income increased because approximately ¥16.7 billion in extraordinary income from the transfer of the IT staffing business was recorded.

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Fiscal Year Ending March 2027 First-Quarter Financial Results Presentation | RAKUS Co.,Ltd. (3923) timely disclosure | Komori