Overview of Results for the First Quarter of the Fiscal Year Ending March 2027 (Earnings Presentation Materials) | SOCIALWIRE CO.,LTD. (3929) timely disclosure

Worth reading

76Important

Scored from 5 of 6 sections

Direction

Improvement

Direction inferred from the company’s description.

Scale

Year-on-year revenue growth (%)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings 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 Sales¥971 million+39.0%

Operating profit¥33 million+96.0%

Ordinary income¥18 million-25.0%

Net income¥21 million+1.0%

Operating profit margin3.5% (+1.1 percentage points year on year)

Results for the three months of the current quarterRevenue of ¥971 million, operating profit of ¥33 million, ordinary profit of ¥18 million, and net income of ¥21 million. All figures are shown as standalone results for Q1.

Full-year earnings forecast

Net Sales

¥4,412 million

Operating profit

¥425 million

Ordinary income

¥401 million

Net income for the current fiscal year

¥327 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 Sales22%

Operating profit8%

Ordinary income5%

Net income for the current fiscal year6%

What the company explained in this material

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

Progressing as planned. Full-year earnings forecasts unchanged.

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

Gross profit+¥86 million
Personnel expenses, etc.-¥23 million
Advertising expenses-¥14 million
Rent-JPY 6 million
Amortization and depreciation (intangible and tangible assets)-JPY 5 million
Amortization of goodwill-¥18 million
Other SG&A expenses-¥4 million
Year-on-year change in operating profit+¥16 million

New initiatives

Making SEIRYO a wholly owned subsidiary and entering performance-based advertising operations for TikTok and short-form videos
Consolidation and Relocation of Headquarters and Group Sites
Use of AI, operational efficiency improvements, and organizational optimization
Expansion into purchasing and conversion support

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

EBITDA¥98 million
Year on year against the same period last year+109.0%
Influencer PR revenue mix50 %
Influencer PR client companies329 companies
Year on year against the same period last yearPrior-year Q1: 90 companies
Press release distribution client companies2,562 companies
Year on year against the same period last yearPrior-year Q1: 3,254 companies
Media listening client companies1,333 companies
Year on year against the same period last yearPrior-year period: 1,156 companies
RISK EYES MRR¥31.8 million
Year on year against the same period last year+11.4%
Churn rate0.5% or less
Annualized gross profit per employee¥829 10,000
Year on year against the same period last year+25% vs. the fiscal year ended March 2024

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

Number of customers329 companies
ServiceInfluencer PR
Prior-year period90
Number of customers2,562 companies
ServicePress release distribution
Prior-year period3,254
Distribution fee (Q1 average)¥41.8 thousand
ServicePress release distribution
Year on year against the same period last year+13.8%
Number of customers1,333 companies
ServiceMedia listening
Prior-year period1,156

Medium-term management plan targets

Fiscal year ending March 2028

Net Sales¥5 billion

Operating profit¥800 million

Financial targets

Actual equity ratio of 46%. Financial target not disclosed.

Market Size / Share

Social media marketing market¥12,038 million
Influencer marketing market, FY24¥860 million
Influencer marketing market, FY27¥1,305 million
The Company's target market (fiscal year ending March 2027)¥214 million

Number of stores and locations

The head office and group offices are scheduled to be consolidated and relocated. The number of locations at period-end and the number of openings and closures during the period are not disclosed.

Number of employees

Average actual headcount of 262 employees in Q1 of the fiscal year ending March 2027. The hiring plan for the period is not disclosed.

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	¥971 million (YoY +39.0%)
Operating profit	¥33 million (YoY +96.0%)
Ordinary income	¥18 million (YoY -25.0%)
Net income	¥21 million (YoY +1.0%)
Operating profit margin	3.5% (+1.1 percentage points year on year)
Results for the three months of the current quarter	Revenue of ¥971 million, operating profit of ¥33 million, ordinary profit of ¥18 million, and net income of ¥21 million. All figures are shown as standalone results for Q1.
Full-year earnings forecast	Net Sales ¥4,412 million / Operating profit ¥425 million / Ordinary income ¥401 million / Net income for the current fiscal year ¥327 million
Progress against full-year forecast	Net Sales 22% / Operating profit 8% / Ordinary income 5% / Net income for the current fiscal year 6%
Self-assessment against the plan	Progressing as planned. Full-year earnings forecasts unchanged.
Breakdown of Factors Affecting the Change	Factors Gross profit / Amount +¥86 million, Factors Personnel expenses, etc. / Amount -¥23 million, Factors Advertising expenses / Amount -¥14 million, Factors Rent / Amount -JPY 6 million, Factors Amortization and depreciation (intangible and tangible assets) / Amount -JPY 5 million, Factors Amortization of goodwill / Amount -¥18 million, Factors Other SG&A expenses / Amount -¥4 million, Factors Year-on-year change in operating profit / Amount +¥16 million
Key KPIs	Indicator name EBITDA / Value ¥98 million / Year on year against the same period last year ¥109 million, Indicator name Influencer PR revenue mix / Value 50 % / Year on year against the same period last year Not disclosed, Indicator name Influencer PR client companies / Value 329 companies / Year on year against the same period last year Prior-year Q1: 90 companies, Indicator name Press release distribution client companies / Value 2,562 companies / Year on year against the same period last year Prior-year Q1: 3,254 companies, Indicator name Media listening client companies / Value 1,333 companies / Year on year against the same period last year Prior-year period: 1,156 companies, Indicator name RISK EYES MRR / Value ¥31.8 million / Year on year against the same period last year ¥11.4 million, Indicator name Churn rate / Value 0.5% or less / Year on year against the same period last year Not disclosed, Indicator name Annualized gross profit per employee / Value ¥829 10,000 / Year on year against the same period last year +25% vs. the fiscal year ended March 2024
Unit price and quantity metrics	Service Influencer PR / Indicator Number of customers / Value 329 companies / Prior-year period 90 companies, Service Press release distribution / Indicator Number of customers / Value 2,562 companies / Prior-year period 3,254 companies, Service Press release distribution / Indicator Distribution fee (Q1 average) / Value ¥41.8 thousand / Year on year against the same period last year ¥13.8 thousand, Service Media listening / Indicator Number of customers / Value 1,333 companies / Prior-year period 1,156 companies
Number of stores and locations	The head office and group offices are scheduled to be consolidated and relocated. The number of locations at period-end and the number of openings and closures during the period are not disclosed.
Number of employees	Average actual headcount of 262 employees in Q1 of the fiscal year ending March 2027. The hiring plan for the period is not disclosed.
Medium-term management plan targets	Subject Fiscal year ending March 2028 / Net Sales ¥5 billion / Operating profit ¥800 million
Financial targets	Actual equity ratio of 46%. Financial target not disclosed.
Market Size / Share	Item Social media marketing market / Amount ¥12,038 million, Item Influencer marketing market, FY24 / Amount ¥860 million, Item Influencer marketing market, FY27 / Amount ¥1,305 million, Item The Company's target market (fiscal year ending March 2027) / Amount ¥214 million
New initiatives	Making SEIRYO a wholly owned subsidiary and entering performance-based advertising operations for TikTok and short-form videos, Consolidation and Relocation of Headquarters and Group Sites, Use of AI, operational efficiency improvements, and organizational optimization, Expansion into purchasing and conversion support

Items this document does not state (11)

Gross Profit MarginSelling, general and administrative expensesSegment resultsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition 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.

Growth in influencer PR, the consolidation impact of the acquisitions of iHack and SEIRYO, and increases in the number of customers and average customer spend drove gross profit and operating profit higher. Operating profit was affected by increases in personnel expenses and amortization of goodwill at the acquired subsidiaries, but the increase in gross profit more than offset these costs.

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