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Presentation materials for financial results4414FLECT Co.,Ltd.Information and Communications, Services and Others

Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027

First-quarter revenue reached a record high, increasing 22.8% year on year. However, operating income and net income declined due to investments in personnel, AI utilization and the ID package business, as well as the temporary addition of resources to certain projects. For the full year, the Company plans for revenue of ¥10.4 billion, operating income of ¥1.247 billion and net income of ¥751 million.

Worth reading
83Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
2221
¥ million
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending March 20276 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,221 million+22.8%
Operating profit¥64 million-45.3%
Net income¥37 million-47.3%
Gross Profit Margin42.5 %
Operating profit margin2.9 %
Selling, general and administrative expenses¥879 million
Results for the three months of the current quarter
Net Sales
¥2,221 million
Gross profit
¥943 million
Operating profit
¥64 million
Net income
¥37 million
Selling, general and administrative expenses
¥879 million
Full-year earnings forecast
Net Sales
¥10,400 million
Operating profit
¥1,247 million
Net income
¥751 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 Sales21.4
Operating profit5.2
What the company explained in this material
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
First-half and second-half composition of revenue46.6%：53.4%
First-half and second-half composition of operating income36.1%：63.9%
New initiatives
  • Development contract for the Ministry of Health, Labour and Welfare's FY2026 EMIS project
  • Joint presentation with Intermestic Inc. on an Agentforce implementation case study
  • Support for the renewal of NANKAI Group's authentication infrastructure
  • Participation in the Salesforce Forward Deployed Engineering Partner Network
  • Offering an ID infrastructure implementation package using Auth0
Key KPIsA metric the company considers important as a management benchmark.
  • Quarterly number of contracted major corporate customers62 companies
    Year on year against the same period last year+5 companies
  • Number of enterprise customers generating quarterly revenue of at least ¥50 million14 companies
    Year on year against the same period last year+5 companies
  • Increase in quarterly revenue from these customer groups¥400 million
    Year on year against the same period last year+¥400 million
  • Quarterly revenue growth (QoQ)-2.7 %
  • Number of people obtaining multi-cloud and other certifications1,927 People
Medium-term management plan targets
Net Sales
¥10,400 million
Target fiscal yearFiscal year ending March 2027
Revenue exceeding ¥10 billionFiscal year ending March 2027
Financial targets
Equity ratio
Actual results64.9 %
Number of employees
Number of Employees456 people
Year on year against the same period last year+54 people
Quarter-on-quarter change+41 people
Hiring planPlans to reach 474 employees as of 31 March 2027, a net increase of 59
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥2,221 million (YoY +22.8%)
Operating profit¥64 million (YoY -45.3%)
Net income¥37 million (YoY -47.3%)
Gross Profit Margin42.5 %
Operating profit margin2.9 %
Selling, general and administrative expenses¥879 million
Results for the three months of the current quarterNet Sales ¥2,221 million / Gross profit ¥943 million / Operating profit ¥64 million / Net income ¥37 million / Selling, general and administrative expenses ¥879 million
Full-year earnings forecastNet Sales ¥10,400 million / Operating profit ¥1,247 million / Net income ¥751 million
Progress against full-year forecastNet Sales 21.4 / Operating profit 5.2
Key KPIsIndicator name Quarterly number of contracted major corporate customers / Value 62 companies / Year on year against the same period last year +5 companies, Indicator name Number of enterprise customers generating quarterly revenue of at least ¥50 million / Value 14 companies / Year on year against the same period last year +5 companies, Indicator name Increase in quarterly revenue from these customer groups / Value ¥400 million / Year on year against the same period last year +¥400 million, Indicator name Quarterly revenue growth (QoQ) / Value -2.7 % / Year on year against the same period last year Not disclosed, Indicator name Number of people obtaining multi-cloud and other certifications / Value 1,927 People / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 456 people / Year on year against the same period last year +54 people / Quarter-on-quarter change +41 people / Hiring plan Plans to reach 474 employees as of 31 March 2027, a net increase of 59
Assumptions Underlying the Business OutlookFirst-half and second-half composition of revenue 46.6%：53.4% / First-half and second-half composition of operating income 36.1%：63.9%
Medium-term management plan targetsNet Sales ¥10,400 million / Revenue exceeding ¥10 billion Fiscal year ending March 2027
Financial targetsEquity ratio Actual results 64.9 %
New initiativesDevelopment contract for the Ministry of Health, Labour and Welfare's FY2026 EMIS project, Joint presentation with Intermestic Inc. on an Agentforce implementation case study, Support for the renewal of NANKAI Group's authentication infrastructure, Participation in the Salesforce Forward Deployed Engineering Partner Network, Offering an ID infrastructure implementation package using Auth0
Items this document does not state (14)
Ordinary incomeSelf-assessment against the planSegment resultsBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition 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.

Providing a comprehensive service combining data connectivity, ID integration, data integration platform development and AI led to expanded business with existing customers. On the profit side, investments in personnel, AI utilization and the ID package business aimed at sustainable future growth, together with the temporary addition of resources to certain projects, lowered the gross profit margin.

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.
Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | FLECT Co.,Ltd. (4414) timely disclosure | Komori