Strong start in Q1, but acceleration from Q2 onward is needed to meet the full-year forecast

FY2027-Q1 revenue was ¥665.678 million and operating profit was ¥74.983 million, a substantial improvement from revenue of ¥563.608 million and operating profit of ¥25.992 million in the same period of the previous year. Year on year, revenue increased 18.1%, operating profit 188.5%, ordinary profit 185.0% and net profit for the quarter 151.6%, with the company remaining profitable from operating profit through net income.

The full-year forecasts are ¥3,113 million in revenue and ¥412 million in operating profit, resulting in progress rates of 21.4% for revenue and 18.2% for operating profit at the end of Q1. The amounts remaining against the full-year forecasts after Q1 are ¥2,447.322 million in revenue and ¥337.017 million in operating profit, meaning that 81.8% of the full-year operating profit forecast must be generated over the remaining 9 months. The company considers progress broadly in line with expectations, but has not disclosed its first-half earnings forecast or quarterly plan figures.

Using half of the full-year forecast as a simple benchmark for the first half, FY2027-H1 would require revenue of ¥1,556.5 million and operating profit of ¥206 million. As this is not an official first-half target provided by the company, it must be assessed in light of seasonality and the timing of customer acceptance, but it provides a useful benchmark for evaluating how much revenue and operating profit are accumulated in Q2 alone.

The factors behind the Q1 revenue increase were multiple projects for major customers, core system renewals, development revenue related to the construction of new services, and monthly revenue after service launch. The company also explained that some large projects were not recognized in Q1 and are scheduled for recognition in Q2. Accordingly, the next earnings release needs to be assessed not only for any change to the full-year forecast, but also for the amount of Q2 project revenue recognized, progress in customer acceptance, and the breakdown between development revenue and monthly revenue.