OBC: First-half revenue and operating profit both reach record highs on growth in core business cloud services; full-year earnings forecast raised

At its second-quarter results briefing, OBC announced that ARR from recurring revenue had reached ¥50 billion, up 17.5% year on year. The recurring revenue ratio was 83.8%, while the deferred revenue balance was ¥36.3 billion, an increase of approximately ¥4.7 billion over the past year. Cloud ARPU was ¥619,000 and the number of cloud systems in operation was 169,000, both higher than a year earlier. These factors drove record first-half sales of ¥28.7 billion and operating profit of ¥13.6 billion.

Cloud sales rose to 66.1% of total sales. Core business cloud sales were ¥13.7 billion, up 34.9% year on year, while Bugyo Cloud Edge sales were ¥5.1 billion, up 11.2%. Sales of related products are expected to decline, while services revenue remained steady at ¥7.2 billion. SG&A expenses increased 8.1% year on year, but sales growth outpaced the increase, lifting the operating margin to 47.4%.

The first-half income statement showed sales of ¥28.7 billion, gross profit of ¥24.2 billion, a gross profit margin of 84.8%, ordinary profit of ¥14.8 billion following an increase in non-operating income, and net income of ¥10.1 billion. The full-year plan was revised upward to sales of ¥58.5 billion, operating profit of ¥27.6 billion, ordinary profit of ¥29.8 billion and net income of ¥20.4 billion.

This fiscal year, the company plans to revise Bugyo Cloud prices, applying the changes to new shipments in October and contract renewals from the end of December onward. The revision will cover slightly more than 70% of the products, with an average increase of approximately 15% expected. Expansion into the government market through ISMAP registration, together with enhanced security and AI capabilities, will be pillars of the growth strategy. The company plans to pursue global expansion through the Bugyo AI roadmap and the launch of new products.