SORACOM reported revenue of ¥3,384 million for the first quarter of the fiscal year ending March 2027, up 52.1% year on year, driven by growing overseas penetration and expanding recurring revenue. For the full year, it is targeting revenue of ¥50,000 million for the fiscal year ending March 2031.
In its consolidated results for the first quarter of the fiscal year ending March 2027, SORACOM reported revenue of ¥3,384 million, a substantial 52.1% increase from the same quarter of the previous year. Operating profit was ¥215 million, up 69.3% year on year, while recurring revenue, which generates continuing income, was ¥2,742 million, up 48.6%. Global revenue increased 47.0% year on year, with penetration of overseas markets driving results. Recurring revenue accounted for more than half of total revenue, at 50.5%.
The decline in gross profit margin to 47.0% from 55.0% in the same quarter of the previous year was due to the one-time impact of consolidating ミソラコネクト. The margin is expected to recover to 50.3% for the full year. SORACOM expects synergies with ミソラコネクト, which operates the spun-off MVNO business, while using data analytics and AI capabilities to increase added value and differentiate itself from competitors.
SORACOM continues to strengthen its overseas operations and expand its customer base, while working to acquire new customers. As it develops new customer relationships, including through the adoption of services from SPAN for smart distribution boards, it is expanding peripheral services for IoT data communications and establishing a framework for expanding sales without significantly strengthening its local sales structure.
SORACOM plans to target revenue of ¥50,000 million for the fiscal year ending March 2031 through both organic and inorganic growth. Recurring revenue is expected to account for 70–80%, and inorganic growth for 20–30%. Against the backdrop of overseas growth potential and expanding recurring revenue, the investment rating is initiated at Overweight.