Broadleaf ＜3673＞ announced consolidated financial results (IFRS) for the 1st quarter (24/1/03) of the fiscal year ending 2024/12 on the 9th. Sales revenue increased 10.6% from the same period last year to 4,014 billion yen, operating loss was 109 million yen (loss of 536 million yen in the same period last year), loss before income tax was 0.42 billion yen (loss of 541 million yen), and quarterly loss attributable to owners of parent companies was 0.3 billion yen (loss of 405 million yen).

The Group is promoting “cloud penetration” and “service expansion,” which are growth strategies of the medium-term management plan (2022 - 2028). In addition to sequentially switching customers belonging to the mobility industry that use package systems to cloud services, they are actively acquiring new customers. Also, in order to expand the industries and customer scale to which cloud services are applied, service menus have been enhanced and processing performance has been improved to improve added value for customers.

In the first quarter of this year, cloud service sales increased 79.3% from the same period last year to 1,676 billion yen due to an increase in the number of customers with monthly subscription contracts, starting with the cloud software “.c series.” Also, while package software sales for the non-mobility industry are going well, customers in the mobility industry that use packaged software are sequentially switching to the cloud software “.c series” as the expiration of the usage period. As a result, sales of ancillary services related to package software declined, and package system sales decreased 13.2% from the same period to 2.337 billion yen. Note that per customer, cloud service sales are larger than packaged software ancillary service sales, so switching to cloud software “.c series” is a factor in sales growth. Furthermore, it is expected that this increase in sales will continue until 2028, when the switching of all customers ends. On the cost side, while development to expand the functions and improve the performance of cloud software is continuing, the cost related to management work has been reduced mainly by promoting the efficiency of business processes.

Regarding the consolidated earnings forecast for the full year of 2024/12, the initial plan for sales revenue is 17.60 billion yen, up 14.4% from the previous fiscal year, operating income is 50 billion yen, profit before income taxes is 50 billion yen, and net income attributable to owners of the parent company is 0.4 billion yen has been left unchanged.