Stem Inc announced its consolidated financial results for the third quarter of the fiscal year ending in October 2024 (November 23 - July 24). Revenue decreased by 1.1% year-on-year to 3.278 billion yen, operating profit decreased by 10.5% to 0.519 billion yen, ordinary profit decreased by 10.6% to 0.519 billion yen, and net profit attributable to the parent company shareholders decreased by 11.4% to 0.344 billion yen.

In the School Solutions business, package introductions of 'Campus Plan.NET Framework,' 'Campus Plan for Azure,' and the next-generation comprehensive school information system 'Campus Plan Smart' proceeded as planned. However, the acquisition of additional customization projects did not progress as expected, falling below the planned targets.

In the Wellness Solutions business, which deploys the operation support system 'Hello' series for membership facilities and audience facilities with ticketing operations, although there were fewer existing large-scale user projects than usual, a large number of cloud-based membership management and membership fee collection systems 'Smart Hello' were delivered to small fitness facilities, membership fee-based schools, etc. The cloud-based ticket management system 'Smart Hello Ticket' also saw an increase in orders, and deliveries to clients, including large-scale facilities, progressed.

In the Public Education Solutions business providing the school administrative support system 'School Engine' for public schools, services are being provided to prefectural public high schools, multiple large municipalities, and many public elementary and middle schools. Even in the cumulative period of this quarter, the online application system was smoothly operational, and the operation launch of multiple large-scale projects encompassing prefectural regions scheduled for full operation in April 2024 made progress, accumulating achievements for the future. Multiple large-scale projects were also smoothly awarded, with business preparations for the following fiscal year progressing simultaneously.

In the Public Accounting Solutions business for public entities, the 'PPP (Triple P) Ver.5 New Unified Standard Compatible Edition,' which became the de facto standard for public accounting, holds an overwhelming share beyond the majority of local governments nationwide, recording stable stock income in the cumulative period of this quarter. In addition to the 'Common Financial Accounting System' for local public entities, efforts to introduce new products such as the 'Public Property Management System,' supporting property management operations for local public entities, to multiple organizations are bearing fruit.

In the Software Engineering business providing 'Regulation Management System' and 'Contract Creation and Management System' as compliance and governance support software, highly functional and cost-effective software has been well received in the market, achieving business growth every period. Even in the cumulative period of this quarter, the introduction of the same solutions to many private companies, school corporations, etc., has progressed.

In Think Inc, which operates business for insurance pharmacies, stable maintenance support income has been secured, and progress has been made in selling optional online qualification verification for medical assistance.

In Nakamura Bokujo, which conducts entrusted development and consulting of software utilizing AI, efforts are being made in AI talent development and consulting, including for large enterprises. The company is also progressing in developing AI features for its own package software, along with developing AI talents.

For the full-year consolidated performance forecast for the fiscal year ending October 2024, the revenue is expected to increase by 3.2% to 488.6 billion yen compared to the previous period, operating profit is expected to increase by 2.9% to 0.94 billion yen, ordinary profit is expected to increase by 2.6% to 0.938 billion yen, and the net income attributable to the parent company's shareholders is expected to increase by 0.1% to 0.633 billion yen, consistent with the initial plan.