■ Performance trends
Toyokumo<4058>In the first quarter of the fiscal year ending December 2022, net sales increased 42.1% year-on-year * to 439 million yen, operating income increased 43.3% year-on-year to 208 million yen, and ordinary income increased 43.3% year-on-year. The percentage increased to 208 million yen, and the quarterly net income increased by 41.1% to 142 million yen. Regarding sales, both the safety confirmation service and the kintone cooperation service performed well. The significant increase in operating profit was due to the fact that the growth in advertising expenses was kept lower than the company expected.
* The company has applied “Accounting Standards for Revenue Recognition” (Corporate Accounting Standard No. 29, March 31, 2020) from the beginning of the first quarter of the fiscal year ending December 2022. The year-on-year comparison is compared with 309 million yen, which is the new standard for sales in the first quarter of the fiscal year ending December 2021.
Sales in the first quarter of FY12 / 2022 increased 42.1% year-on-year (compared to the same period of the previous year based on the new revenue standard) to 439 million yen, and high growth continues. In terms of sales by service, safety confirmation service increased 34.4% year on year to 176 million yen, and kintone cooperation service increased 47.2% year on year to 262 million yen, both of which are performing well. Gross profit increased 44.7% year on year to 427 million yen, and the gross profit margin remained at a high level of 97.4% (95.5% in the same period of the previous year). The reason why the cost of sales is lower than the same period of the previous year is that the purchase cost related to the kintone cooperation service has decreased due to the application of the revenue recognition standard. Operating profit increased 43.3% year on year to 208 million yen, and the operating profit margin was 47.5% (46.9% in the same period of the previous year). Although the operating profit margin declined due to the increase in personnel expenses and advertising expenses, the margin of increase in profits is larger than the increase in sales, so we consider it to be a good financial result.
The company’s advertising activity budget for the fiscal year ending December 2022 is 500 million yen (actual result for the previous fiscal year was 368 million yen). The weight of each quarter is planned to be 1st quarter: 2nd quarter: 3rd quarter: 4th quarter = 20%: 20%: 30%: 30%. The actual amount of advertising expenses in the first quarter was 60 million yen, and the budget digestion rate was only 12%. This is a result of considering the influence of Russia’s invasion of Ukraine in addition to the fact that the securing of advertising space did not proceed due to the influence of the Winter Olympics.
The indicators that the company attaches great importance to have performed steadily. The number of paid contracts at the end of the first quarter of December 2022 was 9,522 (up 611 from the end of December 2021). The number of paid contracts by service was 2,831 for the safety confirmation service (up 134) and 6,721 for the kintone-linked service (477), both of which were favorable. The number of simultaneous purchases of kintone-linked services has continued to rise to 1.60 contracts / company, and it is estimated that the number of cases of purchasing multiple services at the same time is increasing. The churn rate was 0.68%, and although some of the kintone cooperation services were affected by the termination of spot projects, the low level was maintained. The simple average LTV for all services was 22.5 billion yen (23.1 billion yen), which was affected by the end of the project. The LTV of individual services is 43.7 billion yen (41.4 billion yen), and the steadily expanding safety confirmation service has been increasing.
The progress rate for the first quarter of December 2022 against the full-year company plan for the fiscal year ending December 2022 was 23.2% for sales, 39.4% for operating income, 39.4% for ordinary income, and 39.6% for net income. The progress rate is good. Since 99.9% of the company’s sales are stock sales, sales are expected to continue to rise. The progress rate of sales in the first quarter is 23.2%, but we do not think that pessimism is necessary.
The company announces breaking monthly sales around the 15th of every month. Cumulative monthly sales for the fiscal year ending December 2021 have continued to be in the 140% range compared to the same month of the previous year, and are steadily accumulating. In June 2021, monthly sales increased significantly because a short-term use option to improve system performance was included (about 8 million yen). It should be taken into consideration that the option will be dropped in the monthly sales of June 2022.
(Written by FISCO Visiting Analyst Kaname Fujita)