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GMO Research & AI,Inc., The Current Fiscal Year Ordinary Profit Revised Downward to an Unexpected 40% Decrease

Wed Nov 6, 2024 3:31 pm JST Earnings

3695 GMO Research & AI,Inc. 【J-GAAP】

Earnings Report

GMO Research & AI,Inc. <3695> [TSE-G] announced its financial results after the market closed on November 6th (15:31). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending December 2024 (January to September) significantly dropped by 78.5% from the same period last year to 67 million yen.

In addition, the full-year consolidated ordinary profit has downwardly by 49.2%, from the previous forecast of 502 million yen to 255 million yen (compared to 428 million yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 40.4% decrease in profit.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit for the July to December period (second half) has downwardly by 59.7%, from the previous forecast of 414 million yen to 167 million yen (compared to 208 million yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 19.7% decrease in profit.

In the most recent three-month period, from July to September (3Q), the consolidated ordinary profit/loss turned to a loss of 21 million yen (compared to a profit of 91 million yen in the previous period). The operating profit margin drastically worsened from 8.1% in the same period last year to 0.3%.

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Actual Results

Accumulated Results 3rd Quarter
Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Progress Rate vs. First Half Announce Accounting Standards
Jan - Sep, 2022 3,771 344 430 318 195.0 93.9 Nov 7, 2022 J-GAAP
Jan - Sep, 2023 3,801 303 311 217 133.0 72.7 Nov 6, 2023 J-GAAP
Jan - Sep, 2024 3,657 73 67 58 35.8 26.3 Nov 6, 2024 J-GAAP
YoY -3.8% -75.9% -78.5% -73.3% -73.1%

Guidance Update

Second Half Update

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jul - Dec, 2024 Prev 3,281 432 414 270 165.3 114.84 Aug 6, 2024 J-GAAP
Jul - Dec, 2024 New 2,642 194 167 118 72.2 114.84 Nov 6, 2024 J-GAAP
Revision Rate -19.5% -55.1% -59.7% -56.3% -56.3%

Full Year Update

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2024 Prev 5,746 502 502 342 209.3 114.84 Feb 5, 2024 J-GAAP
Dec, 2024 New 5,107 264 255 190 116.3 114.84 Nov 6, 2024 J-GAAP
Revision Rate -11.1% -47.4% -49.2% -44.4% -44.4%

Current Period Guidance

Second Half Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jul - Dec, 2023 2,536 236 208 153 93.8 114.84 Feb 5, 2024 J-GAAP
Jul - Dec, 2024 Guidance 2,642 194 167 118 72.2 114.84 Nov 6, 2024 J-GAAP
YoY +4.2% -17.8% -19.7% -22.9% -23.0%

Current Period Guidance

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2022 5,200 419 458 356 218.4 109.14 Feb 6, 2023 J-GAAP
Dec, 2023 5,117 440 428 307 188.2 114.84 Feb 5, 2024 J-GAAP
Dec, 2024 Guidance 5,107 264 255 190 116.3 114.84 Nov 6, 2024 J-GAAP
YoY -0.2% -40.0% -40.4% -38.1% -38.2%

Quarterly Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Operating Profit Margin Announce Accounting Standards
Jul - Sep, 2023 1,220 99 91 63 38.6 8.1 Nov 6, 2023 J-GAAP
Oct - Dec, 2023 1,316 137 117 90 55.2 10.4 Feb 5, 2024 J-GAAP
Jan - Mar, 2024 1,361 119 122 92 56.5 8.7 May 8, 2024 J-GAAP
Apr - Jun, 2024 1,104 -49 -34 -20 -12.3 -4.4 Aug 6, 2024 J-GAAP
Jul - Sep, 2024 1,192 3 -21 -14 -8.7 0.3 Nov 6, 2024 J-GAAP
YoY -2.3% -97.0% － － －

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