Results of Operations for the Third Quarter of the Fiscal Year Ending December 31, 2021
November 12, 2021 at 03:27 am EST
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Results of Operations
for the Third Quarter of the Fiscal Year Ending December 31, 2021
1
Contents
01 Financial Overview: 3Q FY2021
02 Earnings Forecast: FY2021
03 Business Summary/Growth Strategy
04 Appendix
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01 Financial Overview: 3Q FY2021
3Q FY2021 Consolidated Results
Posted all-time high sales and record-high 3Q earnings.
Due to significant increase in profits, stock compensation expenses ¥127million recorded in 3Q, considering the expected achievement of performance conditions for stock options. Cumulative operating profit in 3Q before recording stock compensation expenses was ¥1,034 million (+121.9% YoY).
(Millions of yen)
1-3Q/FY2021
1-3Q/FY2020
% Change
3Q/FY2021
3Q/FY2020
% Change
Net Sales
11,887
8,494
39.9%
4,309
2,942
46.5%
Gross Profit
2,749
1,757
56.4%
955
613
55.6%
SG&A expenses
1,843
1,291
42.7%
730
449
62.6%
Operating Profit
906
466
94.5%
224
164
36.5%
EBITDA
1,119
549
103.7%
384
192
100.0%
EBITDA margin
9.4%
6.5%
2.9pt
8.9%
6.5%
2.4pt
Ordinary Profit
918
462
98.8%
226
162
39.3%
Profit attributable to owners
519
277
87.1%
82
98
△16.4%
parent
Reference: Profits before recording stock compensation expenses
Operating Profit
1,034
466
121.9%
352
164
114.0%
Ordinary Profit
1,046
462
126.4%
354
162
117.8%
Profit attributable to owners
647
277
133.1%
210
98
112.8%
parent
127million of stock compensation expenses are not tax deductible.
4
3Q FY2021 Segment Results
Strong growth continued in all businesses despite the COVID-19 pandemic. Cloud integration was the main reason for the rapid growth of the DX business. Digital Marketing also continued to grow, posting all-time high sales and earnings.
Segment
1-3Q/FY2021
1-3Q/FY2020
% Change
3Q/FY2021
3Q/FY2020
% Change
(Millions of yen)
Digital Transformation (DX) business
Net sales
3,017
2,452
23.0%
1,075
839
28.0%
Segment profit
330
199
65.8%
107
87
22.8%
Digital Marketing business
Net sales
8,438
5,692
48.2%
3,089
1,972
56.6%
Segment profit
1,257
742
69.3%
436
245
77.8%
Other businesses
Net sales
485
361
34.0%
167
138
21.4%
Segment profit
20
△ 9
-
△ 2
△ 7
-
Posted all-time high sales and
record-high 3Q earnings
while investment in human
resources to enhance sales and
development team
Posted all-time high sales and
earnings.
Orders from current and new customers increased steadily.
Losses from upfront investments in
new businesses were offset by earnings from Urala, an app for fortune telling chat consultations
* Beginning in 2021, some corporate expenses that were not assigned to a business segment in prior years are now assigned to a business segment by using reasonable standards. The purpose is to
show the performance of business segments more appropriately. Earnings for 3Q 2020 have been revised for consistency with this change.
* Net sales of each business segment include intersegment sales between the reportable segments.
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Disclaimer
Orchestra Holdings Inc. published this content on 12 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2021 08:26:20 UTC.
Orchestra Holdings Inc. is a Japan-based company engaged in digital marketing business and life technology business. The Company operates in three business segments. The Digital Marketing segment is involved in the provision of operational advertising services, search engine optimization (SEO) consulting services and creative services. The Life Technology segment is involved in the provision of applicationâs planning, development and operation services. The Solution segment is engaged in the development of games, tool applications, and other various Web systems.
ORCHESTRA HOLDINGS INC. 
