On the 16th, Stem Inc reported its consolidated financial results for the fiscal year ending October 2024. Revenue decreased by 2.2% year-on-year to 4.631 billion yen, operating profit decreased by 9.3% to 0.828 billion yen, ordinary profit decreased by 9.3% to 0.83 billion yen, and net income attributable to the parent company’s shareholders decreased by 12.1% to 0.555 billion yen.

During the fiscal year, sales of the core self-developed package software progressed, achieving the initial goal of a cumulative 0.01 million users. However, due to delays in acquiring additional customization projects and project timing discrepancies, flow sales, including customization revenue and sales of commodities, decreased, leading to overall performance falling below plans for both revenue and profit.

In the education solutions business, the company was able to proceed as planned with client implementations of "Campus Plan.NET Framework," "Campus Plan for Azure," and "Campus Plan Smart," but the acquisition of additional customization projects for existing users did not progress and fell below plans. Notably, "Campus Plan Smart" was implemented not only in private universities, where the company has many clients, but also in national and public universities, and numerous orders and inquiries for projects were obtained for the subsequent fiscal years.

The public education solution business that provides the school operations support system "School Engine" was able to establish operations for several regional projects set to commence in April 2024, as well as operating an online application system for large municipalities, which drove the company’s performance. Furthermore, multiple large-scale projects scheduled to start operations in April 2025 were also progressing smoothly in terms of orders, with preparations for their launch being conducted concurrently.

In the public accounting solution business for public organizations, "PPP (Triple-P) Ver.5 New Unified Standard-Compatible Version" was utilized by more than half of the municipalities nationwide and more than 1,000 municipalities in total. Additionally, the "Common Financial Accounting System" for local governments, along with the package software "Public Property Management System" that supports property management tasks, received evaluations in the market and was implemented in multiple organizations, including ordinance-designated cities.

In the wellness solutions business, which develops operation support systems for membership facilities and leisure facilities through the "Hello" series, sales and profits fell below plans due to a decrease in existing large user projects and timing discrepancies. However, a cloud-based member management and fee collection system "Smart Hello" was successfully delivered to more facilities than the previous year for small fitness facilities and membership-based schools. Additionally, the cloud-based ticket management system "Smart Hello Ticket" also progressed steadily in deliveries to clients including large leisure facilities, successfully building up recurring revenue for the future.

In the software engineering business providing the "Regulation Management System" and "Contract Creation and Management System," these high-performance, cost-effective software solutions have received high evaluations in the market, consistently driving performance growth each period. In the current year, the implementation of these solutions for numerous users, including financial institutions, large corporations, and conglomerates, was successfully advanced.

In the sink business operating for insurance pharmacies, stable maintenance support revenue was secured while furthering the sales of options related to online eligibility verification for medical assistance.

At Nakamura Farm, which is engaged in contract development and consulting of software utilizing AI, efforts have been made to train AI personnel as well as consulting, while also progressing in the development to implement AI functionalities into the company’s software packages.

For the consolidated financial forecast for the fiscal year ending October 2025, revenue is expected to be 5.024 billion yen, an increase of 8.5% from the previous period, operating profit is expected to be 0.932 billion yen, a 12.6% increase, ordinary profit is expected to be 0.931 billion yen, a 12.2% increase, and the net income attributable to the shareholders of the parent company is expected to be 0.627 billion yen, a 12.9% increase.