Logizard FY June 2025 Presentation: Revenue Up 10.1% as Cloud Services Drive Growth

Introduction & Market Context

Logizard Co., Ltd. (TSE Growth:4391), a provider of cloud-based warehouse management systems (WMS), reported solid financial results for the fiscal year ending June 2025, achieving record highs across key metrics despite a challenging retail environment. The company’s presentation, delivered on August 15, 2025, highlighted how its cloud-first approach continues to gain traction amid ongoing labor shortages and digital transformation needs in the logistics sector.

The company operates in a business environment characterized by global economic uncertainty, with tensions in Ukraine and the Middle East impacting consumer sentiment. Domestically, Japan’s economy showed some resilience through wage increases and fixed-amount tax cuts supporting personal consumption, though retail sales were slightly down compared to the previous year.

As shown in the following financial highlights, Logizard achieved growth across all key performance indicators:

Financial Performance Highlights

Logizard reported revenue of 2,177 million yen for FY2025, representing a 10.1% increase year-over-year. Operating profit grew at an even faster rate, rising 18.3% to 409 million yen, while net profit increased by 12.1% to 283 million yen. The company also reported 1,858 accounts, up 5.6% from the previous year, and monthly recurring revenue (MRR) of 148 million yen for June 2025, an 8.9% increase year-over-year.

The company’s performance against its full-year forecast was strong, with actual results meeting or exceeding projections in most areas. Revenue reached 98.3% of the forecast, while operating profit and net profit exceeded expectations at 101.9% and 100.8% respectively.

The following chart details Logizard’s performance against its full-year forecast:

The profit and loss statement further illustrates the company’s financial performance, showing consistent improvement across key metrics:

Revenue Breakdown and Analysis

Cloud services remained Logizard’s primary revenue driver, accounting for 79.2% of total revenue at 1,723 million yen, a 10.2% increase year-over-year. Development and implementation services grew by 15.2% to 365 million yen, representing 16.8% of total revenue. Equipment sales, the smallest segment at 4.0% of revenue, declined by 8.7% to 87 million yen.

The following chart breaks down the revenue sources and their year-over-year changes:

Monthly recurring revenue (MRR), a critical metric for SaaS businesses, showed steady growth throughout the fiscal year, reaching 148 million yen by Q4. This represents 97.4% of the company’s target of 152.5 million yen:

While revenue growth remained strong, gross profit margins for cloud services fluctuated throughout the year, ending at 59.0% in Q4. The company noted that personnel hiring investments caused gross profit margins to decline by 2.4 percentage points, and 13 million yen was spent to compensate users for service failures.

Strategic Initiatives and Market Positioning

Logizard has strategically positioned itself between high-cost enterprise WMS solutions and smaller BtoB-BtoC offerings. The company targets businesses needing flexible cloud operations with low initial costs, focusing on three main product lines: Logizard Zero (cloud WMS), Logizard Zero STORE (cloud store management system), and Logizard OCC (omnichannel support engine).

The company’s revenue structure clearly illustrates its focus on recurring cloud services:

During the fiscal year, Logizard implemented its solutions across various use cases, addressing key market trends:

1. Expansion of BtoB WMS needs, including cases like SODA utilizing the system to manage both stores and e-commerce to prevent inventory stagnation

2. Automation trends addressing labor shortages through integration with automatic warehouse systems

3. Advancing store smartification and online integration through implementation of Shopify plugins

The following slide showcases these implementation cases:

Forward-Looking Statements

Logizard continues to invest in product development, with 217 million yen allocated during FY2025, up from 174 million yen in the previous year. The company expanded its workforce to 132 employees, with engineers comprising the majority at 85 staff members.

The company faces both opportunities and challenges going forward. The logistics industry continues to struggle with chronic labor shortages, driving demand for productivity-enhancing technologies like Logizard’s cloud WMS. However, global economic uncertainty could potentially hinder future investment decisions by potential clients.

Logizard’s stock closed at 1,205 yen on September 8, 2025, up 19 yen (1.58%) for the day. The stock has traded between 1,082 yen and 1,633 yen over the past 52 weeks.

The company maintains a low churn rate of 0.91% in Q4 FY2025, down from 1.22% in the same period last year, indicating strong customer retention despite competitive pressures. With its solid financial foundation and strategic market positioning, Logizard appears well-positioned to continue its growth trajectory in the Japanese logistics software market.

Full presentation:

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