geechs Inc. announced its consolidated financial results for the first quarter of the fiscal year ending March 2025, reflecting a mixed performance due to strategic changes. The company’s sales decreased by 2.0% year-on-year to 5.825 billion yen (approximately US$41.1 million) following the sale of its shares in G2 Studios on March 29. However, the divestment led to improved profit margins, with operating profit rising by 175.8% to 80 million yen and ordinary profit increasing by 200.9% to 84 million yen. Net profit surged to 58 million yen, a remarkable 1150.1% increase.
The domestic IT human resources segment saw sales grow by 6.7% year-on-year to 3.694 billion yen, with segment profit rising by 4.5% to 295 million yen. Strong demand from companies and rising average order prices contributed to this growth. A customer survey indicated high satisfaction among registered IT freelancers. geechs Inc. focused on sustainable growth by optimizing advertising expenses, enhancing staff capabilities, and improving in-house training programs.
Overseas sales in the IT human resources segment increased by 11.3% year-on-year to 2.048 million yen, although the segment posted a loss of 36 million yen, widening from a 21 million yen loss in the previous year. This segment includes Launch Group Holdings, which operates in Australia, specializing in IT staffing and management solutions in Sydney and Melbourne. During the first quarter, the company worked on restructuring and expanding its team of career consultants.
Sales in the Seed Tech business rose by 37.5% year-on-year to 72 million yen, though the segment recorded a loss of 13 million yen. This business encompasses offshore development contracts, an IT study abroad program in Cebu, Philippines, and services like “Sodatek,” a SaaS-based DX/IT human resources development platform. The “Seed Tech Camp” initiative aims to train young people without IT experience for careers in technology.
geechs Inc. has maintained its full-year earnings forecast for the fiscal year ending March 2025, expecting sales to reach 26.3 billion yen, representing a 10.8% increase from the previous year. The company projects an operating profit of 550 million yen, a substantial 505.3% rise, and an ordinary profit of 545 million yen, up 670.7%. Net profit is forecasted at 336 million yen, a significant turnaround from a 1.473 billion yen loss in the previous term.
The company remains focused on leveraging its strategic shifts and strengthening its core businesses to drive future growth.
