Sakura Internet Inc. posted a dramatic increase in quarterly profits as demand for artificial intelligence development fueled growth in its cloud computing services.
The Tokyo-based cloud provider saw its operating profit soar 419% to 1.3 billion yen ($8.7 million) in the second quarter, while revenue climbed 28% to 13.3 billion yen ($88.7 million). Net income more than quadrupled to 710 million yen ($4.7 million).
The earnings boost came primarily from strong uptake of GPU cloud services, which Sakura launched in January to capitalize on surging demand for AI development resources. Despite increased spending on cloud infrastructure, recruitment, and marketing initiatives, the revenue growth more than offset these investments.
Looking ahead, Sakura projects full-year sales to reach 29 billion yen ($193.3 million), up 33% from the previous year. The company expects operating profit to nearly triple to 2.6 billion yen ($17.3 million).
At the halfway point of its fiscal year, Sakura has achieved about 46% of its annual revenue target and 50% of its projected operating profit, suggesting the company’s aggressive expansion in AI-focused cloud services is paying off despite intense competition in Japan’s cloud market.
