Japanese IT services provider SHIFT announced its fiscal year 2024 results, revealing a complex financial picture. The company achieved its ambitious “SHIFT1000” growth strategy goal, surpassing ¥100 billion ($668 million) in sales with a 25.7% year-over-year increase to ¥110.6 billion ($739 million).
However, SHIFT’s profitability took a hit across all metrics. Operating profit fell 8.9% to ¥10.5 billion ($70 million), while net profit declined 8.5% to ¥5.7 billion ($38 million). The company attributed these drops to lower operating rates and valuation losses on some investment securities.
SHIFT’s core software testing services remained a bright spot, with sales climbing 22.4% and operating profit up 11.4%. The software development segment saw strong 29.2% sales growth but a 5.3% dip in operating profit due to project acquisition delays and utilization rate issues.
Looking ahead, SHIFT projects a rebound for fiscal year 2025, forecasting sales of ¥130 billion ($869 million) and a 28.1% jump in operating profit. The company’s ability to improve efficiency across all segments will be crucial to achieving these ambitious targets.
