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How definitive the wording is.Contents of this document
Summary of Q&ASecond quarter of the fiscal year ending December 20266 items taken from the company’s own explanation
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The company expects performance to remain broadly within plan (outlook for costs and SG&A)Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- The company explained that favorable conditions in the construction industry are supporting DX investment and that the cancellation risk for direct is low.
- Following direct's price revision, the company is prioritizing support for existing customers and churn prevention while continuing to acquire new customers.
- ARR from existing customers is increasing through cross-selling and the impact of price increases.
- New and additional contracts associated with municipalities' fiscal-year changes are driving growth in Stock OEM revenue.
- No significant changes are expected in costs or SG&A. Advertising and promotional expenses for LUC and direct assistant costs are broadly in line with plan.
- The company aims to formally launch direct assistant by the end of the year and plans to charge by organization-level plan.
- The company is promoting the development of an infrastructure platform for field data using AI and trials of direct assistant.
- The company is expanding the areas in which it addresses customer needs through collaboration with its investees and business partners.
- BIM project-based revenue is affected by customer-related timing shifts, while recurring revenue from staffing services is growing.
- The company is prioritizing business expansion and growth investment over share buybacks.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The transition to direct's new pricing has been completed for most customers renewing in April. The remaining customers are scheduled to transition in stages according to their annual renewal timing.New initiatives
- Launch of trials for direct assistant and plans for a formal launch by the end of the year
- Organization-based pricing for direct assistant linked to token volume
- Use of generative AI in internal operations and system development
- Development of an infrastructure platform linking field data with AI
- Expansion beyond the construction industry into plants, water and wastewater infrastructure, heavy electrical equipment and other areas
- The company plans to announce its vision for the future use of AI and new projects at LUC2026
Number of employees
The sales, marketing and support departments increased by 7 people from the end of the previous fiscal year, while IU BIM STUDIO added 2 people in the second quarter. Several hires are planned for the third quarter.Acquisition of treasury shares
The acquisition limit, number of shares and period are not disclosed. The company is considering a share buyback, but will prioritize business expansion and investment first.| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Second quarter of the fiscal year ending December 2026 |
| Self-assessment against the plan | The company expects performance to remain broadly within plan (outlook for costs and SG&A) |
| Number of employees | The sales, marketing and support departments increased by 7 people from the end of the previous fiscal year, while IU BIM STUDIO added 2 people in the second quarter. Several hires are planned for the third quarter. |
| Assumptions Underlying the Business Outlook | The transition to direct's new pricing has been completed for most customers renewing in April. The remaining customers are scheduled to transition in stages according to their annual renewal timing. |
| Acquisition of treasury shares | The acquisition limit, number of shares and period are not disclosed. The company is considering a share buyback, but will prioritize business expansion and investment first. |
| Key points of the Q&A | The company explained that favorable conditions in the construction industry are supporting DX investment and that the cancellation risk for direct is low., Following direct's price revision, the company is prioritizing support for existing customers and churn prevention while continuing to acquire new customers., ARR from existing customers is increasing through cross-selling and the impact of price increases., New and additional contracts associated with municipalities' fiscal-year changes are driving growth in Stock OEM revenue., No significant changes are expected in costs or SG&A. Advertising and promotional expenses for LUC and direct assistant costs are broadly in line with plan., The company aims to formally launch direct assistant by the end of the year and plans to charge by organization-level plan., The company is promoting the development of an infrastructure platform for field data using AI and trials of direct assistant., The company is expanding the areas in which it addresses customer needs through collaboration with its investees and business partners., BIM project-based revenue is affected by customer-related timing shifts, while recurring revenue from staffing services is growing., The company is prioritizing business expansion and growth investment over share buybacks. |
| New initiatives | Launch of trials for direct assistant and plans for a formal launch by the end of the year, Organization-based pricing for direct assistant linked to token volume, Use of generative AI in internal operations and system development, Development of an infrastructure platform linking field data with AI, Expansion beyond the construction industry into plants, water and wastewater infrastructure, heavy electrical equipment and other areas, The company plans to announce its vision for the future use of AI and new projects at LUC2026 |
Items this document does not state (23)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastSegment resultsBreakdown of Factors Affecting the ChangeKey KPIsUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioCapital expendituresOrders received and order backlogMarket Size / Share
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The company disclosed its responses to the main questions received from investors after consolidating duplicate questions, with consideration given to personal information and readability.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.