Sustained profitability in the Legal business and recovery in operating profit
First written in FY2018-Q2. 13 of 28 entries say "Advanced", first in FY2018-Q3. Latest entry: FY2025.
No other company in this theme has enough history to compare yet.
- FY2025AchievedAnnual report
「Revenue in the LegalTech AI business was ¥3,491.510 million, down 23.7% year on year, due to structural changes in the e-discovery support market in the United States. Operating income (loss) was operating income of ¥249.846 million, compared with an operating loss of ¥347.583 million in the same period of the previous year, due to the effects of improvements to the overall cost structure implemented in the previous fiscal year and lower amortization expenses resulting from impairment losses on goodwill and other assets.」
Against the target of achieving full-year profitability for the fiscal year ending March 2025, the LegalTech AI business posted operating income of ¥249.846 million and achieved full-year operating profitability. - FY2025-H1AdvancedAnnual report
「Revenue in the LegalTech AI business was ¥2,011.333 million, down 5.1% year on year, but exceeded the earnings forecast. Operating income (loss) improved substantially to operating income of ¥233.412 million, compared with an operating loss of ¥468.358 million in the same period of the previous year, due to the effects of improvements to the overall cost structure implemented in the previous fiscal year and lower amortization expenses resulting from impairment losses on goodwill and other assets.」
Although revenue declined, the LegalTech AI business exceeded its earnings forecast and turned from an operating loss in the same period of the previous year to operating income of ¥233.412 million due to improvements in the overall cost structure and lower amortization expenses. - FY2024AdvancedAnnual report
「As a result of improvements in the overall cost structure, the segment posted an operating profit in the fourth quarter of the current consolidated fiscal year, and profitability in the business is expected to continue improving. ... For the fiscal year ending March 2025, the company expects to achieve profitability for the full year.」
The LegalTech AI business posted an operating loss of ¥347.583 million for the full year, but the segment posted an operating profit in the fourth quarter alone. Based on improvements to the cost structure, the company set a target of achieving full-year profitability for the fiscal year ending March 2025. - FY2024-Q3Continued revenue declines and a slight narrowing of the operating lossAnnual report
「The company posted an operating loss of ¥479.918 million, compared with an operating loss of ¥488.737 million in the same period of the previous year, due to improvements in its overall cost structure.」
Revenue in the LegalTech AI business declined 23.0% year on year, and it continued to report an operating loss. However, improvements in the overall cost structure slightly narrowed the operating loss from the same period of the previous year, but the business did not achieve sustained profitability or restore operating income. - FY2024-Q2WorsenedAnnual report
「The decline in revenue resulted in an operating loss of ¥472.987 million, compared with an operating loss of ¥174.086 million in the same period of the previous year.」
The LegalTech AI business's operating loss increased from ¥174.086 million in the same period of the previous year to ¥472.987 million, further worsening from the state of sustained profitability and operating income recovery. - FY2024-Q1WorsenedAnnual report
「In the legal technology AI business, revenue declined year on year because orders for major engagements in the e-discovery services business remained weak, in addition to the strategic reduction of non-AI businesses carried out in the previous fiscal year.」
Despite the efforts to establish sustained profitability and restore operating income in the Legal business, revenue declined due to weak orders for large-scale projects and the reduction of non-AI businesses, resulting in an operating loss of ¥343.303 million in the first quarter. - FY2023WorsenedAnnual report
「Revenue was ¥5,364.787 million, down 39.3% year on year, and the decline in revenue resulted in an operating loss of ¥1,063.404 million, compared with operating income of ¥1,270.384 million in the same period of the previous year.」
The LegalTech AI business turned from operating income in the same period of the previous year to an operating loss of ¥1,063.404 million due to weak orders for large-scale projects and the impact of reducing non-AI businesses, ending its sustained profitability. - FY2023-Q3WorsenedAnnual report
「As a result, revenue was ¥4,313.368 million, down 38.5% year on year, and the decline in revenue resulted in an operating loss of ¥497.847 million, compared with operating profit of ¥1,072.940 million in the previous year.」
Despite the efforts to establish sustained profitability and restore operating income in the Legal business, it turned from operating income in the same period of the previous year to an operating loss, ending its sustained profitability. - FY2023-Q2WorsenedAnnual report
「Revenue in the LegalTech AI business declined substantially because orders for large-scale projects in the e-discovery services remained weak, in addition to the strategic reduction of non-AI businesses.」
Despite the Legal business's sustained profitability, weak orders for large-scale projects and the strategic reduction of non-AI businesses resulted in an operating loss of ¥176.798 million. - FY2023-Q1WorsenedAnnual report
「Revenue in the LegalTech AI business was ¥1,581.180 million, down 37.4% year on year, and the decline in revenue resulted in an operating loss of ¥169.852 million, compared with operating income of ¥434.671 million in the same period of the previous year.」
Despite the Legal business's sustained profitability, the current quarter turned from operating income in the same period of the previous year to an operating loss due to weak orders for large-scale projects and operating constraints caused by unauthorized access at the U.S. subsidiary. - FY2022-Q3AdvancedAnnual report
「Revenue in the LegalTech AI business exceeded the same period of the previous year as a result of winning multiple large-scale projects globally. Portfolio transformation also proved effective, increasing the proportion of revenue generated from projects using the AI review tool KIBIT Automator that are expected to generate high margins. Lower SG&A expenses resulting from the restructuring efforts centered on the U.S. subsidiary also contributed to higher profit.」
The LegalTech AI business won multiple large-scale projects globally and generated revenue of ¥7,017.159 million and operating income of ¥1,072.940 million due to the shift to high-margin projects using KIBIT Automator and the effects of restructuring the U.S. subsidiary. - FY2022-Q2AdvancedAnnual report
「Revenue in the LegalTech AI business increased substantially as a result of winning multiple large-scale projects globally. The portfolio transformation from a labor-intensive conventional business to projects expected to generate high margins through the AI review tool KIBIT Automator also took effect and contributed to higher profit.」
The company won multiple large-scale projects globally, and the effects of the shift to high-margin projects using KIBIT Automator began to emerge. The LegalTech AI business posted operating income of ¥970.130 million. - FY2022-Q1AdvancedAnnual report
「As a result, revenue was ¥2,525.362 million, up 3.3% year on year, while operating income was ¥434.671 million, compared with ¥2.980 million in the same period of the previous year. This was substantially higher year on year, owing to higher revenue and lower SG&A expenses resulting from the restructuring efforts centered on the U.S. subsidiary.」
The LegalTech AI business posted operating income of ¥434.671 million, driven by higher revenue, lower SG&A expenses resulting from the restructuring of the U.S. subsidiary, and the expansion of projects using KIBIT Automator. Operating income increased substantially from ¥2.980 million in the same period of the previous year. - FY2021AdvancedAnnual report
「Revenue in the LegalTech AI business is in a transitional phase of portfolio transformation, shifting from a conventional business-led portfolio to one centered on projects expected to generate high margins through the AI review tool KIBIT Automator. As a result, revenue for the current consolidated fiscal year was ¥8,245.557 million, down 9.6% year on year. Operating income (loss) was operating income of ¥220.744 million, compared with an operating loss of ¥665.630 million in the same period of the previous year, due to improved margins from an increase in high-margin projects and cost optimization, including reductions in personnel and office expenses at the U.S. subsidiary implemented in the previous fiscal year.」
Although revenue declined, the LegalTech AI business turned from an operating loss in the same period of the previous year to operating income of ¥220.744 million due to an increase in high-margin projects using KIBIT Automator and cost optimization at the U.S. subsidiary. - FY2021-Q3AdvancedAnnual report
「As a result, revenue in the LegalTech AI business was ¥6,118.824 million, down 7.3% year on year. Operating income (loss) was operating income of ¥67.694 million, compared with an operating loss of ¥691.722 million in the same period of the previous year, due to the continued contribution from the shift to an AI-led business model expected to generate high margins in the e-discovery services and improvements to the U.S. subsidiary's cost structure implemented in the previous fiscal year.」
The LegalTech AI business turned from an operating loss in the same period of the previous year to operating income of ¥67.694 million due to the shift to an AI-led business model and improvements to the U.S. subsidiary's cost structure. - FY2021-Q2AdvancedAnnual report
「The shift to an AI-led business model expected to generate high margins in the e-discovery services and improvements to the U.S. subsidiary's cost structure implemented in the previous fiscal year continued to contribute, but the impact of declining domestic revenue resulted in an operating loss of ¥38.414 million, compared with an operating loss of ¥626.852 million in the same period of the previous year.」
The LegalTech AI business remained in an operating loss, but the shift to an AI-led model and improvements to the U.S. subsidiary's cost structure substantially narrowed the operating loss from ¥626.852 million in the same period of the previous year to ¥38.414 million. - FY2021-Q1AdvancedAnnual report
「As a result of the continued contribution from the shift to an AI-led business model expected to generate high margins in the e-discovery services and improvements to the U.S. subsidiary's cost structure implemented in the previous fiscal year, the company posted operating income of ¥2.980 million, compared with an operating loss of ¥357.075 million in the same period of the previous year.」
Against the backdrop of the shift to an AI-led business model and improvements to the U.S. subsidiary's cost structure, the Legal business turned from an operating loss in the same period of the previous year to operating income of ¥2.980 million in the first quarter. - FY2020WorsenedAnnual report
「The company posted an operating loss of ¥665.630 million, compared with operating income of ¥110.773 million in the same period of the previous year.」
Despite the Legal business's sustained profitability, it turned from operating income in the previous fiscal year to an operating loss for the full year. However, cost reductions at the U.S. subsidiary narrowed the deficit in the second half. - FY2020-Q3WorsenedAnnual report
「As a result, revenue in the LegalTech AI business was ¥6,603.973 million, down 13.0% year on year. Although revenue from forensic services increased year on year as described above, operating income (loss) was an operating loss of ¥691.722 million, compared with operating income of ¥315.110 million in the same period of the previous year, due to the inability to offset the impact of lower Hosting revenue and other revenue from the high-margin e-discovery services, as well as higher personnel expenses resulting from investment in senior management to support future growth. However, the deficit narrowed substantially in the third quarter of the fiscal year as a result of the cost reductions implemented at the U.S. subsidiary in the first half.」
Although cost reductions at the U.S. subsidiary narrowed the deficit in the third quarter, on a cumulative basis the LegalTech AI business turned from operating income of ¥315.110 million in the same period of the previous year to an operating loss of ¥691.722 million, ending its sustained profitability. - FY2020-Q2WorsenedAnnual report
「As a result, revenue in the LegalTech AI business was ¥4,310.931 million, down 17.2% year on year. Operating income (loss) was an operating loss of ¥626.852 million, compared with operating income of ¥271.834 million in the same period of the previous year, due to a decline in high-margin Hosting revenue and higher personnel expenses resulting from investment in senior management.」
The LegalTech AI business turned from operating income in the same period of the previous year to an operating loss of ¥626.852 million due to lower Hosting revenue and higher personnel expenses. - FY2020-Q1WorsenedAnnual report
「As for operating income (loss), the company posted an operating loss of ¥357.075 million, compared with operating income of ¥237.083 million in the same period of the previous year, due to a decline in high-margin Hosting revenue and higher personnel expenses resulting from investment in senior management.」
Despite the policy of establishing sustained profitability in the Legal business, the current quarter turned from operating income of ¥237.083 million in the same period of the previous year to an operating loss of ¥357.075 million. - FY2019RestatedAnnual report
「While cross-border cases in South Korea and Taiwan remained strong, lost cases and timing shifts, mainly involving U.S. Department of Justice matters, resulted in revenue of ¥9,834.826 million, down 13.0% year on year, and operating profit of ¥110.773 million, down 75.9%.」
Although profit levels declined in the LegalTech AI business, it remained profitable for the full year. - FY2019-Q3AdvancedAnnual report
「As a result, revenue from the legal tech business was ¥7,592 million, down 10.0% year on year. Operating income improved through rigorous project management and cost-reduction efforts as part of the restructuring of the U.S. subsidiaries, resulting in operating income of ¥315.110 million, compared with an operating loss of ¥105.507 million in the same period of the previous year.」
Although revenue in the Legal business declined, it turned from an operating loss in the same period of the previous year to operating income of ¥315.110 million, due to the restructuring of the U.S. subsidiary, project management and cost reductions. - FY2019-Q2AdvancedAnnual report
「As for operating income (loss), earnings improved to operating income of ¥271.834 million, compared with an operating loss of ¥313.614 million in the same period of the previous year, due to thorough project management and cost-cutting efforts as part of the restructuring of the U.S. subsidiary.」
The Legal business turned from an operating loss in the same period of the previous year to operating income of ¥271.834 million, owing to the effects of restructuring the U.S. subsidiary. - FY2019-Q1AdvancedAnnual report
「As described below under Segment Information, operating profit was ¥237.083 million, compared with an operating loss of ¥448.317 million in the same period of the previous year.」
Regarding the establishment of sustained profitability and restoration of operating profit in the legal business indicated in the previous fiscal year, the company recorded operating profit of ¥237.083 million in the first quarter of the current fiscal year. - FY2018AchievedAnnual report
「As a result of structural reforms at the US subsidiary, including thorough project management and cost-reduction efforts, the US subsidiary achieved quarterly operating profitability in the fourth quarter, and the legal tech business as a whole achieved full-year operating profitability.」
Regarding the establishment of sustained profitability and restoration of operating profit in the legal business indicated in the second quarter, the company achieved full-year operating profitability by recording full-year operating profit of ¥491.630 million. - FY2018-Q3AdvancedAnnual report
「As a result of the restructuring of the U.S. business led by headquarters since the second quarter, together with rigorous project management and cost-reduction efforts, we made significant progress toward achieving full-year operating profitability.」
The company made significant progress toward achieving full-year operating profitability through the effects of restructuring the US business, project management and cost reductions. The operating profit margin expanded in the consolidated third quarter accounting period. - FY2018-Q2First statedAnnual report
「During the second quarter, the legal business achieved profitability in the consolidated second-quarter accounting period as a result of forcefully advancing, under headquarters' leadership and over a short period, measures including profit-focused sales activities such as concentrating on winning large projects from Asian companies, and decisive cost reductions centered on optimizing personnel and locations. However, this was not enough to cover the loss recorded in the consolidated first-quarter accounting period, and the business remained loss-making for the cumulative second quarter of the consolidated fiscal year. From the third quarter onward, the company expects the profit-structure reforms described above to take effect and profitability to become established.」
For the legal business, the company achieved profitability on a standalone second-quarter basis and, for the first time, specifically stated its objective of establishing profitability from the third quarter onward and restoring operating profit for the consolidated fiscal year.