Worth reading
37Immaterial
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
1.79
%Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AFirst quarter of the fiscal year ending February 20276 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Operating profit¥0 10,000
Results for the three months of the current quarterThe underlying operating profit for the first quarter is stated as ¥0, while other standalone three-month performance figures are Not disclosed
Full-year earnings forecast
Ordinary income
¥8,800 10,000
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Scenario for achieving the full-year ordinary profit target of ¥88 million from first-quarter operating profit of ¥0: the Consumer business has recently been driving performance, and the company intends to improve Enterprise business profitability as the effects of its initiatives become apparent. Specific quarterly figures are not disclosed.
- Background to and measures for the deterioration in the churn rate: churn was attributed to the company’s inability to support some existing customers through to the point at which they achieved sufficient results. The company will strengthen support tailored to company size and its customer success structure.
- Sustainability of the 1.79% NRCR: the company recognizes that there is room for improvement, rather than viewing the rate as merely a reaction to events 2–3 years ago. It will work to extend usage periods and increase the number of users per company.
- Background to the increase in ARPA: the increase reflects the higher proportion of Enterprise customers. The company will prioritize overall MRR growth while also working to increase the number of contracted small and medium-sized companies.
- M&A policy: the company will broadly consider opportunities, whether B2C or B2B, that contribute to the development of people and the provision of AI capabilities.
- Services for foreign nationals and individuals: there are no specific plans at present, but the company aims to provide such services in the future.
- Liquidity and IR strategy: the company’s basic approach is to expand the business and grow profits, while promoting timely disclosure of new features, business alliances and M&A, as well as dialogue with investors.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
As background to the higher churn rate, the company explained that it was unable to support some companies that had adopted the service through to the point at which they achieved sufficient results. Amounts attributable to individual factors are Not disclosed
New initiatives
- Strengthening the customer success structure according to company size
- Expanding the scope of support for companies with large-scale implementations
- Strengthening support for small and medium-sized companies in line with their usage objectives
- Increasing the number of users per company
- Considering M&A opportunities covering both B2C and B2B
- Expanding timely disclosure of new features, business alliances and M&A, and dialogue with investors
Key KPIsA metric the company considers important as a management benchmark.
- NRCR (churn rate)1.79 %Year on year against the same period last yearHigher
- ARPA (average revenue per account)Increased
- MRRPriority on overall expansion
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The company referred to an increase in ARPA (average revenue per account), as well as growth in the number of contracted companies and users per company, but the actual volume figures are Not disclosedSegment results
Two segments: the Enterprise business and the Consumer business. The Consumer business is stated to be making a larger contribution recently, but segment-level revenue and profit figures are Not disclosed| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending February 2027 |
| Operating profit | ¥0 10,000 |
| Results for the three months of the current quarter | The underlying operating profit for the first quarter is stated as ¥0, while other standalone three-month performance figures are Not disclosed |
| Full-year earnings forecast | Ordinary income ¥8,800 10,000 |
| Segment results | Two segments: the Enterprise business and the Consumer business. The Consumer business is stated to be making a larger contribution recently, but segment-level revenue and profit figures are Not disclosed |
| Breakdown of Factors Affecting the Change | As background to the higher churn rate, the company explained that it was unable to support some companies that had adopted the service through to the point at which they achieved sufficient results. Amounts attributable to individual factors are Not disclosed |
| Key KPIs | Indicator name NRCR (churn rate) / Value 1.79 % / Year on year against the same period last year Higher, Indicator name ARPA (average revenue per account) / Value Increased / Year on year against the same period last year Not disclosed, Indicator name MRR / Value Priority on overall expansion / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | The company referred to an increase in ARPA (average revenue per account), as well as growth in the number of contracted companies and users per company, but the actual volume figures are Not disclosed |
| Key points of the Q&A | Scenario for achieving the full-year ordinary profit target of ¥88 million from first-quarter operating profit of ¥0: the Consumer business has recently been driving performance, and the company intends to improve Enterprise business profitability as the effects of its initiatives become apparent. Specific quarterly figures are not disclosed., Background to and measures for the deterioration in the churn rate: churn was attributed to the company’s inability to support some existing customers through to the point at which they achieved sufficient results. The company will strengthen support tailored to company size and its customer success structure., Sustainability of the 1.79% NRCR: the company recognizes that there is room for improvement, rather than viewing the rate as merely a reaction to events 2–3 years ago. It will work to extend usage periods and increase the number of users per company., Background to the increase in ARPA: the increase reflects the higher proportion of Enterprise customers. The company will prioritize overall MRR growth while also working to increase the number of contracted small and medium-sized companies., M&A policy: the company will broadly consider opportunities, whether B2C or B2B, that contribute to the development of people and the provision of AI capabilities., Services for foreign nationals and individuals: there are no specific plans at present, but the company aims to provide such services in the future., Liquidity and IR strategy: the company’s basic approach is to expand the business and grow profits, while promoting timely disclosure of new features, business alliances and M&A, as well as dialogue with investors. |
| New initiatives | Strengthening the customer success structure according to company size, Expanding the scope of support for companies with large-scale implementations, Strengthening support for small and medium-sized companies in line with their usage objectives, Increasing the number of users per company, Considering M&A opportunities covering both B2C and B2B, Expanding timely disclosure of new features, business alliances and M&A, and dialogue with investors |
Items this document does not state (20)
Net SalesOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital 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 explained that churn occurred among some companies that adopted the service during the online workforce development boom 2–3 years ago but were not supported through to the point at which they achieved sufficient results. Going forward, it will provide support tailored to company size, strengthen its customer success structure, and work to extend usage periods and increase the number of users per company.
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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.