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Financial results presentation338AZenmuTech,Inc.Information and Communications, Services and Others

Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026

In the first half of the fiscal year ending December 2026, revenue fell short of plan because some orders were pushed back to the fourth quarter, among other factors, while the operating loss widened from the same period of the previous year. The full-year forecast remains unchanged, with revenue and profit from large projects expected to be concentrated in the second half.

Worth reading
60In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-75
Millions of yen (year-on-year change in ordinary profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending December 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥305 million+0.3%
Operating profit¥-99 million
Ordinary income¥-79 million
Net income¥-60 million interim net income
Selling, general and administrative expenses¥369 million
Gross Profit Margin88.5% (gross profit of ¥270 million ÷ revenue of ¥305 million; year-on-year change: not disclosed)
Operating profit marginnot disclosed (full-year forecast operating margin: 14.9%)
Results for the three months of the current quarterRevenue of ¥159 million and an operating loss of ¥44 million (standalone second quarter of the fiscal year ending December 2026)
Full-year earnings forecast
Net Sales
¥1,080 million
Operating profit
¥161 million
Ordinary income
¥180 million
Net income for the current fiscal year
¥302 million
Operating profit margin
14.9 %
Ordinary income margin
16.7 %
Net profit margin
28 %
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。not disclosed (the remaining amount against the second-half forecast is ¥774 million)
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The full-year plan is maintained despite the first-half shortfall
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in revenue¥1 million
  • Elimination of IPO-related expenses¥14 million
  • Decrease in advertising and marketing expenses¥5 million
  • Increase in personnel and recruitment expenses¥-41 million
  • Increase in R&D expenses¥-12 million
  • Higher other SG&A expenses¥-27 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Timing of large business opportunities is uneven, with a concentration in the second half, seasonality in new orders, accumulation of recurring subscription revenue, and front-loaded expenses from growth investments in recruitment and marketing. Numerical assumptions: not disclosed.
New initiatives
  • Providing co-developed technology to AIHOBS's healthcare digital transformation platform
  • Joint development for implementing secret-sharing technology in NerveNet
  • Joint development and patent filing for a secret-sharing × RAG solution
  • Business alliance and customer-referral agreement among three companies with MintWave and TMI Privacy & Security Consulting
  • Beginning development of the Mac version of ZVD
  • Beginning development of a cloud data protection product
  • Appointing Associate Professor Murakami Takao (村上 隆夫) of the Institute of Statistical Mathematics as an adviser
  • Signing a strategic memorandum of understanding with BigObject
Key KPIsA metric the company considers important as a management benchmark.
  • Number of ZVD licenses117,076 Licensing
    Year on year against the same period last yearGrowing steadily
  • Number of ZVD subscription-contract licenses73,073 Licensing
  • Net churn rate0.4 %
  • Stock revenue ratio69.3 %
  • Number of ZENMU Virtual Drive users11 10,000 people
Segment results
  • ZENMU Virtual Drive
    Net Sales¥257 million
    Year-on-year (%)32.5
  • ZENMU Engine
    Net Sales¥12 million
    Year-on-year (%)-4.3
  • QueryAhead®
    Net Sales¥6 million
    Year-on-year (%)-67
  • Other
    Net Sales¥29 million
Medium-term management plan targets
triple 30 Plan
Target fiscal yearFiscal year ending December 2030
Target value
  • 30% revenue CAGR (2026–2030)
  • 30% operating margin
Long-Term TargetsA company with ¥10 billion in revenue
Market Size / Share
  • Domestic white-collar workers2,700 10,000 people
  • Number of domestic VDI users802 10,000 people
  • Number of ZENMU Virtual Drive users11 10,000 people
  • Global confidential computing market size (2024)$16–18 billion
  • Estimated global confidential computing market size (2026)$52–54 billion
  • Growth segment of the global confidential computing market, where cloud is mainstream71 %
Number of employees
Number of Employees40 people
Change during the period4 more people than at the end of the previous fiscal year
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales¥305 million (YoY +0.3%)
Operating profit¥-99 million
Ordinary income¥-79 million
Net income¥-60 million (interim net income)
Gross Profit Margin88.5% (gross profit of ¥270 million ÷ revenue of ¥305 million; year-on-year change: not disclosed)
Operating profit marginnot disclosed (full-year forecast operating margin: 14.9%)
Selling, general and administrative expenses¥369 million
Results for the three months of the current quarterRevenue of ¥159 million and an operating loss of ¥44 million (standalone second quarter of the fiscal year ending December 2026)
Full-year earnings forecastNet Sales ¥1,080 million / Operating profit ¥161 million / Ordinary income ¥180 million / Net income for the current fiscal year ¥302 million / Operating profit margin 14.9 % / Ordinary income margin 16.7 % / Net profit margin 28 %
Progress against full-year forecastnot disclosed (the remaining amount against the second-half forecast is ¥774 million)
Self-assessment against the planThe full-year plan is maintained despite the first-half shortfall
Segment resultsSegment ZENMU Virtual Drive / Net Sales ¥257 million / Year-on-year (%) 32.5 / Profit Not disclosed, Segment ZENMU Engine / Net Sales ¥12 million / Year-on-year (%) -4.3 / Profit Not disclosed, Segment QueryAhead® / Net Sales ¥6 million / Year-on-year (%) -67 / Profit Not disclosed, Segment Other / Net Sales ¥29 million / Year-on-year (%) Not disclosed / Profit Not disclosed
Breakdown of Factors Affecting the ChangeFactors Increase in revenue / Amount ¥1 million, Factors Elimination of IPO-related expenses / Amount ¥14 million, Factors Decrease in advertising and marketing expenses / Amount ¥5 million, Factors Increase in personnel and recruitment expenses / Amount ¥-41 million, Factors Increase in R&D expenses / Amount ¥-12 million, Factors Higher other SG&A expenses / Amount ¥-27 million
Key KPIsIndicator name Number of ZVD licenses / Value 117,076 Licensing / Year on year against the same period last year Growing steadily, Indicator name Number of ZVD subscription-contract licenses / Value 73,073 Licensing / Year on year against the same period last year Not disclosed, Indicator name Net churn rate / Value 0.4 % / Year on year against the same period last year Not disclosed, Indicator name Stock revenue ratio / Value 69.3 % / Year on year against the same period last year Not disclosed, Indicator name Number of ZENMU Virtual Drive users / Value 11 10,000 people / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 40 people / Change during the period 4 more people than at the end of the previous fiscal year / Hiring plan Not disclosed
Assumptions Underlying the Business OutlookTiming of large business opportunities is uneven, with a concentration in the second half, seasonality in new orders, accumulation of recurring subscription revenue, and front-loaded expenses from growth investments in recruitment and marketing. Numerical assumptions: not disclosed.
Medium-term management plan targetsName triple 30 Plan / Target fiscal year Fiscal year ending December 2030 / Target value 30% revenue CAGR (2026–2030), 30% operating margin / Long-Term Targets A company with ¥10 billion in revenue
Market Size / ShareIndicator Domestic white-collar workers / Value 2,700 10,000 people, Indicator Number of domestic VDI users / Value 802 10,000 people, Indicator Number of ZENMU Virtual Drive users / Value 11 10,000 people, Indicator Global confidential computing market size (2024) / Value $16–18 billion, Indicator Estimated global confidential computing market size (2026) / Value $52–54 billion, Indicator Growth segment of the global confidential computing market, where cloud is mainstream / Value 71 %
New initiativesProviding co-developed technology to AIHOBS's healthcare digital transformation platform, Joint development for implementing secret-sharing technology in NerveNet, Joint development and patent filing for a secret-sharing × RAG solution, Business alliance and customer-referral agreement among three companies with MintWave and TMI Privacy & Security Consulting, Beginning development of the Mac version of ZVD, Beginning development of a cloud data protection product, Appointing Associate Professor Murakami Takao (村上 隆夫) of the Institute of Statistical Mathematics as an adviser, Signing a strategic memorandum of understanding with BigObject
Items this document does not state (10)
Unit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

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 cited orders scheduled for the second quarter being pushed back to the fourth quarter, the reaction to an unusually high number of flow-based projects in the first quarter of the previous fiscal year, investments in personnel and the strengthening of its sales structure to support growth, expansion of external resources, and increased outsourced development to enhance its products.

How to read this page

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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.
Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026 | ZenmuTech,Inc. (338A) timely disclosure | Komori