SI Object Browser PM’s Shift to a Cloud Subscription Model and Expansion of the Recurring-Revenue Business

「During the current interim consolidated accounting period, new customer acquisition and upselling to existing customers progressed steadily, and the number of large projects increased. As a result, MRR, the business's most important KPI, rose 7.7% from ¥37.973 million at the end of the previous interim period to ¥40.897 million, steadily expanding the stable recurring-revenue base.」

「During the consolidated fiscal year, the successful acquisition of new OBPM Neo customers and upselling to existing customers increased MRR by 10.7% from ¥36.887 million at the end of the previous consolidated fiscal year to ¥40.820 million, steadily expanding the foundation for stock revenue.」

「MRR (Monthly Recurring Revenue) rose 10.7% from ¥36,887 thousand at the end of the previous consolidated fiscal year to ¥40,820 thousand, steadily expanding the foundation for recurring revenue.」

「During the interim consolidated accounting period, MRR for OBPM Neo increased through additional projects and an increase in new contracts, rising from ¥34.996 million at the end of the previous interim consolidated accounting period to ¥37.973 million at the end of the current interim consolidated accounting period, an increase of ¥2.977 million.」

「MRR for the OBPM Neo project management tool increased by ¥406,000 in the second quarter consolidated accounting period from the first quarter consolidated accounting period, due to additional projects from existing major IT companies and an increase in new contracts.」

「MRR for the project management tool OBPM Neo increased by ¥1.630 million from the previous fourth quarter as demand grew among IT companies handling large-scale core system renewals and digital transformation projects.」

「MRR for OBPM Neo also increased by approximately ¥5 million from the previous fiscal year as inquiries increased following the resumption of various marketing initiatives that had been suspended because of the COVID-19 pandemic.」

「In particular, for the integrated project management tool OBPM Neo, MRR increased by ¥1.518 million from the previous quarter due to an increase in new contracts and additional licenses purchased by existing customers.」

「Recurring revenue from OBPM Neo increased by slightly more than 13% year on year.」

「The number of contracted user licenses for OBPM Neo increased by slightly more than 3% from the end of the previous fiscal year.」

「In March 2021, we renewed the product from the previous outright-purchase model to the OBPM Neo cloud service model, and cumulative implementations have reached approximately 250 companies. Although the change in sales model initially caused revenue growth to slow temporarily, the number of contracted companies has been increasing steadily, and we are generating stable recurring revenue.」

「As recurring revenue from OBPM Neo grew steadily, revenue for the cumulative third quarter was ¥519.874 million, up 0.7% year on year, and operating profit was ¥126.518 million, up 8.9%.」

「In March 2021, we renewed the product as the OBPM Neo cloud service model, and the cumulative number of customer implementations has reached approximately 240 companies. Because the product is a subscription-based cloud service, revenue growth is slower in the short term than under the previous outright-sale model, but the number of new contracts is progressing steadily, and we expect to secure stable revenue over the medium to long term.」

「In June 2022, we also began selling the OBPM Neo Basic Edition Self Plan, which can be used easily by paying only a monthly fee. We aim to develop a new customer segment seeking to limit initial investment.」

「OBPM Neo, the cloud service launched in March 2021, is being used increasingly in manufacturing and engineering as well as in the IT industry. Because cloud services use a subscription model, revenue growth is slower in the short term than under the previous outright-sale model. The company has been affected by this because the current fiscal year is the first year of cloud sales, but the number of new contracts is progressing steadily, and we expect to achieve substantial revenue growth over the medium to long term.」

「Because cloud services use a subscription model, revenue growth is slower in the short term than under the previous outright-sale model. The company has been affected by this because the current fiscal year is the first year of cloud sales, but the number of new contracts is progressing steadily at a pace ahead of plan, and we expect to achieve substantial revenue growth over the medium to long term.」

「OBPM Neo, which began being sold as a cloud service in March 2021 after 2 years of development, is being used not only in the IT industry but also in manufacturing and engineering, enabling us to rapidly expand the market. However, because cloud services use a subscription model, revenue growth will slow temporarily, followed by substantial growth over the medium to long term.」

「In March 2021, we changed the name to the new brand OBPM Neo and began selling the renewed product. OBPM Neo is a fully web-enabled cloud service that project members can use anytime and anywhere, without dependence on the client environment. This will contribute to corporate initiatives such as DX projects conducted in coordination with overseas sites and the expansion of telework. With the launch of OBPM Neo, we plan to fully transition to the subscription model from fiscal 2021.」

「The integrated project management tool SI Object Browser PM has steadily gained market penetration since its launch and has been highly regarded by the market, with more than 200 companies having adopted it. The product's strength is its integration of the PMBOK knowledge areas, the de facto global standard for project management. We also began offering a cloud service in 2010, and the number of contracts has been growing steadily. We are currently rebuilding the product as a fully web-based version and plan to fully transition to the subscription model from fiscal 2021, when the new version is launched.」

「Although we have historically focused on on-premises installations on customers' servers, installations under a subscription model, in which customers are billed a fixed monthly fee for cloud service usage, are increasing. The strategy is to fully transition to the subscription model in fiscal 2021 and raise the recurring-revenue ratio.」

「Although we have historically focused on on-premises installations on customers' servers, installations under a subscription model, in which customers are billed a fixed monthly fee for cloud service usage, are increasing. The strategy is to fully transition to the subscription model in fiscal 2021 and raise the recurring-revenue ratio.」

「Although we have historically focused on on-premises installations on customers' servers, this year we have increased the provision of cloud services under a subscription model, steadily implementing the expansion of the recurring-revenue business set out in the medium-term management plan.」