Transforming the business model by increasing the proportion of recurring revenue and migrating to the cloud
First written in FY2018. 8 of 22 entries say "Advanced", first in FY2019-Q1. Latest entry: 2026-04-30.
The whole theme swung hardest in 2021: 1 of 12 companies on the "Worse" side.
8 other companies' latest entry also says "Advanced".
- 2026-04-30AdvancedFinancial Results Presentation
「The stock-based revenue ratio has remained stable and exceeded 40% for the first time this fiscal year, while the absolute amount of stock-based revenue has also continued to rise steadily, albeit gradually」
Although the previous 70% target was not reiterated, the stock-based revenue ratio exceeded 40% for the first time this fiscal year, and stock-based revenue also increased. - FY2024DroppedAnnual report
「The Group has positioned the following 6 items as its key management indicators: revenue, net income, operating profit per employee, software gross profit, ROE and DOE (dividend on equity).」
The previous 70% target for the recurring revenue ratio was not included as a key management indicator in BE GLOBAL 2028 for the fiscal year, and was replaced by indicators such as software gross profit and operating profit per employee. - FY2023-Q3AdvancedAnnual report
「Under the medium-term management plan, the recurring revenue ratio, one of the management indicators, was 34.4%, up 0.3 percentage points from the same quarter of the previous year. The outsourcing business, which consistently maintains a recurring revenue ratio of around 90%, posted a high growth rate, increasing its share of group-wide revenue. Total recurring revenue also continued to grow steadily, increasing 18.6% year on year.」
The recurring revenue ratio rose 0.3 percentage points year on year to 34.4%, while total recurring revenue increased 18.6% year on year. The company attributed this to strong growth in the outsourcing business and its increased share of group revenue. - FY2023-Q2Slightly lower recurring revenue ratio, higher total recurring revenueAnnual report
「Under the medium-term management plan, the recurring revenue ratio, one of the management indicators, was 34.6%, down 0.2 percentage points from the same quarter of the previous year. In the group governance and digital transformation promotion businesses, which are larger in scale, the sales mix shifted toward consulting services due to the impact of large projects and other factors, outweighing the effect of higher revenue from the outsourcing business, which consistently maintains a recurring revenue ratio of around 90%. Total recurring revenue, however, continued to grow steadily, increasing 19.6% year on year.」
The recurring revenue ratio was 34.6%, down 0.2 percentage points year on year, while total recurring revenue increased 19.6% year on year. The company explained that the higher sales mix of consulting services resulting from large projects and other factors was the reason for the decline in the ratio. - FY2023-Q1Lower recurring revenue ratio, higher total recurring revenueAnnual report
「Total recurring revenue continued to grow steadily, increasing 19.5% year on year.」
The recurring revenue ratio was 35.5%, down 1.4 percentage points from the same quarter of the previous year, while total recurring revenue increased 19.5% year on year. The company explained that higher revenue from the group governance and digital transformation promotion businesses more than offset the upward impact of the outsourcing business's recurring revenue ratio. - FY2022WorsenedAnnual report
「The recurring revenue ratio for the consolidated fiscal year was 34.6%, down 1.4 percentage points from the previous consolidated fiscal year.」
Against a target recurring revenue ratio of 70%, the full-year result was 34.6%, down 1.4 percentage points from the previous fiscal year. Although total recurring revenue increased 10.7%, the company indicated that achieving the target would be difficult. - FY2022-Q3Decline in the stock revenue ratioAnnual report
「Under the medium-term management plan, improving the recurring revenue ratio, which is one of the management targets, resulted in a ratio of 34.1%, down 2.0 percentage points from the same quarter of the previous year, partly due to the impact of the decline in the digital transformation promotion business following the application of the revenue recognition accounting standards and other standards. Total recurring revenue, however, increased 9.2% year on year.」
The recurring revenue ratio was 34.1%, down 2.0 percentage points year on year. Total recurring revenue, however, increased 9.2% year on year. - FY2022-Q2Decline in the stock revenue ratioAnnual report
「Under the medium-term management plan, improving the recurring revenue ratio, which is one of the management targets, resulted in a ratio of 34.8%, down 2.1 percentage points from the same quarter of the previous year, partly due to the impact of the decline in the digital transformation promotion business following the application of the revenue recognition accounting standards and other standards. Total recurring revenue, however, increased 8.0% year on year.」
The recurring revenue ratio was 34.8%, down 2.1 percentage points year on year. Total recurring revenue, however, increased 8.0% year on year. - FY2022-Q1AdvancedAnnual report
「Under the medium-term management plan, improving the recurring revenue ratio, which is one of the management targets, resulted in a ratio of 36.9%, up 0.8 percentage points from the same quarter of the previous year. Although the ratio declined in the digital transformation promotion business due to the impact of applying the revenue recognition accounting standards and other standards, it improved as a result of growth in the outsourcing business, which consistently maintains a recurring revenue ratio of around 90%, and higher cloud revenue in the group governance business, among other factors.」
The recurring revenue ratio was 36.9%, up 0.8 percentage points year on year. The company attributed this to growth in the outsourcing business and higher cloud revenue in the group governance business. - FY2021AdvancedAnnual report
「The recurring revenue ratio for the consolidated fiscal year was 36.0%, up 3.4 percentage points from the previous consolidated fiscal year.」
Against a target recurring revenue ratio of 70%, the ratio was 36.0% for the fiscal year, up 3.4 percentage points year on year. The company attributed this to growth in the outsourcing business and higher cloud revenue. - FY2021-Q3AdvancedAnnual report
「Improving the recurring revenue ratio, including revenue generated continuously such as software maintenance fees, resulted in a ratio of 36.2%, up 3.4 percentage points from the same quarter of the previous year. In addition to growth in the outsourcing business, which consistently maintains a recurring revenue ratio of around 90%, the ratio also improved in the consolidated accounting-related and business intelligence businesses due to higher cloud revenue and other factors. Total recurring revenue also increased 14.1% year on year.」
The recurring revenue ratio rose 3.4 percentage points year on year to 36.2%, while total recurring revenue increased 14.1%. The company attributed this to growth in the outsourcing business and higher cloud revenue in the other two businesses. - FY2021-Q2AdvancedAnnual report
「Under the medium-term management plan, improving the recurring revenue ratio, which is one of the management targets, resulted in a ratio of 36.9%, up 4.2 percentage points from the same quarter of the previous year. In addition to growth in the outsourcing business, which consistently maintains a recurring revenue ratio of around 90%, the ratio also improved in the consolidated accounting-related and business intelligence businesses due to higher cloud revenue and other factors. Total recurring revenue also increased 14.3% year on year.」
The recurring revenue ratio rose 4.2 percentage points year on year to 36.9%, while total recurring revenue increased 14.3%. The company attributed this to growth in the outsourcing business and higher cloud revenue in the other two businesses. - FY2021-Q1AdvancedAnnual report
「In addition to growth in the Outsourcing Business, which consistently maintains a stock revenue ratio of around 90%, the ratio increased in the Consolidated Accounting-Related Business and Business Intelligence Business as cloud revenue grew. As a result, the ratio rose 5.9 percentage points year on year to 38.6%, while total stock revenue increased 14.3% year on year.」
The stock revenue ratio rose 5.9 percentage points from 32.7% in the same quarter of the previous year to 38.6%. The company attributed this to growth in the Outsourcing Business and higher cloud revenue in the Consolidated Accounting-Related Business and Business Intelligence Business. - FY2020RestatedAnnual report
「The company has set a target of increasing the stock revenue ratio to 70%. The ratio for the current consolidated fiscal year was 32.6%, broadly unchanged from the previous consolidated fiscal year.」
The company stated the 70% target and stock compensation grant limits of at least 50% for the fiscal year ending June 2019, at least 60% for the fiscal year ending June 2020 and at least 70% from the fiscal year ending June 2021 onward. The actual ratio was broadly flat at 32.6%. - FY2020-Q3Stock revenue ratio broadly flatAnnual report
「The medium-term management plan announced in September 2018 identifies increasing the stock revenue ratio—recurring revenue such as software maintenance fees—as one of the company’s management objectives. Although results are beginning to emerge, including higher cloud revenue in the Consolidated Accounting-Related Business, strong non-stock revenue, particularly in the Business Intelligence Business, kept the ratio broadly flat at 32.0%, despite a 16.7% year-on-year increase in total stock revenue.」
Although cloud revenue increased and results from the shift to stock revenue are beginning to emerge, strong non-stock revenue left the stock revenue ratio broadly flat at 32.0%. - FY2020-Q2Decline in the stock revenue ratioAnnual report
「The medium-term management plan announced in September 2018 identifies increasing the stock revenue ratio—recurring revenue such as software maintenance fees—as one of the company’s management objectives. Although results are beginning to emerge, including higher cloud revenue in the Consolidated Accounting-Related Business, strong non-stock revenue, particularly in the Business Intelligence Business, kept the ratio broadly flat at 31.9%, despite a 16.1% year-on-year increase in total stock revenue.」
Although results from the shift to stock revenue, including higher cloud revenue, are beginning to emerge, strong non-stock revenue caused the stock revenue ratio to decline from 32.7% in the previous quarter to 31.9%. - FY2020-Q1Stock revenue ratio broadly flatAnnual report
「Although results are beginning to emerge, including higher cloud product revenue in the Consolidated Accounting-Related Business, the stock revenue ratio was broadly flat at 32.7% because non-stock revenue, particularly in the Business Intelligence Business, performed strongly. Total stock revenue increased 16.1% year on year.」
Although results from the shift to stock revenue, including higher cloud product revenue, are beginning to emerge, strong non-stock revenue kept the stock revenue ratio at 32.7%, broadly flat. - FY2019Full-year decline from the target ratio confirmedAnnual report
「The Group has set a target of increasing the stock revenue ratio—the proportion of recurring revenue, such as software maintenance fees, in total revenue—to 70% during the medium-term plan period in order to transform its business model. The stock revenue ratio for the current consolidated fiscal year was 31.4%, slightly lower than in the previous consolidated fiscal year. However, the Group explained that this reflected its current preparatory phase for a substantial future increase and the strong performance of non-stock service revenue, particularly from large projects. Total stock revenue increased significantly, by 11.8% year on year, and the Group does not believe that achieving the target has become completely difficult. It will continue working to transform its business model.」
The company maintained its 70% stock revenue ratio target, although the full-year ratio was 31.4%, slightly lower than in the previous fiscal year. It explained that total stock revenue increased 11.8% and that it would continue transforming its business model, including migration to the cloud and a shift to value-based models. - FY2019-Q3Flat stock revenue ratioAnnual report
「The medium-term management plan announced in September 2018 identifies increasing the stock revenue ratio—recurring revenue such as software maintenance fees—as one of the company’s management objectives. In the third quarter, total stock revenue increased, but the ratio was broadly flat at 30.6%, as non-stock service revenue, mainly from large projects, performed even more strongly.」
Total stock revenue increased, but non-stock service revenue performed even more strongly, leaving the stock revenue ratio broadly flat at 30.6%, compared with 30.7% in the second quarter of the previous fiscal year. - FY2019-Q2Decline in the stock revenue ratioAnnual report
「The new medium-term management plan announced in September 2018 identifies increasing the stock revenue ratio—recurring revenue such as software maintenance fees—as one of the company’s management objectives. In the second quarter of the current fiscal year, total stock revenue increased, but the ratio remained at 30.7%, partly because non-stock service revenue, mainly from large projects, performed even more strongly.」
The company reconfirmed its target of increasing the stock revenue ratio, while the ratio declined from 32.9% in the first quarter to 30.7%. It explained that total stock revenue increased, but non-stock service revenue performed even more strongly. - FY2019-Q1AdvancedAnnual report
「The new medium-term management plan announced in September 2018 identifies increasing the stock revenue ratio as one of the company’s management objectives. The stock revenue ratio in the first quarter of the current fiscal year was 32.9%.」
The company reported the first actual result for its stock revenue ratio target, recording 32.9% for the first quarter of the current fiscal year. - FY2018First statedAnnual report
「The medium-term management plan sets the goal of steadily increasing the stock revenue ratio, defined as the proportion of recurring revenue in total revenue. To achieve this, the company intends to accelerate the expansion of the Outsourcing Business and promote the transition of its other businesses to the cloud and changes to their business models.」
The company newly set out a goal of increasing the proportion of recurring revenue, citing expansion of the Outsourcing Business, migration of other businesses to the cloud and business model transformation as the means of achieving it.