Strengthening the earnings structure of existing businesses and reinvesting profits

「In the fiscal year ending September 2025, we launched the AX Strategy Office and have continued to generate funds for growth investment in our core businesses by achieving further productivity gains through company-wide AI/AX investment. As specific results, we generated 160 AI use cases and reduced working hours by 9,977 hours per year in the current fiscal year.」

「Based on the employee time-allocation data entered, our consulting team identifies non-core tasks that employees do not need to perform and makes proposals to promote outsourcing or DX implementation.」

「We have formalized our management expertise as “CW Growth Driver” and provide it, together with our assets, to group companies.」

「We also launched a consulting business and are building a structure that provides end-to-end support, from proposing solutions to companies' management issues through to providing the personnel who implement those measures. We are marketing externally the productivity-enhancement culture we have developed over many years as a management model and promoting management improvement and digital transformation.」

「The company will apply the management improvement expertise it has developed over the past 3 years and seek an early transition from an investment-led, loss-making management model to a model of reinvesting profits generated through productivity improvements.」

「To achieve its medium- to long-term target of maintaining gross profit CAGR of at least 20% for 10 consecutive years, the group aims to grow revenue and expand profits by increasing personnel and improving productivity in its core matching business.」

「In the fiscal year ending September 2022, the final year of the 3-year productivity improvement plan, revenue and gross profit grew by more than 30%, while operating profit also expanded substantially to a record high.」

「As a result, during the cumulative first nine months of the current fiscal year, all key metrics for the matching business, including GMV, revenue and gross profit, progressed steadily against the revised disclosed forecasts. Continued productivity improvement initiatives enabled the company to achieve an operating profit for the third consecutive quarter.」

「In the matching business during the six-month period of the current second quarter, continued web advertising investment and the strengthening of the sales organization through recruitment resulted in distribution transaction value, revenue and gross profit all progressing steadily against the revised forecasts disclosed by the company. In addition, efforts to improve productivity resulted in the highest quarterly operating profit on record.」

「In the matching business during the three-month period of the current first quarter, continued web advertising investment and the strengthening of the sales organization through recruitment resulted in distribution transaction value, revenue and gross profit all exceeding both the previous year’s level and the forecast disclosed at the beginning of the fiscal year. In addition, efforts to further improve productivity resulted in the highest quarterly operating profit on record.」

「In the fiscal year ending September 2021, the company made significant progress in revenue growth and achieving profitability by concentrating investment on the matching business while advancing its productivity improvement policy.」

「In the matching business during the nine-month period of the current fiscal year, continued investment focused on selected priorities and the implementation of the productivity improvement project resulted in total contract value, revenue and gross profit all progressing above the forecasts disclosed by the company.」

「Selling, general and administrative expenses included continued investment in web advertising in line with the initial plan and investments made in accordance with the plan for the fiscal year. In addition, ongoing reviews of payment processing fees and efforts under the productivity improvement project resulted in operating profit exceeding the initial plan.」

「We worked to improve productivity in expenses other than advertising and promotional expenses. Cost reductions and the improvement in the top-line growth rate progressed beyond both the previous year’s level and the forecast disclosed at the beginning of the fiscal year, enabling us to achieve an operating profit.」

「We worked to improve productivity in expenses other than advertising and promotional expenses and succeeded in reducing indirect selling, general and administrative expenses by ¥350 million from the initial budget. By reinvesting the funds released, we achieved the planned level of gross profit and narrowed the operating loss compared with the initial plan.」

「In the contracted business during the nine-month period of the current third quarter, operations were scaled back as initially projected in the third quarter. However, deliveries and acceptance inspections for system development projects through the first half progressed better than expected, resulting in revenue for the nine-month period exceeding the initial forecast and the business maintaining profitability.」

「Although the plan for the current fiscal year calls for the contracted business to be scaled back and made profitable, deliveries for contracted development projects for 株式会社電縁 and アイ・オーシステムインテグレーション株式会社 took place as scheduled in the second quarter. As a result, revenue was flat year on year at ¥1,688,699 thousand, up 1.4%, while a decrease in cost of sales resulted in segment profit of ¥78,352 thousand, up 12.8%.」

「Although the plan for the current fiscal year calls for the contracted business to be scaled back and made profitable, revenue was flat year on year in the first quarter because deliveries for contracted development projects for 株式会社電縁 and アイ・オーシステムインテグレーション株式会社 took place during the quarter. Revenue was ¥766,935 thousand, up 3.0% year on year, while a decrease in cost of sales resulted in segment profit of ¥11,479 thousand, up 36.4%.」

「Meanwhile, as a result of increased investment in the fiscal year ending September 2020, the company aims to raise the medium- to long-term growth rates of total contract value, revenue and gross profit to the 30% range, achieve a balanced combination of growth and profit generation, and pursue sustained business development.」

「In recent years, government-led work-style reform has expanded new ways for individuals to work, such as freelancing and side jobs, creating a significant tailwind for growth in the markets targeted by our businesses. Against this favorable backdrop, we are pursuing a strategy that prioritizes sustained business growth.」

「While continuing to invest actively in new businesses, we have improved cost efficiency in our existing businesses and have continued to generate an operating profit.」

「In the current consolidated fiscal year, the company achieved profitability in all businesses in its existing areas, including 「クラウドワークス」 and 「クラウドテック」, although」

「This was attributable to the continued increase in total contract value in the company’s core platform service, 「クラウドワークス」, despite restraining advertising and personnel expenses.」

「In 「クラウドワークス」, the company continued to increase total contract value while keeping advertising and personnel expenses under control.」

「While limiting advertising investment, we steadily increased the number of members, surpassing 1.5 million in September 2017.」

「In our existing businesses, we will seek to further improve productivity in order to achieve the greatest possible effect with minimal expense. We will reinvest the profits generated through these efforts in new business areas to pursue further growth.」