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Financial Results Presentation3921NEOJAPAN Inc.Information and Communications, Services and Others

Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending January 2027

In Q1 FY2027/1, revenue, operating profit and net profit exceeded the year-earlier period and the company's plan, driven primarily by the software business. Growth in cloud services and user numbers, together with a higher gross margin and control of selling, general and administrative expenses, also contributed to the increase in profit.

Worth reading
79Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
4.1
Year-on-year revenue growth (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationFirst quarter of the fiscal year ending January 202714 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales2,077 Millions of yen+4.1%
Operating profit683 Millions of yen+6.2%
Ordinary income713 Millions of yen+9.0%
Net income487 Millions of yen+9.0%
Gross Profit Margin62.0%
Operating profit margin32.9%
Results for the three months of the current quarter
Net Sales
2,077 Millions of yen
Operating profit
683 Millions of yen
Ordinary income
713 Millions of yen
Profit attributable to owners of parent for the quarter
487 Millions of yen
Full-year earnings forecast
Net Sales
8,619 Millions of yen
Operating profit
2,680 Millions of yen
Ordinary income
2,742 Millions of yen
Profit attributable to owners of the parent
1,876 Millions of yen
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。
Net Sales24.1%
Operating profit25.5%
Ordinary income26.0%
Profit attributable to owners of parent for the quarter26.0%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing well and ahead of plan
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
The presentation covered shareholder returns and share buybacks, advertising expenses, the business impact of generative AI, assumptions underlying the full-year revenue plan, major version upgrades, the pricing structure and strategies for achieving the medium-term performance targets.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Consolidated revenue
Software business+¥81 million
Systems Development Services Business+¥11 million year on year
Overseas operations+¥2 million
Adjustments-¥13 million
Consolidated operating profit
Software business+¥42 million
Systems Development Services Business+¥2 million
Overseas operations-¥4 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Monthly cloud service revenueExpected to increase by approximately 9%
Technology DevelopmentIncludes an expected revenue decline of approximately ¥100 million
Systems Development Services BusinessRevenue is expected to remain at approximately the level of FY2025/1
New initiatives
  • Disclosure of three-year medium-term performance targets through FY2029/1
  • Implementation of AI functions and AI agents in desknet’s NEO
  • Launch of neoAI Chat for desknet’s
  • Establishment of a One Team structure among 3 ASEAN companies
  • Expansion of LiveX AI sales
  • Business partnerships with Brains Technology, ZETA/LIVEX AI and Recomot
Key KPIsA metric the company considers important as a management benchmark.
  • ARR5,458 Millions of yen
    Year on year against the same period last year+6.7%
  • Stock revenue1,351 Millions of yen
    Year on year against the same period last year+9.9%
  • Stock revenue ratio85.6 %
  • Cloud users56.9 10,000 users
    Year on year against the same period last year+3.8%
  • Cumulative product sales469.5 10,000 users
    Year on year against the same period last year+2.3%
  • Cloud churn rate0.21 %
  • AppSuite adoption rate21 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • ARPU¥588.6 /user/month
    Year on year against the same period last year+6.4%
  • Cloud users56.9 10,000 users
    Year on year against the same period last year+3.8%
  • AppSuite cloud users11.9 10,000 users
    Year on year against the same period last year+32.2%
Segment results
Software business
Net Sales
1,577 Millions of yen+5.4%
Operating profit
695 Millions of yen+6.5%
Systems Development Services Business
Net Sales
479 Millions of yen+2.4%
Operating profit
12 Millions of yen+22.2%
Overseas operations
Net Sales
2 Millions of yen
Operating profit
-24 Millions of yen
Medium-term management plan targets
Final yearFiscal year ending January 2029
Net Sales
10,072 Millions of yen
Operating profit
3,144 Millions of yen
Average annual revenue growth rate7.0%
Compound annual growth rate of operating profit8.0%
Market Size / Share
Financial industryAdopted by more than 230 financial institutions
JAAdopted by 152 JAs, representing 30% nationwide
Adoption by local governments643
Adoption by public-sector organizations611
Number of employees
322 people
As ofAs of 31 January 2026
Annual Dividend
Annual Dividend
¥54
Interim Dividend
¥27
Year-end dividend
¥27
Payout ratio
Targeting 40% (FY2027/1 forecast: 40.3%)
Acquisition of treasury shares
No plans at present
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending January 2027
Net Sales2,077 Millions of yen (YoY +4.1%)
Operating profit683 Millions of yen (YoY +6.2%)
Ordinary income713 Millions of yen (YoY +9.0%)
Net income487 Millions of yen (YoY +9.0%)
Gross Profit Margin62.0%
Operating profit margin32.9%
Results for the three months of the current quarterNet Sales 2,077 Millions of yen / Operating profit 683 Millions of yen / Ordinary income 713 Millions of yen / Profit attributable to owners of parent for the quarter 487 Millions of yen
Full-year earnings forecastNet Sales 8,619 Millions of yen / Operating profit 2,680 Millions of yen / Ordinary income 2,742 Millions of yen / Profit attributable to owners of the parent 1,876 Millions of yen
Progress against full-year forecastNet Sales 24.1% / Operating profit 25.5% / Ordinary income 26.0% / Profit attributable to owners of parent for the quarter 26.0%
Self-assessment against the planProgressing well and ahead of plan
Segment resultsSoftware business Net Sales 1,577 Millions of yen (YoY +5.4%) / Operating profit 695 Millions of yen (YoY +6.5%) / Systems Development Services Business Net Sales 479 Millions of yen (YoY +2.4%) / Operating profit 12 Millions of yen (YoY +22.2%) / Overseas operations Net Sales 2 Millions of yen / Operating profit -24 Millions of yen
Breakdown of Factors Affecting the ChangeConsolidated revenue Software business +¥81 million / Systems Development Services Business +¥11 million year on year / Overseas operations +¥2 million / Adjustments -¥13 million / Consolidated operating profit Software business +¥42 million / Systems Development Services Business +¥2 million / Overseas operations -¥4 million
Key KPIsARR 5,458 Millions of yen, Stock revenue 1,351 Millions of yen, Stock revenue ratio 85.6 %, Cloud users 56.9 10,000 users, Cumulative product sales 469.5 10,000 users, Cloud churn rate 0.21 %, AppSuite adoption rate 21 %
Unit price and quantity metricsARPU ¥588.6 /user/month, Cloud users 56.9 10,000 users, AppSuite cloud users 11.9 10,000 users
Number of employees322 people
Assumptions Underlying the Business OutlookMonthly cloud service revenue Expected to increase by approximately 9% / Technology Development Includes an expected revenue decline of approximately ¥100 million / Systems Development Services Business Revenue is expected to remain at approximately the level of FY2025/1
Medium-term management plan targetsFinal year Fiscal year ending January 2029 / Net Sales 10,072 Millions of yen / Operating profit 3,144 Millions of yen / Average annual revenue growth rate 7.0% / Compound annual growth rate of operating profit 8.0%
Annual DividendAnnual Dividend ¥54 / Interim Dividend ¥27 / Year-end dividend ¥27
Payout ratioTargeting 40% (FY2027/1 forecast: 40.3%)
Acquisition of treasury sharesNo plans at present
Market Size / ShareFinancial industry Adopted by more than 230 financial institutions / JA Adopted by 152 JAs, representing 30% nationwide / Adoption by local governments 643 / Adoption by public-sector organizations 611
Key points of the Q&AThe presentation covered shareholder returns and share buybacks, advertising expenses, the business impact of generative AI, assumptions underlying the full-year revenue plan, major version upgrades, the pricing structure and strategies for achieving the medium-term performance targets.
New initiativesDisclosure of three-year medium-term performance targets through FY2029/1, Implementation of AI functions and AI agents in desknet’s NEO, Launch of neoAI Chat for desknet’s, Establishment of a One Team structure among 3 ASEAN companies, Expansion of LiveX AI sales, Business partnerships with Brains Technology, ZETA/LIVEX AI and Recomot
Items this document does not state (6)
Selling, general and administrative expensesNumber of stores and locationsRisk amount incorporated into the outlookFinancial targetsCapital expendituresOrders received and order backlog

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 cloud services and products of the software business and the system development services business exceeded plan, while revenue progressed steadily, the gross margin increased and selling, general and administrative expenses were kept under control. In the software business, cloud services grew as a result of factors including an increase in the number of users.

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.
Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending January 2027 | NEOJAPAN Inc. (3921) timely disclosure | Komori