Worth reading
68In focus
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
46.5
Year-on-year change in operating profit (%)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AFirst quarter of the fiscal year ending February 20278 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,110 million+11.5%
Operating profit¥65 million+46.5%
Net income¥-68 million
Operating profit margin3.1 %
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 Sales24.8%
Operating profit14.2%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
A strong start, exceeding the internal plan / Progressing as expected while exceeding the internal planKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Assessment of first-quarter results: Revenue and operating profit reached record highs for a first quarter and exceeded the internal plan. Net income was negative due to an extraordinary loss associated with the sale of subsidiaries, but the full-year forecast remains unchanged.
- Progress toward the full-year forecast: 24.8% for revenue and 14.2% for operating profit. Taking into account double rent and other costs in the first half, progress is in line with expectations and is projected to exceed the internal plan.
- Declines in Digital Security revenue and earnings: Factors included short-term projects falling short of plan, cancellations of existing projects, double rent and other costs, and upfront investment in AI governance. IRI MRR increased from ¥77 million to ¥82 million.
- Measures to accelerate growth: The company will generate leads through its internal fraud assessment service and internal fraud hotline, while increasing marketing investment and concentrating management resources on Digital Security.
- Market capitalization target: The company aims to achieve operating profit of ¥900 million and net income of more than ¥500 million in the fiscal year ending February 2029, targeting a valuation of 20x PER and a market capitalization of ¥10 billion.
- Drivers of earnings growth: Lower amortization of goodwill following the sale of subsidiaries, optimization of administrative costs and personnel expenses following the exclusion of the subsidiaries from consolidation, and higher earnings in Digital Security.
- Transition to a net cash position: Achieving the earnings target, securing operating cash flow, and carving out the former DX Promotion business are important.
- Use of generative AI: The company will use AI for IRI log analysis and social media information analysis to improve productivity.
- Demand for AI governance: Inquiries are increasing regarding monitoring AI agents and monitoring reputational information in AI search results, and the company aims to generate upselling opportunities through its existing services.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Temporary double rent and other costs associated with the office relocation are expected in the first halfNew initiatives
- Establishment of an organization to provide AI governance services and a sales organization
- Risk training for AI governance
- Generative AI misinformation monitoring service
- Internal fraud assessment service
- Internal fraud hotline
- Use of generative AI for IRI analysis and social media information analysis
Key KPIsA metric the company considers important as a management benchmark.
- IRI business MRRValue77, 82Year on year against the same period last yearIncreased
- Number of IRI IDs28.2 10,000 IDs as of May 2026Year on year against the same period last yearDecreased
Segment results
Digital Security
Net Sales
¥688 million
yoy_change–¥1 million
Operating profit
¥215 million
yoy_change-¥49 million
Medium-term management plan targets
Target fiscal yearFiscal year ending February 2029
Operating profit¥900 million
Net income for the current fiscal yearMore than ¥500 million
Market Size / Share
Market capitalization target¥10 billion (fiscal year ending February 2029, based on a target valuation of 20x PER)
| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending February 2027 |
| Net Sales | ¥2,110 million (YoY +11.5%) |
| Operating profit | ¥65 million (YoY +46.5%) |
| Net income | ¥-68 million |
| Operating profit margin | 3.1 % |
| Progress against full-year forecast | Net Sales 24.8% / Operating profit 14.2% |
| Self-assessment against the plan | A strong start, exceeding the internal plan / Progressing as expected while exceeding the internal plan |
| Segment results | Digital Security Net Sales ¥688 million / Operating profit ¥215 million |
| Key KPIs | Indicator name IRI business MRR / Value 77, 82 / Year on year against the same period last year Increased, Indicator name Number of IRI IDs / Value 28.2 10,000 IDs (as of May 2026) / Year on year against the same period last year Decreased |
| Assumptions Underlying the Business Outlook | Temporary double rent and other costs associated with the office relocation are expected in the first half |
| Medium-term management plan targets | Target fiscal year Fiscal year ending February 2029 / Operating profit ¥900 million / Net income for the current fiscal year More than ¥500 million |
| Market Size / Share | Market capitalization target ¥10 billion (fiscal year ending February 2029, based on a target valuation of 20x PER) |
| Key points of the Q&A | Assessment of first-quarter results: Revenue and operating profit reached record highs for a first quarter and exceeded the internal plan. Net income was negative due to an extraordinary loss associated with the sale of subsidiaries, but the full-year forecast remains unchanged., Progress toward the full-year forecast: 24.8% for revenue and 14.2% for operating profit. Taking into account double rent and other costs in the first half, progress is in line with expectations and is projected to exceed the internal plan., Declines in Digital Security revenue and earnings: Factors included short-term projects falling short of plan, cancellations of existing projects, double rent and other costs, and upfront investment in AI governance. IRI MRR increased from ¥77 million to ¥82 million., Measures to accelerate growth: The company will generate leads through its internal fraud assessment service and internal fraud hotline, while increasing marketing investment and concentrating management resources on Digital Security., Market capitalization target: The company aims to achieve operating profit of ¥900 million and net income of more than ¥500 million in the fiscal year ending February 2029, targeting a valuation of 20x PER and a market capitalization of ¥10 billion., Drivers of earnings growth: Lower amortization of goodwill following the sale of subsidiaries, optimization of administrative costs and personnel expenses following the exclusion of the subsidiaries from consolidation, and higher earnings in Digital Security., Transition to a net cash position: Achieving the earnings target, securing operating cash flow, and carving out the former DX Promotion business are important., Use of generative AI: The company will use AI for IRI log analysis and social media information analysis to improve productivity., Demand for AI governance: Inquiries are increasing regarding monitoring AI agents and monitoring reputational information in AI search results, and the company aims to generate upselling opportunities through its existing services. |
| New initiatives | Establishment of an organization to provide AI governance services and a sales organization, Risk training for AI governance, Generative AI misinformation monitoring service, Internal fraud assessment service, Internal fraud hotline, Use of generative AI for IRI analysis and social media information analysis |
Items this document does not state (16)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital 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.Revenue increased and MRR projects in the IRI business accumulated, while the company cited double rent and other costs associated with the office relocation, as well as upfront investment in AI governance services, as factors behind the decline in Digital Security earnings. It attributed the net loss to an extraordinary loss associated with the sale of JAPANDX and other subsidiaries.
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.