Worth reading
57In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
193
Millions of yen (year-on-year change in revenue)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials for financial resultsSecond quarter of the fiscal year ending December 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,791 million+7.0%
Operating profit¥706 million-4.0%
Ordinary income¥701 million-4.0%
Net income¥454 million-5.0%
Full-year earnings forecast
Net Sales
¥6,000 million
Operating profit
¥1,601 million
Operating profit margin
26.7 %
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 Sales
96 %
Operating profit
95 %
Ordinary income
94 %
Net income for the current fiscal year
94 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Fell short of the second-quarter earnings forecast. However, progress against the full-year plan remains solid.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Personnel expenses¥120 million
- Cloud costs¥75 million
- Software amortization¥233 million
New initiatives
- Addition of onboarding and performance evaluation functions to Universal勤次郎, a workforce management platform
- Major renewal of the 勤次郎 Portal workforce management portal
- Accelerate the migration of existing on-premises customers to Universal Kintairo
- Strengthening the data integration, authentication and authorization infrastructure, including 勤次郎AuthLink
- Building a visualization, forecasting and decision-making platform through 勤次郎EX-workbench (provisional name)
Key KPIsA metric the company considers important as a management benchmark.
- Number of contracted companies2,734 companiesYear on year against the same period last year+242 companies
- Number of cloud subscription licenses895,951 LicensingYear on year against the same period last year+176 thousand
- Recurring revenue ratio76.1 %Year on year against the same period last year+7.3%
- Cloud churn rate (monthly average)0.2 %
- Recurring Revenue¥2,079 millionYear on year against the same period last year+20.0%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- Number of cloud subscription licenses895,951 LicensingYear on year against the same period last year+176 thousand
- Number of contracted companies2,734 companiesYear on year against the same period last year+242 companies
- Enterprise ARPU¥391
Segment results
- Cloud BusinessNet Sales¥2,221 million (YoY +18.0%)
- On-premises businessNet Sales¥512 million (YoY -19.0%)
- Real Estate Leasing BusinessNet Sales¥57 million (YoY -26.0%)
Medium-term management plan targets
Fiscal year ending December 2026
Net Sales
¥6,000 million
Operating profit
¥1,601 million
Operating profit margin
26.7 %
Fiscal 2027 onward1 million cloud licenses
Market Size / Share
- Employment management¥30.3 billionCAGR8.5%
- Human resources and payroll management¥56.3 billionCAGR13.4%
- Talent Management¥49.8 billionCAGR13.1%
- Labor Management¥31 billionCAGR25.6%
| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | Second quarter of the fiscal year ending December 2026 |
| Net Sales | ¥2,791 million (YoY +7.0%) |
| Operating profit | ¥706 million (YoY -4.0%) |
| Ordinary income | ¥701 million (YoY -4.0%) |
| Net income | ¥454 million (YoY -5.0%) |
| Full-year earnings forecast | Net Sales ¥6,000 million / Operating profit ¥1,601 million / Operating profit margin 26.7 % |
| Progress against full-year forecast | Net Sales 96 % / Operating profit 95 % / Ordinary income 94 % / Net income for the current fiscal year 94 % |
| Self-assessment against the plan | Fell short of the second-quarter earnings forecast. However, progress against the full-year plan remains solid. |
| Segment results | Segment Cloud Business / Net Sales ¥2,221 million (YoY +18.0%), Segment On-premises business / Net Sales ¥512 million (YoY -19.0%), Segment Real Estate Leasing Business / Net Sales ¥57 million (YoY -26.0%) |
| Breakdown of Factors Affecting the Change | Factors Personnel expenses / Amount ¥120 million, Factors Cloud costs / Amount ¥75 million, Factors Software amortization / Amount ¥233 million |
| Key KPIs | Indicator name Number of contracted companies / Value 2,734 companies / Year on year against the same period last year +242 companies, Indicator name Number of cloud subscription licenses / Value 895,951 Licensing / Year on year against the same period last year +176 thousand, Indicator name Recurring revenue ratio / Value 76.1 % / Year on year against the same period last year 7.3 %, Indicator name Cloud churn rate (monthly average) / Value 0.2 % / Year on year against the same period last year Not disclosed, Indicator name Recurring Revenue / Value ¥2,079 million / Year on year against the same period last year ¥20 million |
| Unit price and quantity metrics | Indicator name Number of cloud subscription licenses / Value 895,951 Licensing / Year on year against the same period last year +176 thousand, Indicator name Number of contracted companies / Value 2,734 companies / Year on year against the same period last year +242 companies, Indicator name Enterprise ARPU / Value ¥391 / Year on year against the same period last year Not disclosed |
| Medium-term management plan targets | Fiscal year ending December 2026 Net Sales ¥6,000 million / Operating profit ¥1,601 million / Operating profit margin 26.7 % / Fiscal 2027 onward 1 million cloud licenses |
| Market Size / Share | Market Employment management / Market Size ¥30.3 billion / CAGR 8.5%, Market Human resources and payroll management / Market Size ¥56.3 billion / CAGR 13.4%, Market Talent Management / Market Size ¥49.8 billion / CAGR 13.1%, Market Labor Management / Market Size ¥31 billion / CAGR 25.6% |
| New initiatives | Addition of onboarding and performance evaluation functions to Universal勤次郎, a workforce management platform, Major renewal of the 勤次郎 Portal workforce management portal, Accelerate the migration of existing on-premises customers to Universal Kintairo, Strengthening the data integration, authentication and authorization infrastructure, including 勤次郎AuthLink, Building a visualization, forecasting and decision-making platform through 勤次郎EX-workbench (provisional name) |
Items this document does not state (15)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A
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 increase in cloud license revenue drove overall revenue, while on-premises revenue declined as customers shifted to the cloud. On the earnings side, upfront investment increased, including spending to enhance the cloud platform, software amortization associated with new feature releases and personnel expenses related to securing talent.
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.