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Presentation materials for financial results4379Photosynth inc.Information and Communications, Services and Others

First-Quarter Financial Results Briefing for the Fiscal Year Ending December 2026 (Transcript)

In Q1 FY2026 December, quarterly revenue exceeded ¥1 billion for the first time, while year-on-year growth reaccelerated to 23.6%. ARPU and Churn Rate, which indicates customer retention, also reached record-high levels, while operating profit was flat year on year.

Worth reading
66In focus
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
23.6
Year on year (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Summary of Q&AFirst quarter of the fiscal year ending December 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales10 Over ¥100 million +23.6%quarterly
Operating profitAmount not stated0.0%
Results for the three months of the current quarterQuarterly revenue exceeded ¥1 billion. Operating profit was flat year on year. ARPU was ¥50,448 and Churn Rate was 0.92%.
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 Sales25%
Operating profit38.8% (described in the presentation as close to 40%)
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
On track
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. The timing of MIWA Akerun Technologies' move into profitability was not specifically disclosed, but profitability is expected during the period covered by the medium-term management plan.
  2. The revenue contribution of Migakun was not disclosed separately.
  3. Collaboration with the Hikari Tsushin Group could raise the current fiscal year's earnings forecast, but the company is currently prioritizing medium- to long-term results.
  4. Operating profit is progressing smoothly, but the full-year earnings forecast remains unchanged because the company will continue investing for growth from Q2 onward.
  5. Generative AI has had no negative impact on the business and is being used to improve productivity.
  6. The number of contracted companies has recently begun growing at an accelerating pace.
  7. There has been no material earnings impact from the situation in the Middle East to date, and the company has also secured inventories of components.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Higher recruitment costs, investments including marketing expenses, amortization of goodwill, share-based compensation, acquisition of large customers, and steady performance from MIWA Akerun Technologies and Migakun
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The business is a stock-based model weighted toward the second half, with revenue expected to accumulate toward the latter part of the fiscal year. Numerical assumptions were not disclosed.
New initiatives
  • Sales partner agreements and collaboration with companies across the Hikari Tsushin Group
  • Selection for AWS Japan's Physical AI Development Support Program
  • Initiatives spanning physical AI research and development through social implementation
  • Expanding Akerun deployments among large customers
Key KPIsA metric the company considers important as a management benchmark.
  • ARPU¥50,448 /company
    Year on year against the same period last yearUp 14%
  • Churn Rate0.92 %
  • Adjusted EBITDA
    Year on year against the same period last yearUp more than 20%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
ARPU was ¥50,448. The company explained that the number of contracted companies has recently begun growing at an accelerating pace, but did not disclose the figure.
Medium-term management plan targets
The company aims to more than double new revenue generated through collaboration with the Hikari Tsushin Group compared with its previous standalone level. MIWA Akerun Technologies is expected to become profitable during the period covered by the medium-term management plan.
Market Size / Share
The company explained that in 2026 it remained No. 1 in the number of companies adopting and users of smart locks and cloud-based access control systems. Market size figures were not disclosed.
Number of employees
The company said hiring was progressing smoothly, but the number of employees and changes therein were not disclosed.
Contents of this document
ItemDetails
Document typeSummary of Q&A
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Net Sales10 Over ¥100 million (quarterly) (YoY +23.6%)
Operating profit非開示 (YoY 0.0%)
Results for the three months of the current quarterQuarterly revenue exceeded ¥1 billion. Operating profit was flat year on year. ARPU was ¥50,448 and Churn Rate was 0.92%.
Progress against full-year forecastNet Sales 25% / Operating profit 38.8% (described in the presentation as close to 40%)
Self-assessment against the planOn track
Breakdown of Factors Affecting the ChangeHigher recruitment costs, investments including marketing expenses, amortization of goodwill, share-based compensation, acquisition of large customers, and steady performance from MIWA Akerun Technologies and Migakun
Key KPIsIndicator name ARPU / Value ¥50,448 /company / Year on year against the same period last year Up 14%, Indicator name Churn Rate / Value 0.92 % / Year on year against the same period last year Not disclosed, Indicator name Adjusted EBITDA / Value Not disclosed / Year on year against the same period last year Up more than 20%
Unit price and quantity metricsARPU was ¥50,448. The company explained that the number of contracted companies has recently begun growing at an accelerating pace, but did not disclose the figure.
Number of employeesThe company said hiring was progressing smoothly, but the number of employees and changes therein were not disclosed.
Assumptions Underlying the Business OutlookThe business is a stock-based model weighted toward the second half, with revenue expected to accumulate toward the latter part of the fiscal year. Numerical assumptions were not disclosed.
Medium-term management plan targetsThe company aims to more than double new revenue generated through collaboration with the Hikari Tsushin Group compared with its previous standalone level. MIWA Akerun Technologies is expected to become profitable during the period covered by the medium-term management plan.
Market Size / ShareThe company explained that in 2026 it remained No. 1 in the number of companies adopting and users of smart locks and cloud-based access control systems. Market size figures were not disclosed.
Key points of the Q&AThe timing of MIWA Akerun Technologies' move into profitability was not specifically disclosed, but profitability is expected during the period covered by the medium-term management plan., The revenue contribution of Migakun was not disclosed separately., Collaboration with the Hikari Tsushin Group could raise the current fiscal year's earnings forecast, but the company is currently prioritizing medium- to long-term results., Operating profit is progressing smoothly, but the full-year earnings forecast remains unchanged because the company will continue investing for growth from Q2 onward., Generative AI has had no negative impact on the business and is being used to improve productivity., The number of contracted companies has recently begun growing at an accelerating pace., There has been no material earnings impact from the situation in the Middle East to date, and the company has also secured inventories of components.
New initiativesSales partner agreements and collaboration with companies across the Hikari Tsushin Group, Selection for AWS Japan's Physical AI Development Support Program, Initiatives spanning physical AI research and development through social implementation, Expanding Akerun deployments among large customers
Items this document does not state (15)
Ordinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesFull-year earnings forecastSegment resultsNumber of stores and locationsRisk 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.

This was due to progress in acquiring large Akerun customers, as well as steady performance from MIWA Akerun Technologies and Migakun in the residential market. The company explained that operating profit was flat because of increases in recruitment costs, marketing expenses, amortization of goodwill and share-based compensation.

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.
First-Quarter Financial Results Briefing for the Fiscal Year Ending December 2026 (Transcript) | Photosynth inc. (4379) timely disclosure | Komori