Worth reading
58In focus
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
924
¥ millionWording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Earnings presentationSecond quarter of the fiscal year ending September 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,129 million+17.7%
Operating profit¥1,268 million+13.3%
Ordinary income¥1,268 million+8.7%
Net income¥884 million+11.7%
Gross Profit Margin86.8 %
Operating profit margin20.7 %
Selling, general and administrative expenses¥4,051 million
Full-year earnings forecast
Net Sales
¥12,834 million
HENNGE One business revenue
¥12,087 million
Professional Services and Other businesses revenue
¥747 million
Operating profit
¥2,057 million
Ordinary income
¥2,073 million
Net income
¥1,595 million
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 Sales47.8
HENNGE One business revenue47.9
Professional Services and Other businesses revenue45.1
Operating profit61.6
Ordinary income61.1
Net income55.5
Advertising expenses48.2
Operating expenses excluding advertising expenses44.7
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Quarter on quarter
Other SG&A expenses-37
Advertising expenses-99
Outsourcing and related expenses-28
Personnel expenses, etc.39
Research and development costs11
Cost of sales3
Versus the same period of the previous year
Other SG&A expense ratio-3
Advertising and promotion expense ratio1.8
Outsourcing expenses and other costs ratio-1
Personnel expenses and other costs ratio3.7
R&D expense ratio0.2
Cost-of-sales ratio-0.8
New initiatives
- Addition of e-learning functionality to HENNGE Tadrill
- Launch of the new HENNGE Endpoint & Managed Security service
- Pursuit of business investments, including M&A, to enhance the value of HENNGE One
Key KPIsA metric the company considers important as a management benchmark.
- Number of contracted companies3,731 companiesYear-on-year (%)17.3
- Number of contracted users296.4 10,000 peopleYear-on-year (%)11.9
- ARR¥119 millionYear-on-year (%)14.7
- ARPU¥4,016
- Average number of users794 people
- Average monthly churn rate over the latest 12 months0.26 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Number of contracted companies
3,731 companies
Number of contracted users
296.4 10,000 people
ARPU
¥4,016
Average number of users
794 people
Segment results
HENNGE One business
Net Sales
¥5,792 million+19.2%
Professional Services and Other businesses
Net Sales
¥337 million-2.8%
Medium-term management plan targets
FY2029
ARR
¥200 million
Operating profit margin
20 %
FY2035-FY2037
ARR
¥1,000 million
Potential operating margin
50 %
Market Size / Share
Number of companies in Japan with 30 or more employees
207,025 companies
Usage rate among companies listed on the Tokyo Stock Exchange
20.5 %
Number of employees
415 people
Change during the periodNet increase of 25 people from the end of the previous fiscal year
Hiring planAim for a net increase of at least 45 people company-wide
Acquisition of treasury shares
Reference was made to expenditures related to share buybacks. The amount, number of shares and period of the buyback authorization were not disclosed.| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Second quarter of the fiscal year ending September 2026 |
| Net Sales | ¥6,129 million (YoY +17.7%) |
| Operating profit | ¥1,268 million (YoY +13.3%) |
| Ordinary income | ¥1,268 million (YoY +8.7%) |
| Net income | ¥884 million (YoY +11.7%) |
| Gross Profit Margin | 86.8 % |
| Operating profit margin | 20.7 % |
| Selling, general and administrative expenses | ¥4,051 million |
| Full-year earnings forecast | Net Sales ¥12,834 million / HENNGE One business revenue ¥12,087 million / Professional Services and Other businesses revenue ¥747 million / Operating profit ¥2,057 million / Ordinary income ¥2,073 million / Net income ¥1,595 million |
| Progress against full-year forecast | Net Sales 47.8 / HENNGE One business revenue 47.9 / Professional Services and Other businesses revenue 45.1 / Operating profit 61.6 / Ordinary income 61.1 / Net income 55.5 / Advertising expenses 48.2 / Operating expenses excluding advertising expenses 44.7 |
| Segment results | HENNGE One business Net Sales ¥5,792 million (YoY +19.2%) / Profit Not disclosed / Professional Services and Other businesses Net Sales ¥337 million (YoY -2.8%) / Profit Not disclosed |
| Breakdown of Factors Affecting the Change | Quarter on quarter Other SG&A expenses -37 / Advertising expenses -99 / Outsourcing and related expenses -28 / Personnel expenses, etc. 39 / Research and development costs 11 / Cost of sales 3 / Versus the same period of the previous year Other SG&A expense ratio -3 / Advertising and promotion expense ratio 1.8 / Outsourcing expenses and other costs ratio -1 / Personnel expenses and other costs ratio 3.7 / R&D expense ratio 0.2 / Cost-of-sales ratio -0.8 |
| Key KPIs | Number of contracted companies 3,731 companies, Number of contracted users 296.4 10,000 people, ARR ¥119 million, ARPU ¥4,016, Average number of users 794 people, Average monthly churn rate over the latest 12 months 0.26 % |
| Unit price and quantity metrics | Number of contracted companies 3,731 companies / Number of contracted users 296.4 10,000 people / ARPU ¥4,016 / Average number of users 794 people |
| Number of employees | 415 people |
| Medium-term management plan targets | FY2029 ARR ¥200 million / Operating profit margin 20 % / FY2035-FY2037 ARR ¥1,000 million / Potential operating margin 50 % |
| Acquisition of treasury shares | Reference was made to expenditures related to share buybacks. The amount, number of shares and period of the buyback authorization were not disclosed. |
| Market Size / Share | Number of companies in Japan with 30 or more employees 207,025 companies / Usage rate among companies listed on the Tokyo Stock Exchange 20.5 % |
| New initiatives | Addition of e-learning functionality to HENNGE Tadrill, Launch of the new HENNGE Endpoint & Managed Security service, Pursuit of business investments, including M&A, to enhance the value of HENNGE One |
Items this document does not state (11)
Results for the three months of the current quarterSelf-assessment against the planNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioCapital 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 revenue was primarily driven by higher revenue from the HENNGE One business. The gross profit margin rose mainly due to higher ARPU. SG&A expenses increased due to higher personnel expenses and other costs associated with hiring and strengthening the organizational structure, as well as higher advertising expenses related to marketing and branding activities in Japan and overseas.
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.