Komori
Earnings presentation4493Cyber Security Cloud,Inc.Information and Communications, Services and Others

Notice Regarding the Publication of Q&A for the First Quarter of the Fiscal Year Ending December 2026

Gross margin increased by approximately 1.6 percentage points as cost efficiency improved through a review of server contracts and the use of AI. However, temporary factors, including strong vulnerability assessment results and tender projects, also contributed. For the full year, the company expects operating margin to remain at the initial forecast of 20.0%, reflecting higher R&D, advertising and personnel expenses.

Worth reading
52Recurring
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
1.6
Improvement in gross margin (percentage points)
Wording
Conditional
How definitive the wording is.

Contents of this document

Summary of Q&AFirst quarter of the fiscal year ending December 20266 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Operating profit26 Operating margin %
Operating profit margin26 %
Gross Profit MarginImproved by approximately 1.6 percentage points (actual margin: Not disclosed)
Results for the three months of the current quarterOperating margin: 26.0%; unit prices increased for approximately 30% of users. Other financial figures for the three-month period alone: Not disclosed
Full-year earnings forecast
Operating profit margin
20 %
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Reasons for the first-quarter operating margin reaching the high level of 26.0% and its sustainability
  2. Plans to revise prices for multiple products during the year
  3. Reasons for the moderation in CloudFastener's growth rate and its expansion strategy
  4. Progress in ARR growth, NRR, cross-selling and upselling
  5. Risk of earnings volatility from increased usage-based billing for WafCharm
  6. Status of M&A considerations
  7. Impact of generative AI and the latest AI models on the market and earnings
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Infrastructure cost optimization
  • Improved operational efficiency and reduced support hours through the use of AI
  • Record-high sales of vulnerability assessment services
  • Strong tender projects from government agencies and other customers

The company identifies the factors but does not state the amount attributable to each one.

New initiatives
  • Sequential price revisions for multiple products during the year
  • Plan design incorporating enhanced functionality and expanded support
  • Investment to support medium- to long-term growth
  • Continued sourcing of M&A opportunities
  • An AI strategy centered on three pillars: AI for Security, Security for AI, and AI-Native Organization
  • Establishment of an AI Trust Board
Key KPIsA metric the company considers important as a management benchmark.
  • ARR16.2 Year on year %
    Year on year against the same period last year+16.2%
  • Percentage of WafCharm users whose unit prices increasedApproximately 30%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Unit prices increased for approximately 30% of WafCharm users. Breakdown by volume metrics: Not disclosed
Medium-term management plan targets
The company has begun improving its products and expanding new services to achieve the medium-term management plan. Specific target figures: Not disclosed
Contents of this document
ItemDetails
Document typeSummary of Q&A
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Operating profit26 Operating margin (%)
Gross Profit MarginImproved by approximately 1.6 percentage points (actual margin: Not disclosed)
Operating profit margin26 %
Results for the three months of the current quarterOperating margin: 26.0%; unit prices increased for approximately 30% of users. Other financial figures for the three-month period alone: Not disclosed
Full-year earnings forecastOperating profit margin 20 %
Breakdown of Factors Affecting the ChangeFactors Infrastructure cost optimization / Amount Not disclosed, Factors Improved operational efficiency and reduced support hours through the use of AI / Amount Not disclosed, Factors Record-high sales of vulnerability assessment services / Amount Not disclosed, Factors Strong tender projects from government agencies and other customers / Amount Not disclosed
Key KPIsIndicator name ARR / Value 16.2 Year on year (%) / Year on year against the same period last year 16.2 Year on year (%), Indicator name Percentage of WafCharm users whose unit prices increased / Value Approximately 30% / Year on year against the same period last year Not disclosed
Unit price and quantity metricsUnit prices increased for approximately 30% of WafCharm users. Breakdown by volume metrics: Not disclosed
Medium-term management plan targetsThe company has begun improving its products and expanding new services to achieve the medium-term management plan. Specific target figures: Not disclosed
Key points of the Q&AReasons for the first-quarter operating margin reaching the high level of 26.0% and its sustainability, Plans to revise prices for multiple products during the year, Reasons for the moderation in CloudFastener's growth rate and its expansion strategy, Progress in ARR growth, NRR, cross-selling and upselling, Risk of earnings volatility from increased usage-based billing for WafCharm, Status of M&A considerations, Impact of generative AI and the latest AI models on the market and earnings
New initiativesSequential price revisions for multiple products during the year, Plan design incorporating enhanced functionality and expanded support, Investment to support medium- to long-term growth, Continued sourcing of M&A opportunities, An AI strategy centered on three pillars: AI for Security, Security for AI, and AI-Native Organization, Establishment of an AI Trust Board
Items this document does not state (18)
Net SalesOrdinary incomeNet incomeSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planSegment resultsNumber 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 backlogMarket Size / Share

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 company cited infrastructure cost optimization through a review of server contracts and other measures, improved operational efficiency and reduced support hours through the use of AI, record-high sales of its vulnerability assessment services, and strong tender projects from government agencies and other customers. Going forward, it expects increased personnel expenses resulting from investments in R&D and advertising and the hiring of new graduates.

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.
Notice Regarding the Publication of Q&A for the First Quarter of the Fiscal Year Ending December 2026 | Cyber Security Cloud,Inc. (4493) timely disclosure | Komori