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Presentation materials for financial results4811DreamArts CorporationInformation and Communications, Services and Others

Financial Results Briefing Materials for the First Quarter of the Fiscal Year Ending December 2026

In the first quarter of the fiscal year ending December 2026, revenue increased 2.0% year on year, driven by growth in the cloud business. Operating profit, however, declined 25.1% due to the reversal of the prior year's large license sales and investments for growth. Operating profit is nevertheless progressing at a pace that exceeds the full-year plan.

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Direction
Mixed performance
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Scale
-88
¥ millions (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending December 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,460 million+2.0%
Operating profit¥263 million-25.1%
Net income¥235 million -22.6%net income attributable to owners of the parent
Gross Profit Margin64.6 %
Operating profit margin18 %
Selling, general and administrative expenses¥680 million
Results for the three months of the current quarter
Net Sales
¥1,460 million
Gross profit
¥943 million
Operating profit
¥263 million
Profit before income taxes
¥286 million
Profit attributable to owners of the parent
¥235 million
Full-year earnings forecast
Net Sales
¥6,250 million
Cloud business revenue
¥5,140 million
On-premises business revenue
¥404 million
Professional services business revenue
¥704 million
Cost of sales
¥2,386 million
Gross profit
¥3,863 million
Selling, general and administrative expenses
¥2,998 million
Operating profit
¥865 million
Profit before income taxes
¥890 million
Profit attributable to owners of the parent
¥616 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 Sales23.4
Cloud business revenue23.7
On-premises business revenue27.5
Professional services business revenue18.6
Cost of sales21.7
Gross profit24.4
Selling, general and administrative expenses22.7
Operating profit30.4
Profit before income taxes32.2
Profit attributable to owners of the parent38.2
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit is progressing ahead of plan. The reduction in maintenance activity in the on-premises business and the professional services business are progressing as planned.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Horizontal SaaS¥147 million
  • Vertical SaaS¥3 million
  • Licensing¥-40 million
  • Maintenance¥-22 million
  • DCR¥-3 million
  • Professional Services¥-57 million
  • Materials costs¥14 million
  • Cost of sales excluding materials costs¥-27 million
  • Advertising and sales promotion expenses¥13 million
  • SG&A expenses excluding advertising and sales promotion expenses¥118 million
New initiatives
  • Released the Practical AI (PA) option, an AI feature for SmartDB®
  • Strengthening advertising and sales promotion investment from Q2 onward to energize the user community and raise awareness
  • SmartDB® adopted by Oriental Yeast Co., Ltd., ARISE analytics, Suntory Publicity Service, the University of Tsukuba, and others
  • Shopらん® adopted by MOS Food Services and Coop Deli Consumers' Cooperative Union
Key KPIsA metric the company considers important as a management benchmark.
  • Horizontal SaaS revenue growth rate17.8 %
    Year on year against the same period last year+17.8%
  • Cloud business revenue growth rate13.8 %
    Year on year against the same period last year+13.8%
  • Deferred revenue balance¥1,478 million
    Year on year against the same period last year+15.7%
  • Recurring revenue ratio90.7 %
  • Cloud revenue ratio83.4 %
    Year on year against the same period last year+8.6%
  • Number of companies using horizontal SaaS197 companies
    Year on year against the same period last year+29.0%
  • Horizontal SaaS net revenue retention (NRR)108.8 %
  • Number of companies using vertical SaaS174 companies
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Horizontal SaaS ARPA¥1,680 thousand
    Quarter-on-quarter change2.5
  • Number of companies using horizontal SaaS197 companies
    Year on year against the same period last year+29.0%
  • Vertical SaaS ARPA¥409 thousand
    Quarter-on-quarter change7.2
  • Number of companies using vertical SaaS174 companies
Segment results
  • Cloud Business
    Net Sales1,218
    Segment profit532
    unit_profit¥ million
  • On-premises business
    Net Sales111
    Segment profit41
    unit_profit¥ million
  • Professional services business
    Net Sales130
    Segment profit-1
    unit_profit¥ million
Medium-term management plan targets
The document refers to the targets in the Medium-Term Management Plan (2026-2028), but the target figures are not disclosed
Market Size / Share
  • Overall share of the SaaS workflow market30.2 %
    Record period2,024
  • Share among large companies with 1,000 or more employees54.1 %
    Record period2,024
  • Number of stores using Shopらん66,000 stores or more
Number of employees
Headcount at fiscal year-end296 people
Compared with the previous year-end3 people
Number of hires in Q1 20265 people
Unit for number of hirespeople
Hiring plan24 new graduates are expected to join the company in Q2
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Net Sales¥1,460 million (YoY +2.0%)
Operating profit¥263 million (YoY -25.1%)
Net income¥235 million (net income attributable to owners of the parent) (YoY -22.6%)
Gross Profit Margin64.6 %
Operating profit margin18 %
Selling, general and administrative expenses¥680 million
Results for the three months of the current quarterNet Sales ¥1,460 million / Gross profit ¥943 million / Operating profit ¥263 million / Profit before income taxes ¥286 million / Profit attributable to owners of the parent ¥235 million
Full-year earnings forecastNet Sales ¥6,250 million / Cloud business revenue ¥5,140 million / On-premises business revenue ¥404 million / Professional services business revenue ¥704 million / Cost of sales ¥2,386 million / Gross profit ¥3,863 million / Selling, general and administrative expenses ¥2,998 million / Operating profit ¥865 million / Profit before income taxes ¥890 million / Profit attributable to owners of the parent ¥616 million
Progress against full-year forecastNet Sales 23.4 / Cloud business revenue 23.7 / On-premises business revenue 27.5 / Professional services business revenue 18.6 / Cost of sales 21.7 / Gross profit 24.4 / Selling, general and administrative expenses 22.7 / Operating profit 30.4 / Profit before income taxes 32.2 / Profit attributable to owners of the parent 38.2
Self-assessment against the planOperating profit is progressing ahead of plan. The reduction in maintenance activity in the on-premises business and the professional services business are progressing as planned.
Segment resultsSegment Cloud Business / Net Sales ¥1,218 million / yoy_pct ¥13.8 million / Segment profit ¥532 million / unit_profit ¥ million, Segment On-premises business / Net Sales ¥111 million / yoy_pct ¥-35.7 million / Segment profit ¥41 million / unit_profit ¥ million, Segment Professional services business / Net Sales ¥130 million / yoy_pct ¥-30.5 million / Segment profit ¥-1 million / unit_profit ¥ million
Breakdown of Factors Affecting the ChangeFactors Horizontal SaaS / Amount ¥147 million, Factors Vertical SaaS / Amount ¥3 million, Factors Licensing / Amount ¥-40 million, Factors Maintenance / Amount ¥-22 million, Factors DCR / Amount ¥-3 million, Factors Professional Services / Amount ¥-57 million, Factors Materials costs / Amount ¥14 million, Factors Cost of sales excluding materials costs / Amount ¥-27 million, Factors Advertising and sales promotion expenses / Amount ¥13 million, Factors SG&A expenses excluding advertising and sales promotion expenses / Amount ¥118 million
Key KPIsIndicator name Horizontal SaaS revenue growth rate / Value 17.8 % / Year on year against the same period last year 17.8 %, Indicator name Cloud business revenue growth rate / Value 13.8 % / Year on year against the same period last year 13.8 %, Indicator name Deferred revenue balance / Value ¥1,478 million / Year on year against the same period last year ¥15.7 million, Indicator name Recurring revenue ratio / Value 90.7 % / Year on year against the same period last year Not disclosed, Indicator name Cloud revenue ratio / Value 83.4 % / Year on year against the same period last year 8.6 %, Indicator name Number of companies using horizontal SaaS / Value 197 companies / Year on year against the same period last year 29 companies, Indicator name Horizontal SaaS net revenue retention (NRR) / Value 108.8 % / Year on year against the same period last year Not disclosed, Indicator name Number of companies using vertical SaaS / Value 174 companies / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Horizontal SaaS ARPA / Value ¥1,680 thousand / Quarter-on-quarter change ¥2.5 thousand, Indicator name Number of companies using horizontal SaaS / Value 197 companies / Year on year against the same period last year 29 companies, Indicator name Vertical SaaS ARPA / Value ¥409 thousand / Quarter-on-quarter change ¥7.2 thousand, Indicator name Number of companies using vertical SaaS / Value 174 companies / Year on year against the same period last year Not disclosed
Number of employeesHeadcount at fiscal year-end 296 people / Compared with the previous year-end 3 people / Number of hires in Q1 2026 5 people / Unit for number of hires people / Hiring plan 24 new graduates are expected to join the company in Q2
Medium-term management plan targetsThe document refers to the targets in the Medium-Term Management Plan (2026-2028), but the target figures are not disclosed
Market Size / ShareIndicator name Overall share of the SaaS workflow market / Value 30.2 % / Record period 2,024 %, Indicator name Share among large companies with 1,000 or more employees / Value 54.1 % / Record period 2,024 %, Indicator name Number of stores using Shopらん / Value 66,000 stores or more
New initiativesReleased the Practical AI (PA) option, an AI feature for SmartDB®, Strengthening advertising and sales promotion investment from Q2 onward to energize the user community and raise awareness, SmartDB® adopted by Oriental Yeast Co., Ltd., ARISE analytics, Suntory Publicity Service, the University of Tsukuba, and others, Shopらん® adopted by MOS Food Services and Coop Deli Consumers' Cooperative Union
Items this document does not state (11)
Ordinary incomeNumber of stores and locationsAssumptions 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.

Growth in the cloud business drove higher revenue, while operating profit declined due to the reversal of large license and professional services revenue recorded in the same quarter of the previous year, as well as investments for growth in human capital, advertising and sales promotion, and product development.

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Financial Results Briefing Materials for the First Quarter of the Fiscal Year Ending December 2026 | DreamArts Corporation (4811) timely disclosure | Komori