Komori
Financial results presentation4811DreamArts CorporationInformation and Communications, Services and Others

Financial Results Presentation for the Second Quarter of the Fiscal Year Ending December 2026

Cumulative revenue for the second quarter of the fiscal year ending December 2026 increased 6.0% year on year, driven by growth in the cloud business. Operating profit, however, declined 20.9% year on year due to growth investments and the decline following the previous year's large projects. Progress against the full-year operating profit forecast was 55.6%, which the company considers to be on track.

Worth reading
60In 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
6
Year-on-year revenue growth (%)
Wording
Definitive
How definitive the wording is.

Contents of this document

Financial results presentationSecond 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¥2,977 million+6.0%
Operating profit¥481 million-20.9%
Net income¥384 million-19.7%
Gross Profit Margin64.2 %
Operating profit margin16.2 %
Selling, general and administrative expenses¥1,430 million
Results for the three months of the current quarterRevenue from horizontal SaaS was ¥1,030 million, up 21.2% year on year, and revenue from vertical SaaS was ¥205 million, up 5.2%. Cloud business revenue was ¥1,273 million, with segment profit of ¥509 million; on-premises business revenue was ¥98 million, with segment profit of ¥41 million; and professional services business revenue was ¥144 million, with segment profit of ¥0 million.
Full-year earnings forecast
Net Sales
¥6,250 million
Cloud Business
¥5,140 million
On-premises business
¥404 million
Professional services business
¥704 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 Sales47.6
Cloud business revenue48.5
On-premises business revenue51.9
Professional services business revenue39.1
Cost of sales44.6
Gross profit49.5
Selling, general and administrative expenses47.7
Operating profit55.6
Profit before income taxes56.9
Profit attributable to owners of the parent62.3
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress against the full-year plan is on track / Cloud business revenue is tracking slightly above plan / On-premises maintenance revenue is in line with plan / The professional services business is broadly in line with the initial full-year plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Horizontal SaaS¥328 million
  • Vertical SaaS¥13 million
  • Licensing¥-41 million
  • Maintenance¥-51 million
  • DCR¥-11 million
  • Advertising and sales promotion expenses¥34 million
  • SG&A expenses excluding advertising and sales promotion expenses¥202 million
  • Materials costs¥77 million
  • Cost of sales excluding materials costs¥-18 million
New initiatives
  • Announcement of the DAPA2.0 initiative
  • Execution of a capital and business alliance agreement with COCUU
  • Acquisition of a patent for SmartDB's Dynamic Branch function
  • Launch of a trial of Gemini on Google Distributed Cloud, provided by KDDI, with SmartDB
Key KPIsA metric the company considers important as a management benchmark.
  • Horizontal SaaS revenue growth rate21.2 %
  • Cloud business revenue growth rate15.3 %
  • Deferred revenue balance¥2,521 million
    Year on year against the same period last year+15.9%
  • Recurring revenue ratio90.6 %
  • Cloud revenue ratio83.7 %
    Year on year against the same period last year+6.7%
  • NRR115.1 %
  • Number of companies using horizontal SaaS203 companies
    Year on year against the same period last year+30.0%
  • Number of companies using vertical SaaS171 companies
    Year on year against the same period last year+7.0%
  • SaaS workflow market share28 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Horizontal SaaS ARPA¥1,720 thousand
  • Vertical SaaS ARPA¥399 thousand
  • Number of companies using horizontal SaaS203 companies
    Year on year against the same period last year+30.0%
  • Number of companies using vertical SaaS171 companies
    Year on year against the same period last year+7.0%
Segment results
  • Cloud Business
    Net Sales2,492
    Year-on-year (%)15.3
  • On-premises business
    Net Sales209
    Year-on-year (%)-30.3
  • Professional services business
    Net Sales275
    Year-on-year (%)-20.3
  • Cloud Business
  • On-premises business
  • Professional services business
Medium-term management plan targets
Continued growth investment as the first year of the Medium-Term Management Plan (2026-2028). Comparison of specific target figures with actual results is Not disclosed
Market Size / Share
SaaS workflow market share was 28.0% in 2025, and 51.9%, No. 1, among large companies with 1,000 or more employees
Number of employees
Number of Employees313 people
Change during the periodUp 20 people from the end of the previous fiscal year
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales¥2,977 million (YoY +6.0%)
Operating profit¥481 million (YoY -20.9%)
Net income¥384 million (YoY -19.7%)
Gross Profit Margin64.2 %
Operating profit margin16.2 %
Selling, general and administrative expenses¥1,430 million
Results for the three months of the current quarterRevenue from horizontal SaaS was ¥1,030 million, up 21.2% year on year, and revenue from vertical SaaS was ¥205 million, up 5.2%. Cloud business revenue was ¥1,273 million, with segment profit of ¥509 million; on-premises business revenue was ¥98 million, with segment profit of ¥41 million; and professional services business revenue was ¥144 million, with segment profit of ¥0 million.
Full-year earnings forecastNet Sales ¥6,250 million / Cloud Business ¥5,140 million / On-premises business ¥404 million / Professional services business ¥704 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 47.6 / Cloud business revenue 48.5 / On-premises business revenue 51.9 / Professional services business revenue 39.1 / Cost of sales 44.6 / Gross profit 49.5 / Selling, general and administrative expenses 47.7 / Operating profit 55.6 / Profit before income taxes 56.9 / Profit attributable to owners of the parent 62.3
Self-assessment against the planProgress against the full-year plan is on track / Cloud business revenue is tracking slightly above plan / On-premises maintenance revenue is in line with plan / The professional services business is broadly in line with the initial full-year plan
Segment resultsSegment Cloud Business / Net Sales ¥2,492 million / Year-on-year (%) ¥15.3 million, Segment On-premises business / Net Sales ¥209 million / Year-on-year (%) ¥-30.3 million, Segment Professional services business / Net Sales ¥275 million / Year-on-year (%) ¥-20.3 million, Segment Cloud Business / Segment profit Not disclosed / Year-on-year (%) Not disclosed, Segment On-premises business / Segment profit Not disclosed / Year-on-year (%) Not disclosed, Segment Professional services business / Segment profit Not disclosed / Year-on-year (%) Not disclosed
Breakdown of Factors Affecting the ChangeFactors Horizontal SaaS / Amount ¥328 million, Factors Vertical SaaS / Amount ¥13 million, Factors Licensing / Amount ¥-41 million, Factors Maintenance / Amount ¥-51 million, Factors DCR / Amount ¥-11 million, Factors Advertising and sales promotion expenses / Amount ¥34 million, Factors SG&A expenses excluding advertising and sales promotion expenses / Amount ¥202 million, Factors Materials costs / Amount ¥77 million, Factors Cost of sales excluding materials costs / Amount ¥-18 million
Key KPIsIndicator name Horizontal SaaS revenue growth rate / Value 21.2 % / Year on year against the same period last year Not disclosed, Indicator name Cloud business revenue growth rate / Value 15.3 % / Year on year against the same period last year Not disclosed, Indicator name Deferred revenue balance / Value ¥2,521 million / Year on year against the same period last year ¥15.9 million, Indicator name Recurring revenue ratio / Value 90.6 % / Year on year against the same period last year Not disclosed, Indicator name Cloud revenue ratio / Value 83.7 % / Year on year against the same period last year 6.7 %, Indicator name NRR / Value 115.1 % / Year on year against the same period last year Not disclosed, Indicator name Number of companies using horizontal SaaS / Value 203 companies / Year on year against the same period last year 30 companies, Indicator name Number of companies using vertical SaaS / Value 171 companies / Year on year against the same period last year 7 companies, Indicator name SaaS workflow market share / Value 28 % / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Horizontal SaaS ARPA / Value ¥1,720 thousand / Year on year against the same period last year Not disclosed, Indicator name Vertical SaaS ARPA / Value ¥399 thousand / Year on year against the same period last year Not disclosed, Indicator name Number of companies using horizontal SaaS / Value 203 companies / Year on year against the same period last year 30 companies, Indicator name Number of companies using vertical SaaS / Value 171 companies / Year on year against the same period last year 7 companies
Number of employeesNumber of Employees 313 people / Change during the period Up 20 people from the end of the previous fiscal year / Hiring plan Not disclosed
Medium-term management plan targetsContinued growth investment as the first year of the Medium-Term Management Plan (2026-2028). Comparison of specific target figures with actual results is Not disclosed
Market Size / ShareSaaS workflow market share was 28.0% in 2025, and 51.9%, No. 1, among large companies with 1,000 or more employees
New initiativesAnnouncement of the DAPA2.0 initiative, Execution of a capital and business alliance agreement with COCUU, Acquisition of a patent for SmartDB's Dynamic Branch function, Launch of a trial of Gemini on Google Distributed Cloud, provided by KDDI, with SmartDB
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.

In the cloud business, progress was made in acquiring new customers, expanding usage among existing customers, and upselling. The on-premises and professional services businesses were affected by a decline following the previous year's large license sales and large projects. Operating profit declined due to growth investments, investment in human resources, and higher advertising and promotional expenses, as well as the decline following the previous year's large license and professional services revenue.

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.
Financial Results Presentation for the Second Quarter of the Fiscal Year Ending December 2026 | DreamArts Corporation (4811) timely disclosure | Komori