Worth reading
44Recurring
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
136.2
Year-on-year change in operating profit (%)Wording
Conditional
How definitive the wording is.Contents of this document
Summary of Q&AFirst quarter of the fiscal year ending March 20277 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,553 million+15.3%
Operating profit¥32 million+136.2%
Gross Profit Margin16.6 %
Selling, general and administrative expenses18 Year-on-year increase %
Results for the three months of the current quarterNet sales of ¥1,553 million, operating profit of ¥32 million, adjusted operating profit of ¥44 million, and gross profit of ¥257 million. Gross profit was a quarterly record high.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The Company recognizes that KPI progress is generally on track.Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Factors behind the increase in operating profit in the first quarter: the improvement in the gross profit margin was the largest factor.
- M&A objectives and progress: the Company aims to complete 1–2 transactions annually and has expanded its target scope to businesses with a value of up to approximately ¥1 billion. No transactions have been finalized as of now.
- Outlook for TracisAI: the service has begun being offered on AWS Marketplace, with priority placed on expanding the number of adopting companies and use cases. The Company aims to improve its profit margin over the medium to long term.
- KPI progress: sales personnel numbers are progressing smoothly, while hiring of in-house engineers is expected to be concentrated in the second half. The Company may adjust and manage investments depending on circumstances.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net sales: expansion of the Company's engineering and sales teams and the effects of M&A in the previous fiscal year. Gross profit margin: orders for high-value-added projects, optimization of in-house engineer utilization, and profitability management for projects handled by business partners. Operating profit: growth in gross profit exceeded the increase in SG&A expenses.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Hiring of in-house engineers is expected to be weighted toward the second half because of the timing of employees' start dates. Activities by the sales team are expected to gain full momentum from the second quarter onward.New initiatives
- Efforts to strengthen sourcing, including collaboration with M&A advisory firms, with the aim of completing approximately 1–2 M&A transactions annually
- Launch of the generative AI service TracisAI on AWS Marketplace
- Offering 3 TracisAI plans ranging from a free trial to a custom plan
Key KPIsA metric the company considers important as a management benchmark.
- Sales personnel38 PeopleYear on year against the same period last year+7 partners
- Number of accounts11,425 Engagements
- In-house engineers191 PeopleYear on year against the same period last year+42 people
Number of employees
Sales personnel: 38 people (+7 year on year); in-house engineers: 191 people (+42 year on year). The year-end plan calls for 40 sales personnel and 220 in-house engineers.| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | ¥1,553 million (YoY +15.3%) |
| Operating profit | ¥32 million (YoY +136.2%) |
| Gross Profit Margin | 16.6 % |
| Selling, general and administrative expenses | 18 Year-on-year increase (%) |
| Results for the three months of the current quarter | Net sales of ¥1,553 million, operating profit of ¥32 million, adjusted operating profit of ¥44 million, and gross profit of ¥257 million. Gross profit was a quarterly record high. |
| Self-assessment against the plan | The Company recognizes that KPI progress is generally on track. |
| Breakdown of Factors Affecting the Change | Net sales: expansion of the Company's engineering and sales teams and the effects of M&A in the previous fiscal year. Gross profit margin: orders for high-value-added projects, optimization of in-house engineer utilization, and profitability management for projects handled by business partners. Operating profit: growth in gross profit exceeded the increase in SG&A expenses. |
| Key KPIs | Indicator name Sales personnel / Value 38 People / Year on year against the same period last year +7 partners, Indicator name Number of accounts / Value 11,425 Engagements / Year on year against the same period last year Not disclosed, Indicator name In-house engineers / Value 191 People / Year on year against the same period last year +42 people |
| Number of employees | Sales personnel: 38 people (+7 year on year); in-house engineers: 191 people (+42 year on year). The year-end plan calls for 40 sales personnel and 220 in-house engineers. |
| Assumptions Underlying the Business Outlook | Hiring of in-house engineers is expected to be weighted toward the second half because of the timing of employees' start dates. Activities by the sales team are expected to gain full momentum from the second quarter onward. |
| Key points of the Q&A | Factors behind the increase in operating profit in the first quarter: the improvement in the gross profit margin was the largest factor., M&A objectives and progress: the Company aims to complete 1–2 transactions annually and has expanded its target scope to businesses with a value of up to approximately ¥1 billion. No transactions have been finalized as of now., Outlook for TracisAI: the service has begun being offered on AWS Marketplace, with priority placed on expanding the number of adopting companies and use cases. The Company aims to improve its profit margin over the medium to long term., KPI progress: sales personnel numbers are progressing smoothly, while hiring of in-house engineers is expected to be concentrated in the second half. The Company may adjust and manage investments depending on circumstances. |
| New initiatives | Efforts to strengthen sourcing, including collaboration with M&A advisory firms, with the aim of completing approximately 1–2 M&A transactions annually, Launch of the generative AI service TracisAI on AWS Marketplace, Offering 3 TracisAI plans ranging from a free trial to a custom plan |
Items this document does not state (17)
Ordinary incomeNet incomeOperating profit marginFull-year earnings forecastProgress against full-year forecastSegment resultsUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial 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.Net sales increased due to the expansion of the Company's engineering and sales teams and the effects of M&A in the previous fiscal year. The gross profit margin also improved as a result of winning high-value-added projects, optimizing the utilization of in-house engineers, and implementing rigorous profitability management for projects handled by business partner companies. Operating profit also increased because the growth in gross profit exceeded the increase in SG&A expenses resulting from investments in personnel.
How to read this page
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