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How definitive the wording is.Contents of this document
Summary of Q&AFirst quarter of the fiscal year ending December 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
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。For operating profit, only the statement “high progress against the full-year forecast” is provided. Figure: not disclosed
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
- Overseas expansion: Some results from test marketing are being verified, with expansion planned after reproducibility has been confirmed.
- Competitive advantages: The company described managed services leveraging KUSANAGI and its WordPress expertise as strengths.
- Cyberattack countermeasures: Synergy initiatives with GMO Group companies are under way.
- WEXAL North American patent: The company is responding to the examination, which is taking time because it has received multiple notices.
- Generative AI products: Development is progressing smoothly, and test sales have been completed. The company is seeking sales collaboration partners.
- Large-scale projects: 2 orders have been received for KUSANAGI Managed Service byGMO.
- Churn rate: The improvement to 1.0% was attributed to improvements in the operating structure and the winding down of cancellations resulting from the decline of the market in a specific industry.
- Cloud integration: Revenue returned to the normal quarterly pace following the reversal of the impact of large-scale projects in the previous fourth quarter.
- Shareholder returns: Share repurchases will be considered when necessary as an important option.
- Share price measures: The company places priority on improving profitability, expanding its businesses, and raising awareness through investor relations activities.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
The decrease in cloud integration revenue was attributed to the reversal of the impact of large-scale projects in the previous fourth quarter. Amount: not disclosed
New initiatives
- Considering expansion of overseas test marketing
- Applying AI to KUSANAGI and KUSANAGI Managed Service byGMO
- Synergy initiatives with GMO Internet Group companies
- Seeking sales collaboration partners for generative AI products
- Providing technology and proposing OEM arrangements for GMO Group rental servers
- Preparing to launch sales of Magatama Stack and seeking partners with strong government relationships
- Proposing integrated web infrastructure and CMS platform services for large corporations and corporate groups
Key KPIsA metric the company considers important as a management benchmark.
- Churn rate1.0%Year on year against the same period last yearSignificantly improved
- MRRRecord high
- ARPURecord high
- Cumulative number of active servers for KUSANAGI and KUSANAGI Managed Service byGMOYear on year against the same period last yearThe company explained that the trend is monitored as an important indicator
Unit price and quantity metricsThese figures show sales broken down by price and volume.
ARPU and the cumulative number of active servers for KUSANAGI and KUSANAGI Managed Service byGMO were mentioned, but the numerical breakdown of volume and unit price was not disclosedFinancial targets
The company referred to improving returns on capital, but numerical targets such as ROE and ROIC were not disclosedMarket Size / Share
Regarding comparison with competitors, the company explained that it has no competitor with technically identical offerings. Market share and market size figures were not disclosedAcquisition of treasury shares
The company explained that it will consider share repurchases when necessary. The repurchase authorization amount, number of shares, and period were not disclosed| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending December 2026 |
| Progress against full-year forecast | For operating profit, only the statement “high progress against the full-year forecast” is provided. Figure: not disclosed |
| Breakdown of Factors Affecting the Change | The decrease in cloud integration revenue was attributed to the reversal of the impact of large-scale projects in the previous fourth quarter. Amount: not disclosed |
| Key KPIs | Indicator name Churn rate / Value 1.0% / Year on year against the same period last year Significantly improved, Indicator name MRR / Value Record high / Year on year against the same period last year Not disclosed, Indicator name ARPU / Value Record high / Year on year against the same period last year Not disclosed, Indicator name Cumulative number of active servers for KUSANAGI and KUSANAGI Managed Service byGMO / Value Not disclosed / Year on year against the same period last year The company explained that the trend is monitored as an important indicator |
| Unit price and quantity metrics | ARPU and the cumulative number of active servers for KUSANAGI and KUSANAGI Managed Service byGMO were mentioned, but the numerical breakdown of volume and unit price was not disclosed |
| Financial targets | The company referred to improving returns on capital, but numerical targets such as ROE and ROIC were not disclosed |
| Acquisition of treasury shares | The company explained that it will consider share repurchases when necessary. The repurchase authorization amount, number of shares, and period were not disclosed |
| Market Size / Share | Regarding comparison with competitors, the company explained that it has no competitor with technically identical offerings. Market share and market size figures were not disclosed |
| Key points of the Q&A | Overseas expansion: Some results from test marketing are being verified, with expansion planned after reproducibility has been confirmed., Competitive advantages: The company described managed services leveraging KUSANAGI and its WordPress expertise as strengths., Cyberattack countermeasures: Synergy initiatives with GMO Group companies are under way., WEXAL North American patent: The company is responding to the examination, which is taking time because it has received multiple notices., Generative AI products: Development is progressing smoothly, and test sales have been completed. The company is seeking sales collaboration partners., Large-scale projects: 2 orders have been received for KUSANAGI Managed Service byGMO., Churn rate: The improvement to 1.0% was attributed to improvements in the operating structure and the winding down of cancellations resulting from the decline of the market in a specific industry., Cloud integration: Revenue returned to the normal quarterly pace following the reversal of the impact of large-scale projects in the previous fourth quarter., Shareholder returns: Share repurchases will be considered when necessary as an important option., Share price measures: The company places priority on improving profitability, expanding its businesses, and raising awareness through investor relations activities. |
| New initiatives | Considering expansion of overseas test marketing, Applying AI to KUSANAGI and KUSANAGI Managed Service byGMO, Synergy initiatives with GMO Internet Group companies, Seeking sales collaboration partners for generative AI products, Providing technology and proposing OEM arrangements for GMO Group rental servers, Preparing to launch sales of Magatama Stack and seeking partners with strong government relationships, Proposing integrated web infrastructure and CMS platform services for large corporations and corporate groups |
Items this document does not state (20)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastSelf-assessment against the planSegment resultsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioCapital expendituresOrders received and order backlog
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.Regarding overseas expansion, the company is confirming the reproducibility of some results from its test marketing, and discussions with overseas hosting providers and collaboration with GMO Group companies have not yet reached a stage at which details can be disclosed. Regarding the improvement in the churn rate, it cited improvements to its operating structure and the winding down of cancellations resulting from the decline of the market across a specific industry. The decrease in cloud integration revenue was attributed to a return to the normal quarterly pace following the reversal of the impact of large-scale projects in the previous fourth quarter.
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