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Presentation materials for financial results7046TDSE Inc.Information and Communications, Services and Others

Release of the Script for Our Financial Results Briefing

The company presented its results for the fiscal year ended March 2026, as well as the policies and numerical targets of its new medium-term management plan, SHIFT2028, centered on transitioning to generative AI, AI agents and recurring-revenue businesses. It also published a full transcript of the earnings briefing presentation and Q&A session.

Worth reading
70In 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
30.05
¥100 million (net sales for the fiscal year ended March 2026)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings briefing transcriptFiscal year ending March 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales30.05 Hundreds of millions of yen
Operating profit2.14 Hundreds of millions of yen
Operating profit margin7.1 % fiscal year ended March 2026
Results for the three months of the current quarterFourth-quarter net sales were the highest ever on a quarterly basis. However, the standalone figure was Not disclosed
Full-year earnings forecast
Fiscal 2026
Net Sales
32 Hundreds of millions of yen
Operating profit
1.3 Hundreds of millions of yen
SHIFT2028 final year
Net Sales
38～43
Operating profit margin
8% or higher
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。
Consulting business96% of plan
Product Business100% of plan
AI Agent Business142% of plan
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Achieved the revised target
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Regarding the transition of the Consulting business from a staff-augmentation model to a recurring-revenue model, the company said it would conduct a proof-of-concept combining data scientists and AI agents during the current fiscal year
  2. The company explained that growth in the AI Agent business is not a temporary boom, but reflects an accumulation of recurring revenue driven by the transition from the community edition to the enterprise edition and increased license adoption
  3. Investors requested interim progress disclosures, and the company said it would seek to disclose information as appropriate
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • FY2026 will be a period of organizational transformation and a shift from conventional AI to generative AI
  • A cautious plan due to significant fluctuations in the business environment
  • Organic growth excluding M&A and other factors
New initiatives
  • Transition from a business-unit structure to a functional organization
  • Centralization of the sales and technology functions under the direct supervision of the president
  • Redesign of the organization from 2 job categories for data scientists and engineers to 4
  • KPI management for the generative AI and AI agent revenue ratio and recurring revenue ratio
  • Transition from a staff-augmentation model to a recurring-revenue model using AI agents
  • Establishment of a dedicated Databricks team
  • Development of industry-specific AI agents and API-, license- and SaaS-based services
Key KPIsA metric the company considers important as a management benchmark.
  • Generative AI and AI agent revenue ratioFrom 30% to 60%
  • Subscription revenue ratioFrom 20% to 30%
  • Three-year average growth rate of the Product business20 %
Segment results
Consulting business
Net Sales
22.8 Hundreds of millions of yen
Year on year against the same period last year99%
Versus plan96%
Product Business
Net Sales
4.1 Hundreds of millions of yen
Year on year against the same period last year122%
Versus plan100%
AI Agent Business
Net Sales
3.1 Hundreds of millions of yen
Year on year against the same period last year443%
Versus plan142%
Medium-term management plan targets
  • Net sales
    Target fiscal year2028
    Target value¥3.8 billion–¥4.3 billion
  • Generative AI and AI agent revenue ratio
    Target fiscal yearFY2028
    Target value60%
  • Subscription revenue ratio
    Target fiscal yearFY2028
    Target value30%
  • Operating margin
    Target fiscal yearFY2028
    Target value8% or higher
Financial targets
Raise the operating margin from 7.1% in the fiscal year ended March 2026 to 8% or more in FY2028
Market Size / Share
  • Generative AI market CAGR of more than 40%
  • AI agent market CAGR of more than 85%
  • The overall domestic market is expected to expand from ¥1.5 trillion to approximately ¥3 trillion
  • Approximately 200 domestic Databricks partners, including around 10 Silver-level partners
Contents of this document
ItemDetails
Document typeEarnings briefing transcript
Fiscal Period CoveredFiscal year ending March 2026
Net Sales30.05 Hundreds of millions of yen
Operating profit2.14 Hundreds of millions of yen
Operating profit margin7.1 % (fiscal year ended March 2026)
Results for the three months of the current quarterFourth-quarter net sales were the highest ever on a quarterly basis. However, the standalone figure was Not disclosed
Full-year earnings forecastFiscal 2026 Net Sales 32 Hundreds of millions of yen / Operating profit 1.3 Hundreds of millions of yen / SHIFT2028 final year Net Sales 38～43 / Operating profit margin 8% or higher
Progress against full-year forecastConsulting business 96% of plan / Product Business 100% of plan / AI Agent Business 142% of plan
Self-assessment against the planAchieved the revised target
Segment resultsConsulting business Net Sales 22.8 Hundreds of millions of yen / Year on year against the same period last year 99% / Versus plan 96% / Product Business Net Sales 4.1 Hundreds of millions of yen / Year on year against the same period last year 122% / Versus plan 100% / AI Agent Business Net Sales 3.1 Hundreds of millions of yen / Year on year against the same period last year 443% / Versus plan 142%
Key KPIsIndicator name Generative AI and AI agent revenue ratio / Value From 30% to 60% / Year on year against the same period last year Not disclosed, Indicator name Subscription revenue ratio / Value From 20% to 30% / Year on year against the same period last year Not disclosed, Indicator name Three-year average growth rate of the Product business / Value 20 % / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookFY2026 will be a period of organizational transformation and a shift from conventional AI to generative AI, A cautious plan due to significant fluctuations in the business environment, Organic growth excluding M&A and other factors
Medium-term management plan targetsTarget fiscal year 2028 / Indicator Net sales / Target value ¥3.8 billion–¥4.3 billion, Target fiscal year FY2028 / Indicator Generative AI and AI agent revenue ratio / Target value 60%, Target fiscal year FY2028 / Indicator Subscription revenue ratio / Target value 30%, Target fiscal year FY2028 / Indicator Operating margin / Target value 8% or higher
Financial targetsRaise the operating margin from 7.1% in the fiscal year ended March 2026 to 8% or more in FY2028
Market Size / ShareGenerative AI market CAGR of more than 40%, AI agent market CAGR of more than 85%, The overall domestic market is expected to expand from ¥1.5 trillion to approximately ¥3 trillion, Approximately 200 domestic Databricks partners, including around 10 Silver-level partners
Key points of the Q&ARegarding the transition of the Consulting business from a staff-augmentation model to a recurring-revenue model, the company said it would conduct a proof-of-concept combining data scientists and AI agents during the current fiscal year, The company explained that growth in the AI Agent business is not a temporary boom, but reflects an accumulation of recurring revenue driven by the transition from the community edition to the enterprise edition and increased license adoption, Investors requested interim progress disclosures, and the company said it would seek to disclose information as appropriate
New initiativesTransition from a business-unit structure to a functional organization, Centralization of the sales and technology functions under the direct supervision of the president, Redesign of the organization from 2 job categories for data scientists and engineers to 4, KPI management for the generative AI and AI agent revenue ratio and recurring revenue ratio, Transition from a staff-augmentation model to a recurring-revenue model using AI agents, Establishment of a dedicated Databricks team, Development of industry-specific AI agents and API-, license- and SaaS-based services
Items this document does not state (14)
Ordinary incomeNet incomeGross Profit MarginSelling, general and administrative expensesBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital 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.

For the fiscal year ended March 2026, the Product and AI Agent businesses performed well and complemented the Consulting business. In addition to favorable market conditions for generative AI, the AI Agent business benefited from progress in winning projects as the company's proposal capabilities centered on Dify were well received. The Consulting business was affected by the completion of some projects for existing customers and delays in shifting from conventional AI to generative AI. Under the new medium-term plan, the company intends to transition its businesses to generative AI, strengthen recurring revenue and reorganize its structure.

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Release of the Script for Our Financial Results Briefing | TDSE Inc. (7046) timely disclosure | Komori