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Earnings presentation7046TDSE Inc.Information and Communications, Services and Others

TDSE: Publication of Top Message and Presentation Materials Following First-Half Results for the Fiscal Year Ending March 2027

The first half of the fiscal year ending March 2027 saw revenue and profit growth, driven by the expansion of the generative AI agent business, with first-half revenue reaching a record high. Operating margin also improved from the same period of the previous fiscal year and from the first quarter, while the full-year plan was left unchanged. For the second half, the company indicated that it would work to improve profitability and strengthen its talent base and in-house capabilities.

Worth reading
52Recurring
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
15
Revenue year-on-year (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFirst half of the fiscal year ending March 20275 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales16.28 Hundreds of millions of yen+15.0%
Operating profit0.79 Hundreds of millions of yen+85.8%
Gross Profit Margin
Rate34.3% (first half; gross profit of ¥558 million ÷ revenue of ¥1.628 billion)
Operating profit margin
Rate4.9%
Year-on-year change (points)1.9
Results for the three months of the current quarter
Net Sales
8.4 Hundreds of millions of yen
Quarter-on-quarter_pct6.5
Gross profit
2.92 Hundreds of millions of yen
Quarter-on-quarter_pct9.5
Operating profit
0.54 Hundreds of millions of yen
Quarter-on-quarter_pct113
Gross Profit Margin
34.8%
QoQ Change_pt1
Operating profit margin
6.4%
QoQ Change_pt3.2
Full-year earnings forecast
Net Sales
32 Hundreds of millions of yen
Operating profit
1.3 Hundreds of millions of yen
Operating profit margin
4 %
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 Sales50.9%
Operating profit61.1%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue is progressing smoothly, while operating profit is in line with the plan. Under the structural reform initiatives, the generative AI agent revenue mix is above expectations, while the recurring revenue mix and execution structure are on plan.
New initiatives
  • Launch of the on-premises AI agent platform TDSE AI Forge
  • Launch of Dify's new Essential and Standard licenses
  • Launch of the Dify authorized reseller (sub-distributor) program
  • Full-scale rollout of Quid Terminal
  • Preparation to commercialize the Generative AI Implementation Assessment (provisional) service
  • Training generative AI engineers, securing specialized talent and strengthening in-house capabilities
Key KPIsA metric the company considers important as a management benchmark.
  • Generative AI agent revenue mix55 %
  • Subscription revenue ratio24 %
Segment results
  • Generative AI agent business
    SalesApproximately ¥890 million (approximately 55% of revenue)
  • Data infrastructure business
    SalesApproximately ¥120 million
    Year on year against the same period last yearApproximately 3x
  • SNS analytics business
    SalesApproximately ¥190 million
  • Generative AI development and utilization projects for existing customers
    SalesApproximately ¥370 million
Medium-term management plan targets
PlanSHIFT2028
Target fiscal yearFY2028
Net Sales¥3.8 billion–¥4.3 billion
Generative AI agent revenue mix60%
Subscription revenue ratio30%
Operating profit margin8% or more (guideline)
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst half of the fiscal year ending March 2027
Net Sales16.28 Hundreds of millions of yen (YoY +15.0%)
Operating profit0.79 Hundreds of millions of yen (YoY +85.8%)
Gross Profit MarginRate 34.3% (first half; gross profit of ¥558 million ÷ revenue of ¥1.628 billion) / Year-on-year change (points) Not disclosed
Operating profit marginRate 4.9% / Year-on-year change (points) 1.9
Results for the three months of the current quarterNet Sales 8.4 Hundreds of millions of yen / Gross profit 2.92 Hundreds of millions of yen / Operating profit 0.54 Hundreds of millions of yen / Gross Profit Margin 34.8% / Operating profit margin 6.4%
Full-year earnings forecastNet Sales 32 Hundreds of millions of yen / Operating profit 1.3 Hundreds of millions of yen / Operating profit margin 4 %
Progress against full-year forecastNet Sales 50.9% / Operating profit 61.1%
Self-assessment against the planRevenue is progressing smoothly, while operating profit is in line with the plan. Under the structural reform initiatives, the generative AI agent revenue mix is above expectations, while the recurring revenue mix and execution structure are on plan.
Segment resultsSegment Generative AI agent business / Sales Approximately ¥890 million (approximately 55% of revenue) / Year on year against the same period last year Not disclosed, Segment Data infrastructure business / Sales Approximately ¥120 million / Year on year against the same period last year Approximately 3x, Segment SNS analytics business / Sales Approximately ¥190 million / Year on year against the same period last year Not disclosed, Segment Generative AI development and utilization projects for existing customers / Sales Approximately ¥370 million / Year on year against the same period last year Not disclosed
Key KPIsIndicator Generative AI agent revenue mix / Value 55 % / Year on year against the same period last year Not disclosed, Indicator Subscription revenue ratio / Value 24 % / Year on year against the same period last year Not disclosed
Medium-term management plan targetsPlan SHIFT2028 / Target fiscal year FY2028 / Net Sales ¥3.8 billion–¥4.3 billion / Generative AI agent revenue mix 60% / Subscription revenue ratio 30% / Operating profit margin 8% or more (guideline)
New initiativesLaunch of the on-premises AI agent platform TDSE AI Forge, Launch of Dify's new Essential and Standard licenses, Launch of the Dify authorized reseller (sub-distributor) program, Full-scale rollout of Quid Terminal, Preparation to commercialize the Generative AI Implementation Assessment (provisional) service, Training generative AI engineers, securing specialized talent and strengthening in-house capabilities
Items this document does not state (17)
Ordinary incomeNet incomeSelling, general and administrative expensesBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey 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.

Orders and business implementations in the generative AI agent business drove revenue growth. Upfront initiatives, including expanding the sales force, deepening relationships with customers, establishing project management practices and shifting personnel to growth areas, progressed, and revenue growth above plan translated into profit growth.

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.
TDSE: Publication of Top Message and Presentation Materials Following First-Half Results for the Fiscal Year Ending March 2027 | TDSE Inc. (7046) timely disclosure | Komori