Worth reading
90Important
Scored from 5 of 6 sectionsDirection
Improvement
Direction inferred from the company’s description.Scale
86
Year-on-year operating profit growth rate (%)Wording
Conditional
How definitive the wording is.Contents of this document
Briefing transcriptFirst half of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥16.28 100 million+15.0%
Operating profit¥0.79 100 million+86.0%
Ordinary income¥0.77 100 million
Net income¥0.51 100 million
Operating profit margin4.9 %
Results for the three months of the current quarter
First quarter
Net Sales
¥7.88 100 million
Operating profit margin
3.2 %
Second quarter
Net Sales
¥8.4 100 million
Operating profit margin
6.4 %
Second quarter vs. first quarter
Revenue growth6.5 %
Operating profit growth113 %
Operating margin change3.2 %
Operating margin change unitPoints
Full-year earnings forecast
Net Sales
¥32 100 million
Operating profit
¥1.3 100 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 Sales51
Operating profit61
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The generative AI agent business is ahead of plan, while the shift toward recurring revenue and the execution structure are on planKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Questions Reasons why generative AI agent revenue is expected to account for at least 45% for the full year, and the treatment of the 60% target for fiscal 2028 / Answer The generative AI ratio is a metric that the Company intends to increase further, and the fiscal 2028 target may be changed in line with progress
- Questions Changes in customer composition as the generative AI ratio increases / Answer Retail, telecommunications services, financial services, and Other each account for approximately 25%. The number of continuing customers is increasing, and the customer composition has not changed significantly
- Questions Growth strategy toward a market capitalization of ¥10 billion / Answer For now, the Company is prioritizing the transformation of its existing businesses, and it is difficult to disclose other directions. The Company will explain them once they become clear
- Questions Inorganic growth measures, such as M&A / Answer M&A is not included in the current numerical targets, but is being pursued in parallel
- Questions Competitors and response strategy / Answer As AI providers and systems integrators compete, the Company is shifting toward joint offerings with systems integrators and will draw on its expertise and track record in data utilization as a strength
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Strategic Investment
¥4 100 million
DetailsIncreased investment in personnel expenses, recruitment costs, information processing costs, advertising and promotional expenses, and other areas
Cost Reduction
¥1.2 100 million
Profit level without revenue
¥4.1 100 million
Operating profit plan
¥1.3 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Second-half revenueExpects growth at least in line with the first half
Second-half operating profitExpects growth exceeding that of the first half
Revenue-linked expensesOutsourcing costs and product purchases are expected to continue to be incurred
New initiatives
- Dify authorized reseller program
- Revamp of Dify's licensing framework, including the launch of Essential and Standard offerings
- Launch of AI Forge, an on-premises AI agent platform
- QUID Terminal offering
- Planning and preparations for the rollout of a generative AI implementation assessment service
- Planning and initial validation of a data science agent
- Consolidation of the sales function under direct oversight of top management
- Reorganization of the technology organization
- Strengthening joint proposals with partners such as NTT DATA
Key KPIsA metric the company considers important as a management benchmark.
- Generative AI agent revenue¥8.9 100 million
- Generative AI agent revenue mix55 %
- Recurring revenue¥3.9 100 million
- Subscription revenue ratio24 %Year on year against the same period last year+approximately 4 percentage points
- Flow-based business ratio76 %
Segment results
Dify
Net Sales
¥3.3 100 million
Year on year against the same period last yearApproximately 3x
Databricks
Net Sales
¥1.2 100 million
Year on year against the same period last yearMore than 3x
QUIDRevenue was approximately unchanged from the previous year. First-half revenue was ¥190 million
Consulting & BPO
Net Sales
¥3.7 100 million
Versus planIn line with expectations
Existing AI
Net Sales
¥7.4 100 million
Versus planIn line with expectations
Medium-term management plan targets
Plan nameSHIFT2028
Target fiscal yearFiscal year ending March 2029 (fiscal 2028)
Generative AI agent revenue mix
Target60 %
Subscription revenue ratio
Target30 %
Compared with first-half results
Generative AI agent revenue mix
Actual results55 %
Subscription revenue ratio
Actual results24 %
Market Size / Share
AI agent market growth rate
86.8 %
Generative AI market growth rate
38.1 %
Databricks global growth rate
80 %
Percentage of companies adopting Databricks
60 %
Dify domestic enterprise segmentMaintain the domestic No. 1 position
| Item | Details |
|---|---|
| Document type | Briefing transcript |
| Fiscal Period Covered | First half of the fiscal year ending March 2027 |
| Net Sales | ¥16.28 100 million (YoY +15.0%) |
| Operating profit | ¥0.79 100 million (YoY +86.0%) |
| Ordinary income | ¥0.77 100 million |
| Net income | ¥0.51 100 million |
| Operating profit margin | 4.9 % |
| Results for the three months of the current quarter | First quarter Net Sales ¥7.88 100 million / Operating profit margin 3.2 % / Second quarter Net Sales ¥8.4 100 million / Operating profit margin 6.4 % / Second quarter vs. first quarter Revenue growth 6.5 % / Operating profit growth 113 % / Operating margin change 3.2 % / Operating margin change unit Points |
| Full-year earnings forecast | Net Sales ¥32 100 million / Operating profit ¥1.3 100 million / Ordinary income Not disclosed / Net income Not disclosed |
| Progress against full-year forecast | Net Sales 51 / Operating profit 61 |
| Self-assessment against the plan | The generative AI agent business is ahead of plan, while the shift toward recurring revenue and the execution structure are on plan |
| Segment results | Dify Net Sales ¥3.3 100 million / Year on year against the same period last year Approximately 3x / Databricks Net Sales ¥1.2 100 million / Year on year against the same period last year More than 3x / QUID Revenue was approximately unchanged from the previous year. First-half revenue was ¥190 million / Consulting & BPO Net Sales ¥3.7 100 million / Versus plan In line with expectations / Existing AI Net Sales ¥7.4 100 million / Versus plan In line with expectations |
| Breakdown of Factors Affecting the Change | Strategic Investment ¥4 100 million / Cost Reduction ¥1.2 100 million / Profit level without revenue ¥4.1 100 million / Operating profit plan ¥1.3 100 million |
| Key KPIs | Indicator name Generative AI agent revenue / Value ¥8.9 100 million / Year on year against the same period last year Not disclosed, Indicator name Generative AI agent revenue mix / Value 55 % / Year on year against the same period last year Not disclosed, Indicator name Recurring revenue / Value ¥3.9 100 million / Year on year against the same period last year Not disclosed, Indicator name Subscription revenue ratio / Value 24 % / Year on year against the same period last year +approximately 4 percentage points, Indicator name Flow-based business ratio / Value 76 % / Year on year against the same period last year Not disclosed |
| Assumptions Underlying the Business Outlook | Second-half revenue Expects growth at least in line with the first half / Second-half operating profit Expects growth exceeding that of the first half / Revenue-linked expenses Outsourcing costs and product purchases are expected to continue to be incurred |
| Medium-term management plan targets | Plan name SHIFT2028 / Target fiscal year Fiscal year ending March 2029 (fiscal 2028) / Generative AI agent revenue mix Target 60 % / Subscription revenue ratio Target 30 % / Compared with first-half results Generative AI agent revenue mix Actual results 55 % / Subscription revenue ratio Actual results 24 % |
| Market Size / Share | AI agent market growth rate 86.8 % / Generative AI market growth rate 38.1 % / Databricks global growth rate 80 % / Percentage of companies adopting Databricks 60 % / Dify domestic enterprise segment Maintain the domestic No. 1 position |
| Key points of the Q&A | Questions Reasons why generative AI agent revenue is expected to account for at least 45% for the full year, and the treatment of the 60% target for fiscal 2028 / Answer The generative AI ratio is a metric that the Company intends to increase further, and the fiscal 2028 target may be changed in line with progress, Questions Changes in customer composition as the generative AI ratio increases / Answer Retail, telecommunications services, financial services, and Other each account for approximately 25%. The number of continuing customers is increasing, and the customer composition has not changed significantly, Questions Growth strategy toward a market capitalization of ¥10 billion / Answer For now, the Company is prioritizing the transformation of its existing businesses, and it is difficult to disclose other directions. The Company will explain them once they become clear, Questions Inorganic growth measures, such as M&A / Answer M&A is not included in the current numerical targets, but is being pursued in parallel, Questions Competitors and response strategy / Answer As AI providers and systems integrators compete, the Company is shifting toward joint offerings with systems integrators and will draw on its expertise and track record in data utilization as a strength |
| New initiatives | Dify authorized reseller program, Revamp of Dify's licensing framework, including the launch of Essential and Standard offerings, Launch of AI Forge, an on-premises AI agent platform, QUID Terminal offering, Planning and preparations for the rollout of a generative AI implementation assessment service, Planning and initial validation of a data science agent, Consolidation of the sales function under direct oversight of top management, Reorganization of the technology organization, Strengthening joint proposals with partners such as NTT DATA |
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual 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.Progress in the generative AI agent area, particularly Dify and generative AI projects for existing customers, exceeded the plan. The consolidation and strengthening of sales functions, reorganization of the technology organization, and increase in recurring revenue also contributed.
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.