Revenue Concentration Among Specific Customers in the Professional Services Business
First written in FY2022. 3 of 6 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2025: 12 of 25 companies on the "Worse" side.
8 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「However, individual projects in the professional services business, which provides advertising management services, may become large in scale, and if a project involving a substantial advertising budget ends, a major customer's advertising spending falls sharply or the customer cancels its contract, and the company is unable to acquire a replacement project in a timely manner」
While explaining the diversification of the customer bases in the SaaS and DX businesses, the company continues to identify the risks of the end of large projects, sharp declines in advertising spending by major customers, and cancellations in the professional services business. - FY2024MitigatedAnnual report
「Recently, the company has expanded its organization by increasing headcount and established a structure capable of handling various projects simultaneously, and dependence on major customer revenue is trending downward.」
Regarding revenue concentration among specific customers in the professional services business, the company stated that dependence is trending downward as a result of increased headcount and organizational expansion. - FY2023-Q3RestatedAnnual report
「During the nine months ended 29 February 2020, the business was affected by the cancellation of contracts by some major clients and reductions in advertising budgets in the previous fiscal year. However, advertising budgets increased as demand for internet advertising from existing and new clients, including those in the human resources industry, rose amid stronger demand for digital marketing. As a result, revenue and profit increased compared with the same period of the previous fiscal year.」
The impact of cancellations by major customers and reduced advertising budgets continues to be cited, but these events had already been disclosed by the previous quarter. - FY2023-Q2RestatedAnnual report
「During the six months ended 30 November 2020, the business was affected by the cancellation of contracts by some major clients and reductions in advertising budgets in the previous fiscal year. However, advertising budgets increased as demand for internet advertising from existing and new clients, including those in the human resources industry, rose amid stronger demand for digital marketing. As a result, revenue and profit increased slightly compared with the same period of the previous fiscal year.」
The cancellation of contracts by specific major customers and reduced advertising budgets continue to be cited as factors affecting performance, but their actual impact had already been disclosed in the previous quarter and this is not a new development. - FY2023-Q1MaterialisedAnnual report
「During the three months ended 31 August 2020, the business was affected by the cancellation of contracts by some major clients and reductions in advertising budgets in the previous fiscal year. However, advertising budgets increased as demand for internet advertising from existing and new clients, including those in the human resources industry, rose amid stronger demand for digital marketing. As a result, revenue and profit declined slightly compared with the same period of the previous fiscal year.」
The cancellation of contracts by some major customers affected performance in the professional services business, with the risk of revenue concentration among specific customers emerging as an actual cause of the decline in revenue. - FY2022First statedAnnual report
「Although adoption of the SaaS business has expanded among small and medium-sized business operators and there is no concentration in the customer base, the professional services business, which provides advertising management services, has a high degree of revenue dependence on specific customers. Going forward, the policy is to reduce dependence on specific customers by further strengthening relationships with existing customers through services in each segment and strengthening the customer base by increasing the number of new projects.」
The company disclosed a new risk item: while the SaaS business has no concentration in its customer base, the professional services business has a high degree of revenue dependence on specific customers.