BPaaS is driving revenue growth; the next focus is the sustainability of high growth

Domain revenue for the six months ended 30 June 2026 was ¥4,083.099 million for SaaS and ¥1,193.835 million for BPaaS. In the same period a year earlier, SaaS revenue was ¥3,859.331 million and BPaaS revenue was ¥672.711 million, representing increases of ¥223.768 million and ¥521.124 million, respectively. BPaaS alone accounted for approximately 70% of the ¥744.891 million increase in consolidated revenue, making it the current central driver of revenue growth.

On a standalone second-quarter basis, BPaaS revenue also rose 84.0% year on year to ¥645 million. SaaS revenue, meanwhile, increased 5.0% year on year to ¥2,044 million. Accordingly, at the next earnings release, it will be important to assess not only the absolute level of BPaaS revenue but also the extent to which its year-on-year growth rate slows from the second quarter's 84.0%. If BPaaS continues hiring operators and expanding its customer base, another point to monitor will be whether rising personnel expenses weigh on profit margins alongside revenue growth.

From FY2026-H1, the Chatwork personnel evaluation system and Chatwork time and attendance management system were reclassified from the SaaS domain to the BPaaS domain, and the prior-year comparative information was also restated under the revised classification. Growth rates between the domains remain reasonably comparable, but they include the effect of revenue previously included in SaaS moving to BPaaS. In FY2026-Q3, the focus will be on the restated BPaaS revenue, the contributions from existing and new services, and whether profit or profit margins by domain are disclosed.