L is B Corp.
145A・Growth Market・Information & Communication
DX Solutions Business
L is B's core business segment driving on-site DX for the construction industry and others
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Q1 cumulative) | ¥665 million | ¥514 million | ↑ |
| Segment profit (Q1 cumulative) | ¥75 million | ¥59 million | ↑ |
| ARR (at period end) | ¥1,929 million (¥1,929,905 thousand) | ¥1,880 million (¥1,879,615 thousand) | ↑ |
| Recurring revenue ratio | 94.1% | 92.5% | ↑ |
| Number of contracted companies (excluding OEM) | 707 companies | 696 companies | ↑ |
| Recurring revenue (Q1 cumulative) | ¥571 million | － | ↑ |
Business Details
Provides SaaS services centered on the business chat platform "direct" for companies with on-site operations in construction, distribution/retail, infrastructure, and other industries. The segment encompasses cross-selling of a suite of linked solutions (Tag Shot / Tag Album, Knowledge Video, etc.), DX consulting, contract system development, and BIM solutions (IU BIM STUDIO Co., Ltd.), expanding the value proposition into a comprehensive on-site DX platform. It has a stable revenue structure, with recurring revenue accounting for 94.1% of total revenue.
Recent Overview
IU BIM STUDIO began contributing to consolidated results; ARR and number of contracted companies continued to expand
In Q1 of FY2026 (ending December 2026) (January to March 2026), the segment achieved revenue of ¥665 million (up 29.4% year on year) and segment profit of ¥75 million (up 26.0% year on year). The customer base expanded through increases in the number of IDs for the flagship service "direct" and the promotion of cross-selling. ARR reached ¥1,929,905 thousand, the recurring revenue ratio reached 94.1%, and the number of contracted companies reached 707. Results from IU BIM STUDIO Co., Ltd., which became a subsidiary in the previous consolidated fiscal year, began contributing to consolidated results from this first quarter.
Key Products
Growth Drivers
- ARR growth driven by increases in the number of IDs and upselling to existing customers for the flagship service "direct"
- Promotion of cross-selling of linked solutions such as "Tag Shot / Tag Album" and "Knowledge Video"
- Expansion of value proposition into the design and planning domain through the start of consolidated contribution from IU BIM STUDIO Co., Ltd. (from Q1 of FY2026 (ending December 2026))
- Growing demand for on-site DX driven by factors such as compliance with overtime work caps and the principle-based application of BIM/CIM in the construction industry
- Increasing need for productivity improvement across the construction industry amid worsening labor shortages and rising material costs
Risks
- Revenue concentration risk from Trust Bank Co., Ltd. (a single customer accounting for approximately 22% of revenue in FY2025 (ended December 2025))
- Rising customer acquisition costs and pricing pressure from intensifying competition, including from general-purpose business chat competitors
- Impairment risk related to goodwill (¥473 million) at IU BIM STUDIO Co., Ltd. and the risk of additional earn-out payments (up to ¥50 million)
- Risk of demand decline due to economic fluctuations in target industries such as construction and reduced construction investment
- Risk of margin pressure from rising personnel expenses associated with strengthening the development organization and expanding headcount
Last updated: April 14, 2026