ENVALITH
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Hammock Inc.

173A・Growth Market・Information & Communication

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株式会社ハンモック logo
Hammock Inc.173A

Business

Hammock Co., Ltd. was established in 1994 and listed on the Tokyo Stock Exchange Growth Market in April 2024. It is an IT solutions company developing proprietary products across three business areas: "Network Solutions" (IT asset management and security measures), "Sales DX Solutions" (business card management, SFA/CRM, MA, and new customer acquisition), and "AI Data Entry Solutions" (data entry process efficiency improvement using AI-OCR). Its customer base spans private companies to government agencies, and small and medium-sized enterprises to large corporations, with adoption across a wide range of industries. Recurring revenue accounts for over 80% of sales, giving the company a stable revenue base.

Business Model

The company provides its products in both on-premise and cloud formats, generating recurring revenue through subscription billing for the cloud format and monthly usage-based billing under maintenance contracts for the on-premise format. Nearly all products are developed in-house, enabling a rapid cycle of feature additions and new product development that directly reflects customer needs. Customer success initiatives supporting implementation and operation help raise retention rates, driving growth through the dual approach of upselling to existing customers and acquiring new customers.

Company Strengths

In FY2026 (ending March 2026), the monthly average cloud churn rate for Network Solutions remained at 0.35%, and for Sales DX Solutions (excluding OEM) at 0.77%, both significantly below industry levels. Onboarding and operational support by Customer Success underpin retention rates, achieving a stable revenue base in which recurring revenue accounts for over 80% of total revenue.

Nearly all products offered are developed in-house, allowing customer needs to be reflected directly in products without constraints from integration with third-party products. The company has a track record of rapid responsiveness to market needs, including the October 2024 release of DX OCR, the addition of a ChatGPT transmission log acquisition feature, and the launch of an MDR service integrated with SentinelOne. It also holds proprietary patents (WOCR: Patent No. 5464474; Online Business Card Exchange: Patent No. 6856960).

As of the end of FY2026 (ending March 2026), interest-bearing debt was zero, and cash and cash equivalents stood at ¥4,740 million (an increase of ¥1,574 million year on year). Owing to a business model based primarily on upfront receipt of sales proceeds, operating cash flow of ¥1,619 million was secured. With debt-free management and ample cash on hand, the company maintains a financial structure that enables flexible allocation of funds to business investment and product development.

ENVALITH's Perspective

Network Solution ARR for FY2026 (ending March 2026) was ¥1,531 million (up 32.4% YoY), maintaining high growth. The FY2027 (ending March 2027) plan projects sales for this solution at ¥3,400 million (up 8.3% YoY), and the focus is whether a slowdown in ARR growth is already factored in. Close quarterly monitoring is needed of the pace of further increase in the cloud ratio from 43.3% and churn rate trends.

The forecast for net income attributable to owners of parent for FY2027 (ending March 2027) is ¥585 million (down 14.6% YoY), a significant decline, while operating profit is forecast to increase to ¥883 million (up 5.9%). In FY2026 (ending March 2026), a one-off extraordinary gain of ¥178 million from the sale and redemption of investment securities boosted net income, and the disappearance of this factor is believed to be the main cause of the decline. To assess the underlying profit level, attention should be paid to trends in the effective corporate tax rate and the presence or absence of extraordinary gains/losses.

Sales to Otsuka Corporation, a major customer, amounted to ¥560 million (approximately 11.5% of total sales), indicating a certain degree of concentration. If diversification of sales channels does not progress, changes in the relationship with this customer pose a risk of directly affecting business performance. On the other hand, in the Sales DX Solution business, the decline in OEM-provided sales has bottomed out, and a return to a growth trajectory is expected; whether the FY2027 (ending March 2027) plan (¥1,449 million, up 6.9%) can be achieved will serve as a measure of progress in sales channel strategy.

Growth Strategy

Accelerating sustainable growth through three pillars: expanding cloud ARR, introducing AI functions, and rolling out new products

Promoting migration to cloud and upselling through functional enhancements to AssetView Cloud+ (ChatGPT transmission log acquisition, external system integration, event monitoring log alerts) and the launch of an MDR service integrated with SentinelOne. Targeting planned revenue of ¥3,400 million (+8.3% year-on-year) for FY2027 (ending March 2027).

With the decline in OEM-related revenue having bottomed out, the company aims to return to a growth trajectory through renewals and upselling to existing customers, as well as strengthening new customer acquisition via AI functions (expanded corporate database, group company structure identification features, etc.). ARR excluding OEM is expanding steadily, reaching ¥1,181 million (+10.3% year-on-year).

Promoting migration from on-premise products to the cloud AI-OCR service "DX OCR" to rebuild the earnings base. Recovery of usage-based processing volume for the cloud-based BPO service "WOZE" also remains a challenge. Planned revenue of ¥437 million (+10.7% year-on-year) for FY2027 (ending March 2027) is expected, marking a return to growth.

Last updated: July 19, 2026