Visual Processing Japan Co., Ltd.

Business Details

Operates the DX Solutions Business as a single segment, supporting the production, management, and distribution of media and content necessary for corporate sales promotion and marketing activities. The company provides its flagship product, CIERTO DAM｜PIM, via cloud (SaaS) and on-premise deployment, centrally managing digital assets and product information for diverse media such as websites, e-commerce sites, SNS, and catalogs. Customers span a wide range of industries including corporations and public institutions, with a cumulative installed base of 295 licenses (as of end of March 2026). In Q1 of FY2026 (ending March 2026), the company recorded net sales of ¥372 million (up 27.5% year on year) and operating profit of ¥63 million (up 41.9% year on year), continuing its high growth trajectory.

Recent Overview

In Q1 of FY2026 (ending December 2026), net sales rose 27.5% and quarterly net profit rose 118.8%, a significant increase in profit. ARR also increased 4.4% from the end of the prior fiscal year.

In Q1 of FY2026 (ending December 2026) (January to March), new deliveries of CIERTO DAM｜PIM totaled 19 (up 46% year on year), and in the development business, multiple projects were completed, including large-scale projects for government agencies, resulting in new development revenue up 250.2% year on year. Revenue from a large-scale SaaS order for APROOVE WM also contributed to sales. ARR expanded to ¥1,024,533 thousand (up 23.5% year on year), while the churn rate remained low at 0.70%. The disappearance of listing-related expenses (¥14,318 thousand) recorded in the same quarter of the prior year also contributed to a significant improvement in ordinary profit (up 111.0%). There is no change to the full-year earnings forecast (net sales of ¥1,520 million, operating profit of ¥301 million), with Q1 progress rates of 24.5% for net sales and 21.2% for operating profit. Additionally, a 2-for-1 stock split took effect on May 1, 2026.

Key Products

Growth Drivers

• Expansion of cloud adoption of CIERTO DAM｜PIM centered on companies utilizing websites and e-commerce sites (19 new contracts in Q1 of FY2026 ending December 2026, up 46% year on year)
• Expansion of the subscription revenue base through sustained ARR growth (¥1,024,533 thousand, up 23.5% year on year)
• Development of new demand through the spread of CIERTO management functions for in-house knowledge sharing and intellectual property management use cases
• Revenue contribution from the development business through the acquisition and completion of large-scale development projects, including those for government agencies
• Acquisition of large-scale SaaS projects through collaboration with overseas partner products such as APROOVE WM
• Strengthening of the sales partner network through the conclusion of official sales agency agreements with companies such as TOPPAN and Fuji Film Business Innovation Japan
• Acceleration of DX investment against the backdrop of interest in AI and automation (expansion of the sales promotion and marketing DX market)
• Expansion of the investor base and improvement of stock liquidity through the stock split (1-for-2, effective May 1, 2026)

Risks

• Q1 progress rates against the full-year earnings forecast are proceeding as planned at 24.5% for net sales and 21.2% for operating profit, but attention should be paid to the second-half-weighted structure
• Potential impact on the SaaS business from the rise of AI agents (such as Computer Use)
• Risk of macroeconomic deterioration due to rising crude oil prices and continued yen depreciation amid heightened tensions in the Middle East, leading to higher import prices
• Intensifying competition with major overseas vendors in the DAM market
• Risk of growth constraints due to delays in strengthening personnel and organizational capabilities amid business expansion
• The dividend forecast for FY2026 (ending December 2026) remains undecided at this time, leaving uncertainty regarding the shareholder return policy
• Liquidity risk exists due to the small number of shares issued at 1,661,900 shares (pre-split) (3,323,800 shares post-split)