User Local. Inc.
3984・Prime Market・Information & Communication
Business
User Local, Inc. was founded in 2005 under the corporate mission of "Evolving the World through Big Data and Artificial Intelligence," and listed on the Tokyo Stock Exchange Mothers market (now the Prime Market) in 2017. The company specializes exclusively in AI and data analytics. Its core services are built around four pillars: the web marketing support tool "User Insight," the social media analytics tool "Social Insight," the inquiry automation tool "Support Chatbot," and the enterprise generative AI platform "User Local ChatAI." The company supports client decision-making, operational efficiency, and DX (digital transformation) promotion across a wide range of industries and company sizes, maintaining a diversified customer base with no single customer accounting for more than 10% of revenue.
Business Model
The company provides services in a low-cost, easy-to-implement SaaS format, building up a stock-type model that accumulates monthly and annual subscription revenue. As the number of users increases, big data accumulates, creating a network effect structure in which AI precision and analytical capability improve. Capital expenditure is limited mainly to infrastructure such as servers, and the company maintains financial discipline by funding this through operating cash flow with zero borrowings.
Company Strengths
From FY2021 to FY2025, revenue grew from ¥2,088 million to ¥4,582 million (approximately 2.2x over five years), while operating income expanded from ¥855 million to ¥1,971 million. The operating margin in FY2025 reached 43.0%, maintaining extremely high profitability as a SaaS company.
As of the end of FY2025, outstanding borrowings were zero, and cash and deposits stood at ¥8,546 million (approximately 86% of total assets of ¥9,971 million). Against total net assets of ¥8,699 million, the equity ratio was approximately 87%, indicating extremely high financial soundness and a financial base capable of supporting both business investment and shareholder returns.
The company has obtained ISO/IEC 27001, the international standard for information security management systems (ISMS), and ISO/IEC 27017, the cloud security standard. It conducts information management training for all employees, contributing to gaining the trust of client companies as a SaaS company that handles data.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years grew from ¥2,088 million (FY2021) to ¥4,582 million (FY2025), an average annual growth rate of approximately 21.8%. For the cumulative nine months of Q3 FY2026 (ending June 2026), revenue was ¥3,934 million (up 17.0% year on year), operating profit was ¥1,889 million (up 24.4%), ordinary profit was ¥1,903 million (up 25.3%), and quarterly net profit was ¥1,384 million (up 31.9%), with growth rates at every profit stage exceeding the revenue growth rate, indicating accelerating profitability improvement. During the period, extraordinary income totaling ¥100 million was recorded, comprising a ¥55 million gain on sale of investment securities and ¥45 million in compensation received, bringing pre-tax quarterly net profit to ¥2,004 million. On the financial position side, total assets were ¥10,742 million, net assets were ¥9,499 million, and the equity ratio stood at 88.4%, maintaining financial soundness. As for the external environment, growing social interest in AI and DX promotion is boosting demand for big data and AI cloud services.
Growth Strategy
Pursuing medium- to long-term growth through three pillars: expansion of AI algorithms, AI implementation in existing services, and development of new AI services
Through the development and enhancement of proprietary AI algorithms, the company is building the foundation for both raising the added value of its existing four services and creating new services. It also continues to invest in the development of AI engineers and data scientists to maintain and improve its technological competitiveness.
AI functions are being implemented sequentially across User Insight, Social Insight, Support Chatbot, and ChatAI to address customers' needs for operational efficiency and DX promotion. The aim is to suppress churn and raise unit prices through improved service quality.
The company is actively promoting service integration with conversational AI and generative AI such as ChatGPT, as well as new product development combining big data analysis and AI. It aims to acquire new customers and expand its market centered on
The company is strengthening sales promotion activities to develop new business partners while also building a customer success system aimed at maximizing the LTV of existing customers. Cumulative revenue for the first three quarters of FY2026 (ending June 2026) grew 17.0%, reflecting the impact of these strengthened systems on business results.
The annual dividend forecast for FY2026 (ending June 2026) has been revised to ¥24 (an increase of ¥10 from ¥14 in the previous period). In addition, the introduction of a shareholder benefit program was announced on May 7, 2026. This clarifies the company's policy of pursuing both growth investment and shareholder returns, supported by ample cash reserves.
Last updated: July 17, 2026