User Local. Inc.

Business Details

Guided by the corporate philosophy of "Advancing the world through big data and artificial intelligence," the company operates four SaaS-based services spanning marketing support, customer support automation, and generative AI utilization. It provides value in the form of decision-support and operational efficiency (DX promotion) for client companies, with domestic corporations as its primary customers. The business model exhibits a network-effect structure in which increasing users leads to greater data accumulation, which in turn improves AI accuracy. The company maintains sound financial health with zero interest-bearing debt and an equity ratio exceeding 88%, while continuing to invest in itself using operating cash flow as a funding source.

Recent Overview

Cumulative 3Q net sales grew +17% and operating profit +24%, reflecting accelerating growth; a dividend increase was also announced

For the cumulative third quarter of FY2026 (ending June 2026) (July 2025 to March 2026), net sales reached ¥3,934 million (+17.0% YoY), operating profit ¥1,889 million (+24.4% YoY), and quarterly net profit ¥1,384 million (+31.9% YoY), achieving double-digit growth across all profit line items. The company recorded extraordinary income of ¥55 million in gain on sale of investment securities and ¥44 million in compensation received, bringing quarterly net profit before income taxes to ¥2,003 million. The full-year earnings forecast (net sales of ¥5,284 million and operating profit of ¥2,207 million) remains unchanged, with the progress rate against the full-year forecast reaching a high level of 74.5% for net sales and 85.6% for operating profit through the cumulative 3Q. The company also raised its forecast for the year-end dividend from ¥10 to ¥14 (bringing the annual dividend, combined with the ¥10 interim dividend, to ¥24), and announced the introduction of a shareholder benefit program. Cash and deposits stood at ¥9,394 million, an increase of ¥848 million from the end of the previous fiscal year, further strengthening the company's financial foundation.

Key Products

Growth Drivers

• Expanding demand for big data and AI cloud services amid growing social interest in AI and DX promotion
• Quality improvements and enhanced sales promotion activities for User Insight, Social Insight, Support Chatbot, and ChatAI
• Development of new client accounts through strengthened sales management and customer success systems
• R&D investment centered on three pillars: expanding proprietary AI algorithms, implementing AI into existing services, and developing new AI services
• Enhanced added value and new customer acquisition through service integration with generative AI (such as ChatGPT)
• Continued improvement in service quality through ongoing training and development of AI engineers and data scientists

Risks

• Intensifying international competition in the generative AI field (competition with major tech companies and startups)
• Difficulty in securing and developing talented personnel such as AI engineers and data scientists
• Maintaining stable system operations and security management given dependence on processing vast amounts of data
• Macroeconomic uncertainty stemming from price increases due to exchange rate fluctuations, as well as Middle East tensions and U.S. policy developments
• Geographic concentration risk due to high dependence on the domestic market, although the risk of revenue concentration in specific customers is low