ENVALITH
rakumo株式会社 logo

rakumo Inc.

4060・Growth Market・Information & Communication

Official website
rakumo株式会社 logo
rakumo Inc.4060

Business

rakumo Inc. operates under the vision of 'Making work easier and more enjoyable,' offering the 'rakumo' series of enterprise groupware (calendar, attendance management, expense settlement, workflow, etc.) via SaaS. Deployed as add-on tools integrated with the three major platforms—Google Workspace, Microsoft 365, and Salesforce—the company's solutions have been adopted by 2,552 companies (as of the end of December 2025), ranging from small and medium-sized enterprises to large corporations and local governments. The company has five consolidated subsidiaries (a Vietnam development base, gamba!, iVision, STARTRE, and AGENT SHARE), and is expanding its lineup of peripheral SaaS offerings in areas such as HR and video streaming/CMS. The company operates under the single segment of IT Business Solutions (Single Segment).

Business Model

The core "rakumo" service charges under an annual-contract, lump-sum-prepaid subscription model, accumulating revenue while keeping the churn rate low (0.67% full-year average for FY2025). Customers are acquired through two channels—direct in-house sales and a network of over 100 sales partners centered on agents such as Google Workspace—and ARPU is boosted through cross-selling of multiple products. The single-instance architecture holds down maintenance costs, achieving a high gross-margin structure with a cost-of-sales ratio of 29.6% (a 4.5-point improvement year on year).

Company Strengths

The monthly churn rate remained low, averaging 0.67% for the full FY2025 year. Because replacing groupware requires company-wide coordination, customers are less likely to cancel, and the customer base of 2,552 companies and 579 thousand unique users generates stable recurring revenue. Annual contracts and lump-sum advance payments also provide an advantage in terms of cash flow.

The cost of sales ratio for FY2025 (ending December 2025) was 29.6% (a 4.5-point improvement from 34.1% in the previous fiscal year). This was driven by suppressed maintenance costs through the single-instance approach and higher SaaS unit prices resulting from the price revision implemented in October 2025. Gross profit expanded to ¥1,289 million (up 35.5% year on year), growing at a pace exceeding the 26.8% revenue growth rate.

The company offers its products as add-on tools integrated with the three major cloud platforms: Google Workspace, Microsoft 365, and Salesforce. Because product development and maintenance must be tailored to each platform's specifications, entry barriers are high, and since launching the service in 2010 the company has accumulated a track record of over 1.2 million cumulative licenses along with development know-how.

ENVALITH's Perspective

Revenue for Q1 FY2026 accelerated, up 35.5% year on year, but selling, general and administrative expenses expanded to ¥257 million (up 51.6% year on year), significantly outpacing revenue growth. Goodwill amortization also surged from ¥9 million in the same period last year to ¥41 million, and quarterly net income attributable to owners of the parent fell 5.6% year on year to ¥67 million. The change in cost structure accompanying more active M&A activity is weighing on profitability, and the pace of improvement in the SG&A expense ratio will be a key focus of evaluation.

Adjusted EBITA (operating income plus goodwill amortization, stock compensation expenses, etc.) rose steadily to ¥171 million (up 22.3% year on year), indicating that underlying earnings power, excluding M&A-related non-cash expenses, has been maintained. Full-year adjusted EBITA guidance stands at ¥770 million (up 31.5% year on year), with Q1 progress at 22.2%. There has been no revision to the full-year earnings forecast, and the progress appears consistent with a plan premised on an earnings structure weighted toward the second half.

The strategy of expanding TAM by moving away from dependence on Google Workspace through the launch of the "rakumo for Microsoft 365" series demonstrates medium- to long-term growth potential. As an external factor, continued demand for cloud migration in the market environment serves as a tailwind, but competition in the Microsoft 365 market is intense, and accumulating customer acquisition results for the new series is a prerequisite for evaluation. Continued attention is also needed on the contribution of the generative AI-powered "rakumo Agent" to product differentiation.

Growth Strategy

Accelerating growth through three pillars: price revisions, entry into the Microsoft 365 market, and service expansion via M&A

The effect of the rakumo product price revision implemented in October 2025, which raised SaaS unit sales prices, continued into Q1 FY2026. It contributed to a 35.5% year-on-year increase in net sales, with penetration into the existing customer base progressing.

By launching the "rakumo for Microsoft 365" series, the company aims to break away from its dependence on Google Workspace and significantly expand its TAM. Accumulating customer acquisition results in the Microsoft 365 market is key to medium- to long-term growth.

Consolidation of STARTRE CMS and AGENT SHARE has expanded net sales in other services. Business alliances with Pasona Group and AvePoint Japan have created cross-selling opportunities. Balancing revenue with the increasing burden of goodwill amortization remains a challenge.

Marketing initiatives specialized for industry segments such as local governments, healthcare, construction, and education are improving the efficiency of new customer acquisition. The ability to accommodate industry-specific business workflows is a key differentiator from competitors.

Generative AI features such as the AI assistant function "rakumo Agent" are being incorporated into the product lineup, promoting product differentiation and improving customers' operational efficiency. This is expected to contribute to upselling to existing customers and acquisition of new customers.

Last updated: July 17, 2026