BlueMeme Inc.

Business Details

The BlueMeme Group consists of a single DX Business segment. The company has two main pillars: "Professional Services," which provides consulting, contract development, and training using its proprietary "AGILE-DX" development methodology, and "Software License Sales," which sells licenses for low-code platforms such as OutSystems®. The company undertakes core business system development for mid-sized and large operating companies, and as the first OutSystems Premier Partner certified in Asia, it maintains high barriers to entry. In June 2025, the company newly established the subsidiary Alter Design Consulting, which was added to the scope of consolidation.

Recent Overview

Cumulative 3Q revenue increased 53.0% YoY to ¥2,513 million, with operating profit turning positive at ¥113 million

In the cumulative nine-month period of the third quarter of FY2026 (ending March 2026) (April to December 2025), revenue reached ¥2,513 million (up 53.0% YoY), achieving significant revenue growth. The company had recorded an operating loss of ¥60 million in the same period of the previous year, but turned profitable this period with operating profit of ¥113 million. Cost of sales increased to ¥1,385 million (from ¥824 million in the same period of the previous year), and SG&A expenses increased to ¥1,015 million (from ¥878 million), but revenue growth outpaced these increases. An impairment loss of ¥1 million was recorded as an extraordinary loss in connection with the partial relocation of the Fukuoka office. There is no change to the full-year earnings forecast (revenue of ¥3,300 million, operating profit of ¥150 million). As of the end of 3Q, progress toward the full-year forecast stood at 76.2% for revenue and 75.4% for operating profit.

Key Products

Growth Drivers

• Continued expansion of DX demand: IT investment continues to trend steadily upward against a backdrop of labor shortage responses and modernization demand
• Expansion of contract development in Professional Services: Consulting and contract development centered on OutSystems® expanded steadily, driving a 53.0% increase in revenue
• Improvement in gross profit margin: Gross profit expanded from ¥817 million to ¥1,128 million, confirming a structure in which revenue growth outpaces cost increases
• Expansion of business scope through the establishment of subsidiary Alter Design Consulting (established June 2025, consolidated from Q1)
• High barriers to entry and competitive advantage as an OutSystems Premier Partner

Risks

• Securing and developing engineering talent: Risk that difficulty in recruiting personnel skilled in low-code and agile methodologies becomes a bottleneck to growth
• Dependency on a specific product: High dependence on OutSystems® poses a risk that changes in licensing terms could affect service provision
• Persistently high SG&A expenses: Cumulative 3Q SG&A expenses increased to ¥1,015 million (from ¥878 million in the same period of the previous year), a trend that could squeeze profits if revenue growth slows
• Project risk: The company has a track record of recording provisions for loss on order received (balance of ¥1 million as of the end of 3Q), posing a risk of losses arising from deterioration in project progress
• Decline in equity ratio: The equity ratio declined to 58.3% as of the end of 3Q (from 64.6% at the end of the previous fiscal year), with continued liability expansion mainly due to an increase in accounts payable (from ¥1,080 million to ¥1,372 million)
• Continued losses attributable to non-controlling interests: Losses attributable to non-controlling interests related to the subsidiary Alter Design Consulting amounted to ¥6 million in cumulative 3Q, reflecting upfront start-up costs