Kaizen Platform, Inc.

Business Details

The Professional Segment provides comprehensive corporate DX support through specialized services such as Consulting / Creative Production / BPO / SES. The Cloud Segment offers UX improvement services—including A/B testing, personalization, and smart search leveraging generative AI—through a proprietary cloud service that can be implemented with just a tag installation. Cross-selling between the two segments enables a consistent support framework from strategy formulation through execution and operation, contributing to the maximization of clients' KPIs.

Recent Overview

The Professional division fell into a significant loss due to declining customer unit prices, while the Cloud division saw revenue growth from higher unit prices but a slight decline in profit

In the first quarter of FY2026 (ending December 2026) (January to March), the Professional Segment maintained a steady number of transaction accounts, but production and marketing-related revenue was weak and customer unit prices declined, resulting in revenue of ¥932 million (down 5.9% year on year) and a segment loss of ¥80 million (worsening from a loss of ¥19 million in the same period of the prior year). Meanwhile, the Cloud Segment saw a significant increase in customer unit prices, achieving steady growth with revenue of ¥131 million (up 20.9% year on year), although segment profit declined slightly to ¥26 million (down 7.5% year on year). The full-year earnings forecast (revenue of ¥4,600 million, operating profit of ¥40 million) remains unchanged.

Key Products

Growth Drivers

• Continued increase in customer unit price (ARPU) in the Cloud Segment (customer unit prices increased significantly even as of Q1 FY2026 (ending December 2026))
• Expansion of added value through the new offering of generative AI agent-based solutions (Kaizen Conversion Agent and Kaizen Personalize Agent)
• Strengthening comprehensive DX support for major clients through Professional × Cloud cross-selling
• Acquisition of new customers under a risk-limited model through expansion of performance-based fee plans
• Strengthening upstream consulting functions through the establishment of "Kaizen AIX Consulting," a subsidiary specializing in AI and DX consulting (January 2026)
• Evolution of the AI integrator business under the "Magical UX" concept

Risks

• Risk of earnings deterioration due to declining customer unit prices in the Professional Segment (weakness in production and marketing-related revenue)
• Risk of shrinking revenue scale due to a decrease in the number of transaction accounts in the Professional Segment (from 636 in 2024 to 545 in 2025)
• Risk of an imbalanced customer base due to concentration on major clients (increasing dependence on specific clients)
• Risk of future impairment related to the unamortized goodwill balance of ¥443 million
• Risk of intensifying competition in the DX/AI domain and delayed response to technological changes
• Risk associated with executing a domestic-focused strategy following the shrinking of overseas operations due to the suspension of Kaizen Platform USA, Inc.'s business
• Risk of declining profitability in the Cloud Segment if the cost structure continues to deteriorate, despite revenue growth accompanied by a slight decline in profit