Ricksoft Co., Ltd.

Business Details

Ricksoft consists of a single segment, the "Solutions Business." Centered on Atlassian products (Jira, Confluence, etc.), the company combines license sales, SI services, managed services, and proprietary products to provide integrated support from customer problem-solving through operations. Its primary customers are large enterprises, and it pursues continuous expansion of usage through a land-and-expand strategy. In the first quarter of FY2027 (ending March 2027) (March–May 2026), net sales were ¥2,840 million (down 1.1% year on year) and operating profit was ¥125 million (down 3.3% year on year), a slight decline in both revenue and profit.

Recent Overview

Q1 saw a slight decline in both revenue and profit, but ordinary and net profit improved significantly due to the disappearance of foreign exchange losses

In the first quarter of FY2027 (ending March 2027) (March–May 2026), net sales were ¥2,840 million (down 1.1% year on year) and operating profit was ¥125 million (down 3.3% year on year), a slight decline in both revenue and profit. On the other hand, the foreign exchange loss of ¥33 million recorded in the same period of the previous year was zero this period, and ordinary profit improved significantly to ¥127 million (up 31.2% year on year), with net profit at ¥92 million (up 24.8% year on year). In addition, in June 2026 the company resolved to enter into a capital and business alliance with Information Officer Pte. Ltd., a Singapore-based IT consulting firm with a customer base spanning Southeast Asia to the United States; the firm is to be renamed Ricksoft Singapore Pte. Ltd. The company aims to accelerate its global expansion, including into the Asia-Pacific region. There has been no change to the full-year earnings forecast (net sales of ¥12,195 million, operating profit of ¥200 million).

Key Products

Growth Drivers

• Continued acceleration of DX investment and cloud/AI demand across all industries (full-scale emergence of demand for business model transformation including generative AI implementation)
• Larger-scale license deals driven by capturing demand for Atlassian product cloud migration
• Expansion of usage within existing large enterprise customers through the land-and-expand strategy (accumulation of recurring revenue)
• Acceleration of global expansion into the Asia-Pacific and U.S. markets through the capital and business alliance with Ricksoft Singapore Pte. Ltd. (formerly Information Officer Pte. Ltd.)
• Establishing a position as a high-value-added DX realization partner for customers through strengthened consulting services
• Productivity improvement and cost reduction through internal DX promotion and work-style reform

Risks

• High dependence on sales of Atlassian products, meaning changes in the company's product strategy, pricing policy, or partner programs directly affect performance
• License procurement costs are increasing faster than net sales, leading to a continued decline in gross profit margin (Q1 gross profit margin was 21.4%)
• Significant decline in operating profit due to upfront strategic investment (full-year forecast is operating profit of ¥200 million, down 46.7% year on year)
• Rising recruitment costs and difficulty securing talent amid intensifying competition for IT personnel
• Intensifying competition for proprietary products (Atlassian add-ons) against overseas competitor products
• Foreign exchange fluctuation risk (a foreign exchange loss of ¥33 million was recorded in the same period of the previous year; this was eliminated in the current period, but fluctuation risk remains)
• Geopolitical risk and overseas business operation risk associated with global expansion (including the Singapore base)