ENVALITH
Sansan株式会社 logo

Sansan, Inc.

4443・Prime Market・Information & Communication

Official website
Sansan株式会社 logo
Sansan, Inc.4443

Business

Sansan, Inc. operates under the mission of "generating innovation from encounters," developing the Sansan/Bill One Business, centered on the corporate sales DX service "Sansan" and the accounting DX service "Bill One," as well as the Eight Business, centered on the personal business card app "Eight." Its primary customers are domestic corporations across all industries and business types, and it digitizes analog information such as business cards, invoices, and contracts to support companies in expanding sales, reducing costs, and improving operational efficiency. Consolidated net sales for FY2025 (ended May 2025) reached ¥43,202 million, and the company has consistently maintained high growth since its listing on the Tokyo Stock Exchange Mothers market in 2019.

Business Model

All major services are fundamentally based on monthly subscription billing, with churn rates remaining below 1% on a trailing 12-month average basis: 0.49% for "Sansan" and 0.33% for "Bill One". "Sansan" is composed of license fees premised on company-wide employee usage plus scanner rental fees, while "Bill One" consists of an initial fee plus a monthly fee linked to the number of invoices digitized. By combining growth in the number of contracts with improvement in per-contract unit price (ARPU improvement), the structure is designed to maximize customer LTV.

Company Strengths

Sansan holds the No.1 revenue share of 84.1% in the corporate business card management service market (Seed Planning survey, January 2025). At the end of FY2025 (ending May 2025), the number of contracts stood at 10,701, and monthly recurring revenue per contract was ¥210 thousand, up 6.6% year on year, reflecting steady deepening of relationships with existing customers.

Through a proprietary system that combines machine learning and other technologies with human input, the company achieves a data digitization accuracy of 99.9% for analog information such as business cards and invoices. The vast amount of data accumulated since the company's founding, together with operational efficiencies enabled by its in-house developed generative AI, form the source of its competitiveness and constitute an entry barrier that is difficult for other companies to replicate.

Operating cash flow for FY2025 (ending May 2025) reached ¥9,651 million (up 76.0% year on year), and cash and cash equivalents at fiscal year-end amounted to ¥31,172 million. The advance-payment model, under which fees are received from customers upfront for the contract period, enhances capital efficiency, and the gross profit margin remains at a high level of 86.6%.

ENVALITH's Perspective

Adjusted operating profit for FY2026 (ending May 2026) came to ¥8,427 million (up 137.0% year on year), with an adjusted operating margin of 15.7%, a significant improvement from 8.2% in the previous fiscal year. As Bill One's MRR grew 34.9% year on year and the number of paid contracts increased 31.9%, maintaining high growth, declines in the advertising expense ratio and personnel expense ratio relative to sales accelerated profit expansion. As an external factor, the market environment remains favorable: even after the one-time surge in demand related to the Invoice System and the Electronic Books Preservation Act subsided, the cloud invoice receipt market expanded 52.4% year on year, indicating that Bill One still has substantial room for growth. The adjusted operating margin for FY2027 (ending May 2027) is projected at 20.0%-22.5%, suggesting the accelerating profit growth phase will continue.

As its medium-term financial policy for FY2027-FY2029 (ending May 2027 to May 2029), the company has set targets of an average annual revenue growth rate of 16-20% and an adjusted operating margin of 25-30% for FY2029 (ending May 2029). The forecast for FY2027 (ending May 2027) calls for revenue of ¥63,706 million to ¥65,319 million (up 18.5%-21.5% year on year) and adjusted operating profit of ¥12,741 million to ¥14,696 million (up 51.2%-74.4% year on year), a fairly wide range; given the profit structure weighted toward the second half, confirming progress in the first half will be important. The slight decline in Sansan's monthly recurring revenue per contract, down 1.0% year on year, warrants attention from the perspective of ARPU improvement.

At the end of FY2026 (ending May 2026), the company paid its first-ever dividend (¥2.50 per share, payout ratio of 4.7%) and also completed a share buyback with an upper limit of ¥2,000 million (cumulative shares acquired: 1,331,600 shares, total acquisition cost of approximately ¥2,000 million). The commencement of shareholder returns signals confidence in structural profit growth. On the other hand, while the provision for loss on stock sale contract of ¥2,301 million recorded in the previous fiscal year (related to Logmi Inc.) was reversed in the current fiscal year, a valuation loss on investment securities of ¥50 million and an impairment loss of ¥231 million were incurred, meaning M&A and investment securities risks continue to warrant monitoring. The profit contribution from the full consolidation of Nine Out Co., Ltd. (acquisition cost of ¥1,412 million) as a wholly owned subsidiary is also a point of interest going forward.

Growth Strategy

Deepening the Sansan and Bill One markets with enhanced AI capabilities, accelerating monetization of the Eight Business, and achieving a mid-term adjusted operating margin of 25–30%

Through strengthened AI-driven feature development and expansion of the sales organization, "Sansan" revenue for FY2027 (ending May 2027) is expected to grow 10.0–12.0% year on year (¥34,198 million–¥34,820 million). The number of contracts is expanding steadily at 12,199 (up 14.0% year on year), but monthly recurring revenue per contract stands at ¥208 thousand, showing a slight downward trend, making ARPU improvement a challenge.

While maintaining the No.1 revenue share in the cloud invoice receipt service market, through strengthened sales organization and development of new AI-driven features, "Bill One" revenue for FY2027 (ending May 2027) is expected to grow 28.0–32.0% year on year (¥17,510 million–¥18,057 million). MRR stands at ¥1,231 million with 5,188 paid contracts (up 31.9% year on year), continuing its high growth trajectory.

Driven by an increase in the number of both online and offline Business Events held and the strong performance of recruitment-related services (Eight Career), Eight Business revenue for FY2027 (ending May 2027) is expected to grow 23.0–27.0% year on year (¥8,266 million–¥8,534 million). Full-year adjusted operating profit for FY2026 (ending May 2026) reached profitability at ¥237 million, but the fourth quarter turned to a loss due to upfront investment, making earnings stabilization a challenge.

As the mid-term financial policy for FY2027–FY2029 (ending May 2027 to May 2029), the company has set targets of 16–20% average annual revenue growth and an adjusted operating margin of 25–30% for FY2029 (ending May 2029). The plan calls for a phased improvement from the FY2026 (ending May 2026) adjusted operating margin of 15.7% to a projected 20.0–22.5% in FY2027 (ending May 2027). The policy aims to continue profit growth while expecting personnel expenses to increase by roughly 12% year on year and advertising expenses by roughly 8% year on year.

An initial dividend (¥2.50 per share) was paid at the end of FY2026 (ending May 2026), and an annual dividend of ¥5.00 (interim ¥2.50, year-end ¥2.50) is projected for FY2027 (ending May 2027). A share buyback with an upper limit of ¥2,000 million has also been completed (cumulative acquisition value of approximately ¥2,000 million). Against a backdrop of structural profit growth, the company has begun shareholder returns, and ROE improved significantly to 38.8%, reflecting a substantial improvement in capital efficiency.

Last updated: July 17, 2026