Sansan, Inc.

Business Details

The core segment deploying the sales AX service "Sansan," the accounting AX service "Bill One," the transaction management service "Contract One," the AI interface "Ask One," and other offerings for corporate clients. It converts analog information such as business cards, invoices, and contracts into highly accurate data, supporting corporate revenue growth, cost reduction, and operational efficiency. Centered on a subscription-based monthly billing model, it boasts a high customer retention rate with a monthly churn rate of under 1%. This core business accounts for approximately 87% of consolidated revenue.

Recent Overview

Revenue up 24.0%, adjusted operating profit up 132.9%, with substantially improved profitability

For the full year of FY2026 (ending May 2026), the Sansan/Bill One Business achieved revenue of ¥46,847 million (up 24.0% year on year) and adjusted operating profit of ¥8,340 million (up 132.9% year on year). "Bill One" continued its high growth, with the number of paid contracts up 31.9% year on year and MRR up 34.9% year on year. "Sansan" saw its number of contracts increase 14.0% year on year due to a strengthened sales structure. Other revenue, including "Contract One" and Nine Out, Inc.'s "Ask One," expanded rapidly, up 69.1% year on year. For FY2027 (ending May 2027), Sansan/Bill One Business revenue is forecast at ¥54,811 million to ¥56,217 million (up 17.0% to 20.0% year on year).

Key Products

Growth Drivers

• "Bill One" continued high growth, with the number of paid contracts up 31.9% year on year and MRR up 34.9% year on year, driven by a strengthened sales structure and new AI-powered feature development
• The number of "Sansan" contracts increased 14.0% year on year due to a strengthened sales structure, with steady progress in acquiring new small and medium-sized contracts
• The cloud invoice receipt service market continued its high growth in fiscal 2024, up 52.4% year on year; market expansion has continued even after the one-time surge in demand related to the Invoice System and Electronic Bookkeeping Act compliance subsided
• Amid the global expansion of AI-related investment, the company is strengthening its value proposition as data infrastructure in the AX (AI Transformation) domain, and promoting feature development premised on the use of generative AI
• Adjusted operating profit margin improved substantially from approximately 9.5% in the prior period to approximately 17.8%, driven by improved gross profit margin from revenue growth and lower personnel and advertising expense ratios
• New services such as "Contract One" and Nine Out, Inc.'s "Ask One" expanded rapidly, up 69.1% year on year, advancing revenue diversification within the segment

Risks

• "Sansan"'s trailing 12-month average monthly churn rate showed a gradual upward trend at 0.55% (up 0.06pt year on year), requiring continued efforts in customer retention
• While holding an 85.8% share of the corporate business card management service market, there is a risk of emerging competing services leveraging AI
• While "Bill One" has maintained growth even after the one-time demand related to Invoice System and Electronic Bookkeeping Act compliance subsided, there is a risk of growth slowdown as regulatory compliance-related demand fades
• Given the large volume of personal and corporate information handled, an information security incident would have a significant impact on the business and trust
• Goodwill amortization burden and integration risk associated with M&A investments such as the full acquisition of Nine Out, Inc. (acquisition cost of ¥1,412 million)
• Personnel expenses are expected to increase approximately 12% year on year and advertising expenses approximately 8% year on year in FY2027 (ending May 2027); cost control during this phase of expanded investment will affect profit margins