Cybozu, Inc.

Business Details

Cybozu operates "Software Development & Sales" as its sole reportable segment, engaging in groupware license sales, SaaS/cloud service provision, and high-value-added SI. Centered on its flagship product kintone, the company has a broad customer base ranging from small and medium-sized enterprises to large corporations and municipalities, and as of Q1 2026 surpassed 70,000 cloud service contracted companies and 3.8 million contracted user licenses. Cloud-related business revenue was ¥9,393 million (up 17.1% year-on-year), accounting for 91.7% of total revenue, reflecting a structure in which subscription-based revenue accumulates steadily.

Recent Overview

Q1 revenue up 17% driven by growing cloud revenue; user count surpasses 3.8 million

Consolidated revenue for Q1 FY2026 (ending December 2026) (January to March 2026) was ¥10,246 million (up 17.0% year-on-year), with cloud-related business revenue at ¥9,393 million (up 17.1%). The number of contracted user licenses surpassed 3.8 million, maintaining steady growth. On the cost side, cost of sales increased due to personnel expenses (pay raises and increased headcount), advertising expenses, R&D expenses, and expenses related to operating the basketball team, but operating profit reached ¥3,014 million (up 15.3%). The full-year earnings forecast remains unchanged. As a subsequent event, on May 14, 2026, the company resolved to acquire treasury shares up to a maximum of 3 million shares and ¥3,000 million.

Key Products

Growth Drivers

• Continued accumulation of cloud service contracted companies and users (surpassing 70,000 contracted companies and 3.8 million users)
• Expansion of revenue from services transferred over a period of time (subscriptions), which accounted for ¥10,020 million, or 97.8% of Q1 revenue
• Increase in average customer revenue per unit and revenue uplift effect from the price revision implemented in October 2024
• Strengthened new customer acquisition for large corporations and municipalities through the establishment of the Enterprise Business Division
• Enhanced value-added and expanded use cases through the incorporation of AI features, such as the kintone AI Lab, into various services
• Continued expansion of the partner sales ratio (66.0% of domestic cloud revenue comes through partners)
• Continued global expansion in North America, the Greater China region, and APAC, and expanded opportunities in the healthcare field through HIPAA compliance

Risks

• Pressure on profit margins from increased expenses, including personnel expenses (pay raises and increased headcount), advertising expenses, R&D expenses, and basketball team operating expenses
• Moderate trend in new customer acquisition due to the effects of price revisions and increases in the minimum number of contracted users
• Changes in the local business environment in global operations (particularly the business environment for Japanese companies in the Greater China region)
• Risks related to cloud service reliability and security incidents (during the transitional period of migration to the company's proprietary cloud infrastructure, NECO)
• Risk of profit margin volatility due to aggressive investment aimed at achieving the medium-term target (consolidated revenue of ¥509 million for FY2028 (ending December 2028))
• Decrease in valuation difference on available-for-sale securities due to declines in listed share prices (a decrease of ¥655 million in Q1)