DreamArts Corporation
4811・Growth Market・Information & Communication
Business
Dream Arts Co., Ltd. was founded in 1996 and listed on the TSE Growth Market in October 2023. Under its mission "to contribute to the development of people, organizations, and society overflowing with the joy of co-creation," the company primarily targets approximately 3,700 large enterprises with 1,000 or more employees (the BD market). Its flagship product is the no-code development tool "SmartDB®," alongside the internal portal construction tool "InsuiteX®," the information-sharing tool for chain stores "Shopran®," and "DCR," an integrated development and operations service for specific clients. The business is organized into three segments—Cloud Business, On-Premise Business, and Professional Services—and the company has a development base in Dalian, China, through a consolidated subsidiary.
Business Model
The Cloud Business (revenue of ¥4,469 million) is centered on recurring revenue from SaaS monthly usage fees, promoting upselling through a combination of user licenses, binder licenses, and option licenses. The On-Premise Business (¥525 million) generates recurring revenue from maintenance fees for existing customers. Professional Services (¥660 million) generates spot revenue from implementation support and development contracting. High cash generation capability is achieved through a prepayment model in which usage fees for a certain period are received in advance at the start of a contract.
Company Strengths
Since the planning stage in 2004, the company has adopted complete no-code as its design philosophy, covering complex workflow management, authority management, and ERP front-end system support required by large organizations. While domestic competitors mainly target small and medium-sized enterprises and overseas products are considered inadequate for Japan-specific organizational structures, the company differentiates itself through functional comprehensiveness and investment efficiency.
In FY2025 (ending December 2025), the recurring revenue ratio reached 87.5%, and the net revenue retention rate (NRR) for horizontal SaaS remained at 109.8%. Through its advance payment model, the company secured cash and cash equivalents of ¥4,122,722 thousand (¥4,122 million), building a stable financial foundation not dependent on external funding.
As of the end of FY2025 (ending December 2025), the number of companies implementing horizontal SaaS reached 195 (up 34 companies, or +21.1%, year on year), with MRR of ¥319,688 thousand (¥319 million). The company leverages the business digitalization know-how accumulated through its extensive implementation track record to continuously strengthen product functionality, and has also established an ecosystem to promote utilization through a certification program (SCS) and a user community.
ENVALITH's Perspective
Performance Trend
Over the past three fiscal periods, the company has maintained a trend of increasing revenue and profit (net sales grew from ¥4,440 million in FY2023 to ¥5,654 million in FY2025, with operating profit rising from ¥578 million to ¥975 million). Cumulative Q1 results for the fiscal year ending December 2026 showed net sales of ¥1,461 million (up 2.0% year on year), maintaining revenue growth, but operating profit fell sharply to ¥263 million (down 25.1% year on year), ordinary profit to ¥287 million (down 36.2% year on year), and quarterly net profit attributable to owners of the parent to ¥236 million (down 22.6% year on year), representing substantial declines at every profit stage. The main causes were a decline from the prior-year period's large-scale license sales and Professional Services revenue, as well as a rise in the SG&A ratio (up 8.2 points year on year to 46.6%). The full-year earnings forecast calls for net sales of ¥6,250 million (up 10.5% year on year) but operating profit of ¥865 million (down 11.2% year on year), a forecast decline in profit. While the company benefits from favorable external tailwinds in the form of demand for DX among large enterprises, it currently finds itself in an upfront investment phase.
Growth Strategy
Deepening penetration of the large-enterprise DX market through AI, cross-selling, and new customer acquisition, centered on establishing SmartDB® as the de facto standard
The PA option was released in Q1 of FY2026 (ending December 2026), beginning the provision of AI-driven operational efficiency features. The company is working to strengthen upselling to existing customers and raise ARPA, and ARPA rose quarter-on-quarter in Q1. Efforts to expand the customer base and promote utilization among existing customers are being pursued in parallel.
In Q1, new customer acquisition was limited, partly due to prioritizing support for existing customers, but the pipeline of prospective deals for the second quarter onward is building steadily. The company has stated its policy of expanding new customer acquisition through enhanced advertising and promotional activities as well as product feature enhancement.
The company aims to enhance the value it provides to customers by strengthening the integration between the internal portal construction tool "Insuite®" and SmartDB®, thereby promoting cross-selling. Sales activities are being conducted primarily targeting customers who place importance on management issues such as vision/purpose penetration, strengthening organizational engagement, and corporate culture transformation.
While the On-Premise Business is in a phase of structural decline due to cloud migration, the company is actively promoting migration proposals and working to generate migration deals. Cloud migration support and implementation support projects are underway within Professional Services, and revenue contribution is expected from the second quarter onward.
In Shopran®, a SaaS solution specialized for chain stores, the number of stores using the service has expanded due to progress in implementation projects at large-scale chains, with revenue turning to a recovery trend and average monthly usage fees also rising. MRR at the end of Q1 was ¥68,424 thousand (up ¥3,646 thousand year-on-year), with 167 contracted companies (up 4 companies year-on-year).
Last updated: July 17, 2026