DreamArts Corporation
4811・Growth Market・Information & Communication
Professional Services
Spot-revenue segment responsible for implementation support and development of SaaS and on-premise products
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Revenue (Q1 cumulative, FY2026 (ending December 2026)) | ¥130,930 thousand | ¥188,264 thousand | ↓ |
| Segment Profit/Loss (Q1 cumulative, FY2026 (ending December 2026)) | △¥1,317 thousand (loss) | ¥53,006 thousand (profit) | ↓ |
| Revenue growth rate year-on-year | △30.5% | — | ↓ |
| Depreciation (Q1 cumulative, FY2026 (ending December 2026)) | ¥63,942 thousand | ¥45,104 thousand | ↑ |
Business Details
A segment that provides labor-intensive professional services accompanying various services under the Cloud Business and On-Premise Business. It offers SaaS onboarding and utilization consulting for SmartDB® and other SaaS products, DCR initial development and extension development, modification and additional development of plugin software for packaged licenses, and on-premise-to-SaaS migration support, all under contract-for-work or quasi-delegation agreements. Revenue is spot-type in nature, with demand expanding in tandem with growth of the Cloud Business.
Recent Overview
Revenue declined sharply due to a rebound from the concentration of large-scale projects in the prior-year period, temporarily pushing the segment into a loss
In the first quarter of FY2026 (ending December 2026), segment revenue was ¥130,930 thousand (down 30.5% year on year) and segment profit/loss was a loss of △¥1,317 thousand (versus segment profit of ¥53,006 thousand in the prior-year period), reflecting a rebound from the concentration of multiple large-scale projects in the prior-year period and the allocation of man-hours to unpaid proposal activities. Orders were centered on cloud migration support for on-premise customers, DCR functional extension development, and plugin software modification for existing customers, but this resulted in a temporary revenue decline and loss. From the second quarter onward, profit recovery is expected as large-scale projects are won and ongoing projects move into full swing. Regarding revenue recognition standards, the company previously applied the completion-of-inspection method only to some short-term projects, but from the first quarter of the current fiscal year has changed to applying the percentage-of-completion method to all projects (the impact is minor).
Key Products
Growth Drivers
- Profit recovery driven by orders for large-scale projects scheduled from the second quarter onward and the full-scale progression of ongoing projects
- Creation of projects through the promotion of cloud migration projects for on-premise customers (migration support and implementation support projects underway)
- Orders for DCR functional extension development and plugin software modification projects for existing customers
- Increased demand for implementation support and consulting driven by growing DX promotion needs among large enterprises
- Expansion of onboarding demand accompanying an increase in the number of companies newly adopting SmartDB®
Risks
- As a spot-revenue-type business, revenue is affected by the trends in new Cloud Business implementations and migration projects
- As project-based revenue, quarter-to-quarter revenue fluctuations tend to occur depending on order timing and completion timing of projects, and the rebound from the concentration of large-scale projects in the prior-year period became apparent
- As a labor-intensive business model, securing and training personnel amid worsening IT talent shortages is a challenge
- Risk that man-hours devoted to unpaid proposal activities temporarily pressure revenue
- May be a factor in the decline of the recurring revenue ratio, requiring balance management in coordination with Cloud Business growth
Last updated: March 27, 2026