BTM, Inc.
5247・Growth Market・Information & Communication
Business
BTM Inc. operates its DX Promotion Business under the mission of "revitalizing all generations in Japan," pursuing two core pillars: IT Engineering Service and DX Solution Service. In its core IT Engineering Service (approximately 80% of sales), the company leverages its in-house engineers along with a network of external partner companies and freelancers (approximately 11,200 accounts, with a track record of transactions with over 2,500 companies) to meet diverse client needs. In the DX Solution Service, the company recruits and trains regional engineers through its eight lab locations nationwide, providing seamless development support from upstream to downstream processes. Clients span a wide range of industries and sizes, with no dependence on any single customer for more than 10% of sales.
Business Model
In IT Engineering Service, the company matches the large volume of engineer information and project information gathered daily through mass distribution to external partner companies, earning revenue through quasi-delegation and dispatch contracts. In DX Solution Service, teams are formed primarily of the company's own engineers, providing deliverables in a form close to contracted development. Because the ratio of external partner companies is high, the structure allows scale expansion while keeping fixed costs down, and the company aims to reduce cost ratios and improve profit margins by strengthening its in-house engineer base.
Company Strengths
Through continuous business development since the company's founding, the company had built a track record of transactions with approximately 11,200 accounts (external partner companies and freelancers) and over 2,500 companies as of the end of March 2026. It has formed a virtuous cycle in which both engineer information and project information accumulate in large volumes, with the average continuing transaction period with client companies reaching 17.2 months.
Since 2019, the company has sequentially opened lab locations across the country, currently operating 8 locations. Through its proprietary training program, it rapidly develops inexperienced or minimally experienced personnel with strong local ties into productive workforce, expanding its in-house engineer headcount by 45.7% year on year to 188. This achieves both cost advantages from regional hiring and project quality through remote participation in Tokyo-based projects.
In the DX Solution Service, the company is able to provide both web application development and IT infrastructure (AWS and Azure) services under a single company. It established a dedicated infrastructure department in 2016 and has built up a track record since then, giving it a system capable of handling projects on a consistent basis from upstream to downstream processes. This represents a significant cost and efficiency benefit for clients.
ENVALITH's Perspective
Performance Trend
Revenue rose for four consecutive fiscal years, from ¥3,549 million in FY2023 to ¥4,155 million in FY2024, ¥5,100 million in FY2025, and ¥6,035 million in FY2026. Operating profit, however, fell sharply from ¥131 million in FY2023 and ¥153 million in FY2024 to ¥92 million in FY2025, before recovering modestly to ¥108 million in FY2026, still below the FY2024 level. A structural pattern has taken hold in which increased human capital investment (stronger engineer hiring and pay raises) and rising M&A-related expenses weigh on profits. In terms of the external environment, growing demand for DX and AI investment is supporting revenue expansion, while a weaker yen, inflation, and rising interest rates are pushing up personnel and procurement costs. The gross profit margin for FY2026 showed only a slight improvement to 15.4% (from 15.1% in the previous period).
Growth Strategy
Aiming to become a nationwide DX promotion company through a three-pronged approach of human capital investment, AI technology strengthening, and M&A
In addition to strengthening engineer recruitment, the Company continues to prevent turnover through salary increases and to add executive personnel, sales staff, and engineers. It aims to reduce cost ratio and improve profit margin by raising the proportion of in-house engineers. Continued investment is underway in FY2026 (ending March 2026) as well.
The Company is strengthening its AI technological capabilities on multiple fronts, including expanding the business of subsidiary BTMAIZ, advancing PMI for Laniakea's AI-related business, collaborating with Headwaters on AI agent services, and launching "Tracis," a SaaS for automating system failure investigation using generative AI.
The Company carried out the acquisition of Laniakea's SES business (acquisition cost of ¥50 million, goodwill of ¥34 million amortized over 12 years) and made QSD a wholly owned subsidiary (acquisition cost of ¥106 million, goodwill of ¥84 million amortized over 9 years). These transactions simultaneously achieved expansion into the Tohoku region and the incorporation of AI technology. The Company has set a policy of pursuing additional M&A from FY2027 (ending March 2027) onward.
The Company plans to further expand its network of approximately 9,200 accounts, strengthening the foundation for a flexible development structure. This network is utilized both to maintain continuity of business with existing clients and to acquire new clients, supporting expansion in revenue scale.
Last updated: July 19, 2026