Globee Inc.

Business Details

Under the corporate philosophy of "maximizing individual potential," the company plans, develops, and operates "abceed," an AI-powered English learning material for smartphones and the web. It has built a platform that digitally integrates the four major fields of education (learning tools, materials, tests, and schools), supporting 1,426 titles. The subscription service "abceed (Pro Plan)" for general users is the core of revenue (approximately 90% of net sales), and the company also provides a management dashboard and coaching services for corporate clients (companies, universities, and schools). AI recommendation and real-time score prediction are the core of its competitive advantage.

Recent Overview

Paid membership surged to 150,000, and net sales grew 24.9% year on year to ¥2,045 million

In FY2026 (ending May 2026), the implementation of half-price campaigns for the Pro Plan (in Q2, Q3, and Q4) and successful acquisition of new-academic-year members among schools drove a substantial increase in paid membership, from 117,000 at the end of the prior period to 150,000. The company achieved net sales of ¥2,045 million (up 24.9% year on year) and operating profit of ¥442 million (up 7.5%). On the other hand, selling, general and administrative expenses surged to ¥552 million (from ¥369 million in the prior period), causing the operating margin to decline to 21.6% (from 25.1% in the prior period). On the content side, expansion continued with the start of free TED Talks distribution and the release of English-dubbed versions of Dandadan and Chibi Maruko-chan. For FY2027 (ending May 2027), the company forecasts net sales of ¥2,450 million (up 19.8%) and operating profit of ¥620 million (up 40.2%).

Key Products

Growth Drivers

• Continued net increase in paid membership (from 117,000 at the end of the prior period to 150,000 at the end of the current period) driven by Pro Plan half-price campaigns (conducted in Q2, Q3, and Q4)
• Expansion of the user base through the acquisition of new content licenses, including movies, dramas, and anime (Dandadan, Chibi Maruko-chan, etc.) and TED Talks
• Improved usability through enhanced AI-driven learning support features, such as AI glossary/explanation/question functions and streak-freeze functions
• Development of corporate customers (cumulative 690 clients) through the introduction of new feature plans for schools, including AI English essay correction, read-aloud scoring, speaking correction, and AI English conversation
• Acquisition of new user segments and growth in the paid membership growth rate through lower-priced "Movie Plan" and "English Conversation Plan" offerings
• Favorable market tailwinds driven by the ongoing digitalization of education

Risks

• Risk of declining operating margin (21.6% in the current period versus 25.1% in the prior period) due to a sharp increase in selling, general and administrative expenses (from ¥369 million in the prior period to ¥552 million in the current period, up 49.4%)
• Risk of rising paid member acquisition costs due to dependence on Pro Plan half-price campaigns, and risk of increased cancellations after campaigns end
• Risk of revenue concentration in Apple Inc., SB Payment Service, and Google LLC (the top three account for approximately 100% of net sales)
• Risk of intensifying competition in the English learning app market (increasing entry of AI-powered services)
• Risk of rising cost of sales ratio due to increases in variable costs such as content licensing fees and platform payment processing fees (cost of sales ratio: 52.3% in the prior period versus 51.4% in the current period)
• Risk of increased cash outflow from financing activities due to share buybacks (¥137 million)