Prodelight Co.,Ltd.

Business Details

Provides corporate and municipal clients with a "one-stop solution" combining the cloud PBX "INNOVERA," the cloud direct-connect IP telephone line "IP-Line," and Yealink-brand SIP terminals. Captures demand for migration from on-premises PBX to the cloud as well as demand for telework and BCP (business continuity planning) measures, aiming for stable revenue expansion through a recurring-revenue business model. In the nine months ended Q3 FY2026 (ending March 2026)... wait, ending August 2026, this segment accounted for ¥2,015 million (approximately 85%) of consolidated net sales of ¥2,364 million, making it the group's core business.

Recent Overview

Net sales rose 16.0% year on year, but segment profit fell 6.3% due in part to the impact of the BizTAP business

Segment net sales for the nine months ended Q3 FY2026 (ending August 2026) expanded solidly to ¥2,015 million (up 16.0% year on year). Thanks to the success of the "Partner Program," the INNOVERA account count grew steadily to 55,456 (from 49,536 at the end of the prior fiscal year), and the IP-Line total channel count rose to 80,949 (from 76,228 at the end of the prior fiscal year). On the other hand, the BizTAP IVR/BizTAP business, whose operations were acquired by a consolidated subsidiary in July 2025, weighed on segment profit, which came to only ¥449 million (down 6.3% year on year). In addition, the average monthly churn rate (accounts) rose slightly to 0.65% from 0.60% in the first half. In terms of functionality, multilingual support (10 languages) was added to the Autocall feature, along with automated Call to Text functionality. Expansion of sales under Otsuka Corporation's "Tayoreru" brand also continues to be promoted.

Key Products

Growth Drivers

• Expansion of the cloud PBX market and acceleration of migration away from on-premises PBX (continued demand for BCP measures and telework)
• Expansion of the sales agency network through the "Partner Program" (including provision under Otsuka Corporation's "Tayoreru" brand)
• Continued growth in "INNOVERA" total account count (from 33,761 in FY2023, ending August 2023, to 55,456 at the end of Q3 FY2026, ending August 2026) and maintenance of a low churn rate
• Enhanced added value and improved customer satisfaction through functional expansion such as Autocall multilingual support and automated Call to Text
• Upsell of IP-Line channel count driven by existing customers' business expansion and addition of new locations
• Differentiation through strengthened external service API integration with Salesforce, Sansan, HENNGE One, and others

Risks

• Integration costs for the BizTAP IVR/BizTAP business are weighing on segment profit: segment profit for the nine months ended Q3 FY2026 (ending August 2026) fell 6.3% year on year
• The average monthly churn rate (accounts) rose from 0.60% in the first half to 0.65% in the nine months ended Q3, making churn rate management an ongoing priority
• Profit margin pressure from increased selling, general and administrative expenses (personnel costs, etc.): company-wide expense adjustments expanded from ¥364 million in the prior-year period to ¥390 million
• Risk of rising account acquisition costs and higher churn rates amid intensifying competition in the cloud PBX market
• Hardware sales, such as Yealink-brand terminals, are susceptible to market conditions and exchange rate fluctuations
• Risk of reduced bargaining power due to increasing dependence on major partners (changes in the relationship with Otsuka Corporation and others)