ENVALITH
株式会社ジオコード logo

GEOCODE CO.,Ltd.

7357・Standard Market・Services

Official website
株式会社ジオコード logo
GEOCODE CO.,Ltd.7357

Business

GeoCode, Inc. is a company established in 2005 specializing in Web marketing. In its core "Web Marketing Business," the company offers an "organic marketing" service that delivers SEO measures, website production, and Web advertising in a single, integrated package to mid-sized and small-to-medium enterprises. Its second pillar, the "Cloud Sales Tech Business," provides the sales support tool "Next SFA" and the attendance and expense settlement tool "Next IC Card" in SaaS form at low cost, offering one-stop support ranging from customer acquisition to order receipt and operational efficiency improvement. The company's main bases are in Tokyo and Osaka, and it is listed on the Standard Market of the Tokyo Stock Exchange. Net sales (non-consolidated) for FY2025 (ending February 2025) were ¥1,582 million.

Business Model

In the Web Marketing Business, the company builds long-term relationships with clients by focusing on monthly recurring services such as SEO measures, Web advertising operation, and website maintenance. The Cloud Sales Tech Business accumulates stable recurring revenue through a SaaS monthly subscription model. By combining both businesses, the company provides consistent support ranging from clients' Web customer acquisition to sales management and operational efficiency improvement, while also aiming to raise revenue per client through cross-selling and up-selling.

Company Strengths

Certified as a "Premier Partner" under the Google Partners program for four consecutive years from 2022 to 2025, an award granted only to the top 3% of partners. In addition, the company was selected as a finalist in the Google Premier Partner Awards for five consecutive periods (2018, 2019, 2021, 2022, and 2023). It has also obtained certification under the LINE Yahoo and Microsoft advertising partner programs, demonstrating the high quality of its operational capabilities as recognized externally.

Since beginning SEO services in 2005, the company has progressively expanded its service offerings, adding website production (2006) and web advertising (2009). It has built a framework to provide integrated "organic marketing" combining SEO, production, and advertising as a single-vendor solution, allowing clients to receive proposals covering the entirety of web marketing from a single provider.

The Cloud Sales Tech Business was in an investment phase, posting a segment loss of ¥10 million (non-consolidated) in FY2025 (ending February 2025), but achieved a turnaround to profitability with a segment profit of ¥24 million in FY2026 (ending February 2026), its first year on a consolidated basis. Revenue also expanded to ¥1,630 million (consolidated) in the same period, indicating progress in monetizing the SaaS business.

ENVALITH's Perspective

In Q1 FY2027 (ending February 2027) — the first quarterly disclosure on a consolidated basis — the company recorded net sales of ¥662 million, operating profit of ¥63 million, ordinary profit of ¥81 million, and profit attributable to owners of parent of ¥20 million. Progress toward the full-year forecast (net sales of ¥2,870 million, operating profit of ¥242 million) stood at approximately 23% for net sales and approximately 26% for operating profit in Q1, which can be assessed as a generally solid start. However, since no comparative figures for the same quarter of the previous year exist, verification of the substantive growth rate will need to await disclosures from subsequent quarters.

Of the ¥48 million in quarterly net profit recorded in Q1 FY2027 (ending February 2027), ¥27 million was attributable to non-controlling interests and ¥21 million to owners of parent, indicating a significant outflow of profit to non-controlling shareholders. Non-controlling interests in consolidated subsidiaries (non-controlling interests of ¥167 million) account for approximately 13% of net assets, and the continued dilution of profit attributable to owners of parent is a structural issue that investors should keep in mind.

Cash and deposits, which stood at ¥1,055 million at the end of FY2026 (ended February 2026), decreased by ¥241 million to ¥814 million at the end of Q1 FY2027 (ending February 2027). This was mainly due to outflows such as tax payments (a ¥72 million decrease in accrued income taxes), repayment of short-term borrowings (a ¥70 million decrease), and shipment of shareholder benefits (an ¥18 million decrease), with long-term borrowings also declining by ¥54 million. While the company has set an ambitious full-year growth target of a 51.6% increase in net sales (to ¥2,870 million), accounts payable also increased (up ¥25 million) due to higher advertising procurement, making it necessary to continue monitoring working capital management and cash flow trends.

Growth Strategy

Aiming for 51.6% consolidated revenue growth through the dual pillars of AI advancement in Web Marketing and stabilizing SaaS profitability

In addition to conventional SEO and Web advertising, the company newly offers AI search environment support (AIO/LLMO) and AI technology-based Website Security Diagnosis Services, expanding its service domain. Through enhanced value proposition and differentiation, the company promotes deeper penetration among existing customers and acquisition of new customers.

The company continues to develop and offer new functions such as automatic project information updates using generative AI, strengthening product competitiveness. By thoroughly implementing onboarding and retention support (customer success), the company aims to curb churn and achieve stable, continued profitability in the SaaS business.

Centered on an internal specialist team, the company promotes efficiency and in-house development of business processes using AI technology, aiming to curb selling, general and administrative expenses and improve productivity. A reduction of ¥113 million in company-wide costs (adjustment amount) is key to improving operating profit.

Through sales activities leveraging the company's own Web Marketing expertise, the company continues to expand orders at both its Tokyo and Osaka offices. Toward achieving full-year net sales of ¥2,870 million, the company aims to expand its customer base in both the Web Marketing Business and the Cloud Sales Tech Business.

Last updated: July 17, 2026