BeeX Inc. Q1 FY2026 earnings call

Company Overview:

• BeeX is a multi-cloud system integration firm founded in 2016, with 246 consolidated employees as of 1Q. It works with three major cloud platforms (AWS, Microsoft Azure, Google Cloud) and holds the top-tier AWS Premier Tier Service Partner designation, one of only 15 firms in Japan with this status. It is also an SAP certified partner serving large enterprise core system needs.

Operational Highlights:

• Completed acquisition of Hokkaido-based MSP-specialized company Sky 365 on April 1, 2025, to expand MSP service capacity, improve service quality, and grow sales channels.
• Earned new SAP "Analytics & Planning" certification, recognizing its expertise in SAP data analysis and utilization.
• Completed a large-scale Okta identity and access management implementation for 2,800 devices, as part of the firm's push to expand security solution offerings.
• Grew consolidated headcount by a net 62 employees year-over-year, as part of ongoing strategic investment in human capital.

Key Strategic Priorities:

• Core SAP business: Capitalize on the upcoming end of support for SAP ERP 6.0 (standard support ends 2027, extended support ends 2030) to drive growth in S/4HANA migration, cloud migration, and ongoing version upgrade and DX expansion services. Focus on SAP Business Technology Platform (BTP)-powered Side-by-Side extension and SAP Surround Solutions for data integration and analytics.
• End-to-end DX support: Prioritize client-led DX initiatives, providing companion support for independent client operation, including both predictive and generative AI enablement, in-house application development support, and CCoE (Cloud Center of Excellence) establishment. Also invest in internal AI adoption to improve operational productivity and margins.
• Stock-type business expansion: Expand license resale beyond core enterprise migration projects into new segments including SMBs and the public sector, building a new business cycle where license resale leads to integration and MSP service adoption. Expand security solutions including zero-trust network products (Okta, SASE) and AI-powered automated vulnerability detection to drive additional recurring revenue.

For the 1Q 2026 February fiscal year, total company revenue was 2.538 billion yen, a 12.7% increase year-over-year. 74.5% of total revenue came from stock-type businesses, an increase from prior periods that improved earnings stability. 1. Cloud Integration (flow-type business): This segment provides consulting, cloud migration, and application development services for cloud adoption. Orders and quarterly revenue grew steadily year-over-year, but operating profit declined in the quarter due to the absence of a high-margin large public sector contract that contributed to year-ago results. 2. Cloud License Resale (stock-type business): Revenue grew strongly year-over-year, and was flat quarter-over-quarter primarily due to yen appreciation impacts. Over 60 new business accounts (cloud contracts) were added in the quarter, showing steady new customer acquisition, with expected revenue growth in future quarters. 3. Managed Service Provider (MSP/Operations Maintenance, stock-type business): Revenue and user counts grew sharply year-over-year, driven by the addition of revenue from the newly acquired MSP-specialized firm Sky 365. Stock-type business (combining Cloud License Resale and MSP) now accounts for 74.5% of total revenue, up from prior periods. Overall operating profit for the quarter was 0.15 billion yen, a 27.9% decrease year-over-year, which management stated was in line with plan.

• Full-year 2026 February fiscal year consolidated guidance remains unchanged from prior announcements; 1Q results are progressing broadly in line with initial management forecasts, even after accounting for yen appreciation impacts on cloud license resale revenue.
• The primary planned investment for the full year is human capital: management targets a net increase of over 25 consolidated employees, alongside planned new graduate hiring for the next two fiscal years, with budget allocated for hiring and training costs.
• Mid-term revenue target for the 2028 February fiscal year is set at 16 billion to 17 billion yen.

Yen appreciation creates near-term headwinds for cloud license resale revenue, as contracts are denominated in foreign currency that translates to lower yen-denominated revenue when the yen strengthens. No other material operational risks or failures were discussed in the transcript.

No formal question and answer section is included in the provided transcript.