BeeX Inc. Q2 FY2026 earnings call

• Company Overview & Core Strengths

  • Founded in 2016, BeeX is a specialized cloud systems integration firm that supports all three major global cloud platforms: AWS, Azure, and Google Cloud. It is one of only 15 Premier Tier Service Partners for AWS in Japan, and is also an authorized SAP service partner.
  • The firm's core strengths are a large enterprise-focused customer base, and expertise managing mission-critical core enterprise systems (especially SAP ERP). Its business model combines one-time flow project business with recurring stock business, which creates stable revenue and profit.

• Operational Milestones & Updates

  • Completed the acquisition of MSP specialized company Sky 365 to accelerate expansion of its stock-type managed services business, which is critical for building long-term customer relationships.
  • Launched a new weekend migration service for SAP S/4HANA that completes full migration in 2 days (over a weekend), down from 4-7 days previously, eliminating extended business downtime for customers and unlocking demand from hesitant clients. The service already has a completed large-scale migration delivery.
  • Launched new SAP data analytics solutions that combine structured data extraction/visualization with generative AI, allowing customers to get business insights from SAP data via natural language queries to advance SAP data and AI utilization.
  • Participated as a platinum sponsor in AWS Summit (AWS's largest annual event) and exhibited at SAP's largest annual Japan event SAP NOW AI Tour Tokyo, generating strong customer leads and inquiries for new services.
  • Maintained a healthy balance sheet with a solid financial foundation.
  • Initiated the firm's first ever dividend since listing, revising the prior zero dividend forecast to 25 yen per share, balancing continued growth investment with shareholder returns.

• Three-Pillar Growth Strategy

  1. Core system cloud migration and modernization: Addresses the mandatory industry-wide shift from legacy SAP ECC 6.0 (support ending 2027, extended support ending 2030) to S/4HANA, including post-migration DX expansion, data/AI utilization, and minor version upgrades. BeeX is expanding service offerings aligned with SAP's new clean core / Side-by-Side expansion strategy on the SAP BTP platform, with a focus on aggregated multi-source data analysis and AI-enabled insights for data-driven management.
  2. Companion-style DX support: Supports customers to build in-house DX capabilities, with a dual focus on generative AI and predictive AI. For customers, BeeX provides pre-built generative AI templates for common use cases (including RAG chat for internal enterprise data, meeting minute summarization) to help customers quickly test and adopt AI, along with end-to-end support for data/AI infrastructure and AI-powered business process automation. Internally, BeeX uses AI to accelerate application development productivity and automate operational work to improve quality and scale without proportional staff increases.
  3. Expansion of multi-cloud managed services: Continues to grow its stable, high-margin stock business, expanding beyond basic monitoring and incident response to add new offerings including security services (addressing human-error related security risks, zero-trust network support), observability monitoring, AI-powered operations, and end-to-end business process outsourcing.

1. Cloud Integration (flow business): Revenue declined year-over-year, due to the lack of new large-scale projects in the quarter following large government and SAP projects in the prior year period. Order intake remains on track. 2. Cloud License Resale (stock business): Total revenue resumed growth in Q2 after flat growth in Q1 driven by yen appreciation impacts. Business accounts grew sharply from 540 in the prior period to 815, creating a solid base for future recurring revenue growth. 3. Managed Service Provider (MSP, stock business): Revenue and customer count grew sharply following the acquisition of MSP specialized firm Sky 365. This segment is a key driver of recurring, stable revenue growth for BeeX. Overall group total revenue for the quarter is 5.123 billion yen, up 14.4% year-over-year, with stock businesses leading overall growth. Operating profit is 340 million yen, down 12.3% year-over-year.

• Management maintained the original full-year 2026 February fiscal year consolidated earnings guidance, with Q2 results progressing broadly in line with original plans. The 12.3% year-over-year drop in operating profit was fully expected due to increased SG&A from the Sky 365 acquisition.
• For the second half of the fiscal year, management outlined key priorities:
  • Revenue: Target securing large SAP, cloud migration, and modernization projects in cloud integration to offset the lack of large projects in the first half; accelerate new customer acquisition, existing account expansion, and new service development for MSP via strengthened collaboration with Sky 365.
  • Expenditures: Continue MSP service development with Sky 365; strengthen online and web marketing alongside continued participation in IT industry events; target a net increase of 25+ full-time employees on a consolidated basis, with continued investment in recruitment, new hire training, and on-going new graduate hiring for future growth.

No explicit material operational risks or failures were discussed in the provided earnings call transcript.

No question and answer section was included in the provided earnings call transcript.