BeeX Inc. Q4 FY2026 earnings call

Company Overview & Core Strengths

• BeeX is a cloud-native systems integration firm founded in 2016, with 256 consolidated employees, holding partnerships with all three major cloud platforms (AWS, Microsoft Azure, Google Cloud), and is an AWS Premier Tier Service Partner and SAP Gold Partner.
• The company combines flow-type (project-based) and stock-type (recurring revenue) business models, with stock-type business serving as the stable core of revenue and profit.

Key Strategic Acquisitions & Operational Milestones

• Acquired MSP-specialized firm Sky 365 to expand MSP business; opened a new overseas MSP hub in Nha Trang, Vietnam to access new IT talent and strengthen global support capabilities, operating from a secure, military-civilian joint software park.
• Promoted to SAP Gold Partner via SAP's PartnerEdge program, recognized for the company's work in new service areas including SAP S/4HANA Cloud Public Edition and SAP BTP.
• Launched full market entry into SAP S/4HANA Cloud Public Edition, developed packaged Side-by-Side extension solutions for Japanese customers (first release: accounting journal entry/approval solution) to maintain SAP's clean core architecture while meeting custom business needs.
• Launched a new weekend migration service for legacy SAP systems to S/4HANA, partnering with German vendor SNP to complete large-scale migrations within a 2-day weekend window, solving the long-standing problem of extended system downtime that slowed customer migration.
• Won the CHECK POINT Japan Harmony SASE Partner Award 2025 for zero-trust network adoption, and completed a major Okta identity management implementation covering over 2,800 devices.
• Updated dividend policy, revised full-year dividend from 0 yen to 25 yen per share.

Three Core Growth Strategies

1. Core system cloud modernization and S/4HANA migration support: Leverages existing brownfield migration experience and the new weekend migration offering to accelerate migration of legacy SAP ERP 6.0 (support ends 2027/2030) to S/4HANA, and expands greenfield Fit-to-Standard SaaS S/4HANA projects. Supports ongoing Side-by-side DX extensions on SAP BTP and SAP surround data analytics solutions for customers post-migration.
2. AI and Digital Transformation: The company has applied AI internally to improve operations (internal RAG chatbot, AI-driven development, AI-powered operations at Sky 365), and now commercializes this expertise via its "AI Ready Modernization" service line covering four focus areas: infrastructure modernization, application modernization, data platform modernization (including data governance), and SAP modernization, to prepare customer IT environments for AI adoption. The company also offers full AI transformation support including AI agent infrastructure development, SAP data integration with generative AI, and end-to-end AI-driven development lifecycle transformation.
3. Multi-cloud resale and MSP expansion: Expands cloud license resale beyond SAP migration-related projects into new verticals including the public sector and SMB segment, supported by increased marketing and inside sales investments. Expands MSP offerings beyond basic monitoring into security services and BPO, leverages the Vietnam hub for customer operations, enhances AI-powered AIOps and observability capabilities, and plans to announce new sales channel expansion shortly.

For the 2026 February full year, total company revenue hit 10.626 billion yen, a 14.8% increase year-over-year, marking a new all-time high revenue. 1. Cloud Integration (flow-type business): This is a project-based business covering cloud consulting, system build, migration, and application development. Revenue saw a year-over-year decline due to the absence of large public sector and SAP projects that occurred in the prior year, but recovered in Q4 driven by small-to-medium and AI/data analytics projects, with 15.9% revenue growth projected for 2027 February fiscal year. 2. Cloud License Resale (stock-type business): This is the largest segment, contributing 64.1% of total revenue, with continuous strong growth. Business accounts grew from 700 to 892 year-over-year, with 20.7% revenue growth projected for 2027 February fiscal year. 3. Managed Service Provider (MSP, stock-type business): This segment contributes 12.9% of total revenue. Customer count and revenue grew strongly due to the acquisition of Sky 365, but saw a slight Q4 decline from some customers shifting to in-house operations. 6.5% revenue growth is projected for 2027 February fiscal year. Overall, stock-type business (License Resale + MSP) accounted for 77% of total revenue, up from prior periods, strengthening stable revenue base.

• For the 2027 February fiscal year, management projects total revenue of 12.516 billion yen, representing 17.8% year-over-year revenue growth.
• By segment, projected growth is 15.9% for Cloud Integration, 6.5% for MSP, and 20.7% for Cloud License Resale.
• Management set a new medium-term 2030 revenue target of 20 billion to 22 billion yen, to be achieved through growth in SAP, AI, and license resale, plus planned M&A investment.
• 2027 February fiscal year planned investment focuses on three areas: continued new service development (AIOps, SAP solutions, AI services), increased marketing investment (digital ads, events, customer engagement) to build brand awareness, and human capital investment (engineer/sales hiring, continued new graduate recruiting, AI-focused skills training).

• The IT industry faces a persistent talent shortage, which creates hiring challenges that could limit growth if sufficient skilled personnel cannot be acquired.
• Cloud Integration operating profit declined year-over-year in the 2026 February fiscal year due to lower volume of high-margin large projects and increased growth investment, representing near-term pressure on profitability.
• MSP business saw a slight Q4 revenue and customer decline from customer shifts to in-house operations, creating near-term uncertainty for segment growth.
• S/4HANA migration demand has been slower than expected historically due to downtime concerns, though management believes the new weekend migration offering will mitigate this risk.

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