(277A) Stock Price

Globing Inc. operates two main business divisions: consulting services based on quasi-mandate contracts and cloud products centered on various SaaS offerings. The company positions itself as an "outside insider with external perspective" embedded within client organizations, providing C-suite level support and delivering one-stop transformation services that integrate strategy and digital initiatives, as well as Joint Initiative-type business co-creation.

The company's primary customers are major enterprises in automotive, energy, and other sectors, as well as companies pursuing growth and restructuring. Revenue is generated primarily through consulting contract fees and cloud product usage fees. Approximately 43% of consulting revenue comes from Joint Initiative-type engagements. The company aims to transition away from labor-dependent models through AI and product utilization, building a scalable revenue structure.

The business is divided into two segments: consulting services and cloud products. The consulting division offers both JI-type services (hands-on engagement through secondment or joint business responsibility) and traditional services (strategy, DX, and AI planning and execution support). The cloud products division focuses on developing a Sales Suite (improving sales productivity through revenue data visualization) and a Spend Intelligence Suite (expense visibility and optimization, AI-powered fraud detection, and automated ordering for efficiency). The company strengthens industrial implementation through collaboration with its internal AI team and group companies.

The company aims for sustained growth in corporate value while positioning consulting as its core business over the medium to long term. Key performance indicators include increasing consultant headcount, raising average consultant compensation, expanding the ratio of Joint Initiative (collaborative project) revenue, and growing AI-related sales. Recently, consultant headcount increased from 119 to 178 employees, while average compensation rose from approximately ¥19.745 million to ¥20.12 million. On the revenue side, Joint Initiative sales ratio grew from 29.9% to 43.6%, and AI-related sales ratio expanded from 11.3% to 30.0%, driving overall revenue and operating profit growth.

Priority investment areas are consultant recruitment and development, along with cloud product development. The company differentiates itself through hands-on service delivery, positioning consultants as "insiders with external perspectives" who work alongside client executives. It is expanding Joint Initiative engagements at the C-suite level by strengthening mid-career hiring, promoting referral recruitment, and improving training and compensation to attract talent from leading strategy firms and raise average consultant salaries.

For new market development and business expansion, productizing consulting outcomes and scaling through external sales are key pillars. Joint Initiative revenue grew from ¥1.248 billion to ¥3.600 billion, while AI-related revenue increased from ¥470 million to ¥2.477 billion. The company is building a portfolio of cloud products—including sales visibility tools and spend optimization tools—and accelerating external sales through collaborative development with clients, aiming to establish a revenue model less dependent on headcount growth.

As part of its technology innovation strategy, the company has positioned AI-driven operational efficiency and product development at the core of its strategy. In May 2024, it established X-AI.Labo Inc. through a joint venture with an AI-advanced company to advance AI implementation and co-creation with customers. Looking ahead, the company aims for non-linear growth through a model that "supports consultant expertise with AI," leveraging proprietary AI products informed by consulting knowledge. It is making focused investments in development speed, product usability, and information security.