(145A) Stock Price

L is B provides DX solutions in SaaS format to companies with on-site operations in construction, distribution, and infrastructure sectors, helping them solve business challenges through digital transformation. The company's flagship product is "direct," a business chat application for field workers designed with intuitive smartphone usability as a priority.

The company primarily serves construction, distribution and retail, and transportation and infrastructure businesses—sectors with large workforces where on-site operations are critical. It targets solving challenges such as labor shortages and long working hours. The company generates recurring revenue from monthly subscription fees, while deriving additional business income from initial setup, custom development, and DX consulting services.

Built around its chat platform, the company offers a suite of field-focused applications including task management, scheduling, photo management, FAQs, and chatbots that integrate within the chat interface to streamline operations. The company also provides system design and development tailored to individual customer needs, as well as OEM solutions for municipalities and financial institutions, offering end-to-end support from implementation through ongoing operations.

The company's core growth objective is to expand ARR (Annual Recurring Revenue) over the medium to long term. Specifically, it prioritizes accumulating recurring revenue from monthly subscription fees and uses recurring revenue, recurring revenue ratio, and number of contracted companies as key performance indicators. For the upcoming fiscal year, the company plans to increase revenue from 1,594 million yen to 2,080 million yen (approximately 30.5% growth) and improve operating profit from 47 million yen to 154 million yen (approximately 227.7% growth). The strategy aims to monetize upfront investments and maximize long-term profitability and cash flow.

The company focuses investment on "field-based industries" such as construction, distribution and retail, infrastructure, and transportation, creating differentiation through specialized solutions for these sectors. Its flagship field-oriented business chat tool "direct" continuously adds features needed on-site—including task management, photo management, and FAQ/chatbot functionality—and expands adoption through OEM partnerships. Additionally, the company provides custom development and digital transformation support at implementation, delivering operations-focused value that differs from generic chat tools offered by competitors.

To expand the customer base and business scope, the company pursues cross-selling to existing customers alongside new customer acquisition. Specific initiatives include targeted advertising in field-based industries, strengthened sales and customer success teams, expanded sales channels through OEM partnerships, and increased adoption of linked services such as "direct Apps," "Tag Shot/Tag Album," and "direct Smart Working Solution." Market conditions are favorable, with domestic IT investment projected at approximately 23.51 trillion yen by fiscal 2026, the construction digital solutions market at approximately 570.6 billion yen, and the business chat market at approximately 63 billion yen by fiscal 2027—all targeted by this growth strategy.

Regarding technological innovation, the company advances solutions leveraging cutting-edge technologies such as generative AI. Specific applications include automated analysis and documentation of field data and automation of work support initiated through chat. Beyond regular feature updates, the company strengthens stable operations through server expansion, enhanced monitoring systems, and reinforced security measures. The company also pursues competitive advantage on both technological and organizational fronts through recruitment and development of talented engineers and sales personnel, establishment of internal management systems, and consideration of M&A when necessary.