Caster Co. Ltd. (9331) Stock Price

Caster Inc. operates a core BPaaS (Business Process as a Service) business that leverages remote workers to handle and support back-office operations for companies. The company also offers staffing and recruitment services, develops tools for e-commerce, and develops products utilizing generative AI. Caster combines its proprietary business tools with AI to provide end-to-end support services covering process design, execution, and continuous improvement.

The company's primary customers are small to medium-sized enterprises, sole proprietors, and e-commerce businesses seeking to reduce human resource demands and operational burden. Many customers prefer low-cost entry options. Revenue is primarily generated through recurring subscription models based on hourly rates or monthly contracts, supplemented by commission-based income from staffing, consulting services, and tool sales.

The business is divided into two segments: BPaaS and other operations. The BPaaS segment includes the CASTER BIZ series (back-office services for secretarial, accounting, and HR functions), My Assistant (micro-lot plans offering short-term, low-cost services), and NEO assistant (hybrid support combining human workers and AI). Other operations include remote staffing services, the job portal "Reworker," e-commerce management services, business efficiency tools, remote talent training programs, and product development using generative AI.

The company has announced a medium-term management plan covering the fiscal years ending August 2026 through August 2028. It aims to strengthen its business foundation while improving profitability, targeting net income attributable to parent company shareholders of 200 million yen by the fiscal year ending August 2028. On an actual basis, revenue has expanded from approximately 2.2 billion yen in 2021 to approximately 4.59 billion yen in 2025 (consolidated), with the core BPaaS business accounting for approximately 3.57 billion yen in 2025. Based on these figures, the company plans to simultaneously expand stable recurring revenue and improve profit margins.

The company is prioritizing investment in its BPaaS business and "AI Tech business," which centers on artificial intelligence. In BPaaS, it will invest capital in standardizing back-office outsourcing services and improving operational efficiency, targeting small and medium-sized enterprises and sole proprietors by addressing micro-lot needs (short-duration, low-cost projects). AI technology directly drives business automation and value enhancement, so the company will concentrate investment on automating internal task matching and direction, and developing AI-integrated products. As competitive advantages, it emphasizes its ability to handle small-scale projects at low cost through full-remote operations (98.5% of employees work remotely) and its proprietary talent management and operational foundation.

For new market development and business expansion, the company will reorganize its reporting segments from 2026 into three pillars: "BPaaS," "HR," and "AI Tech." The strategy is to secure stable profits through BPaaS while creating new markets through AI Tech. Specific measures include expanding the number of service-adopting companies (1,316 active companies as of August 2025; approximately 5,800 cumulative adopting companies) as a foundation, and improving customer acquisition cost (approximately 390,000 yen in 2025) and payback period (approximately 3.9 months) through advertising allocation review and marketing efficiency improvements. The company will also pursue complementarity across segments through M&A and new service launches as needed, while focusing the HR business on profit securing and considering restructuring.

For technological innovation, the company has adopted an "AI FIRST" approach, aiming to raise productivity by integrating generative AI and other technologies from business design through execution and improvement. Operationally, it will advance automation of casting operations and AI integration in communication and direction areas, maintaining monthly recurring revenue (MRR) at approximately 330 million yen while improving gross margins. Additionally, the company plans to strengthen information management through appointing a data protection officer, obtaining ISMS certification and privacy marks, and implementing business structure reforms through AI products while safely handling customer data.