Insources <6200> offers educational services for working adults, such as corporate training and open courses. The content is designed to be "applicable from the next day" for both face-to-face and online training, focusing on workshops and exercises. By digitizing the entire process of training operation, it enables high-quality and frequent sessions, resulting in a participant satisfaction rate of 96.1% for content evaluation and 93.8% for instructor evaluation as of September 2024. The segments include a custom training service that dispatches instructors to organizations, which accounted for 47.2% of revenue in the September 2024 period; an open seminar training service allowing participation from one person, which constituted 24.5%; an IT service business offering the HR support system "Leaf" series and stress check support services, accounting for 14.6%; and various services such as video and e-learning sales and consulting and assessment services categorized as other businesses, contributing 13.7%.

The company's strengths lie in three areas: "content development ability," "sales ability," and "IT ability." By utilizing IT, roles such as content development creators, instructors, and sales staff share responsibilities, leading to cost reduction and enhanced quality of training. Owning the content IP (intellectual property) allows for rapid development of diverse content and web services, resulting in a competitive advantage in content development with 4,522 types of instructor dispatch training, 4,401 types of open seminar training, and 1,011 types of video and e-learning compared to competitors. Moreover, since its establishment, the company has been promoting sales DX by accumulating data generated in the sales process and utilizing it through IT, with over 25,000 interconnected web pages facilitating efficient sales activities. When inquiries come from the web, sales representatives quickly visit nationwide to acquire WEBinsource members. Subsequently, sales representatives listen to customer management issues and propose appropriate solutions by combining the company's vast content, leading customers to receive training and consulting services.

For the September 2024 period, revenue reached 12,474 million yen, up 15.7% year-on-year, with operating profit landing at 4,937 million yen, an increase of 25.3%. In the instructor dispatch training business, the number of sessions has increased significantly, especially around DX-related training, and the open seminar business has performed well as the number of courses expanded, resulting in a 14.3% increase in participants. Additionally, the IT service business has seen substantial revenue growth as new projects were received from central government agencies like the Ministry of Education and the Ministry of Health, resulting in active user numbers exceeding 4.07 million, with Leaf recurring revenue increasing by 39.6%. It appears that customized revenue has also increased due to receiving major projects from central government agencies and related organizations. For the September 2025 period, revenue is projected to reach 14,500 million yen, a 16.2% increase year-on-year, and operating profit is expected to grow by 11.8% to 5,520 million yen.

In the future, the company seems set to provide strong and tailored solutions tailored to customer segments through five profit centers. Specific product development and promotional activities will be conducted to address the challenges of each customer segment. The DX-related service lineup will be established as the most important area across all segments, with a focus on enhancing administrative services in digital skills, policy formulation, and business improvement. It would be worth noting whether new services will emerge from other services, forming a new core.

The company estimates that the scale of the adult education market will reach 350 billion yen by 2025 and exceed 425 billion yen by 2030 (with the DX market expected to be 38 billion yen in 2025 and 78 billion yen in 2030). Currently, the market share in the adult education market is 3.4%, and the company aims to expand its market share further, driven by the labor shortage and government-backed reskilling efforts.

The medium-term management plan sets a revenue target of 20,000 million yen and an operating profit of 7,800 million yen for the September 2027 period, with an ambitious goal of a 17% CAGR (compound annual growth rate) to actively invest in growth. The company also plans to be proactive in shareholder returns, targeting a dividend payout ratio of 50% and a shareholder equity dividend rate (DOE) of 18%. Overall, it is important to pay attention to future trends as solid performance continues.