SmartHR

Executive Summary

SmartHR is the top provider of internet-based human resources software in Japan. The company offers digital systems that automatically handle work tasks like payroll and labor management for more than 60,000 corporate clients. It began as a simple tool for paperwork but has grown into a full platform for managing people that is popular with large Japanese businesses. The business is in a strong financial position, reporting $150 million in yearly sales and $12 million in profit after all expenses. This mix of large size and actual profit is unusual for a private company that has not yet sold stock on the public market. Its competitive advantage is protected by the high percentage of customers who stay and pay more every year, along with exclusive data used for high-level employee tracking. Future growth will come from selling extra software parts for keeping talented staff to current users. Other risks include a loss of company spirit as they hire more people and shifts in local worker laws. Overall, the upcoming stock sale gives big investors a profitable way to enter the Japanese market for digital upgrades.