CommSeed Corporation (3739) Stock Price

Comseed is a company that operates primarily in mobile content distribution and software development using blockchain technology. The company plans, develops, and operates social games and paid applications for smartphones, while also developing and providing systems and services utilizing blockchain.

The company serves two main customer bases: individual users and enterprises. Individual users contribute directly to revenue through game usage and app purchases, while enterprises use the company for contract development, operational outsourcing, and blockchain implementation services. Revenue streams include in-app purchases, app sales, contract development fees, and transactions and commissions related to digital assets such as NFTs.

The business is divided into two main segments: "Mobile Business" and "Blockchain Business." The Mobile Business handles planning and operation of social games including those for SNS platforms, development and sales of paid game applications, and contract development and operation of websites and applications for business clients. The Blockchain Business engages in comprehensive related services, including design and implementation of digital assets (NFTs) and services that combine games with cryptocurrencies.

The company's core growth strategy is to simultaneously expand sales and improve profitability over the medium to long term. Specifically, it has set a target to raise the operating profit margin to approximately 10% of sales, and aims to strengthen its existing business centered on its flagship social game "Guripachi" while creating new revenue sources early. In parallel with enhancing existing services, the company is expanding commissioned operations and publishing businesses that contribute to revenue stabilization, implementing measures to increase recurring revenue streams rather than relying on one-time sales.

The company has designated mobile content and blockchain as priority investment areas. In the mobile sector, targeting core fans of pachinko and pachislot games, it pursues a phased approach to maximize revenue: app store distribution, free-to-play platform deployment, and third-party platform provision. The company is internalizing content porting to reduce outsourcing costs and improve profit margins. In commissioned development, it differentiates itself by combining ongoing operational contracts with one-time development projects to secure stable income.

The company plans to actively leverage M&A and strategic capital partnerships to expand its business scope. It will enter new markets through nurturing core titles following "Guripachi" and partnering with companies that have core users in new genres, while strengthening overseas expansion centered on Asia. By simultaneously developing the blockchain business launched in the previous period, the company aims to diversify business risk and accelerate time-to-market through game publishing, intellectual property acquisition, and business partnerships to achieve early monetization.

The company views technological innovation as a growth opportunity and is advancing investment in cutting-edge technology and talent development. While designing and implementing new services utilizing blockchain and digital assets (NFTs), it is strengthening specialist hiring and in-house development capabilities to respond to smartphone technology evolution, building an organization that can respond swiftly to technological change. This enables the company to simultaneously advance existing businesses and launch new ventures early, while pursuing financial improvement through cash flow-focused investment.