Nextgen,Inc.JP:3842Stock Price

Market cap
¥3.1B
P/E ratio
14.7x
NextGen provides internet-based voice communication systems and AI solutions to telecom carriers, government agencies, and enterprises across construction, healthcare, and finance sectors.

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Business Overview

NextGen is a company that provides solutions and services focused on voice-based communication technology. The company primarily delivers software solutions that replace traditional telephone and voice communication networks with internet-based technology, offering products such as IP-PBX systems, carrier interconnection gateways, and call recording devices. These products are sold to major telecommunications carriers, government agencies, and general enterprises.

NextGen operates a CPaaS marketplace called "NextGen CaMP" for partners using its CPaaS product "U-cube CPaaS." This platform specializes in connecting different communication services and functions as a hub to promote cloud service development by partner companies.

The company's business is divided into two segments: "Voice Communication Business" and "Communication DX Business." The Voice Communication Business provides core systems for telecommunications carriers and communication solutions for enterprises. It also develops and operates cloud PBX and IP voice communication software.

The Communication DX Business provides solutions leveraging voice recognition and AI, as well as cloud-based business support systems (BSS). The company particularly focuses on developing solutions for the construction, healthcare, and financial sectors, addressing growing demand as digital transformation progresses.

NextGen delivers IP-PBX, SBC, and voice recognition AI systems in both on-premises and cloud environments to advance digital transformation in voice communications. Product development and manufacturing are sometimes outsourced to software development partners and hardware manufacturing partners. Sales are conducted through direct sales channels and partner companies.

Management Policy

NextGen aims to enrich society through innovation in communications technology. The company provides carrier-grade products and services, deploying advanced communication services built on internet technology. It focuses particularly on two business areas: voice communication and communication digital transformation (DX).

In the voice communication business, NextGen addresses demand for IP-based telephone systems, centered on Session Border Controllers (SBC). The company strengthens enterprise solutions by expanding cloud PBX services and responding to growing demand for call recording and voice recognition capabilities. This enables the company to serve the needs of telecommunications carriers and enterprises with a comprehensive product portfolio.

In the communication DX business, NextGen promotes construction site safety management systems using AI voice recognition and operational efficiency improvements through Business Process Management (BPM) systems. The company actively develops new business ideas, including solutions for preventing telecommunications fraud. This approach delivers innovative solutions incorporating domestic and international trends.

NextGen targets revenue of 5 billion yen, operating profit of 400 million yen, and EBITDA of 700 million yen by 2028. The company builds a stable revenue foundation and drives business growth by strengthening subscription-based business models. Through a market segment change to the Tokyo Stock Exchange Standard Market, NextGen aims to expand its investor base and improve liquidity.

The company promotes flexible work arrangements and focuses on securing and developing talented personnel. By implementing telework and leveraging proprietary solutions for productivity improvement, NextGen enables diverse working styles. This approach addresses the challenge of engineer shortages and enhances corporate competitiveness.

NextGen is developing new services using CPaaS products. Through product development based on AI voice recognition technology and technology accumulation via industry-academia collaboration, the company creates new market opportunities. The company strengthens public relations activities to increase awareness of its solutions.