(147A) Stock Price

Soracom operates its business around "SORACOM," a cloud-based platform that enables companies to easily adopt IoT solutions. The company provides a one-stop offering of IoT communications (IoT SIMs, low-power communication, satellite communication, etc.), data storage and visualization, cloud integration, and remote access capabilities.

The company serves a diverse customer base ranging from startups to large enterprises and operators in the US and Europe. Its appeal lies in the ability for customers to start with small-scale usage. Revenue is primarily driven by recurring monthly subscription fees, supplemented by one-time revenue from device sales and implementation support services.

The company operates a single IoT Platform segment, with revenue divided across connectivity, network services, application services, product sales, professional services, and outsourced operations. By maintaining a proprietary mobile infrastructure in the cloud, enabling global connectivity across multiple carriers, and expanding its ecosystem through partner programs, the company aims to enhance scalability and drive customer retention.

The company aims for global business expansion by using "SORACOM" as its core offering to lower barriers to IoT adoption. Its mission is "democratizing technology," and through expanding its product portfolio, it targets becoming the world's leading IoT platform as an MVNO. The company prioritizes growing recurring revenue as its key management metric. It demonstrates the strength of its subscription model through concrete figures: NRR (Net Revenue Retention) of 117% in fiscal year 12, over 8,800 billing accounts as of March 2025, and an annual churn rate of just 0.4% among major customers.

The company has identified four priority investment areas: sales and marketing, talent recruitment and development, research and development, and telecommunications network procurement. Specifically, it aims to increase ARPA (Average Revenue Per Account) by expanding sales staff in the US and Europe, transitioning customers from self-service to account manager-led relationships for larger accounts, raising brand awareness through events and digital advertising, and strengthening professional services. The company is also pursuing differentiation through strategic alliances with KDDI, Suzuki, and the Marubeni Group, as well as M&A, including making Carriot a consolidated subsidiary in October 2024.

The company pursues both horizontal and vertical expansion strategies for new market development. Horizontally, it is expanding adoption across connectivity, cloud integration, and applications, focusing on mid-market self-service customers in the US and direct outreach to large customers in Europe. Vertically, it is developing industry-specific solutions for connected cars and smart cities to secure large-scale projects. To support global expansion, overseas headcount is growing, with US and European employees increasing from 16 in 2020 to 55 by 2025.

The company continues investing in technological innovation, integrating advances in 5G/6G, satellite communications, and generative AI into its platform. Specific initiatives include strengthening development of proprietary devices such as cellular-enabled AI cameras and IoT sensors, creating mechanisms to facilitate third-party app integration, and expanding network capacity through procurement from multiple overseas carriers. Financially, the company maintains liquidity with interest-bearing debt of 950,167 thousand yen and cash and deposits of 8,917,773 thousand yen, demonstrating its commitment to advancing recruitment, development, and marketing investments while carefully evaluating returns.