Caulis Inc. (153A) Stock Price

Caulis provides "Fraud Alert," a cloud-based fraud detection service that combines big data on criminal activity with proprietary algorithms. Operating under a policy of co-creating information infrastructure, the company detects unauthorized access and money laundering in real time using practical advanced technology.

Its primary customers include financial institutions such as banks, securities firms, money transfer operators, and cryptocurrency businesses, as well as a broad range of other industries including telecommunications carriers and infrastructure providers in power and gas utilities, plus various service providers. Revenue is based primarily on monthly recurring charges (MRR), supplemented by usage-based pricing models tied to access volume and unique user counts, along with consulting income from monitoring improvements and related services.

The business operates as a single segment focused on fraud detection. Fraud Alert comprises three services: login detection, deposit/withdrawal detection, and new account opening detection. The system determines "user authenticity" based on device information, IP addresses, and behavioral history, triggering additional authentication or blocking transactions only when risk is high. By sharing blacklists across customers, the company enables cross-industry early detection while offering rapid deployment and low implementation costs as key competitive advantages.

The company operates under the mission of "co-creating information infrastructure to make the world better." It aims to expand stable recurring revenue centered on its cloud-based fraud detection service, "Fraud Alert." Key performance metrics include monthly recurring revenue (MRR), number of contracted clients, average revenue per user (ARPU), and contract backlog. As of December 2024, annual recurring revenue (ARR) reached approximately 1.26 billion yen, with ARPU at approximately 2.246 million yen. The company targets further ARR growth by expanding MRR and the number of contracted clients.

The company prioritizes investment in research and development and sales infrastructure, leveraging a differentiated customer base centered on financial institutions. It has established transaction relationships with 24 banks including megabanks and online banks, as well as 10 securities companies. By conducting direct transactions without intermediaries, the company can quickly incorporate customer feedback into product improvements. Network effects from encrypted access information shared across customers enhance detection accuracy and increase switching costs post-implementation, thereby reducing churn rates and stabilizing revenue.

For market expansion, the company focuses on adoption by mid-sized and regional banks and securities companies, while expanding its business scope through new services developed in partnership with government agencies. Examples include regulatory sandbox approval in 2019 and gray-zone resolution in 2024 enabling use of electricity contract information, as well as involvement in CLUE, a fraud information-sharing platform among QR code payment operators. Leveraging government relationships, the company plans to horizontally deploy proven services. The global anti-money laundering market is projected to grow at approximately 15.6% annually, and the company is capturing increased fraud prevention demand driven by rising cashless payment adoption.

Regarding technological innovation, the company continues advancing real-time detection capabilities by combining criminal big data with proprietary algorithms. Fraud Alert operates on three pillars—login detection, transaction detection, and new account opening detection—assessing "user authenticity" from device information and behavioral history to trigger additional authentication or block transfers only for high-risk cases. For information security, the company holds ISMS and privacy mark certifications, with customer data encrypted on the client side. Leveraging its track record of reducing implementation time by approximately 16 months between 2018 and 2022, the company maintains competitive advantage through continued investment in both usability and detection accuracy.