(298A) Stock Price

GVA TECH operates a legal technology business that combines IT with legal services, providing solutions to streamline legal operations for companies and individuals. Its core offerings are the proprietary legal platform "OLGA" and a suite of online commercial registration services, aimed at digitizing legal functions and simplifying procedures.

The company's primary customers include corporate legal departments and law firms, as well as startups and small-to-medium enterprises without in-house legal functions. Revenue consists of recurring income from OLGA's monthly subscription fees and initial implementation costs, combined with transaction-based income from registration services, including per-transaction fees and optional add-on charges.

OLGA provides modular functions including contract review, contract management, centralized legal data management, and chat-based legal support, allowing companies to adopt features tailored to their needs. For registration services, the company offers "GVA Corporate Registration," which automatically generates change registration documents, and "GVA Registry Retrieval," enabling easy online requests for certified registry extracts. The company is expanding usage through convenience features such as automatic updates and mail forwarding services.

The company positions its legal tech SaaS business "OLGA" and corporate registration service "GVA Corporate Registration" at the center of its growth strategy, aiming to enhance enterprise value by expanding revenue and recurring income. Specifically, Annual Recurring Revenue (ARR) reached 696 million yen as of December 31, 2024, with 620 customer companies and an average revenue per customer of 93,000 yen. While the company continues to operate at a sales loss in the short term due to user acquisition and feature investments, the operating loss ratio is improving through the accumulation of subscription-based revenue. The company targets early elimination of net losses and achieving positive operating cash flow.

As a priority investment area, the company is focusing on strengthening feature integration within OLGA and expanding customer touchpoints. Previously offered as separate modules—"contract management," "contract review support," "legal data foundation," and "AI-powered legal support"—the company is enhancing their integration to enable end-to-end processing from legal case intake to review, creating differentiation. Notably, companies adopting multiple modules show a significantly higher average revenue per customer of 198,000 yen as of December 31, 2024, demonstrating that module integration-driven upselling drives revenue growth. The company is also investing in system stability and information security enhancement (building frameworks based on ISO/IEC 27001:2022) to strengthen the reliability of services handling sensitive information.

For new market development, the company plans to expand its target audience from legal departments to business units, small and medium enterprises, and eventually individual users. The company has already released requester accounts and AI chatbots usable by business units with limited legal expertise, aiming to simultaneously increase user numbers and customer value through company-wide adoption. The domestic SaaS market is projected to expand from 1.41 trillion yen in 2023 to 2.09 trillion yen by 2027, while the legal tech market itself is estimated to grow from 24.4 billion yen in 2021 to 73.1 billion yen by 2026. Additionally, using its proprietary calculation applying OLGA's company-wide features, the company estimates a market size of approximately 488.6 billion yen. On the registration services side, the company plans to expand new products across patent attorney, administrative scrivener, and social labor consultant domains to increase usage frequency and revenue per customer.

Technological innovation is fundamental to the company's competitive advantage, with continuous investment in research and development including AI and talent acquisition. Specifically, the company continues to improve OLGA's AI legal assistant and automation capabilities, enhancing user experience and reducing workload to lower adoption barriers. On the talent front, the company is advancing developer recruitment and workplace improvements, strengthening research capabilities to incorporate cutting-edge technology, and reinforcing system operations and security investments to deliver stable service even as user numbers scale significantly.