HeartCore Shifts its CMS Licensing Contracts to Drive Longer and Increased Sales Contracts

NEW YORK and TOKYO, Oct. 22, 2024 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or “the Company”), a leading enterprise software and data consulting services company based in Tokyo, announced a strategic shift from annual contracts to multi-year agreements around its core software business contracts.

Since achieving profitability across its software business in Q1 2024, HeartCore has maintained a strong focus on its sales and marketing strategies to drive growth and sustain positive momentum. By September 2024, the Company tripled its new customer acquisition count while also reporting a fivefold increase in contract extensions from its existing customer base, both on a year-over-year basis.

Building on this momentum, HeartCore has adopted a strategic shift to proposing multi-year agreements that provide customers with more comprehensive, long-term support while helping each client establish a robust CMS infrastructure. Additionally, the Company plans to introduce maintenance and support services bundled into these multi-year contracts. By expanding the scope of work and providing ongoing, in-depth support, HeartCore seeks to generate recurring revenue streams, positioning itself for sustained profitability.‌

“Effectively managing costs within our software business has been a key priority, and now, as part of our ongoing efforts to optimize financial performance, we are making a strategic shift towards multi-year contracts,” said HeartCore CEO Sumitaka Kanno. “This approach introduces a new, predictable stream of recurring revenue, which will play a pivotal role in enhancing our margin profile. We are already seeing encouraging signs of profitability within this arm, and we believe this shift will help position us for sustained growth and success. We remain committed to optimizing our sales and marketing efforts to continue delivering strong results for future quarters ahead.”