Company overview of Techmatrix (3762)
(2) Application Service Business
In the application services business, the company develops businesses such as system development, application packages, test solutions, and cloud services for specific markets and specific industries. The target fields are CRM, business solutions, SE, and education. In terms of revenue composition ratio for the 2024 fiscal year, the CRM, business solution, and SE fields each account for about one third, and the revenue composition ratio for the education field, which entered as a new business since 2021, is still small.
a) CRM field
In the CRM field, the company provides contact center CRM systems/FAQ knowledge systems "FastSeries" that support improvement of corporate customer service on both on-premises and cloud services. For the on-premises version, we have been moving to a subscription billing model since three years ago, and now account for about 60% of the stock sales revenue in the 2024 fiscal year. In the CRM system market, we are the domestic top share in package products, and our main competitor in SaaS is Salesforce.com. Also, in April 2023, we established a local subsidiary, TechMatrix Asia, in Thailand and are promoting business expansion in the Southeast Asian market in collaboration with local companies.
The major partners are Bell System 24 Co., Ltd. (a subsidiary of Bell System 24 Holdings Inc. (6183)), NEC Corporation (6701), Itochu Techno-Solutions Corporation, and other major SIers, and they are introduced into the contact (telemarketing) centers and customer support centers of each company. In the pharmaceutical industry, many of the company's CRM systems are introduced in the consultation counter proposed by the Japan Pharmaceutical Manufacturers Association (JPMA) that various pharmaceutical companies have established.
b) Business solution field
In the business solution field, we mainly provide services such as financial solutions, academic and public solutions (support for academic research), and BI (business intelligence) solutions. In the financial solution field, we provide development and sales of 'ARECCIA' series of financial transaction integrated management system developed by Alexa Fintech for financial institutions, introduction support for evaluation and analysis of financial products from leading vendors overseas, ALM risk management tools, maintenance and operation. In the academic and public solution field, we develop and operate and maintain research topic management systems and DOI (Digital Object Identifier) registration and management systems for papers and research data for national research and development agencies (Japan Agency for Medical Research and Development, Japan Science and Technology Agency, etc.). In addition, Casareal, a consolidated subsidiary, provides consulting services for cloud-native development related to system development and education and training services for technical personnel related to internet services.
※ DOI (Digital Object Identifier) is a permanent identification number assigned to documents on the Internet. It is often used in the field of academic papers.
c) SE field
In the SE field, we provide development support tools (test tools, etc.) and consulting services that support the entire life cycle of development processes with the goal of improving the quality of software and productivity of development processes through the 'best of breed' approach, which selects the best products, even if they are from different manufacturers, and uses them in combination. Among the products handled, Parasoft's software test tool has a high share in the field of embedded software development.
※ Instead of using series products from the same manufacturer, the best products are selected even if they are from different manufacturers and used in combination.
The target includes digital home appliances, information and communication equipment, automobiles, medical equipment, robots and other equipment in which software is embedded, as well as mission-critical software such as financial systems. In terms of market-specific revenue, demand for the development of various in-vehicle systems such as AD (autonomous driving system), ADAS (advanced driving system), car navigation systems, powertrain, etc. is strongest in the automotive industry. In recent years, we have been focusing on providing development support tools as SaaS mounted on cloud platforms, and as of the March 2024 period, Stock sales account for about 80% of revenue.
d) Mainland education
As a new business, we started offering a cloud service for educational institutions called "Tsumugino" from April 2021. It is a platform service that implements a school support system based on a school communication platform developed for the purpose of supporting children's proactive and interactive learning. It has been developed using the cloud service and information security system construction know-how accumulated so far. The features include low cost (monthly usage fee of several hundreds of yen/ID), compatibility with multi-platform, design as a platform that allows not only children but also parents and local residents to participate, and robust information security measures based on our expertise in information infrastructure business. In particular, information security measures are an important evaluation point for educational institutions and are considered a differentiation factor from competing services. Since the start of the service, it has been introduced in progressive private junior and senior high schools and some national and public schools that promote active learning philosophies.
(Written by FISCO guest analyst, Jo Sato)