CyberSolutions Inc.
436A・Growth Market・Information & Communication
CyberSolutions Inc.
436A・Growth Market・Information & Communication
CyberSolutions Inc. (Single Segment)
A single segment achieving high profitability through hybrid management of email security and business communication
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue | ¥3,126 million | ¥2,749 million (derived from 13.7% year-on-year growth) | ↑ |
| IFRS Operating Profit | ¥1,233 million | ¥917 million (derived from 34.5% year-on-year growth) | ↑ |
| ARR (Annual Recurring Revenue) | ¥3,152,309 thousand | ¥2,753,042 thousand | ↑ |
| Effective Churn Rate (Cloud Services) | -0.14% (negative churn) | -0.10% (negative churn) | ↓ |
| Recurring Revenue Ratio | 95% | 94% | ↑ |
Business Details
A single segment operating a Digital Communication & Cybersecurity business. The company operates two businesses: Security Solutions (email sanitization, threat defense, information leakage prevention, etc.) and Communication Solutions (email, chat, groupware, etc.). Through fabless management, the company maintains a variable cost structure linked to revenue, achieving a high-profitability profile with a pre-tax margin of 39% (IFRS). Subscription-based recurring revenue accounts for 95% of sales, and the effective churn rate for cloud services is negative churn (-0.14%), reflecting an extremely high customer retention rate.
Recent Overview
FY2025 (ending April 2025) achieved high growth with revenue up 13.7% and IFRS operating profit up 34.5%, alongside the launch of three new products
In the fiscal year ended April 2025 (third fiscal year), the company achieved revenue of ¥3,126 million (up 13.7% year on year), IFRS operating profit of ¥1,233 million (up 34.5%), and IFRS profit for the period of ¥903 million (up 53.2%). The company released the business file transfer tool 'SecureDrive' in November 2024, and the groupware 'SecureBoard' and integrated communication platform 'SecureCommunicationONE' in February 2025, expanding into the groupware/portal domain. TKC Corporation made a capital investment in the company in September 2024, and the company entered into a business and capital alliance with Hitachi Systems, Ltd. in December 2024. In the first quarter of the fourth fiscal year (May–July 2025), growth accelerated further, with IFRS revenue of ¥876 million (up 17.6% year on year) and IFRS operating profit of ¥364 million (up 46.2%).
Key Products
Growth Drivers
- Growing demand for the Security Solutions business (revenue up 17.2% year on year) driven by heightened security awareness amid increasingly sophisticated cyberattacks and rising phishing fraud
- Cumulative expansion of recurring revenue through cross-selling and up-selling to existing customers, achieving negative churn (effective churn rate of -0.14%)
- Business expansion into the groupware/portal domain through the launch of new products including SecureDrive, SecureBoard, and SecureCommunicationONE
- Strengthened sales channels through strategic alliances with TKC Corporation (capital participation in September 2024) and Hitachi Systems, Ltd. (business and capital alliance in December 2024)
- High operating leverage (IFRS pre-tax margin of 39%) achieved through maintaining a variable cost structure and controlling fixed costs under fabless management
Risks
- Risk of intensified competition as major industry players such as Microsoft and Google expand their market dominance
- Risk of slowing growth due to the maturation of the email service market targeted by the Communication Solutions business
- Risk of dependence on partner companies (developers) under the fabless management model (intellectual property rights for core product functions are held by the developing companies)
- While foreign exchange risk is limited due to yen-denominated settlement contracts with overseas partner companies, there remains a risk of deteriorating business conditions due to geopolitical risk and inflation
- Risk of reputational damage should the company itself, as an information security service provider, suffer a cyberattack or information leakage incident