Risk that the Subscription Model Will Not Achieve Widespread Adoption
First written in FY2020. 9 of 13 entries say "Mitigated", first in FY2021. Latest entry: 2026-08-07.
0 other companies' latest entry also says "Mitigated".
- 2026-08-07MitigatedEarnings presentation
「The churn rate improved to a 12-month historical average of 1.2%, from 1.5% at the end of the same quarter of the previous year.」
The lower churn rate in the subscription business indicated an improvement in the risk relating to adoption and continued use. - FY2024MitigatedAnnual report
「As a result, for the current consolidated fiscal year, the digital marketing-related business reported revenue of ¥3,510.543 million, up 9.8% year on year, and a segment profit (operating profit) of ¥292.143 million, compared with a segment loss (operating loss) of ¥157.757 million in the previous fiscal year.」
The digital marketing-related business centered on the subscription model became profitable, reducing the risk of delayed monetization due to adoption falling short of expectations, option cancellations and other factors. - FY2024-Q3MitigatedAnnual report
「In addition to subscription-model revenue performing well, orders for contract development related to Cloud CIRCUS and Web production increased, resulting in higher project-based revenue.」
Subscription revenue performed well, and the increase in contract development and Web production also contributed to an improvement in conditions related to the risk of adoption falling short of expectations. - FY2024-Q2MitigatedAnnual report
「As a result of these activities, subscription-model revenue remained strong, while orders for Cloud CIRCUS-related contract development and web production also increased, driving growth in flow-based revenue.」
Subscription revenue performed well, and contract development and Web production related to Cloud CIRCUS also increased, improving conditions related to the risk of subscription-model adoption falling short of expectations. - FY2024-Q1MitigatedAnnual report
「In addition to subscription-model revenue performing well, orders for contract development related to Cloud CIRCUS and Web production increased, resulting in higher project-based revenue.」
Subscription revenue performed well, and contract development and Web production related to Cloud CIRCUS also increased. This indicates an improvement from the previous period's shortfall in adoption caused by option cancellations and the burden of launching the business. - FY2023WorsenedAnnual report
「The result fell behind the initial plan because training the new employee took time, launching the PLG strategy also took time, and although monthly SaaS tool revenue increased on a net basis, subscription-model revenue slowed due to cancellations of tool options.」
Although monthly revenue increased on a net basis, subscription revenue fell behind the initial plan because of option cancellations and the burden of launching PLG and training new employees. The risk of adoption falling short of expectations materialized. - FY2023-Q3MitigatedAnnual report
「As a result, in the digital marketing-related business, revenue for the cumulative third quarter was ¥2,267.831 million, up 16.5% year on year, while the segment loss (operating loss) was ¥186.363 million, compared with a segment loss (operating loss) of ¥271.036 million in the same period of the previous year.」
The digital marketing-related business centered on Cloud CIRCUS recorded higher revenue, and the segment operating loss narrowed from ¥271.036 million in the same period of the previous year to ¥186.363 million. Conditions related to the risk of subscription adoption falling short of expectations improved from the previous quarter. - FY2023-Q1WorsenedAnnual report
「During the cumulative first quarter, MRR (monthly recurring revenue) from Cloud CIRCUS SaaS slowed as a result of focusing, as planned, on launching this organizational structure, although revenue increased year on year.」
MRR for Cloud CIRCUS slowed as a result of focusing on launching an organizational structure combining SLG and PLG. Revenue increased year on year. - FY2022-Q3MitigatedAnnual report
「In the digital marketing-related business, orders for the SaaS tool suite Cloud CIRCUS increased steadily, enabling us to build up MRR (monthly recurring revenue).」
The company stated that orders for Cloud CIRCUS remained steady and that MRR increased. - FY2022-Q1MitigatedAnnual report
「As a result of these development investments, increased cross-selling and new orders for Cloud CIRCUS led subscription-model revenue and profit to perform well against plan.」
Increased cross-selling and new orders for Cloud CIRCUS led subscription-model revenue and profit to perform well against plan, indicating progress in addressing the risk of adoption falling short of expectations. - FY2021MitigatedAnnual report
「Revenue and profit from the subscription model performed well against plan as cross-selling and new orders for Cloud CIRCUS increased.」
Although some customers canceled their subscriptions, subscription revenue and profit performed well against plan due to increased cross-selling and new orders. - FY2021-Q2MaterialisedAnnual report
「While some customers canceled subscription services offered through Cloud CIRCUS due to the impact of COVID-19,」
Some customers did in fact cancel subscription services. However, subscription-based revenue performed well as a result of increased cross-selling and new orders. - FY2020First statedAnnual report
「If adoption of this business model falls below expectations, it may affect the Group's operating results.」
The digital marketing business plan assumes the adoption of the subscription model, and the risk of adoption falling below expectations was disclosed explicitly for the first time.