Risk of stagnant recurring revenue due to customer cancellations
First written in FY2021. 6 of 11 entries say "Worsened", first in FY2023. Latest entry: 2026-08-14.
The whole theme swung hardest in 2021: 1 of 7 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2026WorsenedAnnual report
「The monthly churn rate was 0.74% on a trailing 12-month average basis, and the company continues to meet its internal KPI target of less than 0.8%.」
Although the company has maintained its KPI target of less than 0.8%, the monthly churn rate rose from 0.65% in FY2026-H1 to 0.74%. - FY2026-H1WorsenedAnnual report
「The average monthly churn rate for the past 12 months (Note 6) was 0.65%,」
The monthly churn rate rose from 0.36% in FY2025 to a trailing 12-month average of 0.65% for the current interim accounting period, indicating deterioration in the metric related to cancellation risk. - FY2025WorsenedAnnual report
「Trend in key performance indicators Period Fiscal year ended March 2024 Fiscal year ended March 2025 Recurring revenue ¥374 million ¥408 million Monthly churn rate 0.14% 0.36%」
Recurring revenue increased, while the monthly churn rate rose from 0.14% to 0.36%, indicating deterioration in the cancellation-related metric. - FY2024MitigatedAnnual report
「Trend in key performance indicators Period Fiscal year ended March 2023 Fiscal year ended March 2024 Recurring revenue ¥322 million ¥374 million Monthly churn rate 0.28% 0.14%」
Recurring revenue increased, while the monthly churn rate declined from 0.28% to 0.14%, indicating improvement in the cancellation-related metric. - FY2023WorsenedAnnual report
「Trend in key performance indicators Period Fiscal year ended March 2022 Fiscal year ended March 2023 Recurring revenue ¥222 million ¥322 million Monthly churn rate 0.03% 0.28%」
Recurring revenue increased, while the monthly churn rate rose from 0.03% to 0.28%, indicating deterioration in the metric related to cancellation risk. - FY2022MitigatedAnnual report
「Monthly recurring revenue (MRR): ¥17.858 million ¥21.225 million Monthly churn rate: 0.19% 0.03%」
The company reports that MRR increased and the monthly churn rate declined under a policy focused on expanding recurring revenue and preventing cancellations. - FY2021First statedAnnual report
「However, if cancellations increase and recurring revenue fails to grow because the competitiveness of the Group's services declines, for example because the Group is unable to enhance the service functions desired by customer companies or keep pace with technological innovation, this may affect the Group's operating results and financial condition.」
The company identifies enhanced functionality, understanding customer needs and adopting technological innovations as measures to prevent cancellations.