Major Cancellation Due to an Existing Customer's Change in Vehicle Management Policy
First written in FY2022-Q3. 5 of 7 entries say "Materialised", first in FY2022-Q3. Latest entry: FY2025-H1.
Flect moved to the "Worse" side of this theme in 2022, 2 years after the typical company in this theme (2020).
The whole theme swung hardest in 2018: 3 of 8 companies on the "Worse" side.
2 other companies' latest entry also says "Dropped".
- FY2025-H1DroppedAnnual report
「The conversion of the Cariot service into a joint venture between the company and Soracom was completed on 1 October 2024, and the service has since fallen outside the scope of the company’s business.」
As the Cariot business fell outside the scope of the company’s business, this filing does not mention the risk of Cariot cancellations resulting from changes in existing customers’ vehicle-management policies or other factors. - FY2024-Q2Changes in cancellation reasonsAnnual report
「Meanwhile, cancellations occurred among customers acquired under previous strategies. The company will continue to pursue steady business development while focusing on areas where it can leverage its competitive advantages.」
Cariot stated that, unlike the previously cited cancellations due to soaring fuel prices or cost-cutting by customers using only some functions, cancellations occurred among customers acquired under previous strategies. - FY2023-Q3MaterialisedAnnual report
「Meanwhile, cancellations occurred as customers that used only some functions, such as safe-driving management, cut costs. The company will continue to pursue steady business development while focusing on target areas where it can leverage its competitive advantages.」
Cancellations continued to occur among customers using only some functions, driven by cost-cutting. - FY2023-Q2MaterialisedAnnual report
「Meanwhile, a certain number of cancellations occurred as customers’ performance deteriorated due to higher expenses, including soaring fuel prices, prompting them to cut costs.」
Cariot cancellations continued to occur against a backdrop of deteriorating customer performance and cost-cutting due to soaring fuel prices and other factors. - FY2023-Q1MaterialisedAnnual report
「Meanwhile, cancellations also occurred as customers cut costs amid deteriorating performance caused by changes in the external environment, including higher input costs resulting from soaring fuel prices.」
In addition to cancellations resulting from changes in vehicle-management policies, Cariot cancellations occurred against a backdrop of soaring input costs, such as fuel prices, and customer cost-cutting. - FY2022MaterialisedAnnual report
「Annual recurring revenue (ARR) declined from the fourth quarter of the fiscal year ending March 2021 due to the impact of COVID-19, and temporarily recovered in the second quarter of the fiscal year ending March 2022. However, large-scale cancellations continued from the third quarter onward in connection with changes in existing customers’ vehicle-management policies, and ARR increased only modestly, by ¥7 million, in the fiscal year ending March 2022.」
Large-scale cancellations resulting from changes in existing customers’ vehicle-management policies continued, limiting the increase in ARR to ¥7 million. - FY2022-Q3MaterialisedAnnual report
「Meanwhile, large-scale cancellations occurred among existing customers following changes in their vehicle-management policies.」
The company stated that large-scale cancellations actually occurred as a result of policy changes by existing customers.