VALTES HOLDINGS CO.,LTD. operates its business with a focus on software testing and detailed its growth strategies, including its training business, automation tools and security services, in an IR interview. Based on the interview conducted in May 2024, the company’s strengths and future direction are outlined.
Founded in April 2004 by an entrepreneur who had operated a software development company in Kansai, against the backdrop of software quality issues. Recognising the importance of testing, the company has prioritised training and the accumulation of expertise as a team of professionals specialising in testing. It initially dispatched personnel to large enterprises through SES, and built the foundation for its Valcare training business by enhancing its education programmes.
The company diversified its business following the 2008 Lehman shock. It expanded its customer base from a focus on embedded systems for manufacturers to internet companies, while continuing to secure large enterprise projects. It listed on the Tokyo Stock Exchange Mothers market in May 2019 and attracted attention as an IPO company on that market.
In terms of its business overview, the company serves a broad range of industries, including financial services, with software testing at its core. It has more than 500 highly skilled specialised software testing engineers, with long-term contracts and high unit prices for enterprise customers as key strengths. Its services include support for quality improvement from the upstream development stages, in-house test automation tools and cybersecurity assessments.
Its growth strategy emphasises the stability of the enterprise market while expanding its tools business through subscriptions. The company is advancing the sophistication of automation and aims to develop a no-touch platform. It plans to strengthen quality education through a certification programme and e-learning offered by its Valcare training business, expand its development services through M&A, and reinforce its holding company structure.
Looking ahead for investors, the company views the industry’s growth potential as substantial, while recognising that current market valuations are relatively low. Although its medium-term plan is based on conservative assumptions, it has set a revenue target of ¥100 billion for the 10 years following its 30th anniversary.