Soracom (147A) Investor presentation summary

Business model and market landscape

• Operates a global AI/IoT connectivity platform offering SIMs, devices, and cloud-based services for IoT deployments, with over 70% of revenue from recurring subscriptions.

• Provides seamless global connectivity through partnerships with 550 carriers in 207 countries, leveraging proprietary mobile core technology on public cloud infrastructure.

• Serves diverse industries including energy, mobility, retail, manufacturing, and construction, with case studies from major clients like NICIGAS, Suzuki, Hilton, and Ford.

• Holds over 100 patents and offers 22 modular platform services, enabling flexible, scalable, and cost-effective IoT solutions.

• Positioned as a horizontal platform provider with comprehensive value-added services, recognized as a leader in the 2026 Gartner Magic Quadrant for managed IoT connectivity.

Financial highlights

• FY March 2026 recurring revenue reached JPY 9.2B (+41.7% YoY), total revenue JPY 12.4B (+38.1% YoY), and EBITDA JPY 1.2B (+47.3% YoY).

• Operating profit rose to JPY 871MM (+32.7% YoY), with a recurring revenue ratio of 74.8% and a churn rate of 0.4%.

• Global revenue ratio climbed to 48%, with net retention rate at 121%.

• Cash and equivalents at year-end were JPY 9.3B, with strong operating cash flow and disciplined SG&A cost control.

• Forecast for FY March 2027 (organic only): revenue JPY 15.1B (+21.7% YoY), recurring revenue JPY 11.4B (+22.8% YoY), EBITDA JPY 1.65B (+34.3% YoY), and operating profit JPY 1.12B (+28.8% YoY).

Growth strategies

• Pursuing exponential growth through global expansion, strategic alliances, and M&A, targeting JPY 50B revenue by FY March 2031 with a 30%+ CAGR.

• Driving growth via two main levers: core IoT expansion (domestic AI-driven connectivity, connected car, and carrier infrastructure) and global expansion (acquisitions, new markets, and technology complementarity).

• US revenue grew at an 85% CAGR, leveraging a distributor strategy with thousands of technology solution advisors.

• Connected car initiatives include strategic alliances with KDDI and Suzuki, offering multi-profile eSIM management and global deployment.

• Focused on expanding recurring revenue through both organic and inorganic strategies, with a recurring revenue ratio target of 70–80%.