Finatext Holdings <4419> provides cloud-based core systems for securities and insurance businesses, as well as data analysis and service development support. The company has three businesses: Financial Infrastructure, Fintech Solutions, and Big Data Analytics. In the previous period's results, Financial Infrastructure accounted for 55% of revenue and provides complex core systems necessary to operate financial services as SaaS-type systems on the cloud to customers. In the securities infrastructure "BaaS", 12 services such as "Colekabu" and "N Direct" with Seven Bank and Nissay Asset Management as partners are in operation. Inspire, the insurance infrastructure, is used by nine companies, including Aioi Nissay Dowa Insurance and EPOS Small Short-Term Insurance, and accounts for 21% of the business. Fintech Solutions, which accounts for the same percentage, provides support for DX (digital transformation) and digital marketing for financial institutions, while Big Data Analytics, which accounts for 24%, supports the promotion of data utilization for companies that own big data.
In the fiscal year ending March 2024, the sales revenue was 537.5 million yen, an increase of 40.7% from the previous year, and the operating profit was 204 million yen in the black. The company achieved a growth rate of over 40% for the third consecutive period since it went public and achieved its first profit since going public. In addition to acquiring three new partners in the securities section of the Financial Infrastructure and releasing the first system migration project for an existing financial institution, it has continued to expand its customer base through AlternaData's data license for Big Data Analytics and secured multiple generated AI-related projects for data analysis support. The sales revenue for the fiscal year ending March 2025 is expected to increase, with sales of 762.7 million yen, a 41.9% increase from the previous year, and operating profit of 686 million yen, an increase of 3.3 times.
The company's stock income and usage-based fee income, which are continuous revenue streams, account for about 52% of the total sales revenue. There is no competition, and the company has already conducted transactions with major companies, showing a growth trend in its performance. Acquiring new partners and expanding its share in the Financial Infrastructure, which accounts for about 60% of sales revenue, will continue to be important. While system introduction at the time of new entry was the focus until now, focusing on acquiring transfer projects from existing systems is likely to lead to an increase of approximately 185 customers, making new partner acquisition more solid. In the medium term, it is easy to assume that overall performance will also grow by double digits in order to increase stock income and usage-based fee income from existing partners, so we should continue to keep an eye on the company's movements.
Finatext Holdings <4419> provides cloud-based core systems for securities and insurance businesses, as well as data analysis and service development support. The company has three businesses: Financial Infrastructure, Fintech Solutions, and Big Data Analytics. In the previous period's results, Financial Infrastructure accounted for 55% of revenue and provides complex core systems necessary to operate financial services as SaaS-type systems on the cloud to customers. In the securities infrastructure "BaaS", 12 services such as "Colekabu" and "N Direct" with Seven Bank and Nissay Asset Management as partners are in operation. Inspire, the insurance infrastructure, is used by nine companies, including Aioi Nissay Dowa Insurance and EPOS Small Short-Term Insurance, and accounts for 21% of the business. Fintech Solutions, which accounts for the same percentage, provides support for DX (digital transformation) and digital marketing for financial institutions, while Big Data Analytics, which accounts for 24%, supports the promotion of data utilization for companies that own big data.