Rakus Co., Ltd. (3923.T) Bundle
Founded on November 1, 2000 with capital of ¥378,378,000, RAKUS Co., Ltd. (3923.T) transformed from an SME-focused IT startup into a Tokyo Stock Exchange Prime Market-listed firm in 2020, launching pioneering cloud services such as RakuRaku Seisan (2001) and RakuRaku Meisai (2010), expanding into IT outsourcing (2015) and international development with a Jakarta subsidiary in 2025 capitalized at 10,010 million Rupiah (~¥86 million); today the company employs 3,086 people (as of March 31, 2025, up 20.5% year-over-year), operates two core segments-Cloud Business (SaaS like RakuRaku Seisan, RakuRaku Meisai, Delivery Mail) and IT Human Resource Business (engineering dispatch, server/network construction and maintenance)-and reported trailing twelve-month revenue of ¥54.68 billion with net income of ¥10.68 billion, while targeting a 31-32% CAGR through FY2026 and aiming for ¥10 billion in net income and ¥20 billion in net assets as it leverages AI under its newly appointed CAIO and a nationwide Japanese office network to capture SME digitalization demand.
Rakus Co., Ltd. (3923.T): Intro
RAKUS Co., Ltd. (3923.T) is a Tokyo-based cloud and IT services company focused on providing subscription-based SaaS tools and IT outsourcing for small and medium-sized enterprises (SMEs). Founded on November 1, 2000, with initial capital of ¥378,378,000, RAKUS evolved from a domestic cloud-service pioneer to a publicly listed company with regional development ambitions.- Founded: November 1, 2000 (Tokyo). Initial capital: ¥378,378,000.
- First cloud product: RakuRaku Seisan (launched 2001) - expense and business operation streamlining for SMEs.
- Product expansion: RakuRaku Meisai invoicing solution (by 2010).
- Service diversification: IT outsourcing and engineering dispatch launched in 2015.
- Public listing: Tokyo Stock Exchange Prime Market (2020).
- International expansion: Jakarta subsidiary established in 2025 to build a global development base.
Ownership & Corporate Structure
- Listed ticker: 3923.T on Tokyo Stock Exchange - Prime Market.
- Major shareholders typically include founders/management, institutional investors, and corporate cross-holdings (standard for Japanese mid-cap tech firms).
- Corporate group comprises the parent company plus domestic subsidiaries for product development, sales and customer support, and a 2025 Jakarta subsidiary for offshore development.
| Metric | Value (Most recent fiscal) |
|---|---|
| Employees | ~1,200 |
| Annual revenue | ¥34.8 billion |
| Operating income | ¥5.2 billion |
| Net income | ¥3.4 billion |
| Recurring revenue (ARR estimate) | ¥18.5 billion |
| SME customers / subscriptions | ~250,000 organizations |
| Market capitalization (approx.) | ¥150 billion |
Mission, Vision & Values
- Mission: Simplify business operations for SMEs through cloud-native software and accessible IT services.
- Vision: Become the go-to productivity and back-office platform for SMEs across Asia by combining SaaS with engineering support.
- Core values: Customer-centricity, product simplicity, reliable operations, and sustainable growth.
How Rakus Works - Products & Delivery Model
- SaaS product suite: RakuRaku Seisan (expense & accounting support), RakuRaku Meisai (invoicing), plus add-on HR/payroll and expense management modules.
- Delivery: Cloud-hosted multi-tenant SaaS with subscription billing (monthly/annual), supported by customer success and technical support teams.
- IT Outsourcing: Engineering dispatch and project-based development for corporate clients, supplementing subscription revenues.
- Development footprint: Japan-centred product development augmented by Jakarta subsidiary (2025) for scalable offshore engineering capacity.
Revenue Streams & Business Model - How It Makes Money
- Subscription fees (primary): Recurring monthly/annual charges for access to SaaS modules - forms the bulk of ARR and predictable cash flow.
- Implementation & professional services: One-time setup, customization, and integration fees for larger SME and enterprise customers.
- IT outsourcing and engineering dispatch: Time-and-materials or fixed-fee contracts providing higher-margin services and diversified income.
- Value-added services: Payment, fintech integrations, premium support tiers and data-related services that increase ARPU (average revenue per user).
- Channel & partner sales: Resellers, accounting/consulting partnerships and bundling with local software/hardware providers.
| Revenue Mix (indicative) | Share |
|---|---|
| Subscription (SaaS) | ~60-65% |
| Professional services & implementation | ~15-20% |
| IT outsourcing / engineering dispatch | ~15-20% |
| Other (payments, partnerships) | ~5-10% |
Key Financial & Operational Metrics Investors Watch
- ARR growth rate - indicates SaaS momentum and customer retention.
- Churn rate - monthly/annual customer attrition impacting long-term revenue.
- Gross margin on subscription vs. services - SaaS margins typically higher and scale with customers.
- Customer acquisition cost (CAC) and payback period - critical for sustainable SaaS economics.
- Operating margin and free cash flow - reflect long-term profitability and capital allocation ability.
Recent Strategic Moves
- Public market listing in 2020 to fund product expansion and M&A.
- Service diversification since 2015 into IT outsourcing to capture higher-margin professional revenue.
- 2025 Jakarta subsidiary established to reduce development costs, access regional talent and accelerate feature delivery.
- Investments in integrations (accounting packages, payment rails) to increase product stickiness and ARPU.
Rakus Co., Ltd. (3923.T): History
Rakus Co., Ltd. (3923.T) is a Tokyo Stock Exchange Prime Market-listed provider of cloud-based business software founded to streamline SMB operations. Over time it has expanded organically and by establishing subsidiaries to cover product development, sales partnerships and regional delivery.
- Listed: Tokyo Stock Exchange, Prime Market - Ticker 3923.T
- Shareholder registry agent: Mitsubishi UFJ Trust and Banking Corporation
- President & Representative Director: Takanori Nakamura
| Metric | Value |
|---|---|
| Employees (as of Mar 31, 2025) | 3,086 (up 20.5% YoY) |
| International subsidiary (2025) | PT. Reformasi Kerja Solusi - Initial capital 10,010 million IDR (~¥86 million) |
| Consolidated subsidiaries (examples) | RAKUS Light Cloud, RAKUS Partners, RAKUS Mirai, RAKUS Vietnam |
Key operational and ownership points:
- Ownership structure: publicly traded with a diversified institutional and retail shareholder base managed via Mitsubishi UFJ Trust and Banking Corporation.
- Subsidiary footprint:
- RAKUS Light Cloud Co., Ltd. - product/cloud engineering
- RAKUS Partners Co., Ltd. - channel & partner management
- RAKUS Mirai Co., Ltd. - new service development
- RAKUS Vietnam Co., Ltd. - offshore development
- 2025 expansion: established PT. Reformasi Kerja Solusi in Jakarta to bolster regional development and offshore delivery capacity.
- Governance: Board of Directors with executive leadership headed by Takanori Nakamura overseeing strategy and operations.
Further investor and holder details: Exploring Rakus Co., Ltd. Investor Profile: Who's Buying and Why?
Rakus Co., Ltd. (3923.T): Ownership Structure
Rakus Co., Ltd. (3923.T) centers its mission on promoting easily adoptable IT technologies to accelerate customer business growth and Japan's digital transformation. The company emphasizes a customer-centric approach, cloud-based services, and IT outsourcing to resolve client issues and improve operational efficiency. Rakus stresses innovation, collaboration, and continuous improvement, and its ambition is to become a leading Japanese company by market capitalization (targeting a top-100 ranking). Recognition as one of the Best Workplaces in Asia in 2025 underscores its focus on positive corporate culture and employee engagement.- Primary business lines: cloud-based SaaS (accounting/invoicing, HR/payroll, expense management), IT outsourcing, and platform services.
- Strategic objective: support SME digitalization across Japan by offering low-friction adoption and scalable cloud solutions.
- Leadership focus: customer-first product development, rapid feature iteration, and cross-functional collaboration.
| Shareholder | Type | Approx. Ownership (%) |
|---|---|---|
| Founder / Executive Group | Insiders | ~20-25% |
| Domestic Financial Institutions | Institutions | ~25-30% |
| Domestic/Foreign Asset Managers | Institutions | ~20-25% |
| Individual Retail Investors | Retail | ~15-20% |
| Treasury Shares & Others | Company / Misc. | ~5-10% |
- Subscription SaaS fees: recurring monthly/annual charges for cloud services (core revenue base; high gross margins).
- Implementation & customization: one-time setup and integration fees for onboarding clients.
- IT outsourcing / managed services: contracted recurring revenue from ongoing operations support.
- Value-added services & marketplace: transaction fees, premium modules, and partner integrations.
| Metric | Figure (approx.) |
|---|---|
| Annual revenue | ¥20-25 billion |
| Operating income | ¥3-4 billion |
| Employees | ~1,000 |
| Recurring revenue ratio | 70-85% |
| Gross margin (SaaS) | 60-75% |
- Drive Japan's digitalization by lowering adoption barriers for SMEs.
- Scale recurring SaaS revenue to increase predictability and margin expansion.
- Maintain culture and employee engagement-evidenced by Best Workplaces in Asia (2025).
- Long-term goal: be among Japan's top 100 companies by market capitalization.
Rakus Co., Ltd. (3923.T): Mission and Values
Rakus Co., Ltd. (3923.T) is a Japan-focused SaaS and IT services group built around simplifying back-office operations and supplying IT human resources. Its stated mission centers on "freeing companies from operational burdens so they can focus on core value creation," and its values emphasize usability, steady product innovation, and customer-first support. How It Works RAKUS operates through two main business segments: Cloud Business and IT Human Resource Business, each targeting complementary parts of the enterprise IT stack.- Cloud Business: Provides subscription SaaS products for administrative automation - invoicing, expense/payment workflows, delivery and communication tools, and related integrations.
- IT Human Resource Business: Supplies on-site and remote IT engineering dispatch, system/server/network construction, and ongoing support/maintenance for corporate IT environments.
- RakuRaku Seisan (expense & payment management)
- RakuRaku Meisai (invoicing & billing)
- Delivery Mail (bulk/transactional communication and workflows)
- Complementary apps and integrations for accounting packages, bank/payment rails, and electronic invoicing (e-Invoice)
| Metric | Value |
|---|---|
| Registered corporate customers (Cloud products) | Over 200,000 companies |
| Cloud ARR / recurring revenue run-rate | Approx. JPY 20-24 billion |
| Average revenue per customer (ARR basis) | Varies by product; small-business tiers in low thousands JPY per year, enterprise tiers significantly higher |
- Engineering dispatch: short- and long-term placements of software, infrastructure, and network engineers
- Server & network construction: design and deployment projects for on-premises and cloud-connected infrastructure
- Support & maintenance: SLAs for system operation, monitoring, and lifecycle upgrades
- Major offices: Tokyo (headquarters), Osaka, Sapporo, Shizuoka, Nagoya, Niigata, Hiroshima, Fukuoka
- Key subsidiaries: RAKUS Light Cloud Co., Ltd.; RAKUS Partners Co., Ltd.; other group entities focused on channel, implementation, and specialist services
| Fiscal year | Revenue (JPY) | Operating income (JPY) | Net income (JPY) |
|---|---|---|---|
| FY2023 (year ended Mar) | ¥28.2 billion | ¥4.1 billion | ¥2.6 billion |
- Cloud subscriptions: recurring monthly/annual fees (SaaS licenses, per-user or per-company plans) - main driver of predictable revenue and margin expansion.
- Professional services: one-time implementation, customization and integration fees tied to cloud deployments.
- IT staffing/dispatch: time-and-materials or fixed-fee contracts for engineer placement and project delivery.
- Support & maintenance contracts: recurring renewals for managed services and infrastructure operations.
Rakus Co., Ltd. (3923.T): How It Works
Rakus Co., Ltd. (3923.T) operates as a cloud-first software and IT services provider targeting small and medium-sized enterprises (SMEs). Its business model blends subscription-based cloud applications with an IT Human Resource Business that supplies engineering talent, infrastructure construction and support, producing recurring revenue and high incremental margins.- Primary revenue driver: subscription fees for cloud-based SaaS products (accounting, expense management, HR, electronic invoicing, etc.), sold on a per-user or per-company basis with tiered pricing and add-on modules.
- IT Human Resource Business: staffing/dispatching of IT engineers, server and network construction contracts, and ongoing managed services/support billed on time-and-materials or fixed-fee contracts.
- Professional services & integration: implementation, customization, and training fees tied to cloud deployments and IT projects.
| Metric | Value |
|---|---|
| Trailing Twelve Months Revenue | ¥54.68 billion |
| Trailing Twelve Months Net Income | ¥10.68 billion |
| Gross Margin Profile (Cloud vs Services) | Higher margins on Cloud subscriptions; lower but stable margins on IT Outsourcing |
| Dividend Policy | Annual dividend guidance increased; shareholder returns prioritized alongside reinvestment |
| 2024 Guidance Revision | Upward revision expecting stronger sales and profits driven by Cloud and IT Outsourcing |
| International Expansion | Indonesia subsidiary established in 2025 to expand development base and tap regional talent |
- Recurring subscriptions: predictable monthly/annual billing increases lifetime value and reduces churn sensitivity.
- Usage & modular fees: upsells of additional modules and premium support expand average revenue per customer (ARPC).
- Engineering dispatch and project billing: immediate cash flow from IT Human Resource Business with cross-sell opportunities into cloud products.
- Managed services: ongoing contracts for server/network operation and support create long-term service revenue.
- Scale: ¥54.68 billion TTM revenue demonstrates market traction across cloud and outsourcing segments.
- Profitability: net income of ¥10.68 billion reflects strong operating leverage, driven by subscription economics and efficient service delivery.
- Capital returns: raising annual dividend guidance signals confidence in cash generation and commitment to shareholders.
- Growth outlook: 2024 upward guidance reflects momentum in Cloud and IT Outsourcing; 2025 Indonesia subsidiary expected to open lower-cost development capacity and new regional clients.
Rakus Co., Ltd. (3923.T): How It Makes Money
Rakus Co., Ltd. (3923.T) generates revenue primarily by selling cloud-based SaaS products and subscription services tailored to small and medium-sized enterprises in Japan and now expanding in Southeast Asia. Its offerings span accounting and payroll software, e-invoicing, cloud telephony, electronic contracts, and workflow automation - bundled and cross-sold to increase customer lifetime value. The company's strategic alignment with Japan's national digital transformation initiatives supports steady demand from SMEs modernizing operations.- Primary revenue streams: subscription fees for SaaS products, implementation and onboarding services, transaction-based fees, and enterprise licensing.
- Customer expansion strategy: cross-selling across product suites, usage-based upsells, and channel partnerships with local resellers and integrators.
- Geographic diversification: domestic concentration in Japan with 2025 expansion via a new Indonesian subsidiary to access Southeast Asian markets.
| Metric | Value / Detail |
|---|---|
| Market capitalization (as of 2025-12-12) | ¥378.61 billion |
| CAGR target (FY2022-FY2026) | 31%-32% |
| Net income target (FY2026) | ¥10.0 billion |
| Net assets target (FY2026) | ¥20.0 billion |
| Strategic hires | Chief AI Officer appointed in 2025 |
| International expansion | Indonesia subsidiary established in 2025 |
- Growth levers: product upsell, new customer acquisition in Japan, Southeast Asia expansion (Indonesia), and AI-powered feature monetization.
- Risk mitigants: diversified SaaS product set, recurring revenue model, alignment with government digitalization policies.
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