1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
HTCR
Event Date
2022-02-10
IPO Date (Actual)
2022-02-09
Sector
Information Technology
Subsector
IT Services
Offer Range
$5.00
Shares Offered
3M
18.92M
$94.6M
15.9%
Implied Upside vs Midpoint
Description
We are a leading software development company based in Tokyo, Japan. We provide software through two business units. The first business unit includes a customer experience management business that has been in existence for 12 years. Our customer experience management platform (the “CXM Platform”) includes marketing, sales, service and content management systems, as well as other tools and integrations, that enable companies to attract and engage customers throughout the customer experience. We also provide education, services and support to help customers be successful with our CXM Platform. The second business unit is a digital transformation business which provides customers with robotics process automation, process mining and task mining to accelerate the digital transformation of enterprises. We also have an ongoing technology innovation team to develop software that supports the narrow needs of large enterprise customers. We have made significant investments in our sales and marketing efforts globally. As of September 30, 2021, our sales and marketing organization was comprised of 14 employees including our field sales organization, which maintains a physical sales presence in the Japanese software market. Using our go-to-market strategy, we believe we have made significant contributions in Japan and have established a diversified revenue and customer base. As of September 30, 2021, our combined business units (customer experience management business unit and digital transformation business unit) had 819 total customers in Japan, of which 561, or 68.5%, were paying customers and 23 total customers outside Japan, of which one, or 4.3%, was a paying customer. Our 281 non-paying customers were originally paying customers that utilized our paid services but now use a free version of the CXM Platform. There is the potential for non-paying customers to become paying customers again if and when they start utilizing our paid services again. We were incorporated in the State of Delaware on May 18, 2021. We conduct business activities principally through our 97.5%-owned subsidiary, HeartCore Co., Ltd., a Japanese corporation (“HeartCore Co”), which was established in Japan by Sumitaka Yamamoto, our Chief Executive Officer, in 2009 and acquired by us in July 2021. HeartCore Co started out with helping companies effectively managing content with its powerful content management system. Since then, HeartCore Co has expanded offerings to help companies manage all forms of business processes. --- We are currently incorporated and in good standing in the State of Delaware. Our principal executive offices are located at 1-2-33, Higashigotanda, Shinagawa-ku, Tokyo, Japan, and our telephone number is +81-3-6409-6966. Our website address is www.heartcore.co.jp.
HeartCore Enterprises, Inc. annual income statement and balance sheet, FY 2022 to FY 2025, as reported in SEC filings.
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Revenue | $8.8M | — | $22.7M | $9.0M |
| Gross profit | $3.4M | — | $14.7M | $3.2M |
| Operating income | ($6.7M) | — | ($162K) | ($3.1M) |
| Net income | ($6.7M) | — | ($1.5M) | $5.8M |
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Total assets | $12.1M | — | $14.0M | $13.1M |
| Total liabilities | $7.3M | — | $10.5M | $5.8M |
| Total equity | $4.8M | $7.7M | $3.5M | $7.3M |
| Cash & equivalents | $7.2M | — | $2.0M | $2.0M |