HeartCore Shifts its CMS Licensing Contracts to Drive Longer and Increased Sales Contracts

NEW YORK and TOKYO, Oct. 22, 2024 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or “the Company”), a leading enterprise software and data consulting services company based in Tokyo, announced a strategic shift from annual contracts to multi-year agreements around its core software business contracts.

Since achieving profitability across its software business in Q1 2024, HeartCore has maintained a strong focus on its sales and marketing strategies to drive growth and sustain positive momentum. By September 2024, the Company tripled its new customer acquisition count while also reporting a fivefold increase in contract extensions from its existing customer base, both on a year-over-year basis.

Building on this momentum, HeartCore has adopted a strategic shift to proposing multi-year agreements that provide customers with more comprehensive, long-term support while helping each client establish a robust CMS infrastructure. Additionally, the Company plans to introduce maintenance and support services bundled into these multi-year contracts. By expanding the scope of work and providing ongoing, in-depth support, HeartCore seeks to generate recurring revenue streams, positioning itself for sustained profitability.

“Effectively managing costs within our software business has been a key priority, and now, as part of our ongoing efforts to optimize financial performance, we are making a strategic shift towards multi-year contracts,” said HeartCore CEO Sumitaka Kanno. “This approach introduces a new, predictable stream of recurring revenue, which will play a pivotal role in enhancing our margin profile. We are already seeing encouraging signs of profitability within this arm, and we believe this shift will help position us for sustained growth and success. We remain committed to optimizing our sales and marketing efforts to continue delivering strong results for future quarters ahead.”

About HeartCore Enterprises, Inc.
Headquartered in Tokyo, Japan, HeartCore Enterprises is a leading enterprise software and consulting services company. HeartCore offers Software as a Service (SaaS) solutions to enterprise customers in Japan and worldwide. The Company also provides data analytics services that allow enterprise businesses to create tailored web experiences for their clients through best-in-class design. HeartCore’s customer experience management platform (CXM Platform) includes marketing, sales, service and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. HeartCore also operates a digital transformation business that provides customers with robotics process automation, process mining and task mining to accelerate the digital transformation of enterprises. HeartCore’s GO IPOSM consulting services helps Japanese-based companies go public in the U.S. Additional information about the Company's products and services is available at https://heartcore-enterprises.com/.

Forward-Looking Statements
All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believed,” “intend,” “expect,” “anticipate,” “plan,” “potential,” “continue,” or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks, and uncertainties are discussed in HeartCore’s filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond HeartCore’s control which could, and likely will materially affect actual results, and levels of activity, performance, or achievements. Any forward-looking statement reflects HeartCore’s current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. HeartCore assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The contents of any website referenced in this press release are not incorporated by reference herein.

HeartCore Investor Relations Contact:
Gateway Group, Inc.
Matt Glover and John Yi
HTCR@gateway-grp.com
(949) 574-3860