Technology

TERAGO Reports Fourth Quarter and Full Year 2024 Financial Results

Published

4 days ago

March 27, 2025

TORONTO, March 26, 2025 /CNW/ – TERAGO Inc. (“TERAGO” or the “Company”) (TSX: TGO) (https://terago.ca/), Canada’s 91% mmWave spectrum holder and a leading provider of Managed Fixed Wireless Internet, 5G Private Wireless Networks and SD-WAN solutions today reported financial and operating results for the fourth quarter and fiscal year ended December 31, 2024. All figures reported in this release are in thousands of Canadian dollars.

The Company announced positive performance for the fourth quarter and fiscal 2024, demonstrating the ongoing success of its smart growth strategy and operational enhancements. TERAGO has achieved strong fiscal 2024 results, including a 16.9% (Q4, 2024 – 0.9%) rise in Adjusted EBITDA, a 5.2% (Q4, 2024 – 4.1%) growth in ARPA, and a year over year increase of approximately $4,492 in cash flows from operations.

“TERAGO is a critical player in the Canadian communications landscape driving competition, innovation and investments. We are uniquely focused on mid-market and lower enterprise sized businesses leveraging our national carrier grade wireless and fibre network.”, said Daniel Vucinic, CEO of TERAGO. “We have experienced improved profitability, lower operational expenses, better margin profile on new customer deals, and a more streamlined approach to capital investments. With growing demand for our services, supported by a diverse range of network solutions, we expect continued momentum in MRR bookings, contributing to long-term value creation for all our stakeholders.”

Selected Financial Highlights and Key Developments

Total revenues for the quarter ended December 31, 2024 increased by 0.6% to $6,572 compared to $6,536 for the same period in 2023. For the year ended December 31, 2024, total revenue marginally increased by 0.4% to $26,165 compared to $26,052 for the same period in 2023. The increase in revenue in both periods is a result of higher bookings1, higher ARPA1 and lower churn1 as compared to prior year periods.Adjusted EBITDA1,2 increased by 0.9% to $1,201 for the quarter ended December 31, 2024, compared to $1,190 for the same period in 2023. For the year ended December 31, 2024, Adjusted EBITDA1,2 increased 16.9% to $4,016 compared to $3,435 for the same period in 2023. The increase was a result of lower operating expenses partially offset by increased finance costs related to existing debt facility as compared prior year periods.Net loss for the quarter ended December 31, 2024 was $3,174, or $(0.16) per share (basic and diluted) compared to a net loss of $3,561, or $(0.18) per share (basic and diluted) for the same period in 2023. The lower net loss in the quarter was a combination of higher margins and overall lower salaries and operating expenses, partially offset by higher finance costs, as a result of additional drawdowns from the existing debt facility. For the year ended December 31, 2024 net loss was $13,271, or $(0.67) per share (basic and diluted) compared to a net loss of $13,185, or $(0.67) per share (basic and diluted) for the same period in 2023. The increase in net loss was primarily resulting from higher finance costs, partially offset by a reduction in overall operating expenses year over year.ARPA1 for the connectivity business for the quarter ended December 31, 2024 increased by 4.1% to $1,212 up from $1,164 for the same period in 2023. For the year ended December 31, 2024, ARPA1 increased by 5.2% to $1,184 compared to $1,125 for the same period in 2023 resulting from changes in customer base and product mix.Churn1 for the connectivity business for the quarter ended December 31, 2024, decreased to 0.8% compared to 1.0% for the same period in 2023. Churn1 for the connectivity business for the year ended December 31, 2024, decreased to 0.9% compared to 1.1% for the same period in 2023. The decrease in customer churn1 was due to the continued execution of the Company’s value creation strategy to focus on mid-market and enterprise customers, as well as implementing new strategies for customer renewals and retention.Backlog MRR1 increased year over year to $111,905 as of December 31, 2024, from $65,363 for the same period in 2023. The increase in backlog MRR1 is the result of increase in sales bookings along with Company’s continued focus on larger multisite customer deals and on profitable revenue generation.In May 2024, ISED published Decision on the Licensing Process for Existing Licensees in the 24 and 38 GHz Bands and Considerations Related to the mmWave Auction. As a result of this decision, TERAGO retains all existing licences and those licences will be renewed annually until a new licensing process is established.The Company’s sales pipeline continues to expand, with notable recent wins, including a multi-million-dollar contract with a national retailer, as announced in November 2024, which will yield revenue in the coming year.

_____________________________________

(1) See ” Non-IFRS Measures”

(2) (2) See “Adjusted EBITDA” for a reconciliation of net loss to Adjusted EBITDA.

RESULTS OF OPERATIONS

Comparison of the quarter and year ended December 31, 2024 and 2023
(In thousands of dollars, except with respect to gross profit margin1, earnings per share1, Backlog MRR1, and ARPA1)

(in thousands of dollars, unaudited)

Quarter ended December 31

Year ended December 31

2024

2023

% Chg

2024

2023

% Chg

Financial

Total Revenue

6,572

6,536

0.6

26,165

26,052

0.4

Cost of Services1

1,703

1,801

(5.4)

6,981

6,948

0.5

Gross Profit Margin1

74.1 %

72.4 %

2.3

73.3 %

(0.0)

Salaries and Related Costs1

2,542

2,465

3.1

10,437

10,563

(1.2)

Other Operating Expenses1

1,126

1,080

4.2

4,731

5,106

(7.3)

Adjusted EBITDA1,2

1,201

1,190

0.9

4,016

3,435

16.9

Net Loss

(3,174)

(3,561)

(10.9)

(13,271)

(13,185)

0.7

Basic & diluted loss per share

(0.16)

(0.18)

(11.6)

(0.67)

(0.1)

Quarter ended December 31

Year ended December 31

2024

2023

Chg

2024

2023

Chg

Operating

Backlog MRR1

Connectivity

111,905

65,363

46,542

111,905

65,363

46,542

Churn Rate1

Connectivity

0.8 %

1.0 %

-0.2 %

0.9 %

1.1 %

-0.2 %

ARPA1

Connectivity

1,212

1,164

4.1 %

1,184

1,125

5.2 %

____________________________________

(1) See ” Non-IFRS Measures”

(2) See “Adjusted EBITDA” for a reconciliation of net loss to Adjusted EBITDA.

Conference Call

Management will host a conference call on Thursday, March 27, 2025, at 10:00 AM ET to discuss these results.

To access the conference call, please dial 888-506-0062 or 973-528-0011 and use conference ID 851226 if applicable. Please call the conference telephone number 15 minutes prior to the start time so that you are in the queue for an operator to assist in registering and patching you through.

An archived recording of the conference call will be available through Tuesday, April 10, 2025. To listen to the recording, call 877-481-4010 or 919-882-2331 and enter passcode 52183# if applicable.

(1) Non-IFRS Measures

This press release contains references to “Cost of Services”, “Gross Profit Margin”, Salaries and Related Costs”, “Other Operating Expenses”, “Adjusted EBITDA”, “Backlog MRR”, “Churn” and “ARPA” which are not measures prescribed by International Financial Reporting Standards (IFRS).

Cost of Services consists of expenses related to delivering service to customers and servicing the operations of our networks. These expenses include costs for the lease of intercity facilities to connect our cities, internet transit and peering costs paid to other carriers, network real estate lease expense, spectrum lease expenses, salaries and related costs of staff directly associated with the cost of services.

Gross Profit Margin % consists of gross profit margin divided by revenue where gross profit margin is revenue less cost of services.

Salaries and related costs includes regular payroll related expenses, commissions and consulting fees. All share based compensation, restructuring, other related costs are excluded from Salaries and related costs.

Other operating expenses includes sales commission expense, advertising and marketing expenses, travel expenses, administrative expenses including insurance and professional fees, communication expenses, maintenance expenses and rent expenses for office facilities. All restructuring and other related costs are excluded from other operating expenses.

Adjusted EBITDA – The Company believes that Adjusted EBITDA is useful additional information to management, the Board and investors as it provides an indication of the operational results generated by its business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and amortization and it excludes items that could affect the comparability of our operational results and could potentially alter the trends analysis in business performance. Excluding these items does not necessarily imply they are non-recurring, infrequent or unusual. Adjusted EBITDA is also used by some investors and analysts for the purpose of valuing a company. The Company calculates Adjusted EBITDA as earnings before deducting interest, taxes, depreciation and amortization, foreign exchange gain or loss, finance costs, finance income, gain or loss on disposal of network assets, property and equipment, impairment of property, plant & equipment and intangible assets, stock-based compensation and restructuring costs. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to operating earnings (losses), or net earnings (losses) determined in accordance with IFRS as an indicator of our financial performance or as a measure of our liquidity and cash flows. Adjusted EBITDA does not take into account the impact of working capital changes, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed in the consolidated statements of cash flows.

A reconciliation of net loss to Adjusted EBITDA is found below and in the MD&A for the quarter and year ended December 31, 2024. Adjusted EBITDA does not have any standardized meaning under IFRS/GAAP. TERAGO’s method of calculating Adjusted EBITDA may differ from other issuers and, accordingly, Adjusted EBITDA may not be comparable to similar measures presented by other issuers.

The table below reconciles net loss to Adjusted EBITDA for the quarter and year ended December 31 2024 and 2023.

(in thousands of dollars, unaudited)

Quarter ended December 31

Year ended December 31

2024

2023

2024

2023

Adjusted EBITDA1

1,201

1,190

4,016

3,435

Deduct:

Depreciation of network assets, property and equipment
and amortization of intangible assets

2,363

2,577

9,605

10,354

Stock-based compensation expense

236

227

863

590

Restructuring and other costs

804

701

2,171

Loss from operations

(1,463)

(2,418)

(7,153)

(9,680)

Add/deduct:

Foreign exchange gain

145

(24)

180

(7)

Finance costs

(1,895)

(1,154)

(6,459)

(3,707)

Finance income

161

209

Net loss for the period

(3,174)

(3,561)

(13,271)

(13,185)

Backlog MRR – The term “Backlog MRR” is a measure of contracted monthly recurring revenue (MRR) from customers that have not yet been provisioned. The Company believes backlog MRR is useful additional information as it provides an indication of future revenue. Backlog MRR is not a recognized measure under IFRS and may not translate into future revenue, and accordingly, investors are cautioned in using it. The Company calculates backlog MRR by summing the MRR of new customer contracts and upgrades that are signed but not yet provisioned, as at the end of the period. TERAGO’s method of calculating backlog MRR may differ from other issuers and, accordingly, backlog MRR may not be comparable to similar measures presented by other issuers.

ARPA – The term “ARPA” refers to the Company’s average revenue per account per month in the period. The Company believes that ARPA is useful supplemental information as it provides an indication of our revenue from an individual customer on a per month basis. ARPA is not a recognized measure under IFRS and, accordingly, investors are cautioned that ARPA should not be construed as an alternative to revenue determined in accordance with IFRS as an indicator of our financial performance. The Company calculates ARPA by dividing our total revenue before revenue from early terminations by the number of customers in service during the period and we express ARPA as a rate per month. TERAGO’s method of calculating ARPA has changed from the Company’s past disclosures to exclude revenue from early termination fees, where ARPA was previously calculated as revenue divided by the number of customers in service during the period. TERAGO’s method may differ from other issuers, and accordingly, ARPA may not be comparable to similar measures presented by other issuers.

Churn – The term “churn” or “churn rate” is a measure, expressed as a percentage, of customer cancellations in a particular month. The Company calculates churn by dividing the number of customer cancellations during a month by the total number of customers at the end of the month before cancellations. The information is presented as the average monthly churn rate during the period. The Company believes that the churn rate is useful supplemental information as it provides an indication of future revenue decline and is a measure of how well the business is able to renew and keep existing customers on their existing service offerings. Churn and churn rate are not recognized measures under IFRS and, accordingly, investors are cautioned in using it. TERAGO’s method of calculating churn and churn rate may differ from other issuers and, accordingly, churn may not be comparable to similar measures presented by other issuers.

_____________________________

(1) See ” Non-IFRS Measures”

About TERAGO
TERAGO provides managed network and security services to businesses across Canada ensuring highly secure, reliable, and redundant connectivity including private 5G wireless networks, Fixed Wireless access, fiber, and cable wireline network connectivity. As Canada’s biggest mmWave spectrum holders, the Company possesses spectrum licenses in the 24 GHz and 38 GHz spectrum bands, which it utilizes to provide secure, dedicated SLA guaranteed enterprise grade performance that is technology diverse from buried cables ensuring high availability connectivity services. TERAGO serves over 1,800 Canadian and Global businesses operating in major markets across Canada, including Toronto, Montreal, Calgary, Edmonton, Vancouver, Ottawa and Winnipeg, and has been providing wireless services since 1999. For more information about TERAGO and its suite of wireless internet and SD-WAN solutions, please visit www.terago.ca.

Forward-Looking Statements
This news release includes certain forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond TERAGO’s control. Forward-looking statements may include but are not limited to statements regarding the further developing our 5G Fixed Wireless Access program, consistently executing across all fronts of the business, success in providing Canadian enterprises with managed services and the 5G fixed wireless trials being conducted by the Company. All such statements constitute “forward-looking information” as defined under, applicable Canadian securities laws. Any statements contained herein that are not statements of historical facts constitute forward-looking information. The forward-looking statements reflect the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including those risks set forth in the “Risk Factors” section in the Annual Information Form for the year ended December 31, 2024 and risks set forth in the “Financial Risk Management” section in the annual MD&A of the Company for the year ended December 31, 2024 available on www.sedarplus.com and under the Company’s corporate profile. Factors that could cause actual results or events to differ materially include the inability to consistently achieve sales growth across all lines of TERAGO’s business including managed services, inability to complete successful 5G technical trials, the results of the 5G trials not being satisfactory to TERAGO or any of its technology partners, regulatory requirements may delay or inhibit the trial, the economic viability of any potential services that may result from the trial, the ability for TERAGO to further finance and support any new market opportunities that may present itself, and industry competitors who may have superior technology or are quicker to take advantage of 5G technology. Accordingly, readers should not place undue reliance on forward-looking statements as several factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed with the forward-looking statements. Except as may be required by applicable Canadian securities laws, TERAGO does not intend, and disclaims any obligation, to update or revise any forward-looking statements whether in words, oral or written as a result of new information, future events or otherwise.

SOURCE TeraGo Inc.

Technology

Li-S Energy collaborates with Kea Aerospace to power high altitude UAV flights

Published

4 minutes ago

March 30, 2025

SYDNEY, March 30, 2025 /PRNewswire/ — Li-S Energy (ASX:LIS) (‘Li-S’ or ‘the Company’) has signed a collaboration agreement with Kea Aerospace (Kea) to integrate Li-S’ advanced lithium sulfur battery technology into Kea’s high altitude UAVs targeting multi-month flight times.

The partnership was signed and unveiled at the Avalon International Airshow outside of Melbourne, where Li-S is an exhibitor. The collaboration will see Li-S’ battery technology integrated into Kea’s high-altitude UAVs, significantly enhancing flight endurance and operational efficiency. The Kea Aerospace media release is attached to this announcement.

Li-S’ collaboration with Kea is consistent with the Company’s strategy to target the rapidly growing markets of drones, defence and electric aviation. Kea has partnered with Li-S because its cutting-edge lithium sulfur battery technology offers significant weight savings and energy density, which are both critical to maximise UAV flight times and payload.

Kea High Altitude UAVs

Founded in New Zealand in 2018, Kea is currently flight-testing its aircraft in the stratosphere, between 55,000 and 65,000 feet. Its solar-powered Kea ‘ATMOS’ aircraft operates as a High Altitude Platform Station (HAPS) and High Altitude Long Endurance (HALE) aircraft. The drone gathers high-resolution aerial imagery and persistent video data for applications such as maritime awareness, environmental monitoring and disaster response, plus a broad range of other commercial use cases such as supporting telecommunications services. The potential for stratospheric HAPS aircraft capable of multi-month flight durations is substantial with Kea at the cutting edge of this global industry. The competitive benefits are compelling as HAPS offer far lower costs than satellites, greater persistence than conventional aircraft, and far greater control compared to un-steerable balloons.

Li-S collaboration

Li-S’ collaboration with Kea will focus on incorporating the Company’s ultra-light lithium sulfur battery cells and Li-S BMS technology into a Kea battery pack design, with ground testing expected in 2025 followed by flight testing.

The program objective will be to demonstrate the technology and integration in the 12.5 metre wingspan ATMOS Mk1 aircraft, followed by integration into the ATMOS Mk2 design, which will be capable of continuous flight for several months.

In ATMOS Mk2 the aircraft motors will cycle between power from the battery at night and solar cells during the day (with excess solar power also recharging the battery). Weight is absolutely critical for HAPS platforms. Having a battery with higher energy density prolongs flight time, improves payload capacity and can increase the geographic extent of operations, both in latitude and for operation in seasons with less daylight hours.

Dr Lee Finniear, CEO, commented:

“Our initial focus on the drone, defence and electric aviation markets is producing incredible opportunities for Li-S Energy. The stratospheric UAV market is a key sector of interest with enormous commercial potential. Partnering with Kea Aerospace positions us to engage at the cutting edge of this sector. Given the paramount importance of weight and reliability to Kea’s ATMOS line of stratospheric UAVs, their decision to collaborate with Li-S highlights how far advanced our battery technology is ahead of many of our competitors. We look forward to the testing program being undertaken in 2025, and to becoming a key technology partner of Kea’s as it delivers high performance, multi-month HAPS aircraft platforms to the global market.”

Dr Mark Rocket, Kea’s CEO noted:

“This announcement of our collaboration with Li-S at the Avalon International Airshow, one of the most prestigious airshows globally, speaks to how significantly we view our new partnership. Li-S’ next generation lithium-sulfur battery offers more than twice the energy density of conventional lithium-ion batteries, while being greener due to the absence of key materials such as cobalt. This year promises to be a pivotal year for Kea as we develop our ATMOS Mk2 aircraft and the successful integration of Li-S battery technology into our ATMOS UAVs would give us an incredible competitive advantage in an industry where the commercial applications are vast.”

About Li-S Energy

Li-S Energy is an Australian company at the forefront of next-generation battery innovation, developing lithium-sulfur and lithium-metal cells that offer more than twice the energy density of conventional lithium-ion. With a strong research foundation and a commitment to sustainability, the company leverages cutting-edge IP and nanomaterials like BNNTs and Li-Nanomesh™ to enhance performance, safety, and longevity. Li-S Energy aims to revolutionise energy storage for aviation, drones, defence, and beyond – delivering lighter, more efficient energy solutions for advanced applications where weight is critical.

About Kea Aerospace

The company is based in Christchurch, New Zealand. Our vision is to be the world-leader in stratospheric flight operation and data collection and we’re on a mission to create insights from the stratosphere that will improve life on our planet.

View original content to download multimedia:https://www.prnewswire.com/news-releases/li-s-energy-collaborates-with-kea-aerospace-to-power-high-altitude-uav-flights-302415144.html

SOURCE Li-S Energy

Technology

Roborock Unveils Groundbreaking Saros Series in Australia

Published

1 hour ago

March 30, 2025

Featuring World-First Robotic Arm Technology and Smarter, Slimmer Cleaning for Aussie Homes

SYDNEY, March 31, 2025 /PRNewswire/ — Roborock, a global leader in ultra-intelligent home robotics, today announced the arrival of its revolutionary Saros Series in Australia, featuring three cutting-edge models designed to set a new benchmark in home cleaning: the flagship Saros 10, the Saros 10R, and the robotic-arm-powered Saros Z70.

The Saros Series debuts as Roborock’s most advanced cleaning lineup yet –combining AI-driven navigation, ultra-powerful suction, and first-of-its-kind robotic arm technology – to offer Australians smarter, more precise, and more efficient cleaning solutions tailored for modern living.

“We’ve spent the past 11 years listening to our customers – what they love, what slows them down, and what they wish their smart home helper could do better,” said Richard Chang, Founder & CEO of Roborock. “The Saros Series is the result of that feedback. From robots getting stuck under couches to mops dragging dampness across carpets, we’ve addressed it all. Whether it’s the Saros Z70 picking up small items off the floor, the Saros 10 gliding under low-clearance furniture, or the Saros 10R navigating cluttered spaces with AI smarts, each model is built to remove friction from your daily routine.”

Roborock Saros Z70: The World’s First Robotic Home Assistant with OmniGrip
Headlining the series is the Saros Z70, the world’s first* mass-produced robotic vacuum featuring OmniGrip – a five-axis robotic arm designed to lift and remove everyday obstacles like socks, towels, and even sandals under 300g**. This means no more pre-cleaning prep. The robotic arm integrates seamlessly with StarSight™ Autonomous System 2.0, an AI-powered navigation platform that recognizes up to 108 different obstacles and intelligently charts its cleaning path with a 21x higher sampling frequency than traditional LDS systems.

With 22,000 Pa suction power, Dual Spinning Mops, and VertiBeam™ Lateral Obstacle Avoidance, the Saros Z70 offers an unrivaled deep clean with a robot vacuum body height at 7.98cm – while also packing pet-friendly features like live video monitoring and pet zone detection.

Roborock Saros 10: Slim, Smart, and Seriously Powerful
At just 7.98cm thin, the Saros 10 is engineered to glide under furniture with ease—delivering a powerful clean without compromise. It debuts RetractSense™ Navigation, featuring a retractable LDS module and 100-degree Wide-Angle Vision for unparalleled spatial awareness. Coupled with Reactive AI 3.0, VertiBeam™, and a 22,000 Pa HyperForce® suction system, the Saros 10 sets a new standard for ultra-thin vacuums.

The Saros 10 also introduces VibraRise™ 4.0 mopping technology with an auto mop removal function. The mopping system is enhanced with dual sonic vibration zones and 8N of downward pressure, to tackle even the toughest stains. Its RockDock® Ultra 2.0 supports 80°C hot water mop washing, 60°C hot air mop drying, and 2.5-hour fast charging, delivering a hands-free and hygienic cleaning experience.

Roborock Saros 10R: AI-Powered Intelligence in a Slim Profile
The Saros 10R delivers flagship performance in Roborock’s slimmest robot body to date. Replacing the traditional LDS module with StarSight™ Autonomous System 2.0, the Saros 10R boasts real-time mapping via AI-powered dual-light 3DToF and RGB cameras. It recognises up to 108 different obstacles and maneuvers around obstacles along its way – making it ideal for households with kids, pets, and cluttered spaces.

With 19,000 Pa suction power, dual spinning mops, and a certified dual anti-tangle system, the Saros 10R is both powerful and low-maintenance. Its Multifunctional Dock 4.0 brings hot water mop washing, auto mop removal, smart charging, and full-fledge of self-maintenance features into the mix.

Built for Australian Homes
Saros Series models are compatible with the Roborock SmartPlan® 2.0 via the Roborock App, enabling AI-driven customisation of cleaning settings, schedules, and routines. While also featuring smart home support, compatible with Apple Siri, Amazon Alexa, Google Home, Apple Watch and the Matter protocol in the future.

Pricing and Availability

The Roborock Saros Series – comprising the Saros Z70, Saros 10, and Saros 10R – will be available in Australia from today at leading Australian retailers across Roborock Australia’s official retail channels, such as Roborock’s Official Online Store and other Participating Authorised Retailers.

Roborock Saros Z70 – RRP: $3,999 AUD, available to pre-order now on Roborock’s Official Online Store.Roborock Saros 10 – RRP: $2,999 AUD, available now.Roborock Saros 10R – RRP: $2,899 AUD, available from May 2025.

ENDS

About Roborock 
Roborock is a leading smart cleaning brand renowned for its intelligent cleaning solutions. With a steadfast dedication to becoming a global leading smart appliance player, Roborock enriches lives with its innovative line of robotic, cordless, wet/dry vacuum cleaners, and washer-dryers. Rooted in a user-centric approach, our R&D-driven solutions cater to diverse cleaning needs in over 15 million homes across 170+ countries. Headquartered in Beijing and with strategic subsidiaries in key markets, including the United States, Japan, the Netherlands, Poland, Germany, and South Korea, Roborock is dedicated to elevating its market presence worldwide. For more information, visit https://au.roborock.com/.

*Roborock was the first in the robotic vacuum industry to mass-produce this technology, launching it in January 2025.

**Based on internal testing carried out by the manufacturer. Actual results may vary due to environmental factors and software updates.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/roborock-unveils-groundbreaking-saros-series-in-australia-302414319.html

SOURCE Roborock

Technology

Patent Index 2024: Japan ranks 3rd in European patent applications

Published

1 hour ago

March 30, 2025

European Patent Office received nearly 200 000 patent applications last year, with Japanese companies and inventors filing 10.6% of the total Electrical machinery/energy, transport and computers are leading technology fields for Japanese inventions Tokyo 1st in global city ranking Sony Group is among the EPO’s Top 10 applicant companies Four Japanese companies among the EPO’s Top 25 applicants worldwide.

MUNICH and TOKYO, March 31, 2025 /PRNewswire/ — According to the latest Patent Index 2024, published today by the European Patent Office (EPO), Japan ranked third worldwide, following the United States and Germany. In 2024, Japanese companies and inventors filed a total of 21,062 patent applications, accounting for 10.6% of all filings at the EPO. While this represents a 2.4% decrease compared to 2023, Japan remains a powerhouse in technological advancements. Overall, the EPO received 199,264 patent applications worldwide last year, maintaining a steady level of patenting activity comparable to 2023 (199,452 applications), following three years of significant growth.

“Despite political and economic uncertainties, companies and inventors from around the world filed a high number of patents last year, underlining their technological prowess and their continued investment in R&D,” said EPO President António Campinos. “The EPO’s patent data is a clear roadmap for industry, policy, and investment priorities – tracking global innovation trends and offering insights into European patent application activity across industries and regions.”

Japanese companies excel across key technological sectors

Japanese companies remain leaders in multiple high-growth industries. Japan’s leading field for European patent applications, electrical machinery, apparatus, energy, saw a total of 2,077 Japanese patent applications, an 8.4% increase compared to 2023. In the area of battery technologies (an important sub-field of electrical machinery), Japanese companies filed 20% more patent applications at the EPO in 2024 compared to 2023. Japan’s second most important field, transport – which covers automotive, aircraft/aerospace and rail technologies, also experienced growth from Japan, with 1,357 applications, marking a 3.7% rise. The number 3 field was computer technology, with Japanese companies filing 20% more patent applications in several AI-related sub-fields..

Sony Group among the Top 10 in patent applications in Europe

Four Japanese companies ranked among the top 25 patent filers at the EPO. Sony Group led the way with 1,307 applications, securing the 9th position worldwide, up from 10th in 2023. It was followed by Panasonic with 990 filings, Canon with 760 applications, while Hitachi contributed 653. Sony was no. 7 applicant overall at the EPO in computer technology. 13th in measurement and 14th in digital communication. Toyota also made significant strides, ranking no. 4 for vehicle technology (an important sub-field of transport) and second in electric propulsion (electric vehicle) technology, with a notable 12.7% increase in patent applications compared to the previous year.

Japan also showed continued strength in innovation in battery technologies; in the battery-related sub-field of electrical machinery, apparatus, and energy, Japan placed three companies in the global top 10: Panasonic (4th place, 279 patents), Prime Planet Energy (8th place, 85 patents), and Toyota Motor(10th place).

Tokyo 1st in city ranking: Japan’s innovation hub and leading patent contributor

The Tokyo metropolitan area plays a pivotal role in driving Japan’s global technological presence, and it is Japan’s leading prefecture with a total of 11,592 patent applications at the EPO.. Tokyo is also the second largest region worldwide for European patent filings at the EPO, behind the US state of California and ahead of Guangdong (CN), Île-de-France (FR) and Bavaria (DE). Tokyo also leads the worldwide city ranking at the EPO. Its dominance in patent filings spans a diverse range of industries, including electronics, AI, clean energy, and mobility solutions. Following Tokyo, Osaka ranks second among prefectures, with 2,979 patent applications, while Aichi takes third place with 1,447 applications, marking an impressive 21.9% growth.

Unitary Patent gains in popularity in its second year

The Unitary Patent system, launched in 2023, continues to gain momentum, offering innovators from around the world simpler and more accessible patent protection across 18 EU Member States with a single request to the EPO. Unitary protection was requested for 25.6% of all European patents granted by the EPO in 2024 totalling over 28,000 requests. Patentees from EPO member states had the highest uptake rate, with 36.5% of their European patents transformed into Unitary Patents, followed by those from Republic of Korea (18.9%), China (17.9%), the US (16.0%), and Japan (7.9%, up from 4.9% in 2023).

Further information

View the Patent Index 2024 in fullExplore and customise statistics in our Statistics & Trends CentreAccess Unitary Patent statistics via our dedicated dashboard Download datasets (MS Excel) in the Download data section of our statistics pageCheck patent trends on the go with the EPO Data Hub mobile appRead studies on innovation trends at the Observatory on Patents and Technology EPO’s support for SMEs, universities, non-profit organisations and other smaller applicants

Official hashtag: #EPOPatentIndex

About the EPO
With 6 300 staff members, the European Patent Office (EPO) is one of the largest public service institutions in Europe. Headquartered in Munich with offices in Berlin, Brussels, The Hague and Vienna, the EPO was founded with the aim of strengthening co-operation on patents in Europe. Through the EPO’s centralised patent granting procedure, inventors are able to obtain high-quality patent protection in up to 45 countries, covering a market of some 700 million people. The EPO is also the world’s leading authority in patent information and patent searching.

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