FY2018 Q2 Financial Results

Transcription

1 Wantedly, Inc. FY2018 Q2 Financial Results 13.Apr.2018

2 FY2018 Q2 Results

3 Overview FY2018 Q2 Consolidated Earnings Results - 61% YoY Revenue Growth ( M) F8/17Q2 F8/18Q1 F8/18Q2 YoY QoQ Revenue % +15.7% - Strong growth in subscription, sames as in Q1 Operating Profit Gradual upward trend in the average unit price - Accelerated spending in Q2 - More marketing expenses for People following Q1 (Margin) -43.5% 6.3% -17.6% - - Recurring Profit (Margin) -43.3% 6.6% -18.3% - - Net Profit (Margin) -38.1% 2.7% -14.7% - - * Figures less than one million yen are rounded. 3

4 Revenue: Quarterly Trend Steady expansion ( M) - Driven by the subscription, which increased new paid clients following Q1 600 Add-ons & Others Subscription Progress of upselling mainly in scouts and an increase in revenue of add-ons F8/16 16/8 Q1 Q2 Q3 Q4 F8/17 17/8 Q1 Q2 Q3 Q4 F8/18 18/8 Q1 Q2 * Consolidated from F8/17 Q3 (non-consolidated until then). * Figures less than one million yen are rounded. 4

5 SG&A: Quarterly Trend Increase in ad spending - Marketing expenses: Commercials on TV in addition to web promotion same as in Q1 - Communications expenses: Increased in relation to both an increase in users and countermeasures against loads of commercials - Personnel expenses: Increase in persons mainly in the business area 0 ( M) Others Marketing (Others) Marketing (W People) System & Comm. Personnel 78 F8/16 Q1 Q2 Q3 Q F8/17 Q1 Q2 Q3 Q4 121 F8/18 Q Q2 * Consolidated from F8/17 Q3 (non-consolidated until then). * Figures less than one million yen are rounded. 5

6 Drivers of Changes in Q2 Operating Profit (YoY) ( M) F8/17 Q2 OP Subscription Add-ons & Others Personnel System & Comm. Marketing (W People) Marketing (Others) Others F8/18 Q2 OP * Comparison between non-consolidated figures in F8/17 and consolidated figures from F8/18. * Figures less than one million yen are rounded. 6

7 Drivers of Changes in Q2 Operating Profit (QoQ) ( M) F8/18 Q1 OP Subscription Add-ons & Others Personnel System & Comm. Marketing (W People) Marketing (Others) Others F8/18 Q2 OP * Figures less than one million yen are rounded. 7

8 Operating Profit & OP Margin: Quarterly Trend Profit decrease resulted from ad spending to People. Profitability is still stable if marketing expenses are excluded. ( M) Operating Profit % 25% 0% 30.9% 26.5% 15.6% 11.6% OPM OPM (ex. Marketing Expenses) 36.7% 34.1% 35.8% 40.0% 36.6% 35.2% 36.5% 39.5% 31.7% 25.6% 18.9% 16.4% 6.3% 0% % -17.6% /8 Q1 Q2 Q3 Q /8 Q1 Q2 Q3 Q4 18/8 Q1 Q2-50% 16/8 Q1 Q2 Q3 Q4-43.5% 17/8 Q1 Q2 Q3 Q4 18/8 Q1 Q2 * Consolidated from F8/17 Q3 (non-consolidated until then). * Figures less than one million yen are rounded. 8

9 Non-financial KPIs: Quarterly Trend MAU and Users MAU rose to 2.2M, and individual users went over 1.1M Companies Steady growth of companies, going over 26,000 ( 000) 2,500 MAU Users ( 000) 30 2,000 1, , /8 Q1 Q2 Q3 Q4 17/8 Q1 Q2 Q3 Q4 18/8 Q1 Q2 0 16/8 Q1 Q2 Q3 Q4 17/8 Q1 Q2 Q3 Q4 18/8 Q1 Q2 9

10 Other Consolidated Financial Data Balance Sheet Cash Flow Statement ( M) F8/17-end F8/18 Q2-end Changes Current assets Cash & equivalents Accounts receivable Others Fixed assets PP&E Others Total assets Liabilities (Current) ( M) F8/17 F8/18 Q1-Q2 Operating cash flow Pretax income Depreciation 13 6 Others 16 9 Investing cash flow Purchases of PP&E -7-6 Others Financing cash flow 0 44 Cash & equivalents (EOP) Equity Shareholders equity Free Cash Flow * Figures less than one million yen are rounded. 10

11 Recent Topics

12 Launched Wantedly AI/Robot Fund (Jan. 2018) The project s aim is to invest in seed-stage companies engaged in technology development/business in the AI and robotics fields. It provides assistance in the creation of companies expanding from Japan to overseas, using technology as the core, in order to increase exciting jobs. 12

13 Number of users of Wantedly People was above 2 million (Feb. 2018) It took about 15 months from its release to obtain 2M users and achieve more than 40M business card scans. 13

14 Number of corporate users was above 1,000 in Singapore (Mar. 2018) It took about 1 year from the start of full services in Singapore to obtain more than 1,000 corporate users. We also offer the services in Hong Kong and Germany. 14

15 New feature that matches clients to users based on values (Apr. 2018) Renewed pages for companies on Wantedly Visit so that the companies can present their most prized values. 15

16 FY2018 Guidance

17 Overview FY2018 Consolidated Earnings Guidance and Current Progress The guidance unchanged - Steady progress in top-line growth - Semiannually recorded loss due to H1- centric ad spending, which falls within the expected range - To seek to achieve the profit plan for the full-year in the second half by adjusting ad postings ( M) F8/18 Q1-Q2 F8/18 Guidance Progress Revenue 933 1, % Operating Profit % (Margin) -6.5% 12.0% - Recurring Profit % (Margin) -6.8% 12.0% - Net Profit % (Margin) -6.6% 8.3% - EPS ( ) % * Figures less than one million yen are rounded. * EPS is equal to net income per share. The company executed a 2:1 stock split of common stocks on December 1, The net income per share on the consolidated earnings forecasts for FY8/18 takes into account effect of the stock split. 17

18 Revenue: Guidance Expect a steady growth ( M) 2,000 1,628 - To further expand the base, increasing both users and companies - To improve the customer response/ 1,500 1,290 marketing system, to gain new paid customers, renewals, and upselling 1, F8/15 F8/16 F8/17 F8/18 Guidance * Non-consolidated in F8/15 and F8/16, consolidated in F8/17 and later. * Figures less than one million yen are rounded. 18

19 SG&A: Guidance Increase mainly in personnel expenses - Personnel expenses: Planned company-wide increase in personnel - Marketing expenses: To be allocated to upfront investment as much as possible, by adjusting the marketing expenses of People" - System & Comm. expenses: Expected to increase according to more users * There are divergences between the progress of cumulative results for F8/18 and expense items, but the company made no review of figures by expense item in the plan as we are set to control of the whole selling and administrative expenses. ( M) 2,000 1,500 1, Others Marketing (Others) Marketing (W People) System & Comm. Personnel F8/15 F8/16 F8/17 F8/18 Guidance * Non-consolidated in F8/15 and F8/16, consolidated in F8/17 and later. * Figures less than one million yen are rounded. 19

20 Drivers of Changes in Operating Profit (YoY): Guidance ( M) * Figures less than one million yen are rounded. 20

21 Operating Profit: Guidance Profit to increase due ( M) 200 Operating Profit (LS) OP Margin (RS) % to revenue growth - Directly contributed by revenue growth due to the high incremental margin % 12.0% 15% - To ensure a certain level of profitability % by controlling upfront investment (ad 64 spending) despite increased fixed cost % 5% % 0% -50 F8/15 F8/16 F8/17 F8/18 Guidance * Non-consolidated in F8/15 and F8/16, consolidated in F8/17 and later. * Figures less than one million yen are rounded. -5% 21

22 Appendix

23 Mission Create a World Where Work Drives Passion 23

24 Users on Wantedly at a glance Advantage in millennials and the growing Web industry Occupation Age 11% 7% 13% 27% 15% 16% 19% 13% Developer Designer Sales Marketing Director Corporate 32% 45%

25 Wantedly Visit - Discover and visit inspiring companies Works to be Exciting - Matching based on empathy with mission and values. - Applicants initially listen to companies. That is, they should not make a marriage proposal immediately but they should first go on a date. Users User Companies Company - Inspiring job offerings go viral by the Recommend" feature on social media. - Companies reach potential job seekers including talents, not being shown in the job market, via social media. 25

26 Wantedly Admin - Admin tool for companies The tool for companies to use for posting jobs to Visit and messaging with applicants Pricing system includes subscription and add-ons incl. direct scout (no success fee) Subscription Pricing (for 6-months Contract) Direct Scout Pricing (for 3-months contract) Trial (30 days) Minimum Lite Standard Basic Plus Premium Monthly Price Free 35k 60k 100k Monthly Price 120k 140k 185k Job Postings 5 unlimited unlimited unlimited Scout Tickets 150 tickets 150 tickets 150 tickets Applications Made Members Can Use Admin Bookmark Scout Direct Scout Message 5 unlimited unlimited unlimited unlimited - - unlimited unlimited tickets (Basic) Users Can Receive Scout 45,000 65, ,000 Re-send - Advanced Filtering - - Detailed Profiles

27 Wantedly People - Business card app Scan smarter. Scan faster. - Scan several business cards received at a time in one shot - Immediately convert the scanned business cards into data and add the data to the contact book - More use, more accurate through machine learning - Additionally provide topics with relationships of exchanging cards Scan 10 Cards at a time Digitize contacts in a flash Discover updates from your network 27

28 Wantedly People - Monetize by the ad field in Topic feature 4 types of Premium/Native Ads Story Ads Tie Up Article Ads Tie Up Video Ads Infeed Ads 28

29 Disclaimer This material contains forward-looking statements that reflect views and assumptions of management at Wantedly, Inc., in light of information currently available with respect to certain future events, including, but not limited to financial projections and business strategies. These forward-looking statements are subject to certain risks and uncertainties, and may differ from actual business performance or results. These results of such forward-looking assumptions cannot be assured. This material does not intend to solicit the sale or purchase of the shares of the company. Your investment decisions should be made at your discretion. This material is the sole property of Wantedly, Inc., and no part of this material may be reproduced or transferred by whatever means, electronic or otherwise, without prior consent. 29