Wantedly, Inc. FY2018 Q2 Financial Results 13.Apr.2018
FY2018 Q2 Results
Overview FY2018 Q2 Consolidated Earnings Results - 61% YoY Revenue Growth ( M) F8/17Q2 F8/18Q1 F8/18Q2 YoY QoQ Revenue 310 433 500 +61.3% +15.7% - Strong growth in subscription, sames as in Q1 Operating Profit -135 27-88 - - - 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 -134 28-92 - - (Margin) -43.3% 6.6% -18.3% - - Net Profit -118 12-73 - - (Margin) -38.1% 2.7% -14.7% - - * Figures less than one million yen are rounded. 3
Revenue: Quarterly Trend Steady expansion ( M) - Driven by the subscription, which increased new paid clients following Q1 600 Add-ons & Others Subscription 500 - Progress of upselling mainly in scouts and an increase in revenue of add-ons 400 200 172 63 109 194 71 123 225 78 147 250 85 165 254 74 180 310 122 188 346 140 206 379 139 241 433 149 283 168 333 0 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
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) 600 400 200 Others Marketing (Others) Marketing (W People) System & Comm. Personnel 78 F8/16 Q1 Q2 Q3 Q4 81 91 102 F8/17 Q1 Q2 Q3 Q4 121 F8/18 Q1 125 71 15 50 77 23 55 62 68 85 23 44 20 31 34 29 11 16 21 31 26 11 13 17 98 109 110 122 52 58 71 71 75 46 15 244 21 19 112 29 256 Q2 * Consolidated from F8/17 Q3 (non-consolidated until then). * Figures less than one million yen are rounded. 5
Drivers of Changes in Q2 Operating Profit (YoY) ( M) 150 100 50 +46-47 0-50 -135 +144-25 -13-14 -45-88 -100-150 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
Drivers of Changes in Q2 Operating Profit (QoQ) ( M) 150 100 50 +49 +18-12 -12 0 27-144 -50-88 -100-10 -5-150 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
Operating Profit & OP Margin: Quarterly Trend Profit decrease resulted from ad spending to People. Profitability is still stable if marketing expenses are excluded. ( M) 150 100 50 0 27 23 71 0 Operating Profit 48 89 62 27 50% 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% -50-100 -88-25% -17.6% -150 16/8 Q1 Q2 Q3 Q4-135 17/8 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
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 1,500 20 1,000 10 500 0 16/8 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
Other Consolidated Financial Data Balance Sheet Cash Flow Statement ( M) F8/17-end F8/18 Q2-end Changes Current assets 618 657 +40 Cash & equivalents 465 451-14 Accounts receivable 90 132 +42 Others 63 74 +12 Fixed assets 218 219 +1 PP&E 63 64 +1 Others 155 155-0 Total assets 836 876 +40 Liabilities (Current) 351 410 +59 ( M) F8/17 F8/18 Q1-Q2 Operating cash flow 88-48 Pretax income 59-63 Depreciation 13 6 Others 16 9 Investing cash flow -58-7 Purchases of PP&E -7-6 Others -51-1 Financing cash flow 0 44 Cash & equivalents (EOP) 465 451 Equity 485 467-18 Shareholders equity 487 470-17 Free Cash Flow 30-55 * Figures less than one million yen are rounded. 10
Recent Topics
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
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
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
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
FY2018 Guidance
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 1,628 57.3% Operating Profit -61 195-31.3% (Margin) -6.5% 12.0% - Recurring Profit -63 195-32.5% (Margin) -6.8% 12.0% - Net Profit -62 134-45.9% (Margin) -6.6% 8.3% - EPS ( ) -6.75 14.69-45.9% * 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, 2017. The net income per share on the consolidated earnings forecasts for FY8/18 takes into account effect of the stock split. 17
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 1,000 840 500 451 0 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
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 1,000 500 0 Others Marketing (Others) Marketing (W People) System & Comm. Personnel 285 345 F8/15 F8/16 F8/17 F8/18 Guidance 75 337 119 117 151 150 57 27 353 152 226 469 70 71 218 606 * Non-consolidated in F8/15 and F8/16, consolidated in F8/17 and later. * Figures less than one million yen are rounded. 19
Drivers of Changes in Operating Profit (YoY): Guidance ( M) 600 400 +5 200 +338-253 +266-125 -101 195 0 64 * Figures less than one million yen are rounded. 20
Operating Profit: Guidance Profit to increase due ( M) 200 Operating Profit (LS) OP Margin (RS) 195 20% to revenue growth - Directly contributed by revenue growth due to the high incremental margin 150 121 14.4% 12.0% 15% - To ensure a certain level of profitability 100 10% by controlling upfront investment (ad 64 spending) despite increased fixed cost 50 5.0% 5% 0-3 -0.6% 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
Appendix
Mission Create a World Where Work Drives Passion 23
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% 20-29 30-39 40-49 50-24
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
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 3 3 15 unlimited - - unlimited unlimited - - - 200 tickets (Basic) Users Can Receive Scout 45,000 65,000 100,000 Re-send - Advanced Filtering - - Detailed Profiles - - 26
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
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
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