Geechs Inc. · TSE:7060
Geechs — Q1 FY3/2024 Earnings Presentation
32 slides from Geechs's earnings presentation, Aug 10, 2023
Slide 1: Financial Results Briefing 1Q FY3/2024
Financial Results Briefing The 1st Quarter of the Fiscal Year Ending March 31, 2024 August 10, 2023 GEECHS Inc. TSE Prime Market: 7060 ©2023 GEECHS Inc.
Slide 2: Contents
Financial Results Briefing 1. Financial Highlights 02 2. Results by Segment 07 3. Appendix 14 Contents 1 Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2024 ©2023 GEECHS Inc.
Slide 3: Financial Highlights
Financial Results Briefing Financial Highlights Financial Highlights for FY3/2024 Q1 1 2 Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2024 ©2023 GEECHS Inc.
Slide 4: FY3/24 Q1: Financial Highlights
FY3/24 Q1: Financial Highlights Achieved Record High Sales ・We started a consolidation with Launch this FY.The IT Freelance Matching Business, Japan continued to see high demand, and progressed favorably. ・Q1 operating income was forecast to be negative due to the impact of G2 Studios, but we achiev
Slide 5: Financial Highlights (Sales and Operating Margin)
FY3/24 Q1: Financial Highlights (Sales and Operating Margin) ■ The new consolidation with Launch contributed to sales, which were up 68.7% YoY. (Achieved highest-ever quarterly sales) (million yen) ■ Sales ● Operating margin Record High 7,000 30.0% Quarterly Sales 6,000 5,945 25.0% YoY 20.0% 5,000 +
Slide 6: Financial Highlights (EBITDA, Operating Profit)
FY3/24 Q1: Financial Highlights (EBITDA, Operating Profit) ■ In Q1, the IT Freelance Matching Business progressed favorably, exceeding the corporate plan and starting in the black. (million yen) ■ EBITDA 800 ■ Operating income 700 600 500 400 300 200 104 100 100 51 29 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -1
Slide 7: Financial Highlights by Segment
FY3/24 Q1: Financial Highlights by Segment ■ IT Freelance Matching Business, Japan : Sales progressed steadily, growing 14.8% YoY to around 3.4 billion yen. ■ IT Freelance Matching Business, Overseas : Though there was no contribution to profit due to audit costs and goodwill amortization related to
Slide 8: Results by Segment
Financial Results Briefing Results by Segment Financial Results for FY3/2024 Q1 2 7 Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2024 ©2023 GEECHS Inc.
Slide 9: IT Freelance Matching Business, Japan (Sales, Segment Profit)
IT Freelance Matching Business, Japan (Sales, Segment Profit and Advertising Expense Ratio) ■ Sales exceeded 3.4 billion yen, a record high. ■ Due to continued investment in branding advertisement of 106 million yen in Q1 (up from 43 million yen Q1 last FY), the segment profit ratio fell 1.0 points
Slide 10: IT Freelance Matching, Japan (Freelancers under contract, Unit price)
IT Freelance Matching Business, Japan (Freelancers under contract and Unit price of orders) ■ Demand from customers remains strong, with the ratio of projects remaining at a high level of 7.88 times. ■ The unit price of orders increased significantly YoY. Q1 (YoY) Freelancers (Freelancers/month) ■ F
Slide 11: IT Freelance Matching, Japan (New business partners, New registrants)
IT Freelance Matching Business, Japan (New business partners, New registrants) ■ New business partners progressed favorably, with an increase of 53 companies. ■ Newly registered IT freelancers totalled 366, up 35.6% YoY. ■ Continuing from the previous year, we plan to invest in branding advertisemen
Slide 12: IT Freelance Matching Business, Overseas
IT Freelance Matching Business, Overseas (Sales, EBITDA and Segment profit) We started consolidation of PL this FY. ・We achieved sales and EBITDA in line with the corporate plan. ・Operating loss was approximately 21 million yen due to the impact of opening audit costs, goodwill amortization costs, e
Slide 13: G2 Studios (Sales, Segment profit, Titles, Employees)
G2 Studios (Sales, Segment profit, Number of titles and Number of employees) ■ At the end of FY3/23, one operated title was terminated, while one title under development was cancelled in Q1. ■ While the delay of a planned order of a title from Q1 to Q2 meant that segment profit was -74 million yen,
Slide 14: Seed Tech (Sales, Segment profit)
Seed Tech (Sales, Segment profit) ■ Offshore development increased by 128% YoY. Overseas IT study abroad greatly increased by 104.5% YoY thanks to recovery in projects from school corporations. ■ Despite continuing up-front investment into “Sodatech”, the segment deficit shrank. Q1 (YoY) ■ In Q2, we
Slide 15: Appendix
Financial Results Briefing Appendix 3 14 Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2024 ©2023 GEECHS Inc.
Slide 16: Solving the Shortage of IT Human Resources in Japan
About GEECHS Solving the Shortage of IT Human Resources in Japan IT Resource Crisis Is Our Business GEECHS supports the work styles of IT freelancers, sharing their skills and experiences with companies that face a shortage of IT human resources. GEECHS also continues to provide globally-oriented bu
Slide 17: Group Corporate Profile
Group Corporate Profile Group companies Company name GEECHS Inc. (TSE Prime Market: 7060) President and IT Freelance Matching Business x-Tech Business Naruhito Sonehara CEO Established August 23, 2007 IT Freelance Matching Seed Tech Business Game Business Business (Overseas) Shibuya Scramble Square,
Slide 18: GEECHS Social Impact Flow
GEECHS Social Impact Flow Input Group Synergies Through Business Activities Output Outcome Evolution of the IT freelance sharing business Creating a new “normal” Make the biggest impression Financial Capital through the integration of know-how and resources way of working in the 21st century • Growt
Slide 19: IT Freelance Matching Business, Japan
IT Freelance Matching Business, Japan Technology Resource Sharing Platform Growth companies in IT field Internet companies Project information website ■ Ad Tech ■ Med Tech Approx. with constantly over 1,500 projects ■ Fin Tech ■ Real Estate Tech Matching 3,510 ■ HR Tech ■ EC ■ Ed Tech ■ Game client
Slide 20: GEECHS Strengths
GEECHS Strengths Support team structure of 3 people per IT freelancer Quick and relevant matching Support ■ Generous support as a project mentor ■ Speedier matching by taking the whole process online Capabilities ■ Generous support from career advisors ■ Utilizing big data to take factors other than
Slide 21: Source of Growth
Source of Growth Financial Figures Business KPIs Key Success Factor Platform Value Monthly orders Trust from IT freelancers and Sales Monthly unit price of orders Matching Capabilities customers Order period Net sales (Source of growth) Retention rate Support capabilities / Engagement Gross profit A
Slide 22: Connect with IT Freelancers
Connect with IT Freelancers Improve engagement by having effective contact with IT freelancers over the long term Registration Boost exposure Lead acquisition Matching Negotiations Contract Start interview Marketing Automation Lead Generation Lead Nurturing Customer Success ■ Web Marketing ■ One-to-
Slide 23: Differences from Similar Businesses
Differences from Similar Businesses Developing a platform specifically for mid- to high-spec, professional IT freelancers GEECHS Crowdsourcing IT Engineers Dispatch Registrant IT freelancers (main job) Freelancers (side/main job), and others Dispatched workers Main clients Growth companies in IT fie
Slide 24: Engagement
Engagement Strengthening ongoing partnerships to maximize business by increasing engagement with IT freelancers Offering 50 services which enable our IT freelancers to work for extended periods without the Benefits program undue stress of instability for IT freelancers ■ Seminars on how to file a ta
Slide 25: IT Freelance Matching Business, Overseas (Launch Group)
IT Freelance Matching Business, Overseas (Launch Group) Main Clients 1. Australian IT freelance service pioneer Established in 2006, Launch has earned trust and a track record as a venture company in the IT staffing service industry. MSP Contract Launch has been doing business continuously with more
Slide 26: Seed Tech
Seed Tech 1. Providing “Sodatech”, a DX/IT human resource Development business - Offshore development business development service for companies Education business - Sodatech for developing global IT freelancers, IT study abroad Providing a SaaS-type DX/IT human resource development platform for cor
Slide 27: G2 Studios
G2 Studios 1. Specialists in Partner Strategy With solid technical capabilities centered on Unity / PHP, we have stabilized our revenue base through contract development and operations, winning revenue share from successful titles. We have also increased orders for globally distributed titles. © We
Slide 28: Differences between Developer and Publisher
Differences between Developer and Publisher The future strategy of the Game Business is to become a developer of globally distributed titles. Developer (GEECHS) Publisher Main role Planning, development, and operation of titles Planning, distribution and promotion of titles ● Planning and developmen
Slide 29: G2 Studios: Business and Revenue Image
G2 Studios: Business and Revenue Image Business Model Revenue Image ◼ G2 Studios is a developer specifically contracted by major game companies ◼ Since stable revenue recognition has become possible during the planning and (publishers) for the planning, development and operation of games. developmen
Slide 30: Performance Highlights
Performance Highlights Fiscal Year-End FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 Full-year projection Sales (Thousand yen) 3,544,309 3,427,816 14,340,774 15,997,838 28,000,000 EBITDA (Thousand yen) 773,350 815,495 1,226,900 651,393 900,000 Operating income (Thousand yen) 684,250 738,479 1,133,696 589,410 7
Slide 31: Supplemental Data (IT Freelance Matching Business, Japan)
Supplemental Data (IT Freelance Matching Business, Japan) FY3/23 FY3/24 Fiscal Year-End Q1 Q2 Q3 Q4 Full-year Q1 Sales (Thousand yen) 3,014,968 3,117,730 3,236,528 3,393,625 12,762,853 3,460,652 Advertising expense* (Thousand yen) 43,435 70,656 90,096 119,050 323,238 106,986 Advertising expense rati
Slide 32: Notes regarding Forward-Looking Statements
Notes regarding Forward-Looking Statements www.geechs.com The information contained in this presentation is based on a number of assumptions. These statements are not intended to assure or guarantee the achievement of future numerical targets or measures. Please note that actual results may differ d