Livesense Inc. · TSE:6054
Livesense — Q2 FY2023 Earnings Presentation
37 slides from Livesense's earnings presentation, Aug 14, 2023
Slide 1: FY2023 2nd Quarter Financial Results
FY2023 2nd Quarter Financial Results Livesense Inc. (TSE Prime Market: 6054) August 14, 2023
Slide 2: Agenda
1 Financial Results Agenda 2 Progress 3 Appendix Copyright © LIVESENSE Inc.
Slide 3: 1. Financial Results
1. Financial Results
Slide 4: Executive Summary for the 2nd Quarter
Executive Summary for the 2nd Quarter 4 Sales up 23.6% YoY with business growth driven by three main businesses. Operating income up 62.3% YoY with reflection of investment effect from previous quarter. (Millions of JPY) FY2022 FY2023 YoY 2Q 2Q Net Sales 1,208 1,494 +23.6% Operating Income 108 175 +
Slide 5: Quarterly Net Sales and Operating Income
Quarterly Net Sales and Operating Income 5 We conducted an investigation in Sales up owing to growth of existing businesses. Machbaito achieved record-high quarterly sales. We will strengthen our investments Operating income up owing to partial reflection of investment effect from 1Q. Net sales Oper
Slide 6: Trends in Operating Income: Variance Analysis
Trends in Operating Income: Variance Analysis 6 Sales up significantly with business growth. Invested in customer attraction and enhancement of hiring. Will continue to increase investment for medium- to long-term growth while maintaining higher sales and income. (Millions of JPY) -170 +285 -21 -26
Slide 7: Operating Expenses
Operating Expenses 7 Advertising costs and personnel expenses up YoY and QoQ due to stronger customer attraction and hiring. (Millions （単位：百万円） of JPY) Personnel expenses Advertising costs Others 1,318 1,244 1,190 1,092 1,100 1,091 395 360 393 370 369 343 375 523 475 296 353 373 425 378 454 399 374
Slide 8: Progress Towards Performance Forecasts
Progress Towards Performance Forecasts 8 Progress is being made mostly as expected with respect to sales and income. We Promoted strengthening of organizational structure for medium- to long-term growth staring in 2H. We assume increased expenses due to revision of compensation system, hiring, etc.
Slide 9: 2. Progress
2. Progress
Slide 10: Second Quarter Progress
Second Quarter Progress 10 Company-wide Policy Establish foundation for stable and sustainable growth and strengthen investments to create “the next common” Progress made on forward-looking investments to establish foundation for sustainable growth and verification Establish foundation Machbaito : S
Slide 11: Machbaito
Strengthening of Existing Businesses 11 Machbaito Promoting expansion of transactions with major customers and cultivation of new customers leveraging strengths in high-efficiency customer attraction methods and algorithms. … This year’s focus Expansion of transactions with major customers Cultivati
Slide 12: Machbaito
Strengthening of Existing Businesses 12 Machbaito Sales up ¥247 million (+32.5%) YoY with expansion of transactions with major customers. Record-high quarterly net sales. Number of applications up with enhanced customer attraction. Progress is being made on approach to new customers as well. Net sal
Slide 13: Tenshoku Kaigi
Strengthening of Existing Businesses 13 Tenshoku Kaigi Expansion of transactions with major partners. Sales via Review Pass up with increase in new members. Sales up YoY owing to above initiatives, continuing to increase from end of previous year. Net sales Tenshoku Kaigi Business Structure (Million
Slide 14: Tenshoku Kaigi
Strengthening of Existing Businesses 14 Tenshoku Kaigi Number of registered members and reviews up owing to ongoing UX improvements. We will continue to work on enhancing website value and enhancing referrals to increase income per member. Number of registered members Increase in number of reviews N
Slide 15: Tenshoku Draft
Strengthening of Existing Businesses 15 Tenshoku Draft Success fees and usage fees up with increase in number of participants and participating companies. Sales up ¥47 million (+37.8%) YoY. Net sales Tenshoku Draft Profit structure (Millions of JPY) Job Member Draft Hiring 187 registration Hiring pa
Slide 16: Tenshoku Draft
Strengthening of Existing Businesses 16 Tenshoku Draft Due to UX improvements and some campaigns, the number of participants increased. Furthermore, the number of participants increased with promotion of rejoining. Number of participating companies also is continuing to increase since beginning of y
Slide 17: Referral-type Matching Service "knew"
Realize PMF in New Businesses 17 Referral-type Matching Service “knew” We have added the ability to select video chat partners after viewing their profiles, etc. Makes wider range of desired matches possible. Traditional format of choosing referral date New feature Today’s Featured User For those wh
Slide 18: Interview Optimization Cloud Service "batonn"
Realize PMF in New Businesses 18 Interview Optimization Cloud Service “batonn” Released function to summarize interview content using ChatGPT. Quick review of key points from interview means fewer man-hours for hiring. Number of user companies increased in response to this release. Will focus on acc
Slide 19: Investing to Human Capital
Investing to Human Capital 19 Investing in human capital to achieve sustainable growth. Revised compensation system and improved system for childcare employees to strengthen recruitment and retention. Revision of compensation system Expansion and packaging of Child Care Employee Programs Annual Rais
Slide 20: Selection of TSE Standard Market
Selection of TSE Standard Market 20 Opted to shift to Standard Market to develop an environment for holding and trading Livesense shares without anxiety, allowing us to focus on business growth. Will continue to improve corporate value and aim for listing on Prime Market. No. of Tradable 流通株式 Tradab
Slide 21: Issuance of Integrated Report
Issuance of Integrated Report 21 Purpose is to enhance understanding of the Company among stakeholders and earn trust from society at large. A first for Livesense. In addition to financial information, disclose non-financial information such as business models and strategies. Please see the integrat
Slide 22: 3. Appendix
3. Appendix
Slide 23: Corporate Philosophy
23 3. Appendix Corporate Philosophy Copyright © LIVESENSE Inc.
Slide 24: LIVE + SENSE Happiness Begetting Happiness.
Origin of the company name 24 /Business Philosophy Origin of the company name LIVE + SENSE Business Philosophy Happiness Begetting Happiness. Corporate Vision Invent the next common. Copyright © LIVESENSE Inc.
Slide 25: Basic Philosophy of Business Operation
Basic Philosophy of Business Operation 25 Basic Philosophy We will view structural distortions preventing optimal choices as social issues to be solved with technology. Three business themes based on basic philosophy System Innovation High Transparency Respect for Humanity through DX Improve conveni
Slide 26: System Innovation through DX
Business Topics 26 System Innovation through DX Improve convenience and efficiency of everyday life and business by updating old system and solving issues of inconvenience and inefficiency Old system Updated system Inconveniences remain due to Improve convenience through system innovation overlookin
Slide 27: High Transparency
Business Topics 27 High Transparency Reduce mismatches by eliminating asymmetry of information and realize a society with better choices for individuals and organizations = Realize fair trade by ensuring equal information for both sides User Company information volume information volume Business Exa
Slide 28: Respect for People
Business Topics 28 Respect for People Increase satisfaction with choices through matching that incorporates diverse preferences and values, breaking free from excessive mechanization • Matching via one- • Matching that also sided information considers personality • Boilerplate scouting and values •
Slide 29: FY2023 Policy
29 3. Appendix FY2023 Policy Copyright © LIVESENSE Inc.
Slide 30: Company-wide Policy for FY2023
Company-wide Policy for FY2023 30 FY2023 Company-wide Policy Establish foundation for stable and sustainable growth and strengthen investments to create “the next common” Establish foundation Create new revenue for sustainable growth Realize PMF* in streams based on through enhancement of new busine
Slide 31: Strengthening of Existing Businesses and Creation of New Revenue Streams
Strengthening of Existing Businesses and 31 Creation of New Revenue Streams Promote strengthening of foundation for profit generation in FY2023 and growth in FY2024 and beyond. Accelerate exploration and verification of new revenue streams Enhance existing businesses Create new revenue streams • Inc
Slide 32: Realization of PMF in New Businesses
Realization of PMF in New Businesses 32 Continue investing in new businesses to create future pillars Realize PMF quickly for launch of full-scale investment in knew and batonn Overview of service Realize PMF in new businesses • Increase sales per member through UX Referral-type matching service imp
Slide 33: Financial Forecasts for FY2023
Financial Forecasts for FY2023 33 Aim for increasing sales and profit by strengthening existing businesses and creating new revenue streams based on existing businesses. Continue investing in new businesses (Millions of JPY) FY22 Previously FY22 Revised Amount of change FY21 announced forecast (A) f
Slide 34: Corporate Profile
34 3. Appendix Corporate Profile Copyright © LIVESENSE Inc.
Slide 35: Corporate Profile
Corporate Profile 35 Company name Livesense Inc. CEO/Founder Taichi Murakami Business Philosophy Happiness Begetting Happiness. Corporate Vision Invent the next common. Established February 8, 2006 Listing Market Tokyo Stock Exchange Prime Market (Securities code: 6054) Number of Employees (Non-Cons
Slide 36: Employees
Employees 36 No. of Employees (Consolidated) Breakdown of Full-time Employees (People) Regular Part-time Adminis tration Engineers 18% / 373 Customer Designers 357 6 6 345 Support 33% 105 9 7% 101 98 262 255 253 255 253 13 12 14 13 14 45 41 46 46 Sales Planning 50 28% 14% 262 250 238 204 202 194 195
Slide 37: Disclaimer
Livesense Inc. (below, the Company) has prepared this material to provide current information about the Company. The Company prepared this material using generally known information about social and economic conditions and certain assumptions that we deemed to be reasonable. The information found in