Geechs Inc. · TSE:7060
Geechs — Q1 FY3/2025 Earnings Presentation
34 slides from Geechs's earnings presentation, Aug 9, 2024
Slide 1: Financial Results Briefing for Q1 FY Ending March 2025
Financial Results Briefing The 1st Quarter of the Fiscal Year Ending March 31, 2025 August 9, 2024 GEECHS Inc. TSE Standard Market: 7060 ©2024 GEECHS Inc.
Slide 2: Contents
Financial Results Briefing 1. Financial Highlights 2 2. Results by Segment 7 3. Medium-term Growth Strategy 13 4. Appendix 19 Contents 1 Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025 ©2024 GEECHS Inc.
Slide 3: Financial Highlights
Financial Results Briefing Financial Highlights Financial Highlights for FY3/2025 1Q 1 2 Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025 ©2024 GEECHS Inc.
Slide 4: FY3/25 1Q: Executive Summary
FY3/25 1Q : Executive Summary 1Q sales reached 5.8 billion yen and operating profit was 80 million yen, in line with the company plan. ◼ IT freelance matching business (Japan) continue to be in high demand, achieving record quarterly sales of over 3.69 billion yen. ◼ IT freelance matching business (
Slide 5: FY3/25 1Q: Financial Highlights (Gross Sales, Operating Margin)
FY3/25 1Q : Financial Highlights (Gross Sales, Operating Margin) ■ G2 Studios business*1 was excluded from the consolidation, resulting in 1Q sales of 5.82 billion yen, 2.0% YoY decrease. However, sales excluding G2 Studios business showed a solid growth of 8.2% YoY. ■ Sales (IT freelance matching b
Slide 6: FY3/25 1Q: Financial Highlights (EBITDA, Operating Profit)
FY3/25 1Q : Financial Highlights (EBITDA, Operating Profit) ■ Operating profit for 1Q amounted to 80 million yen, 175.8% YoY growth. (million yen) ■ EBITDA ■ Operating income 500 400 300 200 100 107 100 80 29 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q -100 -104 FY3/23 FY3/24 FY3/25 -200 -119 5 Financial Results B
Slide 7: Financial Highlights by Segment
FY3/25 Full-year: Financial Highlights by Segment ■ IT Freelance Matching Business (Japan) : Achieved record sales of 3.69 billion yen. Despite an increase in personnel expenses, operating profit remained at 295 million yen. ■ IT Freelance Matching Business (Overseas) : Sales reached 2.04 billlion y
Slide 8: Results by Segment
Financial Results Briefing Results by Segment Financial Results for FY3/2025 1Q 2 7 Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025 ©2024 GEECHS Inc.
Slide 9: IT Freelance Matching Business (Japan): Sales, Segment Income
IT Freelance Matching Business (Japan) (Sales, Segment Income and Advertising Expense Ratio) ■ 1Q sales and progressed in line with the company plan, reaching a record high of 3.69 billion yen. 1Q (YoY) ■ While we controlled the advertising expense ratio to 1.3%, the increase in expenses due to plan
Slide 10: IT Freelance Matching Business (Japan): Freelancers, Unit Price
IT Freelance Matching Business (Japan) (Freelancers Under Contract, Unit Price of Orders) ■ With an increase in the enterprise system related projects, the number of completed projects by the end of March increased, resulting in 4,626 man-months worked in 1Q. ■ The average unit price of orders incre
Slide 11: IT Freelance Matching Business (Japan): New Partners, Registrants
IT Freelance Matching Business (Japan) (New Business Partners, New Registrants) ■ In 1Q, the number of new business partners increased by 37 companies, bringing the total number of business partners to 1,659. ■ The number of new registrations for IT freelancers was 419, showing steady growth while k
Slide 12: IT Freelance Matching Business (Overseas)
IT Freelance Matching Business (Overseas) (Sales, EBITDA and Segment Income) ■ Sales reached 2.04 billion yen, 11.3% YoY increase with the plan to focus on building up sales after the second half of the year. ■ Due to switchover the client, the gross profit for MSP decreased, resulting in a segment
Slide 13: Seed Tech Business (Sales, Segment Income)
Seed Tech Business (Sales, Segment Income) ■ Sales was 72 million yen in 1Q, 37.5% YoY increase. ■ In addition to strong offshore development, demand for study abroad programs for corporate clients is also progressing steadily in preparation for the summer demand season. ■ Although the segment profi
Slide 14: Medium-Term Growth Strategy
Financial Results Briefing Medium-Term Growth Strategy 3 13 Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025 ©2024 GEECHS Inc.
Slide 15: GEECHS Group's Future Growth Strategy
GEECHS Group's Future Growth Strategy We have been operating businesses in IT freelance sharing agent, offshore IT ( billion yen ) Amount of Domestic IT Investment 25,000.0 (Total across industries) human resources utilization, and IT human resources development since 23,513.1 22,653.6 21,803.3 esta
Slide 16: New Domain of Expansion
New Domain of Expansion 3rd Domain Possess IT consulting, PMO, and development Expansion From IT Human capabilities within the group to provide comprehensive support. Resources Supply to Through M&A execution, we aim to strengthen consulting capabilities and expand Solution Providers into DX/IT huma
Slide 17: Group Image Through Strategic M&A
Group Image Through Strategic M&A Aiming to achieve a one-stop solution provision as a company that solve the shortage of IT human resources. DX/IT Human Resources& IT Freelance Organization Consulting Technical Resource Sharing ( JPN ) Supporting from HR development to organizational building. Offs
Slide 18: Basic M&A Policy
Basic M&A Policy Target scopes and companies for M&A in alignment with the mid -term growth strategy. M&A Target Scope Potential Company Criteria ◼ Companies with proven track record DX/IT Human Resources, and expertise in strategic planning Organizational Consulting and execution ◼ Sales 500 millio
Slide 19: Initiatives to Enter New Domains
Initiatives to Enter New Domains Considering multiple ways to expand while strengthening promotion of M&A Optimize methods of entering new domain ◼ Consider M&A potential companies at appropriate valuations. ◼ Consider new business creation through hiring professional personnel at the same time, and
Slide 20: Appendix
Financial Results Briefing Appendix 4 19 Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025 ©2024 GEECHS Inc.
Slide 21: 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 22: Group Corporate Profile
Group Corporate Profile Group companies Company name GEECHS Inc. (TSE Standard Market: 7060) President and IT Freelance Matching Business (Japan) Naruhito Sonehara CEO Established August 23, 2007 IT Freelance Matching Seed Tech Business Business (Overseas) Shibuya Scramble Square, 2-24-12 Shibuya, H
Slide 23: 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 24: 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 3,630 ■ HR Tech ■ EC ■ Ed Tech ■ Game client
Slide 25: 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 26: 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 Source of growth Retention rate Support capabilities / Engagement Gross profit Added value f
Slide 27: Measures to improve engagement of IT freelancers
Measures to improve engagement of IT freelancers Improve engagement by having effective touch points with IT freelancers over the long term. Before Registration Pre-Registration Registration Sales Post-contract Marketing Engineer Partners / Sales Customer Service ◼ Organize “Tech Valley” technology
Slide 28: 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 29: Engagement
Engagement Strengthening ongoing partnerships to maximize business by increasing engagement with IT freelancers Offering 54 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 30: 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 31: 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 32: Performance Highlights
Performance Highlights Fiscal Year-End FY3/22 FY3/23 FY3/24 FY3/25 1Q FY3/25 Forecast Sales (Thousand yen) 14,340,774 15,997,838 23,739,835 5,825,129 26,300,000 EBITDA (Thousand yen) 1,226,900 651,393 362,120 107,464 670,000 Operating income (Thousand yen) 1,133,696 589,410 90,859 80,627 550,000 Ord
Slide 33: Supplemental Data (IT Freelance Matching Business, Japan)
Supplemental Data (IT Freelance Matching Business, Japan) FY3/24 FY3/25 Fiscal Year-End 1Q 2Q 3Q 4Q Full-year 1Q Sales (Thousand yen) 3,447,652 3,447,026 3,519,688 3,662,106 14,089,473 3,694,229 Advertising expense* (Thousand yen) 106,986 108,202 63,917 50,774 329,879 46,684 Advertising expense rati
Slide 34: Disclaimer
Disclaimer geechs.com The financial information contained herein is unaudited. 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