Gunosy, Inc. · TSE:6047
Gunosy — Q2 FY2019/5 Earnings Presentation
36 slides from Gunosy's earnings presentation, Jan 15, 2019
Slide 1: FY2019/5 Financial Results for Q2
FY2019/5 Financial Results for Q2 Gunosy Inc. First Section of The Tokyo Stock Exchange (Stock Code: 6047) January 15, 2019
Slide 2: INDEX
INDEX 1 FY2019/5 Financial Results for Q2 P3 2 FY2019/5 Results Forecast P15 3 Business Overview P17 4 Reference Materials: Overview of Gunosy Inc. P30 (C) Gunosy Inc. All Rights Reserved.
Slide 3: FY2019/5 Financial Results for Q2
1 FY2019/5 Financial Results for Q2 (C) Gunosy Inc. All Rights Reserved.
Slide 4: Highlights of Financial Results
Highlights of Financial Results Outline of P/L for Q2 of the fiscal year ending in May 2019 YonY Net sales 3.84 billion yen +1.13 billion yen (141.9%) Operating profit 0.73 billion yen +0.22 billion yen (143.8%) Current profit 0.72 billion yen +0.21 billion yen (143.1%) Net profit 0.97 billion yen +
Slide 5: Summary
Summary Topics • In light of the good user acquisition on the new approach in Gunosy App, we further increased advertising expenses by slightly less than 100 million yen. • As a result, the MAU (Monthly Active Users) of Gunosy increased QonQ. We are preparing more effective user acquisition programs
Slide 6: FY2019/5 Consolidated Results for Q2
FY2019/5 Consolidated Results for Q2 Net sales increased by 41%. As a result, operating profit rose 43%, showing a good result. (Million yen) Quarter First half FY2018/5 FY2019/5 Forecast for H1 FY2019/5 Change Change Q2 Q2 at Oct.12,'18 H1 Net sales 2,707 3,840 141.9% 7,026 7,541 107.3% Operating p
Slide 7: FY2019/5 Factors for Increase in Profit in Q2
FY2019/5 Factors for Increase in Profit in Q2 Steady growth in Gunosy Ads and ADNW sales made a significant contribution to the increase in profit. -353 478 66 40 ¥800,000,000 -372 (Million yen) 308 54 ¥400,000,000 731 508 ¥0 FY2018 Q2 Gunosy Gunosy Ads ADNW sales ADNW cost of Game8 Digwell Other co
Slide 8: Financial Results (Quarterly)
Financial Results (Quarterly) Net sales set a record high for 13 consecutive quarters, at 3.84 billion yen. Operating profit, despite a quarter-on-quarter decline due to the increase in advertising expenses by slightly less than 100 million yen, hit its second highest level after the level reached i
Slide 9: Breakdown of Net Sales
Breakdown of Net Sales*1 ADNW sales exceeded the previous record high. Gunosy Ads*2 and Game8 continued to record solid sales. (Million yen) 254 136 4,000 Others 54 Game8 206 232 ADNW Gunosy Ads *2 190 3,000 2 158 1,422 148 1,459 16 12 5 1,205 90 75 980 1,097 2,000 62 49 815 39 625 610 606 52 466 38
Slide 10: Cost Structure
Cost Structure Variable costs (ADNW costs, costs for revenue sharing with KDDI that are included in “Other expenses”) increased, mainly associated with the rise in net sales. The cost structure remained stable. Cost Structure (Million yen) 3,109 3,000 2,908 2,753 911 Other expenses 806 2,313 678 2,1
Slide 11: Cumulative Total of Downloads
Cumulative Total of Downloads The performance of acquisitions are good for Gunosy App due to an addition to advertising expenses, and CPI* is maintained to low levels. (million DLs) 39.26 million DLs (Yen) 40.00 450 LUCRA 36.37 NewsPass 33.54 Gunosy 30.84 CPI* 27.99 25.15 300 22.68 18.41 20.43 20.00
Slide 12: Total Number of Active Users
Total Number of Active Users*1 Diversification is making progress due to the growth of NewsPass and LUCRA. In addition, the MAU of Gunosy App, which had remained stable, turned slightly upward in Q2. Rose 32.0% YonY Applications: LUCRA NewsPass Gunosy Stable Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 13: Advertisers
Advertisers The ratio of major advertisers increased because we focused on sales activities for the existing major advertisers* with the purpose of cutting unit costs for customers. Along with the growth of LUCRA, the share of the Health and Beauty care segments continued to increase. Number of Acti
Slide 14: Ad Network (ADNW)
Ad Network (ADNW) We continued to acquire good advertising inventories and maintained a high CPM*. Number of Impressions and CPM (million imp) 45,000 ¥40 imp CPM 39,529 ¥36.84 39,585 40,900 38,610 36,330 38,872 ¥35.75 33,680 30,788 30,142 ¥30.70 ¥30.70 30,000 27,348 YonY ¥25.10 CPM: +42% ¥20 ¥21.10
Slide 15: FY2019/5 Results Forecast
2 FY2019/5 Results Forecast Section ２ (C) Gunosy Inc. All Rights Reserved.
Slide 16: Progress in FY2019/5 Financial Forecast
Progress in FY2019/5 Financial Forecast The first half forecast of operating profit was achieved with the progression rate of 113.6%. The results forecast remains unchanged because advertising expenses are expected to be further increased, mainly for Gunosy whose acquisition is good, and new media a
Slide 17: Business Overview
3 Business Overview (C) Gunosy Inc. All Rights Reserved.
Slide 18: Highlights by Division
Highlights by Division • User acquisition on the back of the new approach remained good in Gunosy App. Advertising expenses were further increased by slightly less than 100 million yen. Media • Progress was made in the enhancement of video content and a shift to video from text based media. • We rel
Slide 19: (1) Gunosy
Media Business (1) Gunosy Advertising expenses were further increased due to good user acquisition, resulting from the ongoing efforts to enhance the coupon program. Production of the second TV commercial for the coupon program is in process. We are working on a plan to further strengthen promotions
Slide 20: (1) Gunosy
Media Business (1) Gunosy The enhancement of video content is progressing. A shift to video content is underway. Changes in the scale of users Main video content broadcast in Q2 who have finished viewing video Gunosy Q A live interactive quiz program featuring user participation (held on a regular b
Slide 21: (1) Gunosy
Media Business (1) Gunosy We released Gunosy Sports as a cut-out application. We will validate the application in the current fiscal year from the perspective of unit economics for growth in the next fiscal year and beyond. Background • Interest in sports is growing as shown by the launch of channel
Slide 22: (2) NewsPass
Media Business (2) NewsPass We are seeking to improve user experience through the enhancement of “likes” and video content. We are moving forward with efforts to strengthen communities through the development of commenting functions. • We plan to provide more daily life-based information by utilizin
Slide 23: (3) LUCRA
Media Business (3) LUCRA The DAU and MAU grew significantly due to improvements in user acquisition efficiency and persistency. In terms of the MAU, the service became the largest media outlet oriented to women in the Japanese market. Changes in MAU Largest media LUCRA Media A Media B Media C Media
Slide 24: Gunosy/NewsPass/LUCRA
Media Business Gunosy/NewsPass/LUCRA We are improving algorithms for services in Gunosy, NewsPass and Lucra and conducting research and development on leading-edge algorithms. Algorithms for Research and delivery of articles development • Full-scale introduction of personalization for Gunosy • Condu
Slide 25: (4) Game8
Media Business (4) Game8 Both sales and operating profit continued to set record highs, with operating sales reaching 110 million yen. Good progress was made in the promotion of functions other than game walkthrough/strategy articles. Sales and Operating profit New Driver for Growth 250,000,000 232
Slide 26: Existing Advertisers
Advertising Business Existing Advertisers We released new automatic bidding functions in existing programmatic advertising to expand the customer base. We also launched new content-linked ads such as coupons and live events. Improvement of existing Launch of content-linked ads programmatic advertisi
Slide 27: New Advertisers (digwell and VIDPOOL)
Advertising Business New Advertisers (digwell and VIDPOOL) Affiliate advertising orders remained good, and the sales of the subsidiary, digwell, increased. We launched initiatives including the sale of packages aimed at advertisers of products and services for men to make VIDPOOL profitable. Sales g
Slide 28: LayerX
BC Business LayerX 2018 年 11 月 30 日 株式会社 LayerX 日本マイクロソフト株式会社 We will move forward with the報道関係者各位 development and expansion of consulting and technical support through collaboration with Microsoft Japan in BaaS. 2018 年 11 月 30 日 LayerX と日本マイクロソフトがブロックチェーン分野で協業 株式会社 LayerX 日本マイクロソフト株式会社 報道関係者各位 2018
Slide 29: Gunosy Capital
Investment Business Gunosy Capital We carried out the first project, which is an investment in Zoomcar, the largest online car rental company in India. First 報道関係者各位 project 2018 年 10 月 11 日 発行 No. 119 Overview of investee Gunosy Capital、 イ ン ド のオン ラ イ ン レ ン タ カ ー事業を 提供する 「 Zoom car」 に初投資を 実施 株式会社 G
Slide 30: Reference Materials: Overview of Gunosy Inc.
Appendix Reference Materials: Overview of Gunosy Inc. (C) Gunosy Inc. All Rights Reserved.
Slide 31: Overview of Gunosy Inc.
Overview of Gunosy Inc. Basic Information ・Company name: Gunosy Inc. ・Officers:Representative Director and CEO, ・Representative: Yuya Taketani Yuya Taketani ・Established: November 14, 2012 Director and COO, Tetsuya Nagashima ・Fiscal year end: May 31 Director, Yoshinori Fukushima ・Capital: 4,011 mill
Slide 32: Directors
Directors Representative Director and CEO Representative Director and COO Director Director Yuya Taketani Tetsuya Nagashima Yoshinori Fukushima Shinji Kimura He graduated from the Department of Industrial and He graduated from the Faculty of Science and He graduated from the Graduate School of He gr
Slide 33: Business Model: Gunosy Ads
Business Model: Gunosy Ads News Revenue Interests Targeted advertisement delivery by interest cluster Gunosy Users AD Impression- Click-guaranteed (CPC = Cost per Click) guaranteed (CPM = Cost per Mille) Features 1. In-feed advertisements (ads inserted into articles) enhance visibility 2. Highly fre
Slide 34: Business Model: Ad Network
Business Model: Ad Network In addition to delivering advertisements inside Gunosy (Gunosy Ads), we release Gunosy Ad Network service, which delivers ads to external partner media. Currently, more than 600 media outlets have introduced this service. Advertiser A Media A Advertiser B Media B Advertise
Slide 35: Disclaimer
Disclaimer Forward-looking statements contained in these materials are prepared from judgments and assumptions based on information available at the time of preparing the materials, and do not guarantee their accuracy. Please note that actual results may differ materially from the forecasts due to v
Slide 36: Optimally deliver information to people around the world
Optimally deliver information to people around the world