Geechs Inc. · TSE:7060
Geechs — Q3 FY2025 Earnings Presentation
35 slides from Geechs's earnings presentation, Feb 14, 2025
Slide 1: Financial Results Briefing Q3 FY Ending March 2025
Financial Results Briefing The Third Quarter of the Fiscal Year Ending March 31, 2025 February 14, 2025 GEECHS Inc. TSE Standard Market: 7060 ©2025 GEECHS Inc.
Slide 2: Contents
Financial Results Briefing 1. Financial Highlights 2 2. Results by Segment 8 3. Medium-term Growth Strategy 14 4. Appendix 20 Contents 1 Financial Results Briefing for the 3rd Quarter of the Fiscal Year Ending March 31, 2025 ©2025 GEECHS Inc.
Slide 3: Financial Highlights
Financial Results Briefing Financial Highlights Financial Highlights for FY2025/3 Q3 1 2 Financial Results Briefing for the 3rd Quarter of the Fiscal Year Ending March 31, 2025 ©2025 GEECHS Inc.
Slide 4: FY25/3 Q3: Executive Summary
FY25/3 Q3 : Executive Summary Quarterly sales setting a record of 6.52 billion yen (11.1% YoY growth). ◼ Nine-month sales exceeded 18.7 billion yen, the highest ever, driven by growth in each segment. ◼ Operating profit also rose significantly 502.7% YoY to 348 million yen, thanks to the contributio
Slide 5: FY25/3 Q3: Financial Highlights (Gross Sales, Operating Margin)
FY25/3 Q3 : Financial Highlights (Gross Sales, Operating Margin) ■ Sales growth, excluding G2 Studios*1, game segment sold in the previous fiscal year, increased by 21.6% YoY. ■ Operating margin is on a recovery trend at 2.4%, and we aim to further improve profitability in each segment. ■ Sales (IT
Slide 6: FY25/3 Q3: Financial Highlights (EBITDA, Operating Profit)
FY25/3 Q3 : Financial Highlights (EBITDA, Operating Profit) ■ Operating profit was 154 million yen and EBITDA was 184 million yen (up 1,026.6% YoY) in Q3, showing continued growth on a quarterly basis. ■ We will continue to work on improving the medium-to long-term earnings base in each segment, led
Slide 7: FY25/3 Q3: Financial Highlights by Business Segment
FY25/3 Q3: Financial Highlights by Business Segment IT freelance matching business (Japan) achieved record high sales and maintained solid segment profit of 924 million yen, showing sustained growth. IT freelance matching business (Overseas) struggled due to market conditions and organizational rest
Slide 8: Acquisition of Alive Inc.
Acquisition of Alive Inc. ◼ In line with the medium-term growth strategy, we acquired 100% of the shares of Alive Inc., which possesses highly skilled IT personnel with consulting and technical expertise, on February 14, 2025. The transaction was conducted at a fair price in accordance with the basi
Slide 9: Results by Segment
Financial Results Briefing Results by Segment Financial Results for FY2025/3 Q3 2 8 Financial Results Briefing for the 3rd Quarter of the Fiscal Year Ending March 31, 2025 ©2025 GEECHS Inc.
Slide 10: IT Freelance Matching Business (Japan) (Sales, Segment Income and Advertising Expense Ratio)
IT Freelance Matching Business (Japan) (Sales, Segment Income and Advertising Expense Ratio) ■ Sales exceeded 3.88 billion yen in Q3, setting a record. Q3 (YoY) ■ Segment profit margin increased to 8.6%, up 1.0% YoY, due to appropriate cost control. ■ Take rate was 17.8% in line with the company pro
Slide 11: IT Freelance Matching Business (Japan) (Freelancers Under Contract, Unit Price of Order)
IT Freelance Matching Business (Japan) (Freelancers Under Contract, Unit Price of Order) ■ Thanks to continuous relationship building with IT freelancers, the number of man-months worked reached a record high of 4,822. ■ The unit price of order was 830 thousand yen, up 2.8% YoY due to continued dema
Slide 12: IT Freelance Matching Business (Japan) (New Business Partners, New Registrants)
IT Freelance Matching Business (Japan) (New Business Partners, New Registrants) ■ The number of new business partners increased by 47 companies, bringing the total number of business partners to 1,754. ■ The number of new registrants in Q3 progressed at a moderate pace, as planned. Q3 Number of Busi
Slide 13: IT Freelance Matching Business (Overseas) (Sales, EBITDA and Segment Income)
IT Freelance Matching Business (Overseas) (Sales, EBITDA and Segment Income) ■ Policy interest rates have remained high for a long period due to continued concerns about inflation, and companies continue cautious about investing in human resources. ■ Sales increased by 45.1% YoY to 2.54 billion yen
Slide 14: Seed Tech Business (Sales, Segment Income)
Seed Tech Business (Sales, Segment Income) ■ Q3 sales was 69 million yen. Due to a delay in new offshore development project orders that were planned, segment profit was negative. ■ IT study-abroad business is progressing as planned with continued inquires from corporate clients. Q3 (YoY) Sales 69 m
Slide 15: Medium-Term Growth Strategy
Financial Results Briefing Medium-Term Growth Strategy 3 14 Financial Results Briefing for the 3rd Quarter of the Fiscal Year Ending March 31, 2025 ©2025 GEECHS Inc.
Slide 16: 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 17: 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 18: 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 19: 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 20: 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 21: Appendix
Financial Results Briefing Appendix 4 20 Financial Results Briefing for the 3rd Quarter of the Fiscal Year Ending March 31, 2025 ©2025 GEECHS Inc.
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: Engagement
Engagement Strengthening ongoing partnerships to maximize business by increasing engagement with IT freelancers Offering 55 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 31: 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 32: Seed Tech
Seed Tech Development business - Offshore development business 1. A global standard business collaboration lab for Education business - Sodatech for developing global IT freelancers, IT study abroad offshore development Funds Providing comprehensive support for securing, developing, and managing IT
Slide 33: Performance Highlights
Performance Highlights Fiscal Year-End FY22/3 FY23/3 FY24/3 FY25/3 9M FY25/3 Forecast Sales (¥ thousands) 14,340,774 15,997,838 23,739,835 18,705,132 26,300,000 EBITDA (¥ thousands) 1,226,900 651,393 362,120 440,598 670,000 Operating income (¥ thousands) 1,133,696 589,410 90,859 348,042 550,000 Ordi
Slide 34: Supplemental Data (IT Freelance Matching Business, Japan)
Supplemental Data (IT Freelance Matching Business, Japan) FY24/3 FY25/3 Fiscal Year-End Q1 Q2 Q3 Q4 Full-year Q1 Q2 Q3 Sales (¥ thousands ) 3,460,652 3,447,026 3,519,688 3,662,106 14,089,473 3,694,229 3,740,740 3,889,417 Advertising expense* (¥ thousands ) 106,986 108,202 63,917 50,774 329,879 46,68
Slide 35: 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