Geechs Inc. · TSE:7060
Geechs — FY2025 Earnings Presentation
42 slides from Geechs's earnings presentation, May 14, 2025
Slide 1: Financial Results Briefing FY ended March 31, 2025
Financial Results Briefing The Fiscal Year Ending March 31, 2025 Full-year May 14, 2025 GEECHS Inc. TSE Standard Market: 7060 ©2025 GEECHS Inc.
Slide 2: Contents
Financial Results Briefing 1. Financial Highlights for FY2025/3 2 2. Financial Results by Segment 10 3. Forecast for FY2026/3 19 4. Market Environment and 23 Strategy for FY2026/3 5. Appendix 32 Contents 1 Fiscal Year Ending March 31, 2025 Full-year Financial Results Briefing ©2025 GEECHS Inc.
Slide 3: Financial Highlights for FY2025/3
Financial Results Briefing Financial Highlights Financial Highlights for FY2025/3 1 2 Fiscal Year Ending March 31, 2025 Full-year Financial Results Briefing
Slide 4: Key Messages
Key Messages ◼ Full-year sales reached 25.1 billion yen, FY25/3 with operating profit up 445.4 % YoY to 495 million yen. Financial Highlights (On an adjusted basis —excluding one-time costs related to the acquisition of Alive Inc. — operating profit totaled 543 million yen.) ◼ We project sales of 26
Slide 5: FY25/3: Financial Highlights
FY25/3 : Financial Highlights Despite market headwinds in the IT human resources matching business overseas and increased M&A-related expenses following the acquisition of Alive Inc., group-wide performance was driven by the core IT human resources matching business Japan, resulting in a significant
Slide 6: FY25/3: Financial Highlights by Segment
FY25/3 : Financial Highlights by Segment Sales from the IT Human Resources Business Japan reached a record high of 15.3 billion yen for the full year, with segment profit meeting initial plans and contributing significantly to overall group performance. The IT human resources matching business overs
Slide 7: Performance Trend since IPO (Sales, Operating Profit)
Performance Trend since IPO (Sales, Operating Profit) ■ Since our IPO in March 2019, we have delivered steady, upward growth, and remain focused on growing our core IT human resources matching business Japan. ■ From Q1 of FY2024, the IT human resources matching business overseas was consolidated thr
Slide 8: FY25/3: Financial Highlights (Gross Sales, Operating Profit Margin)
FY25/3 : Financial Highlights (Gross Sales, Operating Profit Margin) ■ Excluding G2 Studios*1 (Game Segment), which was divested in the previous fiscal year, sales grew steadily, increasing by 18.1% YoY. ■ Operating profit margin in Q4 improved 2.3%, up 1.7 points from 0.6% in the same period last y
Slide 9: FY25/3: Financial Highlights (EBITDA, Operating Profit)
FY25/3 : Financial Highlights (EBITDA, Operating Profit) ■ In Q4, EBITDA and operating profit declined slightly QoQ due to one-time M&A related expenses and underperformance by subsidiary companies. However, the business portfolio restructuring initiated in the previous fiscal year is progressing st
Slide 10: Consolidated Balance Sheet & Cash Flow Statement
Consolidated Balance Sheet & Cash Flow Statement ■ Following the acquisition of Alive Inc., goodwill of 282 million yen and customer-related assets of 356 million yen were recorded on the balance sheet. Conversely, due to the impairment loss at Launch, customer-related assets decreased by 507 millio
Slide 11: Financial Results by Segment
Financial Results Briefing Results by Segment Financial Results by Segment 2 10 Fiscal Year Ending March 31, 2025 Full-year Financial Results Briefing
Slide 12: Matching Business, Japan (Sales, Segment Income, Advertising Expense Ratio)
IT Human Resources Matching Business, Japan (Sales, Segment Income and Advertising Expense Ratio) ■ Quarterly sales exceeded 4 billion yen for the first time, making a new record high. Consolidation of Alive Inc. began Q4 (YoY) in February 2025. ■ Segment profit margin remained stable YoY, supported
Slide 13: Matching Business, Japan (Person-months, Unit Price of Orders)
IT Human Resources Matching Business, Japan (Person-months, Unit Price of Orders) ■ Total billable person-months reached a record-high of 5,011, reflecting steady growth. ■ The average unit price of orders in Q4 was 826,000, (up 2.4% YoY), supported by solid demand and successful pricing negotiation
Slide 14: Matching Business, Japan (New Business Partners, New Registrants)
IT Human Resources Matching Business, Japan (New Business Partners, New Registrants) ■ The number of new business partners increased by 48, bringing the total to 1,802. ■ In Q4, 396 new IT freelancers registered, supported by a referral campaign. Backed by continued growth in the IT freelance talent
Slide 15: Matching Business, Japan (Profitability of IT freelancer)
IT Human Resources Matching Business, Japan (Profitability of IT freelancer) ■ Full-year unit economics improved to 5.7, up 3.3 points YoY. This improvement was driven by enhanced CAC efficiency, continued engagement with IT freelancers, and stable ARPU—all contributing to higher overall LTV. KPI De
Slide 16: Matching Business, Overseas (Sales, EBITDA and Segment Income)
IT Human Resources Matching Business, Overseas (Sales, EBITDA and Segment Income) ■ The IT human resources matching business overseas recorded a negative operating profit in Q4, impacted by reduced employment demand in as corporate investment was restrained under persistently high policy interest ra
Slide 17: Seed Tech Business (Sales, Segment Income)
Seed Tech Business (Sales, Segment Income) ■ Despite the impact of delays in the start of new offshore development projects, the IT talent development business—including IT study-abroad programs and "Sodatech"—performed steadily, supported by growing demand for reskilling. As a result, the segment a
Slide 18: Changes in the Number of Employees
Changes in the Number of Employees ◼ The acquisition of Alive Inc. added 38 employees to the IT human resources matching business Japan bringing the Group’s total headcount to 291 as of the end of FY25/3. ◼ In FY26/3, we will continue hiring while also enhancing productivity through the strategic us
Slide 19: Shareholder Composition
Shareholder Composition ◼ We have initiated simultaneous English disclosures as part of our IR activities. As a result, the ratio of overseas institutional investors increased from 2.9% to 4.2%. Overseas institutional investors Overseas institutional investors 2.9% 4.2% Domestic institutional invest
Slide 20: Forecast for FY2026/3
Financial Results Briefing Forecast for FY2026/3 Forecast for FY2026/3 3 19 Fiscal Year Ending March 31, 2025 Full-year Financial Results Briefing
Slide 21: FY26/3: Forecast
FY26/3 : Forecast ◼ Group sales is projected at 26.6 billion yen (up 5.7% YoY), with operating income expected to reach 700 million yen (up 41.3% YoY) through improved profitability across all segments. ◼ The 1H forecast has been set conservatively, factoring in Q1 results and the recovery trend of
Slide 22: FY26/3: Forecast by Segment
FY26/3 : Forecast by Segment ◼ With the integration of Alive Inc. into the Group, the IT human resources matching business Japan is pursuing sustainable growth through the organic expansion of both the existing freelance segment and Alive, while leveraging synergies between the two. The IT human res
Slide 23: Dividend Policy
Dividend Policy ◼ The Company continue to provide stable shareholder returns while also investing in growth to enhance long-term corporate value. For FY2026/3, we plan to double its annual dividend to 20 yen per share, an increase of 10 yen YoY, resulting in a dividend payout ratio of 51.7%. Dividen
Slide 24: Market Environment and Strategy for FY2026/3
Financial Results Briefing Market Environment and Strategy for FY2026/3 Market Environment and Strategy for FY2026/3 4 23 Fiscal Year Ending March 31, 2025 Full-year Financial Results Briefing
Slide 25: Market Environment
Market Environment ◼ While the IT/DX market continues to grow steadily, a shortage of skilled IT professionals remains a critical social issue. ◼ With the rapid surge in AI-related job postings, demand is rising not only for general IT talent but also for highly skilled pro fessionals capable of lev
Slide 26: IT Human Resources Required in the Age of Generative AI
IT Human Resources Required in the Age of Generative AI ◼ The role of IT personnel will change with the evolution of generative AI, but demand will rather grow. Widespread use of Generative AI 2000’s 2010’s 2020’s After 2025 IT Personnel to date: Execution-Oriented IT Talent for the future: Value Cr
Slide 27: Group-wide Strategy for FY26/3
Group-wide Strategy for FY26/3 Continuing to evolve with “DX and AI” as the drivers, we aim to be at the forefront as the company that solves the IT talent shortage . • We are committed to enhancing the value of our IT freelancers by supporting advanced skill development, IT Talent including the pro
Slide 28: IT Human Resources Matching Business, Japan
IT Human Resources Matching Business, Japan ◼ Evolving into an IT human resources service leveraging both IT freelancers and full -time employees. ◼ Building on previously implemented operational efficiency measures, we are actively promoting the use of generative AI both internally and externally.
Slide 29: Results of internal operational efficiency and productivity improvements
IT Human Resources Matching Business, Japan Results of internal operational efficiency and productivity improvements (By FY25/3) Results of efficiency gains from DX ◼ Our DX initiatives to improve operational efficiency have resulted in a reduction of up to 40 labor hours per Approximately 1.25X per
Slide 30: Generative AI × proprietary know-how
IT Human Resources Matching Business, Japan Aiming to improve productivity through Generative AI × proprietary Know-how ◼ By combining the accumulated data owned by Geechs, a pioneer in the IT talent market, with the use of Generative AI, we aim to establish operational excellence that cannot be fol
Slide 31: Seed Tech
Seed Tech ◼ The newly launched DX and AI consulting business is positioned as a business model development phase in this fiscal year, wit h plans to grow it into one of our next core businesses. ◼ By integrating this with our digital talent development initiatives and offshore development capabiliti
Slide 32: Matching Business, Overseas
IT Human Resources Matching Business, Overseas ◼ Starting from FY2025/3, we began implementing several initiatives to improve performance, positioning FY26/3 as a foundation- building phase for return to profitability. ◼ To reinforce our revenue base, we are transitioning from an overdependence on M
Slide 33: Appendix
Financial Results Briefing Appendix Appendix 5 32 Fiscal Year Ending March 31, 2025 Full-year Financial Results Briefing
Slide 34: 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 35: Group Corporate Profile
Group Corporate Profile Our Group Company name GEECHS Inc. (TSE Standard Market: 7060) IT Human Resources Matching Business, Japan President and Naruhito Sonehara CEO Established August 23, 2007 IT Human Resources Seed Tech Business IT Human Resources Matching Business, Overseas Matching Business, J
Slide 36: GEECHS Social Impact Flow
GEECHS Social Impact Flow 35 Fiscal Year Ending March 31, 2025 Full-year Financial Results Briefing ©2025 GEECHS Inc.
Slide 37: IT Human Resources Matching Business, Japan
IT Human Resources Matching Business, Japan (Freelance) (Full-time) 1. Proven Track as IT Freelance Agent With years of experience as a leading IT freelance agency, we IT freelancers' maintain strong relationships with top-tier enterprise clients. Over Client Companies registrations “Full-time x Lon
Slide 38: Matching Business, Overseas (Launch Group)
IT Human Resources Matching Business, Overseas (Launch Group) Major Clients 1. Australian IT Staffing Service Pioneer Established in 2006, trusted IT human resources service provider with a proven track record. Over 50% of our clients have maintained continuous MSP business relationships with us for
Slide 39: Seed Tech
Seed Tech Talent Development Business: Providing digital talent development service “Sodatech” and digital study abroad DX and AI Consulting Business: Consulting services to help companies promote DX 1. Nurturig Digital Talent from the “Seed” Development Business: Offshore development based in the P
Slide 40: Performance Highlights
Performance Highlights Fiscal Year-End FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 Forecast Sales (Thousand yen) 14,340,774 15,997,838 23,739,835 25,162,448 26,600,000 EBITDA (Thousand yen) 1,226,900 651,393 362,120 625,903 780,000 Operating income (Thousand yen) 1,133,696 589,410 90,859 495,539 700,000 Ordi
Slide 41: Supplemental Data (Matching Business, Japan)
Supplemental Data (IT Human Resources Matching Business, Japan) FY2024/3 FY2025/3 Fiscal Year-End Q1 Q2 Q3 Q4 Full-year Q1 Q2 Q3 Q4 Full-year Sales (Thousand yen) 3,460,652 3,447,026 3,519,688 3,662,106 14,089,473 3,694,229 3,740,740 3,889,417 4,038,811 15,363,198 Advertising expense (Thousand yen)
Slide 42: 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