Gunosy, Inc. · TSE:6047
Gunosy — Q3 FY2019/5 Earnings Presentation
34 slides from Gunosy's earnings presentation, Apr 12, 2019
Slide 1: FY2019/5 Financial Results for Q3
FY2019/5 Financial Results for Q3 Gunosy Inc. First Section of The Tokyo Stock Exchange (Stock Code: 6047) April 12, 2019
Slide 2: INDEX
INDEX 1 Executive Summary P3 2 Financial Results for FY2019 Q3 P6 3 FY2019 Outlook P11 4 Business Overview by Division P17 5 Reference Materials: Overview of Gunosy Inc. P29 （C） Gunosy Inc. All Rights Reserved.
Slide 3: Executive Summary
1 Executive Summary （C） Gunosy Inc. All Rights Reserved.
Slide 4: Preparation for Further Step Forward
Preparation for Further Step Forward In anticipation of a significant increase in sales and income in FY 2021/5, we defined approximately one year from the current quarter as a strategic investment period, and will actively invest in existing / new apps through aggressive advertising. Strong perform
Slide 5: Image of Performance Growth over Three Periods
Image of Performance Growth over Three Periods Targeting a large increase in income in FY2021, we see the next fiscal year (FY2020) as an investment phase cantered on the regrowth of “Gunosy”. (Specific forecast, including advertising expenses, will be announced at the time of the FY2019/5 Financial
Slide 6: Financial Results for FY2019 Q3
2 Financial Results for FY2019 Q3 （C） Gunosy Inc. All Rights Reserved.
Slide 7: FY2019/5 Consolidated Results for Q3
FY2019/5 Consolidated Results for Q3 • Q1-Q3 for FY2019/5, business remained solid with net sales increasing 41.9% YonY and operating profit increasing 35.5% YonY. Net sales, however, were weak on quarterly basis, mainly in ADNW, due to changes in the advertising market environment beginning in Q2.
Slide 8: Total Number of Active Users
*1 Total Number of Active Users*1 • Further increase in active users of Gunosy App, through approach including improvement of algorithm and use of coupons. Considered to have entered into regrowth phase. • NewsPass and LUCRA marked steady growth. • As a result, rose 33% YonY in total. LUCRA NewsPass
Slide 9: Breakdown of Net Sales
Breakdown of Net Sales *1 • ADNW sales were weak, due to the impact of change in the advertising market environment which started gradually in Q2. • Gunosy Ads achieved growth due to successful user acquisition through the coupon program despite the same impact as above. (Million yen) 254 4,000 136
Slide 10: Cost Structure
Cost Structure • Along with ADNW sales decline, “Ad network costs” also decreased. • Increased costs due to the additional spending of “advertising expenses” (approx. 300 million yen) for a coupon program with strong performance. • “Other expenses” is mainly associated with the rise in costs for rev
Slide 11: FY2019 Outlook
3 FY2019 Outlook Section ２ （C） Gunosy Inc. All Rights Reserved.
Slide 12: Progress and Correction in FY2019/5 Financial Forecast
Progress and Correction in FY2019/5 Financial Forecast • Due to improvement of algorithms and additional investment of advertising expenses based on use of coupons, the full-year forecast was changed. • Additional advertising expenses were injected into the Gunosy App., which has been acquiring user
Slide 13: In Case Additional Advertising Expenses were not Spent in FY 2019/5
In Case Additional Advertising Expenses were not Spent in FY 2019/5 If strategic investment not introduced, sales and operating profit would reach 14.68 billion yen (+31% YonY) and 2.53 billion yen (+31% YonY), respectively, which is just slightly below disclosed forecast, despite the impact of chan
Slide 14: Effectiveness Measurement: Concept of Spending Advertising Expenses
E x pl a na ti on of Effectiveness Measurement: Concept of ba c k gr ound Spending Advertising Expenses We calculate the return on investment based on (1) user acquisition efficiency by advertising, (2) persistency of users (3) profitability per one user, and then make decisions on advertising expen
Slide 15: Coupon Program: Collection Period
E x pl a na ti on of ba c k gr ound Coupon Program: Collection Period In the current quarter, approximately 300 million yen of additional advertising expenses was invested in order to achieve the regrowth of the Gunosy App. If it were a regular additional advertising activity, the acquisition effici
Slide 16: Comparison of CPI of Each Apps
E x pl a na ti on of ba c k gr ound Comparison of CPI of Each Apps • In terms of CPI calculated based on the measured effectiveness of advertising cost, YonY increase rate of “Gunosy”, for which advertising expenses added, is not substantially higher than "NewsPass", with advertising expenses at a r
Slide 17: Business Overview by Division
4 Business Overview by Division （C） Gunosy Inc. All Rights Reserved.
Slide 18: Highlights by Division
Highlights by Division • The advertising expenses of the Gunosy App. increased by about 300 million yen for the coupon program, resulting in MAU to recover. Media • On March 4, we released “OTOKUL” as the second application in the current fiscal year. • In collaboration with Supership Inc., a new AD
Slide 19: (1) Gunosy
Media Business (1) Gunosy The number of brands and types of coupons is No. 1* in Japan. User acquisition using “Zero Yen” coupon program, which was implemented as a large campaign, is well under way. * Among domestic news app service (based on a survey by the Company) (as of 2019.3.7) Coupon content
Slide 20: (1) Gunosy
Media Business (1) Gunosy We are enhancing the content of official videos such as J League and Korean drama, and will continue to expand video content. Changes in the scale of users Main video content broadcast in Q3 who have completed viewing video In-house Gunosy Q production A live interactive qu
Slide 21: (2) NewsPass
Media Business (2) NewsPass We are seeking to improve user experience through the enhancement of video content. Number of use of comments showed substantial growth by implementation of campaign. • We started development of coupon functions, which started in Q4 (March). We plan to provide more daily-
Slide 22: (3) LUCRA
Media Business (3) LUCRA With the introduction of new content including the coupon program, the service continued to be the largest media outlet oriented to women in the Japanese market in terms of the number of active users. Based on a survey by the Company (Refer to App Annie) Introducing new cont
Slide 23: (4) Game8
Media Business (4) Game8 Both sales and operating profit continued to set record highs. Already gained a large share in the domestic game guide area, which has been driving growth, and became a more stable profit-generating business. We will use resources in new areas while supporting steady growth
Slide 24: Ad Network (ADNW)
Advertising Business Ad Network (ADNW) The change in the advertising market environment, which began in the middle of Q2, has been having an impact over three months, resulting in the number of impressions to decline. CPM (Cost Per Mile) also decreased proportionately. Although we do not expect busi
Slide 25: Advertisers
Advertising Business Advertisers We focused on sales activities for the existing major advertisers*with the purpose of increasing sales per customer. In Q3, however, the impact of the change in the advertising market environment became apparent, especially in Health and Beauty care segments, while A
Slide 26: Existing Advertisers
Advertising Business Existing Advertisers In collaboration with Supership Inc., a new ADNW that utilizes data including data from communication carriers was developed. Strengths of ScaleOut Ad Network • A variety of data, including data from communication carriers Supership hold • Security through m
Slide 27: New Advertisers (digwell and VIDPOOL)
Advertising Business New Advertisers (digwell and VIDPOOL) As for digwell, sales of app-related projects increased steadily, despite the influence of changes in the advertising market environment. As for VIDPOOL, revenue increased steadily due to the increase in number of video views in Gunosy. Pay-
Slide 28: Gunosy Capital
Investment Business Gunosy Capital We carried out the second project, which is an investment in Instamojo Inc., largest online payment service for small businesses in India. Overview of investee Company name: Instamojo, Inc. Head office: Bangalore, Karnataka, India Representative: Sampad Swain Estab
Slide 29: Reference Materials: Overview of Gunosy Inc.
Appendix Reference Materials: Overview of Gunosy Inc. （C） Gunosy Inc. All Rights Reserved.
Slide 30: Overview of Gunosy Inc.
Overview of Gunosy Inc. We aim for speedy and fair decision-making with a small board of directors in which outside directors account for half. Basic Information ・Company name: Gunosy Inc. ・Officers:Representative Director and CEO, ・Representative: Yuya Taketani Yuya Taketani ・Established: November
Slide 31: 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 32: Business Model of Our Main Business
Business Model of Our Main Business We aim to coexist with various stakeholders based on making use of our strengths in the Internet advertising business with our own media. Newspaper Users companies, etc. Provide news content Offer ￥ news for free Our own Payment media Sell ad (Payment) space Media
Slide 33: 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 34: Optimally deliver information to people around the world
Optimally deliver information to people around the world