Gunosy, Inc. · TSE:6047
Gunosy — FY2017/5 Earnings Presentation
29 slides from Gunosy's earnings presentation, Jul 14, 2017
Slide 1: Financial Results Presentation for the Fiscal Year ending May 31, 2017
Financial Results Presentation for the Fiscal Year ending May 31, 2017 Gunosy Inc. July 14, 2017
Slide 2: 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 3: Table of Contents
Table of Contents 1. Quarterly Results 2. Full Year Results 3. Overview of Business and Strategies 4. Results Forecast 5. Supplementary Materials © Gunosy Inc. 3
Slide 4: 1. Summary of Quarterly Results
1. Summary of Quarterly Results n Net sales increased from the previous quarter for the seventh consecutive quarter, to 2,110 million yen. Operating income was 430 million yen, reflecting significant advertising expenses. Operating income excluding advertising expenses was 890 million yen, a record
Slide 5: 1. Quarterly Results: Chronological Trends
1. Quarterly Results: Chronological Trends n Net sales stood at 2,110 million yen (up 7% QoQ), another record high. n Operating income was 430 million yen (down 7% QoQ), reflecting an addition to advertising expenses. Operating income excluding advertising expenses came to 890 million yen, a record
Slide 6: 1. Quarterly Results: Breakdown of Sales
1. Quarterly Results: Breakdown of Sales n Net sales in Gunosy Ads rose 8% quarter on quarter, reflecting a steady increase in the number of active users. n Net sales in ADNW increased 3% quarter on quarter, recovering from the previous quarter, when sales declined temporarily due to the adoption of
Slide 7: 1. Quarterly Results: Cost Structure
1. Quarterly Results: Cost Structure n Advertising expenses exceeded the plan by 40 million yen in consideration of the recent status of net sales and cost-benefit performance, etc. n Others increased due to a rise in revenue share expense paid to KDDI associated with Gunosy Ads (News Pass). (Unit:
Slide 8: 1. Quarterly Results: Trends in the Number of Downloads
1. Quarterly Results: Trends in the Number of Downloads (Cumulative total number in Japan; including News Pass downloads) n CPA for Gunosy, which rose temporarily, improved from the previous quarter. The number of DLs increased 1.4 million quarter on quarter, reflecting an addition to advertising ex
Slide 9: 1. Quarterly Results: Active Users
1. Quarterly Results: Active Users (Cumulative total in Japan; including News Pass users) n The number of active users* has grown steadily since the founding. The number rose 50% year on year and 9% quarter on quarter. n The percentage of users of both Gunosy and News Pass** was less than 5%. Number
Slide 10: 1. Quarterly Results: Status of Advertisers
1. Quarterly Results: Status of Advertisers n The total number of active advertisers declined, but the number of major advertisers*, which account for approximately 90% of sales, continued to rise. n The share of Beauty care continued to decline, while the share of Apps (excluding games) rose. Share
Slide 11: 2. Full Year Results
1. Quarterly Results 2. Full Year Results 3. Overview of Business and Strategies 4. Results Forecast 5. Supplementary Materials © Gunosy Inc. 11
Slide 12: 2. Full Year Results: Comparison with Results Forecast
2. Full Year Results: Comparison with Results Forecast n Net sales stood at 7.73 billion yen, 100% of the forecast. Operating income came to 1.51 billion yen, 7% more than the forecast. Net income was 1.12 billion yen, 2% more than the forecast. Consolidated results Percentage of forecast (announced
Slide 13: 2. Full Year Results: Year on Year
2. Full Year Results: Year on Year n An increase in marginal profit due to a rise in sales far exceeded an increase in fixed cost. Operating income stood at 1.51 billion yen, an increase of 0.95 billion yen (170%) year on year. n The operating margin improved to 20%, up 7 percentage points from the
Slide 14: 3. Overview of Business and Strategies
1. Quarterly Results 2. Full Year Results 3. Overview of Business and Strategies 4. Results Forecast 5. Supplementary Materials © Gunosy Inc. 14
Slide 15: Strategies: Summary
3. Overview of Business and Strategies: Summary n Aim to achieve further growth by combining technology and media management n Get back to basics: strengthening personalization and targeting logic. Change the strategy from multiple functions and a single application to a single function and multiple
Slide 16: Strategies: Gunosy, Video
3. Overview of Business and Strategies: Gunosy, Video n The video distribution algorithm that has been developed in the research and development of Viderey and Gunosy will be integrated. The integration is intended to expand the stay-time of Gunosy and achieve a share in the video advertising market
Slide 17: Strategies: News Pass
3. Overview of Business and Strategies: News Pass n DLs exceeded 3 million in a year after it was released. The algorithm has been updated, and a quick reporting tab has been released. KPIs are improving. n In collaboration with Weathernews Inc., Gunosy is preparing a scheme that will be able to pro
Slide 18: Strategies: LUCRA
3. Overview of Business and Strategies: LUCRA n An application in the field of general information for women using Gunosy’s strengths: information analysis and distribution technologies and relationships with media n Aim for the acceleration of the expansion of the number of users and early monetiza
Slide 19: Strategies: Bazzary
3. Overview of Business and Strategies: Bazzary n Leverage Gunosy’s information distribution technologies, including data analysis technology and algorithms, in the field of e-commerce, which is growing remarkably. n Aim to create a user experience where anyone can make good purchases easily using a
Slide 20: Strategies: Game8
3. Overview of Business and Strategies: Game8 n PMI (Post Merger Integration), including the establishment of an internal control system, the introduction of KPI-based management, and the strengthening of sales capability, has been completed. The business is moving into a growth phase. n Major KPIs
Slide 21: Strategies: Medium- to Long-Term Image
3. Overview of Business and Strategies: Medium- to Long-Term Image n Aim to achieve continued growth in existing businesses by enhancing personalization and algorithms and advertising delivery logic. n Aim to achieve further growth by expanding business domains into the non-news domain. (Profits) Ne
Slide 22: 4. Results Forecast
1. Quarterly Results 2. Full Year Results 3. Overview of Business and Strategies 4. Results Forecast 5. Supplementary Materials © Gunosy Inc. 22
Slide 23: 4. Results Forecast
4. Results Forecast n Full-year consolidated net sales, operating income, and net income are forecast to be 10.74 billion yen, 2.20 billion yen, and 1.47 billion yen. Both net sales and income are expected to increase for the fourth consecutive year. Growth rates are forecast to be high. n Advertisi
Slide 24: 5. Supplementary Materials
1. Quarterly Results 2. Full Year Results 3. Overview of Business and Strategies 4. Results Forecast 5. Supplementary Materials © Gunosy Inc. 24
Slide 25: Company Profile
Company Profile Company name: Gunosy Inc. Business: Development and operation of information circulation service and other media Corporate philosophy: “Optimally deliver information to people around the world” Established: November 14, 2012 Head office: Roppongi Hills Mori Tower, 6-10-1 Roppongi, Mi
Slide 26: Directors
Directors Representative Director and CEO Representative Director and COO Director and CFO Director Yoshinori Fukushima Yuya Taketani Mitsushige Ito Tetsuya Nagashima Graduated from the Graduate School of Graduated from the Department of Graduated from the Graduate School of Graduated from the Facul
Slide 27: Algorithm for Content Distribution
Algorithm for Content Distribution Thousands of articles per day Choosing articles using an algorithm Creating a list To users Media company Media company lClassification Media lDetermining the same company lGathering articles events (crawling) lConsidering user attributes lReal time articles (Colla
Slide 28: Business Model: Gunosy Ads
Business Model： Gunosy Ads Revenue • Targeting advertisement delivery by • interest cluster • Charging method • Click-guaranteed (CPC = Cost per Click) • Impression-guaranteed (CPM = Cost per Mille) Features • In-feed advertisements (ads inserted into • articles) enhance visibility • Highly frequent
Slide 29: Business Model: Ad Network
Business Model： Ad Network Users Advertiser Displaying Delivery Media A A ads Advertiser Media B B Gunosy Advertiser C Ad Network Media C Server Advertiser Media D D Advertiser Media E E In addition to delivering advertisements inside Gunosy (Gunosy Ads), we release Gunosy Ad Network service, which