Geechs Inc. · TSE:7060
Geechs — Q3 FY3/2024 Earnings Presentation
33 slides from Geechs's earnings presentation, Feb 9, 2024
Slide 1: Financial Results Briefing for Q3 FY Ending March 2024
Financial Results Briefing The 3rd Quarter of the Fiscal Year Ending March 31, 2024 February 9, 2024 GEECHS Inc. TSE Standard Market: 7060 ©2024 GEECHS Inc.
Slide 2: Contents
Financial Results Briefing 1. Financial Highlights 2 2. Results by Segment 7 3. Appendix 14 Contents 1 Financial Results Briefing for the 3rd Quarter of the Fiscal Year Ending March 31, 2024 ©2024 GEECHS Inc.
Slide 3: Financial Highlights
Financial Results Briefing Financial Highlights Financial Highlights for FY3/2024 3Q 1 2 Financial Results Briefing for the 3rd Quarter of the Fiscal Year Ending March 31, 2024 ©2024 GEECHS Inc.
Slide 4: FY3/24 3Q: Financial Highlights
FY3/24 3Q: Financial Highlights Cumulative 3Q sales reached 17.8 billion yen, 50.7% YoY growth. • 3Q sales grew by +41.3% YoY, driven by the solid performance of IT freelance matching business (Japan) and contributions from IT freelance matching business (Overseas). • G2 Studios business secured for
Slide 5: Financial Highlights (Sales, Operating Margin)
FY3/24 3Q: Financial Highlights (Sales, Operating Margin) ■ 3Q sales resulted 5.9 billion yen, with steady performance of IT freelance matching business (Japan). ■ The sales decreased 102 million yen compared to the previous quarter, but the overall progress remains in line with the revised full-yea
Slide 6: Financial Highlights (EBITDA, Operating Profit)
FY3/24 3Q: Financial Highlights (EBITDA, Operating Profit) ■ The operating profit for IT freelance matching business (Japan) has been steadily secured. The negative impact on consolidated operating profit is due to G2 Studios business. ■ G2 Studios business secured one order for a new development ti
Slide 7: Financial Highlights by Segment
FY3/24 3Q: Financial Highlights by Segment ■ IT Freelance Matching Business (Japan) : Cumulative sales for 3Q exceeded 10 billion yen, showing +11.3% YoY growth. ■ IT Freelance Matching Business (Overseas) : Progress is in line with the revised full-year forecast. Anticipating sales contributions fr
Slide 8: Results by Segment
Financial Results Briefing Results by Segment Financial Results for FY3/2024 3Q 2 7 Financial Results Briefing for the 3rd Quarter of the Fiscal Year Ending March 31, 2024 ©2024 GEECHS Inc.
Slide 9: IT Freelance Matching Business (Japan) Sales and Segment Income
IT Freelance Matching Business (Japan) (Sales, Segment Income and Advertising Expense Ratio) ■ 3Q sales reached 3.5 billion yen, marking the record-high quarterly sales. 3Q (YoY) ■ Segment profit resulted 267 million yen due to investments in strengthening the business structure although the adverti
Slide 10: IT Freelance Matching Business (Japan) Freelancers, Unit Price
IT Freelance Matching Business (Japan) (Freelancers Under Contract, Unit Price of Orders) ■ In the gradually normalizing post COVID-19 economic conditions, the gap in the work contract preferences (on-site/ 100% remote/hybrid) between IT freelancers and client companies is gradually narrowing. Resul
Slide 11: IT Freelance Matching Business (Japan) Business Partners, New Registrants
IT Freelance Matching Business (Japan) (Number of Business Partners, Number of New Registrants) ■ The number of new client companies increased by 139 in cumulative 3Q, continuing to show a strong trend. ■ The number of new registrations for IT freelancers reached 1,078 in cumulative 3Q, showing a st
Slide 12: IT Freelance Matching Business (Overseas)
IT Freelance Matching Business (Overseas) (Sales, EBITDA and Segment Income) ■ The factor behind the decline in sales since the previous quarter is the delayed commencement of 3Q the MSP*1 project. ■ Sales contribution from the MSP project is expected to start from 4Q onwards. Sales*2 1,751 million
Slide 13: G2 Studios
G2 Studios (Sales, Segment Income, Others) 3Q (YoY) ■ The impact of the delayed new order from the previous quarter continued, sales in 3Q resulted 505 million yen. ■ The recurring sales ratio declined due to the downsizing of management titles in operation scheduled for Sales 505 million yen termin
Slide 14: Seed Tech (Sales, Segment Income)
Seed Tech (Sales, Segment Income) ■ 3Q sales reached 68 million yen, in line with the company plan. ■ Offshore development continued to perform well, with +49.8% sales increase in cumulative 3Q compared to the same period last year. ■ Segment profit resulted -18 million yen, attributed to temporary
Slide 15: Appendix
Financial Results Briefing Appendix 3 14 Financial Results Briefing for the 3rd Quarter of the Fiscal Year Ending March 31, 2024 ©2024 GEECHS Inc.
Slide 16: GEECHS Group [geek x tech]
GEECHS Group [ geek × tech ] Partnering with technological groups with a wealth of eminent expertise in the IT and Internet fields, GEECHS supports the work styles of all those involved to provide all sorts of value through our technologies. 15 Financial Results Briefing for the 3rd Quarter of the F
Slide 17: 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 18: 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 G2 Studios Business Business (Overseas) Shibuya Scramble Square
Slide 19: 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 20: 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 3,550 ■ HR Tech ■ EC ■ Ed Tech ■ Game client
Slide 21: 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 22: 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 23: Connect with IT Freelancers
Connect with IT Freelancers Improve engagement by having effective contact with IT freelancers over the long term Registration Boost exposure Lead acquisition Matching Negotiations Contract Start interview Marketing Automation Lead Generation Lead Nurturing Customer Success ■ Web Marketing ■ One-to-
Slide 24: 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 25: Engagement
Engagement Strengthening ongoing partnerships to maximize business by increasing engagement with IT freelancers Offering 50 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 26: 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 27: Seed Tech
Seed Tech 1. Providing “Sodatech”, a DX/IT human resource Development business - Offshore development business development service for companies Education business - Sodatech for developing global IT freelancers, IT study abroad Providing a SaaS-type DX/IT human resource development platform for cor
Slide 28: G2 Studios
G2 Studios 1. Specialists in Partner Strategy With solid technical capabilities centered on Unity / PHP, we have stabilized our revenue base through contract development and operations, winning revenue share from successful titles. We have also increased orders for globally distributed titles. 2. Ac
Slide 29: Differences between Developer and Publisher
Differences between Developer and Publisher The future strategy of the Game Business is to become a developer of globally distributed titles. Developer (GEECHS) Publisher Main role Planning, development, and operation of titles Planning, distribution and promotion of titles ● Planning and developmen
Slide 30: G2 Studios: Business and Revenue Image
G2 Studios: Business and Revenue Image Business Model Revenue Image ◼ G2 Studios is a developer specifically contracted by major game companies ◼ Since stable revenue recognition has become possible during the planning and (publishers) for the planning, development and operation of games. developmen
Slide 31: Performance Highlights
Performance Highlights Fiscal Year-End FY3/21 FY3/22 FY3/23 FY3/24 3Q FY3/24 Forecast Sales (Thousand yen) 3,427,816 14,340,774 15,997,838 17,787,028 24,400,000 EBITDA (Thousand yen) 815,495 1,226,900 651,393 263,939 300,000 Operating income (Thousand yen) 738,479 1,133,696 589,410 57,743 50,000 Ord
Slide 32: Supplemental Data (IT Freelance Matching Business, Japan)
Supplemental Data (IT Freelance Matching Business, Japan) FY3/2023 FY3/2024 Fiscal Year-End 1Q 2Q 3Q 4Q Full-year 1Q 2Q 3Q Sales (Thousand yen) 3,014,968 3,117,730 3,236,528 3,393,625 12,762,853 3,460,652 3,447,026 3,519,688 Advertising expense* (Thousand yen) 43,435 70,656 90,096 119,050 323,238 10
Slide 33: Notes regarding Forward-Looking Statements
Notes regarding Forward-Looking Statements geechs.com 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 results may differ due t