Gunosy, Inc. · TSE:6047
Gunosy — Q1 FY2019/5 Earnings Presentation
33 slides from Gunosy's earnings presentation, Oct 12, 2018
Slide 1: FY2019/5 Financial Results for Q1
FY2019/5 Financial Results for Q1 Gunosy Inc. First Section of The Tokyo Stock Exchange Stock (Code: 6047) October 12, 2018
Slide 2: INDEX
INDEX Financial Results for FY2019 Q1 1 FY2019/5 Financial Results for Q1 P3 FY2019 Outlook 2 FY2019/5 Results Forecast P15 Business Overview by Division 3 Business Overview P17 APPENDIX 4 Reference Materials: Overview of Gunosy Inc. P27 (C) Gunosy Inc. All Rights Reserved.
Slide 3: FY2019/5 Financial Results for Q1
Financial Results for FY2019 Q1 1 FY2019/5 Financial Results for Q1 (C) Gunosy Inc. All Rights Reserved.
Slide 4: Highlights of Financial Results
Highlights of Financial Results Outline of P/L for Q1 of the fiscal year ending in May 2019 YonY Net sales 3.70 billion yen +1.28 billion yen (+53.3%) Operating profit 0.79 billion yen +0.37 billion yen (+90.3%) Ordinary profit 0.79 billion yen +0.37 billion yen (+90.3%) Profit 0.54 billion yen +0.2
Slide 5: Summary
Summary Topics • We had reduced the advertising expenses for Gunosy by 300 million yen annually since last year and anticipated a decrease in DAU. • However, acquisition on a new promotional strategy was steady, and DAU remained stable. • The existing businesses of NewsPass, LUCRA, ADNW and subsidia
Slide 6: FY2019/5 Consolidated Results for Q1
FY2019/5 Consolidated Results for Q1 With the contribution of the growth of new business pillars other than Gunosy, sales increased by 53.3% year on year. As a result, the progression rate of operating profit is good, at 31.7%. (Million yen) Quarter Full year FY2018/5 FY2019/5 2018/7/12 Progression
Slide 7: FY2019/5 Factors for Increase in Profit in Q1
FY2019/5 Factors for Increase in Profit in Q1 More than the decrease in advertising expenses for Gunosy, sales growth in Gunosy Ads and ADNW, including NewsPass and LUCRA, made a significant contribution to the increase in profit. (Million yen) 800000000 -414 582 -373 43 330 78 400000000 127 792 416
Slide 8: Financial Results (Quarterly)
Financial Results (Quarterly) Net sales set a record high for 12 consecutive quarters, at 3.70 billion yen. Operating profit was 0.79 billion yen, a significant increase from the record-high amount in FY2018 Q4. Net Sales and Operating Profit FY2019 Q1 3.70 billion yen (Million yen) 3,500 3,322 2,70
Slide 9: Breakdown of Net Sales
Breakdown of Net Sales All the net sales of Gunosy Ads, ADNW and Game8 Inc. set record highs, which means that the diversification of profits is progressing. (Million yen) 4,000 258 Others 151 (Game8) 208 (ADNW) 201 9 47 (Gunosy Ads)*1 3 148 167 1,398 12 5 89 1,182 16 2,000 75 974 1,067 49 62 815 39
Slide 10: Cost Structure
Cost Structure Variable costs (ADNW costs, costs for revenue sharing with KDDI) increased, mainly associated with the rise in net sales. The cost structure remained stable. Cost Structure (Million yen) 3,000 2,908 2,753 806 Other expenses 2,313 678 2,198 1,997 40 Live video production expenses 547 1
Slide 11: Cumulative Total of Downloads
Cumulative Total of Downloads CPA was at its lowest during the period from FY2015 due to the significant increase in the number of downloads of NewsPass and LUCRA. (10,000 DLs) 4,000 36.37 million DLs (Yen) 450 LUCRA News Pass 3,354 Gunosy CPA 3,084 2,799 2,515 300 2,268 2,043 2,000 1,841 1,618 1,43
Slide 12: Total Number of Active Users
Total Number of Active Users*1 The total number of active users of Gunosy, which reduced its advertising expenses, remained stable due to new content, etc. The MAU of NewsPass has grown to the same level as Gunosy, and diversification is also progressing in terms of active users. Rose 38.7% YoY LUCR
Slide 13: Advertisers
Advertisers The number of advertisers decreased because we focused on sales activities for the existing major advertisers* with the aim of increasing the unit costs for customers. Along with the growth of LUCRA, the share of the Health and Beauty care segments continued to increase. Number of Active
Slide 14: Ad Network (ADNW)
Ad Network (ADNW) To acquire good advertising inventories, we strengthened sales activities and improved the delivery algorithm. As a result, CPM* improved significantly, which contributed to increased sales. Number of Impressions and CPM (Million imp) 45,000 ¥40 imp CPM ¥36.84 39,585 39,529 38,610
Slide 15: FY2019/5 Results Forecast
FY2019 Outlook 2 FY2019/5 Results Forecast （C） Gunosy Inc. All Rights Reserved.
Slide 16: FY2019/5 Results Forecast
FY2019/5 Results Forecast Reflecting the good performance in Q1 and the sales forecast of investment securities in Q2, we corrected the intermediate and full-year forecasts. The performance forecasts in Q2 and onwards remained unchanged, anticipating investments in new media. (Million yen) Intermedi
Slide 17: Business Overview
Business Overview by Division 3 Business Overview （C） Gunosy Inc. All Rights Reserved.
Slide 18: Enhancement of Management Team
Whole company Enhancement of Management Team To promote separation between management and execution, we strengthened our outside executives. Director (Outside) Director (Outside) Director (Outside) Suguru Tomiduka Hiroki Teshima Hirokazu Mashita Joined Recruit Co., Ltd. (now Recruit Joined Hakuhodo
Slide 19: Highlights by Division
Highlights by Division • Acquisition on the new promotional strategy remained good in Gunosy, and full scale promotion will take place in Q2 and thereafter. Media Business Unit • The development of new applications other than NewsPass and LUCRA progressed strongly, and it is anticipated that some of
Slide 20: (1) Gunosy
Media Business (1) Gunosy Diversification of content, improvement of quality and cutting out of applications progressed well. Diversification of content • Since coupons were newly introduced to Gunosy and it was proved that they were effective for acquiring new users, we will begin enhancing its pro
Slide 21: (2) NewsPass
Media Business (2) NewsPass Strengthening of content such as disaster information and enhancement of services by utilizing KDDI assets progressed well. Strengthening of essential functions as a news application • The function that reads out all disasters and other important news was added. Improveme
Slide 22: (3) LUCRA
Media Business (3) LUCRA LUCRA also continued to undertake information diversification and the release of new functions. Information diversification Improvement of quality • Live programs are still broadcast, and • The Media Follow-up and Tab new programs are in planning. Features were released. • N
Slide 23: (4) Game8
Media Business (4) Game8 Both sales and operating profit continued to set record highs, with operating sales reaching 95 million yen. In future, we will accelerate growth by expanding the functions other than game strategy articles. Sales and Operating profit New Driver for Growth Sales: Up 129%* 20
Slide 24: Existing Advertisers
Advertising Business Existing Advertisers Monetization through tie-up advertisements using live videos has started smoothly. The profit of ADNW was greatly improved due to the improved delivery algorithm. Tie-up Advertisements Using Live Videos Improvement of ADNW Delivery Algorithm Brand A A new pr
Slide 25: New Advertisers (digwell and VIDPOOL)
Advertising Business New Advertisers (digwell and VIDPOOL) Affiliate advertising orders remained good, and the sales of the subsidiary, digwell, increased. The new company, VIDPOOL, launched a video advertising network business. We will strengthen sales activities with the aim of expanding delivery
Slide 26: LayerX
BC Business LayerX We participated in Cryptorealty, a project for creating a marketplace utilizing the blockchain, together with Tsukuruba Inc., with which we performed a collaborative project. Project Partner company Partner company Representative Director Yoshinori Representative Director & CEO Fu
Slide 27: Reference Materials: Overview of Gunosy Inc.
Appendix Reference Materials: Overview of Gunosy Inc. (C) Gunosy Inc. All Rights Reserved.
Slide 28: Overview of Gunosy Inc.
Overview of Gunosy Inc. Basic Information ・Company name: Gunosy Inc. ・Officers:Representative Director and CEO, ・Representative: Yuya Taketani Yuya Taketani ・Established November 14, 2012 Representative Director and COO, Tetsuya Nagashima ・Fiscal year: May Director, Yoshinori Fukushima ・Capital: 4,0
Slide 29: Directors
Directors Representative Director and CEO Director and COO Director Director Yuya Taketani Tetsuya Nagashima Yoshinori Fukushima Shinji Kimura Graduated from the Department of Industrial and Graduated from the Faculty of Science and Graduated from the Graduate School of Engineering of Graduated from
Slide 30: Business Model: Gunosy Ads
Business Model: Gunosy Ads News Revenue Interests Targeted advertisement delivery by interest cluster Gunosy Users AD Impression- Click-guaranteed (CPC = Cost per Click) guaranteed (CPM = Cost per Mille) Features 1. In-feed advertisements (ads inserted into articles) enhance visibility 2. Highly fre
Slide 31: Business Model: Ad Network
Business Model: Ad Network In addition to delivering advertisements inside Gunosy (Gunosy Ads), we release Gunosy Ad Network service, which delivers ads to external partner media. Currently, more than 600 media outlets have introduced this service. Advertiser A Media A Advertiser B Media B Advertise
Slide 32: 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 33: Optimally deliver information to people around the world
Optimally deliver information to people around the world