Gunosy, Inc. · TSE:6047
Gunosy — Q2 FY2017/5 Earnings Presentation
34 slides from Gunosy's earnings presentation, Jan 13, 2017
Slide 1: Financial Results Presentation for the 2nd Quarter of FY ending May 2017
Financial Results Presentation for the 2nd Quarter of the Fiscal Year ending May 31, 2017 Gunosy Inc. Jan 13, 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. First Half Results 3. Results Forecast 4. Overview of Business and Strategies 5. Supplementary Materials ©Gunosy Inc. 3
Slide 4: Summary of Quarterly Results
1. Summary of Quarterly Results Both sales and profits increased from the previous quarter for the fifth consecutive quarter, with rises in sales to 1,950 million yen and operating income to 370 million yen. Continued to mark a record high and grew steadily. Sales in Gunosy Ads: 1,283 million yen
Slide 5: Quarterly Results: Chronological Trends
1. Quarterly Results: Chronological Trends Both sales and operating income reached record highs, with sales at 1,950 million yen (up 17% QoQ) and operating income at 370 million yen (up 53％ QoQ). (Million yen) 2,200 2,000 = Sales 1,959 = Operating income 1,800 = Operating income (excluding adverti
Slide 6: Quarterly Results: Breakdown of Sales
1. Quarterly Results: Breakdown of Sales Sales in Gunosy Ads increased 9% quarter on quarter due to a steady increase in the number of active users and the commencement of the monetization of News Pass. Sales in ADNW continued to record a high growth rate, up 31% quarter on quarter, reflecting i
Slide 7: Quarterly Results: Consolidated Statement of Income
1. Quarterly Results: Consolidated Statement of Income Operating income rose significantly (up 191% year on year and 53% quarter on quarter) due to an increase in marginal income as a result of the increase in sales. The operating margin stood at 19%, up 6 percentage points year on year and up 5
Slide 8: Quarterly Results: Cost Structure
1. Quarterly Results: Cost Structure Advertising expenses increased by 90 million yen, taking into account the recent status of sales, etc. and the cost-benefit performance. Rents were reduced due to the termination of the contract for the former office. (Unit: Million yen) FY2016/5 FY2017/5 2Q*
Slide 9: 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) The pace of increase in DLs accelerated with the release of News Pass. The number of DLs increased 2.22 million quarter on quarter. CPA improved significantly. (10,000 DLs) (Ye
Slide 10: Quarterly Results: Attributes of Users
1. Quarterly Results: Attributes of Users (users of Gunosy) The percentage of women rose slightly. The distribution of users in their 20s, 30s, 40s, and 50s is well-balanced. Women Men Breakdown of women Breakdown of men 50s or older 10s 44.5% 55.5% 50s or 10s older 7% 4% 10% 7% 20s 20s 40s 40s 26
Slide 11: Quarterly Results: Status of Advertisers
1. Quarterly Results: Status of Advertisers The number of active advertisers continued to increase as a result of the development of new agencies. The share of “Health” increased with the addition of advertisers associated with the new agencies. Share of advertisers displaying advertisements Numbe
Slide 12: Quarterly Results: Active Affiliated Media in ADNW
1. Quarterly Results: Active Affiliated Media in ADNW Affiliated media were added steadily, making a significant contribution to the growth of sales. Structure of ADNW Number of active affiliated media (Number of media) 636 Users 603 Displaying Delivery 600 Advertiser Media A A ads 536 495 500 445
Slide 13: Table of Contents
Table of Contents 1. Quarterly Results 2. First Half Results 3. Results Forecast 4. Overview of Business and Strategies 5. Supplementary Materials ©Gunosy Inc. 13
Slide 14: First Half Results: Consolidated Statement of Income
2. First Half Results: Consolidated Statement of Income Operating income rose significantly (up 251% year on year and up 61% from the previous half) given an increase in marginal income as a result of the increase in sales. The operating margin stood at 17%, up 8 percentage points year on year a
Slide 15: First Half Results: Comparison of Forecasts and Results
2. First Half Results: Comparison of Forecasts and Results in First Half In the first half, both sales and income far exceeded the initial forecasts. Consolidated results Initial forecasts for first half (published on July 14, 2016) Forecast Result Sales 2,974 million yen +664 million yen Operatin
Slide 16: First Half Results: Comparative Analysis
2. First Half Results: Comparative Analysis Operating income increased 230 million yen from the second half of the previous fiscal year, attributable to a significant increase in sales, which was partially offset by increases in advertising, personnel, and other expenses. Operating income increa
Slide 17: First Half Results: Consolidated Balance Sheet
2. First Half Results: Consolidated Balance Sheet With the acquisition of a company to strengthen our Web service, intangible assets (goodwill) increased. (Unit: Million yen) End of previous End of first half Major breakdown at end of first Account item Change fiscal year under review half under r
Slide 18: Table of Contents
Table of Contents 1. Quarterly Results 2. First Half Results 3. Results Forecast 4. Overview of Business and Strategies 5. Supplementary Materials ©Gunosy Inc. 18
Slide 19: Results Forecast: Full-Year Results Forecast
3. Results Forecast: Full-Year Results Forecast The initial full-year sales and income forecasts are revised significantly upward. Consolidated results Revised Initial full-year forecasts (published on July 14, 2016) Initial forecast Revised forecast full-year forecast for FY2017/5 Sales 6,506 mil
Slide 20: Results Forecast: Description of Revision
3. Results Forecast: Description of Revision The number of DLs in the full year is expected to be 23.11 million, given an increase in the first half. Sales of Gunosy Ads and ADNW are expected to be strong, and operating income is forecast to exceed the initial forecast by 557 million yen. Expect
Slide 21: Table of Contents
Table of Contents 1. Quarterly Results 2. First Half Results 3. Results Forecast 4. Overview of Business and Strategies 5. Supplementary Materials ©Gunosy Inc. 21
Slide 22: Strategies: Overview
4. Overview of Business and Strategies: Overview Up to now From now on Key Increasing user numbers Continuing to increase user numbers policies Establishing advertising business Strengthening advertising business Developing algorithms using accumulated data and applying them in other field
Slide 23: Strategies: News Pass Released
4. Overview of Business and Strategies: News Pass Released News Pass DLs increased steadily. The number of DLs exceeded 1.46 million in six months after it was released. TV commercials and tie-ups are planned from Q3 to accelerate the expansion of users. Achievement up to now Initiatives from no
Slide 24: Strategies: Alliances with External Partners
4. Overview of Business and Strategies: Alliances with External Partners The alliances with external ads tech partners, CyberAgent, Inc. and Supership Inc., formed in the previous fiscal year made steady progress. The alliances are making significant contributions to sales in Gunosy Ads and ADNW
Slide 25: Strategies: Use of Age Estimation Logic for Advertising Delivery
4. Overview of Business and Strategies: Use of Age Estimation Logic for Advertising Delivery Introduce user age estimation logic using deep learning; improve the accuracy of age estimation significantly. Use age estimation logic for advertising delivery to improve advertising effectiveness and i
Slide 26: Strategies: Direction of the Development of Algorithms
4. Overview of Business and Strategies: Direction of the Development of Algorithms Work to strengthen algorithms in response to social changes and challenges for the improvement of the quality of content to be distributed and fine-tuned personalization. Social changes and challenges Direction of d
Slide 27: Strategies: Management Support to Kurio and Its Effects
4. Overview of Business and Strategies: Management Support to Kurio and Its Effects Product improvement has been making progress steadily. Major KPIs are favorable. Marketing support has been strengthened. The cumulative total number of DLs has reached 1.11 million. Promotions, including TV comm
Slide 28: Strategies: Research and Development
4. Overview of Business and Strategies: Research and Development Start research and development of new products in areas where there is asymmetry of information and algorithms and data developed in Gunosy can be used, and in areas where growth is expected. Create new major sources of revenue. Re
Slide 29: Strategies: Medium- to Long-Term Image
4. Overview of Business and Strategies: Medium- to Long-Term Image Aim to achieve high rates of growth in News Pass in addition to the existing businesses (Gunosy, ADNW and Game8). Allocate resources (human resources and funds) proactively to new businesses, including overseas expansion, in orde
Slide 30: Table of Contents
Table of Contents 1. Quarterly Results 2. First Half Results 3. Results Forecast 4. Overview of Business and Strategies 5. Supplementary Materials ©Gunosy Inc. 30
Slide 31: 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 32: 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 33: Business Model: Gunosy Ads
Business Model： ①Gunosy 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 frequen
Slide 34: Business Model: Ad Network
Business Model： ②Ad 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 (① Gunosy Ads), we release Gunosy Ad Network service, whi