Wantedly, Inc. · TSE:3991
Wantedly — Q2 FY2024 Earnings Presentation
40 slides from Wantedly's earnings presentation, Apr 12, 2024
Slide 1: FY2024 Q2 Financial Results
FY2024 Q2 Financial Results April 12, 2024 ©2024 Wantedly, Inc
Slide 2: Table of Contents
Table of Contents 1. Highlights 2. FY2024 Q2 Results 3. FY2024 Forecast 4. Future Outlook ©2024 Wantedly, Inc
Slide 3: Highlights
01 Highlights ©2024 Wantedly, Inc
Slide 4: Highlights: FY2024 Q2 Results, FY2024 Forecast
Highlights | FY2024 Q2 Results, FY2024 Forecast • Operating Revenue was 1,159 million yen in Q2 (3 months) and totaled 2,327million yen for Q1-Q2 (6 months), down 3% YoY. Results • Operating Profit was 351 million yen in Q2 (3 months) and totaled 745 million yen for Q1-Q2 (6 months), down 6% YoY. •
Slide 5: FY2024 Q2 Results
02 FY2024 Q2 Results ©2024 Wantedly, Inc
Slide 6: Both operating revenue and operating profit decreased
FY2024 Q2 Results | Quarterly Overview Both operating revenue (¥M) FY23.8 FY24.8 FY24.8 YoY QoQ Q2 Q1 Q2 and operating profit Operating 1,209 1,168 1,159 96% 99% decreased Revenue Operating 448 394 351 78% 89% Pro t • Operating revenue and operating profit (Margin) 37% 34% 30% - - declined in both Q
Slide 7: Operating Revenue: Quarterly Trends
FY2024 Q2 Results | Operating Revenue: Quarterly Trends Stock revenues are on Add-ons & Others Subscriptions 1,186 1,209 1,184 an increasing 1,200 1,118 1,150 1,169 1,165 1,168 1,159 1,059 238 256 220 186 193 175 • Although new acquisitions remained 230 232 1,000 241 consistent, stock revenue is on
Slide 8: Personnel increase and reinforcement of sales structure has progressed
FY2024 Q2 Results| Personnel Personnel increase and 150 reinforcement of sales 122 125 structure has progressed 112 102 according to plan 100 58 59 75 53 • New recruitment progressing according to plan. 50 • Expecting increased add-ons revenue 64 from Q3 onward due to an increased 25 49 53 workforce
Slide 9: SG&A: Quarterly Trends
FY2024 Q2 Results | SG&A: Quarterly Trends Personnel expenses Marketing 1,200 Others increased in YoY, System & Comm. Personnel continued from Q1 1,000 897 864 841 802 810 807 761 774 744 800 683 • Personnel expenses increased due to an 187 402 312 201 164 300 increase in personal to strengthen the
Slide 10: Operating Profit / OP Margin: Quarterly Trends
FY2024 Q2 Results | Operating Profit / OP Margin: Quarterly Trends Maintained high OP Margin (¥M) Operating Pro t OPM OPM(ex. Markting Expenses) 600 70% 500 60% 57% 57% 56% 55% 467 54% 53% 448 440 51% 50% 48% 48% 394 46% 400 345 355 351 40% 41% 306 300 37% 37% 257 34% 30% 220 29% 30% 30% 200 26% 24%
Slide 11: Non-financial KPIs: Quarterly Trends
FY2024 Q2 Results | Non-financial KPIs: Quarterly Trends Registered Users Registered Companies (Thousand users) (Thousand companies) 4,000 50 3,500 40 3,000 2,500 30 2,000 20 1,500 1,000 10 500 0 0 FY21.8 FY22.8 FY23.8 FY24.8 FY21.8 FY22.8 FY23.8 FY24.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q
Slide 12: Consolidated Balance Sheets / Statements of Cash Flows
FY2024 Q2 Results | Consolidated Balance Sheets / Statements of Cash Flows Consolidated Balance Sheets Consolidated Statements of Cash Flows (¥M) FY23.8 FY24.8 Q2 (¥M) FY23.8 Q2 FY24.8 Q2 Current assets 4,217 4,311 Operating cash ows 256 415 Cash and deposits 3,701 3,919 Pro t before income taxes 78
Slide 13: FY2024 Forecast
03 FY2024 Forecast ©2024 Wantedly, Inc
Slide 14: Expect increase in revenue and profit
FY2024 Forecast | Overview Expect increase in (¥M) FY23.8 FY24.8 YoY FY24.8 Progress (Forecast) Q2 revenue and profit Operating 4,746 4,825 2% 2,327 48% Revenue • Invest in sales structure and new Operating businesses while maintaining the same 1,589 1,600 1% 745 47% Pro t level of profitability as
Slide 15: Operating Revenue / SG&A: Annual Trends
FY2024 Forecast | Operating Revenue / SG&A: Annual Trends Operating Revenue SG&A Add-ons & Others 4,764 4,825 Marketing 5,000 Subscriptions 5,000 Others 4,497 System & Comm. Personnel 902 4,000 938 4,000 3,574 3,160 3,245 3,156 3,225 747 3,000 3,000 699 689 855 4,825 2,000 3,844 2,000 1,178 1,185 3,
Slide 16: Operating Profit / OP Margin: Annual Trends
FY2024 Forecast | Operating Profit / OP Margin: Annual Trends Operating Profit Operating Profit Margin OPM OPM(ex.Marketing Expenses) 2,000 60% 54% 54% 1,589 1,600 50% 48% 45% 1,500 1,251 40% 33% 33% 1,000 30% 26% 20% 500 414 12% 10% 0 FY21.8 FY22.8 FY23.8 FY24.8 FY21.8 FY22.8 FY23.8 FY24.8 *”OPM (e
Slide 17: Dividends forecast
FY2024 Forecast| Dividends forecast Dividends forecast FY23.8 FY24.8 The record date 2023/8 31 2024 8 31 Dividends per share ¥ 20 20 Net income per share ¥ 105 105 Payout ratio % 19% 19% Total dividend amount ¥M 189 189 ©2024 Wantedly, Inc 17
Slide 18: Future Outlook
04 Future Outlook ©2024 Wantedly, Inc
Slide 19: Mission
Future Outlook | Mission TO CONNECT PEOPLE WITH THE RIGHT OPPORTUNITIES, CREATING A WORLD WHERE WORK DRIVES PASSION ©2024 Wantedly, Inc 19
Slide 20: Value Proposition
Future Outlook | Value Proposition Provide unique value to enable people to be passionate in their work Value Proposition Recruitment Employee Marketing Engagement Awareness, Interest, and Applications Blogs, Social, Movies, PR, Detailed information, Events Scheduling, Candidate management, Communic
Slide 21: Focus Points
Future Outlook | Focus Points • Sales growth decelerated during the latter half of FY23, attributed to slower growth in the number of paying companies and a Reinforce Visit decrease in option sales. Slowdown in growth is due to delay in strengthening sales structure Business Structure • to meet the
Slide 22: Wantedly Visit: Easily arrange company visits
Future Outlook | Wantedly Visit iOS, Android and Web Easily arrange company visits Matching based on shared values and mission • Connect people with companies based on shared values, regardless of conditions such as salaries, benefits, and company size The new experience of, “I’m interested!” • Enab
Slide 23: Wantedly Visit - Business Model
Future Outlook | Wantedly Visit - Business Model Users Companies View Content Office workers Management HR Freelancers Employer Branding Applications Talent Scouting Students Non-HR Employees Free of charge No commissions Subscriptions + Add-ons ©2024 Wantedly, Inc 23
Slide 24: Users on Wantedly
Future Outlook | Users on Wantedly Our strength is with millennials, Generation Z, and the growing web industry Occupation Age 10% 11% 9% 27% Developer 37% Designer 18% 20-29 Sales 30-39 17% Marketing 40-49 Director 50 and over Corporate 19% 18% 35% ©2024 Wantedly, Inc 24
Slide 25: Companies on Wantedly
Future Outlook | Companies on Wantedly Companies from various industries, primarily in SMEs with 100 or fewer employees Companies by industry Web & Mobile Consulting Marketing & Advertisement Retail & Distribution k System Integration & Packaged So ware companies Architecture & Real estate Sta ng &
Slide 26: Focus Points Visit: Recover customer acquisition capabilities
Future Outlook | Focus Points Visit Recover our customer acquisition capabilities through a strengthened sales structure KPI Strengthened sales structure 1 Number of Paid Companies • Expect that new acquisitions and cancellations will stabilize and remain flat over the next year. Enhance customer su
Slide 27: Focus Points Visit: Wantedly Assessment is released
Future Outlook | Focus Points Visit Wantedly Assessment is released Skills assessment • Includes feature that highlights the variety and uniqueness of an individual's skill to be used in further skill development and upskilling/reskilling. X Personality assessment • Includes feature that allows indi
Slide 28: Engagement: Perk, Pulse, Story
Future Outlook | Engagement Perk, Pulse, Story Supporting the creation of self-sustaining organizations Comprised of three products • Provide support for creating an environment where employees can be passionate in their work Solving telecommuting challenges • Prevent decreased employee motivation d
Slide 29: Engagement - Perk: Employee Perks
Future Outlook | Engagement - Perk Employee Perks Employee Perks provide the latest services to enrich employee work environments • Discounted services that support users in their day to day challenges - employee benefits that are easy to implement • Over 1,000 services with special offers ©2024 Wan
Slide 30: Engagement - Perk - Business Model
Future Outlook | Engagement - Perk - Business Model Companies Contract Post Service Service provider Employees Give Get Coupon Service Coupon Entertainment Provide Alignment Restaurant/ Service info Movie.. Healthcare Childcare Use service Education etc… Free of charge ©2024 Wantedly, Inc 30
Slide 31: Focus Points Perk
Future Outlook | Focus Points Perk Continue to expand function and increase value provided KPI 1 Churn rate • Reduce churn rate by strengthening customer Improve conversion rate Enhance customer success success efforts. New acquisitions × Churn rate 2 Price ARPU • Aiming to increase unit price by cu
Slide 32: Focus Points Perk: Perk Point Released
Future Outlook | Focus Points Perk Perk Point Released • Released "Point Earning System" feature within Perk service, allowing users to accumulate points that can be used to purchase gift Box Select or movie tickets. →Expand contracts with mid-size companies by addressing diverse customer requiremen
Slide 33: Engagement - Story: Company Newsletter
Future Outlook | Engagement - Story Company Newsletter Company Newsletters that enable members to share common goals and feel a sense of team unity • Support companies in celebrating visions and values online, even when face-to-face communication is difficult ©2024 Wantedly, Inc 33
Slide 34: Engagement - Pulse: Team Management
Future Outlook | Engagement - Pulse Team Management Surveys that allow managers to assess employee satisfaction and make improvements to employee experience • Celebrate team values through Slack and visualize daily challenges and unseen contributions of members ©2024 Wantedly, Inc 34
Slide 35: Potential Users
Future Outlook | Potential Users Maximize utilization of our current user/customer base Working population Companies Users Companies 69.00 M (1) 3.60 M (3) SMEs / Large Enterprises SMEs / Large Enterprises 36.00 M (2) 540 K(4) Wantedly share Wantedly share 3.96 M 4.1 K 11% 8% Sources: (1) “Labor Sur
Slide 36: Potential Market Size
Future Outlook | Potential Market Size The Wantedly Group estimates a potential market size of approximately 1 trillion yen 1 Hiring Engagement + = Approx. 450 billion (1) Approx. 550 billion (2) Approx. trillion Sources: (1) Average estimated use fees for hiring services X Employee number of SMEs a
Slide 37: Subscription revenue model
Future Outlook | Subscription revenue model Pricing model combines subscriptions and pay-as-you-go plans. Separate Hiring and Engagement fee plans effective April 2024. Hiring Engagement (¥M) Add-ons & Others 5,000 Subscriptions 4,746 4,825 4,497 Add-ons • From 100,000 yen per item • Mainly “Talent
Slide 38: Appendix | ESG / SDGs
Appendix | ESG / SDGs Supporting Student Achieve sustainable self- Career Development sufficiency through work In the realm of new graduate recruitment, we have As times change and the average life expectancy inches implemented several projects to "create a world where towards 100 years, work has be
Slide 39: Appendix | Company Overview and History
Appendix | Company Overview and History Wantedly, Inc. ©2024 Wantedly, Inc 39
Slide 40: Appendix | Disclaimer
Appendix | Disclaimer This material contains forward-looking statements that reflect views and assumptions of management at Wantedly, Inc., in light of information currently available with respect to certain future events, including, but not limited to financial projections and business strategies.