wantedly, inc. fy2019 q1 financial results · 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040...

©2018 Wantedly, Inc.

15.Jan.2019

FY2019 Q1 Financial ResultsWantedly, Inc.


1. FY2019 Q1 Results 2. FY2019 Guidance 3. Recognition of Environment and Provision of Our Value 4. Product Overview 5. Future Outlook 6. Appendix

Table of Contents

2


FY2018 Results


YoY+59% in revenue Approx. 3.5x in OP

(¥M) F8/18Q1 F8/18Q4 F8/19Q1 YoY QoQ

Revenue 433 648 687 +58.8% +6.0%

Operating Profit 27 173 95 +252.5% -44.8%

(Margin) 6.3% 26.7% 13.9% - -

RecurringProfit 28 173 95 +235.0% -45.1%

(Margin) 6.6% 26.8% 13.9% - -

Net Profit 12 120 56 +376.4% -53.3%

(Margin) 2.7% 18.5% 8.2% - -

4

* Figures less than one million yen are rounded.

Overview FY2019 Q1 Consolidated Earnings Results

©2018 Wantedly, Inc. 5

0

200

400

600

800

F8/16!Q1 Q2 Q3 Q4

F8/17!Q1 Q2 Q3 Q4

F8/18!Q1 Q2 Q3 Q4

F8/19!Q1

249236

211

169

149139

140122

748578

7163

438412372331283241206188180165147123109

SubscriptionAdd-ons & Others

0

200

400

600

800

F8/16!Q1 Q2 Q3 Q4

F8/17!Q1 Q2 Q3 Q4

F8/18!Q1 Q2 Q3 Q4

F8/19!Q1

687648

583

500433

379346

310254250225

194172

Created decent growth in seasonally weak Q1

(¥M)

* Consolidated from F8/17 Q3 (non-consolidated until then). * Figures less than one million yen are rounded.

Revenue: Quarterly Trend


0

200

400

600

F8/16!Q1 Q2 Q3 Q4

F8/17!Q1 Q2 Q3 Q4

F8/18!Q1 Q2 Q3 Q4

F8/19!Q1

175

151162

119

116

102

91

81

7178

687762

82

4128

29

19

2115

15

2385112926

6734101

256

112

5023

244

20

6463

6255

443431312116171311

20418516112811410998757171585246

PersonnelSystem & Comm.Marketing (W People)Marketing (Others)Others

Increased expenses mainly in personnel with business expansion

0

200

400

600

16/8!Q1 Q2 Q3 Q4

17/8!Q1 Q2 Q3 Q4

18/8!Q1 Q2 Q3 Q4

19/8!Q1

591

475514

588

406

317

257

445

206250

153171146

(¥M)


* Promotion cost is included into “Marketing (W People)” and “Marketing (Others)” from F8/19 Q1

SG&A: Quarterly Trend


-25

0

60

120

180

240

300

F8/18 Q1OP

Subscription Add-ons & Others

Personnel System& Comm.

Marketing(W People)

Marketing(Others)

Others F8/19 Q1OP

-59

-63-20

-90

+45

+100

+155

95

27


(¥M)

Drivers of Changes in Operating Profit (YoY)


-25

0

60

120

180

240

300

F8/18 Q4OP

Subscription Add-ons & Others

Personnel System& Comm.

Marketing(W People)

Marketing(Others)

Others F8/19 Q1OP

-24

-41

-33

-1-19+13+26

95

173

-1


(¥M)

Drivers of Changes in Operating Profit (QoQ)


-200

-100

0

100

200

F8/16!Q1 Q2 Q3 Q4

F8/17!Q1 Q2 Q3 Q4

F8/18!Q1 Q2 Q3 Q4

F8/19!Q1

Operating Profit

95

173

69

-88

2762

89

-135

48

0

71

2327

-50%

-25%

0%

25%

50%

F8/16!Q1 Q2 Q3 Q4

F8/17!Q1 Q2 Q3 Q4

F8/18!Q1 Q2 Q3 Q4

F8/19!Q1

30.9%26.5%

36.7%34.1%35.8%40.0%

36.6%35.2%36.5%39.5%

34.0%38.4%

33.9%

15.6%11.6%

31.7%

0%

18.9%

-43.5%

25.6%

16.4%

6.3%

-17.6%

11.9%

26.7%

13.9%

OPM OPM (ex. Marketing Expenses)

Big OP growth beyond higher expenses. Stable profitability excl. marketing expenses

Operating Profit & OP Margin: Quarterly Trend

(¥M)



Non-financial KPIs: Quarterly Trend

10

MAU and Users Companies

0

10

20

30

40

F8/16!Q1 Q2 Q3 Q4

F8/17!Q1 Q2 Q3 Q4

F8/18!Q1 Q2

Q3 Q4

F8/19!Q1

0

1,000

2,000

3,000

F8/16!Q1 Q2 Q3 Q4

F8/17!Q1 Q2 Q3 Q4

F8/18!Q1 Q2 Q3 Q4

F8/19!Q1

MAU Users(‘000)

* MAU represents the browser- or terminal-based cumulative total of unique persons who accessed our services in a month, whether they registered to the services or not (and eliminating duplicative access to the site and application).

(‘000)

3K

2.54M

1.64M

Steady growth in all metrics


(¥M) F8/18-end F8/19 Q1-end Changes

Current assets 903 958 +55

Cash & equivalents 636 675 +39

Accounts receivable 170 181 +12

Others 97 102 +4

Fixed assets 301 308 +7

PP&E 120 119 -1

Others 181 189 +8

Total assets 1204 1266 +62

Liabilities (Current) 571 570 -1

Equity 633 696 +63

Shareholders’ equity 637 699 +62

Balance Sheet

Other Consolidated Financial Data



FY2019 Guidance


(¥M) F8/18Actual

F8/19Guidance YoY F8/19 Q1

Actual Progress

Revenue 2,163 2,800 +29.4% 687 24.5%

Operating Profit

181 330 +82.3% 95 28.9%

(Margin) 8.4% 11.8% - 13.9% -

RecurringProfit

177 330 +86.0% 95 28.9%

(Margin) 8.2% 11.8% - 13.9% -

Net Profit 104 175 +68.8% 56 32.0%

(Margin) 4.8% 6.3% - 8.2% -

EPS (¥) 11.0 19.1 +74.0% 6.1 31.9%

13

* Figures less than one million yen are rounded. * EPS is equal to net income per share.

Overview FY2019 Consolidated Earnings Guidance and Current Progress

Progress as planned

No change in guidance - Estimated revenue growth of

+30% YoY

- Expect higher profit as well as the last FY


Guidance

14

0

1,000

2,000

3,000

F8/15 F8/16 F8/17 F8/18 F8/19

903

765

474

294

1,897

1,398

816544451

SubscriptionAdd-ons & Others

0

1,000

2,000

3,000

15/8 16/8 17/8 18/8 19/8

2,800

2,163

1,290

840

451

Higher subscription revenue by increasing new contracts

More add-ons revenue due to upselling mainly in scouting

* No classification of revenue in F8/15 * Consolidated from F8/17 Q3 (non-consolidated until then).


(¥M)

Revenue: Guidance


0

1,000

2,000

3,000

F8/15 F8/16 F8/17 F8/18 F8/19

614

548

345

285119

174

117

75

151150

518

504

337

329

225

1175727

835588

353226152

PersonnelSystem & Comm.Marketing (W People)Marketing (Others)Others

Plan increasing SG&A due to higher personnel for acceleration

Continue investment in Wantedly People

0

1,000

2,000

3,000

15/8 16/8 17/8 18/8 19/8

2,470

1,982

1,226

720

449

Guidance

(¥M)


SG&A: Guidance


-100

0

100

200

300

400

F8/15 F8/16 F8/17 F8/18 F8/19

Operating Profit

330

181

64

121

-3

-25%

0%

25%

50%

F8/15 F8/16 F8/17 F8/18 F8/19

32.8% 32.4%36.8% 37.1% 36.5%

-0.6%

14.4%

5.0%8.4%

11.8%

OPM OPM (ex. Marketing Expenses)

Expect achieving profit growth even with investment in employees and future business (Wantedly People and global expansion)


Guidance Guidance

Operating Profit: Guidance

(¥M)


Recognition of Environment and Provision of Our Value


Our mission and key products

18

Create a World Where Work Drives Passion

Our mission is to increase people who find fun in their work. To this end, we provide "Wantedly," a business SNS that provides a one-stop service that enables encounters (Visit), establishes a network (People), and utilizes the network (Chat) on a sympathy axis.

In the coming years when the average life span will exceed 100 years, Wantedly will provide infrastructure for all working people across the border in order to realize a world where as many of them as possible will feel excited and enthusiastic at work.

Company Visiting Service Network Management App Business Chat


Social trends that surround our company

Not only conditions, but also significance, become important for a job

Company life span becomes shorter, while human life span becomes longer

Corporate buyers' market ends due to declining population

1

2

3


Source: Career Advisory Board, presented by DeVry University “How the Recession Shaped Millenial and Hiring Manager Attitudes about Millenials’ Future Careers”

Significant work

High income

Sense of Fulfillment

Challenging work

Self-expression

Assumption of large responsibility

0% 10% 20% 30% 40% 50% 60%

Millenials Management generation

What is most important at work?

1 Not only conditions, but also significance, become important for a job



Matching with companies on

a empathy basis

Discovery of empathy with persons

encountered at work

1 Significance = empathy with the company and colleagues



Source: Ministry of Health, Labour and Welfare, "Abridged life table" and "Unabridged life table"; National Institute of Population and Social Security Research, "Future population estimates of Japan" (as of January 2012)

Source: INNOSIGHT, Richard N. Foster, Standard & Poor’s

0

10

20

30

40

50

60

70

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

2014

2017

2020

2023

50

60

70

80

90

100

1950

1960

1970

1980

1990

2000

2010

2020

2030

2040

2050

2060

Male Female

（Yr）（Yr）

Average years of companies included in S&P500 (seven-year moving average)

Changes and estimates in average life span of Japan

Forecast

2 Company life span becomes shorter, while human life span becomes longer



Diverse work opportunities including

internships and side jobs

Establishing network toward side jobs, job

change, and/or startups

2 Longer life span = from a single track to increasing diversity



Conventional career at work for individuals

Transfer once every several years

Job search

Promotion based on seniority

Retirement

Join a company (Lifetime employment)

Pension benefits

Student Working person

Mandatory retirementFind a job

Post-retirement


Future career for individuals based on changes in circumstances

Internship

Join a company

Side job

Job change

Multiple jobs

Re-learning (recurrent education)

Finding one's own interest

Freelance

Establishing network assets

Student Working person

Mandatory retirementFind a job

Post- retirement


Source: Ministry of Health, Labour and Welfare

0.0

0.5

1.0

1.5

2.020

00

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Active opening ratio

（times）

Trends in active opening ratio

3


Corporate buyers' market ends due to declining population


Difference in recruiting methods between the past and present

Companies

Past

Individuals

Application through job boards (companies are passive)

Scouting by companies

Approach passive candidates to induce interest

Formation of candidates group mainly from active job seekers

Present

Employer branding

Contract styles and work styles will further diversify in coming years

Individuals

Companies


Product Overview


Users on Wantedly at a glance

29

Occupation Age

Advantage in millennials and the growing Web industry

11%

13%

16%

19%

13%

27%

DeveloperDesignerSalesMarketingDirectorCorporate

7%

15%

32%

45% 20-2930-3940-4950-


Companies on Wantedly at a glance

30

Registered companies by industry

Companies from various industries with relatively higher share of Web/mobile. Most of them are SMEs with less than 100 employees.

Web & MobileConsultingMarketing & AdvertisementSystem Integration & Packaged SoftwareMedia & PublishingStaffing & HR/Nursing/Other ServicesRestaurant & CateringEducation & ResearchRetail & DistributionOthers

30Kcompanies


Wantedly Visit - Discover and visit inspiring companies

31

Works to be Exciting - Matching based on empathy with

mission and values

- Applicants initially “Visit Companies”

- Inspiring job posts go viral by the “Recommend” feature

- Companies reach potential job seekers

ContentsViewing Search

Scout by Companies

Replies

Application made by users

Replies

CompaniesUsers


Contents on Wantedly Visit - Job Posts

32

Members

WHAT / WHY / HOW

Recommend


Contents on Wantedly Visit - Company Pages & Blog Posts

33

Company Pages Blog Posts


Reach passive candidates via social media instead of ads

34

Ads

Active job seeker

Passive candidates

Social Media

Acquire the actualized layer of job changers who definitely want to change their jobs, and those who are seeking work having better conditions

The potential layer of job changers come into the scope via social media, including human

resources who do not join the job change market

Typical job boards and agents

Active job seeker

Active job seeker

Active job seeker

Passive candidates

Passive candidates

Passive candidates


Wantedly Admin - Admin tool for companies

35

SaaS tool for companies to use for posting jobs to “Visit” and messaging with applicants Pricing system includes subscription and add-ons incl. direct scout (no success fee)

Trial(30 days) Minimum Lite Standard

Monthly Price Free ¥35k ¥60k ¥100k

Job Postings 5 unlimited unlimited unlimited

Applications Made 5 unlimited unlimited unlimited

Members Can Use Admin 3 3 15 unlimited

Bookmark Scout - - unlimited unlimited

Direct Scout Message - - - 200 tickets

(Basic)

Subscription Pricing (for 6-months Contract)

Basic Plus Premium

Monthly Price ¥120k ¥140k ¥185k

Scout Tickets 150 tickets 150 tickets 150 tickets

Users Can Receive Scout 45,000 65,000 100,000

Re-send - ✓ ✓Advanced

Filtering - - ✓Detailed Profiles - - ✓

Direct Scout Pricing (for 3-months contract)


Features of our subscription model

36

Customers Time

Revenue distribution by size of customer Time-based profit generation per customer

Gain revenue from many customers

Unit price Revenue

Revenue continues for a long term

Unlike job boards and success fee model Unlike job boards and success fee model


Years

Profit accumulates in steps

Profitability improves as retained customers increase

Increase retention rate through enhanced customer satisfaction

Features of our subscription model

Revenue


Wantedly People - Business card app

38

Scan smarter. Scan faster. - Scan several business cards

received at a time in one shot - Immediately convert the cards into

data and add it to the contacts - more accurate through machine

learning - Provide “Updates” with

relationships of connectionsScan 10 Cards

at a timeDigitize contacts

in a flashDiscover “Updates” from your network


Wantedly People - Growing number of users

39

2016/11 2017/07 2018/02

1M

2M

Launch

2018/10

3M


Users on Wantedly People at a glance

40

46%

7% 6%10%

8%

23%

CEO/PresidentDirectorGeneral ManagerManagerChief/Unit HeadOthers

10%

20%

26%

25%

20%

20’s30’s40’s50’sOthers

3M users including large number of executives and wide range of age groups

Occupation Age

* Surveyed by Wantedly


Wantedly People: “Updates" function

Topics with persons in exchanging cards

Following the exchange of business cards, more than 40 partner media provide news concerning the company and industry of the person on the card. Know better about the person on the card and create a business opportunity.

Topics related to the userProvides topics based on the user's company, industry, region, and interest. Find a topic for conversation through the provided information on the user's interest.

Topics of societyProvides information that shows trends at a glance through pickup news from media companies. Find news for breaking the ice in the first business talk or for conversation with managers and colleagues.

1

2

3


4 types of Premium/Native Ads

Wantedly People - Monetize by ad field in the“Updates”

Story Ads Article Ads Infeed AdsVideo AdsTie Up Tie Up


Future Outlook


Future outlook

Increaseusers

Increasecompanies

1 2

ExpandTAM

3


Trend in number of companies

0

10

20

30

F8/16!Q1 Q2 Q3 Q4

F8/17!Q1 Q2 Q3 Q4

F8/18!Q1 Q2 Q3 Q4

Companies（’000）

Acquire new targetsThe speed is slightly declining through

the limitation of the free trial period. (paid contract ratio is increasing)

Expand existing targets

Organic growth without depending on adsExpansion to non-web-based companies

1 Increase companies


Horizontal expansion × Penetrate enterprise market

Employees

Companies

Penetrate enterprise market

Accelerate horizontal expansion

0

100

1,000

10,000

10

100,000

（People）

Increasing needs for recruiting and scouting targeted at digital-oriented human resources & student interns

Enterprises

Continue improving funnel management and strengthening systems that match SaaS-type business models

SMEs & Startups

Upgrade responding power while aiming at raising unit prices

Expand both web-based and non-web-based ranges



Large possibility in non-Tokyo areas

Wantedly Major job board A

Major job board B

80%

30% 30%

Tokyo area （Kanto region）

Non-Tokyo areas

0%

100%

Compared with major media, our customers are concentrated

in the Metropolitan area

Large room for penetration into non-Metropolitan areas

Shares of user companies (listed companies) by region

20%

70%70%

* Estimated by Wantedly



Regional expansion in Japan and overseas

GERMANY

SINGAPORE

HONG KONG

JAPAN

FUKUOKA

OSAKA/KYOTO

TOKYO



0

500

1,000

1,500

2,000

F8/16!Q1 Q2 Q3 Q4

F8/17!Q1 Q2 Q3 Q4

F8/18!Q1 Q2 Q3 Q4

Users

High-efficiency marketing

Dissemination of long-term internship

Increasing side jobs and multiple jobs

More active employer branding

2 Increase usersTrend in number of users

（’000）


Potential users in Japan

Business card users20M

Job changers（active & potential）

10M

Interns1M

Target workers34M

* Estimated by Wantedly based on the Ministry of Internal Affairs and Communications, "Basic Research on Employment Structure" and "Work Force Survey," and the Ministry of Education, Culture, Sports, Science and Technology, "Status of Internship at Universities and Other Institutions"

Side job

7M

2 Increase users


Enhanced alignment between "People" and "Visit"

DATA BASE

- Profile - Connections - Contents - Behavior data

2 Increase users


Expansion of Total Addressable Market

52

In addition to the existing recruitment areas, expand into the marketing areas based on Wantedly People

＋Recruiting Solutions Ads Solutions

Partnership toward the joint development of marketing solutions

Business partnership with Dentsu (Jun 2018)

New menu following article advertisement and infographic advertisement

Provide”Video Ads" (Nov 2017)

Provide persons in exchanging business cards with topics and advertising

Provide the “Updates"and ads menu (Jul 2017)

¥800BJob board market

* Source: Association of Job Information of Japan, Dentsu "Advertisement Cost in Japan"

¥1.5TOnline ads market

3 Expand TAM


Appendix


Septermber, 2010Founded

Akiko NakaCEO

Headquarter

MG Shirokanedai building 4F, 5-12-7, Shirokanedai, Minato-ku, Tokyo

Subsidiary

Wantedly Singapore Pte. Ltd.

Wantedly, Inc.

Company Overview

54

Ticker Symbol

3991 (TSE Mothers)


Leadership - 1

55

After graduating from the Faculty of Economics, Kyoto University, entered Goldman Sachs. After retiring, participated in Facebook Japan as an early member. In September 2010, established the present Wantedly, and developed a business SNS "Wantedly" utilizing Facebook. In February 2012, officially released the service.

Akiko Naka / President, CEO

After graduating from The Department of Information Science, the University of Tokyo, completed the master's course in the Department of Computer Science, Graduate School of Information Science and Technology, UOT. In 2006, entered Goldman Sachs. After serving as VP for the Technology Division, participated as CTO in the development and operation of Wantedly in April 2012. Assumed the present position in October 2013.

Yoshinori Kawasaki / Director, CTO

After graduating from the Faculty of Engineering, Kyoto University, entered Morgan Stanley Securities, and served as stock analyst. After working for FleishmanHillard Japan, a PR agency, and Trippiece, a trip service startup, entered Wantedly in June 2016. After serving as Executive Officer for Management Planning, assumed the present position in November 2017.

Yusuke Yoshida / Director, CFO

Launched Business Corp Inc. (present Benefit One Inc.) while working at Mitsubishi Corporation, and was engaged in the startup of various businesses utilizing the Internet in its very early days in Japan. Has mainly undertaken service planning and operation design, funding, etc. Has also leveraged experience in broad areas, including security analysis, corporate planning, and internal audit. In April 2014, took office as Full-time Auditor of Wantedly. In November 2015, took office as Outside Director (Audit and Supervisory Committee Member) of Wantedly.

Akiko Takahara / External Director

Representative Director and President of Muuseo Inc. After working for Deloitte Touche Tohmatsu LLC, was expatriated to the Listed Unit, Tokyo Stock Exchange, and undertook the establishment of listing rules and the application of actions based on the listing rules. From 2007, established the management structure as Executive CFO at Cookpad, and led its listing in Tosho Mothers. In March 2012, retired for the purpose of startup. At present, focuses on the management of online services, and also supports startups as angel investor and/or outside executive officer. In November 2015, took office as Outside Director (Audit and Supervisory Committee Member) of Wantedly.

Jun Narimatsu / External Director

Serves as partner for STW & Partners. After registering as lawyer in the Daini Tokyo Bar Association in 2000, served as partner for Mori Hamada & Matsumoto from 2009. In October 2011, took office as Outside Auditor of enish, Inc. In January 2015, entered STW & Partners. In November 2015, took office as Outside Director (Audit and Supervisory Committee Member) of Wantedly.

Shinichiro Yoshiba / External Director


Leadership - 2

56

After graduating from the Department of Mathematics, Faculty of Science, Kyoto University, was engaged in the launch, development, and business operation of several startups. Started engagement in the service development of Wantedly in June 2012, and formally entered Wantedly in January 2013. Led the development and growth of multiple services and apps including Wantedly Visit. Assumed the present position in September 2014.

Rei Kubonaga / Executive Office

After graduating from the Faculty of Economics, the University of Tokyo, worked for Softbank, and subsequently entered Oisix in 2001. After serving as the General Manager of Logistics, undertook HR from 2005. Entered Wantedly in August 2014, and undertook HR and other corporate operations. Assumed the present position in June 2016.

Akitsugu Otani / Executive OfficeAfter graduating from the Department of Computer Science and Engineering, school of Fundamental Science and Engineering, Waseda University, entered Google, and was engaged in the development of google’s search system. Entered Wantedly in June 2012. Has been engaged in development mainly on back ends, including algorithms, payment systems, and infrastructural platforms. Has led the development of Wantedly People since August 2016.

Naoyoshi Aikawa / Lead Engineer

After graduating from Waseda University, engaged in the management of competitive swimmers. In 2007, entered Recruit Agent (present Recruit Career). Has experienced corporate sales and launch of new businesses in the consumer segment, and has served as manager in the business development division. After working for HR Tech in Singapore, entered Wantedly in October 2017, and assumed the present position in September 2018.

Kaori Kawaguchi / Executive Office


Disclaimer

57

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. These forward-looking statements are subject to certain risks and uncertainties, and may differ from actual business performance or results. These results of such forward-looking assumptions cannot be assured.

This material does not intend to solicit the sale or purchase of the shares of the company. Your investment decisions should be made at your discretion.

This material is the sole property of Wantedly, Inc., and no part of this material may be reproduced or transferred by whatever means, electronic or otherwise, without prior consent.

wantedly, inc. fy2019 q1 financial results · 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040...

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