Wantedly, Inc. FY2018 Q2 Financial Results · F8/18 and expense items, but the company made no review of figures by expense item in the plan as we are set to control of the whole

©2018 Wantedly, Inc.

FY2018 Q2 Financial ResultsWantedly, Inc.

13.Apr.2018


FY2018 Q2 Results


Overview FY2018 Q2 Consolidated Earnings Results

- 61% YoY Revenue Growth - Strong growth in subscription,

sames as in Q1 - Gradual upward trend in the

average unit price

- Accelerated spending in Q2 - More marketing expenses for

“People” following Q1

(¥M) F8/17Q2 F8/18Q1 F8/18Q2 YoY QoQ

Revenue 310 433 500 +61.3% +15.7%

Operating Profit -135 27 -88 - -

(Margin) -43.5% 6.3% -17.6% - -

Recurring Profit -134 28 -92 - -

(Margin) -43.3% 6.6% -18.3% - -

Net Profit -118 12 -73 - -

(Margin) -38.1% 2.7% -14.7% - -

3

* Figures less than one million yen are rounded.


Revenue: Quarterly Trend

4

Steady expansion - Driven by the subscription, which

increased new paid clients following Q1 - Progress of upselling mainly in scouts

and an increase in revenue of add-ons

0

200

400

600

F8/16 Q1 Q2 Q3 Q4

F8/17 Q1 Q2 Q3 Q4

F8/18 Q1 Q2

168

149

139140

1227485

7871

63333

283241

206188180165147123109

SubscriptionAdd-ons & Others

(¥M)

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

0

200

400

600

16/8 Q1 Q2 Q3 Q4

17/8 Q1 Q2 Q3 Q4

18/8 Q1 Q2

500

433

379346

310

254250225

194172


SG&A: Quarterly Trend

5

Increase in ad spending - Marketing expenses: Commercials on

TV in addition to web promotion same as in Q1

- Communications expenses: Increased in relation to both an increase in users and countermeasures against loads of commercials

- Personnel expenses: Increase in persons mainly in the business area 0

200

400

600

F8/16 Q1 Q2 Q3 Q4

F8/17 Q1 Q2 Q3 Q4

F8/18 Q1 Q2

125

121

102

91

81

71

78

687762

29

19

21

15

15

2385

112926

256

112

5023

244

20

55443431

312116171311 12211010998757171585246

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

(¥M)



Drivers of Changes in Q2 Operating Profit (YoY)

6

-150

-100

-50

0

50

100

150

F8/17 Q2 OP

Subscription Add-ons & Others

Personnel System & Comm.

Marketing (W People)

Marketing (Others)

Others F8/18 Q2 OP

+46 -47

-45

-14-13

-88

-135 +144

-25

(¥M)

* Comparison between non-consolidated figures in F8/17 and consolidated figures from F8/18. * Figures less than one million yen are rounded.


Drivers of Changes in Q2 Operating Profit (QoQ)

7

-150

-100

-50

0

50

100

150

F8/18 Q1 OP

Subscription Add-ons & Others

Personnel System & Comm.


Marketing (Others)

Others F8/18 Q2 OP

+18

+49

-88

27-144

-12-12

-10 -5

(¥M)



Operating Profit & OP Margin: Quarterly Trend

8

-150

-100

-50

0

50

100

150

16/8 Q1 Q2 Q3 Q4

17/8 Q1 Q2 Q3 Q4

18/8 Q1 Q2

Operating Profit

-88

27

62

89

-135

48

0

71

2327

-50%

-25%

0%

25%

50%

16/8 Q1 Q2 Q3 Q4

17/8 Q1 Q2 Q3 Q4

18/8 Q1 Q2

30.9%26.5%

36.7% 34.1% 35.8%40.0%

36.6% 35.2% 36.5%39.5%

15.6%11.6%

31.7%

0%

18.9%

-43.5%

25.6%

16.4%

6.3%

-17.6%

OPM OPM (ex. Marketing Expenses)

Profit decrease resulted from ad spending to “People”. Profitability is still stable if marketing expenses are excluded.

(¥M)



Non-financial KPIs: Quarterly Trend

9

MAU and Users Companies

0

10

20

30

16/8 Q1 Q2 Q3 Q4

17/8 Q1 Q2 Q3 Q4

18/8 Q1 Q2

0

500

1,000

1,500

2,000

2,500

16/8 Q1 Q2 Q3 Q4

17/8 Q1 Q2 Q3 Q4

18/8 Q1 Q2

MAU Users

Steady growth of companies, going over 26,000MAU rose to 2.2M, and individual users went over 1.1M

(‘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)


Other Consolidated Financial Data

10

(¥M) F8/17-end F8/18 Q2-end Changes

Current assets 618 657 +40

Cash & equivalents 465 451 -14

Accounts receivable 90 132 +42

Others 63 74 +12

Fixed assets 218 219 +1

PP&E 63 64 +1

Others 155 155 -0

Total assets 836 876 +40

Liabilities (Current) 351 410 +59

Equity 485 467 -18

Shareholders’ equity 487 470 -17

(¥M) F8/17 F8/18 Q1-Q2

Operating cash flow 88 -48

Pretax income 59 -63

Depreciation 13 6

Others 16 9

Investing cash flow -58 -7

Purchases of PP&E -7 -6

Others -51 -1

Financing cash flow 0 44

Cash & equivalents (EOP) 465 451

Free Cash Flow 30 -55


Balance Sheet Cash Flow Statement


Recent Topics


Launched Wantedly AI/Robot Fund (Jan. 2018)

12

The project’s aim is to invest in seed-stage companies engaged in technology development/business in the AI and robotics fields. It provides assistance in the creation of companies expanding from Japan to overseas, using technology as the core, in order to increase exciting jobs.


Number of users of Wantedly People was above 2 million (Feb. 2018)

13

It took about 15 months from its release to obtain 2M users and achieve more than 40M business card scans.


Number of corporate users was above 1,000 in Singapore (Mar. 2018)

14

It took about 1 year from the start of full services in Singapore to obtain more than 1,000 corporate users. We also offer the services in Hong Kong and Germany.


New feature that matches clients to users based on values (Apr. 2018)

15

Renewed pages for companies on Wantedly Visit so that the companies can present their most prized values.


FY2018 Guidance

©2018 Wantedly, Inc. 17

(¥M) F8/18 Q1-Q2

F8/18 Guidance Progress

Revenue 933 1,628 57.3%

Operating Profit

-61 195 -31.3%

(Margin) -6.5% 12.0% -

Recurring Profit

-63 195 -32.5%

(Margin) -6.8% 12.0% -

Net Profit -62 134 -45.9%

(Margin) -6.6% 8.3% -

EPS (¥) -6.75 14.69 -45.9%

* Figures less than one million yen are rounded. * EPS is equal to net income per share. The company executed a 2:1 stock split of common stocks

on December 1, 2017. The net income per share on the consolidated earnings forecasts for FY8/18 takes into account effect of the stock split.

The guidance unchanged - Steady progress in top-line growth - Semiannually recorded loss due to

H1- centric ad spending, which falls within the expected range

- To seek to achieve the profit plan for the full-year in the second half by adjusting ad postings

Overview FY2018 Consolidated Earnings Guidance and Current Progress


Revenue: Guidance

18

Expect a steady growth - To further expand the base, increasing

both users and companies - To improve the customer response/

marketing system, to gain new paid customers, renewals, and upselling

0

500

1,000

1,500

2,000

F8/15 F8/16 F8/17 F8/18 Guidance

1,290

840

451

1,628

(¥M)

* Non-consolidated in F8/15 and F8/16, consolidated in F8/17 and later. * Figures less than one million yen are rounded.


SG&A: Guidance

19

Increase mainly in personnel expenses - Personnel expenses: Planned

company-wide increase in personnel - Marketing expenses: To be allocated to

upfront investment as much as possible, by adjusting the marketing expenses of “People"

- System & Comm. expenses: Expected to increase according to more users

0

500

1,000

1,500

2,000

F8/15 F8/16 F8/17 F8/18 Guidance

345

285

119

75

151150

337

117

5727 353

226152

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

606

2187170

469

* There are divergences between the progress of cumulative results for F8/18 and expense items, but the company made no review of figures by expense item in the plan as we are set to control of the whole selling and administrative expenses.

(¥M)



Drivers of Changes in Operating Profit (YoY): Guidance

20

0

200

400

600

F8/17 OP

Revenue Personnel System & Comm.


Marketing (Others)

Others F8/18 OP Guidance

-125

-101

-253

+5

+266

+338

195

64

+5

(¥M)



Operating Profit: Guidance

21

Profit to increase due to revenue growth - Directly contributed by revenue growth

due to the high incremental margin - To ensure a certain level of profitability

by controlling upfront investment (ad spending) despite increased fixed cost

-5%

0%

5%

10%

15%

20%

-50

0

50

100

150

200

F8/15 F8/16 F8/17 F8/18 Guidance

Operating Profit (LS) OP Margin (RS)

5.0%

14.4%

-0.6%

64

121

-3-0.6%

14.4%

5.0%

195

12.0%

(¥M)



Appendix


Mission

23

Create a World Where Work Drives Passion


Users on Wantedly at a glance

24

Occupation Age

11%

13%

16%

19%

13%

27%

DeveloperDesignerSalesMarketingDirectorCorporate

7%

15%

32%

45% 20-2930-3940-4950-

Advantage in millennials and the growing Web industry


応募

ユーザーから返信

企業からの返信

ダイレクトスカウト

User Company閲覧

情報提供

システム提供

募集情報

Wantedly Visit - Discover and visit inspiring companies

25

Application made by users

Replies from companies

Replies from users

Scout by companies

Users CompaniesAdmin systems ▶ ◀ Job postings

Viewing ▶ ◀ Information

Works to be Exciting - Matching based on empathy with

mission and values. - Applicants initially listen to companies.

That is, they should not make a marriage proposal immediately but they should first go on a date.

- Inspiring job offerings go viral by the “Recommend" feature on social media.

- Companies reach potential job seekers including talents, not being shown in the job market, via social media.


Wantedly Admin - Admin tool for companies

26

The 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)


Wantedly People - Business card app

27

Scan smarter. Scan faster. - Scan several business cards

received at a time in one shot - Immediately convert the scanned

business cards into data and add the data to the contact book

- More use, more accurate through machine learning

- Additionally provide topics with relationships of exchanging cards Scan 10 Cards

at a timeDigitize contacts

in a flashDiscover “updates” from your network

©2018 Wantedly, Inc. 28

4 types of Premium/Native Ads

Wantedly People - Monetize by the ad field in Topic feature

Story Ads Article Ads Infeed AdsVideo AdsTie Up Tie Up


Disclaimer

29

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.

Documents

Wantedly, Inc. FY2018 Q2 Financial Results · F8/18 and expense items, but the company made no review of figures by expense item in the plan as we are set to control of the whole