Wantedly, Inc. FY2020 Q2 Financial Results · 18/8! Q1 Q2 Q3 Q4 19/8! Q1 Q2 Q3 Q4 20/8 Q1 Q2 205 195 232 259 253 249 236 211 169 149 139 140 122 85 74 78 63 71 625 581 497 536 412

©2020 Wantedly, Inc.

14 Apr, 2020

FY2020 Q2 Financial ResultsWantedly, Inc.

©2020 Wantedly, Inc. 2

Table of Contents

1. Strategy

2. FY2020 Q2 Results

3. FY2020 Guidance

4. Business Model

5. Market Opportunity

6. Appendix


Strategy

3


We want to provide opportunities for talents to discover their dream companies and like-minded people, while allowing companies to showcase their brand story and passion to build their dream team.

4


professional social networking services

Employer branding and job matching app

Connection management app

What we do

5


- Moved from the investment phase to focused synergy creation with Visit phase

- Making a solid path to monetization

- Released an employee engagement business

- More focus on marketing to diversify the client base

Strategy

6


Released an employee engagement business

-Aimed at helping companies support and retain their employees -2020/03/17, released the beta of our employee engagement tool Wantedly Perk


Lead Generation

Lead Nurturing Recruiting

Employee Success

Awa

rene

ss

Soft

Sele

ctio

n

Inte

rest

Co

nsid

era

tion

Ap

plic

atio

n

Sele

ctio

n

Hire

Eng

ag

e

8

Value proposition up until now

Up until now we focused on the lead generation and lead nurturing stages shown below

Blogs, Social, Movies, Events, PR, Ads

Delivering detailed information, Company visit, Casual meeting

Onboarding to perform and retain

Selection, Offer, Closing, Follow-up

Recruitment Marketing


Lead Generation


Employee Success

Ap

plic

atio

n

Sele

ctio

n

Hire

Eng

ag

e

9

Wantedly Perk value proposition

In addition, we are now putting focus on the employee success stage shown below

Engagement business Wantedly Perk

Awa

rene

ss

Soft

Sele

ctio

n

Inte

rest

Co

nsid

era

tion







Wantedly Perk contribution

- The Wantedly Perk beta is free for all companies with paid subscriptions to Wantedly. - From 2021/09/01 we plan to charge an additional fee on a per-account basis - Wantedly moves to support recruitment even after hire

Hiring

Business Growth

Engagement


FY2020 Q2 Results

11


Overview

(¥M) F8/19Q2 F8/20Q1 F8/20Q2 YoY QoQ

Revenue 711 775 830 16.8% 7.1%

Operating Profit 93 56 132 42.6% 138.3%

(Margin) 13.1% 7.2% 15.9% - -

Recurring Profit 92 59 123 34.7% 108.4%

(Margin) 12.9% 7.6% 14.9% - -

Net Profit 46 34 63 37.9% 87.2%

(Margin) 6.4% 4.3% 7.6% - -

- YoY +16.8% in Revenue

- Limited impact of COVID-19 on Q2 earnings

* Figures less than one million yen are rounded.

12


0

200

400

600

800

1,000

16/8 Q1 Q2 Q3 Q4

17/8 Q1 Q2 Q3 Q4

18/8 Q1 Q2 Q3 Q4

19/8 Q1 Q2

Q3 Q4

20/8 Q1 Q2

205195232259

253249236

211169

149139

1401227485787163

625581536497458438412372331283241206188180165147123109

SubscriptionAdd-ons & Others

（¥M）

830775769756

711687648583

500433

379346310254250225194172

YoY +36.5% in Subscription

Revenue: Quarterly Trend

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

13


0

200

400

600

800

1,000

16/8 Q1 Q2 Q3 Q4

17/8 Q1 Q2 Q3 Q4

18/8 Q1 Q2 Q3 Q4

19/8 Q1 Q2 Q3 Q4

20/8 Q1 Q2

160172201

172168177

151162

119

116

10291

81

7178

687762

177136

99

801058241

28

29

19

2115

15

2385112926

5276

137

65616734101256

1125023

244

20

8083867574646362

5544343131211617131122825326522720920318516112811410998757171585246

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

698720788

620618591

475514588

406317

257

445

206250

153171146

Expanded investment in "other advertising expenses", mainly for Wantedly Visit

SG&A: Quarterly Trend


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

（¥M）

14


-50

0

50

100

150

200

250

F8/19Q2 OP

Subscription Add-ons & Others

Personnel System & Comm.

Marketing (W People)

Marketing (Others)

Others F8/20Q2 OP

-72

-6-19

-48

+8

+9

+167

13293

-50

0

50

100

150

200

250

F8/20Q1 OP

Subscription Add-ons & Others

Personnel System & Comm.

Marketing (W People)

Marketing (Others)

Others F8/20Q2 OP

-41+12

+23+3+25

+10

+44132

56

YoY QoQ

Drivers of Changes in Operating Profit


（¥M）

15

-6

+8

+9

+10+12+3


-200

-100

0

100

200

16/8 Q1 Q2 Q3 Q4

17/8 Q1 Q2 Q3 Q4

18/8 Q1 Q2 Q3 Q4

19/8 Q1 Q2 Q3 Q4

20/8 Q1 Q2

Operating Profit

132

56

-19

136

9395

173

69

-88

27

6289

-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 Q3 Q4

19/8 Q1 Q2 Q3 Q4

20/8 Q1 Q2

39.2%

30.0%25.0%

34.7%33.6%33.9%38.4%

34.0%39.5%

36.5%35.2%36.6%40.0%

35.8%34.1%36.7%

26.5%30.9%

15.9%

7.2%

-2.4%

18%13.1%13.9%

26.7%

11.9%

-17.6%

6.3%

16.4%

25.6%

-43.5%

18.9%

0%

31.7%

11.6%15.6%

OPM OPM (ex. Marketing Expenses)

Operating Profit & OP Margin: Quarterly Trend


（¥M）

16


0

10

20

30

40

16/8 Q1 Q2 Q3 Q4

17/8 Q1 Q2 Q3 Q4

18/8 Q1 Q2 Q3 Q4

19/8 Q1 Q2 Q3 Q4

20/8 Q1 Q2

0

1,000

2,000

3,000

16/8 Q1 Q2 Q3 Q4

17/8 Q1 Q2 Q3 Q4

18/8 Q1 Q2 Q3 Q4

19/8 Q1 Q2 Q3 Q4

20/8 Q1 Q2

（’000）

*MAU description ended due to strategy change.

2.42M35K

Users Companies

Non-financial KPIs: Quarterly Trend

（’000）

17


FY2020 Guidance

18


Overview FY2020 Guidance

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

19

- Revised Guidance to a range format

- Uncertainty over recruitment activities increases due to COVID-19

- If current conditions continue through the end of the F8/20, we expect the lower end of the range

（¥M） F8/19 Actual

F8/20 Guidance YoY

Revenue 2,922 3,070 ～ 3,450 5.1% ～ 18.1%

Operating Profit 305 260 ～ 310 -14.8% ～ 1.6%

(Margin) 10.4% 8.5% ～ 9.0% -- ～ --

Recurring Profit 295 260 ～ 310 -11.7% ～ 5.2%

(Margin) 10.1% 8.5% ～ 9.0% -- ～ --

Net Profit 146 125 ～ 150 -14.7% ～ 2.4%

(Margin) 5.0% 4.1% ～ 4.3% -- ～ --

EPS（¥） 15.9 13.4 ～ 16.3 -- ～ --


0

1,000

2,000

3,000

4,000

15/8 16/8 17/8 18/8 19/8 20/8 lower

20/8 upper

993

765

474

294

3,4503,070

1,929

1,398

816544451

SubscriptionAdd-ons & Others 3,450

3,0702,922

2,163

1,290

840

451

0

1,000

2,000

3,000

4,000

15/8 16/8 17/8 18/8 19/8 20/8 lower

20/8 upper

718

548

345

285119

366

117

75

151150

330

504

337

299

225117

5727

3,1402,810

904588

353226152

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

3,1402,810

2,617

1,982

1,226

720449

Revenue / SG&A : Guidance

（¥M）（¥M）

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


Guidance


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

Guidance

20



GuidanceGuidance

Operating Profit: Guidance

(¥M)

-100

0

100

200

300

400

15/8 16/8 17/8 18/8 19/8 20/8 lower

20/8 upper

Operating Profit

310

260

305

181

64

121

-3

-25%

0%

25%

50%

15/8 16/8 17/8 18/8 19/8 20/8 lower

20/8 upper

28.0%29.0%31.7%

37.1%36.8%32.4%32.8%

9.0%8.5%10.4%8.4%

5.0%

14.4%

-0.6%

OPM OPM (ex. Marketing Expenses)


Business Model


Wantedly Visit

- Matching based on shared value and mission

- No statement for salary or benefit. Amplify the company's voice regardless of the size.

- A brand new experience of 'Want to Visit' a company

- Talent meet company whose values align to discover more opportunities.

Find your dream job

23


Employer branding and job matching platform

Talent Scouting

Applications for Jobs

Employer Branding

Social media

Organic searchManagement

UsersCompanies

Contents Viewing

Subscription + Add-ons Free of charge

HR

Non-HR employees

No success fee

Students

Office workers

Freelancers


Subscription

Add-ons

0

200

400

600

800

1,000

16/8 Q1 Q2 Q3 Q4

17/8 Q1 Q2 Q3 Q4

18/8 Q1 Q2 Q3 Q4

19/8 Q1 Q2

Q3 Q4

20/8 Q1 Q2

205195232259

253249236

211169

149139

140122748578

7163

625581536497458438412372331283241206188180165147123109

SubscriptionAdd-ons & Others

830775769756

711687648

583500

433379346

310254250225194172

25

Subscription revenue model

Quarterly revenue trend

- ¥100k~ per item

- Mainly pay-per-use “Talent Scouting”

- Other one-off add-ons such as content creation and content promotion

- ¥45k~¥200k per month (as of July 2019) - Revised pricing plan for new company

subscription in July 2019 - 6mo/1yr/2yr term contract - Unlimited job posts & applicants - Upper plans are bundled with talent

scouting

Affordable for SMEs Higher ROI for hiring

(¥M)



Users on Wantedly

Occupation Age

12%

10%

16%

17%13%

32%

DeveloperDesignerSalesMarketingDirectorCorporate

6%

17%

36%

41%20-2930-3940-4950-

Advantage in millennials and the growing Web industry.


Companies on Wantedly

Registered companies by industry

Web & MobileConsultingSystem Integration & Packaged SoftwareMarketing & AdvertisementArchitecture & Real estateStaffing & HR & Nursing & Other ServicesRetail & DistributionMedia & PublisherFood & RestaurantsOthers

35K companies

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


Growth Cycle

28

More company acquisition & activation

More content publishing & sharing

More user acquisition & activation

More actions & interactions by users & companies

- Visiting companies - Talent scouting - Applications for jobs

- Organic search - Social media - Direct

- Job posts - Articles - Meetups

- Product improvement - Marketing - Partner network

More content publishing & sharing boost the growth cycle


The acquisition, Churn and ARPA for companies

29

Go-to- Market

Land ＆

Expand

Inbound sales model Latent needs marketing

Expansion in non-Tokyo area

Partner network Upmarket

Customer Success Onboading Upselling & other add-ons

× ×

Engagement Business Wantedly Perk

New

Latent needs marketing, strengthened approach to existing companies, retention by engagement business

Acquisition ⇧ Churn⇧

ARPA ⇧


Wantedly People

- Business card scanning made fast and easy

- Instantly scan and digitalize multiple business cards

- Get updates of your new connections simultaneously

- A chance to create deeper connections

Scan cards, create connections

30


UPDATE SCAN CONNECT

31

Connection management app

Scan up to 10 Cards at a time Digitize them in a flash

Keep you informed of “Updates” from connections

Know more about your connections


Users on Wantedly People

53%

3%8%

12%

4%

20%

CEO/PresidentDirectorGeneral ManagerManagerChief/Unit HeadOthers

8%

18%

28%

26%

20%

20’s30’s40’s50’sOthers

Occupation Age

* Surveyed by Wantedly

4M users including large number of executives and wide range of age groups


Monetize & Generate Synergy

4MUsers

33

Monetize by ads on “Updates” Generate Synergy

* incl. non-registered users

- Exchanging users - Feeding contents - Talent scouting

(Released beta version in Aug 2019)


Market opportunity


Some of the factors driving changes

Fall of traditional labor system

Shift in work values

“Recruitment Marketing” is emerging

Growing importance of engagement

1

2

3

4


　　Fall of traditional labor system

More and more Japan’s junior workers tend to think about future career changes at the start of working

0%

20%

40%

60%

80%

100%

2015 2016 2017 2018 2019

16.9%16.0%14.9%14.3%13.9%

3.5%3.7%4.3%2.8%3.2%

4.2%2.9%2.7%2.7%2.2%

6.6%6.8%6.7%6.9%7.4%

18.4%16.7%15.2%

11.2%9.9%

50.4%53.8%56.2%62.0%63.4%

新卒を対象としたアンケート　　出所: 株式会社ラーニングエージェンシー

1

36

Have no specific idea

Want to be stay-at-home

Want to work as a freelancer

Want to start my company someday

Want to change my job sooner or later

Want to keep working at the current workplace


Purpose and career opportunity become more important at work

　　Shift in work values2

37

Source: Recruit Agent “Survey on job changers 2017”

Leveraging skills/experiences

Work with purpose

Expectation for self growth

Future prospects of the company

Working style

Higher salary

Location

Attractive business/products

0% 20% 40% 60% 80% 100%

What were important factors when you decided your company to join?


Tighter supply-demand balance due to declining population

　　“Recruitment Marketing” is emerging

0.0

0.5

1.0

1.5

2.0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

3

38

Trends in active opening ratio

Source: Ministry of Health, Labour and Welfare


Lead Generation


Employee Success

In addition to focusing on the apparent need, it becomes necessary to target the latent needs layer to form the preliminary candidate group

Awa

rene

ss

Soft

Sele

ctio

n

Inte

rest

Co

nsid

era

tion

Ap

plic

atio

n

Sele

ctio

n

Hire

Eng

ag

e


39

　　“Recruitment Marketing” is emerging3






　　Growing importance of engagement

Declining population necessitates increases in productivity

40

0

30,000

60,000

90,000

1965 1975 1985 1995 2005 2015 2025 2035 2045 2055

working-age old-age younger（K person）

Source: "Census" by the Bureau of Internal Affairs

3


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


Listed on the TSE Mothers

Officially Started service in Hong Kong2018.06

2017.03

2017.09

Officially Started service in Singapore

2016.11 Released Wantedly People

2012.02 Officially released Wantedly (current “Wantedly Visit”)

2014.12 Won “Best App 2014” in both App Store and Google Play Store

Company History

2010.09 Akiko Naka founded Fuel, Inc. (current “Wantedly, Inc.”)

2020.03 Released Wantedly Perk


Leadership - 1

44

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 social media "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

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

Naoki Aoyama / Executive Officer, CDOAfter graduating from the Faculty of Crafts, Department of Modeling Engineering at Kyoto Institute of Technology, and completed masters at the Graduate School of Media and Governance at Keio University, entered Fujitsu Limited and was involved in UI design and art direction for Android devices. Entered Wantedly in June 2015 and assumed the present position in September 2019.

Kento Moriwaki / Executive OfficerWorked as a freelance engineer while enrolled in the Department of Environment and Energy Engineering at Osaka University. After graduating from the university, entered Wantedly as a new graduate in 2015 and was assigned to the development team for Wantedly Visit. Led projects that focus on development of new functions, such as Wantedly Feed, and renovation of existing functions. Assumed the present position in September 2019.

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 Officer

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 Officer

Toshitsugu Kanehira / Executive OfficerAfter graduating from the Faculty of Law and Economics at Chiba University, entered Honda Motor Co., Ltd., experienced dealing with accounting finance and management planning. After working at J.Score, established by Mizuho Bank and Softbank, entered Wantedly in January 2019, and been in charge of accounting, finance, management planning and IR. Assumed the present position in September 2019.


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.

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. FY2020 Q2 Financial Results · 18/8! Q1 Q2 Q3 Q4 19/8! Q1 Q2 Q3 Q4 20/8 Q1 Q2 205 195 232 259 253 249 236 211 169 149 139 140 122 85 74 78 63 71 625 581 497 536 412