ValueCommerce Co., Ltd.
FY2020 Q1
Financial Results
April 28, 2020
Copyright © 2020, ValueCommerce Co., Ltd.
Table of Contents
Page | ||
● FY2020 Q1 | Highlights | 2 |
● FY2020 Q1 | Consolidated Financial Results | 3 |
● Segment information | 15 | |
● FY2020 Consolidated Operating/Dividends Forecast | 27 | |
● Appendix 1 | (Consolidated Financial Results Overview) | 31 |
● Appendix 2 | (STORE's R∞ : Effect of CV information deficit) | 33 |
Copyright © 2020, ValueCommerce Co., Ltd. | 1 |
FY2020 Q1 Highlights
● Q1 Result and Impact of COVID-19 Total impact is limited
Highlights
Jan.-Mar. 2020 | Y/Y | Progress against | |
full year forecast | |||
Revenue | ¥7.6 billion | +21.6% | 25.5% |
Operating Income | ¥1.5 billion | +22.9% | 27.8% |
● Q2 Forecast and Impact of COVID-19 (As of April 28)
Total
- Leave operating forecast unrevised. Impact of COVID-19 on each business is under examination - The Group will announce the revision immediately if necessary.
Affiliate Marketing
- Estimate decline in revenue in some categories such Travel, Recruiting, etc.
- Enhance the categories in demand of online-shopping, etc. and make efforts targeting after the end of the spread of COVID-19
Services for stores in the online shopping mall operated by Yahoo Japan Corporation
Attention against financial impact. Continue to make efforts to increase stores' Gross Merchandise Value (GMV).
Dynatech inc. (Develops and provides information system for accommodation facilities)
Delay in getting new customers is unavoidable. Keep relation with existing customers. | 2 |
FY2020 Q1 Consolidated
Financial Results
Copyright © 2020, ValueCommerce Co., Ltd. | 3 |
FY2020 Q1 Highlights
Results overview
・Existing services expanded Revenue: +11.5% Operating income: +19.7%
・Starts to consolidate Dynatech and B-SLASH
(Million JPY)
Quarterly
Jan.-Mar. | Y/Y | Q/Q | |
2020 | |||
Revenue | 7,661 | +21.6% | +3.6% |
Operating income | 1,526 | +22.9% | +3.5% |
EBITDA(*) | 1,747 | +31.2% | +4.8% |
Net income attributable to | 1,013 | +21.2% | +2.5% |
owners of the parent | |||
Segment revenue | |||
Marketing solution business | 4,595 | +1.6% | +10.0% |
EC solution business | 3,066 | +72.5% | -4.8% |
(*)EBITDA=Operating income+Depreciation and amortization+Amortization of goodwill | |||
Existing services expanded: | Reactionary decrease | ||
+36.5% | after year-end sale | ||
Copyright © 2020, ValueCommerce Co., Ltd. | 4 |
Consolidated Financial Results Overview Results overview
・Existing services expanded | ||
・Starts to consolidate Dynatech and B-SLASH | (Million JPY) | |
Quarterly | ||
Jan.-Mar. | Y/Y | Q/Q | |||||
2020 | |||||||
Revenue | 7,661 | +21.6% | +3.6% | ||||
Cost of revenue | 4,836 | +13.3% | +6.4% | ||||
Gross income | 2,825 | +39.0% | -0.8% | ||||
SG&A expenses | 1,298 | +64.3% | -5.5% | ||||
Related to subsidiaries | |||||||
Operating income | 1,526 | +22.9% | +3.5% | ||||
Ordinary income | Existing services expanded | 1,523 | +22.5% | +2.6% | |||
1,524 | +23.4% | +4.8% | |||||
Income before income taxes | |||||||
Income taxes | 510 | +28.1% | +9.8% | ||||
Net income attributable to owners of | 1,013 | +21.2% | +2.5% | ||||
the parent | |||||||
Basis EPS | ¥31.39 | ||||||
ROE (annualized) | 34.6% | ||||||
EBITDA(*) | 1,747 | +31.2% | +4.8% | ||||
(*)EBITDA=Operating income+Depreciation and amortization+Amortization of goodwill
Copyright © 2020, ValueCommerce Co., Ltd. | 5 |
Consolidated Revenue
Quarterly results
(Million JPY) 10,000
7,661
8,000 | 6,0936,300 | 7,395 | |||||
5,985 | |||||||
6,000 | 6,013 | ||||||
4,663 | 4,677 | 4,948 | 5,044 | ||||
3,960 | |||||||
4,024 | 4,241 | ||||||
4,000 | |||||||
2,000
0
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 |
FY2017 | FY2018 | FY2019 | FY2020 |
Copyright © 2020, ValueCommerce Co., Ltd. | 6 |
Consolidated Operating Income and Operating Margin
Quarterly results
(Million JPY) | |
Quarterly Operating Income | Quarterly Operating Margin |
1,800 | 1,242 | 1,4741,526 30.0% | |||||||||||
19.9% | |||||||||||||
19.7% | |||||||||||||
1,200 | 17.7% | 1,137 | 1,129 | 1,119 | 20.0% | ||||||||
827 | 871 | 919 | |||||||||||
12.0% | |||||||||||||
747 | |||||||||||||
600 | 483 | 575 | 10.0% | ||||||||||
416 | |||||||||||||
0 | 0.0% | ||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
FY2017 | FY2018 | FY2019 | FY2020 |
Copyright © 2020, ValueCommerce Co., Ltd. | 7 |
Consolidated Ordinary Income and Net Income
Quarterly results
(Million JPY) | Ordinary Income | Quarterly Net Income | ||
2,000
1,500 | 1,484 | 1,523 | ||||||||||||||||||||
1,242 | ||||||||||||||||||||||
1,122 | 1,139 | 1,121 | 1,013 | |||||||||||||||||||
1,000 | 989 | 836 | 989 | |||||||||||||||||||
765 | 821 | 859 | 789 | 752 | 766 | |||||||||||||||||
582 | 692 | |||||||||||||||||||||
491 | 551 | 571 | ||||||||||||||||||||
417 | 431 | |||||||||||||||||||||
500 | ||||||||||||||||||||||
330 | ||||||||||||||||||||||
121 | 126 | |||||||||||||||||||||
0 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||
FY2017 | FY2018 | FY2019 | FY2020 | |||||||||||||||||||
Impairment loss on ad network service
(Decided to close the service)
Impairment loss on CRM service for general EC business owner (Decided to close the service)
Copyright © 2020, ValueCommerce Co., Ltd. | 8 |
Cost of Revenue and Cost Rate
Quarterly results
(Million JPY) | Quarterly Cost of Revenue | Cost rate | ||
6,000 | 4,267 | 4,836 | 100.0% | ||||||||||
63.1% | |||||||||||||
70.1% | 67.7% | 4,546 | 80.0% | ||||||||||
66.9% | |||||||||||||
4,042 | |||||||||||||
4,032 | 4,024 | ||||||||||||
4,000 | |||||||||||||
3,072 | 3,128 | 3,311 | 3,380 | 60.0% | |||||||||
2,821 | 2,940 | ||||||||||||
2,731 | |||||||||||||
40.0% | |||||||||||||
2,000 | |||||||||||||
20.0% | |||||||||||||
0 | 0.0% | ||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
FY2017 | FY2018 | FY2019 | FY2020 |
Starts to consolidate Dynatech
Starts to consolidate B-SLASH
Copyright © 2020, ValueCommerce Co., Ltd. | 9 |
SG&A and SG&A ratio
Quarterly results
Y/Y Expenses of subsidiaries: +¥430M
(Compensation expense of ¥190M, Other SG&A of ¥140M, Amortization of goodwill of ¥80M)
(Million JPY) | 1,298 | ||||||||||||
1,500 | |||||||||||||
1,374 | |||||||||||||
1,000 | 718 | 812 | 725 | 843 | 721 | 766 | 744 | 914 | 790 851 | 841 | |||
500 | |||||||||||||
0 | |||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
FY2017 | FY2018 | FY2019 | FY2020 | ||||||||||
Amortization of Goodwill | 43 | 43 | 28 | 28 | 28 | 28 | 28 | 28 | 28 | 28 | 28 | 91 | 115 |
Compensation | 424 | 481 | 429 | 486 | 427 | 445 | 417 | 470 | 431 | 509 | 463 | 680 | 673 |
Other SG&A | 250 | 287 | 267 | 328 | 266 | 292 | 298 | 415 | 331 | 313 | 350 | 602 | 508 |
SG&A total | 718 | 812 | 725 | 843 | 721 | 766 | 744 | 914 | 790 | 851 | 841 | 1,374 1,298 | |
SG&A ratio(%) | 17.9 | 20.5 | 17.1 | 18.1 | 15.4 | 15.5 | 14.8 | 15.0 | 12.5 | 14.2 | 14.1 | 18.6 | 16.9 |
Starts to consolidate Dynatech
Starts to consolidate B-SLASH | Ltd. | 10 |
Number of employees
Quarterly results
500 | |||||||||||||||||||||||
398 | 391 | 404 | |||||||||||||||||||||
400 | |||||||||||||||||||||||
273 | |||||||||||||||||||||||
300 | |||||||||||||||||||||||
248 | 240 | 236 | 241 | 244 | 242 | 246 | 246 | 250 | |||||||||||||||
200 | |||||||||||||||||||||||
100 | |||||||||||||||||||||||
0 | |||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||
FY2017 | FY2018 | FY2019 | FY2020 | ||||||||||||||||||||
VC | 242 | 235 | 231 | 236 | 244 | 242 | 246 | 246 | 250 | 273 | 273 | 266 | 266 | ||||||||||
Subsidiaries | 6 | 5 | 5 | 5 | - | - | - | - | - | - | 125 | 125 | 138 | ||||||||||
Total Employees | 248 | 240 | 236 | 241 | 244 | 242 | 246 | 246 | 250 | 273 | 398 | 391 | 404 | ||||||||||
- Starts to consolidate Dynatech in September 2019. | |||||||||||||||||||||||
* Including temporary employees. | - Account compensation expense from 2019Q4 | ||||||||||||||||||||||
- Starts to consolidate B-SLASH in January 2020. | |
- Account compensation expense from 2020Q1 | Co., Ltd. 11 |
Breakdown of Consolidated Operating Income
Results overview
(Million JPY) | Existing services expanded. | |
(based on operating income) | ||
+213 | -38 | |
+78
1,242 +30
1,526
2019 Q1 | Affiliate Storematch STORE's R∞ Other | 2020 Q1 |
Marketing |
(Note) Calculated based on the profit of each service and other factors.
Copyright © 2020, ValueCommerce Co., Ltd. | 12 |
Consolidated Balance Sheet
Results overview
(Million JPY)
Q4'19 End | Q1'20 End | Change | Factors of Change |
(Dec.31,2019) | (Mar.31,2020) | ||
Current assets | 13,472 | 12,850 | -621 | Cash and deposits: -511 | |
Notes and accounts receivable- | |||||
trade: -206 | Related to B-SLASH | ||||
Cash and | [7,862] | [7,350] | -511 | -Software: +134 | |
deposits | -Goodwill: +456 | ||||
Noncurrent | 4,539 | 5,178 | +639 | Software: +227 | |
assets | Goodwill: +364 | ||||
Total assets | 18,011 | 18,029 | +17 | ||
Accounts payable-trade: +107 | |||||
Current | 6,437 | 5,966 | -471 | Provision for bonuses: +126 | |
liabilities | Accounts payable-other:-414 | ||||
Income tax payable: -510 | |||||
Noncurrent | 82 | 110 | +28 | ||
liabilities | |||||
Net assets | 11,491 | 11,952 | +460 | Net income: +1,013 | |
Cash dividends paid: -613 |
Copyright © 2020, ValueCommerce Co., Ltd. | 13 |
Consolidated Cash Flows
Results overview
(Million JPY) | (Million JPY) |
Jan.-Mar.Jan.-Mar. | ||
2019 | 2020 | |
Operating cash flows | 489 | 803 |
Investing cash flows | -23 | -707 |
Acquisition of share of B-SLASH Corporation | ||
Free cash flows | 465 | 96 |
Financing cash flows | -570 | -608 |
Incremental cash | -105 | -511 |
flows | ||
Ending cash balance | 7,872 | 7,350 |
Breakdown
● Operating cash flows | |
Income before income taxes | 1,524 |
Depreciation and amortization | 104 |
Amortization of goodwill | 115 |
Decrease in accounts receivable-trade | 206 |
Increase in accounts payable-trade | 107 |
Decrease in accounts receivable-other | 52 |
Decrease in accounts payable-other | -482 |
Income taxes paid | -1,005 |
● Investing cash flows | |
Proceeds from distribution of investment | 92 |
in partnership | |
Purchase of intangible assets | -206 |
Acquisition of share of subsidiary | -537 |
● Financing cash flows | |
Cash dividends paid | -607 |
Copyright © 2020, ValueCommerce Co., Ltd. | 14 |
Segment Information
Copyright © 2020, ValueCommerce Co., Ltd. | 15 |
Segment Information
Overview by segment
- "Marketing Solution Business" mainly includes "Affiliate Marketing"
- "EC Solution Business" mainly includes "Storematch", "STORE's R∞" and subsidiaries; "Dynatech" and "B-SLASH"
(Million JPY) | |||||
Quarterly | |||||
Jan.-Mar. | Y/Y | Q/Q | |||
2020 | |||||
Marketing | Segment revenue | 4,595 | +1.6% | +10.0% | |
Solution | |||||
Business | Segment operating | 826 | +3.9% | +29.0% | |
income | |||||
Segment revenue | 3,066 | +72.5% | -4.8% | ||
EC Solution | |||||
Business | Segment operating | 1,021 | +43.0% | -17.9% | |
income | |||||
(Notes) Segment operating income is adjusted to operating income in the consolidated financial statement.
- Existing services expanded Revenue: +36.5% Operating income: +37.4%
- Starts to consolidate Dynatech and B-SLASH
Effect of CV information deficit
- Please refer P.41 about adjusted figures
Copyright © 2020, ValueCommerce Co., Ltd. | 16 |
Service Information
Overview by segment
(Million JPY) | ||||||||||
Quarterly | ||||||||||
Jan.-Mar. | Y/Y | Q/Q | ||||||||
2020 | ||||||||||
Marketing | Affiliate | Revenue | 4,584 | +1.5% | +9.8% | |||||
Solution | marketing | |||||||||
Gross | ||||||||||
Business | (ASP+Consulting) | 1,256 | +3.7% | +7.4% | ||||||
income | ||||||||||
Revenue | 1,570 | +41.9% | -2.6% | |||||||
Storematch | ||||||||||
Gross | 366 | +36.1% | -6.8% | |||||||
EC Solution | income | |||||||||
Business | Revenue | 857 | +31.5% | -26.5% | ||||||
STORE's R∞ | ||||||||||
Gross | 857 | +31.5% | -26.5% | |||||||
income | ||||||||||
Good performance | ||||||||||
Effect of CV information deficit | ||||||||||
- Please refer P.42 about adjusted figures | ||||||||||
Copyright © 2020, ValueCommerce Co., Ltd. | 17 |
Affiliate Marketing Revenue by Service
Affiliate marketing
(Million JPY) | |||||||||||||||||||||||
5,000 | 4,516 | 4,174 | 4,584 | ||||||||||||||||||||
4,277 | 4,220 | 4,104 | |||||||||||||||||||||
3,756 | |||||||||||||||||||||||
4,000 | 3,499 | 3,724 | |||||||||||||||||||||
3,145 3,133 3,379 | 3,564 | ||||||||||||||||||||||
3,000 | |||||||||||||||||||||||
2,000 | |||||||||||||||||||||||
1,000 | |||||||||||||||||||||||
0 | |||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||
FY2017 | FY2018 | FY2019 | FY2020 | ||||||||||||||||||||
ASP | 588 | 593 | 569 | 599 | 594 | 539 | 558 | 637 | 685 | 660 | 695 | 697 | 731 | ||||||||||
Consulting | 2,557 | 2,539 | 2,809 | 2,900 | 2,970 | 3,184 | 3,198 | 3,640 | 3,830 | 3,559 | 3,409 | 3,477 | 3,853 | ||||||||||
Affiliate Marketing total | 3,145 | 3,133 | 3,379 | 3,499 | 3,564 | 3,724 | 3,756 | 4,277 | 4,516 | 4,220 | 4,104 | 4,174 | 4,584 | ||||||||||
Copyright © 2020, ValueCommerce Co., Ltd. | 18 |
Affiliate Marketing
Gross Income by Service
Affiliate marketing
(Million JPY) | 1,500 | |||||||||
1,211 | 1,256 | |||||||||
1,128 | 1,164 | 1,162 1,169 | ||||||||
951 | 940 | 970 | 975 | 1,000 | 1,005 1,024 | |||||
1,000 | ||||||||||
500
0 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |||||
FY2017 | FY2018 | FY2019 | FY2020 | ||||||||||||||
ASP | 493 | 502 | 504 | 515 | 529 | 502 | 516 | 570 | 639 | 604 | 631 | 623 | 680 | ||||
Consulting | 458 | 438 | 466 | 459 | 470 | 502 | 508 | 557 | 572 | 560 | 531 | 545 | 576 | ||||
Affiliate Marketing total | 951 | 940 | 970 | 975 | 1,000 | 1,005 | 1,024 | 1,128 | 1,211 | 1,164 | 1,162 | 1,169 | 1,256 | ||||
Gross Profit Margin(%) | 30.3 | 30.0 | 28.7 | 27.9 | 28.1 | 27.0 | 27.3 | 26.4 | 26.8 | 27.6 | 28.3 | 28.0 | 27.4 |
Copyright © 2020, ValueCommerce Co., Ltd. | 19 |
Number of Advertisers & Publishers
Advertisers (Number of ID)
Affiliate marketing
1,500 | 1,146 | 1,147 1,146 | ||||
1,144 | 1,140 1,128 1,090 1,064 1,020 1,005 1,001 | 1,013 1,004 | ||||
750 | ||||||
0 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |||||
FY2017 | FY2018 | FY2019 | FY2020 | ||||||||||||||
Publishers (Number of ID) | |||||||||||||||||
(Thousand) | |||||||||||||||||
1,200 | 669 | 679 | 688 | 697 | 708 | 718 | 729 | 739 | 750 | 759 | 759 | 764 | 772 | ||||
800 | |||||||||||||||||
400 | |||||||||||||||||
0 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |||||
FY2017 | FY2018 | FY2019 | FY2020 | ||||||||||||||
Copyright © 2020, ValueCommerce Co., Ltd. | 20 |
Affiliate Marketing
Revenue Breakdown by Category
Affiliate marketing
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Finance | Electronics | Travel | Recruiting | Shopping | Beauty | Gourmet | Other | |||||||||||||||||||
16.3% | 12.5% | 12.8% | 12.3% | 12.3% | 12.3% | 11.2% | 11.1% 10.7% | 10.5% | 10.3% | 10.8% 11.8% | ||||||||||||||||
1.0% | 1.0% | 1.7% | 3.1% | 2.1% | 2.2% | 5.2% | 5.5% | 2.4% | 1.9% | 3.2% | 5.0% | |||||||||||||||
2.2% | 7.7% | 7.3% | 6.4% | |||||||||||||||||||||||
8.7% | 8.7% | 8.6% | 9.2% | |||||||||||||||||||||||
8.5% | 9.3% | 7.3% | 6.4% | 5.2% | ||||||||||||||||||||||
7.2% | 8.4% | 8.6% | ||||||||||||||||||||||||
8.0% | 7.7% | 8.5% | 7.1% | |||||||||||||||||||||||
9.0% | 9.7% | 8.1% | 8.8% | 10.2% | 8.2% | |||||||||||||||||||||
9.5% | ||||||||||||||||||||||||||
10.3% | 9.6% | 9.6% | 10.9% | 10.0% 10.9% | 12.0% | 11.7% | 12.1% | 12.0% | ||||||||||||||||||
9.9% | 11.9% | 13.8% | ||||||||||||||||||||||||
14.3% | 19.2% | 15.4% | 14.0% | 13.9% | 11.2% 10.6% | 12.7% | 14.1% | 12.2% | 9.9% | |||||||||||||||||
13.6% | ||||||||||||||||||||||||||
15.5% | ||||||||||||||||||||||||||
15.5% | ||||||||||||||||||||||||||
10.3% | 10.1% | 8.2% | 12.5% | 11.1% | 10.6% | 11.6% | 13.1% 17.4% | 17.7% | 18.3% | 18.3% | ||||||||||||||||
30.9% | 34.1% | 32.6% | 30.0% | 32.0% | 31.2% | 26.4% | 34.0% | 30.8% | 28.5% | 28.0% | 28.3% | 33.5% | ||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||
FY2017 | FY2018 | FY2019 | FY2020 | |||||||||||||||||||||||
Copyright © 2020, ValueCommerce Co., Ltd. | 21 |
Affiliate Marketing Commissions for Publishers
Affiliate marketing
(Million JPY) | Commissions for publishers | Smartphone ratio | ||
6,000 | 4,707 | 5,306 | 5,388 100.0% | ||||||||||
4,312 | 4,898 4,843 4,945 | ||||||||||||
3,961 | 4,320 | ||||||||||||
4,055 4,087 | |||||||||||||
4,000 | 3,667 | 3,776 | |||||||||||
62.5% | |||||||||||||
58.5% | 50.0% | ||||||||||||
45.5% | 50.4% | ||||||||||||
2,000 | |||||||||||||
0 | 0.0% | ||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
FY2017 | FY2018 | FY2019 | FY2020 |
Copyright © 2020, ValueCommerce Co., Ltd. | 22 |
Affiliate Marketing Number of Transactions
Affiliate marketing
(Million) | Number of transaction | Smartphone ratio | ||
20.0 | 16.4 | 100.0% | ||||||||||
16.9 | 16.1 | 16.1 | 17.2 | |||||||||
14.8 | 15.1 | 14.6 | 15.7 | 15.8 | 14.9 | 14.5 | 14.9 | |||||
51.8% | 62.1% | |||||||||||
10.0 | 50.0% | |||||||||||
33.5% | 40.4% | |||||||||||
0.0 | 0.0% | |||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 |
FY2017 | FY2018 | FY2019 | FY2020 |
Copyright © 2020, ValueCommerce Co., Ltd. | 23 |
Storematch Revenue by Service
Storematch
(Million JPY)
2,000
1,611 1,570
1,500
1,106 1,133 1,251
1,051
1,000
500
456 463 471
593 596 642
719
0 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |||||
FY2017 | FY2018 | FY2019 | FY2020 | ||||||||||||||
Storematch | 398 | 416 | 424 | 516 | 537 | 584 | 659 | 959 | 1,039 | 1,065 | 1,177 | 1,521 | 1,504 | ||||
Other | 58 | 46 | 47 | 76 | 59 | 58 | 60 | 91 | 67 | 67 | 73 | 90 | 66 | ||||
Storematch total | 456 | 463 | 471 | 593 | 596 | 642 | 719 | 1,051 | 1,106 | 1,133 | 1,251 | 1,611 | 1,570 | ||||
Copyright © 2020, ValueCommerce Co., Ltd. | 24 |
Storematch
Gross Income by Service
Storematch
(Million JPY)
500 | |||||||||||||||||
393 | 366 | ||||||||||||||||
400 | |||||||||||||||||
269 286 | 310 | ||||||||||||||||
300 | 282 | ||||||||||||||||
181 | 174 | 192 | |||||||||||||||
200 | |||||||||||||||||
166 | |||||||||||||||||
142 | 134 | 132 | |||||||||||||||
100 | |||||||||||||||||
0 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |||||
FY2017 | FY2018 | FY2019 | FY2020 | ||||||||||||||
Storematch | 83 | 87 | 85 | 104 | 107 | 116 | 131 | 191 | 202 | 218 | 236 | 303 | 300 | ||||
Other | 58 | 46 | 47 | 76 | 59 | 58 | 60 | 91 | 67 | 67 | 73 | 90 | 66 | ||||
Storematch total | 142 | 134 | 132 | 181 | 166 | 174 | 192 | 282 | 269 | 286 | 310 | 393 | 366 | ||||
Gross Profit Margin(%) | 31.1 | 29.0 | 28.2 | 30.5 | 28.0 | 27.2 | 26.7 | 26.9 | 24.4 | 25.3 | 24.8 | 24.4 | 23.4 | ||||
Copyright © 2020, ValueCommerce Co., Ltd. | 25 |
STORE's R∞ | STORE's R∞ | ||||||||||||||||
Revenue | |||||||||||||||||
(Million JPY) | |||||||||||||||||
1,500 | |||||||||||||||||
1,167 | |||||||||||||||||
1,000 | |||||||||||||||||
857 | |||||||||||||||||
510 | 738 | 652 635 | 603 | ||||||||||||||
546 | 537 | ||||||||||||||||
500 | 475 | ||||||||||||||||
219 | 280 | ||||||||||||||||
163 | |||||||||||||||||
0 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |||||
FY2017 | FY2018 | FY2019 | FY2020 | ||||||||||||||
Effect of CV information deficit | |||||||||||||||||
- Please refer P.43 about adjusted figures | |||||||||||||||||
Copyright © 2020, ValueCommerce Co., Ltd. | 26 |
FY2020 Consolidated
Operating/Dividend
Forecast
Copyright © 2020, ValueCommerce Co., Ltd. | 27 |
FY2020 Consolidated Operating Forecast
Operating forecast
- Leave operating forecast unrevised. Impact of COVID-19 on each business is under examination
- The Group will announce the revision immediately if necessary.
(Million JPY) | ||||||||
Q1'20 | First Half | Full Year | ||||||
Result | Forecast | Y/Y | Q1'20 | Forecast | Y/Y | Q1'20 | ||
Progress | Progress | |||||||
Revenue | 7,661 | 14,300 | +16.1% | 53.6% | 30,000 | +16.8% | 25.5% | |
Operating income | 1,526 | 2,550 | +7.5% | 59.9% | 5,500 | +10.7% | 27.8% | |
Ordinary income | 1,523 | 2,550 | +7.0% | 59.7% | 5,500 | +10.3% | 27.7% | |
Net income | ||||||||
attributable to | 1,013 | 1,670 | +5.1% | 60.7% | 3,600 | +7.6% | 28.2% | |
owners of the parent | ||||||||
Basis EPS | ¥31.39 | ¥51.70 | ¥111.45 | |||||
Copyright © 2020, ValueCommerce Co., Ltd. | 28 |
FY2020 Dividends Forecast
Dividends forecast
The target payout ratio is 30%
- Dividends per Share, Consolidated Payout Ratio
Interim Dividend | ¥16.00 (forecast) |
Year-end Dividend | ¥18.00 (forecast) |
Total | ¥34.00 (forecast) |
Consolidated Payout Ratio | 30.5% (forecast) |
Copyright © 2020, ValueCommerce Co., Ltd. | 29 |
Appendix 1
Copyright © 2020, ValueCommerce Co., Ltd. | 31 |
Consolidated Results and Cash Flows | (Quarterly) | |||||||||
(Million JPY) | ||||||||||
FY2018 | FY2019 | FY2020 | ||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | ||
Revenue (+ASP commission for publisher) | 6,387 | 6,574 | 6,667 | 7,868 | 8,357 | 7,934 | 8,004 | 9,323 | 9,745 | |
Affiliate marketing revenue(+ASP commission | 5,274 | 5,350 | 5,379 | 6,052 | 6,573 | 6,141 | 6,123 | 6,101 | 6,668 | |
for publisher) | ||||||||||
Revenue | 4,677 | 4,948 | 5,044 | 6,093 | 6,300 | 6,013 | 5,985 | 7,395 | 7,661 | |
Affiliate marketing(Consulting) | 2,970 | 3,184 | 3,198 | 3,640 | 3,830 | 3,559 | 3,409 | 3,477 | 3,853 | |
Affiliate marketing(ASP) | 594 | 539 | 558 | 637 | 685 | 660 | 695 | 697 | 731 | |
Storematch | 596 | 642 | 719 | 1,051 | 1,106 | 1,133 | 1,251 | 1,611 | 1,570 | |
STORE's R∞ | 475 | 546 | 537 | 738 | 652 | 635 | 603 | 1,167 | 857 | |
Others | 41 | 35 | 30 | 26 | 24 | 24 | 25 | 442 | 648 | |
Cost of revenue (-) | 3,128 | 3,311 | 3,380 | 4,042 | 4,267 | 4,032 | 4,024 | 4,546 | 4,836 | |
Cost of revenue (direct) | 3,007 | 3,199 | 3,269 | 3,923 | 4,146 | 3,909 | 3,890 | 4,381 | 4,672 | |
Affiliate marketing (Consulting) | 2,499 | 2,682 | 2,690 | 3,082 | 3,258 | 2,999 | 2,877 | 2,931 | 3,277 | |
Affiliate marketing(ASP) | 64 | 36 | 41 | 66 | 46 | 56 | 64 | 73 | 51 | |
Storematch | 429 | 468 | 527 | 768 | 836 | 846 | 940 | 1,218 | 1,203 | |
Others | 14 | 12 | 9 | 6 | 4 | 6 | 7 | 158 | 141 | |
Cost of revenue (indirect) | 120 | 112 | 111 | 118 | 120 | 123 | 133 | 165 | 163 | |
Gross profit | 1,549 | 1,637 | 1,663 | 2,051 | 2,033 | 1,980 | 1,961 | 2,848 | 2,825 | |
SG&A expenses (-) | 721 | 766 | 744 | 914 | 790 | 851 | 841 | 1,374 | 1,298 | |
Compensation | 427 | 445 | 417 | 470 | 431 | 509 | 463 | 680 | 673 | |
Other SG&A | 294 | 320 | 326 | 443 | 359 | 341 | 378 | 694 | 624 | |
Operating income | 827 | 871 | 919 | 1,137 | 1,242 | 1,129 | 1,119 | 1,474 | 1,526 | |
Ordinary income | 821 | 859 | 989 | 1,122 | 1,242 | 1,139 | 1,121 | 1,484 | 1,523 | |
Extraordinary gains/losses (net) | -3 | -12 | 12 | 34 | -7 | -40 | -2 | -30 | 1 | |
Income before income taxes | 817 | 847 | 1,002 | 1,157 | 1,234 | 1,098 | 1,118 | 1,454 | 1,524 | |
Income tax | 266 | 276 | 309 | 367 | 398 | 346 | 352 | 464 | 510 | |
Net income attributable to owners of the | 551 | 571 | 692 | 789 | 836 | 752 | 766 | 989 | 1,013 | |
parent | ||||||||||
Depreciation & amortization | 83 | 88 | 87 | 92 | 88 | 94 | 97 | 193 | 220 | |
Operating cash flow | 135 | 1,027 | 386 | 1,207 | 489 | 1,392 | 582 | 1,576 | 803 | |
Investing cash flow | -66 | -2 | 627 | 69 | -23 | -149 | -2,680 | -280 | -707 | |
Financing cash flow | -213 | 12 | -210 | 3 | -570 | 0 | -449 | -1 | -608 | 32 |
Appendix 2
Copyright © 2020, ValueCommerce Co., Ltd. | 33 |
STORE's R∞ : Effect of CV information deficit
In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to 2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information.
As STORE's R∞ revenue is calculated based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4.
The amount in case of retrospective adjustment is as below;
Period : From 2018Q3 to 2019Q3
Amount : Revenue 195 million JPY
(Million JPY) | FY2018 | FY2019 | |||||
Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
STORE's R∞: Revenue adjustment | 7 | 17 | 32 | 54 | 83 | -195 | |
- Effect of CV information deficit | |||||||
Copyright © 2020, ValueCommerce Co., Ltd. | 34 |
(Adjusted) FY2020 Q1 Highlights
Results overview
In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to 2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.
(Million JPY) | ||||
Quarterly | ||||
Jan.-Mar. | Y/Y | Q/Q | ||
2020 | ||||
Revenue | 7,661 | +21.0% | +6.4% | |
Operating income | 1,526 | +19.8% | +19.4% | |
EBITDA(*) | 1,747 | +28.1% | +18.7% | |
Net income attributable to | 1,013 | +18.1% | +18.8% | |
owners of the parent | ||||
Segment revenue | ||||
Marketing solution business | 4,595 | +1.6% | +10.0% | |
EC solution business | 3,066 | +69.4% | +1.4% | |
(*)EBITDA=Operating income+Depreciation and amortization+Amortization of goodwill
Copyright © 2020, ValueCommerce Co., Ltd. | 35 |
(Adjusted) Consolidated Financial Results OverviewResults overview
In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to
2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated
based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.
Quarterly | (Million JPY) | |||
Jan.-Mar. | Y/Y | Q/Q | ||
2020 | ||||
Revenue | 7,661 | +21.0% | +6.4% | |
Cost of revenue | 4,836 | +13.3% | +6.4% | |
Gross income | 2,825 | +36.8% | +6.5% | |
SG&A expenses | 1,298 | +64.3% | -5.5% | |
Operating income | 1,526 | +19.8% | +19.4% | |
Ordinary income | 1,523 | +19.5% | +18.2% | |
Income before income taxes | 1,524 | +20.3% | +21.1% | |
Income taxes | 510 | +25.0% | +26.1% | |
Net income attributable to owners of | 1,013 | +18.1% | +18.8% | |
the parent | ||||
EBITDA(*) | 1,747 | +28.1% | +18.7% | |
(*)EBITDA=Operating income+Depreciation and amortization+Amortization of goodwill
Copyright © 2020, ValueCommerce Co., Ltd. | 36 |
(Adjusted) Consolidated Revenue
Quarterly results
In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to
2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated
based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.
(Million JPY)
10,000 | ||||||||||
7,661 | ||||||||||
8,000 | 7,200 | |||||||||
6,332 | ||||||||||
6,111 | 6,068 | 6,069 | ||||||||
6,000 | 4,241 | 4,663 | 4,677 | 4,948 | 5,052 | |||||
4,024 | ||||||||||
3,960 | ||||||||||
4,000 | ||||||||||
2,000 | ||||||||||
0
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 |
FY2017 | FY2018 | FY2019 | FY2020 |
Copyright © 2020, ValueCommerce Co., Ltd. | 37 |
(Adjusted) Consolidated Operating IncomeQuarterly results and Operating Margin
In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to 2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.
(Million JPY) | Quarterly Operating Income | Quarterly Operating Margin | ||
1,800 | 1,274 | 1,526 | 30.0% | ||||||||||||
20.1% | 1,279 | 19.9% | |||||||||||||
1,203 | |||||||||||||||
1,200 | 17.7% | 1,154 | 1,184 | 20.0% | |||||||||||
827 | 871 | 926 | |||||||||||||
12.0% | 747 | ||||||||||||||
600 | 483 | 575 | 10.0% | ||||||||||||
416 | |||||||||||||||
0 | 0.0% | ||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |||
FY2017 | FY2018 | FY2019 | FY2020 |
Copyright © 2020, ValueCommerce Co., Ltd. | 38 |
(Adjusted) Consolidated Ordinary Income Quarterly results and Net Income
In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to 2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.
(Million JPY) | Ordinary Income | Quarterly Net Income | ||||||||||||||||||||||||
2,000 | ||||||||||||||||||||||||||
1,2751,194 | 1,204 | 1,523 | ||||||||||||||||||||||||
1,500 | 1,140 | 1,289 | 1,013 | |||||||||||||||||||||||
996 | 858 | |||||||||||||||||||||||||
1,000 | 859 | |||||||||||||||||||||||||
765 | 821 | 697 | 801 | 790 | 824 | 853 | ||||||||||||||||||||
582 | 571 | |||||||||||||||||||||||||
491 | 417 | 431 | 551 | |||||||||||||||||||||||
500 | ||||||||||||||||||||||||||
330 | ||||||||||||||||||||||||||
121 | 126 | |||||||||||||||||||||||||
0 | ||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||
FY2017 | FY2018 | FY2019 | FY2020 | |||||||||||||||||||||||
Impairment loss on ad | Impairment loss on CRM service | |||||||||||||||||||||||||
network service | for general EC business owner | |||||||||||||||||||||||||
(Decided to close the service) | (Decided to close the service) | |||||||||||||||||||||||||
Copyright © 2020, ValueCommerce Co., Ltd. | 39 |
(Adjusted) Cost of Revenue and Cost RateQuarterly results
In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to
2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated
based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.
(百万円) | Quarterly Cost of Revenue | Cost rate | ||
6,000 | 100.0% | ||||||||||||
4,546 | 4,836 | ||||||||||||
80.0% | |||||||||||||
70.1% | 66.9% | 4,042 | 4,267 | ||||||||||
4,032 | 4,024 | ||||||||||||
4,000 | |||||||||||||
3,311 3,380 | |||||||||||||
2,821 | 2,731 | 2,940 | 3,072 | 3,128 | 60.0% | ||||||||
2,000 | 67.4% | 63.1% | 40.0% | ||||||||||
20.0% | |||||||||||||
0 | 0.0% | ||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
FY2017 | FY2018 | FY2019 | FY2020 |
Copyright © 2020, ValueCommerce Co., Ltd. | 40 |
(Adjusted) Segment Information
Overview by segment
In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to
2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated
based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.
(Million JPY) | ||||||
Quarterly | ||||||
Jan.-Mar. | Y/Y | Q/Q | ||||
2020 | ||||||
Segment revenue | 4,595 | +1.6% | +10.0% | |||
Marketing Solution | ||||||
Business | Segment operating | 826 | +3.9% | +29.0% | ||
income | ||||||
Segment revenue | 3,066 | +69.4% | +1.4% | |||
EC Solution | ||||||
Business | Segment operating | 1,021 | +36.8% | -2.5% | ||
income | ||||||
(Notes) Segment operating income is adjusted to operating income in the consolidated financial statement.
Copyright © 2020, ValueCommerce Co., Ltd. | 41 |
(Adjusted) Service Information
Overview by segment
In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to
2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated
based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.
(Million JPY) | ||||||||||
Quarterly | ||||||||||
Jan.-Mar. | Y/Y | Q/Q | ||||||||
2020 | ||||||||||
Marketing | Affiliate | Revenue | 4,584 | +1.5% | +9.8% | |||||
Solution | ||||||||||
marketing | Gross income | 1,256 | +3.7% | +7.4% | ||||||
Business | ||||||||||
Revenue | 1,570 | +41.9% | -2.6% | |||||||
Storematch | ||||||||||
EC Solution | Gross income | 366 | +36.1% | -6.8% | ||||||
Business | Revenue | 857 | +25.3% | -11.7% | ||||||
STORE's R∞ | ||||||||||
Gross income | 857 | +25.3% | -11.7% | |||||||
Reactionary decrease | ||||||||||
Good performance | after year-end sale | |||||||||
Copyright © 2020, ValueCommerce Co., Ltd. | 42 |
(Adjusted) STORE's R∞ Revenue | STORE's R∞ |
In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to 2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.
(Million JPY)
1,500
1,000 | 971 | ||||||||||||||
857 | |||||||||||||||
755 684 | 690 | 687 | |||||||||||||
500 | 510 | 475 | 546 | 544 | |||||||||||
219 | 280 | ||||||||||||||
163 | |||||||||||||||
0 | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |||
FY2017 | FY2018 | FY2019 | FY2020 | ||||||||||||
Copyright © 2020, ValueCommerce Co., Ltd. | 43 |
Disclaimer
- This presentation material is intended to provide reference information as material for investors. Neither ValueCommerce nor its personnel assume any responsibility for the accuracy, appropriateness, or integrity of the information contained in this material.
- This presentation is not intended to solicit investment in connection with the acquisition of ValueCommerce's securities. It does not contain all information essential to any decision on investment in ValueCommerce's securities. In the event of making an investment decision, you are advised to refer to the Company's securities reports and other statutory disclosure documents and its published materials in addition to this presentation material.
- This presentation material contains financial outlooks and other statements on future results. Actual results may differ materially from those described in this material due to various factors.
- For details about factors that may have an impact on ValueCommerce's financial results, please refer to "Risk Factors" on ValueCommerce's website (https://www.valuecommerce.co.jp/en/ir/risk_factors/). However, please note that the factors that have an impact on ValueCommerce's financial results are not confined to those described in "Risk Factors."
Copyright © 2020, ValueCommerce Co., Ltd. | 44 |
Corporate Information
Corporate name | ValueCommerce Co., Ltd. |
Established | 1996 |
Fiscal year end | December |
HQ location | MINAMI AOYAMA BRIGHT SQUARE 3F |
2-26-1Minami-Aoyama,Minato-ku, Tokyo 107-0062 Japan | |
Representative | Jin Kagawa, |
Representative Director, President and CEO | |
Businesses | Marketing Solution Business (Affiliate marketing) |
EC Solution Business (Storematch, STORE's R∞, Dynatech, B-SLASH) | |
Main shareholder | Z Holdings Corporation |
Slogan | Building Together |
Mission | To Create New Value with Information Technologies |
Vision | To Be the Best Performance Marketing Company Representing Japan |
Corporate website | https://www.valuecommerce.co.jp/en/ir/ |
Contact us | E-mail: investor_relations@valuecommerce.co.jp |
Copyright © 2020, ValueCommerce Co., Ltd. | 45 |
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ValueCommerce Co. Ltd. published this content on 28 April 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2020 07:17:03 UTC