VISIONAL, INC. FY2022/7 2Q
Financial Results
March 2022
Visional, Inc.
FY2022/7 2Q Financial Results and FY Financial Forecast Highlights
Consolidated
Financials
BizReach
HRMOS
- The professional hiring market continued a strong rebound trend from COVID-19 and net sales for 2Q recorded JPY 10.09Bn. For 6 months ended January, net sales were JPY 19.67Bn (61.7% YoY growth)
- Active marketing investments for BizReach, and investments to other businesses led to 2Q operating profit of JPY 1.56Bn. Operating profit for 6 months ended January was JPY 4.10Bn (171.3% YoY growth)
- The BizReach business has recorded double digit quarterly YoY growth for 4 consecutive quarters. Net sales for 2Q recoded JPY 8.63Bn (65.3% YoY growth). Net sales for 6 months ended January landed at JPY 16.90Bn (67.0% YoY growth)
- JPY 3.89Bn adjusted operating profit before corporate expense allocation for 2Q, with JPY 8.34Bn for 6 months ended January (99.1% YoY growth). As announced in 1Q, margins will decrease full year due to active marketing investments 2Q onwards
- JPY 1.42Bn ARR (26.1% YoY growth), 1,050 unique paying customers (23.7% YoY growth) as of 2Q end
- We will continue product development while aiming to increase customers through cross-selling to BizReach customers and through partner channels
- Completed acquisition of 80.1% shares of attendance management cloud provider "IEYASU" on
November 1, 2021. Completed acquisition of 100% shares of expense management cloud provider
"ezSoft" on March 1, 2022. Strategic acceleration of the development of HCM ecosystem by aligning the acquired services with HRMOS in the future. Impact of these M&A on consolidated results is negligible and is not included in this fiscal year HRMOS figures
Consolidated
Financial
Forecast
- As of now, no impact from Omicron variant observed. There are no changes to our full year FY2022/7 financial forecast of JPY 41.00Bn net sales (42.9% YoY growth)
-
Investments for business growth will continue. Visional's growth investments are higher in 2H and our full year
FY 2022/7 financial forecast for operating profit of JPY 6.00Bn remains unchanged (153.3% YoY growth) - Monitoring the market rebound trends from COVID-19, should there be any further changes, we will disclose in a timely manner
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Visional Group Consolidated Financial Results
Consolidated net sales were driven by increased sales of BizReach on the back of the continued rebound of the professional hiring market. As marketing investments higher in 2H, on track towards JPY 6.0Bn full year consolidated operating profit forecast
Consolidated Net Sales(1) | YoY Growth | Consolidated Operating Profit(1) | |||||||||||||||||||||||||||||||
JPY MM | Rate | JPY MM | |||||||||||||||||||||||||||||||
42.9% | Growth | ||||||||||||||||||||||||||||||||
2Q actuals | 2Q actuals | Investments | |||||||||||||||||||||||||||||||
41,000 | 6,000 | ||||||||||||||||||||||||||||||||
YoY Growth | |||||||||||||||||||||||||||||||||
Rate | |||||||||||||||||||||||||||||||||
61.7% | |||||||||||||||||||||||||||||||||
28,698 | 4,103 | ||||||||||||||||||||||||||||||||
25,879 | |||||||||||||||||||||||||||||||||
21,492 | 19,670 | ||||||||||||||||||||||||||||||||
1,566 | |||||||||||||||||||||||||||||||||
15,700 | |||||||||||||||||||||||||||||||||
2,186 | 2,368 | ||||||||||||||||||||||||||||||||
10,099 | |||||||||||||||||||||||||||||||||
2,536 | |||||||||||||||||||||||||||||||||
9,570 | 629 | ||||||||||||||||||||||||||||||||
514 | |||||||||||||||||||||||||||||||||
FY18/7 | FY19/7 | FY20/7 | FY21/7 | FY22/7 | FY22/7 | ||||||||||||||||||||||||||||
FY18/7 | FY19/7 | FY20/7 | FY21/7 | FY22/7 | FY22/7 | ||||||||||||||||||||||||||||
1H | FY Est | ||||||||||||||||||||||||||||||||
1H | FY Est | ||||||||||||||||||||||||||||||||
BizReach, Inc. | Visional, Inc. | BizReach, Inc. | Visional, Inc. | ||||||||||||||||||||||||||||||
(Consolidated) | (Consolidated) | (Consolidated) | (Consolidated) | ||||||||||||||||||||||||||||||
Notes: (1) Based on FY20 financials prepared by Visional, Inc. continued from the financials of BizReach, Inc. Visional, Inc. was established through a share transfer, and BizReach, Inc. became a | |||||||||||||||||||||||||||||||||
wholly-owned subsidiary of Visional, Inc. in February 2020. Therefore, FY18 to FY19 annual financial results are based on the consolidated financial results of BizReach, Inc. (All FYs end in July and | |||||||||||||||||||||||||||||||||
prepared in accordance with J-GAAP) | 3 | ||||||||||||||||||||||||||||||||
FY2022/7 2Q Financial Results Summary
Net sales for 6 months ended January grew 61.7% YoY and operating profit increased YoY. Active marketing investments including TV commercials for BizReach and HRMOS made in 2Q, resulting in a
planned increase in SG&A expenses sequentially | JPY MM | |||
6 months ended | 6 months ended | 3 months ended | 3 months ended | |
January 31, 2022 | January 31, 2021 | January 31, 2022 | October 31, 2021 | |
Net Sales | 19,670 | 12,167 | 10,099 | 9,570 |
YoY Growth (%) | 61.7% | (1.9%) | N.A. | N.A. |
HR Tech Segment(1) | 18,706 | 11,410 | 9,589 | 9,116 |
YoY Growth (%) | 63.9% | (5.0%) | N.A. | N.A. |
Incubation Segment(1) | 883 | 675 | 469 | 413 |
YoY Growth (%) | 30.7% | 74.9% | N.A. | N.A. |
Cost of Sales | 2,706 | 1,551 | 1,401 | 1,304 |
Gross Profit | 16,964 | 10,615 | 8,697 | 8,266 |
Margin (%) | 86.2% | 87.2% | 86.1% | 86.4% |
Selling, General & Administrative Expenses | 12,860 | 9,103 | 7,131 | 5,729 |
Operating Profit | 4,103 | 1,512 | 1,566 | 2,536 |
Margin (%) | 20.9% | 12.4% | 15.5% | 26.5% |
YoY Growth (%) | 171.3% | 560.7% | N.A. | N.A. |
HR Tech Segment(2) | 5,269 | 2,141 | 2,161 | 3,107 |
Incubation Segment(2) | (821) | (329) | (416) | (405) |
Pre-tax Profit | 4,280 | 1,665 | 1,658 | 2,621 |
Profit attributable to owners of parent | 2,842 | 1,086 | 1,061 | 1,780 |
Margin (%) | 14.4% | 8.9% | 10.5% | 18.6% |
YoY Growth (%) | 161.6% | (67.8%) | N.A. | N.A. |
Notes: (1) Difference between the consolidated figure and the total of HR Tech and Incubation Segments is mainly due to office rental fees from an associated company accounted for by
the equity method (2) Difference between the consolidated figure and the total of HR Tech and Incubation Segments is due to general and administrative expenses that are not allocatable | 4 |
to the reportable segments |
FY2022/7 Financial Forecast (Unchanged)
During this fiscal year, the rebound trend from COVID-19 is assumed to continue in the professional hiring market. Visional Group forecasts 42.9% net sales growth for the full year. BizReach mid-term sales target remain unchanged
JPY MM | ||||
6 months ended | Progress to | Dec. 9 release | ||
January 31, 2022 | Financial | FY22/7 | ||
Forecast (%) | Financial Forecast | |||
Net Sales | 19,670 | 48.0％ | 41,000 | |
Growth (%) | 61.7% | -- | 42.9% | |
HR Tech Segment | 18,706 | 48.1% | 38,870 | |
BizReach | 16,904 | 47.9% | 35,300 | |
HRMOS | 683 | 48.1% | 1,420 | |
Incubation Segment | 883 | 43.9% | 2,010 | |
Others | 81 | 67.2% | 120 | |
Operating Profit | 4,103 | 68.4% | 6,000 | |
Growth (%) | 171.3% | -- | 153.3% | |
Margin (%) | 20.9% | -- | 14.6 | |
Ordinary Profit | 4,280 | 67.7% | 6,320 | |
Growth (%) | 156.9% | -- | 177.9% | |
Margin (%) | 21.8% | -- | 15.4% | |
Profit Attributable to | 2,842 | 69.3% | 4,100 | |
Owners of Parent | ||||
Growth (%) | 161.6% | -- | 188.6% | |
Margin (%) | 14.4% | -- | 10.0% |
Note: (1) Based on the assumption that market expansion continues at historical pace
- Based on the current growth trend of BizReach in view of post COVID-19 recovery, FY2022/7 full year forecast for BizReach net sales is JPY 35.3Bn (no change)
- HRMOS continues to prioritize product development and is trending strongly (no change to net sales forecast)
- Investments in Incubation segment businesses continues for mid term growth (no change to net sales forecast)
- As our marketing investments is higher in 2H, operating profit forecast remains unchanged
Mid-term (3 years) net sales growth target
• BizReach：15% - 20% normalized annual growth (1)
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Visional Inc. published this content on 15 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2022 06:59:05 UTC.
