Financial
Results
Briefing
The 1st Quarter of
the Fiscal Year Ending March 31, 2025
August 9, 2024

GEECHS Inc.
TSE Standard Market: 7060

©2024 GEECHS Inc.

Financial
Results
Briefing

1. Financial Highlights

2

2. Results by Segment

7

3. Medium-term Growth Strategy

13

4. Appendix

19

Contents
1

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

Financial
Results
Briefing

Financial Highlights

Financial Highlights
for FY3/2025 1Q

2

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

1©2024 GEECHS Inc.

FY3/25 1Q : Executive Summary

1Q sales reached 5.8 billion yen and operating profit was 80 million yen, in line with the company plan.
◼

IT freelance matching business (Japan) continue to be in high demand, achieving record quarterly sales of over 3.69 billion yen.

◼

IT freelance matching business (Overseas) started in line with the company’s plan.

◼

Seed Tech business is steadily progressing, primarily focus on offshore development.

◼

Strengthening M&A sourcing and hiring of professionals are progressing well in anticipation of the mid-term growth strategy.

Sales

(JPY)

EBITDA

Operating Income

Net Income*

1Q

5,825 M

107M

80 M

58 M

YoY

（- 2.0%）（+ 7.2%）（+ 175.8%）（+ 1,150.1%）*Net income attributable to owners of parent for the quarter

3

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

FY3/25 1Q : Financial Highlights (Gross Sales, Operating Margin)■

G2 Studios business*1 was excluded from the consolidation, resulting in 1Q sales of 5.82 billion yen, 2.0% YoY decrease.
However, sales excluding G2 Studios business showed a solid growth of 8.2% YoY.

(million yen)

7,000

■ Sales (IT freelance matching business (Japan) + IT freelance
matchihng business (Overseas) + Seed Tech + Other) *2

YoY■ Sales (G2 Studios)● Operating margin

-

5,945

6,000

30.0%

2.0%

5,825

G2 Studios
5,000
4,000

(Game Business)

25.0%
20.0%

5,384

15.0%

3,524

10.0%

3,000

3,081

5.0%

2,000

0.0%

1,000

-5.0%

0

-10.0%
1Q

2Q

3Q

4Q

FY3/23

1Q

2Q

3Q

FY3/24

4Q

1Q

FY3/25*1 G2 Studio’s shares were transferred in FY3/24 and excluded from consolidation from FY3/24.
*2 Started consolidation of IT freelance matching business (Overseas) from 1Q FY3/24.
4

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

FY3/25 1Q : Financial Highlights (EBITDA, Operating Profit)■

Operating profit for 1Q amounted to 80 million yen, 175.8% YoY growth.

(million yen)

■ EBITDA■ Operating income

500

400

300

200

107

100
100

80

29

0
1Q
-100

-200

5

-104
-119

2Q

3Q

FY3/23Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

4Q

1Q

2Q

3Q

FY3/24

4Q

1Q

FY3/25©2024 GEECHS Inc.

FY3/25 Full-year: Financial Highlights by Segment■

IT Freelance Matching Business (Japan)■ IT Freelance Matching Business (Overseas)■ Seed Tech Business■ Group-wide Expenses and Adjustment Costs: Achieved record sales of 3.69 billion yen. Despite an increase in personnel expenses, operating profit remained at 295 million yen.
: Sales reached 2.04 billlion yen, 11.3% YoY growth, progressing in line with the company’s plan.
: Sales reached 72 million yen maintaining a strong growth of 37.5% YoY.
: Appropriate cost control as per company plan.

FY3/24
1Q(million yen)

３,694

+6.7%

15,800

23.4%

Income

295

+4.5%

1,280

23.1%

Sales

1,840

+11.3%

10,000

20.5%

-

0

-

Sales

IT Freelance Matching
Business (Overseas)

Other

Income

-21

2,048
-36

Sales

52

72

+37.5%

400

18.1%

Income

-9

-13

-

50

-

Sales

33

14

-55.3%

100

14.8%

Income

3

-9

-

0

-

-151

-155

-

-630

-

Group-wide Expenses andAdjustment Costs

6

Full-year Forecast
Forecast
Achievement rate

YoY

3,460
282

IT Freelance Matching
Business (Japan)

Seed Tech Business

FY3/25
1Q

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

Financial
Results
Briefing

Results by Segment

Financial Resultsfor FY3/2025 1Q

7Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

2©2024 GEECHS Inc.

IT Freelance Matching Business (Japan)(Sales, Segment Income and Advertising Expense Ratio)■■■

1Q sales and progressed in line with the company plan, reaching a record high of 3.69 billion yen.
While we controlled the advertising expense ratio to 1.3%, the increase in expenses due to planned hiring of new
graduates and mid-career employees resulted in the segment profit margin of 8.0%.
Take rate is 17.6%, maintaining the same level to the previous quarter.

(million yen)

4,000

3,500

6.7%

(YoY)

3,694

24.0%

3,014

( + 6.7% )295Advertising
Expense
Ratio

17.6%

18.8%

16.0%
2,000

Segment profit margin

1,500

8.2%

8.0%

（FY3/24 1Q）（FY3/25 1Q）

12.0%

1,000
500

277

295

282

0

8.0%

4.0%
１Q

２Q

３Q

FY3/23

４Q

１Q

２Q

３Q

FY3/24

４Q

１Q

FY3/25* Take rate is calculated by deducting the compensation paid to IT freelancers from the gross sales profit, and then dividing it by the total transaction volume.
8

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

（YoY）

million yen

1.3 %

20.0%

3,000
2,500

million yen（ + 4.5％ ）

3,694

+

3,460

Sales

Segment
IncomeSales
YoY■Sales■Segment income●Segment profit margin●Take rate

1Q

©2024 GEECHS Inc.

IT Freelance Matching Business (Japan)(Freelancers Under Contract, Unit Price of Orders)■■■With an increase in the enterprise system related projects, the number of completed projects by the end of March
increased, resulting in 4,626 man-months worked in 1Q.
The average unit price of orders increased 3.2% YoY to 824 thousand yen.
The demand for IT talent remains strong, with the project ratio at 7.50 times (7.88 times in the same period last year).

(Freelancers/month) ■ Freelancers under contract(Thousand yen)

4,800

Freelancers
Under
Contract■ Unit price of orders

4,626人月

221

4,600

800

freelancers/month

(YoY)

4,626

824
Unit Price ofOrders799

824

4,405人月

YoY

750

3.2%

+
4,200

700

4,000

650

3,800

600
1Q

2Q

3Q

4Q

FY3/249

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

1Q

FY3/25thousandyen( + 3.2% )

+5.0%
4,400

freelancers/month( + 5.0% )

850

YoY +

1Q

1Q

2Q

3Q

FY3/24

4Q

1Q

FY3/25©2024 GEECHS Inc.

IT Freelance Matching Business (Japan)(New Business Partners, New Registrants)■■

In 1Q, the number of new business partners increased by 37 companies, bringing the total number of business
partners to 1,659.
The number of new registrations for IT freelancers was 419, showing steady growth while keeping advertisingexpenses under control.

（Companies）■ New business partners

1,700

1Q
Number ofBusiness
Partners

37（Persons） ■ New IT freelance registrants

450■ Existing business partners

1,659

419人

Number of New
Registrants

419

400

1,600

366人
1,500

1,497

350

1,400

300

1,300

250

200

1,200
1Q

2Q

3Q

4Q

FY3/2410

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

1Q

FY3/25

1Q

2Q

3Q

FY3/24

4Q

1Q

FY3/25©2024 GEECHS Inc.

IT Freelance Matching Business (Overseas)(Sales, EBITDA and Segment Income)■■■Sales reached 2.04 billion yen, 11.3% YoY increase with the plan to focus on building up sales after the second half ofthe year.
Due to switchover the client, the gross profit for MSP decreased, resulting in a segment loss of 36 million yen; however,this is progressing in line with the company's plan.
Under the new CEO appointed in April 2024, proceeding to strengthen the recruitment of career consultants.

(Million yen)

■ MSP Sales■ Sales of Temporary Staffing and Placement Service■ Segment income

Sales*

11.3%

1,840

(YoY)

2,048 百万円
( + 11.3% )

2,048

YoY

1,950

1Q

Segment
Income+-36 百万円
(-)

1,450

950

450

-50

1Q

-21

2Q

3Q

FY3/24

4Q

1Q

-36

FY3/25* The consolidation accounting period for Launch is from January to March. Performance is converted into JPY at the average rate of JPY 97.65 to AUD 1.
The initial exchange rate the company assumed is JPY 99 to AUD 1.
11

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

Seed Tech Business (Sales, Segment Income)■■■Sales was 72 million yen in 1Q, 37.5% YoY increase.
In addition to strong offshore development, demand for study abroad programs for corporate clients is also
progressing steadily in preparation for the summer demand season.
Although the segment profit was loss of 13 million yen in 1Q, we plan this segment to become profitable
2Q onwards.

(Million yen)

Sales

YoY

90

37.5%

■ Sales■ Segment income

1Q

(YoY)

72

( + 37.5% )72+

Segment
Income

70

52

-13

25

10
-10

1Q

2Q

3Q

4Q

1Q

2Q

-9

3Q

4Q

1Q

-13

-30

-36

FY3/23

FY3/24

FY3/25-50

12million yen
(-)

50

30

million yen

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

Financial
Results
Briefing

Medium-Term
Growth Strategy

3
13

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

GEECHS Group's Future Growth Strategy
We have been operating businesses in IT freelance sharing agent, offshore IT
human resources utilization, and IT human resources development sinceAmount of Domestic IT Investment(Total across industries)( billion yen )25,000.0

establishment. As a result, we have acquired over 3,500 clients from IT and

20,984.9

20,197.2

20,000.0

23,513.1

22,653.6

21,803.3

internet service providers, and our IT freelance matching business (Japan) has

grown into a company with sales exceeding 14 billion yen.

15,000.0

Moving forward, as the domestic IT market continues to expand, we will
actively pursue a strategy of mergers and acquisitions (M&A) and expand our

10,000.0

business scope into areas such as DX/IT human resources and organization
5,000.0

consulting, IT consulting, PMO, and system development. This will enable us
to participate in upstream processes of corporate DX/IT promotion projects. In
the development phase, we aim to utilize IT freelancers and offshore IT humanresources that we have cultivated, with the goal of becoming a group thatprovides comprehensive IT solution services.

DX/IT Human Resources andOrganization Consulting

14

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

0.0
2025 Projection

2026 Projection

Manufacturing2022 Estimate

Finance2023 Projection

Retail/Wholesale2024 Projection

Education/Gov/Local gov

Logistics/Transportation

Construction

Real Estate

Service Industry

Other

Domains of Expansion
IT Consulting,
PMO

System Development©2024 GEECHS Inc.

New Domain of Expansion
3rd Domain

From IT Human
Resources Supply to
Solution Providers

Possess IT consulting, PMO, and development
capabilities within the group to provide
comprehensive support.

Expansion

Through M&A execution, we aim to strengthen consulting capabilities and expand
into DX/IT human resources, organizational consulting, and IT systemdevelopment. We will hire delivery engineers for each role, utilize registered IT
freelancers, and offshore IT talent to expand our business scope from upstream
processes to implementation.

2nd Domain

IT Engineer Development
Offshore IT Lab

IT human resources development by “Sodatech”.
Offshore Lab operation support.
With expertise in IT human resources development, we have a wealth oftraining experience with for both companies and individuals. Additionally, we
have contributed to the formation of development lab teams based in
Philippines. We have expanded our business to utilize “Sodatech” for inhouse human resources development and even established a nearshore lab.

1st Domain

IT Freelance
Sharing Agent

15

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

Supporting Japan’s internet industry
through freelance utilization
We possess a database of over 20,000 registered IT freelancers withdiverse skills and experiences, as well as partnership with over 3,500 clientcompanies. Since the late stages of Web1.0, we have been a leading
player in the market and continue to lead the industry up to the present day.

©2024 GEECHS Inc.

Group Image Through Strategic M&A
Aiming to achieve a one-stop solution provision as a company thatsolve the shortage of IT human resources.

DX/IT Human Resources&
Organization Consulting

IT FreelanceTechnical Resource Sharing ( JPN )Offshore IT
Human Resource
IT HR Developmenet & Lab operation (PHL)

IT Staffing & Recruitment
IT talent-focused services (AUS)

16

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

Supporting from HR development toorganizational building.

GEECHSGroup

IT Consulting
Solving business challenges
by power of IT.

System Development
A group with cutting-edge
technological capabilities©2024 GEECHS Inc.

Basic M&A Policy
Target scopes and companies for M&A in alignment with the mid -term growth strategy.

M&A Target Scope

Potential Company

Criteria◼ Companies with proven track record

DX/IT Human Resources,
Organizational Consulting

and expertise in strategic planningand execution◼ Sales 500 million yen and above◼ Expected group synergies◼ Companies with an excellent

IT Consulting

customer base
◼ Sales 500 million yen and above◼ Reasonable acquisition price(No loss of goodwill)◼ Expected to contribute to sales andprofit at an early stage◼ Companies possessing technologicalcapabilities

System Development◼ Companies with businesssuccession needs◼ Sales 500 million yen and above

17

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

Initiatives to Enter New Domains
Considering multiple ways to expand while strengthening promotion of M&A

Optimize methods of entering new domain◼ Consider M&A potential companies at appropriate valuations.
◼ Consider new business creation through hiring professional personnel at the same time, and work on it

in an optimal manner with a sense of speed.

Strengthen M&A
Sourcing

Establishment of
new business and/or
new company◼ Sourcing numbers for the◼ Consideration of ways tosecond half of the previous
year reached 97 cases,
despite limiting the target
scopes, improving bothaccuracy and speed.

18

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

expand through new
businesses or establishmentof new companies.

Recruitment ofProfessionals◼ Simultaneously begin

recruiting key professional
personnel in the areas of
expansion.

©2024 GEECHS Inc.

Financial
Results
Briefing

Appendix4
19

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

About GEECHS

Solving the Shortage of
IT Human Resources in JapanIT Resource Crisis Is Our Business

GEECHS supports the work styles of IT freelancers,
sharing their skills and experiences with companies that face a shortage of IT human resources.
GEECHS also continues to provide globally-oriented businesses by utilizing foreign IT freelancers overseas,develops IT freelancers from scratch regardless of whether they work for a corporation or for themselves,

creating IT human resources from within organizations through reskilling, and provides an environmentthat will increase the number of people who wish to build a career as an IT freelancer in Japan.
In such way, GEECHS contributes greatly to the future of Japanese society.
20

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

Group Corporate Profile
Group companies

Company name

GEECHS Inc. (TSE Standard Market: 7060)

President andCEO

Naruhito Sonehara

Established

August 23, 2007

IT Freelance Matching Business (Japan)

Seed Tech Business

IT Freelance Matching
Business (Overseas)
Head office

Shibuya Scramble Square, 2-24-12 Shibuya,
Shibuya-ku, Tokyo, JAPAN

Capital1,112 million yen (as of June 30, 2024)

Business
description

Sales volume

Other
Business
Seed TechBusiness

IT Freelance Matching Business (Japan)
IT Freelance Matching Business (Overseas)
Seed Tech Business

JPY 23,739 million (as of March 31, 2024)

1%

Offices

G2 Studios
Business

278 (as of June 30, 2023)

Tokyo Head Office, Osaka Branch,
Fukuoka Branch, Nagoya Satellite Office
Australia, Philippines

IT Freelance
Matching Business(Japam)Other
Business

1%

IT Freelance
Matching Business(Japam)

99%

59%
9%

Employees

1%

Segmentation

FY3/24

FY3/24

Sales

Operating Income

23,73990

million yen

million yen

IT Freelance
Matching Business(Overseas)

30%
21

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

GEECHS Social Impact Flow
Input
Financial Capital• Growth investment
backed by strong CAGR
in business performanceGroup Synergies Through Business Activities

Evolution of the IT freelance sharing businessthrough the integration of know-how and resources
between countries

OutputOutcomeCreating a new “normal”
way of working

Make the biggest impression
in the 21st century

Materiality 1

Sharing and streamliningof technology resources

Human Capital• Cross-border•◼ Trust and track record asmanagement skills
Female/foreign ratio

one of Japan's largest IT
freelance businessIntellectual Capital• Technology investment• Patents and licenses• Accumulation of skill andGlobal Strategy&
Synergies

expertiseNatural Capital• Offshoredevelopment office• In-house base system

Social and
Relationship Capital• IT freelancer• Relations with clientcompanies• External partners◼ IT freelancer◼ Over 15 years of trustdevelopment expertiseand track record◼ Offshore development
capability

and track record in the IT
freelance business◼ Expertise and skills as an
MSP*

Materiality 4

Materiality 5

Domestic market

Overseas market

Materiality
2
Creationofemploym
ent
Domestic market
opportunities
overseas

Growth and reskilling of DX/IT freelancers

Improving economies indeveloping countries andlocal areas by creating
jobs

Overseas market

Contributing to social
development throughgrowth and creation of IT
freelancers

Materiality 3

Developing an environment where
freelancers can work with peace of mind
Strengthening corporate governance

Bringing growth to the IT
industry in Japan andoverseas

Expanding industry andemployment opportunities
through cross-bordercollaboration

Formation and expansion of partnerships*Owning a proprietary Vendor Management System as a Managed Service Provider (MSP)
22

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

IT Freelance Matching Business, Japan
Technology Resource Sharing Platform

Growth companies in IT field
Project information website

Approx.

with constantly over 1,500 projects

3,630

Matchingclient companies
Back Office

LegalInternet companies■ Med Tech
■ Ad Tech■ Real Estate Tech
■ Fin Tech
■ EC
■ HR Tech■ Game■ Ed Tech■ Other, various SaaS
■ Health Tech

IT companies

Around1,400

new IT freelancers
registering
every year

Mentors

ROOT
ROOT
In-house

Customer
Referrals
Platform

23

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

■ In-house work systems

Advisors

In-housesystemsystemServices

Benefit programfor IT freelancers■ Various business systems

44 partnercompanies

and many more...

©2024 GEECHS Inc.

GEECHS Strengths

SupportCapabilities

Quick and relevant matching■ Speedier matching by taking the whole process online

Support team structure of
3 people per IT freelancer■ Generous support as a project mentor■ Generous support from career advisors■ Utilizing big data to take factors other than skills into account■ Improved engagement through Frinove services, etc.

■ Seamless matching connecting Tokyo, Osaka, Fukuoka and Nagoya■ Regular events that meet the needs of IT freelancers

Matching
Capabilities

Strengths
Ability
to attract
customers

All marketing done in-house■ Efficient/effective online marketing with high-speed PDCA
■ Lead nurturing using marketing automation■ Enhanced content marketing benefiting from registered IT freelancer feedback■ System for referrals from registered IT freelancers

24

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

Source of Growth

Financial Figures

Business KPIs

Key Success Factor

Platform Value

Matching Capabilities

Trust from IT freelancers andcustomers

Monthly orders

Sales

Monthly unit price of orders

Order period
Source of growth

Retention rate

Support capabilities / Engagement

Gross profit
marginAdded value for IT freelancers
Ratio of advertisingexpenses to sales

25

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

Ability / Efficiency in attracting
customers©2024 GEECHS Inc.

Measures to improve engagement of IT freelancers
Improve engagement by having effective touch points with IT freelancers over the long term.

Before Registration

Pre-Registration

Registration

Sales

Post-contract

MarketingEngineer Partners / Sales

Customer Service◼ Organize “Tech Valley” technology events◼ Individual Counseling◼ Onboarding support on each project◼ Providing analyzer tools (market value analyzer, career advancement◼ Career plan counseling◼ Dedicated mentor / career advisor◼ Case introduction◼ Various webinars (invoicing system, tax return,case studies, etc.)◼ Providing video content on SNS◼ Interview preparation◼ Holding various webinars (how to work as a freelancer, etc.)◼ Engineering Skill CV preparation◼ Hosting of registrant social events◼ Conducting consultation meetings to become IT freelancer◼ Providing “Frinove” benefits program◼ Providing “Frinove” benefits programetc.)for IT freelancers (e.g., free immunizations,discounts on physical examinations, etc.)

for IT freelancers◼ Agency services for administrative procedures◼ Agency services for compensation and contract

continuation.

ROOT
In-house system

26

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

Differences from Similar Businesses
Developing a platform specifically for mid- to high-spec,
professional IT freelancers

27

GEECHS

Crowdsourcing

IT Engineers Dispatch

Registrant

IT freelancers (main job)

Freelancers (side/main job), and others

Dispatched workers

Main clients

Growth companies in IT field

Medium-sized and large companies

Major system integration companies

Type of contract

Quasi contract

Service contract

Worker dispatch contract

Pay basis

Per hours worked/month

Per deliverables

Per hourContract term

From 1, 3 or 6 months and longer

Based on project

From one month

Main type of work (projects)

Internet service development

Wide variety of low-cost projects,
such as design production• Managing legacy systems• Developing work systems

Employment relationship

None

None

Employment relationship withtemping agency

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

Engagement
Strengthening ongoing partnerships to maximize businessby increasing engagement with IT freelancers

Offering 54 services which enable our IT
freelancers to work for extended periods without theundue stress of instability

28■

Seminars on how to file a tax returns■

Discounts on accounting software■

Support via various online learning services■

Discounts for medical checkups and health screenings■

Special offers on English study abroad programs■

Special benefits for marriage and other life events■

Discounts on mortgage administration fees■

Affiliated credit cards and other benefits■

Benefits to support learning of AI technology
etc.

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

Benefits programfor IT freelancers©2024 GEECHS Inc.

IT Freelance Matching Business, Overseas (Launch Group)

Main Clients

MSP Contract
IT
Freelance(OtherCompanies)

VMS
IT Freelance◼ Human Resources

Information Management◼ Recruitment process
management◼ Labor management◼ Recruitment agency
management

CONNECT

1. Australian IT freelance service pioneer
Established in 2006, Launch has earned trust and a track record as aventure company in the IT staffing service industry.
Launch has been doing business continuously with more than 50% of its
customers for more than five years.

2. Extensive IT freelancer database
Launch has its own IT freelancer database of over 350,000 people andover 7,500 freelancers/month are under contract.

Project

Dispatch contract

IT Freelance
350,000 data points

3. MSP and VMS
The Managed Services Provider (MSP) market is expanding worldwide.
Launch’s MSP business is expected to grow steadily by integrating
customers’ entire human resource procurement process from marketing
to contracting to build a solid customer base. It also has developed aproprietary Vendor Management System (VMS) which solves all sorts of
the human resource management issues in casual employment.

*VMS: Vendor Management System is a human resource management solution that integrates the customers’ entire human resource procurement process from marketing to contracting.

29

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

Seed Tech

Development business - Offshore development business
Education business - Sodatech for developing global IT freelancers, IT study abroad
Funds
Formation of offshore lab team
A business collaboration lab
nurturing IT development teams
from seed

1. Providing “Sodatech”, a DX/IT human resource
development service for companies
Providing a SaaS-type DX/IT human resource development platform for corporations andindividuals.
An expansive curriculum containing more than 400 tutorial videos with a total learning
time of more than 400 hours to aid the reskilling of non-engineers

2. A global standard business collaboration lab for offshoredevelopment

Ideas

Providing comprehensive support on the island of Cebu in the Philippines which secures,trains, and manages IT freelancers in order to lead to success in generating new
business, digital transformation, and product development. It is ideal for forming a longterm successful development team.

An education business nurturing
IT freelancers from seed
SkillsThe lab is also involved in the development of one of the world’s largest e-commerce
platforms, Shopify.

Study abroad(Cebu)For Corporate
IT reskilling support

3. Programming school
A residential style programming and English school overseas.
Students can learn practical and advanced skills, since the school is run by a company
with a proven track record in the offshore development business.

PeopleThe programming school supports those wanting a career change or looking for a side
job, giving them the tools they need to become engineers anywhere around the world.

For individuals
Creation of globally
active IT freelancers

OnlineTaking the world forward with the power of technology
Nurturing IT development teams and IT freelancers from seed by focusing on development and education.

30

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

Performance Highlights
Fiscal Year-End

FY3/23

FY3/24

FY3/25 1Q

FY3/25 Forecast

Sales(Thousand yen)

14,340,774

15,997,838

23,739,835

5,825,129

26,300,000

EBITDA(Thousand yen)

1,226,900

651,393362,120

107,464

670,000

Operating income(Thousand yen)

1,133,696

589,41090,85980,627550,000

Ordinary income(Thousand yen)

1,135,706

567,920

82,48384,205545,000

Profit attributable to owners of parent(Thousand yen)

705,194244,215-1,473,379

58,866

336,000

Comprehensive income(Thousand yen)

703,843

239,743-1,516,051

69,539-

Capital(Thousand yen)

1,101,531

1,109,972

1,112,183

1,112,183-

Net assets(Thousand yen)

4,470,860

4,687,486

3,070,641

3,040,018-

Total assets(Thousand yen)

5,874,294

8,999,379

7,174,136

6,988,529-

Net asset per share(Yen)

422.26441.05

272.1

-

-

Net income per share

(Yen)

67.18

23.2

-142.8

5.70

32.54

Capital adequacy ratio

(%)

75.7

47.7

39.2

39.8

-

Return on equity

(%)

17.0

5.6

-41.5

-

-

Cash flow from operating activities(Thousand yen)369,207

688,038-3,827--

Cash flow from investing activities(Thousand yen)

-68,653-1,560,893

317,149--

Cash flow from financing activities(Thousand yen)

-91,339

1,274,450-330,211--

Cash and cash equivalents at end of
period(Thousand yen)

3,357,198

3,755,033

3,749,726--(Persons)

384

444

268

278

-

Employees
31

FY3/22Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.

Supplemental Data (IT Freelance Matching Business, Japan)
FY3/24

Fiscal Year-End
1Q

2Q

FY3/25

3Q

4Q

Full-year

1Q

Sales

(Thousand yen)

3,447,652

3,447,026

3,519,688

3,662,106

14,089,473

3,694,229

Advertising expense*(Thousand yen)

106,986

108,202

63,91750,774

329,879

46,684

(%)

3.1%

3.1%

1.8%

1.4%

2.3%

1.3%

(Thousand yen)

282,780

263,527

267,060

330,370

1,143,739

295,536

Operating income ratio

(%)

8.2%

7.6%

7.6%

9.0%

8.1%

8.0%

Take rate

(%)

18.8%

19.0%

17.6%

17.6%

18.0%

17.6%

(Freelancers/month)

4,405

4,382

4,459

4,631

17,877

4,626(Thousand yen)

799

803

808

806

804

824

(Companies)

53

42

44

39

178

37

(Persons)

366

382

330

371

1,449

419

Advertising expense ratio
Operating income

Freelancers under contract
Unit price of orders
New business partners

Newly registered IT
freelancers*Total amount of advertising expenses for companies and for attracting freelance engineers

32

Financial Results Briefing 2023年3月期 通期決算 説明資料

©2024 GEECHS Inc.

Disclaimer

geechs.com

The financial information contained herein is unaudited.
The information contained in this presentation is based on anumber of assumptions.
These statements are not intended to assure or guarantee theachievement of future numerical targets or measures.
Please note that actual results may differ due to various factors.
We are not under any obligation to update or revise the forwardlooking statements in this report even if new information or events
come to light in the future.

33

Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 31, 2025

©2024 GEECHS Inc.