Visional, Inc., FAQ for FY2022/7 3Q Financial Results
Consolidated Financial Results
Q1 What is the impact of COVID-19 to each segment? Is the current uncertain economic condition impacting the business?
Majority of net sales in the HR Tech Segment is generated by BizReach. BizReach has recovered fast from the slowdown in the recruiting market impacted by COVID-19, and have recorded net sales growth of 59.1% YoY for 3Q due to the continued strong rebound from COVID-19 as well as an increased momentum by employers to actively start hiring mid-careers. As of now, professional hiring is not impacted from the uncertain global macroeconomy, increasing raw material prices and fluctuations in the financial capital markets. We also do not observe any impact from COVID-19 and uncertain economic situations at present for other businesses in HR Tech nor businesses in the incubation segment.
Q2 What is the reason for upward revision in the FY2022/7 financial forecast?
Driven by the strong performance of BizReach, at the timing of 1Q financial results, we revised BizReach’s net sales forecast upwards to JPY 35.30Bn, consolidated net sales forecast was also revised upwards by the same amount to JPY 41.00Bn for the full year.
Currently, in the professional hiring market, a strong rebound trend from COVID-19 has continued and we see increased momentum by employers to actively start hiring mid-careers. Accordingly, high levels of hiring success continued on the BizReach platform. Based on the assumption that this trend continues in this fiscal year, we have further revised our BizReach full year forecast for net sales upwards to JPY 37.50Bn at this 3Q financial results timing.
Economic activities were on a recovery trend as vaccination and drugs against COVID-19 were widely available. On the other hand, the outlook for the global macroeconomy is currently uncertain and due to factors such as a surge of raw material prices and fluctuation in the financial capital markets, the outlook for economic activities that have shown signs of recovery have again become unclear. The forecast for this fiscal year is based on the assumption that further economic stagnation will not occur.
HRMOS is on track and the forecast is unchanged from previous disclosure.
The forecast of other businesses in the HR Tech Segment has also been revised upwards, although impact to the consolidated financials is limited.
In the Incubation Segment, business development continues for long-term growth. We continue to make investments within the amount of profits generated by BizReach. As they are early businesses, net sales fluctuation risk exists, although impact on consolidated financial performance is negligible and profitability will be maintained by controlling expenses. (Unchanged from previous disclosure)
As a result of these changes, consolidated net sales forecast is revised upwards to JPY 43.60Bn for the full year.
We have revised our consolidated operating profit forecast from our previous forecast of JPY 6.00Bn to JPY 8.00Bn. Part of the consolidated net sales increment will be reinvested back into the BizReach business for future growth through advertising and promotion investments, resulting in operating profit increment of JPY
2.00Bn. Our marketing investments are higher in 2H as in previous years, and driven by stronger-than- expected sales growth, profits will be further reinvested back into the BizReach business in 4Q in levels higher than originally planned.
Jun. 13, 2022 Release |
Dec. 9, 2021 Release |
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FY2022/7 Consolidated |
FY2022/7 Consolidated |
Difference |
|
(JPY MM) |
Financial Forecast |
Financial Forecast |
|
Consolidated Net Sales |
43,600 |
41,000 |
+2,600 |
HR Tech Segment |
41,430 |
38,870 |
+2,560 |
BizReach |
37,500 |
35,300 |
+2,200 |
HRMOS |
1,420 |
1,420 |
0 |
Incubation Segment |
2,010 |
2,010 |
0 |
Operating Profit |
8,000 |
6,000 |
+2,000 |
Ordinary Profit |
8,320 |
6,320 |
+2,000 |
Net Income attributable to Parent |
5,400 |
4,100 |
+1,300 |
Should our forecast change based on changes in the economic assumptions etc., we will disclose as soon as appropriate.
Q3 What is the status of stock options exercisable after the listing?
We grant stock options to directors and selected employees to increase their motivation and morale for improving business performance, and to hire talent for the Company group, leading to further enhancement in the corporate value of the overall Company group. These options can be exercised in phases until FY2029/7 and about half became exercisable on April 23, 2022. Although some options have already been exercised, there is no impact on the number of shares as of the end of 3Q.
Q4 What is Adjusted Operating Profit before Corporate Expense Allocation?
This is the operating profit or loss of the business before bearing the personnel expenses and ancillary outsourcing and other general and administrative expenses associated with business administration, information systems that cannot be charged directly to specific products and services. In principle, the costs directly tied to products and services are recorded.
Q5 What are Liabilities from application of Equity Method?
This is an account that arose when 60% of Stanby, Inc. was divested to Z Holdings Corporation. Stanby is currently our equity method affiliate.
BizReach
Q6 How long should we assume COVID-19 rebound growth to continue?
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