BUSINESS MODEL

Our Group operates an ad platform business and a marketing solution business.

① Ad platform business

The ad platform business maximizes ad revenue and efficacy for online media and advertisers by providing platforms that use ad technology to instantaneously select and display user-specific ads on websites and smartphone apps. Specifically, services we provide in GenieeSSP for online media and GenieeDSP for advertisers and ad agencies.

Ad platform business

When an ad is distributed via GenieeSSP or GenieeDSP, ad listing fees (i.e. sales for our Group) are paid to our Group based on the number of times an ad is displayed. When an ad is distributed through an ad agency or a competitor DSP, ad network, or OEM client, ad listing fees are paid by the advertiser via that third party.
Conversely, our Group pays ad listing fees (i.e. our Group costs) to online media based on the number of times an ad is distributed.

② Marketing Solution business

Solution offers platforms for increasing the efficiency of work typically performed by a company’s marketing or sales staff. This includes the automation of the complex processes or large-scale tasks related to target client list creation, individual approaches to potential customers to up product/service purchase/contract conclusion, and the repeat purchase by customers. Specifically, products including the marketing automation platform MAJIN and the cloud-based customer relations management (CRM) and sales force administration (SFA) system Chikyu.

In general, MAJIN and Chikyu sales are based on system or service usage fees (i.e. sales for our Group) paid on a monthly basis.

Marketing Solution business

Business-specific net sales composition

Our Group’s net sales are driven mainly by GenieeSSP, which was launched in 2011. As of FY2019, net sales from the ad platform business comprised approximately 80% of all net sales.
Moving forward, we will expand sales for GenieeDSP (launched in 2014), MAJIN (launched in 2016), and Chikyu(Succeed in 2018) and expect that the balance of this composition will gradually change over time.

FY2019 Sales composition by business

Composition of sales by business as of the end of March 2018

About seasonality

Our Group provides services for businesses. Many Japanese companies tend to use a relatively larger percentage of advertising budgets towards the end of the fiscal year. As such, it is typical for our net sales to increase during the fourth quarter.

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