Tokyo, August 10, 2023 ― Recruit Holdings Co., Ltd. , one of the world’s largest staffing firms and owner of job board Indeed, announced its consolidated financial results for the three months ended June 30, 2023 (April 1, 2023 to June 30, 2023)

Consolidated Results of Operations

Consolidated revenue for Q1 FY2023 increased 0.9% as revenue in Matching & Solutions and Staffing increased while revenue in HR Technology decreased. Excluding the positive impact of exchange rate fluctuations of 25.6 billion yen, revenue decreased 2.1%.

Consolidated operating income for Q1 FY2023 was 121.6 billion yen, an increase of 1.9% year over year. Consolidated profit attributable to owners of the parent for Q1 FY2023 was 98.0 billion, an increase of 16.1% year over year.

Consolidated adjusted EBITDA margin for Q1 FY2023 was 19.5%, consolidated adjusted EBITDA increased 8.9%, and adjusted EPS was 63.63 yen, an increase of 17.7%.

Results of Operations by Segment

HR Technology

Revenue for Q1 FY2023 decreased 9.1%. On a US dollar basis, revenue decreased 14.2%. The supply and demand mismatch between job seekers and employers continued to ease, with global labor markets normalizing, particularly in the US. Total job postings on Indeed, composed of free and sponsored jobs postings, declined year over year in many countries where HR Technology operates, including the US, while job seeker activity as measured by traffic to, and applies on, Indeed and Glassdoor increased year over year.

On a US dollar basis, revenue in the US decreased 18.6% driven by a decrease in demand for sponsored jobs year over year. Revenue outside of the US decreased 1.8%.

Adjusted EBITDA margin for Q1 FY2023 increased 4.4 percentage points to 38.1%, primarily due to reductions in global advertising expenses while continuing investments in product and technology initiatives for future growth.

Matching & Solutions

Revenue in Matching & Solutions for Q1 FY2023 increased 10.8%.

Revenue in Marketing Solutions increased 11.2% as revenue in Housing & Real Estate, Beauty, Travel, Bridal, and Dining all increased. Housing & Real Estate and Beauty continued to account for more than 50% of revenue in Marketing Solutions.

Revenue in HR Solutions increased 11.3%. Hiring demand continued to increase across many of the industries served, while some business clients began to act cautiously on hiring.

Adjusted EBITDA margin in Matching & Solutions for Q1 FY2023 increased 3.9 percentage points to 21.3% mainly due to cost control measures related to advertising expenses while continuing to invest in marketing activities and other areas for future growth.

Matching & Solutions’ strategy is to “Help Businesses Work Smarter”, including by improving clients’ productivity and business results through their use of its ecosystem of matching platforms and SaaS solutions centered on Air Business Tools.

Staffing

Revenue for Q1 FY2023 increased 4.1% with an increase in revenue for Japan offset by a decrease in revenue for Europe, US, and Australia . Excluding the positive impact of exchange rate fluctuations of 11 billion yen, revenue increased 1.2%.

Revenue in Japan increased 12.7% due to an increase in the number of temporary staff on assignment as demand for staffing services grew.

Revenue in Europe, US, and Australia decreased 2.4% as demand for staffing services slowed against the backdrop of an uncertain economic outlook. Excluding the positive impact of exchange rate fluctuations of 11 billion yen, revenue decreased 7.4%.

Adjusted EBITDA margin for Q1 FY2023 was 6.7%, a decrease of 0.4 percentage points and adjusted EBITDA decreased 2.0%.

About Recruit Holdings

Recruit Group is a global technology company transforming the world of work. Founded in 1960 in Tokyo, Japan, Recruit Group’s mission is to create opportunities for life. It is focused on continued innovation that better matches individuals and businesses around the world in a faster, simpler, and more human way. It does so by simplifying hiring, helping businesses work smarter, and delivering sustainable growth while creating equitable social impact that enables everyone to prosper together.

SOURCE Recruit Holdings