May 15, 2023/--Recruit Holdings just released their 4th quarter and FY 2022 financial results.

1. Revenue for Q4 FY2022 increased 6.2%. On a US dollar basis, revenue decreased 6.7%.


2. The supply and demand mismatch between job seekers and employers continued to ease, with global labor markets normalizing, particularly in the US.


3. Total job postings on Indeed declined year over year in many countries, while job seeker activity increased year over year.


4. Revenue in the US decreased 10.1%, while revenue outside of the US increased 2.4%.


5. Adjusted EBITDA margin for Q4 FY2022 decreased 2.3 percentage points to 30.5%.


6. For FY2022, revenue increased 29.6% or 7.7% on a US dollar basis, adjusted EBITDA margin was 30.7%, and adjusted EBITDA increased 5.9% year over year.

Here are some key takeaways from the earnings report.

1. Revenue growth slowed in Q4 FY2022, both in local currency and US dollar terms. This was due to a number of factors, including the easing of the supply and demand mismatch between job seekers and employers, as well as a decline in total job postings on Indeed.


2. Adjusted EBITDA margin decreased in Q4 FY2022, primarily due to higher personnel costs. The company is taking steps to control costs, but it is unclear whether these measures will be enough to offset the headwinds facing the business. They are saving $500 million with their recent workforce reduction.


3. Overall, the earnings report was mixed. While revenue growth slowed, adjusted EBITDA margin was maintained. The company is facing a number of challenges, but it is taking steps to address them.

One other interesting note: The Company considers the measured average number of hires per minute to be a Key Performance Indicator (KPI) that demonstrates their success in simplifying the hiring process. They believe this KPI indicates a successful engagement between job seekers and employers, which represents improvements in matching and automation, as well as improvements in employer engagement that help them measure more hires. In calendar 2022, based on internal measurement, an average of 23 job seekers were hired on Indeed and Glassdoor every minute.

Recruit Holdings will host an earnings call to discuss the results at 4:30 p.m. JST (3:30 a.m. EST) today. The call will be conducted in Japanese and simultaneous interpretation to English will be provided. A live webcast of the call will be available here. The video and transcript of the call will be available on our IR website shortly after the call.

Presenters on the call are as follows.

• Hisayuki Idekoba, Representative Director, President and CEO


• Yoshihiro Kitamura, Executive Vice President and Head of Matching and Solutions Business


• Junichi Arai, Senior Vice President - Corporate Strategy, Investor Relations

About Recruit Group

Recruit Holdings is a global leader in HR technology aiming to simplify hiring. With key subsidiaries including Indeed, Glassdoor and its worldwide staffing business, Recruit Group aims to simplify hiring through a two-sided talent marketplace that drives meaningful connections between job seekers and employers. We are committed to driving societal change by leveraging our strength in the employment space so that everyone may prosper together.

In Japan, we operate a matching & solutions business focused on helping businesses work smarter through online advertising services, job platforms and cloud-based SaaS solutions.