Recruit Holdings Co. Ltd, which ranks among the world’s largest staffing firms and owns jobs website Indeed, reported revenue rose 6.5% in constant currency in its fiscal third quarter ended Dec. 31 with growth across business lines. Total revenue was 880.1 billion Japanese yen (US$6.7 billion). Still, while the job market remains tight, the company noted the mismatch between supply and demand of job seekers eased.

The company’s HR Technology segment — which includes Indeed and Glassdoor — saw revenue rise 24.2% year over year in the third quarter to 203.0 billion yen. However, on a US dollar basis, revenue fell 0.1% to $1.98 billion.

“Job postings in the US are at a high level, 11 million in December; however, the significant hiring demand brought about by the pandemic is gradually normalizing from its peak in 2022 towards the pre-pandemic levels seen in 2019,” said Hisayuki “Deko” Idekoba, president, CEO and representative director of the board.

Outside the US, the situation is different, Idekoba said. Still, he noted total job openings on Indeed were down 3.5% year over year and, looking at just the US, sponsored job volumes were down 33% year over year. A potential recession in the US has reduced businesses’ willingness to spend to hire, he said.

A lion’s share of the HR Technology segment’s revenue comes from the US, where revenue fell 2.0% to $1.44 billion, though non-US revenue rose 5.3% to $548 million.

In Recruit’s Staffing business segment, revenue rose 19.4% in its Europe, US and Australian operations to 241.1 billion yen (US$1.8 billion). The increase was 3.8% excluding the impact of currency. In addition, the company’s Japanese staffing operations saw revenue rise 12.1% to 174.4 billion yen (US$1.3 billion). Recruit’s staffing brands include Staffmark in the US, RGF Staffing Europe and Chandler Macleod in Australia.

Revenue in the company’s Matching & Solutions business was up 13.9%.

Guidance

Recruit revised its guidance for full-year revenue growth upward to 19.3%.

The company also reported it expects HR Technology revenue to be up 8% year over year on a US dollar basis.

Staffing revenue in Europe, the US and Australia is expected to be up 17.5% year over year on a yen basis, while Japanese staffing revenue is expected to increase 13% year over year.

In Recruit’s Matching and Solutions revenue, marketing solutions revenue is expected to increase 13% year over year and HR solutions revenue is expected to rise 18.5%.

Share price and market cap

Shares in Recruit closed down 0.41% to 4,379 yen (US$33.31) today in Tokyo; they were 18.1% above their 52-week low, according to FT.com. The company had a market cap of 7.46 trillion yen (US$56.75 billion).