Australia job board Seek (ASX: SEK) provided a trading and guidance update today. Based on year to date trading performance, results are tracking to the top end of Seek’s FY22 guidance for revenue, EBITDA and net profit after tax for continuing operations.

In its trading update, the group said it saw a strong year to date ad volumes in Australia, Hong Kong, Singapore and Malaysia. Furthermore, it added that its planned investments are progressing well.

FY22 Guidance (excluding significant items) for Seek (excluding the Seek Growth Fund) is as follows:

• EBITDA to be at the upper end of the AUD 425 million to AUD 450 million (USD 310.0 million to 328.2 million) range
• Based on assumed revenue at the upper end of the AUD 950 million to AUD 1 billion (USD 693.0 million to 729.5 million) range
• Net profit after tax to be at the upper end of the AUD 190 million to AUD 200 million (USD 138.6 million to 145.9 million) range

The group’s guidance assumes the usual seasonal volume decline in December-January. If that does not occur, and/or there is a sustained acceleration in early 2022 then results will track ahead of the top end of its current revenue guidance; and the group would likely accelerate some investment, though EBITDA and net profit after tax would also exceed current guidance.

However, Seek cautioned that the risk of economic volatility remains.

For Seek’s growth fund, the company’s share of net profit after tax is expected to be in the range of AUD 5 million to AUD 10 million (USD 3.6 million to 7.3 million) profit for H1 2022. The guidance assumes Seek will control the Fund until at least 31 December 2021. On loss of control Seek will account for the Fund as an “associate” and will recognise “fair value” movements in its income statement to reflect revaluations of the Fund’s investments.

The group also published operational highlights and said it rolled out new flexible contracts and a pricing model to the majority of customers in Australia and New Zealand.

The company also launched unified search and recommendations platforms across Asia and said it adopted bolder approach to complete ANZ systems unification within 2-3 years. Furthermore, the group said it completed its JobKorea minority investment and Sourcr minority investment and continued its focus on building sustainable businesses in Latin America.

Looking ahead, the company plans to double revenue over the next five years. It added that ‘investment and innovation’ are required to realise the company’s growth potential in a competitive environment. “Investment will continue through periods of cyclical revenue weakness”, the group stated.

For its fiscal full year ended 30 June 2021, the group reported revenue rose 5% in constant currency.