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View All NewsJapan – Recruit Holdings second quarter revenue growth driven by HR Technology
Japanese staffing giant Recruit Holdings (6098: JP) reported revenue today for the second quarter ended 30 September 2022. Revenue stood at JPY 878.4 billion (USD 6.29 billion), an increase of 25.3% when compared to the previous year.
Revenue growth was led by HR Technology (including Indeed and Glassdoor) while revenue in Matching & Solutions and Staffing also increased.
While revenue was strong, adjusted EBITDA declined by 1.2%.
| (JPY billions) | Q2 2022 | Q2 2021 | Change | Q2 2022 (USD millions) |
| Revenue | 878.4 | 701.1 | 25.3% | 6,296 |
| Adjusted EBITDA | 145.3 | 147.1 | -1.2% | 1,041 |
| Adjusted EBITDA Margin | 16.5% | 21.0% | - | - |
| Operating Income | 108.5 | 118.2 | -8.1% | 777 |
| Profit attributable to owners of the parent | 85.2 | 87.3 | -2.3% | 610 |
Consolidated adjusted EBITDA margin was 16.5% as adjusted EBITDA margin of each segment decreased due to strategic investments for future growth. Adjusted EBITDA decreased 1.2%.
Beginning in Q1 2022 the name of the Media & Solutions Strategic Business Unit (SBU) has been changed to Matching & Solutions.
Revenue by segment
| (JPY billions) | Q2 2022 | Q2 2021 | Change | Q2 2022 (USD millions) |
| HR Technology | 300.5 | 214.4 | 40.1% | 2,153 |
| Media & Solutions | 185.2 | 157.8 | 17.3% | 1,327 |
| Staffing | 400.2 | 335.5 | 19.3% | 2,868 |
Revenue for HR Technology for Q2 2022 increased 40.1% year over year. On a US dollar basis, revenue increased 11.6% as demand for talent globally remained strong year over year, leading to increased demand for Indeed and Glassdoor’s hiring products and services.
Revenue in Matching & Solutions increased 17.3% year over year. In Marketing Solutions, Q2 2022 revenue in Housing & Real Estate, Beauty, Travel, Bridal, and Dining all increased. In HR Solutions, revenue in the part-time job advertising business and the placement service both increased. Hiring demand recovered year-over-year in the part-time job advertising business, particularly in retail and dining which had been impacted by Covid-19 related restrictions in Q2 FY2021. Hiring demand for the placement service increased across many of the industries which utilise placement services.
Revenue for Q2 FY2022 increased 19.3% with an increase in revenue for Japan and Europe, US, and Australia.
Group revenue for the six-month period stood at JPY 1.365 trillion (USD 9.78 billion), up 26.0% over the previous year.
Looking ahead, the group is forecasting full year revenue of JPY 3.30 trillion (USD 23.65 billion).
Recruit Holdings shares closed at JPY 4,900.00 (USD 35.12), up 0.97% on the day and 32.15% above the 52 week low of JPY 3,708.00 (USD 26.57) set on 17 June 2022. The company has a market cap of JPY 8.23 trillion (USD 58.98 billion).