Recruit Holdings Co. Ltd., the fifth-largest global staffing firm, reported revenue rose 18.0% in its fiscal third quarter ended 31 December 2022. Revenue was up 6.5% excluding the exchange rate impact. The Tokyo-based firm reported revenue increased in all segments, HR Technology, Matching & Solutions and Staffing increased.

Adjusted EBITDA fell 2.6% over the year.

For the nine month period, revenue increased 23.2%, or 11.8% excluding the positive impact of exchange rate. Revenue stood at 2.6 trillion (USD 19.6 billion).

HR Technology consists of the operations of Indeed, Glassdoor and other related businesses. Media & Solutions consists of two business operations, namely, Marketing Solutions and HR Solutions. Staffing consists of two business operations, which are Japan, and Europe, the US and Australia.

Beginning in Q1 2022 the name of the Media & Solutions SBU has been changed to Matching & Solutions SBU.

Revenue by segment

In HR Technology, the group said that while the labour market remained tight globally, the supply and demand mismatch between job seekers and employers continued to ease. Total job postings on Indeed, composed of free and sponsored job postings, returned approximately to the levels of one year ago and job seeker activity as measured by traffic to, and applies on, Indeed and Glassdoor increased year over year.

Revenue in Matching & Solutions for Q3 2022 increased 13.9%. Revenue in Marketing Solutions increased 13.1% as revenue in Housing & Real Estate, Beauty, Travel, Bridal, and Dining all increased. Revenue in HR Solutions increased 17.5% as revenue in the job advertising service and the placement service both increased. Hiring demand recovered year over year in the part-time job advertising service, particularly in the retail and dining industries. Hiring demand for the placement service increased across many of the industries which utilize placement services while some business clients began to act cautiously on hiring.

In Staffing, revenue for Q3 2022 increased 16.2% with an increase in revenue for Japan as well as Europe, US, and Australia. Revenue in Japan increased 12.1% due to an increase in the number of temporary staff on assignment as continued demand for staffing services grew year over year. Revenue in Europe, US, and Australia increased 19.4%.

During Q3, the tight labour market continued to moderate and this environment of gradual labour market normalisation is expected to continue in Q4.

Consolidated revenue for FY2022 is expected to be approximately JPY 3.425 trillion (USD 25.82 billion).  

Recruit Holdings shares closed at JPY 4,379.00 (USD 33.01), down 0.41% on the day and 18.10% above the 52 week low of JPY 3,708.00 (USD 27.95) set on 17 June 2022. The company has a market cap of JPY 7.46 trillion (USD 56.24 billion).