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View All NewsRecruit Holdings Q2 revenue down 2.7% as HR Technology business sees decline
Recruit Holdings (6098: JP), the Japanese staffing giant, reported revenue today for the second quarter ended 30 September 2023 of JPY 855.1 billion (USD 5.66 billion). This was a small decrease of 2.7% when compared to the previous year.
Revenue in the HR Technology business decreased while revenue in Matching & Solutions and Staffing increased.
| (JPY billions) | Q2 2023 | Q2 2022 | Change | Q2 2023 (USD millions) |
| Revenue | 855.1 | 878.4 | -2.7% | 5,667 |
| Adjusted EBITDA | 162.2 | 145.3 | 11.7% | 1,075 |
| Adjusted EBITDA Margin | 19.0% | 16.5% | - | - |
| Operating Income | 116.1 | 108.5 | 7.0% | 769 |
| Profit attributable to owners of the parent | 115.0 | 85.2 | 34.9% | 762 |
Revenue by segment
| (JPY billions) | Q2 2023 | Q2 2022 | Change | Q2 2023 (USD millions) |
| HR Technology | 257.2 | 300.5 | -14.4% | 1,705 |
| Matching & Solutions | 200.1 | 185.2 | 8.1% | 1,326 |
| Staffing | 406.3 | 400.2 | 1.5% | 2,693 |
In HR Technology, the group said the supply and demand mismatch between job seekers and employers continued to ease, with global labour markets normalising, particularly in the US.
Total job postings on Indeed, composed of free and sponsored jobs postings, declined year over year in many countries where HR Technology operates, including the US, while jobseeker activity as measured by traffic to, and applies on, Indeed and Glassdoor increased year over year.
Within Matching & Solutions, revenue in Marketing Solutions increased 10.3% due to growth in housing & real estate, beauty, travel, bridal, and dining. Housing & real estate and beauty continued to account for more than 50% of revenue in Marketing Solutions. Revenue in HR Solutions increased 5.5%. Hiring demand continued to increase across many of the industries served, while some business clients began to act cautiously on hiring.
Within Staffing, revenue for Q2 FY2023 increased 1.5% with an increase in revenue for Japan despite a decrease in revenue for Europe, US, and Australia. Revenue in Japan increased 10.9% due to an increase in the number of temporary staff on assignment as demand for staffing services continued to grow. Revenue in Europe, US, and Australia decreased 5.1% as demand for staffing services slowed continuously against the backdrop of an uncertain economic outlook.
Looking ahead, the company forecasted revenue for the nine-month period (Q1-Q3) between JPY 2.54 trillion – 2.56 trillion (USD 16.8 billion to 16.9 billion). EBITDA is forecasted in the range of JPY 458.1 billion – JPY 473.1 billion (USD 3.03 billion to 3.13 billion).
Recruit Holdings shares closed at JPY 4,980.00 (USD 33.02), up 2.77% on the day and 7.73% below its 52-week high of JPY 5,397.00 (USD 35.78), set on 1 September 2023. The company has a market cap of JPY 8.22 trillion (USD 54.49 billion).