Recruit Holdings Q3 revenue improves 3.5%, HR technology up
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Recruit Holdings (6098:TYO), the fifth-largest global staffing firm, reported an increase in revenue of 3.5% for its fiscal third quarter ended 31 December 2024. Revenue totalled JPY 896.9 billion (USD 5.83 billion) for the third quarter.
(JPY billions) | Q3 2024 | Q3 2023 | Change | Q3 2024 (USD billion) |
Revenue | 896.9 | 866.7 | 3.5% | 5.8 |
Operating Income | 139.6 | 108.9 | 28.2% | 0.9 |
Profit attributable to the owners of the parent | 119.0 | 106.3 | 11.9% | 0.7 |
Adjusted EBITDA | 179.6 | 158.2 | 13.5% | 1.1 |
Recruit said in the third quarter, job markets in the US and, to a lesser extent, Japan largely stabilised, characterised by steady labour demand, healthy wage growth and signs of growing confidence among employers and job seekers. At the same time, markets in several large European countries ended 2024 in a more fragile state, marked by fading labour demand, stagnant growth and political uncertainty, it added.
The company’s HR technology business consists of three operations: the US, Japan and rest of world. Matching and solutions consists of two operations: HR Solutions and marketing solutions. Staffing comprises operations in Japan and Europe, US and Australia.
Revenue by Segment
(JPY millions) | Q3 2024 | Q3 2023 | Change | Q3 2024 (USD billions) |
HR Technology | 275.4 | 243.0 | 13.3% | 1.8 |
Matching and Solutions | 198.7 | 199.5 | (0.4%) | 1.3 |
Staffing | 438.4 | 433.6 | 1.1% | 2.8 |
Within HR technology, revenue in the US operation rose by 8.0%, Japan was up 66.9% while the rest of world increased by 11.8%.
In the matching and solutions segment, revenue in HR Solutions decreased by 13.6%. Marketing solutions revenue climbed by 7.4%.
Within the staffing business, Japan rose by 7.8%. In Europe, US and Australia, revenue fell by 4.2%.
Recruit also reported revenue of JPY 2.57 trillion (USD 16.73 billion) for the nine-month period ended 31 December 2024, up 4.8% year on year.
Looking ahead, the company forecast revenue of JPY 3.56 trillion (USD 23.17 billion) for the full year ended 31 March 2025.
In its earnings results call, the company stated, “Our outlook for Q4 is based on the assumption that the trend of job postings in the US labour market in Q4 remains unchanged. While the outlook for Japan and the rest of the world has been revised lower, compared to the November outlook, most of this revision is due to our assumption that [the] US dollar would be stronger than expected in our Q4 assumptions.”
“We will provide our market outlook for the next fiscal year in May when we announce full-year financial results and guidance,” the company added.
Share Price
Recruit Holdings shares closed on 12 February 2025 at JPY 10,660.00 (USD 69.40), down 0.84% on the day and 10.38% below its 52-week high of JPY 11,895.00 (USD 77.44), set on 12 December 2024. The company has a market cap of JPY 17.74 trillion (USD 115.5 billion).