Recruit Holdings, one of the largest staffing firms in the world, reported revenue fell 0.9% in constant currency to JPY 901.5 billion (USD 5.60 billion) in its fiscal first quarter ended June 30. Revenue in the Tokyo-based firm’s HR technology division — which includes Indeed and Glassdoor — fell 2.5% year over year on a US dollar basis to $1.83 billion.

“While the labor market in the US continued to normalize, business sentiment in Japan continued to gradually improve,” Junichi Arai, senior VP of corporate strategy and investor relations, said in a conference call with analysts.

However, US job postings on Indeed — both free and paid — continued to decline year over year.

HR technology revenue in the US fell 5.0% year over year in the first quarter to USD 1.25 billion. HR tech revenue rose in Japan though it fell in the rest of the world when measured on a US dollar basis.

HR technology revenue in Japan rose 29.3% on a US dollar basis to USD155 million. In the rest of the world, HR technology revenue fell 3.5% on a US dollar basis to USD 422 million.

Arai also noted demand for temporary staffing slowed outside of Japan, though the number of temporary staff on assignment in Japan grew.

Temporary staffing revenue in Europe, the US and Australia fell 8.1% in the first quarter on a constant currency basis.

Outside the US and Japan, this segment’s businesses include Chandler Macleod Group in Australia and RGF Staffing in Europe. In the US, Recruit’s staffing operations include Staffmark Group and The CSI Cos.

Recruit also reports results for a third segment after HR tech and staffing. That segment, matching and solutions, saw revenue rise 1.5% year over year in the first quarter. The segment includes HR consulting and recruitment in Japan, permanent recruitment in Asia and non-staffing marketing platforms such as Hot Pepper Beauty, Hot Pepper Gourmet and Suumo as well as an online real estate website. Rikunabi, a jobs website for graduates, is included in this segment as well as staffing firm Recruit Agent.

Recruit Holdings - Q1 2024

Revenue by Segment

Staffing Revenue by Geography

*As measured in US dollars.

Guidance

Recruit forecast revenue for its full fiscal year 2024 will range from a decline of 3.4% to an increase of 2.4%. The forecast is unchanged from the 15 May estimate.

The company expects staffing revenue to be up between 0.1% and 0.9% for the fiscal year and HR technology revenue is expected to range from a decline of 7% to an increase of 5%.

Share Price

Shares closed down 0.08% to JPY 7,773 (USD 52.81) today in Japan. They were 18.61% below their 52-week high.