Recruit Holdings (6098: JP), the Japanese staffing giant, reported revenue on 11 November for the second quarter ended 30 September 2024 of JPY 897.1 billion (USD 5.66 billion), up 4.9% over the same period a year ago.

Revenue in the HR technology business which includes job aggregator, Indeed, saw an increase of 10.0% in Q2. Revenue in the matching and solutions segment rose by 2.7%, while staffing was up 2.8%.

The company has three operating segments by type of business: HR technology, matching & solutions and staffing, which are also the reportable segments.

HR technology consists of three operations: the US, Japan, and the rest of the world. Matching & solutions consists of two operations: HR solutions and marketing solutions. Staffing consists of two operations, Japan and Europe, US and Australia.

Revenue by segment

Globally, the supply and demand mismatch between job seekers and employers continued to ease, with labour markets normalising, particularly in the US, the company stated. However, total job postings on Indeed, composed of free and paid postings, declined year over year in many countries where HR technology operates.

Within matching & solutions, revenue in the placement service continued to grow steadily in a stable business environment. However, revenue in the job advertising service declined primarily due to the shift of revenue to HR technology as the integration with Indeed PLUS progressed.

Revenue in marketing solutions increased 8%. Revenue for beauty, travel, and dining combined with SaaS solutions, including air business tools, increased. Additionally, housing & real estate and others, which include other services in marketing solutions, each increased.

Within staffing, revenue in Japan increased by 7.2% due to an increase in the number of temporary staff on assignment as demand for staffing services continued to grow. Revenue in Europe, the US and Australia decreased 0.9% as demand for staffing services slowed continuously against the backdrop of an uncertain economic outlook. Excluding the positive impact of exchange rate fluctuations of JPY 9.6 billion, revenue decreased 5.2%.

On 9 September 2024, the company announced the policy to transfer HR solutions in the matching & solution SBU (strategic business unit) to the HR technology SBU and operate the businesses in a unified manner to accelerate progress in achieving “Simplify Hiring,” one of the company’s three strategic pillars. HR solutions in the matching & solutions SBU will be transferred to two newly established subsidiaries and operated as part of the HR technology SBU. The transfer is targeted for 1 April 2025.

The company also reported revenue for the six months ended 30 September 2024 of JPY 1.79 trillion (USD 11.64 billion), up 5.4%.

Looking ahead, the company forecasted revenue of JPY 3.46 to 3.54 trillion (USD 22.5 billion to 23.0 billion) for FY 2024.

Recruit Holdings shares closed at JPY 9,936.00 (USD 64.63), down 0.05% on the day and 0.94% below its 52-week high of JPY 10,030.00 (USD 65.24), set on 8 November 2024. The company has a market cap of JPY 16.40 trillion (USD 106.69 billion).