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Recruit revenue up 2.7% in fiscal Q4, notes US job openings on indeed down by 13%

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Recruit Holdings reports mixed financial results

Recruit Holdings Co. Ltd. has announced its financial results for the fiscal fourth quarter ending March 31, reporting a 2.7% increase in revenue year over year in constant currency, amounting to ¥827.7 billion (US$6.24 billion). However, the Tokyo-based global staffing firm experienced a decline in its HR technology segment, including job websites Indeed and Glassdoor, with a 6.7% decrease in revenue when measured in US dollars.

The decline in the HR technology segment continued into April, as revenue fell by 12% year over year on a US dollar basis during the month.

Regarding job openings in the United States, Recruit reported a 13% decline year over year in the fourth quarter on Indeed, while paid job ads were down approximately 30%. However, there was an increase in job seeker traffic.

Focusing on US revenue specifically for the HR technology segment, there was a 10.1% decrease in the fourth quarter when measured in US dollars. On the other hand, revenue outside the US rose by 2.4%.

In the staffing business, Recruit noted that Japanese staffing revenue increased, while revenue in other regions experienced a decline.

The revenue for the “Europe, US, and Australia” segment actually rose by 6.0% year over year, amounting to ¥205.1 billion (US$1.55 billion). However, when measured on a constant currency basis, revenue in this segment decreased by 3.3%. The company attributed this decrease to the uncertain economic outlook, which has led to slower growth.

Recruit’s staffing brands, such as Staffmark Group and The CSI Cos. Inc. in the US, Chandler Macleod Group Ltd in Australia, and RGF Staffing in Europe, are included in its operations.

In its Japanese staffing operations, Recruit reported a significant increase in revenue, rising by 14.0% year over year to ¥178.4 billion (US$1.35 billion).

The matching and solutions operating unit of Recruit witnessed a 12.6% increase in revenue during the fourth quarter. Within this segment, revenue in the HR solutions portion rose by 11.6%. Other areas covered by this segment include non-staffing publishing operations. The HR solutions offered by Recruit include online job matching services like Rikunabi in Japan, specifically designed for new graduates.

Looking ahead, Recruit has provided guidance for the first quarter, expecting revenue to decrease between 1.6% and 5.1% year over year. The company anticipates a contraction in the size of its HR matching market due to the deteriorating economic environment in the US and Europe. However, full-year guidance is not being provided at this time due to the challenge of predicting the extent of market contraction.

For the first quarter, revenue in the HR technology segment is expected to decline between 13.5% and 17.5% in US dollars. On the other hand, HR solutions revenue is projected to increase by 6% year over year.

Recruit foresees an 8% year-over-year decline in staffing revenue for the “Europe, US, and Australia” segment. Conversely, Japanese staffing revenue is expected to grow by 12% year over year.

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