15 May 2024
Japanese staffing giant Recruit Holdings (6098: JP) reported revenue today for the fourth quarter ended 31 March 2024 of JPY 843.7 billion (USD 5.41 billion), an increase of 1.9% when compared to the same period last year but down 4% excluding the positive impact of exchange rate fluctuations.
| (JPY billions) | Q4 2023 | Q4 2022 | Change | Q4 2023 (USD millions) |
| Revenue | 843.7 | 827.7 | 1.9% | 5,415.5 |
| Adjusted EBITDA | 111.9 | 109.1 | 2.6% | 718.2 |
| Operating Income (Loss) | 55.7 | 19.4 | 186.3% | 357.5 |
| Profit before tax | 44.2 | 31.6 | 39.5% | 283.7 |
| Profit for the Period | 34.0 | 22.3 | 52.6% | 218.3 |
Operating income for Q4 2023 increased 186.3% year-over-year compared to the same period in the previous year when the costs related to a workforce reduction in HR Technology of JPY 17.6 billion (USD 112.99 million) were recorded.
Adjusted EBITDA margin for Q4 FY2023 was 13.3%. Adjusted EBITDA increased 2.6% year-over-year.
Revenue by segment
| (JPY billions) | Q4 2023 | Q4 2022 | Change | Q4 2023 (USD billions) |
| HR Technology | 253.3 | 251.3 | 0.9% | 1.6 |
| Matching & Solutions | 208.1 | 203.0 | 2.5% | 1.3 |
| Staffing | 392.8 | 383.6 | 2.4% | 2.5 |
Within HR Technology, the supply and demand mismatch between job seekers and employers continued to ease, particularly in the US. Total job postings on Indeed, composed of free and paid postings, declined year-over-year in the US and many other countries where HR Technology operates, while job seeker activity as measured by traffic to, and applies on, Indeed and Glassdoor increased year-over-year. On a US dollar basis, HR Technology revenue decreased 10.1%.
Within Matching & Solutions, revenue in HR Solutions decreased 4.9%, as revenue from the job advertising service decreased, while revenue from the placement service increased. Revenue in Marketing Solutions increased 7.9%. Revenue in the total of beauty, travel, and dining combined with SaaS solutions including Air BusinessTools, increased. Additionally, Housing & Real Estate and Others, which includes other services in Marketing Solutions, each increased.
Within Staffing, revenue in Japan increased 5.3% due to an increase in the number of temporary staff on assignment as demand for staffing services continued to grow year over year. Revenue in Europe, US, and Australia decreased 0.1%. Excluding the positive impact of exchange rate fluctuations of JPY 22.3 billion, Staffing revenue decreased 3.4% with declines in Europe, US, and Australia.
The group also reported full year revenue as follows:
| (JPY billions) | FY 2023 | FY 2022 | Change | FY 2023 (USD billions) |
| Revenue | 3,416.4 | 3,429.5 | -0.4% | 21.9 |
| Adjusted EBITDA | 598.3 | 545.0 | 9.8% | 3.8 |
| Operating Income | 402.5 | 344.3 | 16.9% | 2.5 |
| Profit before tax | 426.2 | 367.7 | 15.9% | 2.7 |
| Profit attributable to owners of the parent | 353.6 | 269.7 | 31.1% | 2.2 |
Guidance
Looking ahead, the group forecasted revenue of JPY 3.30 trillion to 3.50 trillion (USD 21.2 billion to 22.4 billion) for the FY 2024 year. Adjusted EBITDA is in the range of JPY 570.0 – JPY 675.0 billion (USD 3.6 billion to 4.3 billion) while operating income is expected to be between JPY 390.0 billion to 500.0 billion (USD 2.5 billion to 3.2 billion). Profit attributable to owners of the parent is expected to be in the range of JPY 315.0 billion – JPY 400.0 billion (USD 2.0 billion to USD 2.5 billion).
Earlier this week, the CEO of Indeed, part of Recruit, announced that the company was laying off approximately 1,000 people, or approximately 8% of its workforce.
Recruit Holdings shares last traded today at JPY 7,066 (USD 45.37), up 0.94% on the day. The company has a market cap of JPY 11.55 trillion (USD 74.16 billion).