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Recruit Holdings revenue up 6%; HR tech segment leads growth

February 13, 2019

Recruit Holdings Co. Ltd., one of the world’s largest staffing firms, reported revenue rose 6.0% in its fiscal third quarter ended Dec. 31. The fastest growth took place in the Tokyo-based company’s “HR Technology” segment, which includes job board Indeed and recently acquired Glassdoor. Revenue was up 48.4% in this segment during the quarter.

However, the company reported overseas staffing revenue fell 7.4%.

(¥millions) Q3 2018 Q3 2017 % change Q3 2018 (US$millions)
Revenue ¥587,097 ¥553,802 6.0% $5,319.1
Gross profit ¥297,045 ¥256,199 15.9% $2,691.2
Gross margin 50.6% 46.3%    
Profit for the period ¥53,740 ¥46,696 15.1% $486.9

Revenue growth within the HR technology segment was mainly attributed to increased sponsored job advertising revenue from new and existing clients at Indeed and the inclusion of Glassdoor, which Recruit acquired in June. The group added that Glassdoor attracted approximately 64 million monthly unique visitors and traffic grew by double-digits year over year in the quarter.

Indeed also announced today that it has named Chris Hyams as its new CEO.

Revenue by segment

(¥millions) Q3 2018 Q3 2017 % change Q3 2018 (US$millions)
HR Technology (Indeed and Glassdoor) ¥85,186 ¥57,418 48.4% $771.8
Media & Solutions ¥178,256 ¥166,721 6.9% $1,615.0
Staffing ¥331,152 ¥336,271 -1.5% $3,000.2

Recruit has staffing operations in the US, Europe and Australia as well as Japan. Examples of its overseas operations include Staffmark Holdings in North America, Recruit Global Staffing BV in Europe and Chandler Macleod Group Ltd. in Australia.

Staffing revenue outside of Japan fell 7.4% to ¥190.3 billion (US$1.72 billion) in the third quarter. The company cited an uncertain outlook for the European economy, the negative impact of foreign exchange rate movements and the adoption of IFRS 15. Japanese staffing revenue rose 7.8% to ¥140.8 billion (US$1.28 billion).


Recruit expects full-year revenue to rise 5.9%.

Share price and market cap

Recruit shares closed up 4.70% at ¥3,098.00 in Tokyo today; the company had a market cap of ¥5.02 trillion, according to FT.com.


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