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Recruit Holdings Co., the parent company of Indeed and Glassdoor, has announced a notable increase in its first-quarter net profit, driven by strong performance in its human-resources technology and other core segments.
For the three months ended June 2024, Recruit Holdings reported a net profit of ¥106.43 billion ($725.5 million), marking an 8.5% rise from the same period last year. This result exceeded analyst expectations, which had predicted a net profit of ¥96.9 billion, according to a poll by Visible Alpha.
The company’s quarterly revenue also saw a robust increase, climbing 6.0% to ¥901.56 billion. This growth was supported by a rise in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) from its Indeed and Glassdoor operations, which grew 2.2% to ¥100.2 billion. However, it is worth noting that revenue from the human-resources technology segment experienced a slight decline of 2.5% in U.S. dollar terms.
Recruit Holdings has set ambitious goals for the future, aiming to halve the average hiring time by March 2031. Despite the challenges, the company has maintained its earnings forecasts for the fiscal year ending March 2025. It continues to project revenue between ¥3.300 trillion and ¥3.500 trillion, with net profit expected to range from ¥315.00 billion to ¥400.00 billion.
The first-quarter performance of Recruit’s marketing and human-resources solutions segment was particularly strong, with adjusted EBITDA increasing by 22% to ¥51.7 billion. Similarly, the staffing business reported a 7.1% rise in adjusted EBITDA to ¥28.6 billion.
Recruit Holdings remains committed to enhancing its operational efficiency and achieving its long-term strategic goals, despite the fluctuating market conditions and the challenges faced in the human-resources technology sector.
