Recruit Holdings Co., Ltd.

Business Details

Operating in the US, Europe, and Japan as key markets, this segment runs Indeed (the world's largest job listing site) and Glassdoor (a workplace transparency platform). It has built a global talent marketplace with over 665 million job seeker profiles created on Indeed and 3.5 million corporate clients annually. The strategy centers on improving AI-driven matching accuracy and automating the hiring process (Simplify Hiring), monetizing through both pay-for-performance and subscription models. As of April 1, 2025, the staffing/recruitment area of the former Matching & Solutions Segment was transferred to this segment, strengthening integrated operations in the Japanese market.

Recent Overview

EBITDA+S margin improved significantly through monetization evolution and efficiency gains despite sluggish hiring demand

Full-year FY2026 (ending March 2026) segment revenue increased 6.3% year on year to ¥1,454,440 million, and EBITDA+S increased 21.5% to ¥549,995 million. Amid sluggish hiring demand in the US, monetization evolution—including a 17% increase in US average revenue per job—drove an 8.8% increase in revenue on a US dollar basis. EBITDA+S margin improved to 37.7% due to progress in efficiency measures including labor cost reductions. Average hires per minute rose from 27 in 2024 to 31 in 2025. For FY2027 (ending March 2027), HR Technology Segment revenue is projected at ¥1,653,700 million (+13.4% year on year), with an EBITDA+S margin of 41.0%.

Key Products

Growth Drivers

• Monetization evolution in the US market (achieving 17% growth in US average revenue per job even amid sluggish hiring demand, driving an 8.8% increase in revenue on a US dollar basis)
• Revenue expansion in Europe and other regions (up 19.2% on a US dollar basis for full-year FY2026, with +17.1% projected for FY2027 as well)
• Improved EBITDA+S margin (achieving 37.7%, with 41.0% projected for FY2027) through progress in efficiency measures including labor cost reductions
• Improved hiring efficiency for corporate clients (hires per minute increasing from 27 to 31) through AI-driven matching accuracy improvements and hiring process automation (Simplify Hiring strategy)
• Strengthened integrated operation of group staffing/recruitment-related businesses in Japan through Indeed PLUS and Recruit Agent
• Reduced time to hire through AI-driven products such as Indeed Smart Screening (average 20% reduction in time to hire in initial US tests)

Risks

• Risk of stagnant hiring demand in the US market (a softening labor market affecting job volumes, potentially limiting the ability of price increases alone to offset this)
• Declining revenue in the Japanese market (down 4.6% year on year for full-year FY2026, with continued low growth of -0.2% projected for FY2027)
• Foreign exchange risk (yen conversion effects from US dollar, euro, and Australian dollar directly impact results; the assumed rate for FY2027 is ¥154 to the US dollar)
• Intensifying competition amid rapid advances in AI and machine learning technology (competition with global players including LinkedIn)
• Risk of tightening regulations related to individual user privacy protection and data security
• Risk of intensifying competition from emerging players in the recruitment automation market