Indeed and Glassdoor Owner Posts Profit Rise — Update

By Kosaku Narioka

Recruit Holdings reported a rise in first-quarter net profit, thanks to stronger earnings from its human-resources technology business and other key segments.

The owner of the Indeed and Glassdoor job sites said Thursday that net profit increased 8.5% from a year earlier to 106.43 billion yen, equivalent to $725.5 million, for the three months ended June.

That beat the estimate of Y96.9 billion in a poll of analysts by data provider Visible Alpha.

Quarterly revenue increased 6.0% to Y901.56 billion.

Adjusted earnings before interest, taxes, depreciation and amortization from operations of the Indeed and Glassdoor job sites rose 2.2% to Y100.2 billion, though revenue for the human-resources technology segment declined 2.5% from a year earlier in U.S. dollar terms.

The company aims to cut the hiring time by half over the 10 years through March 2031.

In an interview, Recruit Chief Operating Officer Ayano Senaha said that to help achieve that goal, the company is now testing services that can suggest potential candidates so that hiring companies can invite the candidates they like to apply for the jobs rather than wait for them to find the postings and apply.

Senaha said the company has been making improvements to the services, such as recommending the time of day to send invitations and the wording of invitations based on artificial intelligence's reviews of candidates' resumes.

Recruit maintained its earnings forecasts for the year ending March 2025. The company continues to expect revenue to be between Y3.300 trillion and Y3.500 trillion and net profit to be between Y315.00 billion and Y400.00 billion this fiscal year.

First-quarter adjusted Ebitda for its marketing and human-resources solutions climbed 22% to Y51.7 billion and that of its staffing business rose 7.1% to Y28.6 billion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 08, 2024 06:07 ET (10:07 GMT)

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