Expanding business scale and long-term profits through growth investment in Indeed

「EBITDA+S margin for the consolidated fiscal year was 37.7%, reflecting progress in efficiency measures, including lower personnel expenses. EBITDA+S for the consolidated fiscal year increased 21.5% to ¥549.9 billion.」

「EBITDA+S margin for the second quarter increased 2.6 percentage points to 37.9%, reflecting progress in operational efficiency measures in the US, Europe and other regions, including the workforce reduction announced in July this year.」

「Research and development expenses for the consolidated fiscal year were ¥168.3 billion. The main component was personnel expenses for engineers and technology development staff involved in developing new products and improving existing products using new technologies, most of which related to the HR Technology business.」

「Adjusted EBITDA margin in the HR Technology business was 34.0%, up from 30.7% in the previous consolidated fiscal year. The company implemented cost controls focused mainly on personnel expenses and advertising and promotional expenses while continuing to invest in new products and technology development to support future growth.」

「Adjusted EBITDA margin for the third quarter increased 5.1 percentage points to 33.2%. This was mainly due to year-on-year decreases in advertising and promotional expenses and personnel expenses, while the company continued investing in new products and technology development to support future growth.」

「Adjusted EBITDA margin for the second quarter increased 5.5 percentage points to 35.8%. This was mainly due to year-on-year decreases in advertising and promotional expenses and personnel expenses, while the company continued investing in new products and technology development to support future growth.」

「Adjusted EBITDA margin for the first quarter increased 4.4 percentage points to 38.1%. This was mainly due to a year-on-year decrease in global advertising and promotional expenses, while the company continued investing in new products and technology development to support future growth.」

「To achieve Simplify Hiring, one of our management strategies, we actively hired personnel involved in developing new products and technologies in the first half. However, in light of changes in the business environment, we temporarily suspended hiring and significantly reduced expenses, including advertising expenses, in the second half.」

「The adjusted EBITDA margin for the third quarter fell 6.7 percentage points to 28.1%. This was mainly because the rate of increase in personnel expenses from hiring conducted in the first half exceeded the rate of revenue growth. In the third quarter, we began controlling costs in view of the business environment, and advertising expenses declined from the previous year.」

「Second-quarter revenue increased 40.1% year on year, while revenue on a U.S. dollar basis increased 11.6%. This was due to increased demand for recruitment solution services centered on job advertising provided by Indeed and Glassdoor, as strong global hiring demand continued.」

「The adjusted EBITDA margin for the first quarter was 33.7%. While advertising expenses and personnel expenses related to the sales division increased moderately year on year, expenses including those for new product and technology development and related hiring increased significantly. As a result, the number of employees in the HR technology SBU continued to increase. Adjusted EBITDA increased 27.7% year on year.」

「Revenue for the fiscal year was ¥861.4 billion, up 103.5% from the previous fiscal year, while revenue on a U.S. dollar basis (Note) increased 91.6% from the previous fiscal year.」

「Revenue for the nine months ended the third quarter increased 113.9%, the adjusted EBITDA margin was 36.5%, and adjusted EBITDA increased 361.4%.」

「Second-quarter revenue increased 107.3% year on year, while revenue on a U.S. dollar basis increased 100.1%.」

「Marketing investment increased year on year because it had been significantly reduced in the first quarter of the previous year, while investment in product development and new technologies for future growth also continued. Adjusted EBITDA increased significantly, rising 783.9% year on year.」

「As revenue recovered, we increased marketing investment from the third quarter and continued hiring engineers and technical personnel to develop products aimed at improving the efficiency of job searches and the recruitment process and significantly reducing recruitment costs and time, in line with the goals of the HR technology business.」

「Third-quarter revenue was ¥114.5 billion, up 4.6% year on year, while revenue on a U.S. dollar basis (Note 1) increased 8.8% year on year. As revenue recovered, we increased marketing investment from the second quarter and continued hiring engineers and technical personnel to develop products aimed at improving the efficiency of job searches and the recruitment process and significantly reducing recruitment costs and time, in line with the goals of the HR technology business.」

「Even amid this uncertain economic environment, we increased marketing investment in the second quarter from the first quarter in response to revenue trends, and partially resumed new hiring in the latter half of the second quarter. We also continued to invest in developing innovative and differentiated products that improve the efficiency of the recruitment process and enable significant reductions in recruitment costs and time.」

「Against a backdrop of a significant decline in revenue and medium- to long-term economic uncertainty, we restrained marketing investment and suspended new hiring from March 2020 through the first quarter. Meanwhile, even in this difficult business environment, we continued to invest in developing innovative and differentiated products, including services that enable high-volume hiring and services that support new ways of working remotely, in order to meet the current and future needs of individual users and corporate clients.」

「As a result, revenue for the fiscal year was ¥424.9 billion, up 30.0% from the previous fiscal year, while revenue on a U.S. dollar basis (Note 1) increased 32.7% from the previous fiscal year.」

「Segment adjusted EBITDA for the nine months ended the third quarter was ¥62.8 billion, up 70.5% from the same period of the previous year, and the segment adjusted EBITDA margin was 19.7%.」

「In the second quarter, monthly unique visitors to Indeed and Glassdoor exceeded 250 million and 60 million, respectively (Note 3). At the end of the second quarter, they had approximately 9,700 and 1,000 employees, respectively.」

「We are making flexible investments in expanding the sales organization and conducting marketing activities to acquire new individual users and corporate clients, as well as strengthening products to expand services for both individual users and corporate clients, in order to drive revenue growth. The timing of these investments affects fluctuations in quarterly segment profit.」

「In the HR technology business, we will pursue further global expansion in the online job search site Indeed and the recruitment advertising business operated by the existing online job advertising and corporate information site Glassdoor. In addition, we will accelerate future growth by developing various new businesses and conducting M&A that contribute to greater efficiency in the recruitment process.」

「Indeed continues to pursue improvements in users' job searches through active investment in its platform. Indeed had approximately 250 million monthly unique visitors, continuing to grow at a double-digit rate year on year. Its client base continued to expand as the number of employers and staffing agencies using Indeed for recruiting increased, and revenue continued to grow. At the end of the third quarter, Indeed had offices in 29 cities across 14 countries and approximately 8,000 employees.」

「Indeed continues to pursue improvements in users' job searches through active investment in its platform. In the second quarter, the number of Indeed users continued to grow at a double-digit rate year on year, with approximately 250 million unique users (Note) using Indeed each month. Indeed's client base continued to expand as the number of employers and staffing agencies using Indeed for recruiting increased, and revenue continued to grow. At the end of the second quarter, Indeed had 27 offices in 14 countries and approximately 7,400 employees.」

「Revenue for the first quarter was ¥71.1 billion, up 53.0% year on year. This was mainly due to the acquisition of new clients and expanded usage of Indeed services by existing clients against a backdrop of favorable economic conditions and a strong employment market. Revenue on a U.S. dollar basis (Note) increased 56.0% year on year.」

「Revenue for the fiscal year was ¥218.5 billion, up 64.7% from the previous fiscal year. This was mainly due to the acquisition of new clients and expanded usage of Indeed services by existing clients against a backdrop of favorable economic conditions and a strong employment market. We also continued to make flexible investments in expanding the sales organization and conducting marketing activities to acquire new users and clients, as well as strengthening products to expand services for both users and clients, in order to drive revenue growth.」

「Revenue for the third quarter was ¥57.4 billion, up 67.3% year on year. This was mainly due to the acquisition of new clients and expanded usage of Indeed services by existing clients against a backdrop of favorable economic conditions and a strong employment market. We also continued to make flexible investments in expanding the sales organization and conducting marketing activities to acquire new users and clients, as well as strengthening products to expand services for both users and clients, in order to drive revenue growth.」

「Revenue for the second quarter was ¥52.7 billion, up 75.8% year on year. On a U.S. dollar basis, revenue increased 60.1% year on year. This was mainly due to progress in acquiring new customers and an increase in transaction value per customer. We also continued to make flexible investments in the sales organization and marketing activities to drive revenue growth.」

「Revenue for the first quarter was ¥46.4 billion, up 59.9% year on year. This was mainly due to expanded client usage of Indeed services. In addition, we increased advertising for the service and focused on strengthening the sales organization by hiring sales employees in order to raise brand awareness both in the United States and elsewhere.」

「Assuming the current economic conditions, revenue for the fiscal year ending March 2019 (Note 1) is expected to be three times the level for the fiscal year ended March 2016 (Note 2) on a U.S. dollar basis. In addition, we will use the advanced technology and user data and other assets accumulated through Indeed, Inc. and our existing businesses, as well as M&A, to create and expand new businesses in adjacent human resources fields.」

「In the overseas recruitment business, users grew steadily as we advertised Indeed.com and raised brand awareness not only in the United States, the current core market, but also in other countries. In addition, strengthening the sales organization led to steady growth in service usage by small and midsize clients, resulting in strong revenue performance. As a result, revenue in the overseas recruitment business was ¥85.9 billion, up 46.3% year on year.」

「In the overseas recruitment business, users grew steadily as we raised awareness of the Indeed.com brand not only in the United States, the current core market, but also in other countries. In addition, service usage by small and midsize clients grew steadily, resulting in strong revenue performance. As a result, revenue in the overseas recruitment business was ¥56.4 billion, up 56.5% year on year.」

「In the overseas recruitment business, users grew steadily as we worked to raise awareness of the Indeed.com brand not only in the United States, the current core market, but also in countries outside the United States. In addition, service usage by small and midsize clients, mainly in the United States, grew steadily, resulting in strong revenue performance.」

「At Indeed, Inc., where high growth has continued, we aim to expand the scale of the business and achieve long-term profit growth by making further aggressive growth investments.」