Strengthening the Talent Agency Service

「In the recruitment placement service, the company optimised its sales strategy with a focus on the number of placements per employee, or productivity, and prioritised expanding contact with job seekers. As a result, the number of placements per employee improved from the previous fiscal year and the number of successful placements increased. In addition, the average placement price rose as the number of placements involving higher fee rates increased, alongside higher salaries at the time of placement, with the aim of strengthening employers’ hiring competitiveness. Revenue from the recruitment placement service therefore increased significantly from the previous fiscal year. Recruitment placement transactions (people) 721 989 Average price per recruitment placement (¥ thousand) 3,858 4,169」

「In the recruitment placement service, the company optimised its sales strategy with a focus on expanding contact with more job seekers to improve the number of placements per employee, or productivity, with the aim of becoming the No. 1 startup HR provider in both quality and scale. As a result, the number of successful placements and the number of placements per employee improved. In addition, the proportion of job seekers in higher salary bands increased, keeping prices at a high level, and revenue from the recruitment placement service increased significantly year on year.」

「In addition, the company’s core business, “Talent Agency,” will be renamed “Human Capital” from the fiscal year ending March 2026 and developed as a service that more clearly embodies the value of human capital support.」

「Although hiring progressed smoothly compared with previous years, the transition to a new training method was delayed, reducing the volume of job seekers handled per employee. As a result, productivity in the recruitment placement service declined more than expected, becoming particularly apparent in a significant shortfall in orders received in November 2024, when newly recruited personnel had been expected to become fully productive.」

「During the interim consolidated accounting period, existing large clients that had suspended hiring for approximately one year began hiring again, positively affecting mainly order activity, and orders received for the recruitment placement service progressed in line with plan. However, because the start dates of successful job changers shifted, revenue recognition was deferred beyond expectations. The number of employees joining between July and September 2024 was therefore lower than expected, resulting in a shortfall against plan.」

「During the cumulative third-quarter consolidated period, the recruitment placement service maintained high prices, with a high proportion of placements in higher salary bands, as the company steadily supported scarce positions such as executive candidates and engineers for whom demand remained high despite headwinds in the startup market. Although consulting service revenue declined from the previous quarter, the service continued to win demand and remained above the original plan. As a result, Talent Agency revenue was ¥2,132.797 million, up 6.6% year on year.」

「The recruitment placement service saw a significant increase in the number of placements following strong order activity in the first-quarter consolidated accounting period. In addition, the company continued to focus on scarce talent such as executive candidates and engineers, for whom demand remained high, resulting in a high proportion of placements in higher salary bands and maintaining high prices. Although the consulting service was expected to see lower demand due to the business environment, it exceeded the previous quarter as sales efforts led to progress in developing new clients and other initiatives. As a result, Talent Agency revenue for the second-quarter consolidated accounting period reached a record high of ¥802.284 million.」

「Although the company had expected orders received in the Talent Agency service to follow the trend of the previous fourth-quarter consolidated accounting period, orders received reached a record high of ¥763.425 million as efforts to identify hiring needs at startups and develop new clients progressed smoothly, supported by increased staffing and training.」

「The number of placements in the recruitment placement service fell sharply as domestic startups moved to curb costs under guidance from venture capital firms and other factors, while the company also devoted a certain amount of time to investigating the correction of prior-period financial results announced on 20 January 2023 and rebuilding its business processes. However, the company was able to focus continuously on scarce talent such as executive candidates and engineers, for whom demand remained high, resulting in more placements in higher salary bands and higher prices. Although the consulting service was expected to see lower demand due to the business environment, it recovered from the results of the previous fourth-quarter consolidated accounting period as sales efforts led to progress in developing new clients. As a result, Talent Agency revenue was ¥681.653 million, down 0.5% year on year.」

「The company changed to a strategy focused on targeted support for difficult, high-demand positions such as executive-level and engineering roles. As a result, although the number of placements declined, average prices rose significantly, and revenue from the recruitment placement service progressed in line with the plan. In addition, stronger sales of the consulting service, which provides more intensive support for difficult positions, brought consulting service revenue to a level well above plan. As a result, Talent Agency revenue was ¥2,664.246 million, up 23.5% from the previous fiscal year.」

「During the cumulative third-quarter consolidated period, some startups reduced their hiring needs amid an uncertain macroeconomic environment. The recruitment placement service remained solid due to a strategy focused on supporting leading startups with relatively strong hiring needs and difficult, high-demand positions such as executive-level and engineering roles. In addition, stronger sales of the recruitment consulting service, which provides more intensive support for clients with strong hiring needs, proved effective, keeping revenue from the service at a high level. As a result, Talent Agency revenue was ¥2,000.260 million.」

「The company accurately identified the needs and trends of leading startups and focused on supporting difficult, high-demand positions such as executive-level and engineering roles. As a result, although the number of placements declined, the proportion of high-income placements increased and more clients raised placement fee rates to recruit scarce talent, bringing the average revenue per placement to a record high and keeping the recruitment placement service solid. Sales of the recruitment support service also remained at a high level, as leading startups increasingly adopted the service amid stronger sales efforts and demand for scarce talent. As a result, Talent Agency revenue for the cumulative second-quarter consolidated period was ¥1,376.734 million.」

「During the cumulative first-quarter consolidated period, some startups reduced their hiring needs amid an uncertain macroeconomic environment. However, the recruitment placement service remained solid as the company strengthened support for leading startups with relatively strong hiring needs and high-demand positions such as executive-level and engineering roles. In particular, the average revenue per placement reached a record high due to increases in salary ranges and placement fee rates. In addition, stronger sales of the recruitment support service, which provides more intensive support for clients with strong hiring needs, kept revenue from that service at a high level. As a result, orders received during the cumulative first-quarter consolidated period were ¥650.121 million and revenue was ¥685.053 million.」

「Under these circumstances, strengthened support for companies with strong hiring needs and high-demand positions such as executive-level and engineering roles, together with stronger sales of the recruitment support service, which provides more intensive support for clients with strong hiring needs, resulted in revenue of ¥2,156.780 million for the consolidated fiscal year.」

「Against this backdrop, the company continued to strengthen support for companies with strong hiring needs and high-demand positions such as executive-level and engineering roles, while also strengthening sales of its recruitment support service, which provides more intensive support for clients with strong hiring needs. As a result, revenue for the cumulative third-quarter consolidated period was ¥1,559.967 million. Orders received in the third quarter of the fiscal year ending March 2022 were also at the same level as in the first quarter, which had set a quarterly record.」

「The company continued to strengthen support for companies and high-demand positions such as executive-level and engineering roles. As a result, orders received in the second quarter of the fiscal year ending March 2022 remained at the same level as in the first quarter, which had set a quarterly record. Revenue for the cumulative second-quarter period was ¥1,050.278 million.」

「The company continued to strengthen support for companies with strong hiring needs and high-demand positions such as executive-level and engineering roles, as well as management functions including training. As a result, orders received in the first quarter of the fiscal year ending March 2022 reached a record high for the second consecutive quarter, following the fourth quarter of the fiscal year ended March 2021. Revenue for the cumulative first-quarter period was ¥510.512 million, up 75.3% year on year.」

「Orders received in the first half declined sharply due to a decrease in the number of job openings. However, orders received in the second half increased significantly from the first half, up 50.9%, as the number of job openings began to recover and the initiatives described above were further strengthened. As a result, full-year orders received increased 1.9% year on year.」

「Under these circumstances, the company continued to strengthen support for companies with strong hiring needs and high-demand positions such as executive-level and engineering roles. As a result, although the number of placements declined year on year, transaction prices increased, and revenue for the cumulative third-quarter period was ¥843.372 million, down 4.7% year on year.」

「As the total volume of job openings among clients declined, the company strengthened support for companies with strong hiring needs and high-demand positions such as executive-level and engineering roles. As a result, although the number of transactions declined year on year in response to the decrease in job openings, this contributed to higher transaction prices, and revenue for the cumulative second-quarter period was ¥586.508 million.」

「The company focused on leading startups with strong hiring needs, strengthened support for positions with strong demand, including executive-level and engineering roles, and worked to strengthen its organisational capabilities.」

「To expand its core Talent Agency services, the company implemented measures including strengthening the recruitment and training of Human Capitalists and investing in system development to improve productivity.」