Recruit Holdings Co., Ltd. (Recruit Holdings) reportedly achieved revenue and profit growth despite a decline in the number of job postings, buoyed by expanding demand related to AI. Its HR Technology business, including major subsidiary Indeed, led the strong performance. The new forecast was also revised upward, drawing attention to the company’s future results.
Newsweek Japan reports that Recruit Holdings expanded revenue and profit even as the number of job postings declined amid changes in the labor market driven by the advance of the AI revolution. In the first quarter of the current fiscal year, revenue rose 18.9% year on year to ¥1.0453 trillion, while operating profit increased 66.1% to ¥255.4 billion. The full-year operating profit forecast was also revised upward from ¥787 billion to ¥945 billion.
The HR Technology business, centered on US-based Indeed, drove growth. Although the number of job postings declined by approximately 4% year on year, revenue reportedly increased by approximately 30%, while US ARPJ, revenue per job posting, rose 35%. Higher unit prices and an expanding customer base were cited as factors behind the revenue and profit growth.
Indeed has evolved beyond a simple job-posting website into a service that uses AI to improve the efficiency of recruitment activities. Companies are reportedly using a single job posting to test its effectiveness and then applying the results to other job postings. The article presents Recruit Holdings’ strong performance against the backdrop of this trend.