Q4 revenue rises 23.9% at Recruit with HR tech revenue up 64.7%, including Indeed and Glassdoor


Revenue at Recruit Holdings Co. Ltd., one of the world’s largest staffing firms, rose 23.9% year over year in its fiscal fourth quarter ended March 31. Overall, the company noted economic activity continued to improve in the US and Europe.

The Tokyo-based staffing firm also noted a prolonged period of elevated hiring activity globally led to increased demand for its Indeed and Glassdoor operations.

(¥ billions) Q4 2021 Q4 2020 % change Q4 2021 (US$ billions)
Revenue 759.7 613.1 23.9%                                                                  6.2
Gross profit 441.1 320.0 37.8%                                                                  3.6
Gross margin 58.1% 52.2%  – 
Profit for the period 48.7 13.9 250.4%                                                                  0.4

Revenue rose across Recruit’s reportable segments — HR technology, media & solutions and staffing. The HR tech segment led the way in terms of growth.

Revenue by segment

(¥ billions) Q4 2021 Q4 2020 % change Q4 2021 (US$ billions)
HR Technology (Indeed and Glassdoor)                            236.6                          131.1 80.4%                                                                  1.9
Media & Solutions                            180.3                          179.3 0.6%                                                                  1.5
Staffing                            349.9                          309.3 13.1%                                                                  2.9

Revenue in Recruit’s HR tech segment — which includes Indeed and Glassdoor — rose 80.4%, an increase of 64.7% when measured in US dollars. Looking at just the US, revenue in the HR technology segment rose by 57.9% on a US dollar basis.

Recruit noted it typically takes 90% of Indeed users 15 weeks to find a job from when they actively start using the platform until receiving a job offer.

Separately, revenue in Recruit’s staffing division rose 13.1% year over year on a global basis.

Staffing revenue was up across geographies as the company reported increased demand in Europe, the US and Australia. Recruit noted continued demand for logistics roles to support e-commerce. In addition, revenue growth was bolstered by temporary demand for healthcare roles to support Covid-19 mitigation efforts, particularly in Europe.

Staffing revenue by geography

(¥ billions) Q4 2021 Q4 2020 % change Q4 2021 (US$ billions)
Staffing (Japan)                            156.5                          142.5 9.8%                                                          1,283.3
Staffing (Europe, US, Australia)                            193.4                          166.8 15.9%                                                          1,585.9

Recruit also reports revenue in its “media and solutions” business that includes nonstaffing revenue in publishing.

Full-year results

(¥ billions) FY 2021 FY 2020 % change FY 2021 (US$ billions)
Revenue                         2,871.7                       2,269.3 26.5%                                                               23.5
Gross profit                         1,650.0                       1,145.7 44.0%                                                               13.5
Gross margin 57.5% 50.5%
Profit for the period                            131.6                          297.7 -55.8%                                                                  1.1


Recruit forecast revenue for fiscal year 2022 will rise by 14.9%.

Revenue in its HR technology is estimated to increase by between 10% and 20% on a US dollar basis.

The company noted that its Indeed Flex platform will represent between 2% and 3% of HR tech revenue in fiscal year 2022. The Indeed Flex operations were formerly known as Syft and connect temporary workers with clients. Indeed Flex is an employer of record for temporary staff.

Staffing revenue from Europe, the US and Australia is expected to rise between 5.5% and 7% year over year while Japanese staffing is expected to witness an increase between 9% and 12% year over year.

Share price and market cap

Shares in Recruit closed up 2.99% today in Tokyo to ¥4,692 (US$36.27); they were 10.48% above their 52-week low, according to FT.com. the company had a market cap of ¥7.42 trillion (US$57.36 billion).