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Recruit Holdings just released their 4th quarter and FY 2022 financial results.
- Revenue for Q4 FY2022 increased 6.2%. On a US dollar basis, revenue decreased 6.7%.
- The supply and demand mismatch between job seekers and employers continued to ease, with global labor markets normalizing, particularly in the US.
- Total job postings on Indeed declined year over year in many countries, while job seeker activity increased year over year.
- Revenue in the US decreased 10.1%, while revenue outside of the US increased 2.4%.
- Adjusted EBITDA margin for Q4 FY2022 decreased 2.3 percentage points to 30.5%.
- For FY2022, revenue increased 29.6% or 7.7% on a US dollar basis, adjusted EBITDA margin was 30.7%, and adjusted EBITDA increased 5.9% year over year.
Here are some key takeaways from the earnings report:
- Revenue growth slowed in Q4 FY2022, both in local currency and US dollar terms. This was due to a number of factors, including the easing of the supply and demand mismatch between job seekers and employers, as well as a decline in total job postings on Indeed.
- Adjusted EBITDA margin decreased in Q4 FY2022, primarily due to higher personnel costs. The company is taking steps to control costs, but it is unclear whether these measures will be enough to offset the headwinds facing the business. They are saving $500 million with their recent workforce reduction.
- Overall, the earnings report was mixed. While revenue growth slowed, adjusted EBITDA margin was maintained. The company is facing a number of challenges, but it is taking steps to address them.
One other interesting note: The Company considers the measured average number of hires per minute to be a Key Performance Indicator (KPI) that demonstrates their success in simplifying the hiring process. They believe this KPI indicates a successful engagement between job seekers and employers, which represents improvements in matching and automation, as well as improvements in employer engagement that help them measure more hires. In calendar 2022, based on internal measurement, an average of 23 job seekers were hired on Indeed and Glassdoor every minute.
You can access the earnings report PDF here.
