Revenue fell 5.7% in constant currency at Recruit Holdings Co. Ltd., the fifth-largest global staffing firm and owner of Indeed and Glassdoor. The Tokyo-based company isn’t providing guidance for the full fiscal year, citing difficulty in predicting the size and length of the market’s slowdown.
Recruit reported revenue today for its fiscal second quarter ended Sept. 30.
Revenue in the company’s “HR Technology” segment, which includes Indeed and Glassdoor, fell 19.1% year over year. The decline was as measured in US dollars on a constant currency basis. “The supply and demand mismatch between job seekers and employers continued to ease, with global labor markets normalizing, particularly in the US,” the company said.
More on HR Technology and Indeed and Glassdoor is available in a separate Staffing Industry Daily News story.
HR Technology is one of Recruit’s three reporting segments. The others are Staffing and “Matching and Solutions.”
Staffing
Staffing revenue rose 1.5% year over year driven by staffing revenue from Japan, which rose by 10.9%. However, staffing revenue fell 5.1% in Europe, the US and Australia, where demand slowed.
Recruit’s US staffing business includes Staffmark Group LLC and The CSI Cos. Inc., while its Australian business includes Chandler Macleod Group Ltd. Its European staffing operations include RGF Staffing.
Matching and Solutions
Recruit’s “Matching and Solutions” segment includes perm placement and consulting business as well as nonstaffing publishing businesses. Revenue in this business line rose 8.0% year over year.
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Guidance
While Recruit is not providing full-year guidance, the company said it expects third-quarter revenue to be down by between 2.3% and 4.6% year over year.
HR technology revenue is expected to decrease by approximately 18% year over year on a US dollar basis in the third quarter. This assumes no sharp deterioration in the economic environment.
Staffing revenue in Japan is expected to be up 11% year over year in the third quarter, while revenue from staffing operations in the Europe, the US and Australia is expected to decrease by 5%. The company expects demand in Europe, the US and Australia to continue slowing because of the uncertain economic outlook.
HR solutions, which provides recruitment and is part of Matching and Solutions, is expected to see revenue increase by 4.5% year over year int the third quarter.
Share price
Shares in Recruit Holdings closed at 4,980 Japanese yen (US$33.12) today in Japan; shares were 7.73% below their 52-week high, according to FT.com.