Recruit Holdings (6098) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 revenue rose 6.0% year-over-year to ¥901.5 billion, with profit attributable to owners up 8.5% to ¥106.4 billion and basic EPS up 11.4% to ¥69.12.

• Adjusted EBITDA increased 7.9% year-over-year to ¥179.0 billion, and operating income grew 5.1% to ¥127.8 billion.

• Q1 results align with prior guidance, with HR Technology revenue trends matching expectations of continued softness in job demand, especially in the U.S.

• Management maintains a cautious outlook, viewing FY2024 as a preparatory 'year zero' before anticipated recovery.

• No revision to full-year guidance, as both business performance and currency trends remain within forecasted ranges.

Financial highlights

• Q1 FY2024 revenue: ¥901.5 billion (+6.0% YoY); adjusted EBITDA: ¥179.0 billion (+7.9% YoY); operating income: ¥127.8 billion (+5.1% YoY).

• Profit attributable to owners: ¥106.4 billion (+8.5% YoY); basic EPS: ¥69.12 (+11.4% YoY).

• Gross profit increased to ¥530.6 billion from ¥495.6 billion year-over-year.

• Net cash provided by operating activities rose to ¥127.6 billion from ¥54.6 billion year-over-year.

• Net cash balance increased 6.6% to ¥1,210.3 billion as of June 30, 2024.

Outlook and guidance

• FY2024 revenue guidance: ¥3,300.0–¥3,500.0 billion (-3.4% to +2.4% YoY); adjusted EBITDA: ¥570.0–¥675.0 billion (-4.7% to +12.8% YoY); operating income: ¥390.0–¥500.0 billion (-3.1% to +24.2% YoY).

• Profit attributable to owners: ¥315.0–¥400.0 billion (-10.9% to +13.1% YoY); basic EPS: ¥206.00–¥260.00.

• Dividend per share forecast: ¥24.00.

• Management expects U.S. job openings to continue declining until mid-to-late FY2024, with a potential bottoming out in FY2025.

• Anticipates stronger momentum for Indeed Plus and HR Tech Japan in H2.