The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Haruka Mori - JPMorgan Chase & Co, Research Division - Analyst
: I have 2 questions. First, as Deko-san explained earlier, well, I'm focusing on the short-term viewpoint, but revenue in July grew by 15%. And if this
trend continues, you will land at the lower half of the range. And I would like to confirm, in the first quarter I believe the performance was quite
strong. And if we look at July alone, this expectation for the lower half of the range, is it because of the slowdown beyond July would be faster than
expected. And previously, revenue per job was disclosed for the first time and how has it trended in the first quarter? If possible, I would appreciate
that comment.
Unidentified Company Representative
First of all, situation in July and the speed has slowdown beyond July were the 2 points in your question. Well, I believe there are a couple of factors.
In the guidance for HR Tech SBU, this is based on U.S. dollar. Therefore, if the U.S. dollar is stronger, that would affect the revenue growth. However,
especially the decline of speed in the U.S. is quite fast in July from our viewpoint. If the speed continues and as we speak with our customers, we
hear voices saying they're thinking about reducing the number of hirings. And as I said earlier, in the typical economic recession, the signs will be
the number of job postings by our small and medium-sized companies. If we see them decline, that will be a sign of economic recession. From
that, we also believe the speed may be faster than we had expected.
But as you said, in this July, if we look at this July, we are based on the assumption that the trend continues. So if we look at August or September,
well, it is also true for the share price, but maybe the decline won't be slower than we had expected, especially in the U.S., the mood for economic
slowdown does not expand or spread, perhaps the situation may be better. But if we only focus on the deceleration in July, we have to say that it
was a quick slowdown.
And the other point is price per job, revenue per job is the trend in the first quarter. Well, to be specific for large enterprises, our systems are
integrated in such companies and such number of such companies have been increasing. So the number of job advertisements by such large
enterprises has been increasing. I believe we discussed this previously that on our hiring platform, there are employers who directly post their ads
and there are clients who are connected by system. They have different trends. Of course, we strive to offer value to every customer, but our system
connected customers tend to have a larger volume and that is resulting in a slow growth in the revenue per job. But for those on platform, we have
been taking various measures. Therefore, we have been seeing stronger trend. That is our impression. I hope I answered your question.
Question: Haruka Mori - JPMorgan Chase & Co, Research Division - Analyst
: I see. Is there any reason for that trend for this increase in the index job? Or did it just happen to be that way in the first quarter?
Unidentified Company Representative
ATS integration, well, there are more customers who are connected through the system. And depending on customers, 100,000 jobs will be the
volume they budget for. And if we look at budget per job, it can be smaller. So system integration type of customers is increasing. That is how I
would address your question. Thank you.
Question: Haruka Mori - JPMorgan Chase & Co, Research Division - Analyst
: Thank you very much. That was clear. Thank you.
Unidentified Company Representative
Well, CPA, CPQA, in addition to them, we are trying to offer various values, especially for those on our platform, we've been seeing a rise in the
revenue -- unit revenue.
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AUGUST 12, 2022 / 8:00AM, 6098.T - Q1 2023 Recruit Holdings Co Ltd Earnings Call
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