Recruit Holdings Co Ltd Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Junko Yamamura - Citigroup Inc., Research Division - Analyst : Thank you. I also have 2 questions. This is kind of a follow-up on the previous question and answer. Until Q4 implementation of PPSA model seemed rather challenging. But in the first quarter, I saw that you explained that promotion of this PPSA model was promoted pretty significantly. What changed? Is it because of better penetration of your measures, better understanding in the market? Can you give us some more color on that? That is my first question.

Question: Junko Yamamura - Citigroup Inc., Research Division - Analyst : Right. My second question is Q1 results and Q2 outlook. When I look at them, as long as there is no rapid change in the environment, EBITDA is expected to be flat or go up. But from your flash reports, I could see that there are signs of better environment. And I understand there is some unclarity throughout this fiscal year. But -- is it possible for you to cancel the cost reduction measures? And move on to a growth track once again during this year. And with the leverage maintained, can I expect a further improvement in profit if that happens together with the improvement in the environment?

Question: Haruka Mori - JPMorgan Chase & Co, Research Division - Analyst : I am also interested in this topic of PPSA. So you mentioned shift to PPSA and PPA. When we think about the revenue of HR technology, how much is the impact from this shift? In the first quarter, the revenue was close to the higher range of the guidance were perhaps above macroeconomic environment perhaps was simply better than your expectation. But how much was the impact from this change in the pricing model? And within the same amount of budget, you said that you shift from PPC to PPSA, and that's understandable. But because of the higher value add or better convenience, does it lead to better wallet share and increased budget of your clients? Or do you see any signs of that happening? From the second half to next fiscal year, macroeconomic environment is still unclear. And the shift of pricing model was -- I imagine that it was expected to bring about positive benefit later in your journey, but how has been the progress? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 10, 2023 / 8:00AM, 6098.T - Q1 2024 Recruit Holdings Co Ltd Earnings Call

Question: Haruka Mori - JPMorgan Chase & Co, Research Division - Analyst : That's all I have to ask.

Question: Shinji Tanioka - Macquarie Research - Analyst : Thank you. So in the script, indeed, in Glassdoor access number is up year-on-year, you said. How can I look at this. So in relative competitive position changing. So if you could elaborate, please access -- number of access those who are seeking for job, the access of the job seekers.

Question: Junko Yamamura - Citigroup Inc., Research Division - Analyst : So this is my second round about matching a solutions business. My first question is about the revenue of matching & Solutions business, it is increasing year-on-year. And in the end of the year, including ads and per cost, you explained how you are going to reduce cost, and we actually see -- saw an increase in profitability. And is it correct that there has been no negative impact? And in the HR Solutions business, you worked on centralizing a point of contact for clients. And in the first quarter, has there been any impact already? Or is it going to happen in longer time line? That is my first question. And my second question is in another company, they described that how advertising and restaurant sector is decreasing. But is there any difference? Well, I'm talking about marketing solutions. Is there any difference in colors as to how different sectors are behaving recently?