The following is a summary of the Recruit Holdings Co., Ltd (RCRRF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• U.S. HR technology division exceeded initial expectations as revenue per paid job ad increased over the decline in the number of paid job ads.

• Full year guidance revised; lower limits of ranges significantly raised from previous estimates.

• Net cash and deposits as of September 30, 2024 were JPY 756.6 billion, a decrease from JPY 1,135.4 billion as of March 31, 2024.

• Share buybacks executed extensively, with 80% of the maximum total purchase price of JPY 600 billion utilized over 4 months ending October.

Business Progress:

• Transition to Indeed PLUS in Japan is progressing, albeit slower than initial expectations with complete transition from PPP advertising model by end of FY 2024.

• Plans for HR Solutions business in Matching & Solutions to be transferred to HR Technology segment starting next fiscal year.

• Staffing growth revenue in Japan is expected to offset by the performance in Europe, U.S., and Australia.

Opportunities:

• Continuing transition to Indeed PLUS enhances platform capabilities and may increase revenue as it integrates existing job board businesses in Japan.

• Strategic reorganization, transferring HR Solutions to HR Technology segment, expected to enhance operational efficiency and business clarity starting next fiscal year.

Risks:

• Persistent decline predicted in the number of paid job postings in the U.S. expected to continue until the end of the current fiscal year.

• HR Technology expenditures and marketing strategies in the second half may not lead to immediate profitability improvements.

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