Business Description

Recruit Holdings Co, Ltd., headquartered in Tokyo, Japan, was established on March 31, 1960. It is divided into the following business segments: Human Resources (HR Technology), Media, Staffing, and Solutions. The Human Resource Technology section provides platforms for job hunting, such as Glassdoor and Indeed. Solutions and Media offer human resources and marketing solutions. Recruit announced the acquisition of ClickIQ, an automated recruitment platform.

ClickIQ was founded in 2017 by Mr. Richard Collins and Mr. Beverly Shaw. The Staffing section deals with staff dispatch domestically as well as internationally. ClickIQ’s proprietary technology tracks and optimizes the show of enterprise clients’ recruiting advertising in real-time. This allows the client to focus their job advertising spend on the areas most needed to reach the highest quality candidates at the lowest cost.

Key Financials

Revenue (US$ Mn):

• Recruit Holdings Co, Ltd.’s annual revenue for 2021 was US$ 20,698 Mn, a 26.54% increase from 2020
• The annual revenue generated by Recruit Holdings Co, Ltd. in 2020 was US$ 16,356 Mn
• At a 2.57% increase from , Recruit Holdings Co, Ltd.’s annual revenue of US$ 20,926 Mn was indexed in 2019
• Recruit Holdings Co, Ltd. generated total revenue of US$ 20,401 Mn in 2018

 

Operating Income (US$ Mn):

• Recruit Holdings Co, Ltd.’s operating income for 2021 was US$ 2,759 Mn, a 127.16% increase from 2020
• The operating income generated by Recruit Holdings Co, Ltd. in 2020 was US$ 1,214 Mn
• At a 12.22% increase from , Recruit Holdings Co, Ltd.’s operating income of US$ 2,020 Mn was indexed in 2019
• Recruit Holdings Co, Ltd. generated an operating income of US$ 1,800 Mn in 2018

 

Net Income (US$ Mn):

• US$ 2,146 Mn was the net income generated by Recruit Holdings Co, Ltd. in 2021
• Recruit Holdings Co, Ltd.’s net income for 2020 was US$ 949 Mn, a -39.86% decrease from 2019
• From 2018’s net incomes, Recruit Holdings Co, Ltd. registered a 10.86% increase in 2019, amounting to US$ 1,578 Mn
• A net income of US$ 1,424 Mn was generated in 2018 by Recruit Holdings Co, Ltd.

 

Operating Margin %:

• Recruit Holdings Co, Ltd.’s operating margin for 2021 was 13%, a 79.73% increase from 2020
• The operating margin generated by Recruit Holdings Co, Ltd. in 2020 was 7%
• At a 10.23% increase from , Recruit Holdings Co, Ltd.’s operating margin of 10% was indexed in 2019
• Recruit Holdings Co, Ltd. generated an operating margin of 9% in 2018

 

Gross Margin %:

• Recruit Holdings Co, Ltd.’s gross margin for 2021 was 19%, a 2.64% increase from 2020
• The gross margin generated by Recruit Holdings Co, Ltd. in 2020 was 18%
• At a 3.33% increase from , Recruit Holdings Co, Ltd.’s gross margin of 19% was indexed in 2019
• Recruit Holdings Co, Ltd. generated a gross margin of 18% in 2018

SWOT Analysis

Strengths

Strong Performance of Media & Solutions

The improved performance of the Media & Solutions segment strengthened the company’s operations. Media & Solutions segment is one of the major contributors to the company’s revenue stream. The segment provides marketing solutions to Housing and Real Estate, Bridal, Travel, Dining, Beauty, and other industries; and HR solutions.

In FY2019, the segment accounted for 30.8% of the company’s revenue and increased 6.1% or JPY41.5 million YoY. This is due to increased revenue from the Beauty and Housing and Real Estate sub-segments and in the Recruiting in Japan sub-segment in HR Solutions. The strong performance of the Media & Solutions segment had a favorable impact on the company’s revenue, as such the company’s total revenue increased 6.3% to JPY2,310.75 billion in FY2019 from JPY2,173.38 billion in FY2018.