This document has been translated from the original document in Japanese (“ Yukashouken Houkokusho ”), which is legally
required for Recruit Holdings as a listed company in Japan to support investment decisions by providing certain information
about the Company for the fiscal year ended March 31, 2025 (“FY2024”), under Article 24, Paragraph 1 of the Financial
Instruments and Exchange Act of Japan.
The Japanese original document was filed to the Director-General of the Kanto Local Finance Bureau in Japan on June 23,
2025. Please refer to “Note Regarding Reference Translation” below as a general warning for this translation document.
Document Name
Annual Report translated from Yukashouken Houkokusho
Filing Date
June 23, 2025
Fiscal Year
FY2024 (From April 1, 2024 to March 31, 2025)
Company Name in English
Recruit Holdings Co., Ltd.
Title and Name of Representative
Hisayuki Idekoba
Representative Director, President and Chief Executive Officer
Address of Head Office
1-9-2 Marunouchi, Chiyoda-ku, Tokyo, Japan
Telephone Number
+81-3-3511-6383
Contact Person
Junichi Arai
Executive Vice President and Chief Financial Officer
Contact Location
1-9-2 Marunouchi, Chiyoda-ku, Tokyo, Japan
Definition of Abbreviations
Abbreviation
Definition
Recruit Holdings, the Holding Company
Recruit Holdings Co., Ltd. on a standalone basis
the Company, Recruit Group, We, Our
Recruit Holdings Co., Ltd. and its consolidated subsidiaries
SBU
Strategic Business Unit
BIP Trust
Board Incentive Plan Trust
Q1
Three-month period from April 1 to June 30
Q2
Three-month period from July 1 to September 30
Q3
Three-month period from October 1 to December 31
Q4
Three-month period from January 1 to March 31
FY2023
Fiscal year from April 1, 2023 to March 31, 2024
FY2024
Fiscal year from April 1, 2024 to March 31, 2025
FY2025
Fiscal year from April 1, 2025 to March 31, 2026
Definition of Adjusted EBITDA
Operating income + depreciation and amortization (excluding depreciation of right-of-use assets) + share-based payment expenses ±
other operating income/expenses
Supplementary Information
All comparisons in this report are year over year unless otherwise stated.
The names of the companies in this document are as of March 31, 2025, unless otherwise indicated.
As of April 1, 2025, HR Solutions of Matching & Solutions SBU has been transferred to HR Technology SBU and Matching & Solutions
SBU changes its name to Marketing Matching Technologies SBU in FY2025.
Average Exchange Rate During The Period
(In yen)
FY2023
FY2024
US dollar
144.59
152.62
Euro
156.75
163.88
Australian dollar
95.06
99.60
Forward-Looking Statements
This document contains forward-looking statements, which reflect the Company's assumptions, estimates and outlook for the future
based on the Company's plans and expectations as of March 31, 2025 unless the context otherwise indicates. There can be no
assurance that the relevant forward-looking statements will be achieved. Please note that significant differences between such
forward-looking statements and
actual results may arise due to various factors, many of which are outside the Company’s control,
including changes in economic conditions, changes in individual users' preferences and enterprise clients' needs, competition,
changes in the legal and regulatory environment including changes in laws and regulations or guidance, interpretation, enforcement
or practice relating to laws and regulations, fluctuations in foreign exchange rates, climate change or other changes in the natural
environment, the occurrence of large-scale natural disasters, and other factors. Accordingly, readers are cautioned against placing
undue reliance on any such forward-looking statements. The Company has no obligation to update or revise any information
contained in this document based on any subsequent developments except as required by applicable law or stock exchange rules
and regulations.
Note Regarding Reference Translation
This document has been translated from the Japanese language original for reference purposes only and may not be used or
disclosed for any other purpose without the Company’s prior written consent. In the event of any conflict or discrepancy between this
translated document and the Japanese language original, the
Japanese language original shall prevail in all respects. The Company
makes no representations regarding the accuracy or completeness of this translation and assumes no responsibility for any losses
or damages arising from the use of this translation.
Third-Party Information
This document includes information derived from or based on third-party sources, including information about the markets in which
we operate. These statements are based on statistics and other information from third-party sources as cited herein, and the
Company has not independently verified and cannot assure the accuracy or completeness of any information derived from or based
on third-party sources.
U.S. Disclaimer – Unsponsored American Depositary Receipt (“ADR”)
The Company does not support or encourage, and has not consented to, the creation of any unsponsored ADR facilities in respect
of its securities and in any event disclaims any liability in connection with an unsponsored ADR. The Company does not represent to
any depositary institution, bank or anyone nor should any such entity rely on a belief that the Web site of the Company includes all
published information in English, currently, and on an ongoing basis, required to claim an exemption under U.S.
Exchange Act Rule
12g3-2(b).
Table of contents
Company Overview
1
Key Performance Indicators
1
History
3
Business
7
Major Subsidiaries and Associates
12
Employees
14
Business Overview
17
Management Philosophy and Strategies
17
Sustainability Policy and Actions
25
Risk Factors
34
Management’s Discussion and Analysis of Financial Position, Results of Operations,
and Cash Flows
52
Material Contracts
57
Research and Development
57
Facilities
58
Overview of Capital Expenditures
58
Status of Major Facilities
58
Facility Establishment and Disposal Plans
59
Status of Shares, Acquisition of Treasury Stock and Dividend Policy
60
Status of Shares
60
Status of Acquisition of Treasury Stock
77
Basic Policy on Profit Distribution and Dividends
79
Corporate Governance
80
Corporate Governance Overview
80
Leadership
100
Status of Audits
119
Compensation
124
Stocks Held by the Company
130
Financial Information
134
Consolidated Financial Statements and Notes
135
Non-consolidated Financial Statements and Notes
186
Other Information
201
Outline of Share-related Administration of the Company
201
Information on the Parent Company of the Holding Company
202
Other Reference Information
202
Information on the Guarantor of the Holding Company
206
Independent Auditor’s Reports
207
Company Overview
Key Performance Indicators
The Company - Consolidated Basis
(In millions of yen, unless otherwise stated)
Fiscal year
IFRS
FY2020
FY2021
FY2022
FY2023
FY2024
Fiscal year end
March 2021
March 2022
March 2023
March 2024
March 2025
Revenue
2,269,346
2,871,705
3,429,519
3,416,492
3,557,478
Profit before tax
168,502
382,749
367,767
426,241
527,143
Profit for the year
131,690
297,722
271,671
354,596
408,159
Profit attributable to owners of the
parent
131,393
296,833
269,799
353,654
408,504
Comprehensive income attributable
to owners of the parent
208,633
395,869
377,977
553,909
383,161
Equity attributable to owners of the
parent
1,091,571
1,363,776
1,627,010
2,000,922
1,617,582
Total assets
2,196,613
2,423,542
2,793,281
3,144,646
2,772,252
Equity attributable to owners of the
parent per share (Yen)
667.96
847.45
1,030.33
1,295.40
1,102.86
Basic earnings per share (Yen)
79.83
181.68
168.59
225.99
271.44
Diluted earnings per share (Yen)
79.70
180.83
167.44
222.90
268.32
Ratio of equity attributable to
owners of the parent (%)
49.7
56.3
58.2
63.6
58.3
Return on equity attributable to
owners of the parent (%)
12.6
24.2
18.0
19.5
22.6
Price earnings ratio (Times)
67.7
29.8
21.6
29.7
28.2
Cash flows from operating activities
286,597
439,610
438,193
535,362
610 , 363
Cash flows from investing activities
(40,373)
(70,738)
(32,676)
(68,789)
(61,054)
Cash flows from financing activities
(172,713)
(254,371)
(252,060)
(334,648)
(880,480)
Cash and cash equivalents at the
end of the year
501,043
669,551
877,370
1,136,858
808,625
Number of employees
2
46,800
51,757
58,493
51,373
49,480
Average number of contract
employees
1,720
1,896
1,915
1,952
1,591
1
The consolidated financial statements have been prepared based on IFRS as issued by the International Accounting Standards Board.
2 The number of employees excludes contract employees.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 1
The Holding Company - Standalone Basis
(In millions of yen, unless otherwise stated)
Fiscal year
FY2020
FY2021
FY2022
FY2023
FY2024
Fiscal year end
March 2021
March 2022
March 2023
March 2024
March 2025
Operating revenue
27,324
42,029
417,404
153,932
615,773
Ordinary income
19,574
33,978
406,315
139,488
603,655
Net income
14,063
23,996
410,423
126,116
604,616
Common stock
40,000
40,000
40,000
40,000
40,000
Total number of shares
issued (Shares)
1,695,960,030
1,695,960,030
1,695,960,030
1,649,841,949
1,563,912,149
Equity
805,322
672,979
926,772
879,782
693,373
Total assets
1,372,520
1,423,107
1,666,307
1,768,645
1,654,348
Equity per share (Yen)
491.99
417.09
585.40
567.58
470.02
Dividend per share (Yen)
20
21
22
23
24
Interim dividend per share
(Yen)
9.5
10.5
11.0
11.5
12.0
Earnings per share (Yen)
8.54
14.69
256.47
80.59
401.76
Diluted earnings per share
(Yen)
8.53
14.62
254.72
79.49
397.13
Capital adequacy ratio (%)
58.6
47.2
55.5
49.6
41.7
Return on equity (%)
1.7
3.3
51.4
14.0
77.2
Price earnings ratio (Times)
632.1
368.6
14.2
83.2
19.1
Payout ratio (%)
234.1
143.0
8.6
28.5
6.0
Number of employees
1
138
136
128
119
116
Average number of contract
employees
4
5
5
5
5
Total shareholder return (%)
193.9
195.1
132.8
243.0
277.8
Comparative indicator:
TOPIX total return index (%)
142.1
145.0
153.4
216.8
213.4
Highest share price (Yen)
2
5,568
8,180
5,676
6,767
11,895
Lowest share price (Yen)
2
2,240.5
4,435
3,284
3,583
6,011
1 The number of employees excludes contract employees.
2 The highest and lowest share prices are those quoted on the First Section of the Tokyo Stock Exchange before April 3, 2022, and on
the Prime Market of the Tokyo Stock Exchange after April 4, 2022.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 2
History
March 1960
Foundation. Started as an advertising agency specializing in job ads in university newspapers.
1962
Published Invitation to Companies which consolidated recruitment information for university
students and established the two-sided marketplace business model.
August 1963
Japan Recruit Center, Inc. was established, a predecessor to today’s Recruit Holdings Co., Ltd.
1968
Introduced the IBM 1130 Computing System, becoming the first company in Japan to use this
groundbreaking computer.
1971
Established Recruit Computer Print, a company specializing in digitized pre-production
processes focused on adopting leading-edge publishing technologies.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 3
Organizational
Transitions
The Company was founded in March 1960 in Minato-ku, Tokyo, Japan as the University Newspaper
Advertising Company, publishing job advertisements in university newspapers. Following that, we
began handling advertising for multiple university newspapers, and in October 1960, we established the
University Advertising Co., Ltd. as a corporate organization. In 1962, we launched our publication
Invitation to Companies
, and in April 1963 changed the company name to the Japan Recruitment
Center, Inc. In August 1963, the company name was further updated to Japan Recruit Center, Inc, a
predecessor to today’s Recruit Holdings, Co., Ltd. Please refer to the timeline below for further
information regarding organizational transitions.
Business Fields
Expansion
Recruit Group was established in 1960 as a job search magazine for university students. In 1962, we
developed the “Ribbon Model,” our guiding business model in which we create platforms that connect
business clients with individual users. With this model, we have since widened our range of HR
businesses to meet mid-career recruiting, placement, and staffing needs.
We have also expanded into
the life events and lifestyle fields to serve the housing, automobile, bridal, travel, dining, and beauty
industries. Recently, we have introduced software as a service (“SaaS”) business tools to support
operations within small and medium-sized enterprises (“SMEs”), such as retailers and restaurants.
Digital
Transformation
The Company began using computers at a time when their use was still limited, putting digitization into
practice for increased efficiency. Following the introduction of a supercomputer in the 1980s, we
transitioned from paper magazines to online media in the 1990s, and then to mobile platforms. Not only
did this allow for faster and more convenient delivery
of information, but it also transformed how
individual users and business clients interact, through the development of groundbreaking tools such as
online reservation systems andSaaS solutions.
Globalization
In the 2000s, the Company entered the global market with a bridal business in China. Although this
ended with a withdrawal, this experience helped us to shape our mergers and acquisitions (“M&A”)
strategy, and later succeeded in expanding our staffing businesses to the US, Europe, Australia and
beyond. Further, the acquisitions of Indeed, Inc.
1 in 2012
and Glassdoor LLC
1 in 2018 have led to the
successful establishment of our HR Technology SBU, spearheading the growth of the Company as a
whole and bringing the number of countries and regions we serve to over 60.
Evolution of
Matching Platforms
The Company has transformed its business from a traditional advertising-based media model into a
technology-driven two-sided marketplace business model, which facilitates the best possible matches
for the mutual benefit of both individual users and business clients. Through HR Technology and
Staffing, the Company aims to streamline hiring processes under the Simplify Hiring strategy. In
Marketing Matching Technologies,
under the Help Businesses Work Smarter strategy, the Company
builds an ecosystem that supports the operations of corporate clients through matching platforms and
SaaS solutions, aiming to enhance their productivity and profitability. In recent years, the Company has
improved matching efficiency, providing better matching outcomes for individual users and improving
operational efficiencies for business clients with AI developed based on the expertise cultivated within
the Recruit Group.
1976
Launched operations in the housing information industry in response to the oil crisis induced
recession, and achieved rapid growth.
1980
Launched Travail, Japan’s first career change magazine for women, published 5 years prior to
Japan’s legislative enactment of The Equal Employment Opportunity Law.
April 1984
Changed the company name to Recruit Co., Ltd.
1984
Launched the magazine Car Sensor. It was born from a training program for new employees and
focused on the used car market.
1985
Against the backdrop of the privatization of Japan’s telecommunications industry, launched
Information Network Service operations and Remote Computing Service operations.
1985
Established Recruit U.S.A. Inc. to support Japanese companies with local hiring in the US.
1987
Established the Supercomputer Research Institute, aimed at developing insights into how to
meet the challenges and opportunities of the approaching era of a data-driven society.
1990
Launched Jalan, a magazine about travel and leisure optimized for easier booking.
1993
Launched Zexy, a bridal information magazine born from our new internal business proposal
system, “Ring.”
1995
Launched Mix Juice (Currently
2 ISIZE) marking the start of our online media business.
1996
Digitized our job information magazines and launched RB on the NET (Currently
2 Rikunabi) and
Digital B-ing (Currently
2 Rikunabi Next).
2000
While the Company expanded its businesses in the field of life events such as housing and
bridal, it also launched lifestyle information magazine HotPepper (Currently
2 Hot Pepper
Gourmet) which contains dining guides and coupons.
2000
Launched ISIZE Travel (Currently
2 Jalan net), a platform for making accommodation
reservations online.
2004
Launched the bridal information magazine Zexy in China. This experience helped the Company
shape M&A strategy for global expansion.
2007
Launched Hot Pepper Beauty, an online beauty salon appointment reservation service.
January 2008
Moved the headquarters to Gran Tokyo SOUTH TOWER (Marunouchi 1-9-2, Chiyoda-ku, Tokyo,
Japan)
July 2010
Acquired US-based staffing company, The CSI Companies, Inc.
1 and implemented our Unit
Management System. With this acquisition, we began M&A-driven global expansion.
2011
Launched Juken Sapuri (Currently
2 Study Sapuri), an online learning service for college
entrance exams, then expanded into languages and other subjects, successfully growing into an
affordable high-quality online learning platform.
2011
Acquired Staffmark Group, LLC
1 in October, Advantage Resourcing Europe B.V. (Currently
2 RGF
Staffing UK Limited)
1 in December and expanded our staffing business in the US and Europe.
2012
Developed SALON BOARD, a cloud-based online reservation management system that
improves operational efficiency at beauty salons through digitization, replacing paper-based
reservation books.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 4
October 2012
Through an incorporation-type split the Company became a holding company, Recruit Holdings
Co., Ltd., and established the following companies:
- Recruit Sumai Company Ltd.
- Recruit Marketing Partners Co., Ltd.
- Recruit Lifestyle Co., Ltd.
- Recruit Technologies Co., Ltd.
Through a joint incorporation-type split by Recruit Office Support Co., Ltd.
1 newly established:
- Recruit Administration Co., Ltd. (Currently
2 Recruit Co., Ltd.)
1
Through an absorption-type split, transferred businesses to the following 100% subsidiaries of
the Company:
- Recruit Career Co., Ltd.(Former Recruit Agent Co., Ltd.)
- Recruit Jobs Co., Ltd.(Former Recruit HR Marketing)
- Recruit Communications Co., Ltd.(Former Recruit Media
Communications Co., Ltd. )
October 2012
Acquired Indeed, Inc.
1 (founded in 2004), a job search engine based in the US. This marked our
full entry into the HR technology business, which has since revolutionized the HR industry
through disruptive digital innovation.
2013
Released AirREGI, a point of sale (POS) system for SMEs of various industries such as retailers
and restaurants, using smartphones and tablets to enhance operational efficiency of their
businesses.
October 2014
Listed publicly on the First Section of the Tokyo Stock Exchange.
2015
Expanded AirREGI’s functions and also launched AirPAY, a payment system service that
accepts various payment methods including credit cards, electronic money, and QR Codes
3
.
2015
Established Recruit Institute of Technology (Currently
2 Megagon Labs) to work with external
organizations on research and development of AI, machine learning, and other new
technologies.
2015
Acquired the staffing companies Peoplebank Australia Ltd
1 in January and Chandler Macleod
Group Limited
1 in April, companies with leading market positions and strong business
fundamentals in the Australian market.
2016
Launched Indeed Hire, an innovative recruitment service that goes beyond the job
advertisement business.
June 2016
Acquired USG People Holdings B.V. (Currently
2 RGF Staffing B.V.)
1
, a leading European staffing
company with a presence in the Netherlands, France, Germany, and Belgium among other
countries, marking our full entry into Europe.
April 2018
Reorganized the Company and established a managing company for each SBU that oversees
the operation of its subsidiary companies:
- HR Technology SBU: RGF OHR USA, Inc.
1
- Matching & Solutions SBU: Recruit Co., Ltd.
1, 4
(Former Recruit Administration)
- Staffing SBU: Recruit Global Staffing B.V.
(Currently
2 RGF Staffing B.V.)
1
2018
Launched AirSHIFT, a system for the management of shift work using a SaaS solution, thereby
contributing to operational efficiency in the service industry where labor shortages are a major
problem.
June 2018
Acquired Glassdoor, Inc.(Currently
2 Glassdoor LLC)
1
, a leading online job and company
information site founded in the US in 2007. Glassdoor has developed a database of information
and reviews posted by users, bringing transparency to the job seeking process and
strengthening our HR Technology business.
2018
Launched Indeed Assessments, a platform that helps employers automate the screening
process so they can quickly find candidates with the skills they need.
2020
Launched Indeed Interview, a video interviewing platform designed specifically for interviewing
and hiring, which was created to allow employers to quickly adapt to virtual hiring needs during
the pandemic so job seekers could interview safely from the convenience of their homes.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 5
2021
Launched Indeed Hiring Platform, a new solution that allows employers to manage the hiring
process – from posting through interview – directly on Indeed, with no additional software. Job
seekers who meet an employers’ objective job criteria can automatically advance to an interview.
April 2021
The following mergers were carried out in the Matching & Solutions business.
Integration of seven core operating companies and functional companies into Recruit Co., Ltd.,
SBU Headquarters.
- Recruit Sumai Company Ltd.
- Recruit Lifestyle Co., Ltd.
- Recruit Marketing Partners Co., Ltd.
- Recruit Career Co., Ltd.
- Recruit Jobs Co., Ltd.
- Recruit Communications Co., Ltd.
- Recruit Technologies Co., Ltd.
2021
Launched AirWALLET with COIN+ compatibility, the free and easy-to-use digital account
management and payment application that allows users to seamlessly manage, charge, transfer,
and withdraw money with COIN+.
2021
Launched AirWORK Applicant Tracking System (ATS), a hiring management system that allows
users to create hiring websites and duplicate to Indeed for free.
2021
Announced our sustainability goals in environmental, social, and governance, aiming to achieve
them by FY2030. We aim to create a positive impact on society and the environment through all
our corporate activities.
2022
Launched AirCASH, a financial service that allows businesses to cash out future sales.
2022
Launched AirINVOICE, an invoice management service that enables users to make payments
from their smartphones.
April 2022
In accordance with the Tokyo Stock Exchange's market-segment restructuring, Recruit Holdings’
stock was transferred from the First Section to the Prime Market.
July 2022
Changed the registered location of the head office to Gran Tokyo SOUTH TOWER (Marunouchi
1-9-2, Chiyoda-ku, Tokyo, Japan)
2023
Launched AirWORK Payroll, a service that handles monthly payroll transfers.
2023
Launched Indeed Skill Connect, a new product that advances skills-first hiring by helping job
seekers better promote their skills and completed training programs to potential employers.
2023
Launched RGF Connect, RGF Staffing's global social program that supports underserved people
with education, training, and employment opportunities.
2023
Launched Glassdoor Community to drive real-time workplace conversations.
2024
Launched “Indeed PLUS” in Japan, a platform that automatically distributes job postings based
on their job description to the job boards linked to Indeed PLUS that are judged to be the most
appropriate.
2024
Launched Indeed Smart Sourcing, a product suite for employers that features AI-powered
candidate suggestions, resume search, and automated candidate messaging.
2025
Introduced a digital wage payment service, available to companies using AirWORK Payroll,
allowing employees to receive instant wage payments via AirWALLET with Coin+ compatibility.
1 Consolidated subsidiaries as of March 31, 2025.
2 “Currently” in the chart above shows the name as of March 31, 2025.
3 “QR Code” is a registered trademark of DENSO WAVE INCORPORATED.
4 On April 1, 2025, Matching & Solutions SBU’s HR Solutions business was transferred to HR Technology SBU, and Matching &
Solutions was renamed Marketing Matching Technologies from FY2025.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 6
Business
The Company started in 1960 as a business providing job information to students by placing job advertisements for its clients in
university newspapers in Japan. Since then, the Company has consistently created and operated matching platform businesses
connecting individual users and business clients.
Currently, the Company provides individual users around the world the best possible choices and supports business clients in
improving their operational efficiency by utilizing technology and data, all enabling simpler and faster matching.
In the course of connecting individual users and business clients, the Company positions data security and privacy, including the
protection of individual users’ privacy, as a material foundation for its corporate activities, and has established appropriate structures
and measures to support that position.
The Company operates its businesses through each of its three Strategic Business Units (“SBU”s): HR Technology, Matching &
Solutions and Staffing. The Company has established respective SBU Headquarters in order to further reinforce global, swift decision
making. This organizational structure enhances the management capabilities of each SBU Headquarters and enables each SBU
Headquarters to execute its own strategy. At the same time, each SBU collaborates closely to achieve the Company’s three strategic
pillars: Simplify Hiring, Help Businesses Work Smarter, and Prosper Together. The SBU structure also enables the Holding Company
to focus on and strengthen its holding company functions, including strategic planning and execution as well as group governance and
monitoring. Through these positive aspects of the SBU structure, the Company aims to increase its enterprise value.
As of March 31, 2025, the Company had 223 subsidiaries and 8 associates.
As of April 1, 2025, HR Solutions of Matching & Solutions SBU has been transferred to HR Technology SBU and Matching & Solutions
SBU will change its name to Marketing Matching Technologies SBU in FY2025. Statements below are based on the information as of
March 31, 2025 before the organization change unless otherwise stated. Brands and services of each SBU are listed based on
information as of April 1, 2025 in addition to information as of March 31, 2025.
Business Overview by Segment
HR Technology
HR Technology consists of Indeed, Glassdoor, and other related businesses.
Indeed and Glassdoor are online matching and hiring platforms where people can find jobs and learn about companies. Both Indeed
and Glassdoor have missions that are aligned towards achieving success for job seekers - Indeed’s mission is to help people get jobs
and Glassdoor’s mission is to make worklife better, together.
Indeed created the job aggregation and search model and is now transforming into a global two-sided talent marketplace. In doing so,
Indeed has become the leading job site in the world
1
, with over 610 million job seeker profiles
2 and 3.3 million employers
3 using Indeed
to hire in the last year.
Glassdoor has reshaped the way people search for and evaluate jobs and companies while building a community for workplace
conversations, increasing workplace transparency for job seekers by bringing together jobs with user-generated employer
reviews,
conversations, salaries and insights. As a result, Glassdoor has become the recognized leader on insights about jobs and companies,
with over 210 million user profiles.
4
Indeed and Glassdoor offer a suite of tools to help job seekers find and apply to available job opportunities, create profiles, post
resumes, research company information and reviews, and schedule and conduct video and phone interviews. For employers, Indeed
and Glassdoor offer solutions to recruit and hire qualified talent in an easier and more efficient way. Employers can post and advertise
jobs, access candidate profiles and build their company’s employment brand across both platforms, reaching a broad and diverse job
seeker audience.
Together, Indeed and Glassdoor provide an efficient source of candidates through AI based matching, pay-for-performance and
subscription pricing models, and a range of products for employers to source, screen, interact with, and interview candidates. As a
result, Indeed and Glassdoor partner to create a global two-sided talent marketplace where job seekers find jobs and employers find
great talent.
In Japan, the Company has expanded the job seeker audience further through
Indeed PLUS, a job distribution platform which connects
a network of Applicant Tracking Systems (“ATS”) and job boards, including Recruit’s Rikunabi NEXT and TOWNWORK as well as other
Recruit and third party sites.
1 Source: comScore, Total Visits, March 2025
2 Internal data, cumulative number of verified job seeker accounts on Indeed through March 31, 2025, worldwide. Job seeker accounts
that have a unique, verified email address
3 Internal data, based on the last 12 months of activity as of March 2025, worldwide
4 Internal data, cumulative number of Glassdoor registered users for which a profile or resume is available through March 31, 2025,
worldwide
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 7
Brands
Services
Indeed
Online matching and hiring platform
Indeed PLUS
Job distribution platform
Glassdoor
Online matching and hiring platform
(As of April 1, 2025)
Brands
Services
Indeed
Online matching and hiring platform
Indeed PLUS
Job distribution platform
Glassdoor
Online matching and hiring platform
Rikunabi
Online matching platform for new graduates
RECRUIT AGENT
Employment placement service for professionals
RECRUIT DIRECT SCOUT
Talent sourcing service for professionals
Matching & Solutions
Matching & Solutions consists of two businesses mainly in Japan, HR Solutions and Marketing Solutions. HR Solutions helps individual
users find jobs and helps business clients’ hiring activities across a variety of industries. Marketing Solutions offers vertical -specific
matching platforms which connect individual users and business clients, and cloud-based Software as a Service (“SaaS”) solutions.
Through these matching platforms and SaaS solutions, Matching & Solutions aims to create an “ecosystem” of solutions that support
the operations of businesses in Japan to help improve their productivity and profitability.
HR Solutions
HR Solutions supports business clients’ recruiting and hiring activities and individual users’ job search activities through its job
advertising services and placement services. The services include online matching platforms (including job boards of Rikunabi
for new graduates, Rikunabi NEXT for mid-career job seekers, and TOWNWORK for part-time job seekers), and placement
services including Recruit Agent and RECRUIT DIRECT SCOUT. All job boards in HR Solutions except for Rikunabi are
linked to Indeed PLUS of HR Technology, which can reach up to 70% of users
1 at the major job boards in Japan.
Marketing Solutions
Marketing Solutions consists of in the total of each of Beauty, Travel, Dining, and SaaS solutions as lifestyle, Housing & Real
Estate and Others which includes other services in Marketing Solutions. The matching platforms for each industry include:
SUUMO for Housing & Real Estate, Hot Pepper Beauty for Beauty, Jalan for Travel, Hot Pepper Gourmet for Dining, and Zexy
for Bridal, among others. Most matching platforms generate revenue primarily from advertising while Travel and other services
generate revenue from transactions. The pricing models vary according to the commercial practices and characteristics of
each industry
and are continuously updated to ensure they are optimally aligned with the operations of the Company’s
business clients in order to maintain long-term relationships with its business clients and maximize the lifetime value (“LTV”)
per client.
Marketing Solutions provides 16 Air BusinessTools, such as AirPAY, a cloud-based payment service, AirREGI, a point of sale
(POS) system, and AirWORK ATS, a centralized application management service as well as other SaaS solutions specialized
for industries where Matching & Solutions operates matching platforms. The current priority is to increase the number of SaaS
accounts.
1 Values, Inc. Market Share Survey, June 2024 (Percentage of users who use Indeed, Townwork, Travail, Hatalike, From A
Navi, Rikunabi NEXT, and Rikunabi Haken among people who use major job sites in Japan at least two days a year. The data
was compiled using approximately 60 competing job sites, excluding recruiting and other services, and without taking into
account overlap between PCs and smartphones)
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 8
Brands
Services
HR
Solutions
Rikunabi
Online matching platform for new graduates
Rikunabi NEXT
Online matching platform for mid-career job seekers
RECRUIT AGENT
Employment placement service for professionals
RECRUIT DIRECT SCOUT
Talent sourcing service for professionals
TOWNWORK
Online matching platform for part-time and full-time job seekers
Marketing
Solutions
SUUMO
Online platform and in-person consultation service for housing and real estate
Hot Pepper Beauty
Online platform for beauty treatment
Jalan
Online platform for travel in Japan
Hot Pepper Gourmet
Online platform for dining
Air BusinessTools
Cloud-based operational and management support solutions for business
clients across an expanding variety of businesses
(As of April 1, 2025)
Brands
Services
SUUMO
Online platform and in-person consultation service for housing and real estate
Hot Pepper Beauty
Online platform for beauty treatment
Jalan
Online platform for travel in Japan
Hot Pepper Gourmet
Online platform media for dining
Air BusinessTools
Cloud-based operational and management support solutions for business clients across an expanding
variety of businesses
Staffing
Staffing consists of two major operations: Japan and Europe, US, and Australia . Staffing offers temporary staffing and other related
services primarily for clerical, manufacturing, light industry and various professional positions across a multitude of industries. The
Company selects appropriate temporary staff, based on the skills needed by clients, from a large pool of workers registered
with the
Company, and then provides those temporary staff to business clients.
Both Japan and Europe, US, and Australia operations implement the Unit Management System, which divides an organization into
smaller units based on differences in the markets they serve. Each unit is regarded as a distinct company, and the Unit Manager is
given authority to make decisions to maximize each unit’s profitability.
BRANDS
SERVICES
Japan
Recruit Staffing
Staffing services in Japan
STAFF SERVICE GROUP
Europe, US,
and Australia
Europe: Start People, Unique, USG Professionals,
Secretary Plus, Bright Plus, Solvus, Certain Advantage
US: Staffmark, CSI Companies
Australia: Chandler Macleod, Peoplebank
Staffing services mainly
in Europe, US, and Australia
Since Recruit Holdings falls under the category of Specified Listed Company under the insider trading regulations, the criteria for
determining the insignificance of material facts relative to the size of the Company with respect to insider trading regulations are decided
based on the figures on a consolidated basis.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 9
Operational Chart
FY2024
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 10
FY2025
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 11
Major Subsidiaries and Associates
Consolidated subsidiaries
Name
Address
Capital stock
or capital
Description of
major
operations
1
Ratio of voting
rights held (%)
Relationship
RGF OHR USA, INC.
3
Delaware,
United States
10 US dollar
HR
Technology
100.0
Concurrent directorships
Receipt of dividends
Indeed, Inc.
5
Delaware,
United States
10 US dollar
HR
Technology
100.0
(100.0)
Concurrent directorships
Obligation guarantee
Glassdoor LLC.
Delaware,
United States
1,292,440
thousand US
dollar
HR
Technology
100.0
(100.0)
Concurrent directorships
Recruit Co., Ltd.
3, 5
Chiyoda-ku, Tokyo,
Japan
350 million yen
Matching &
Solutions
100.0
Concurrent directorships
Borrowing of funds
Receipt of royalties
RGF Staffing B.V.
3
Flevoland,
Netherlands
1.50 euro
Staffing
100.0
Concurrent directorships
Receipt of dividends
Recruit Staffing Co., Ltd.
Chiyoda-ku, Tokyo,
Japan
300 million yen
Staffing
100.0
(100.0)
Concurrent directorships
Borrowing of funds
Receipt of royalties
Staff Service Holdings CO.,
LTD.
Chiyoda-ku, Tokyo,
Japan
500 million yen
Staffing
100.0
(100.0)
Concurrent directorships
Borrowing of funds
RGF Staffing France SAS
3
Moselle,
France
26,395 thousand
euro
Staffing
100.0
(100.0)
Concurrent directorships
RGF Staffing Germany
GmbH
Bayern,
Germany
500 thousand
euro
Staffing
100.0
(100.0)
Concurrent directorships
RGF Staffing the
Netherlands B.V.
Flevoland,
Netherlands
1 thousand euro
Staffing
100.0
(100.0)
Concurrent directorships
RGF Staffing UK Limited
London,
United Kingdom
100 GBP
Staffing
100.0
(100.0)
Concurrent directorships
Unique NV
3
Antwerp,
Belgium
50,082 thousand
euro
Staffing
100.0
(100.0)
Concurrent directorships
Staffmark Group, LLC
3
Ohio,
United States
117,514 thousand
US
dollar
Staffing
100.0
(100.0)
Concurrent directorships
The CSI Companies, Inc.
Florida,
United States
2.00 US dollar
Staffing
100.0
(100.0)
Concurrent directorships
Chandler Macleod Group
Limited
3
New South Wales,
Australia
191,490
thousand
Australian dollar
Staffing
100.0
(100.0)
Concurrent directorships
Peoplebank Hong Kong Ltd.
Sheung Wan,
Hong Kong
12 thousand HKD
Staffing
100.0
(100.0)
Concurrent directorships
RGF TREASURY
SERVICES LIMITED
3
Dublin,
Ireland
3.30 US dollar
Company-
wide
100.0
Concurrent directorships
Borrowing of funds
Receipt of dividends
RGF International
Recruitment Holdings
Limited
3
Hong Kong,
China
836,224
thousand HKD
Matching &
Solutions
100.0
(100.0)
-
RYK Capital Partners
Limited
3
Hong Kong,
China
324,256
thousand HKD
Matching &
Solutions
90.0
(90.0)
-
Staff Service Co., Ltd.
5
Chiyoda-ku, Tokyo,
Japan
300 million yen
Staffing
100.0
(100.0)
-
Staffmark Investment, LLC
3
Ohio,
United States
117,514 thousand
US dollar
Staffing
100.0
(100.0)
-
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 12
Name
Address
Capital stock
or capital
Description of
major
operations
1
Ratio of voting
rights held (%)
Relationship
Peoplebank Australia Ltd
3
New South
Wales,
Australia
68,160 thousand
Australian dollar
Staffing
100.0
(100.0)
-
RGF STAFFING ANZ PTY
LTD
3
New South
Wales,
Australia
440,756
thousand
Australian dollar
Staffing
100.0
(100.0)
Concurrent directorships
RGF STAFFING
MELBOURNE TWO
PTY LTD
3
New South
Wales,
Australia
294,892
thousand
Australian dollar
Staffing
100.0
(100.0)
Concurrent directorships
199 other companies
4
Equity-method Associates
Name
Address
Capital stock
or capital
Description of
major operations
1
Ratio of voting
rights held (%)
Relationship
51job, Inc.
6
Cayman Islands,
British Overseas
Territory
31 thousand
RMB
Company-wide
25.1
Concurrent directorships
7 other companies
1 Segment names are shown in the “Description of major operations” section.
2 The percentages in parentheses in the “Ratio of voting rights held” section are indirect ownership of voting rights.
3 Specified subsidiary as defined by the Companies Act of Japan
4 There are no subsidiaries or associates with significant excess liabilities. For subsidiaries and associates that have borrowings, etc. within
Recruit Group, the Company uses the net asset amount after deducting such borrowings to assess whether there are any excess
liabilities that have a significant impact.
5 Revenue (excluding intercompany revenues among consolidated companies) from Indeed,
Inc., Recruit Co., Ltd. and Staff Service Co.,
Ltd. each accounts for over 10% of the consolidated revenue. Because all of the following values are non-consolidated financial results,
these do not include goodwill, intangible assets, and amortization of intangible assets related to the Company’s acquisition of each entity.
6 The Company’s ownership ratio of the issued shares of 51job, Inc. is 39.9%.
Company name
Major Profit (loss) items
Indeed, Inc.
(In millions of US dollar)
Recruit Co., Ltd. (JGAAP)
(In millions of yen)
Staff Service Co., Ltd.
(JGAAP)
(In millions of yen)
Revenue
5,416
759,266
378,156
Ordinary income
-
95,859
23,064
Profit for the year
1,096
57,191
16,944
Total equity
1,122
115,536
26,970
Total assets
2,413
597,085
74,247
Ordinary income for Indeed, Inc. is not stated since the information above is based on IFRS as in “Consolidated Financial Statements”
of the “Financial Information” section.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 13
Employees
The Company including Its Consolidated Subsidiaries
As of March 31, 2025
Segment
Number of employees
Number of contract employees
HR Technology
11,860
42
Matching & Solutions
24,000
452
Staffing
13,496
1,092
Holding Company corporate function
124
5
Total
49,480
1,591
1 The employees include employees that have been assigned to the Company from companies outside the Company and excludes
employees that have been assigned to companies outside the Company. It also excludes that of contract employees.
2 Contract employees represent the average number of contract employees during FY2024.
3 Contract employees include part-time employees and exclude temporary staff.
4 “Holding Company corporate function” represents employees in corporate functions of the Holding Company such as finance and risk
management.
The Holding Company excluding Its Consolidated Subsidiaries
As of March 31, 2025
Number of employees
Number of contract
employees
Average age
Average length of
service (years)
Average annual salary
(yen)
116
5
40.5
8.5
11,453,407
Segment
Number of employees
Number of contract employees
HR Technology
-
-
Matching & Solutions
-
-
Staffing
1
-
Holding Company corporate function
115
5
Total
116
5
1 The employees include employees that have been assigned to the Holding Company and excludes employees from its subsidiaries.
These employees are excluded from the original subsidiary’s count and the count for the number of contract employees.
2 Contract employees represent the average number of contract employees during FY2024.
3 Contract employees include part-time employees and exclude temporary staff.
4 “Holding Company corporate function” represents employees in corporate functions of the Holding Company such as finance and risk
management.
Labor Unions
No labor union has been formed at the Holding Company,
but management and employees have built a strong relationship and no
special labor matters are noted.
Demographics
Since its founding, the Company has valued the individuality of each employee. Betting on their passion and ideas fueled by their
curiosity has long been the Company’s competitive advantage—which has led to the creation of new businesses and services across
the Group. Moreover, the Company has established a human rights policy to ensure that no discrimination or human rights violations are
committed in its corporate activities. The Company aspires to provide fair opportunities for all individuals and respect their unique life-
and work-styles. Please refer to “Sustainability Policy and Actions” in “Business Overview” for more information on the Company’s
approach and efforts towards human capital and human rights.
Under these policies, the Company strives to create a work environment that is supportive, accommodating and fulfilling for all
employees, regardless of personal attributes or employment-related constraints. In May 2021, the Company reaffirmed the importance
of creating an environment where all employees are motivated to contribute and grow, making this a key management priority. Since
then, the Company has
set its policy to pursue gender parity and implemented related initiatives. For updates on the Company’s
progress, please refer to “Prosper Together - Seek sustainable growth shared by all stakeholders” in “Management Philosophy and
Strategies”.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 14
Recruit Group’s Progress in Women’s Representation Across All Levels
(as of the beginning of each Fiscal Year)
As of April 1, 2025, the percentage of women across all levels—i.e., among overall employees, managers, and senior executives—at
Recruit Group
1 is as follows:
Company
Employees
2
Managers
3
Senior Executives
4
Recruit Group
1
50.3
45.8
27.5
1 For Recruit Group, we have aggregated data from the Holding Company, the SBU Headquarters and major consolidated subsidiaries,
both domestic and overseas, under each SBU. This includes the two newly established entities that, as of April 1, 2025, assumed part
of the workforce of our major consolidated subsidiary Recruit Co., Ltd. The definition of “Managers” and
“Senior Executives” is as
outlined in table footnotes 3 and 4 respectively, and differs from that of “Managers” (total of workers in managerial positions such as
section manager or higher, excluding executives) in the Ministerial Order on the Plan of Action for General Employers under the Act on
the Promotion of Women's Active Engagement in Professional Life (hereinafter referred to as “Women’s Active Engagement Act”).
2 “Employees” includes seconded employees that have been assigned to Recruit Group and excludes employees that have been
assigned to companies outside Recruit Group. The figure primarily reflects permanent employees on indefinite-term contracts;
however, due to differences in employment classification across group companies, some fixed-term contracts or other non-permanent
employment types may be included. The impact on the percentage of women is minimal.
3 The definition of “managers” is based on each company’s classification system and refers to all employees who have subordinates,
including senior executives under service agreements. In May 2024, Indeed, Inc. and certain subsidiaries within the HR Technology
segment that share the same HR framework revised spans of control and management layers to accelerate and simplify decision
making. In the process, the definition of managers was changed to one based on job roles.
Consequently, some employees mainly in
R&D roles were reclassified from managerial to non-managerial. The figures representing the percentage of women in managerial
positions as of April 1, 2024 and earlier are thus based on the definition prior to the revision. The percentage as of April 1, 2025 is
calculated based on the revised definition, showing an increase compared to the percentage under the previous definition (39.9%).
4 “Senior Executives” is defined as Senior Vice Presidents and Corporate Professional Officers of Recruit Holdings and Marketing
Matching Technologies Strategic Business Unit (SBU), and CEOs of the Company's major subsidiaries and heads of key functions in
the HR Technology and Staffing SBUs.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 15
The ratio of women in managerial positions, percentage of men taking childcare leave and gender pay gap in the Holding Company
1 are
as follows:
Name
Ratio of women in
managerial
positions
2
Percentage of men
taking childcare
leave
3, 4
Gender Pay Gap
3, 5
All Employees
Permanent
Employees
6
Part-time and
Fixed-term
Employees, etc.
7
Recruit Holdings
47.6
100.0
82.0
82.8
161.7
1 While the Company bears no legal disclosure obligation under the Women’s Active Engagement Act and the Act on Childcare Leave,
Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (hereinafter referred to
as “Childcare and Caregiver Leave Act”), we voluntarily disclose this information for reference purposes.
2 Managerial positions refer to all employees who have subordinates, excluding senior executives under service
agreements, as of Apr
1, 2025. It has been calculated in accordance with the Women’s Active Engagement Act, including seconded employees that have
been assigned to the Holding Company and excluding employees that have been assigned to companies outside the Holding
Company.
3 The majority of the Holding Company’s workforce consists of seconded employees from Recruit Co., Ltd., whose remuneration is
determined based on our established mission grades and criteria. Given these employment and compensation determination
circumstances, the calculation provided includes incoming seconded employees assigned to the Holding Company and excludes
outgoing seconded employees assigned to other companies. It, therefore, includes incoming seconded employees among those
registered in Recruit Co., Ltd.’s roster of workers (hereinafter referred to as “original workers”) for which its calculation is later provided.
If calculated for the Company’s original employees, the resulting values would differ.
4 We have calculated the percentage of men taking childcare leave, etc. as referred to in Article 71-6, item (ii) of the Ordinance for
Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children
or
Other Family Members (hereinafter referred to as “Ordinance for Enforcement of the Childcare and Caregiver Leave Act”), pursuant to
the provisions of the Childcare and Caregiver Leave Act in the current consolidated fiscal year. Childcare leave, etc. includes both
taking childcare leave prescribed by law and benefiting from leave systems, etc. for childbirth and childcare purposes.
5 Pursuant to the provisions of the Women’s Active Engagement Act, calculations are based on the current consolidated fiscal year.
6 “Permanent employees” refers to those on indefinite-term contracts.
7 We estimate the number of part-time and fixed-term employees, etc. based on their working hours as a proportion of the prescribed
working hours of permanent employees (8 hours a day).
Additionally, the ratio of women in managerial positions, percentage of men taking childcare leave and gender pay gap in our major
domestic consolidated subsidiaries, disclosed under the Women’s Active Engagement Act, and the Childcare and Caregiver Leave Act,
are as follows:
Name
Main Business
1
Ratio of
women in
managerial
positions
2
Percentage of
men taking
childcare
leave
3
Gender Pay Gap
4
All Workers
Permanent
Workers
5
Part-time and
Fixed-term
Workers, etc.
6
Indeed Recruit
Partners Co., Ltd.
HR Technology
40.2
＊
7
＊
7
＊
7
＊
7
Recruit Staffing Co.,
Ltd.
Staffing
39.7
54.2
74.5
61.7
79.4
Staff Service Holdings
Co., Ltd.
Staffing
30.6
100.0
71.4
75.6
25.3
Recruit Co., Ltd.
7
Marketing
Matching
Technologies
33.9
102.8
77.0
80.7
98.5
(23 other companies)
8
1 Under “Main Business” is the name of the Segment each company belongs to.
2 Managerial positions refer to all employees who have subordinates, excluding senior executives under service agreements, as of Apr
1, 2025. It has been calculated in accordance with the Women’s Active Engagement Act, including incoming seconded employees that
have been assigned to the respective company and excluding outgoing seconded employees that have
been assigned to companies
outside the respective company.
3 Calculations are based on each company’s original workers. We have calculated the percentage of men taking childcare leave, etc. as
referred to in Article 71-6, item (ii) of the Ordinance for Enforcement of the Childcare and Caregiver Leave Act, pursuant to the
provisions of the Childcare and Caregiver Leave Act in the current consolidated fiscal year. Childcare leave, etc. includes both taking
childcare leave stipulated by law and benefiting from leave systems, etc. for childbirth and childcare purposes.
4 Calculations are based on each company’s original workers, including temporary workers dispatched through the respective company
to other companies and excluding temporary workers dispatched to the respective company in the current fiscal year. Accordingly, for
the Staffing segment, figures include each consolidated subsidiary company’s temporary workers, i.e. our clients’ temporary workforce
(who we payroll on their behalf).
5 “Permanent Workers” refers to those on indefinite-term contracts.
6 We estimate the number of part-time and fixed-term workers, etc. based on their working hours as a proportion of the prescribed
working hours of permanent workers (8 hours a day).
7 In line with the changes to the Company’s governance structure, effective April 1, 2025, the HR Solutions business within the Matching
& Solutions
SBU (currently known as Marketing Matching Technologies SBU) was transferred through an absorption-type company
split from Recruit Co., Ltd. to Indeed Recruit Partners Co., Ltd. and Indeed Recruit Technologies Co., Ltd., along with a partial transfer
of personnel. As there were no employees affiliated with Indeed Recruit Partners Co., Ltd. during the current consolidated fiscal year,
the percentage of men taking childcare leave and gender pay gap for these entities have been omitted. For Recruit Co., Ltd., figures
for these indicators were calculated based on the employees affiliated with the company prior to the company split. In contrast, the
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Company Overview | 16
percentage of women in managerial positions has been calculated based on each company’s status as of April 1, 2025, following the
company split.
8 The respective metrics of consolidated subsidiaries other than those of the major consolidated subsidiaries have been listed in “Other
Reference Information.”
Recruit Holdings and its main domestic consolidated subsidiaries adhere to the principle of “Pay
for Performance.” For permanent
workers, regardless of age, year of entry, or any other factor, the Company determines their compensation based on their expected role
and the extent of their contributions using a unique compensation structure called “Mission Grade System,” which ensures that there is
no pay gap between men and women at the same Mission Grade and evaluation level.
Therefore, the Company has identified the primary driver of the pay gap between men and women as the low percentage of women in
higher Mission Grades and managerial positions. In response, the Company is accelerating efforts to broaden representation in higher
Mission Grades, including among highly skilled professionals, as part of our ongoing work toward greater gender parity.
Through these efforts, the Company aims to create a more flexible working environment–one that allows greater choice in where and
when people work–while continuing to improve workplace support and fulfillment for all employees. The Company believes these
enhancements will help the organization evolve into one where an even broader range of talent can thrive. As a corporate group
engaged in business related to “work”, the Company is committed to contributing to a society where everyone can maximize their
potential, through our services and broader business activities.
Business Overview
Management Philosophy and Strategies
Management Philosophy
Recruit Group Management Philosophy is defined by its Basic Principle, Vision, Mission and Values as follows:
Basic Principle
We are focused on creating new value for our society to contribute to a brighter world
where all individuals can live life to the fullest.
Vision
Follow Your Heart
We envision a world where individuals and businesses can focus on what really matters.
The more people are free to pursue their passions, the better our future becomes.
Mission
Opportunities for Life.
Faster, Simpler and closer to you.
Since our foundation, we have connected individuals and businesses offering both a
multitude of choices.
In this era of search, where information has become available anytime anywhere, we
need to focus more on proposing the optimal choice. We seek to provide “Opportunities
for Life” much faster, surprisingly simpler and closer than ever before.
Values
Wow the World
What we do isn’t a job. We enjoy
exploring what is possible for our future.
We question the status quo, fail well
and overcome with resilience.
We are a force for change.
Bet on Passion
We are a team of people fueled by
curiosity. We respect and capitalize on
each other’s differences. We know that
one person’s crazy idea, when backed by
data and research, can become the best
bet.
Prioritize Social Value
We, as global citizens, strive to contribute to
a sustainable society through all of our
corporate activities. Each one of us is
committed to seeking out the needs of
society and taking action for a better future.
The Company has aligned its management philosophy through its two-sided marketplace business model, which facilitates the best
possible matches for the mutual benefit of both individual users and business clients.
In recent years, the Company has improved matching efficiency, providing better matching outcomes for individual users and improving
operational efficiencies for business clients with AI developed based on the expertise cultivated within the Recruit Group.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Business Overview | 17
Target Management Key Performance Indicators (KPIs)
The Company aims to invest in new businesses, research and development, and mergers and acquisitions (M&A) in order to achieve
profitable growth over the long-term, and maximize enterprise value as well as shareholder value. Therefore, the Company has set
adjusted EBITDA as target management KPIs. Executive officers’ compensation is linked to the achievement level of adjusted
EBITDA,
to align with shareholder interests.
Business Strategies
This section is based on the information after HR Solutions of the Matching & Solutions SBU has been transferred to HR Technology
SBU on April 1, 2025, and Matching & Solutions SBU will change its name to Marketing Matching Technologies SBU in FY2025.
Recruit Group is committed to maximizing enterprise and shareholder value by quickly identifying needs and business opportunities in
the global market and making swift decisions in response to the rapidly evolving business environment driven by technological
advancements.
Through HR Technology and Staffing in the global HR Matching market as well as through Marketing Matching Technologies for Japan,
the Company aims not only to provide online advertising businesses, but also to be a solutions provider that utilizes technology to
improve the performance and productivity of clients’ businesses.
In an environment of significant uncertainty, the Company is committed to making a positive impact on society and the planet, which is
essential to achieving sustainable growth. The Company aims to prosper together with all stakeholders by conducting all corporate
activities with a sound governance foundation. Therefore, as part of the Company’s corporate strategy, the Company has set specific
targets for environmental, social and governance matters which
will be monitored by the Board of Directors. The Company will advance
these initiatives through ongoing dialogue with its stakeholders.
The Company's business strategies are as follows:
Simplify Hiring - Make it easier and faster for people to get jobs
The HR Matching market includes job advertising & talent sourcing tools, direct hire, retained search, internal recruitment automation,
and temporary staffing. The Company is committed to making it easier and faster for people to get jobs, while reducing the cost and time
to hire for employers across the HR Matching market.
To achieve the goal of Simplify Hiring, the Company believes it is essential to further strengthen the collaboration between all HR related
businesses across Recruit Group and operate them in a unified manner, while targeting the entire HR Matching market. Through Indeed
PLUS and continuing with the placement business, which was previously included in HR Solutions in Matching & Solutions and
transferred to HR Technology on April 1, 2025, the Company believes that operating these businesses as one will improve hiring
efficiency and accelerate our ability to effectively address the global HR Matching market.
The Recruit Group is dedicated to automating many of the steps in the hiring process and to enhancing the quality and speed of
matching in all HR Matching markets
it operates in. The Company aims to leverage the vast amount of data available in each service
combined with AI and machine learning technology to simplify the hiring process and deliver greater value to job seekers and
employers. The Company’s long term vision is to more quickly, effectively and fairly connect job seekers and employers at the push of a
button
1
.
At the center of this strategy, HR Technology SBU operates a global two-sided talent marketplace that includes the world’s leading
online matching and hiring platforms
2
, Indeed and Glassdoor, and the job distribution platform Indeed PLUS. Every day, millions of job
seekers connect with millions of employers of all sizes, from small businesses to large enterprises and staffing agencies, directly on
Indeed, Indeed PLUS and Glassdoor.
Job seekers can access more than 24 million jobs
3 that have been aggregated from public sources, posted via integrations with ATS or
posted directly by employers to HR Technology's online matching and hiring platforms and can access billions of company ratings,
company reviews and salaries
4 to help them make informed job and career decisions. Job seekers are provided with a suite of tools and
resources that make getting a job simple, fast and more human, including job search and recommendations, profile creation and resume
posting, career advice and workplace community conversations, and scheduling and conducting video and phone interviews.
For employers, HR Technology’s online matching and hiring platforms offer AI based solutions to recruit and hire qualified talent in a
simpler, faster and more human way. Employers can post and advertise jobs and build their company's employment brand across both
platforms, reaching a broad and diverse job seeker audience. Indeed and Glassdoor offer a range of products for employers to source,
screen, interact with, and interview candidates and together they provide an efficient source of candidates through pay-for-performance
and subscription pricing models.
The scale of the two-sided talent marketplace created by Indeed and Glassdoor is evidenced by the 3.3 million employers
5 that use
Indeed each year to hire, the over 610 million verified job seeker profiles
6 created on Indeed and over 210 million user profiles
7 created
on Glassdoor.
Improving the matching
process between job seekers and employers is vital to enhance the efficiency and effectiveness of the two-sided
talent marketplace. This involves continuously refining the accuracy and timeliness of the information the Company uses including
through the use of generative AI tools, in conjunction with predictive AI and machine learning technology, to provide the most suitable
job recommendations and the most qualified candidate pool available. Additionally, an essential element of this effort is to increase
engagement with job seekers in the Company’s talent marketplace, including through more tailored agentic AI experiences.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Business Overview | 18
By logging in and creating a profile, job seekers provide the Company with a better understanding of their skills and preferences,
enabling it to offer more personalized job recommendations that are highly relevant to them. This not only provides a superior user
experience but also helps job seekers find suitable opportunities more efficiently.
Furthermore, the Company also believes that it is crucial to understand the factors that drive successful and unsuccessful outcomes for
job seekers and employers. The Company’s talent marketplace facilitates interactions between job seekers and employers, such as
messaging, calls, application submissions, interview requests and RSVPs, offers, and more. Additionally, by expanding integrations with
ATSs, the Company aims to improve matching by bringing outcome data from external ATSs into the Indeed platform. By tracking these
interactions in the Company’s marketplace throughout the hiring process, it gains valuable insights into why job seekers and employers
progress from one step to the next.
The Company considers the measured average number of hires per minute
8 to be a Key Performance Indicator (KPI) that demonstrates
its success in simplifying the hiring proces s . The Company believes this KPI indicates a successful engagement between job seekers
and employers, which represents improvements in matching and automation, as well as improvements in employer engagement that
help the Company measure more hires. In calendar 2024, based on internal measurement, an average of 27 job seekers were hired on
Indeed and Glassdoor every minute.
The Company believes that by fully utilizing the Recruit Group's
business client relationships, offline and online data, combined with
machine learning and other AI technologies, the Recruit Group’s matching engine can be improved significantly, helping to simplify the
process for job seekers and make recruiting more efficient across all of Recruit’s HR related businesses.
As an example, Indeed PLUS, a job distribution platform available throughout Japan, efficiently matches job seekers and employers by
combining the power of the Company’s online matching and hiring platforms with the data and insights of its various Japan-based job
boards like TOWNWORK and Rikunabi NEXT. All of the job boards in Japan, with the exception of Rikunabi, are now linked to Indeed
PLUS, allowing job seekers to choose from a wider range of jobs, and employers to expect to hire the most suitable talent more quickly
and efficiently, from a larger pool of candidates.
Additionally, RECRUIT AGENT and RECRUIT DIRECT SCOUT, the placement services, which are part of the HR Technology SBU as
of April 1, 2025, utilize the Recruit Group’s matching engine to streamline processes like screening resumes, a previously manual
process. By combining Indeed’s technology, data and scale with more than 60 years of HR matching expertise
in the Japanese market,
the Company aims to accelerate its Simplify Hiring strategy in Japan.
The Staffing SBU is focused on leveraging the technology developed within the Recruit Group, such as its unparalleled matching
engine, to provide superior experiences for both business clients and temporary workers by applying data and automation to the
traditional temporary staffing business. The Company aims to improve the speed and quality of matching, and increase retention of
temporary workers and automate manual processes with the ultimate goal of becoming the leading, most innovative platform in the
temporary staffing market.
In 2024, the Company believes the size of the HR Matching market was roughly 310 billion US dollars
9
, flat compared to the Company’s
restated estimate
10 for 2023. While the estimated size of the Job Advertising and Talent Sourcing, Direct Hire and Temporary Staffing
markets each contracted slightly, this was offset by an increase in the estimated size of the Internal Recruitment Automation market,
driven by an increase in the assumed percent of historical spending on internal talent acquisition resources that could be reasonably
captured by current technology.
The size of the total, and each, addressable market has been updated as of May 9, 2025. Please
reference the footnotes for details of the changes.
The Direct Hire and Retained Search markets, as well as the internal recruitment processes that underlie the Internal Recruitment
Automation market have historically been characterized as business processes and methods that are highly dependent on manual
processes in order to source and screen candidates, schedule interviews, and dispose of candidates. The Company is currently aiming
to develop highly efficient solutions for recruiters, hiring managers, and business owners at lower prices compared to the industry
average, using data and automation to make getting a job and hiring an employee simpler and faster. As a result, the Company aims to
further grow the number of employers it serves and increase the share of employers’ recruiting budgets that it can capture.
HR Matching addressable markets (estimated)
(in billions of US dollars)
2023
2024
as of May 15, 2024
as of May 9, 2025
Job Advertising and Talent Sourcing
11, 12, 13
31
34
33
Direct Hire 14, 15, 16
58
74
72
Retained Search 14, 15, 16
37
24
24
Temporary Staffing 17, 18, 19
116
118
111
Internal Recruitment Automation 20, 21
60
60
70
Total Addressable Market (“TAM”) 22
302
310
310
Job Advertising and Talent Sourcing: The global job advertising and talent sourcing market is estimated by Staffing Industry Analysts
(“SIA”) to have been roughly 33 billion US dollars
13 in terms of annual revenue in 2024.
Direct Hire: The direct hire market, where companies are paid fees for placing permanent workers at employers, is estimated by the
Company to have been roughly 72 billion US dollars
16 in terms of annual
revenue globally in 2024 and has historically been dominated
by traditional relationship-based business models.
Retained Search: The retained search market, where companies are paid to search for employees to fill specific roles, commonly
executive roles, is estimated by the Company to have been roughly 24 billion US dollars
16 in terms of annual revenue globally in 2024
and is similarly dominated by traditional relationship-based models.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Business Overview | 19
Temporary Staffing: The temporary staffing market, where companies are paid to find and employ, or facilitate employment of, workers
for a temporary period, is estimated by the Company to have been roughly 536 billion US dollars
19 in annual revenue globally in 2024.
The total gross profit for all staffing companies, which is calculated by subtracting the
amount of salary for temporary staff and related
costs from the total revenue, is estimated by the Company to have been roughly 100 billion US dollars
19 in 2024. Additionally, the
Company’s definition of this market includes the estimated annual revenue globally in 2024 for each of the Talent Platforms
23
, Staffing
Platforms
24 and Vendor/Freelancer Management Systems (“VMS/FMS”)
25 markets, and an estimated annual spending by employers on
Managed Service Provider (“MSP”)
26 and Recruitment Process Outsourcing (“RPO”)
27 services that can be reasonably automated and
monetized by third parties (including an estimated reduction from historical spending due to cost savings achieved through automation).
Given the related nature of these markets and the frequency with which service providers offer some or all of these services, the
Company believes that it is appropriate to combine these markets as part of the temporary staffing market. Including these markets, the
Company estimates that the temporary staffing market was roughly 111 billion
19 US dollars globally in 2024.
Internal Recruitment Automation: The potential internal recruitment automation market, which the Company has begun to address, is
estimated by
the Company to have been roughly 70 billion US dollars
21 in 2024. The size of this market is estimated based on the
historical estimated spending by employers on internal talent acquisition resources, and then estimating how much of this spending can
be reasonably automated and monetized by third parties (including an estimated reduction from historical spending due to cost savings
achieved through automation). Additionally, in order to comprehensively capture the automation tools that are currently used by
employers in the recruitment process, the Company’s definition of this market includes the estimated annual revenue globally in 2024 for
ATS
28 and an estimated annual internal spending by employees on Background Checks
29 that can be reasonably automated and
monetized by third parties.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Business Overview | 20
1
The Company is aware there may be legal restrictions in this area and so will endeavor that the Company's work meets those
requirements.
2
Source: comScore, Total Visits, March 2025
3
Internal data, based on the last 12 months daily average number of jobs searchable on Indeed as of December 2024, worldwide
4
Internal data, cumulative number of company ratings, company reviews and salaries submitted on Indeed (approximately 4.5 billion),
worldwide, as of March 31, 2025
5
Internal data, based on the last 12 months of activity as of March 2025, worldwide
6
Internal data, cumulative number of verified job seeker accounts on Indeed through March 31, 2025, worldwide. Job seeker accounts
that have a unique, verified email address.
7
Internal data, cumulative number of Glassdoor registered users for which a profile or resume is available through March 31, 2025,
worldwide.
8
Internal data, hires per minute is a calculation of hired signals per year on Indeed and Glassdoor, divided by minutes per year. A hired
signal refers to the event when a specific job seeker is hired for a specific job on a specific date. Hired signals are counted either when
an employer or job seeker explicitly communicates
a hire occurred (e.g., via survey or web form) or when there is other clear evidence
from Indeed and Glassdoor data that a hire occurred (e.g., from a resume or an Indeed message) and may not represent all hires
facilitated by Indeed and Glassdoor.
9
Sum of the estimated size of addressable markets for the job advertising & talent sourcing tools market, the direct hire market and the
retained search market in terms of annual revenue, the estimated size of the addressable market for the internal recruitment
automation market in terms of the amount of current expenses of employers for internal talent
acquisition resources that could be
reasonably automated and monetized plus the estimated size of the addressable market for the ATS market and the Background
Checks market, and the addressable markets for the temporary staffing market in terms of annual gross profit plus the estimated size
of the addressable markets for the Talent Platforms, Staffing Platforms, VMS/FMS, MSP, and RPO markets, in each case based on the
Company’s estimates and third party market data as described in the notes below.
10
The estimated size of the HR Matching market in 2023 has been restated from the Company’s initial estimate in the Q4 FY2023
Earnings Release as of May 15, 2024 based on a revision to the methodology used to estimate the job advertising & talent sourcing
tools market and information that became available after the publication of such
initial estimate pertaining to each market listed in the
notes below. As described in detail in the notes below the Company’s initial estimate in the Q4 FY2023 Earnings Release as of May
15, 2024 for the job advertising & talent sourcing tools market relied on the Company’s estimates using third party reports, internal
research and other sources. The updated estimate relies solely on the SIA report Online Job Advertising Market: 2024 Update. The
methodologies changed in that the share of the Global Staffing Revenue that is attributed to Placement & Search is changed from the
2023 (as May 15, 2024) and 2023 (restated) and calculated on a regional (Americas, EMEA, APAC) basis rather than applying a single
global share percentage. Additionally, as referenced in detail in the notes below, SIA estimated relative composition of the Place &
Search market for 2023 between Direct Hire and Retained Search changed significantly from the publication of Global Staffing Market
Estimates and Forecast: November 2023 Update and the publication of Global Staffing Market Estimates & Forecasts November 2024.
11
Source for 2023 (as of May 15, 2024): Estimated size of the global online Job Advertising and Talent Sourcing Tools Market calculated
by adding together the revenue of HR Technology in the relevant year, the Company’s estimates for revenue of competing job
advertising boards in the Company’s target operating markets in the relevant year based on third
party reports and internal research,
and the Company’s estimates for annual revenue of the talent solutions business of LinkedIn in the Company’s target operating
markets in the relevant year based on publicly available information, sell side analyst models, and internal research and in addition the
estimated size of the global offline job advertising market derived based on the proportion of online to offline spending (excluding TV,
cinema and radio advertising) in the overall advertising market in the relevant year based on third party reports and the estimated size
of global online job advertising and talent sourcing tools market. The numbers in this chart are the sum of the global offline job
advertising market and global online job advertising and talent sourcing tools market.
12
Source for 2023 (restated): SIA, Online Job Advertising Market: 2024 Update. The Company has determined that, given the small,
declining size of the global offline job advertising market, it is no longer useful to disclose the size of the global offline job advertising
market.
13
Source for 2024: SIA, The Evolution of Recruiting: 2025 Update to Estimating the Addressable Market for Recruitment Automation
(custom research commissioned by Indeed): January 2025 Update. The Company has determined that, given the small, declining size
of the global offline job advertising market, it is no longer useful to disclose the size of the global offline job advertising market.
14
Source for 2023 (as of May 15, 2024): SIA, Global Staffing Market Estimates and Forecast: November 2023 Update. Placement &
Search Market is derived by applying 15%, which was Placement & Search’s share of 2023 Global Staffing Revenue to 640 billion US
dollars, which was estimated 2023 Global Staffing Revenue, derived by applying the estimated 2023 -2%
growth rate to the estimated
2022 market of 654 billion US dollars (estimate updated following the May 15th 2023 Earnings Release). Direct Hire Market is defined
as a segment of Placement & Search Market, which in turn is a segment of Global Staffing Industry Market. Direct Hire Market
segment was derived by applying SIA’s Global Staffing Industry Market figure to country-by-country ratios of the relative proportion
attributable to this segment within the total market based on proprietary third party market data. Retained Search Market is defined as
the portion of Placement & Search Market not attributable to the Direct Hire Market and derived as the difference between these two
segments.
15
Source for 2023 (restated): SIA, Global Staffing Market Estimates & Forecasts November 2024. Direct Hire Market is defined as a
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Business Overview | 21
segment of Placement & Search Market, estimated by SIA to be 98 billion US dollars, which in turn is a segment of Global Staffing
Industry Market. The Direct Hire Market segment was derived by applying SIA’s Global Staffing Industry Market figure to
country-by-country ratios of the relative proportion attributable to this segment within the total market based
on proprietary third party
market data. Retained Search Market is defined as the portion of Placement & Search Market not attributable to the Direct Hire Market
and derived as the difference between these two segments. Updates to the ratios used to attribute the Placement & Search Market
between Direct Hire and Retained Search are the primary driver of the change in each of Direct Hire Market and Retained Search
Market between the 2023 estimates as of May 15, 2024 and the 2023 updated estimates.
16
Source for 2024: SIA, Global Staffing Market Estimates & Forecasts November 2024. Placement & Search market is derived by
applying 15.2%, which was Placement & Search’s share of 2023 Global Staffing Revenue, to the sum product (a) of -9% growth rate
from SIA, America’s Staffing Market Forecast November 2024 applied to 229 billion US dollars, which was
America’s Total Staffing
market in 2023, (b) of -2% growth rate applied to 263 billion US dollars, which was EMEA Total Staffing market in 2023, and (c) of 7%
growth rate applied to 159 billion US dollars, which was APAC Total Staffing market in 2023, all from SIA, Global Staffing Market
Estimates & Forecasts November 2024. Direct Hire market is defined as a segment of Placement & Search market, which in turn is a
segment of Global Staffing Industry Market. Direct Hire Market segment was derived by applying SIA’s Global Staffing Industry Market
figure to country-by-country ratios of the relative proportion attributable to this segment within the total market based on proprietary
third party market data. Retained Search Market is defined as the portion of Placement & Search Market not attributable to the Direct
Hire Market and derived as the difference between these two segments.
17
Source for 2023 (as of May 15, 2024): derived by applying a gross profit margin of 19.30%, which was calculated based on the
weighted average of the top 3 publicly traded global staffing companies in terms of revenue in 2023, to 544 billion US dollars, which
was the revenue of the temporary staffing market in 2023 from
SIA, Global Staffing Market Estimates and Forecast: November 2023
Update by applying the estimated -2% growth rate to the updated estimated 2022 market of 555 billion US dollars.
18
Source for 2023 (restated): derived by applying a gross profit margin of 19.30%, which was calculated based on the weighted average
of the top 3 publicly traded global staffing companies in terms of revenue in 2023, to 551 billion US dollars, which was the restated
revenue of the temporary staffing market in 2023 from SIA Global Staffing Market Estimates & Forecasts November 2024.
19
Source for 2024: derived by applying a gross profit margin of 18.72%, which was calculated based on the weighted average of the top
3 publicly traded global staffing companies in terms of revenue in 2024, to 536 billion US dollars, which was the estimated revenue of
the temporary staffing market in 2024. 536 billion US dollars is
a sum product (a) of -9% growth rate of the Total Staffing market from
SIA, America’s Staffing Market Forecast November 2024 applied to 206 billion US dollars, which was America's Temporary Staffing
market in 2023, (b) of -2% growth rate of the Total Staffing market applied to 225 billion US dollars, which was EMEA Temporary
Staffing market in 2023, and (c) of 7% growth rate of the Total Staffing market applied to 120 billion US dollars, which was APAC
Temporary Staffing market in 2023, all from SIA, Global Staffing Market Estimates & Forecasts November 2024.
20
Source for 2023 (as of May 15, 2024) and 2023 (restated): SIA, The Evolution of Recruiting: 2024 Update to Estimating the
Addressable Market for Recruitment Automation (custom research commissioned by Indeed): January 2024 Update. SIA’s estimates
are based on the assumption that 41% of historical spending on internal talent acquisition resources could be reasonably captured by
current
technology and that technology would result in 37% cost savings from historical spending. In the report, SIA notes given the
challenges in making global estimates with incomplete information, and in estimating potential automation and savings, SIA advises
readers to think of the estimated market size as a midpoint in a range with a 20% spread. This market estimate includes the addition of
the ATS market and the Background Checks market.
21
Source for 2024: SIA, The Evolution of Recruiting: 2025 Update to Estimating the Addressable Market for Recruitment Automation
(custom research commissioned by Indeed): January 2025 Update. SIA’s estimates are based on the assumption that 46% of
historical spending on internal talent acquisition resources could be reasonably captured by current technology and that technology
would result in 37%
cost savings from historical spending. In the report, SIA notes given the challenges in making global estimates
with incomplete information, and in estimating potential automation and savings, SIA advises readers to think of the estimated market
size as a midpoint in a range with a 20% spread. This market estimate includes the addition of the ATS market and the Background
Checks market.
22
As described above, the estimates of the Job Advertising & Talent Sourcing tools market, the Direct Hire market, the Retained Search
market, the Internal Recruitment Automation market and the Temporary Staffing market are based on internal estimates and
independent market research in addition to third party market data. Accordingly, the estimates described above may differ materially
from the actual size of such markets.
23
The Talent Platforms market, where companies manage marketplaces that facilitate direct contingent work arrangements that enable a
legal relationship between companies and workers, is estimated by the Company to have been roughly 2 billion US dollars in 2023 and
2024 in terms of annual revenue globally based on SIA, The Evolution of Recruiting: 2024 Update to Estimating
the Addressable
Market for Recruitment Automation (custom research commissioned by Indeed): January 2024 Update and SIA, The Evolution of
Recruiting: 2025 Update to Estimating the Addressable Market for Recruitment Automation (custom research commissioned by
Indeed): January 2025 Update, respectively.
24
The Staffing Platforms market, where companies manage marketplaces that facilitate automated match of candidates with relevant
temporary assignments, is estimated by the Company to have been roughly 4 billion US dollars in 2023 and 3 billion US dollars in
2024 in terms of annual revenue globally based on SIA, The Evolution of Recruiting: 2024 Update to Estimating
the Addressable
Market for Recruitment Automation (custom research commissioned by Indeed): January 2024 Update and SIA, The Evolution of
Recruiting: 2025 Update to Estimating the Addressable Market for Recruitment Automation (customer research commissioned by
Indeed): January 2025 Update, respectively.
25
The Vendor/Freelancer Management Systems (“VMS/FMS”) market, where companies provide technology used to manage a
company’s contingent workforce program, is estimated by the Company to have been roughly 3 billion US dollars in 2023 and 2024 in
terms of annual revenue globally based on SIA, The Evolution of Recruiting: 2024 Update to Estimating the Addressable Market for
Recruitment
Automation (custom research commissioned by Indeed): January 2024 Update and SIA, The Evolution of Recruiting:
2025 Update to Estimating the Addressable Market for Recruitment Automation (customer research commissioned by Indeed):
January 2025 Update, respectively.
26
The Managed Service Provider (“MSP”) market, where companies provide services associated with management of all or part of a
client’s contingent workforce program through the use of automation, is estimated by the Company to have been roughly 1 billion US
dollars in 2023 and 2024 in terms of annual spending by employers that can be reasonably automated
and monetized by third parties
based on SIA, The Evolution of Recruiting: 2024 Update to Estimating the Addressable Market for Recruitment Automation (custom
research commissioned by Indeed): January 2024 Update and SIA, The Evolution of Recruiting: 2025 Update to Estimating the
Addressable Market for Recruitment Automation (customer research commissioned by Indeed): January 2025 Update, respectively.
27
The automated Recruitment Process Outsourcing (“RPO”) market, where companies perform the partial or full internal recruitment
function for a third party, from sourcing to onboarding through the use of automation, is estimated by the Company to have been
roughly 3 billion US dollars in 2023 and 2024 in terms of annual spending by employers that can be
reasonably automated and
monetized by third parties based on SIA, The Evolution of Recruiting: 2024 Update to Estimating the Addressable Market for
Recruitment Automation (custom research commissioned by Indeed): January 2024 Update and SIA, The Evolution of Recruiting:
2025 Update to Estimating the Addressable Market for Recruitment Automation (customer research commissioned by Indeed):
Help Businesses Work Smarter - Improve performance and productivity for business clients in Japan
Help Businesses Work Smarter aims to contribute to improving productivity and profitability of the Company’s business clients in Japan,
mainly led by the Marketing Matching Technologies SBU, which provides vertical-specific matching platforms and associated
vertical-specific business support SaaS solutions, as well as business support SaaS solutions called Air BusinessTools, which work
across all verticals.
The
Help Businesses Work Smarter strategy will be achieved by consolidating business clients’ operations within a single ecosystem,
consisting of vertical matching platforms and SaaS solutions.
In building this ecosystem, the Company has established key performance indicators (KPIs) including "the number of actions by
individual users
1
,” "the number of registered SaaS accounts
2
,” and "the gross payment volume, GPV
3
."
The number of actions by individual users
4 in FY2024 was approximately 540 million, an increase of 12.3% year over year. Actions by
individual users includes the number of online reservations made on the Company’s salon, restaurant, and lodging matching platforms.
An increase in the number of actions in Marketing Matching Technologies may translate into revenue growth for business clients. By
utilizing action data and matching technology, the Company aims to improve the convenience of its matching platforms and increase the
number of actions across the entire Matching & Solutions SBU.
As of March 31, 2025 the number of registered SaaS accounts was approximately 4.34 million, an increase of 14.7% year over year.
The availability of Air BusinessTools that are not restricted to any specific field, especially AirPAY, a cashless payment service, was a
primary driver of the increase in the number of accounts. AirPAY extends the Company’s services to new businesses outside its
existing
verticals, such as retailers. In addition, the number of new business clients who use AirWORK ATS, a recruitment management system
increased.
The Company estimates that roughly 4.38 million
5 business locations and stores in Japan are potential users of Air BusinessTools.
Assuming each business location uses multiple SaaS solutions, the Company believes there is still significant opportunity to expand. An
increase in the number of registered accounts represents the expansion of its customer base. The Company expects the customer base
of Air BusinessTools to continue to expand as business clients replace existing manual processes with SaaS solutions.
For FY2024, GPV reached approximately 2.4 trillion yen, an increase of 26.8% year over year. Apart from the increase in the number of
AirPAY registered accounts, the growth in payment volumes is also due to the online payment service offered through AirPAY. The
online payment service is now available for both Hot Pepper Beauty and Hot Pepper Gourmet, following its introduction on Jalan net.
This service enables individual users to make online payments for their salon bookings and restaurant reservations, which enhances
payment convenience for individual users, reduces lost revenue
opportunities for business clients, and increases the amount of payment
transaction volume flowing through the Company’s ecosystem.
GPV is important for the future expansion of fintech services, which, the Company believes will become a new potential source of
revenue in the long term. An example of a fintech service is AirCASH, a service allowing business clients to receive cash in advance
based on their future revenue.
By integrating vertical-specific matching platforms with Air BusinessTools SaaS solutions, the Company creates opportunities to engage
with business clients across many business operation services. Additionally, incorporating HR matching services into the Company’s
offering will complete all business operations within its ecosystem, increasing the recurring use of its various products for business
clients and ultimately resulting in greater lifetime value of both individual users and business clients.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2024
Business Overview | 22
January 2025 Update, respectively.
28
ATS market, where companies provide software and other tools to facilitate the tracking of applicants through different stages of the
recruitment process, is estimated by the Company to have been roughly 2 billion US dollars in terms of annual revenue globally in
2023 and 3 billion US dollars in 2024 based on SIA, The Evolution of Recruiting:
2024 Update to Estimating the Addressable Market
for Recruitment Automation (custom research commissioned by Indeed): January 2024 Update and SIA, The Evolution of Recruiting:
2025 Update to Estimating the Addressable Market for Recruitment Automation (custom research commissioned by Indeed): January
2025 Update, respectively.
29
The Background Checks market, where companies use digitized methods to verify and vet applicants’ background and credentials, is
estimated by the Company to have been roughly 1 billion US dollars in terms of annual internal spending by employers that can be
reasonably automated and monetized by third parties in 2023 and 2024 based on SIA, The Evolution
of Recruiting: 2024 Update to
Estimating the Addressable Market for Recruitment Automation (custom research commissioned by Indeed): January 2024 Update
and SIA, The Evolution of Recruiting: 2025 Update to Estimating the Addressable Market for Recruitment Automation (custom
research commissioned by Indeed): January 2025 Update, respectively.
1
The total of the number of applications on Rikunabi NEXT, TOWNWORK, and RECRUIT AGENT, the number of individual users who
were referred to the Company’s business clients at SUUMO Counter, the number of online reservation on Hot Pepper Beauty, the
number of hotel bookings on Jalan, the number of seats reserved on Hot Pepper Gourmet, and the
number of payments through
AirPAY during the period from April 1, 2024 to March 31, 2025.
2
Cumulative number of registered accounts of paid and unpaid SaaS solutions provided by Matching & Solutions SBU in Japan as of
March 31, 2025. Registered accounts refer to the number of stores and business locations that have registered for each relevant
service including both active and non-active accounts.
3
Total gross payment volume of offline payments through AirPAY terminals, including QR code payments through AirPAY QR, and
online payments through AirPAY ONLINE (Since the revenue generated from the payment processing fee the Company collects is
based on a very small percentage of total gross payment volume, changes in total gross payment volume are not necessarily
proportional to changes in its total revenue).
4
The number of individual users retroactively reflects changes in counting methods due to product renewals and other factors.
5
The Company estimated the number of business locations and stores that can be potential users of SaaS solutions provided by
Matching & Solutions SBU as of March 31, 2025 in Japan by identifying the total number of business locations and stores of small
and medium-sized enterprises in Japan (using the definition used by Small and Medium Enterprise
Agency) based on the 2021
Economic Census for Business Activity conducted by the Ministry of Internal Affairs and Communications and the Ministry of
Economy, Trade and Industry. Considering the solutions (including AirWORK ATS) provided by Matching & Solutions SBU in Japan
Prosper Together - Seek sustainable growth shared by all stakeholders
The Company believes that it can make a positive impact on society through its corporate activities. In doing so, the Company can
prosper alongside its stakeholders and take a vital step toward achieving long-term, sustainable growth. As the Company announced in
May 2021, environmental, social, and governance goals have become one of the strategic
pillars of its corporate strategy. The progress
the Company has made toward these goals is outlined below.
Environmental
The Company anticipates achieving its short-term goal of reaching carbon neutrality throughout its business activities in FY2024, as it
did in the past three fiscal years
1,2
. The Company’s long-term goal is to achieve carbon neutrality across its entire value chain by
FY2030
1
. In order to accelerate its efforts toward this FY2030 goal, the Company set a greenhouse gas (GHG) absolute reduction
target
3 based on its SBTi Near-Term target. The Company is on track to surpass its GHG reduction target across all emissions
categories, Scopes 1+2, and 3
1,2
in FY2024. One particular focus was to accelerate the reduction of
Scope 3 emissions, which account
for more than 95%
4 of the Company’s GHG emissions. To achieve this, the Company continues working with the partners in its value
chain to refine the measurement of GHG emissions and to identify reduction measures.
In recognition of the Company’s environmental actions, for the second consecutive year, the Company was selected as an “A” list
company in 2024 for its leadership in performance on climate change and corporate disclosure transparency by the international
nonprofit organization CDP
5
.
Social
As a leader in the global HR Matching Market, the Company has set two key goals by FY2030 to drive meaningful social impact,
centered around its core business area: work. Work is an indispensable foundation for people's lives, and therefore, the Company is
dedicated to opening up access to employment opportunities for all and reducing the time to get hired.
In order to achieve the first goal of reducing the time it takes to get hired by half by FY2030, the Company introduced the employer Time
to Hire (TTH) metric in May 2024, and continues to deepen its understanding of factors that influence it. The Company has enhanced its
TTH measurement methodology to improve accuracy and actionability—enabling
the identification of targeted strategies to reduce TTH
at every stage of the employer hiring journey. Based on this improved methodology, which looks at paid and free job listings on Indeed,
the average TTH was 42 days as of January 2025, up slightly from 41 days
6 in December 2023.
The increase in TTH is presumed to be at least partially attributable to the U.S. macroeconomic conditions. Initial findings suggest that
the U.S. labor force participation
7 and TTH are correlated. When the labor force participation rate increases, TTH increases.
Additionally, the U.S. quits rate
8 and TTH are inversely correlated. When the quits rate decreases, TTH increases. The Company
observed a pronounced decline in the U.S. quits rate in 2024, while labor force participation has been gradually increasing
post-pandemic.
However, the Company’s research consistently shows that when employers used Indeed’s paid solutions, TTH decreased significantly.
Indeed’s AI-powered features played a key role in accelerating hiring and improving outcomes—even amid a challenging
macroeconomic environment.
In a global analysis conducted from January 2024 to January 2025, Sponsored Jobs on Indeed saw a 22% faster TTH compared to
those that were
not sponsored. More recently, product innovations have contributed to improved hiring speeds. For example, testing of
hosted Premium Sponsored Jobs in the U.S. has achieved a 58% faster TTH compared to free hosted job listings
9
.
The Company aims to continue to advance TTH by introducing innovative AI solutions, streamlining the hiring process, and increasing
automation—making hiring simpler and faster for clients while supporting the sustainable business growth of the Company.
At the same time, traditional hiring practices unintentionally create barriers to employment that cannot be solved by speed and matching
improvements alone. In response, the Company set a second goal of helping 30 million job seekers facing barriers get hired by FY2030.
To achieve this, the Company has been working to break down six common barriers that affect job seekers globally, including education
and disabilities.
Education should not be a limiting factor to employment. However, according to one survey, employers have rejected candidates
because they did not have a post-secondary education, even when the candidate had sufficient skills and experience
10
. In order to
overcome this barrier, the Company is working to promote adoption of Skills-First Hiring
11
–an approach that evaluates candidates based
on the skills they have gained through training, professional
history and other past experience. On Indeed, the Company uses skill
information for matching and recommending candidates to employer job postings based on their skills. Through Skills-First Hiring, job
seekers can represent their full skills and capacities, and employers can source and evaluate candidates based on the specific skills
required for the job. In the future, the Company plans to expand Skills-First Hiring and leverage AI to enable the Company to offer job
seekers personalized career advice, coach them to prepare for interviews, and advocate on their behalf to employers.
Through these efforts, the Company successfully