Global Expansion through Indeed, the World's No. 1 Online Job Search Engine
The World's No. 1 Online Job Search Engine with Sites in Over 60 Countries and 28 Languages*1
Indeed, a Recruit Holdings subsidiary since 2012, operates the No. 1 online job search engine worldwide with over 200 million unique visitors per month*2.
Using aggregation technology and a proprietary search algorithm, Indeed simplifies the job search experience to help millions of job seekers find jobs relevant to them from thousands of company websites, job boards and staffing firm websites. Indeed also offers a platform for companies to post jobs directly to Indeed which is used by millions of businesses worldwide. Indeed provides an efficient source of candidates for hundreds of thousands of employers through its pay per performance sponsorship model. Indeed also provides employers the ability to search its database of more than 120 million resumes. Indeed helps companies of all sizes hire talent and helps job seekers find the right opportunities that ultimately lead to hires.
Indeed operates a marketplace where job seekers are coming to Indeed to search for job opportunities, and companies with recruitment needs are advertising their job content to job seekers. Through Indeed's search engine, job seekers have free access to millions of jobs which have been aggregated from the web or posted directly to the site. Indeed offers employers, job boards and recruiting agencies access to millions of active job seekers across every industry and location. Employers sponsor jobs to increase visibility and drive traffic to their job openings and only pay Indeed if a job seeker clicks on a Sponsored Job. With this pay for performance pricing model, Indeed is a cost effective source of hiring for hundreds of thousands of companies.
Market Environment (FY2017)
US Market for Online Recruitment Has Been Growing
The online HR recruitment market in the US has a growth rate similar to the overall GDP growth rate. We would expect the size of the US online recruitment market to grow in line with overall economic growth trends.
Strong Revenue Growth, FY2017 Revenue Up 64.7% Year on Year
Indeed has experienced significant growth over the last several years and today is the No. 1 online job search engine worldwide.
In FY2017, Indeed recorded revenue of 218.5 billion yen, an increase of 64.7% year on year, mainly due to a combination of new customer acquisition and expanding spend from existing customers, against the backdrop of a favorable economic environment. Revenue in FY2017 was approximately 1.976 billion US dollars*3, an increase of 60.7% year on year on a US dollar basis. The previously communicated revenue objective for FY2018 of more than 2 billion US dollars*3, a threefold increase from FY2015, was nearly achieved one year ahead of schedule.
Strategy Going Forward
Expand Job Advertising Business Further on a Global Scale and Drive Future Growth by Contributing to Efficiency of Overall HR Processes
The global online job advertisement market, which is the major business of the HR Technology segment, provides a strong opportunity for growth in the mid-term. Indeed will look to expand its job advertising business within the US by investing in sales and marketing initiatives to increase brand awareness and acquire new users and customers. Indeed will also aim to grow its presence outside the US where there is significant potential for monetization.
The HR Technology segment aims to drive future growth by investing in R&D or through M&A to create new and innovative ways to drive efficiencies in recruiting and hiring processes.
Expand capabilities of the HR Technology Segment through Acquisition of Glassdoor, Inc.
In line with its growth strategy, Recruit Holdings acquired the US company Glassdoor, Inc. in June 2018. Glassdoor, which manages one of the world's largest and fastest-growing job search websites, is known for introducing greater workplace transparency through its database of company reviews, salary information and other company insights. Glassdoor currently has rich data on more than 770,000 companies located in more than 190 countries and regions*5. This includes more than 40 million reviews and insights*5 provided directly to its site by its users, including company reviews, CEO approval ratings, salary information, interview questions, office photos and more.
Glassdoor's employer and company information and Indeed's job search capabilities complement one another and will allow the HR Technology segment to improve the job search experience for job seekers and deliver better results to employers.
Glassdoor will operate as a standalone subsidiary within the HR Technology segment and, over time, the companies will explore opportunities to collaborate to drive efficiencies in recruiting and hiring processes.
*1 comScore, Total Visits, March 2018
*2 Google Analytics, Unique Visitors
*3 These are the financial results of Indeed, which differ from the IFRS-based consolidated financial results of Recruit Holdings Co., Ltd. due to differences in consolidation methodologies.
*4 Based on April 2018 data from comScore (Unique Visitors), SimilarWeb (Total Visits) and Médiamétrie (Unique Visitors). Source varies by market.
*5 Glassdoor data
US GDP (Real) Growth Results and Forecast [Billions of USD]
Source: International Monetary Fund, World Economic Outlook Database
Annual Revenue [Billions of Yen]
* under Japanese GAAP