Q3 2023 Recruit Holdings Co Ltd Earnings Call
Public relations and joining me today.
President and CEO and Joseph <unk> Executive Officer.
The corresponding dividend June will briefly go through the third quarter results. We are now at three P. M. Today and proceed to the Q&A session. The presentation, we will use of that you'd available on our IR website.
But it's not the old commissions during the conference call.
Unless otherwise stated as a reminder, we have a client a new definition of it isn't any thoughts.
You can imagine I noticed from the fiscal year at a new definition was applied retrospectively to say by 'twenty 'twenty. One clinical question focuses now I will turn the call over to Jim.
Thank you for your participation today, IMTT Ray Executive Officer of corporate planning Division of a crude holdings.
I will begin with the consolidated results of <unk>.
Operations for the third quarter of FY 2022, consolidated revenue was $808 1 billion, an increase of 18% as revenue in all segments technology matching solutions.
And staffing increased consolidated revenue increased by six 5% on constant currency basis.
Adjusted EBITDA margin decreased by three three percentage points to 15.
7% of adjusted EBITDA margin in each segment decreased adjusted EBITDA decreased by two 6% to $138 2 billion yet.
Adjusted EPS for Q3 of FY 2022 was 52 seven.
Kevin yen based on the results for the third quarter and our outlook for Q4, we have made.
The slight revisions to our financial guidance for FY 2022 from what we announced in May.
Now I will explain the details in each segment.
First I will talk about each of our technology.
U S. Dollar based revenue was $1.9 billion approximately flat year over year or an increase of three 9% on a constant currency basis quarter over quarter U S dollar based revenue.
Decreased by eight 7% due to less hiring demand from employers. This revenue is higher.
And then two years ago in Q3 of FY 2020, when revenue was approximately $1 1 billion on a Japanese yen basis revenue increased by 24 points.
2% year over year, while labor market remains tight globally and total job postings were above prepayment.
Emmick levels on February one 2020, the supply and demand mismatch between job seekers and employers continue to eat.
Total job postings on the composite free and sponsor job postings returned.
Approximately to the levels of one year ago and job seeker activity as measured by traffic and applies on DIY store increase year over year on U S. Dollar basis revenue in the U S decreased by 2%.
Outside of the U S increased by five 3% adjusted EBITDA was $78 8 billion.
Adjusted EBITDA margin decreased by six seven percentage points to 28.
1% to three percentage points lower than Q2 as personnel costs grew more.
More than revenue due primarily to higher in the first half of this fiscal year during Q3.
Controlled expenses in light of the business environment and advertising expenses.
Decreased year over year regarding our Q4 and FY 2022 outlook revenue on a U S dollar basis in January decreased by one 5% and based on the currency.
U S macro environment and the downtrend of our financial performance, we expect revenue in Q4.
Will be down approximately 5% year over year, Although we mentioned on the last earnings call. It is our technology revenue growth for this fiscal year would likely be closer to 10% we have revised our outlook for rates.
Revenue growth to approximately 8%. This change is based on the continued negative impact of the strong U S dollar and slightly lowered expectations for U S. Dollar based Q4 revenue.
While carefully controlling operating expenses, including by reducing marketing expenses are pausing hiring.
We expect adjusted EBITDA margin for FY, 2022 to be slightly lower than our <unk>.
And she'll outlook of approximately 30% due to lower revenue.
Next I will talk about the result of Michigan solutions revenue.
Matching and solutions was 191 9 billion an increase of 13, 9%.
Increase in revenue for both marketing solutions, and HR solutions, which reflects the recovery of demand in that.
The Japan economy, Michigan solutions total revenue exceeded pre pandemic levels. When revenue was approximately 180 billion yen in Q3 FY 2019.
Revenue and marketing solutions was $115 4 billion an increase of 13.1.
Percent is revenue in housing and real estate beauty travel bridal and dining all increased.
Revenue in HR solutions was $73 7 billion, an increase of 17 point.
5% is revenue in the job advertising service and replacement service both increased adjusted EBITDA decreased to $31 6 billion yen in Japan.
EBITDA margin was 16, 5% decrease of five two percentage points as Martin.
Any expenses, mainly including advertising expenses grew more than revenue.
As of December 31, 2022, the cumulative number of SaaS accounts was $3 million in the number of air pay accounts was 359000, an increase of 37, 8%.
Year over year more detailed information in terms of the number of air business tool SAP accounts.
It can be found in earnings release regarding the Q4 and FY 2022 outlet format.
<unk> solutions, we expect the recovery of economic activities in Japan to continue in Q4.
Revenue and marketing solutions for FY 2022 is expected to increase by approximately 30 days.
Present year over year revised from an increase of approximately 9% to 14% year over year.
And revenue in HR solutions for FY 2022 as expected.
Two to increase by approximately 18, 5% year over year revised from an increase of approximately.
And at least 16% to 23% year over year.
Adjusted EBITDA margin is expected to be lower than Q4 due to aggressive marketing activities to meet the expected demand from April onward.
While revenue for this fiscal year in both marketing solutions and HR solutions.
Are expected to be within our initial outlook strategic investments to realize our long term business strategy.
Our expected to exceed our initial expectations as a result, we expect adjusted EBITDA margin.
For FY 2022 to be slightly lower than our initial outlook of approximately 14.
Two 5% finally, I will talk about the results of staffing revenue was $450 6 billion yen, an increase of 16, 2% or an increase of 70.
Two 4% on a constant currency basis, adjusted EBITDA was $29 8 billion, an increase of four 2% and adjusted EBITDA margin was.
Seven 2% revenue in Japan was $174 4 billion yen.
Increase of 12, 1% due to an increase in the number of temporary staff on assignment as a reserve.
Solid continued growth in demand for staffing services adjusted EBITDA was $15 17.
1 billion yen, an increase of six 2% and adjusted EBITA margin in Japan was nine 1% revenue in Europe U S and Australia was $241 1 billion yen.
An increase of 19, 4% an increase of three 8% on a constant currency basis, despite a year over year slowdown in demand related to supporting COVID-19 minutes.
Creation efforts in the European region in FY 2021 demand for staffing services continued to increase adjusted EBITDA was 14 billion yes.
And an increase of 2% adjusted EBITDA margin was 520% a decrease.
To one percentage point as expenses grew more than revenue due to the impact of inflationary effects and increased head count.
Joining me outlook for Q4, and FY 2022.
Japan, and Europe U S and Australia, the business environment during the first nine months of the fiscal year.
As expected to continue in Q4 as the demand for staffing services remained higher than all.
Our initial outlook, we expect revenue growth will exceed our initial outlook range.
And we have revised our FY 2022 revenue outlook from an increase of approximately 9%.
Since 12% year over year to an increase of approximately 13% year over year for Europe U S and Australia. We've also revised our FY 2022 revenue outlook from an increase of approximately.
I have 5% to 7% year over year to an increase of a price.
Only 17, 5%, mainly due to the positive impact of foreign currency fluctuations.
Europe U S and Australia saw significant changes in his outlook due in part to the foreign exchange.
In fact of a large discrepancy between the assumed exchange rates an initial outlook.
Actual rates for the first nine months of the current fiscal year and the assumed rates for Q4.
But a weaker yen adjusted EBITA margin for FY 2022 is expected to be.
The approximately 6% in line with our initial outlook, while revenue growth is expected to exceed earnings.
Initial outlook range in order to meet the demand for staffing services from April onwards.
Expect advertising expenses, including recruitment expenses in Q4 to exceed our initial outlook.
Based on the outlook for each segment as noted earlier, we determined it is appropriate to revise the FY 2022 consolidated financial guidance announced on Macy's.
16th 2022 in May we announced our consolidated guidance for the current fiscal year.
Three three trillion yen and revenue of $5 to $20 billion in adjusted EBITDA and $170 65 yen in adjusted EPS, We have revised our FY 2020.
Q2 financial guidance to revenue of $3 45 trillion yen adjusted EBITDA 525 billion yen, an adjusted EPS of 180, yet received.
Foreign exchange rates for Q4 of 132 yen per U S. Dollar 138 yen for Euro and 89 yen per Australian dollar.
Regarding the share buyback announced on October 17, 2022, we reached a maximum share buyback amount of approximately 100.
250 billion yen January six 2023, repurchasing a total of approximately.
35 million shares please refer to the IR website.
The detail. This concludes my presentation. Thank you.
Now let's proceed to the Q&A session.
As he did in the prior with I'll call personally I will ask you questions about a topic that I believe you had an interesting we will then take your questions.
No.
Okay.
Linked quarter.
You highlighted I'll take the labor market has been around the world.
What.
Are your thoughts on global HR market, Mark niche markets and have there been any notable changes in Blackwater.
Not much has changed.
What we discussed in November .
Yes.
The labor.
The supply shortage, resulting from long term and structural.
No changes in the labor market, which is the agent workforce shifts immigration.
Changing attitudes towards where like Dallas remains challenging in almost all developed.
Okay.
Job postings in the U S are at a high level 11 million in December however.
Significant hiring demand brought about by the pandemic is gradually normalizing from its peak in 2022 towards the pre pandemic level.
<unk> seen in 2019.
Outside the U S. The situation is different.
Labor market in Europe .
Excluding the U K remains tight.
And Japan continues to recover from the past.
Panic.
The magnitude of.
Normalization, we've seen in the U S has not yet.
John Seeger activity is recovering globally.
As the number of visits to indeed, and Glassdoor and the number of applications is underpriced.
Okay.
Those trends reflected in atopic financial performance during the quarter.
And what do you expect for the rest of this fiscal year and by 2023.
In the U S.
We are now seeing a discrepancy between the trends in the total open jobs and sponsored jobs.
Okay.
In Q3 on indeed.
No Doug openings were down three 5%.
And year over year, while sponsored a jump ball.
In the U S were down 33% year over here.
As I mentioned earlier.
There are still many job openings.
The labor shortage.
However, with announcements.
And for layoffs and reports that the economies likely to weapon.
We have seen a decline in employers' willingness to spend.
The fire in many industries, despite the labor shortage as they become increasingly cautious due to a potential recession in the U S.
And however.
However, we made on the various improvements.
We believe directly map, making it faster.
And UBS for employers to match with a qualified El speakers as a result of the job.
Advertisement have increased.
You had revenue has held up relatively well.
Well bequeathing, 2.0% in the third quarter.
The hand revenue outside.
And of the U S increased 27% year over year on a constant currency basis.
With strong performances in Germany, France, and Japan on a U S dollar basis.
However reported revenue increased by 3% impacted by the strong goodfellow.
We saw these trends continuing January with atopic revenue decline.
Approximately one 5% year over year as you mentioned earlier.
We usually see is both a gel volumes in the U S pick up in January compared to December .
But there.
There was less about month over month increase than in a typical year, considering these trends and the continuing strength of the U S. Dollar we have revised our revenue.
Growth outlook for the fiscal year from approximately 10% as we mentioned in November to approximately.
8%.
Looking ahead, we believe the supply and demand mismatches.
The labor market that occurred during the recovery of all the pandemic will continue to normalize performance.
In 2022.
In the U S. For example, we believe.
Doubled means will likely decrease to pre pandemic levels of about seven.
One 5 million jobs or even lower over the next two to three years.
We will continue our efforts to grow revenue and by improving our value.
We provide to employers.
Okay.
However, given the current rate of decline in <unk> willingness to pay.
And the higher it is becoming increasingly likely that HR tech revenue will decline in a box.
By 2023, and potentially again in FY 2024.
In light of these trend what measures are you taking to prepare or a challenging environment.
With so much uncertainty.
Regarding the outlook for the economy and the labor market.
We are procuring.
And for a difficult economic environment by taking a cautious approach.
Controlling costs.
In HR Tech as we mentioned in November we have already implemented cost control measures.
Okay, such as a hiring freeze and reduced marketing and other expenses.
Throughout our company's 60 60 year history, we have a strong track record.
Great of successfully navigating economic downturn by reducing costs.
While balancing this with long term growth investments.
With this approach.
We aim to expand our business during the recovery phase adjusted we have done in previous recessions.
We expect political economic situation is going to impact all interrelate company, our strong financial position with a solid balance sheet and stable cash flow.
In a relatively favorable position even in difficult environment. We will continue to pursue our long term strategy to simplify hiring because hiring continues to be a coffee.
And inefficient process, our goal is to make it easier and faster for people to get jobs.
We will continue to invest in AI.
And machine learning to further automate manual recruiter tasks and increase.
Human productivity. This will also result in important investments in collaboration across all of our SBU and to improve our productivity.
We believe the lack of innovation.
Again in this industry is.
Is partly due to the fact that.
When economic downturns occur every six to 10 years.
Most HR companies fail to keep investing in the future.
We believe that we have prepared ourselves.
We continue to make strategic investments.
During this downturn.
We will care.
We prioritize and control all investments and costs.
However, we will not manage our business by targeting recent margin levels.
In HR technology.
We believe that operating our business with a long.
And our view is critical to achieving the best results for job seekers and.
Lawyers.
Thank you.
Moving to the merchant solutions business in Japan.
Okay.
You see the current situation.
The outlook for the business environment in the next fiscal year.
In Japan, as we discussed previously demand.
Is rising due to the recovery in economic activity from the pandemic, especially in the travel in 19 industries.
In HR solutions, R&D, Mike with easy Grace, while pumping those bonds began to act cautiously on hiring.
You mentioned earlier that the strategic investments are expected to exceed our initial expectations considering the business.
Environmental revenue result.
But we assume that the situation in the next fiscal year will be different assuming that the possibility of a recession we'd breathing.
Japan, as well as well and again future, we will balanced with strategic investments.
With cost control measures, while considering the business environment as we will do for HR.
Technology.
Yes.
Luckily.
We announced today the appointment of.
Katrina Lake as outside board of directors.
If she will be approved as outside board director at the AGM in June .
The percentage of outside Board director on the board of directors will be 50%.
And also three of H border.
Records will be women, what do you expect from her.
Katrina is the founder of stitch fix.
Okay.
Currently traded U S company that uses AI to streamline personal styling.
She has extensive experience.
Vince extending it isn't it.
In the U S stock market.
And he also has a wealth of knowledge starting as a director of several platform company.
I think for it to contribute to overseeing the management of our company, which operates a global netting business.
I believe that increasing the diversity of the board of directors, including gender.
<unk> experienced that startup or large companies nationality and age.
We will further promote the creation of new value for us.
Yes.
Thank you very much nickel now lets take questions from participants.
You'd hope we proceed so without a doubt the PTO Q&A session. If you have a question. Please use the Raphael hand button on the zoom I'm going eliminated please limit yourself and occupation.
We will accommodate two questions at a time.
So anyone with a question.
So MTR from Jefferies on <unk> Securities.
Okay.
And as it goes from different thank you.
I have two questions. The first question.
Yes in regards to the HR technology and image of increase of the unit price Apple transaction.
And if I heard you right.
In U S MDA buffer that operating with minus 33%, but the revenue decline has it gone some of the miles and so these are they going to price out.
Adobe is increasing so.
So.
He represents I'd like welcome are increasing and what I'd mentioned is that a bunch of new wells I think would explain beat them.
Reasons behind this trend and the second question is on the company wide body.
Martin.
<unk> for the company going forward and update.
The HR technology operation at Roy I imagine a solution in Japan with a possibility of downtown.
And so you have expressed your viewing without the potentially Ams operating costs, but any EBITDA margin that you're looking at a part of it or is there other beautiful throughout suppression initiatives that youre thinking along those.
Hi, Michael.
Questions. Thank.
Thank you very much for your question to begin with.
Yes.
How about in regards to the decrease in unified for <unk>.
And thank you for your question in that regard.
No.
I think Obama explain about this in the past.
So until now.
When there was a quick <unk>.
I've been there the Atwood Zebu example, something like an advertisement we actually Todd.
But over the medium to long term.
So I think that albeit a customer in other words, the successful hiring and so it would be successful hiring.
Okay album user perspective is also a success and so.
As many people looked at Hardie postings and so.
Like is.
Apple payment I think we continue to do that then we start to think that the business I should just to show adient postings as many people as possible and so.
We want to if I look at the successful data customers and the success of <unk>.
And we're going to charge at the end of that if we decide to do more of that than what we've described on past calls.
And when there was an application and the applicant and quality.
So very high.
And finally within 72 hours.
Willing to pay up all that type of benefit we were able to confirm that.
That will happen.
So I think we have started to test that and as I explained.
Previously so this type of customer.
If they are convinced.
With this type of usage and we are seeing at the type of commodity prices.
Graduates, but awful a lot of customers, we have done a number of tenants.
But just on <unk> and not just looking at it or digest, the quick but our data.
And when there is an application and then charges incurred those.
We are doing that type of a test as well.
Those are rather than as such.
Per se Malay a recommendation and so using machine learning.
And so if there is disciple them at a candidate would be suitable.
So almost appropriate for this type of a job and to be able to show that to the employer tax items.
As such an initiative all of them are perspective, setting up an ease of use.
And to Sotheby's of humidity, so that type of initiative to go to something that we are well.
Clicking on cyberpunk parental leave.
And the amount that we charge by the customers that use our increasing gradually and I apologize repeating it.
Many times.
But what is most important is.
Yes.
The user side and for those who are seeking jobs out there a bit of a complaint snowfall.
And was that they apply to tangle 'twenty postings, but there'd be no required at all and that being the biggest complaints and the files and so on.
Within 72 hours.
Okay.
<unk> have had refi makes and by mixing that with them on the charges.
From a user perspective.
Able to Atlanta results.
Some are at a very quick.
Education after what I want you to help them.
We need to view of where that would come down in Melbourne.
And at one point the value of ink refill and as a consequence of that the amount is increasing and so what I'm describing.
Before the advertising obviate npls come down, 33% and the revenue coming down, but it got to a point so many percentage points that's noticed with them.
Lee the consequence out of we ended up with some of the situations.
And so here various outcomes and we won't do that I worked with him.
I think these outcomes and we want to charge and in line with that ended type of initiatives are now starting to pay off their results.
That would be my response to your first question Don.
Second question.
The EBITA margin how are we thinking about this.
For which.
No I haven't mentioned is on a number of locations in Ohio.
Others will adopt for a company like us our.
The way, we conduct homage I related business.
We have a 30 face difficult situations many times in a bottle and so windows.
Both on a situation occur than women.
Is that an EBITDA target at a certain level then we end up.
Using a very important investment for a medium to long term growth and we've done that in the past.
Of course, we are targeting to have a higher EBITDA margin that is true but rather.
Albeit number or about investment on IBD.
The projects, we want to welcome prioritizing visa amo carefully and as a consequence of doing that we will achieve that these level of EBITDA margin and that's it.
Kind of how the management approach and I would like to continue in the future as well and so.
So it is not the case that we have a particular EBITDA margin that way.
We are targeting that as we the outbreak I hope I answered your question. Thank you very much.
If there is a follow up on that okay. In the first time that a question not a quick charge, but on the application of a surcharge.
So what kind of how many percentage of how the contracts are all based on this is there any hint as to the scale of this summer.
Well at this point in time.
Okay.
We hope I'm, Eric Mike previously we have field.
During the testing phase.
And telephone number but.
Yes.
But the case that the bad debt charge of increase and just based on the quick Amit.
<unk>, it's a very big initiative that we are doing together.
As I explained it.
Pool for example, there are still agile posting cycles or a shortage of people.
But that's that we are seeing a decrease in employee willing to spend to hire.
People, but so what.
They're doing is they're starting to feel those are the openings that a mustang appeals, but Tom.
For this type of workout, where they're not making much money.
Hey, guys, becoming zero yen, becoming obese, but theres no painful those are all key openings, where they really wanted the patio and that is the basis upon which the idea of a charter type of increase and stuff.
So this is an additional explanation of edibles because I hope this answered your question. Thank you.
Thank you so Jpmorgan Securities Mori San please.
Yes that is money from Jpmorgan. Thank you very much for the opportunity. My first question is on related to the earlier question.
So this time volume and unit price as a result of work.
With HQ if possible.
But what was the trend in the second quarter.
The unit price is just a result until it's probably hard to see or foresee but at a time.
Okay.
Now the situation depending more on.
Foreseeable you said, but this year or next year.
Okay.
The volume May decline significantly so.
All right.
How will the current measures you are taking probably resonated with the user eubank or wouldn't be macro economy environment is changing dramatically you need to do experiment and test.
A little more so how do you plan to proceed which are perfect.
And are you thinking of taking going forward. My second question is also on HR technology.
In the non U S markets.
Correct me if I'm wrong.
Strong you said UK and Germany are strong.
Non U S.
<unk> the trend outside of the U S.
The way to see the job of booking trend what kind of timeline.
Will you implement these measured outside of it.
If you could share some information. Thank you very much. Thank you.
First of all.
We wanted to read our value to our users.
And clients.
Okay.
And how we think it is being evaluated by our users and clients.
Yes.
Well, we have very simple questions for example.
Okay.
Hey.
Okay.
But yes advertisement recruit any advertisement is viewed by 1000 ish how much you plan to pay it out if you'd like 1000 or 100 applied now of the 100 applicants.
The real high quality talents that you would very much.
I'd like to ask if only three very talented people applied I'm wondering you're willing to pay.
And or.
How much are you willing to pay if you pay at the point of recruitment at the point of hiring.
Oh, yes.
I do want to ask a question.
Clients.
I may have said.
This before.
But at the successful hiring.
Okay.
How much are they the client bank.
For example, 25% to 35% of the initial salary or maybe 100% or 50% in some industries.
But if it.
How much are you willing to pay when 1000 people view then the answer is maybe 10000 or 20 Kelvin again.
So in.
And Heath.
We work to fill the positions.
This way of receiving money or receiving payments.
May be favored by some Anthony but.
Let's see.
Uh huh.
I'll respond to these areas within 72 hours.
For example.
Pay 20000 yen.
MTV would like so many people so many people.
And select image at the front here, good and account had one or two people.
So through this process.
We have.
It changed the conventional process of identifying sites and thanked part still had some resistance.
Okay. So, let's say within 48 hours or 72 hours or they say what a weekend.
And even some days or some companies may say, we have they are way better off.
So.
For the applicants.
And of course market whereby.
And so we changed the way we charge.
And bill and half of it as long as get used to the process and change their behavior, we're trying to do that.
But.
Yeah.
It's behavioral change is required.
I'd like changing everything overnight, we need to gradually change the biggest clients' behavior overtime.
Cautiously.
So towards next year.
Oh yeah.
It's not where we're trying to do this and they agreed a great speed to offset the impact.
Higher volume device are we are trying to talk with our customers in a detailed meticulous fashion so that they will change their behavior for large companies.
It is even more.
For complex, how there may be bold in charge of different folks different jobs. So.
So overall, we think we are being recognized.
And good feedback, but there are still many challenges to overcome.
So I hope that answers your question.
And in the non U S markets.
Okay.
Our initiatives are litter is to increase our value outside of the U S.
And I alluded to earlier.
When we look at the lease.
We're market alone.
Sure.
In case of wage salary.
In the U S wage goes up.
Normally Andy and we congratulate mining.
U S unemployment.
So more to 14, 9%, but in Europe .
Six 9% in April 2020.
Next at <unk>.
78% in August and is now down to 6%.
Unemployment is low compared to the U S volatility Europe was not that volatile.
You know in Japan.
We don't even have that level of volatility.
The labor market.
It's still healthy in the first week in the U S. The unemployment.
And now recovering and that did not happen in Europe .
Now the scatter market.
In Europe .
We have started artists.
Compared to the U S.
We're doing the test in Europe about one or two quarters later than in Europe .
So I hope it answer your question, yes. Thank you.
One the first question.
For a large one.
Alright.
Thank you.
The implementation had not progressed much.
Sorry.
Don't have a good understanding.
We are progressing with our test and large corporate as well.
And it depends on country differs from country to country.
Large companies in many cases have IP system.
Subsequent integration for the companies that have deep integration with us.
And our tech more aggressively so theres still some variance variation, but the can itself is ongoing it's progressing.
Thank you very much.
So I am a marathon as a group have securities.
Go ahead. This is yamaguchi from Citigroup securities. Thank you for the opportunity to have diverse and hope you can hear me I would like to ask two questions. The first question.
Yeah.
Related to the former two questions, but despite the various efficacy would be in <unk>.
And the day that <unk> been working on to increase.
You said about methodology and Arizona, but so botox.
As we exit recession the employers.
Becoming more conscious all foundry quality and from the job seekers perspective.
There is a greater demand for high quality platform and so as a consequence folks with some defeat Agi.
And a charge increase outflow schedule tanks, so even if we start to see that in the numbers.
I think we've seen recovery period or do you expect that trend to continue especially that the first question.
Please ask your second question at the same time Crazy.
Okay. So the second question.
We don't know until Wednesday.
Efficient and will continue to no one knows but down day after it puts her decision.
And by the Dupont A&D recovering demand more than being macroeconomic recovery.
Do you feel that you'll be able to achieve greater growth index and if.
If you're happy to hedge out of head count out would you be able to accrete that on adding recoveries and Aussie fathers.
They are slowing down our hiring them the engineer's legato scientists.
<unk> competed for.
He made it easier for you to hiring people and what do you intend to still implement on our controls and so please respond to these questions. Please.
Thank you.
So even after the first question.
The changes in the macroeconomic condition has led to the going to charge a briefing in our product improving and that is later too.
The charging.
I think we're seeing now being able to look at that is to separately well we have been doing a lot of it before.
Yes.
And statistically significant down be it attests.
And so this can only be use our disciple frameworks and our customers are going to charge offs.
Increasing full months or it depends on what has changed from people that we have all been looking at that at ease on in quite detail based on the legacy framework that we're using but we are able to check.
These are the details on pain relief, but they won't be bumped explained at the upper body.
You may be remind us on a viewpoint of people thing and it has also on base, which will be reflected through the finals and the outcome is that mixed but not in regards to the beat appropriate to let us know we have been able to identify ideal compounded by Daragh Quinn.
Beliefs, and B rebound from recession, agile second point down.
And can we achieve that rate of recovery than Peter macroeconomic recovery.
Got it.
And.
Lee the macro a labor market that situation and I might be repeating myself, but.
The situation on the macro labor market and as a product and good morning.
Our platform has been improved.
I want to separate these two by briefly.
Thank you Pam explanations of pay for example, before Covid.
In U S.
In seven to $7 5 million.
So posting low double openings right now.
We are at $11 million, and so a $7 million whichever one 5 million pounds.
To return to the post our pre fall that nimble is likely to occur.
Cause a recession.
And then added roughly 500019, we mentioned Evo beneath Adam <unk> million <unk> 5 million.
And that would be the worst case scenario.
For diabetes that $6 million five millions out of opening things.
So okay.
$11 million and the volume will come down by half, but as I have explained.
This is a our improvements are on four day product and for example, very briefly give data argument charges.
Doubled than the revenue will not change.
I don't know what that what we were able to do it or not but that is the kind of thing we're working on and off of that antibody.
If you look back over our past history recessions do occur.
Also something up.
Okay.
70 is improvement after artificial info.
If we take a long term perspective, whether it be U S or Europe .
Then that will be more people die and then B if people.
Having introduced won't be Netherlands at that anybody is now definitely shifting too.
Okay.
As though the shortage of labor if not why.
City resolve them all that easily afford a structural perspective, <unk> totaled $7 5 million.
The two 8 million, an $8 million or postings that could occur.
And at that point in time, if the value that we provide has improved since then to get a charge.
Increased by 50% or 80% of any pathway to occur then double reflecting too.
To our revenue and our profit hopefully.
Well, Dave we make something nobody wants that.
Anthem becomes the macro trend W and product improvements, but they can be in a charge and if you actually motivate a tooth disciple thinking could be applicable.
And so.
Williams at times, they're going to charge.
So I think we'd be in who can achieve all three mode.
Done well gradually from an auction model.
Please proceed intermodal changed say for example in a particular area.
Okay.
I will say for example added five experienced Theres a license when we actually on the <unk>.
Liquidity, but from them with disciples on ops.
Tim.
We are currently.
Getting the price and the African Vitale.
That type of conflict is no lift likelihood go now understood. Thank you very much. Thank you.
Thank you.
It is time so.
I'm sorry, we can answer all your questions, but with that we will close of the <unk> earnings call. Thank you very much.