Q3 2025 Recruit Holdings Co Ltd Earnings Call
Unknown Executive: Q3 FY 2024 Earnings Conference Call.
Unknown Executive: This call is a simultaneous translation of the original call in Japanese and translation is provided for the convenience of capital markets participants only.
This call is the simultaneous translation of the original call in Japanese and translation is provided for the convenience of capital markets participants only I am mizuho from IR and PR and joining me today is <unk> senior Vice President corporate strategy and Investor Relations of recruit holdings. The Q3 financial results presentation video and transcript where upload.
Mizuho Shen: I am Mizuho from IRNPR and joining me today is Junichi Arai, Senior Vice President, Corporate Strategy and Investor Relations of Recruit Holdings. The Q3 financial results presentation video and transcript were uploaded to the IRNPR website at 3.30 p.m. today.
Speaker Change: To the IR website at 330 P. M. Today today, we will start with June's opening remarks, followed by a Q&A session now I pass the cultigen. Please go ahead.
Unknown Executive: Today, we will start with Jun's opening remarks followed by a Q&A session.
Junichi Arai: Now I pass the call to Jun. Hello, everyone. Thank you very much for your time today.
Speaker Change: Hello, everyone.
Speaker Change: Thank you very much for your time today.
Junichi Arai: Before I take your questions, I would like to summarize the financial results presentation that we released today. Among the four highlights discussed in the presentation, the first one is the consolidated results for Q3. As you're aware, starting next fiscal year, HR Solutions in Matching and Solutions is scheduled to be shifted to HR technology. In advance of that, we have been moving the job advertising service within HR Solutions to Indeed Plus since the end of January last year. As a result, revenue in matching and solutions overall decreased. However, revenue in HR technology and in Japan staffing increased.
Speaker Change: Before I take your questions.
Speaker Change: I'd like to summarize the financial results presentation that we released today among the four highlights discussed in the presentation. The first one is the consolidated results for Q3.
Speaker Change: As you're aware starting next fiscal year HR solutions in matching and solutions is scheduled to be shifted to HR technology.
Speaker Change: In advance of that we have been moving the job advertising service within HR solutions to indeed, plus since the end of January last year.
Speaker Change: As a result revenue in matching and solutions overall decreased however revenue in HR technology and in Japan staffing increased.
Junichi Arai: and Consolidated Revenue increased 3.5% to 896.9 billion yen.
Speaker Change: And consolidated revenue increased three 5% to $896 9 billion yen.
Junichi Arai: We would greatly appreciate it if you could revise your financial and valuation models in preparation for the segment changes taking effect next fiscal year. The second highlight is the revised full year guidance. for the fiscal year. Based on the results for Q3, We have now revised it to a single figure. at the upper end of the range of the revised guidance from November.
Speaker Change: We would greatly appreciate it if you could revise your financial and valuation models in preparation for the segment changes taking effect next fiscal year.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: The second highlight is.
Speaker Change: Is the revised full year guidance.
Speaker Change: For the fiscal year.
Speaker Change: Based on the results for Q3.
Speaker Change: Yeah.
Speaker Change: We have now revised it to a single figure.
Speaker Change: At the upper end of the range of the revised guidance from November.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Yeah.
Junichi Arai: Third is regarding the results of HR technology. U.S. revenue for Q3 on a U.S. dollar basis increased year-on-year in line with our expectations, even though the number of open jobs continued to decline year-over-year. The rate of increase in revenue per paid job ad exceeded the rate of decrease in the number of paid job ads due to continued monetization progress. Quarter over quarter. Q3 revenue decreased as hiring activities moderated due to the expected typical holiday seasonality.
Speaker Change: Third is regarding the results of HR technology.
Speaker Change: U S revenue for Q3 on a U S dollar basis increased year on year in line with our expectations, even though the number of open jobs continued to decline year over a year.
Speaker Change: The rate of increase in revenue per paid job add exceeded the rate of decrease in the number of paid job ads due to continued monetization progress.
Speaker Change: Quarter over quarter.
Q3 revenue decreased as hiring activity moderated due to the expected typical holiday seasonality.
Junichi Arai: Our Outlook for Q4. is based on the assumption that the trend of job postings in the U.S. labor market in 2004 remains unchanged. While the outlook for Japan and the rest of the world has been revised lower compared to the November outlook, Most of this revision is due to our assumption that U.S. dollar would be stronger than expected in our Q4 assumptions.
Our outlook for Q4.
Speaker Change: Is based on the assumption that the trend of job postings in the U S labor market in Q4 remains unchanged.
Speaker Change: While the outlook for Japan, and the rest of the World has been revised lower compared to the November outlook.
Speaker Change: Most of this revision is due to our assumption that U S dollar would be stronger than expected in our Q4 assumptions.
Junichi Arai: We will provide our market outlook for the next fiscal year in May when we announce full year financial results and guidance.
Speaker Change: We will provide our market outlook for the next fiscal year in May when we announced full year financial results and guidance.
Junichi Arai: Fourth, update on share repurposes. The largest share repurchase program to date, which began in July last year, was completed on February 7th. We will appropriately consider a new program taking into account our investment capacity, the stock price level, market conditions, and the forecast of our financial position.
Speaker Change: Fourth.
Speaker Change: Update on share repurchases.
Speaker Change: The largest share repurchase program to date, which began in July last year.
Speaker Change: Was completed on February 7th.
Speaker Change: We will appropriately consider a new program taking.
Speaker Change: Taking into account our investment capacity the stock price level.
Speaker Change: Market conditions.
Speaker Change: And the forecast of our financial position.
Unknown Executive: I will now take your questions. We will now take your questions. If you have a question, as always, please click on the Zoom raise hand button.
Speaker Change: I will now take your questions.
Speaker Change: We will now take your questions. If you have a question as always please click on the zoom right hand button. Please on mute before asking your question, we will accept up to two questions at a time.
Unknown Executive: Please unmute before asking your question. We will accept up to two questions at a time.
Minami Munakata: First of all, Goldman Sachs Securities, Munakata-san, please go ahead. This is Munakata from Goldman Sachs. Thank you for this opportunity. Can you hear me all right?
Speaker Change: First of all Goldman Sachs Securities Monaco, San Please go ahead.
Speaker Change: Okay.
Speaker Change: Now this is managua from Goldman Sachs to thank you for this opportunity can you hear me all right.
Unknown Executive: Yes, we can. Thank you.
Speaker Change: Yes, we can.
Speaker Change: Thank you.
Minami Munakata: I have two questions. And I'm going to ask questions altogether. First is about the HR tech. Business in the U.S. market and monetization-related efforts have made progress, and the union prize Growth rate increased, the volume growth rate. And I believe the trend continues to be the same from Q2, but I would like you to give us some more color on it. For example, as you talked about in the previous conference call, urgent hiring matching candidates, are those functions functioning or are there other factors? If possible, can you please talk about the change in how the volume and the enterprise movements differ from that in Q2?
Speaker Change: Two questions.
Speaker Change: And I'm going to ask.
Speaker Change: Our questions altogether first is about the HR tech.
Speaker Change: Yes.
Speaker Change: In the U S market, our monetization related efforts have made progress and.
Speaker Change: And the unit price.
Speaker Change: Growth rate increased a volume growth rate.
Speaker Change: And I believe the trend continues to be the same from Q2, but I would like you to give us some more color on it for example of you talked about in the previous conference call. Our urgent are hiring matching candidates are those all functions are functioning or are there other factors.
Speaker Change: If possible can you. Please talk about of a change in how the volume and the unit price movements.
Speaker Change: Differ from that in the Q2 and my second question is your management structure from April I have taken a look at your release. So our iPhone is going to become our CFO and our senior Executive officer Congratulations.
Minami Munakata: And my second question is your management structure from April. I have taken a look at your release, so Arai-san is going to become a CFO and a senior executive officer. Congratulations. So Arai-san is going to become the CFO of the company. When it comes to strategy, decision making, the speed and relationship with the capital market, will there be any changes in that regard? I would appreciate any information available at the moment.
Speaker Change: So arise on is going to become the CFO of the company.
Speaker Change: When it comes to strategy decision, making of the speed and our relationship with the capital market will there be any changes in that regard.
Speaker Change: I would appreciate any information available at the moment. Thank you.
Junichi Arai: Thank you. Thank you for your questions. To your first question. As you said, your understanding is correct. We have been continuing our existing initiative. from this third quarter, there is nothing new. But as you said, urgent hiring, candidate targeting, and matched candidates. are the efforts that we've been making steadily in order to appeal to customers.
Speaker Change: Thank you for your questions.
Speaker Change: To your first question.
Speaker Change: Yes.
Speaker Change: As you said your understanding is correct, we have been continuing our existing initiatives.
Speaker Change: From this third quarter there is nothing new.
Speaker Change: But as he said urging hiring candidate targeting unmatched candidates.
Speaker Change: Are the efforts that we've been making steadily in order to appeal to customers.
Junichi Arai: And as I mentioned in the beginning, third quarter seasonally tends to have weaker activities. Especially, I am referring to the U.S. market situation, but I believe we were able to make good efforts. Despite Those Circumstances.
Speaker Change: And as I mentioned in the beginning.
Speaker Change: Third quarter.
Speaker Change: The seasonally tends to have a weaker activities.
Speaker Change: Especially I am referring to the U S market situation, but I believe we were able to make good efforts.
Speaker Change: Despite those circumstances.
Junichi Arai: A lot of people are already wondering what is going to happen next year. and the market condition would change. But that's that. We will continue to think about what we can do, what kind of good services we can offer with added value. That's what we will be steadily... Thank you for... We will be building on what we've already worked on so far.
Speaker Change: A lot of people are already wondering what is going to happen next year.
Speaker Change: And the market condition of what changed.
Speaker Change: But that's that.
Speaker Change: We will continue to think about what we can do what kind of services. We can offer with our added value. That's what we will be steadily.
Speaker Change: Thinking through.
Speaker Change: We will be building on what we've already he worked on so far.
Junichi Arai: I wish I could tell you what percentage for which item, but the situation continues to evolve and the change from the second quarter are closely interrelated. The number of clients, the number of jobs continue to change, so it is difficult to give you a concrete number. but the volume is declining overall. However, the increase in the unit price is more than offsetting that trend.
Speaker Change: I wish I could tell you what percentage of her which item, but the situation continues to evolve and of a change from the second quarter.
Speaker Change: Uh huh.
Speaker Change: Our closely interrelated the number of clients or number of jobs continued to change. So it is difficult to give you a concrete number.
Speaker Change: But the volume is declining overall.
Speaker Change: However, the increase in the unit price is more than offsetting that trend.
Junichi Arai: And also to your second question. My title is going to change but that is not really going to affect what I do as my duty in recruit our stances that our title does not affect what we do. In 2016 I joined the company. And our mission has been consistent. which is how we can continue to enhance the value of Recruit Holdings. I will continue to focus on enhancing the value of the company so that you can better evaluate and appreciate the value of the company, and that's what I'm going to pursue. So my job is going to.
Speaker Change: And also to your second question.
Speaker Change: My title.
Speaker Change: Yeah.
Speaker Change: Is that going to change, but that is not really going to affect our what I do.
Speaker Change: My duty.
Speaker Change: In Rickard, our stasis that are titled does not affect what we do.
Speaker Change: In 2016, I joined the company.
Speaker Change: And our mission has been consistent.
Speaker Change: Which is how we can continue to enhance the value of recruit holdings.
Speaker Change: I will continue to focus on enhancing the value of the companies without the U can.
Speaker Change: Better devaluate and appreciate all the the value of the company and that's what I'm going to pursue.
Speaker Change: So my a job or is going to.
Junichi Arai: be largely the same, and I will be doing And we handled questions that were somewhat more complicated. We're focusing on prepayment of for non-personal users, and getting some intentional replies to those requests and see if they can be informed by users and what we are doing. On training program and evaluation of customers and processes and procedures. We want to see them, not just reliably return our request but also get them on the right track and just saying how good or bad this is. and also I would like to contribute to the company, not only for the company, but...
Speaker Change: B are largely the same and I will be doing.
Speaker Change: Them at the same speed, but I'm, hoping to accelerate some of them.
Speaker Change: And also.
Speaker Change: Thanks.
Speaker Change: I would like to contribute to the company not only for the company.
Junichi Arai: Um, like yourselves, I was long working for a financial institution, so... I am hoping to become a role model for those of you who may start working in the business world after working in the financial institutions. That's the performance I'd like to present going forward. Thank you very much.
Speaker Change: But.
Speaker Change: Hum.
Speaker Change: [noise] yourselves Ah I it was a long working for a financial institution. So.
Speaker Change: I am hoping to become a role model all for those of you who may a I'll start working in the business world. After we're getting into financial institutions. That's the performance I'd like to present going forward.
Speaker Change: Thank you very much and if I will I'll learn from you and I will look forward to it. Thank you.
Unknown Executive: Yes, I will learn from you and I will look forward to it. Thank you. Thank you very much.
Speaker Change: Thank you very much so next in the World Securities on the phone please.
Unknown Executive: So next in the World Securities, Ono-san, please. Can you hear me?
Speaker Change: Can you hear me yes.
Unknown Executive: Yes, please go ahead. Thank you very much for this opportunity.
Speaker Change: Yes. Please go ahead. Thank you very much for this opportunity I'm nowhere from.
Unknown Executive: I'm Nomura from Nomura Securities, ONO. So first is the guidance for the HR tech. So your accuracy of the revenue is very high, I think, at the beginning of the year and the mid-year revision and this time. 73, 74 million dollars remains pretty much unchanged. But what is the reason? So macroeconomy and your internal measures, your forecasting is becoming more accurate or? So the revenue-linked expenses are adjusted, and that is why you have this number? Or why is your forecast so accurate now, if you could give us your line of thinking?
Speaker Change: And the more securities.
Speaker Change: Ono. So first is the guidance for the HR Tech.
Speaker Change: So your accuracy of the revenue is very high I think.
Speaker Change: At the beginning of the year and the mid of your revision at this time.
Speaker Change: The 70 $374 million as two it remains pretty much unchanged, but what is the reason.
Speaker Change: So macro economy, Andy your internal measures, you're forecasting is becoming more accurate or.
Speaker Change: So the revenue linked expenses, our adjusted and that is why you have this number or why is your forecast. So accurate now if you could give us your line of thinking that is my first question.
Unknown Executive: That is my first question.
Unknown Executive: My second question is about buybacks. So you consider various factors. You mentioned various factors, of which, which one? Are you watching the most or? Not deciding because one factor has not materialized. Any particular element?
Speaker Change: My second question is about buybacks.
Speaker Change: So you consider various factors.
Speaker Change: You mentioned, the various factors of which which one.
Speaker Change: Are you watching the most or.
Speaker Change: Not deciding because one factor has not materialized any particular element.
Junichi Arai: Thank you very much.
Speaker Change: Thank you very much.
Junichi Arai: to your first question. Thank you for taking it as a praise. Thank you so much.
Speaker Change: To your first question. Thank you for I take it as appraise. Thank you so much.
Junichi Arai: Army Guidance It was range and in November it was still a range. Uh, our floor was raised in the November range. This time... We came down to a single number to the higher end of the range. So we are trying to meet this number in the range. The foreign exchange goes up and down, which is uncontrollable, but... Our guidance, our forecast in the U.S. and Japan and in other areas, we are Capturing and monitoring the latest information very frequently, so that is what we do internally. And if something happens, we try to communicate to you as soon as possible.
Speaker Change: Our main guidance it was range and in November it was still a range.
Speaker Change: Oh, our floor was raised in the November range. This time.
Speaker Change: We came down to a single number and to the higher end of the range.
Speaker Change: So.
Speaker Change: We are trying to meet this number in the range.
Speaker Change: Of the foreign exchange goes up and down which is uncontrollable but.
Speaker Change: Okay.
Speaker Change: Our guidance.
Speaker Change: Forecast in the U S and Japan and in other areas.
Speaker Change: We are.
Speaker Change: Capturing and monitoring the latest information very frequently so that is what we do internally.
Speaker Change: And if something happens we tried to communicate to you as soon as possible.
Junichi Arai: For this fiscal year. Mr. Idekoba talked about this in the very beginning, the environment and the number of jobs. We said it is expected to decline. Which is correct, which turned out to be the case. So our guidance was developed based on that forecast, especially on the U.S. And this remained unchanged. That is why we came to this point.
For this fiscal year.
Mr. <unk> talked about this in the very beginning the environment and the number of jobs.
Speaker Change: We it said is expected to decline.
Speaker Change: Which is correct, which turned out to be the case.
Speaker Change: Sure.
Speaker Change: So our guidance was developed based on that forecast, especially on the U S.
Speaker Change: And this remained unchanged and that is why we came.
Junichi Arai: And Japan, there's a shift to Indeed Plus. So this was something we can control to a certain extent. The shift may have been a bit slower than the initial anticipation, but it is in line with our plan, basically, and in Europe and other areas of the world, like the U.S.
Speaker Change: It came to this point in Japan.
Speaker Change: There's a shift to indeed plus.
Speaker Change: So this was something we can control to a certain extent.
Speaker Change: Yeah.
Speaker Change: The shift may have been a bit slower than the initial anticipation, but it is in line with our plan basically and in Europe and other areas of the world.
Speaker Change: Like the U S.
Junichi Arai: The Initial Forecast. has been the case till the end of the year, and so our view on the market did not change or waver, and that is why I think we were able to do this.
Speaker Change: The initial forecast.
Speaker Change: Has been the case till the end of the year and so.
Speaker Change: Our.
Speaker Change: On the market did not change our waiver and that is why.
Speaker Change: I think we were able to do this.
Junichi Arai: Second question, it's not that any particular factor has not materialized, we're thinking of what will happen next year, and as I mentioned in the past. What kind of investment or ways of spending money will enhance our value the most? We think from that perspective. So strategically significant M&A may not happen in the short term, but if there is something that can enhance our value in the medium to long term, we will consider them. And if we do not have such deals in a timely fashion. We will consider share buyback. And the percentage is quite low now, but.
Speaker Change: Second question, it's not that to any particular factor has not materialized.
Speaker Change: We're thinking of what will happen next year.
Speaker Change: And as I mentioned in the past.
Speaker Change: Or what kind of investment or ways of spending money will enhance our value. The most we think from that perspective.
Speaker Change: So.
Speaker Change: Strategically significant.
Speaker Change: M&A may not happen in the short term, but if there is something that can enhance our value in the medium to long term, we will consider them.
Speaker Change: And if we do not have such deals in a timely fashion.
Speaker Change: We will consider share buybacks.
Speaker Change: And the percentage is quite low now but.
Junichi Arai: our share is partially still held by Japanese business companies. Although the proportion is declining. and those companies may decide to sell our shareholdings so at those timings We will consider what will allow us to use money in the most effective and flexible fashion.
Speaker Change: Our share.
Speaker Change: Is partially still held by Japanese business companies.
Speaker Change: Although the proportion is declining.
Speaker Change: And those companies may decide to sell all of our shareholdings so at those timings.
Speaker Change: We will consider.
Speaker Change: What a wheel.
Speaker Change: Allow us to use money in the most effective and flexible fashion.
Junichi Arai: So we said we will do buyback until July but two deals, two big deals were materialized with tough net and so at the end of last week we were able to complete this earlier than originally anticipated and so the amount and the length may change accordingly. So what will be the best for us going forward in the next two years? We need to want to bring the cash and cash equivalents to the optimal level. We said that in May so we will think what we need to do to make that happen. We are looking very meticulously in a fine grained fashion.
Speaker Change: So we said we will do buyback until July but the two deals are two big deals the war materialized with tough Ned.
Speaker Change: And so.
Speaker Change: At the end of last week.
Speaker Change: We were able to complete this earlier than originally anticipated and so the.
Speaker Change: The amount and the lengths may change accordingly, so what will be the best for us going forward in the next two years, we need to work to bring the cash and cash equivalents to the optimal level. We sit that in may. So we will think what we need to do to make that happen.
Speaker Change: We are looking very meticulously in a fine grained fashion. Thank you very much I hope. This answers your question. Thank you item.
Junichi Arai: Thank you very much. I hope this answers your question.
Unknown Executive: Thank you, Arai-san. Thank you.
Speaker Change: Thank you.
Unknown Executive: Next is SMBC Securities, Maeda-san, please go ahead. Thank you. I have two questions. First is, well indeed PLOS-E has been the ear, so what has been the impact? HR Tech. Japan Business. How much impact have you had up to this third quarter? Can you also give us numbers to explain? That's my first question.
Speaker Change: Next is F N B C Securities microphone. Please go ahead.
Speaker Change: Thank you.
Speaker Change: I have two questions.
Speaker Change: First is well indeed policy has been the ear. So what has been the impact.
Speaker Change: HR Tech.
Speaker Change: Japan business, how much impact have you had.
Speaker Change: Up to the third quarter can you also give us numbers to explain that's my first question and.
Unknown Executive: And secondly, the labor market situation. At the beginning of the fiscal year, you were saying that the market will recover in the next fiscal year and you will be shifting your management towards that change. but in this Q3 and Q4. Can you please talk about your active investments, and if possible, what is your plan for the next fiscal year? I would also appreciate it if you can include accounting items as well as numbers. Thank you.
Speaker Change: Secondly, the labor market.
Speaker Change: Situation.
Speaker Change: At the beginning of the fiscal year, you were saying that the market will recover in the next fiscal year and he will be shifting your management towards that change.
Speaker Change: Yes.
Speaker Change: In this Q3 and Q4.
Speaker Change: Can you please talk about you're up to the investments and if possible. What is your plan for the next fiscal year I would also appreciate it. If you can include accounting items as well as our numbers. Thank you.
Junichi Arai: Thank you for your questions. Japan Business As you can see. HR Tech Indeed Plus is where the revenue is shifting to. at the end of March. new graduates business will remain but everything else is going to be transferred to the HR technology Indy Plus business. That is a determined and announced path. And we have been making a progress. based on Japanese yen, how much would it be? Well, compared to the initial expectation, I think we're largely in line. Perhaps the progress is... weaker but compared to 2023 fiscal year In terms of revenue in HR tech, when you look at Japan revenue.
Speaker Change: Thank you for your questions.
Speaker Change: Japan business.
Speaker Change: As you can see.
HR Tech Indeed, plus is where the revenue is shifting too.
Speaker Change: At the end of March.
Speaker Change: New crush spreads business will remain but everything else is going to be transferred to the HR technology, Indeed class business.
Speaker Change: That is a determined and announced paths.
Speaker Change: And we have been making a progress.
Speaker Change: Based on Japanese yen, how much would it be well.
Speaker Change: Compared to the initial expectation I think we're largely in line.
Speaker Change: Perhaps the progress is a.
Speaker Change: Weaker, but compared to 2023 fiscal Lear.
Speaker Change: In terms of revenue.
Speaker Change: In HR Tech when you look at Japan revenue.
Junichi Arai: I think about 60% is the size of growth. And the majority of that is coming from. Indeed, plus. which is currently under HR technology. So, there have been some fluctuations in the number, but they are largely in line with our anticipation on a full year basis.
Speaker Change: I think about 60% is the size of growth.
Speaker Change: And the majority of that is coming from.
Speaker Change: Ah Indeed, plus.
Speaker Change: Which is currently under HR technology.
Speaker Change: So there has been some fluctuations in the number but.
Speaker Change: They are largely in line with our anticipation on a full year basis.
Junko Yamamura: Junko Yamamura, Yoshitaka Nagao, Junko Yamamura, Yukari Housui, Recruit Holdings. As HR technology, we will be expanding the Japan business. And we're looking forward to seeing it.
Speaker Change: Of course, we need to promote understanding of our clients. So that we can encourage them to use more and that is going to bear fruit.
Speaker Change: Moving forward. So this shift is not the end, but we need to so goes on growing it and that is the critical part so from next fiscal year.
Speaker Change: Nature of technology are we will be expanding the Japan business.
Speaker Change: And we're looking forward to seeing it.
Junichi Arai: That's your first question, and your second question was. shift in the management or Capital. or Power Investment. Well, as I mentioned earlier, when we have a better economic situation. It will be too late to hire engineers when that already has happened, so it is important to Take little steps. to improve efficiency of our management. That will make us adaptive to the changes in the environment. So that's what we will continue to work on. and Advertising Expenses. We will be carefully looking at the situation. to decide to whom we should advertise. And we are thinking that in each market.
Speaker Change: That's to your first question in your second question was.
Speaker Change: Yes.
Speaker Change: A shift in the management.
Speaker Change: Or capital.
Speaker Change: Or power investment.
Speaker Change: Well as I mentioned.
Speaker Change: I mentioned earlier, when we have a better economic situation.
Speaker Change: Oh, we.
He will be too late to hire engineers are when that are already has happened. So it is important too.
Speaker Change: Take little steps.
Speaker Change: To improve efficiency of our management.
Speaker Change: That will make us adapted to the changes in the environment.
Speaker Change: So that's what we will continue to work on.
Speaker Change: And and advertising expenses.
Speaker Change: We will be.
Speaker Change: <unk> carefully looking at the situation.
Speaker Change: To decide to whom we should advertise.
Speaker Change: And we are thinking that in each market.
Junichi Arai: When we announced the full year results in May, And when we provide you with the outlook on the margin, I think I will be able to give you some more color on this topic. We have made our best efforts in this fiscal year. But when it comes to what we will be doing, where we will be investing in next fiscal year, we hope you can wait until the May session. In this update of the guidance.
Speaker Change: When we announced the full year results in May.
Speaker Change: And when we provide you with the outlook on the margin I think I will be able to give you some more color on this topic.
Speaker Change: So we have made our best efforts in this fiscal year.
Speaker Change: But when it comes to what we will be doing where we will be investing in next fiscal year. We hope week, you can wait until the Mi a session.
Speaker Change: In this update of the guidance.
Unknown Executive: Can you please follow up on your policy for the advertisement expenses in Q3? Well, for this fiscal year, we have not made any drastic changes. Understood. Thank you.
Speaker Change: Can you. Please I'll follow up on your policy for the advertisement expenses in Q3.
Speaker Change: Well for this fiscal year, we have not made any drastic changes.
Speaker Change: Understood. Thank you. Thank you.
Unknown Executive: Thank you very much.
Speaker Change: Thank you very much next question meet those securities what kind of assemblies.
Watanabe: Next question, Mito Securities, Watanabe-san, please. This is Watanabe from Mito Securities. Can you hear me?
Speaker Change: Yeah.
Speaker Change: This is what they love it for Mito Securities can you hear me yes. Please go ahead.
Unknown Executive: Yes, please go ahead.
Watanabe: I have two questions. HR technology. Two questions. So U.S. dollar based, U.S. business. You mentioned there are seasonalities. So on a year-on-year basis, it's plus 4.9%. So rather than absolute numbers, it is 4.9% improvement year on year. Is this a satisfying satisfactory number? That's my first question.
Speaker Change: I have two questions.
Speaker Change: HR technology.
Speaker Change: Two questions.
Speaker Change: So U S dollar base U S business, you mentioned there are seasonality.
Speaker Change: So on a year on year basis, it's plus four 9%.
Speaker Change: Yeah.
Speaker Change: So rather than absolute numbers.
Speaker Change: It is four 9% improvement year on year.
Speaker Change: Is this a satisfying satisfactory number.
Watanabe: Second question. in HR Technology. Recently, generative AI related topics are now drawing attention. So will you utilize generative AI to to do your business without increasing the headcount. Thank you for listening.
Speaker Change: That's my first question second question.
Speaker Change: In HR technology.
Speaker Change: Recently generative AI related.
Speaker Change: The topics are now drawing attention.
Speaker Change: So.
Speaker Change: You utilize a generative AI.
Speaker Change: Two.
Speaker Change: Yeah.
Speaker Change: To do your business without increasing the head count.
Speaker Change: Uh huh.
Speaker Change: We would like to see higher revenue without increase in people. So if you have any progress or anything you could share with us I'd appreciate it.
Junichi Arai: Thank you. So whether we can be satisfied with the result. It's hard to say that from our standpoint, but. The revised range, the guidance in the range we issued in November. This time we are in that range. So, you know. We are in line with our expectation. So as you rightly mentioned, Watanabe-san, including the seasonality. So compared to same term last year, it is 4.9% higher, but from second quarter onward, it is minus 6% on a US dollar basis. So. It is down from the same quarter last year, but... 2 on 2, but we are up 4.9% year on year.
Speaker Change: <unk>.
Speaker Change: So whether we can be satisfied with the results.
Speaker Change: It's hard to say that from our standpoint.
Speaker Change: But.
Speaker Change: The revised.
Speaker Change: The range the guidance in the range we issued in November.
Speaker Change: At this time, we are in that range.
Speaker Change: Yeah.
Speaker Change: So oh no.
Speaker Change: No.
Speaker Change: We are in line with our expectation.
Speaker Change: So as you rightly mentioned with all of a sudden including the seasonality.
Speaker Change: So <unk>.
Speaker Change: Compared to the same time last year. It is four 9% higher but from second quarter onward. It is minus 6% on a U S dollar basis. So.
Speaker Change: It is down from the same quarter last year budge.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Q on Q, but we are up four 9% year on year.
Speaker Change: Okay.
Junichi Arai: So I think we are putting up a good fight in the circumstances.
Speaker Change: So I think we are putting up a good fight in the circumstances.
Speaker Change: Yeah.
Junichi Arai: And to your second question...
Speaker Change: And to your second question.
Speaker Change: Yes.
Junichi Arai: So what is the most effective way of using our money? We are thinking hard. It's not to make our business easy. We are thinking more about the users, our clients. a more effective, more convenient product for our users and clients. That's what we want. And as a result. If that allows us to work more efficiently, that'll be great. So this is what all of us think, us and other companies, competitors. as well, and I think there are many ideas. The most important thing is the users. The User of the Job Seekers, to improve the convenience of the job seekers.
Speaker Change: So what is the most effective way of using our money we are thinking hard.
Speaker Change: It's not to make our business easy we are thinking more about the users are our clients.
Speaker Change: A more effective more convenient product for our users and clients, that's what we want and as a result.
Speaker Change: If we can if that allows us to work more efficiently that'll be great.
Speaker Change: So this is what all of us think us and other companies competitors.
Speaker Change: As well and I think there are many ideas.
Speaker Change: The most important thing is the users.
Speaker Change: The user of the job seekers to improve the convenience of the job seekers.
Junichi Arai: and our business clients. Corporate Clients to Hire Quicker. We hope that will be possible with our new tools and as a result. We may be able to do our business easier, but that is a second or a third priority.
Speaker Change: And our business clients.
Speaker Change: Okay.
Speaker Change: Corporate clients.
Speaker Change: Two higher quicker.
Speaker Change: We hope that will be possible with our new tools and as a result.
Speaker Change: We may be able to do our business easier, but that is a second or a third priority.
Unknown Executive: Thank you.
Unknown Executive: I hope this answers your question. Thank you.
Speaker Change: Thank you I hope this answers your question. Thank you.
Speaker Change: Thank you.
Kishimoto: Next is Mizuho Securities.
Speaker Change: Next with Mizuho Securities kitchen with the phone. Please go ahead.
Kishimoto: Kishimoto-san, please go ahead. This is Kishimoto of Mizuho Securities. Thank you for this opportunity. I only have one question. about the stock compensation expenses. I think it was 550 million. but that has been downgraded to $520 million. So compared to the expectation at the beginning of the year, has there been lower head count or has there been any revisit to this cost itself? So can you please explain the background of this change?
Keisha Motto: This is keisha motto of Mizuho securities. Thank you for this opportunity I only have one question.
Speaker Change: Yeah.
Speaker Change: Well about the the stock compensation expenses I think it was $550 million.
Speaker Change: But the husband downgrade it to $520 million.
Speaker Change: So compared to the the expectation at the beginning of the ear.
Speaker Change: Have you has there been lower head count or has there been any revisit two of his cost itself. So can you. Please explain the background of this change thank you.
Junichi Arai: Thank you. Thank you for your question. Developing these numbers is difficult, and there are multiple factors, including the change in the number of head counts and... Obviously, as a basis. We need to look at the performance. There is a constant update on this type of number. $30 million. change from the initial number. I think that is within the range that we expected at the beginning of the year. And there have been multiple changes to what we anticipated at the beginning of the year. So based on the number of headcounts or performance, we will be revisiting this number constantly.
Speaker Change: Thank you for your question.
Speaker Change: Developing these numbers are is a difficult and there are multiple factors.
Speaker Change: Including the change in the number of head counts.
Speaker Change: And.
Speaker Change: Obviously as a basis.
Speaker Change: We need to look at the performance.
Speaker Change: Yeah.
Speaker Change: There is.
Speaker Change: Constant update.
On this type of number.
Speaker Change: A $30 million.
Speaker Change: Change from the initial number.
Speaker Change: I think that is within the range that we expected at the beginning of the year.
Speaker Change: And are there have been multiple changes to what we anticipated at the beginning of the year. So based on the number of head count or performance. We will all be a revisiting. This number are constantly but of course when this number is doubled or reduced by half we would need.
Junichi Arai: But of course, when this number is doubled or reduced by half, we would need to be responsible for explaining it. But if this is The change that we're looking at of 30 million yen. This is within the anticipated extent.
Speaker Change: To they're responsible for explaining it but if this is.
Speaker Change: The change that we're looking at of 30 million yen I'm. This is within the anticipated extent. So can I assume that you have been able to hire unnecessary E head counts and this is just a small gaps that you're experiencing.
Junichi Arai: So can I assume that you have been able to hire necessary headcounts? And this is just a small gap that you're experiencing? Yes, exactly. Regarding the number of personnel. We have already Maid efforts. And we have not made any drastic adjustments other than the change that we made twice already. And it is not that we are falling short of what we had to hire.
Speaker Change: He has exactly regarding the number of personnel.
Speaker Change: We have already.
Speaker Change: <unk>.
Speaker Change:
Speaker Change: Made efforts.
Speaker Change: And we have not made any drastic adjustments other than the on the change that we made twice already.
Speaker Change: And it is not that we are falling short of what we had to hire understood. Thank you.
Kishimoto: Understood. Thank you.
Unknown Executive: Thank you very much.
Speaker Change: Thank you very much.
Irisawa: We do not have any other questioners, and if you would like to ask your question second time, we would like to welcome them. So Tachibana Securities, Irisawa-san, please. Hello. Thank you very much for this opportunity. So in the, I have a question on the marketing solutions. So the trend of each business remains unchanged, I understand, but the interest rate or the prices are rising. So by business area, are you anticipating any changes going forward? Could you follow up on that?
Speaker Change: We do not have any other questioners.
Speaker Change: And if you would like to ask for your questions second time, we would like to welcome them.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: So a catchup on the securities 80 silver from please.
Speaker Change: Okay.
Speaker Change: Hello.
Speaker Change: Thank you very much for this opportunity.
Speaker Change: So in the U I have a question on the marketing solutions.
Speaker Change: So the trend of each business remains unchanged I understand but the interest rate or the prices are rising.
Speaker Change: So by business area.
Speaker Change: Are you anticipating any changes going forward could you follow up on that and the other question is faas business impact so in the marketing solutions.
Irisawa: And the other question is SAAS business impact. So in the marketing solutions, revenue increased 7% increase. You are explaining that in each business domain, but. Is this a big enough impact, including the direction you're moving into? If you could elaborate, please.
Speaker Change: Revenue increased 7% increase you are explaining that in each business a domain, but.
Speaker Change: Is this a big enough impact, including the direction, you're moving into if you could elaborate please thank you.
Junichi Arai: Thank you.
Speaker Change: Thank you.
Junichi Arai: So, to your first question... As already announced, the environment and the trends are not that different. It is not changing that significantly. So. We think. We can. achieve the numbers as we have planned. which we have announced. So there are some unit price remains high and those individual factors, but Basically, no change in the trend from our initial forecast.
Speaker Change: So to your first question.
Speaker Change: As already announced of the environment and the trend or not.
Speaker Change: That different it is not changing that significantly so.
Speaker Change: We think.
Speaker Change: We can.
Speaker Change: Achieve the numbers are as we have planned.
Speaker Change: Which we have announced so there are some of the unit price remains high and those individual factors budge.
Speaker Change: Basically no change in the trend from our initial forecast now the ethos business impact.
Junichi Arai: Now, the SAAS business impact. So it has revenue of over 500 billion yen, so... The impact on revenue, how much increment we can enjoy in revenue. and how this impacts our other verticals are things to consider. But. It has positive impact on each vertical. That, I think, is the bigger factor. That is the value of SaaS business.
Speaker Change: Yeah.
Speaker Change: So it has revenue of over 500 billion yen so.
Speaker Change: The impact on revenue.
Speaker Change: Much increments or we can enjoy and revenue.
Speaker Change: And how this impacts our other verticals or things to consider but.
Speaker Change: Okay.
Speaker Change: It has a positive impact on each vertical.
Speaker Change: That I think is the bigger factor that is the value of Fas business.
Junichi Arai: So in the short term, as I've been mentioning. It's not so much increasing the FAS revenue, FAS business revenue, but it's more about how to increase the satisfaction of our business clients. and help the clients increase their sales and reduce their cost. So if we can do that. It will contribute to the each vertical and to the overall revenue and so. Increasing Child Revenue to increase the revenue of the marketing solutions. That is secondary.
Speaker Change: So in the short term as ive been mentioning.
Speaker Change: It's not so much.
Speaker Change: Increasing the size revenue faas business revenue, but.
It's more about how.
Speaker Change: Yeah.
Speaker Change: To increase the satisfaction of our business clients.
Speaker Change: And help the clients increase their sales and reduce their cost. So if we can do that.
Speaker Change: Yes.
Speaker Change: It will contribute to the each vertical and two the overall revenue.
Speaker Change: And so.
Speaker Change: Our increase in cloud revenue.
Speaker Change: To increase the revenue of the marketing solutions that is secondary.
Junichi Arai: Rather, the most important point, priority is. to help the revenue increase, the profit increase in each vertical, in each client.
Speaker Change: Rather the most important point priority is.
Speaker Change: To help.
Speaker Change: Help.
Speaker Change: The revenue increase the profit increase in each vertical in each our clients.
Speaker Change: Yeah.
Unknown Executive: Thank you very much. Thank you.
Speaker Change: Thank you very much.
Speaker Change: <unk>.
Speaker Change: Okay.
Unknown Executive: So the impact on each vertical. Can be reflected in numbers? Can it be quantified? Will it be reflected in numbers?
Speaker Change: Yeah.
Speaker Change: So the impact on each vertical.
Can be reflected in numbers can it be quantified.
Speaker Change: Will it be reflected in numbers.
Junichi Arai: The SAAS app has been introduced for quite some time. So... The more the amount that we handle, the higher the client's revenue profit will be. So if our application is used. The clients will be able to conduct their business with less shift staff. which means higher profit. so we can contribute to higher profit of the clients. So the vertical profit is already increasing in those clients that understand the value. So we are trying to push this further. Thank you.
Speaker Change: Oh the Sars.
Has been introduced for quite some time.
Speaker Change: So.
Speaker Change: Yeah.
Speaker Change: The more the amount that we handle the oh higher of the client's revenue profit will be.
Speaker Change: So if our application is used.
Speaker Change: The clients will be able to oh.
Speaker Change: Conduct their business with less shift of SaaS.
Which means higher profit.
So we can contribute to higher profit of the clients.
Speaker Change: So.
Speaker Change: The vertical of profit is already increasing in those clients that understand the value.
Speaker Change: So we are trying to push this further.
Speaker Change: Thank you.
Speaker Change: Thank you.
Unknown Executive: Next is Nomura Security. If all no sound, please go ahead. Thank you.
Next with Nomura Securities owner found please go ahead.
Thank you.
Unknown Executive: I have a follow-up question regarding Indeed. We have been continuing the test of various products in these three months. Has there been any increase or expansion in the scope? And as a result of the test, have you discovered any improvement in the customer experience value? I'm interested in learning such progress.
Speaker Change: I have a follow up question of regarding indeed.
Speaker Change: E having continuing the test of various product in these three months.
Speaker Change: Have there been any increase or expansion in the scope.
Speaker Change: And as a result of the test have you discovered any improvement in the customer experience value.
Speaker Change: I'm interested in learning such progress and the second question is.
Unknown Executive: And the second question is... indeed Europe which will be included in the rest of the world. You disclose for Japan and the U.S. if they are very clear. But when it comes to other regions, what is the progress against the plan? Can you please give us some follow-up response? Thank you.
Speaker Change: Indeed, a Europe, which will be included in the rest of the world you disclose for Japan, and the U S. If they were very clear, but when it comes to other regions. What is the progress against the plan.
Speaker Change: Can you please give us some awful first bonds. Thank you.
Speaker Change: Okay.
Junichi Arai: Well, to your first question. Testing, they can be small, they can be large. I think I said this before, but there are many things ongoing in parallel to find out what will be attractive to our users, what would they appreciate, and as a result of the expansion, we sometimes find it to be less attractive or more attractive.
Speaker Change: Well to your first question.
Speaker Change: Testing they can be small they can be large.
Speaker Change: I think I said this before but there are many things are ongoing in parallel.
Speaker Change: To find out what will be attractive to our users are what would they appreciate.
Speaker Change: And as a result of expansion are we sometimes find it to be less attractive or more attractive.
Junichi Arai: In these past three months, well, I think I responded to Munakata-san about this, but we haven't had anything that's new and innovative, but what we've been doing is to continue to work on this steadily. new services, new initiatives, if we have any updates regarding those, I will be happy to talk about it in our May announcement, but we don't have anything innovative and new, but I think it's better to. We haven't had such changes.
In these past three months well I think I responded to Monaco the phone about this but we.
Speaker Change: We haven't had it and you're seeing that's new and innovative but what we've been doing is to continue.
Speaker Change: Continue to work on those are steadily.
Speaker Change: New services new initiatives are if we have any updates are regarding those.
Speaker Change: We'll be happy to talk about it in our May announcement, but we don't have anything are innovative and you but.
Speaker Change: I think it's better to them.
Speaker Change: And that.
Speaker Change: We haven't had such changes.
Junichi Arai: And when it comes to the rest of the world, we have Europe and Canada. They account for the majority of this portion. The number of job trend. that follows the U.S. So it is not that we have a very favorable market condition, but each country. is trying to overcome challenges. to move ahead. So based on local currency. The current progress is largely in line with our initial expectations. So I or we are not overly worried, but.
Speaker Change: And when it comes to rest of the World, We have Europe and Canada.
Speaker Change: They account for the majority of this portion.
Speaker Change: The number of jobs trend.
Speaker Change: Ah follows the U S.
Speaker Change: So it is not that we have a very all favorable market condition, but each country.
Speaker Change: Is trying to overcome challenges.
Speaker Change: To move ahead.
Speaker Change: So based on local currency.
Speaker Change:
Speaker Change: And the current progress is largely in line with our initial expectations.
Speaker Change: So I see where we are not overly worried.
Speaker Change: But.
Junichi Arai: We will be developing a plan for the next fiscal year and we've been discussing whether we should look at those markets in the same way as the U.S. in the next one, two or three months. We will be putting that together and that will be shared with you in May. I appreciate your patience until then.
Speaker Change: We will be a developing a plan for the next fiscal year and with and discussing whether we should look at those markets are in the same way as the U S.
Speaker Change: And the next one two or three months.
Speaker Change: We will be putting that together and are that will be shared with you in may I. Appreciate your patience until then understood. Thank you. Thank you.
Unknown Executive: Understood. Thank you.
Unknown Executive: Thank you very much. Any other questions? We do not have any other hands that are raised. Okay.
Speaker Change: Thank you very much.
Speaker Change: Any other questions. When you do not have any other hands that are based okay.
Nagao: So, Nagao-san, please. Nagao from B of A Securities, I have two questions. is an HR technology business.
So our net awesome. Please.
Speaker Change: [noise] Neto from Bofa Securities I have two questions.
Neto: First is HR technology business.
Nagao: Evita Martian Your view, your thinking on Ibita Martian, not right now, but in the longer term. HR Technology, Business Still in the investment phase? or Of course, you're taking measures on-site, but... Are you already in the phase where you can capture the profit sufficiently? Looking at the margin trajectory from next year onward, which phase is HR technology in right now, if you could? Touch on that point first.
Neto: EBITDA margin.
Neto: Your view your thinking on EBITDA margin.
Neto: Not right now, but in the longer term.
Yeah.
Neto: HR technology business.
Neto: It's still in the investment phase.
Neto: Sure.
Neto: Of course, we are taking measures in our on site.
Neto: But.
Neto: Yeah.
Are you already in the phase where you can capture a the profits are sufficiently.
Neto: Looking at the margin trajectory should trajectory from next year onward, which phases HR technology in right now if he could.
Ill touch.
Neto: Touch on that 0.1st.
Nagao: And my second question is. Matching in Solution Business, especially in the marketing solutions. 35 to 40% in the medium term, you said. So three quarters into this year. To improve the margin further, what kind of measures will you need? So if you could update us on your strategy. Thank you very much.
Neto: And my second question is no.
Neto: Matching and solution business, especially in the marketing solutions.
Neto: [noise], 35% to 40%.
Neto: In the medium term you said.
Neto: So three quarters into this year.
To improve the margin further what kind of measures will you need.
Neto: So if you could update us on your strategy. Thank you very much.
Junichi Arai: Thank you for the question. So your first question.
Neto: Thank you for the question.
Neto: So your first question.
Neto: Yeah.
Yeah.
Junichi Arai: We, Mr. Idekoba, can talk about this in more actual, real terms in May when we announce our results. Capturing, harvesting profit. No, we are far from that. So.
We oh.
Speaker Change: Mr. <unk> I can talk about this in more actual real terms in may when we announce our results.
Speaker Change: But capturing harvesting our profit no we are far from that.
Speaker Change: So.
Junichi Arai: If Idekoba-san say we are harvesting our profit, then I would not be in this company. We can do more. So...
Speaker Change: If either of US I would say we are harvesting our profit and I would not be in this company, we can do more so.
Junichi Arai: We want to continue contributing, helping companies do better, so we are at the starting point, but It's not that we will intentionally reduce our margin compared to a few years ago. The revenue is much bigger, so we have more scalability. So we will continue investing at a reasonable fashion, hiring people or develop new things. But such investment will not push down the margin that much, but we will continue trying things.
Speaker Change: We want to continue contributing helping companies do better. So we are starting at the starting point.
Speaker Change: But.
Speaker Change: It's not that we will intentionally reduce our margin compared to a few years ago.
Speaker Change: Yeah.
Speaker Change: Other revenue is much bigger so we have more scalability.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: So we will continue investing it at a reasonable fashion.
Speaker Change: Hiring people or.
Speaker Change: Develop new things.
Speaker Change: Yeah.
Speaker Change: But.
Speaker Change: Such investment will not push down the margin that much but we will continue trying things there will be a failures than successes, maybe more failures than successes, but.
Junichi Arai: There will be failures and successes, maybe more failures than successes, but...
Junichi Arai: What we have to do as a listed company... is enhancing value. We will continue being aggressive on that. But we will not hold ourselves back from doing anything because we want the short-term marriage to be a certain level. No, we will not do that.
Speaker Change: What we have to do as a listed company.
Is in enhancing value, we will continue being aggressive on that.
Speaker Change: But we will not hold ourselves back from doing anything because we want the short term margin to be a certain level no. We will not do that we will continue being ambitious to become bigger.
Junichi Arai: We will continue being ambitious to become bigger. Then, you may think we may be ignoring margin, but... We will understand our position as a listed company and aim for further growth.
Speaker Change: Then you May think.
Speaker Change: You may be ignoring margin.
Speaker Change: Our budget.
Speaker Change: Yeah.
Speaker Change: We will understand our position as a listed company and aim for further growth.
Junichi Arai: If you could understand like that, I'd appreciate it. Thank you.
Speaker Change: If you could understand like that I'd appreciate it thank you.
Junichi Arai: So I hope you could have high hopes for us.
Speaker Change: So I hope you could have high hopes for us.
Junichi Arai: And next. Matching and Solutions. This year Our forecast is 30%, as I mentioned in our earlier disclosure. This is before the deduction of the corporate overhead expenses. So, FY24. So we will perform our numbers. Keeping the Conditions Unchanged in April.
Speaker Change: And next.
Speaker Change: [noise] batching and solutions.
Speaker Change: This year.
Speaker Change: We our forecast is 30% as I mentioned in our earlier disclosure.
Speaker Change: Yeah.
Speaker Change: This is before the deduction of the corporate overhead expenses.
Speaker Change: So FY 'twenty four.
Speaker Change: Yeah.
Speaker Change: So our profile.
Speaker Change: Before we will have all the pro forma numbers.
Speaker Change: Oh.
Speaker Change: Keeping the conditions unchanged.
Speaker Change: In April so.
Junichi Arai: So We can announce the margin after the allocation of corporate overhead costs and show how much we can increase from there. like we did last May. We will increase our revenue and improve our efficiency. So those two levers.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: We can announce the margin after the allocation of corporate overhead costs and it shows how much we can increase from there.
Speaker Change: Like we did last May we will increase our revenue and improve our efficiency. So those two leavers.
Junichi Arai: So how we grow, in which vertical, and How we push for higher efficiency in each vertical and as overall, that will be the levers. So in HR tech. We talked about the AI, how we can improve our efficiency and automate. and how this can be incorporated into our process. Once we realize that... We can improve our internal productivity. have our customers understand us. and improve the stickiness, client stickiness to our business. So if these go well...
Speaker Change: So how do we grow in which vertical.
Speaker Change: And.
Speaker Change: How we push for higher efficiency in each vertical and as overall that will be the leavers.
Speaker Change: So in HR Tech.
Speaker Change: We talked about the AI, how we can improve our efficiency and automate.
Speaker Change: And how this can be incorporated into our process.
Speaker Change: Once we realize that.
Speaker Change: We can improve our internal productivity.
Speaker Change: And.
Speaker Change: Have our customers understand us.
Speaker Change: Okay.
Speaker Change: And improve the stickiness.
Speaker Change: Client stickiness to our business, so if things go well.
Speaker Change: Yeah.
Junichi Arai: A margin will be more visible as we will explain in May. What we use and what we aim for. I hope we can say we will do this and that, which will improve our margin. We are preparing all the information.
Speaker Change: Our margin will be a more visible.
Speaker Change: As we will explain in may.
Speaker Change: What we use and what we aim for.
Speaker Change: Yeah.
Speaker Change: I hope we can say, we will do this in that which will improve our margin. We are preparing all the information I hope you could stay tuned. Thank you very much. Thank you.
Junichi Arai: I hope you could stay tuned.
Unknown Executive: Thank you very much. Thank you.
Speaker Change: Yeah.
Speaker Change: Thank you.
Unknown Executive: Are you okay with your questions?
Speaker Change: Are you okay with her questions well, we have answered all of the questions. We've received so please allow us to conclude the session. Thank.
Unknown Executive: We have answered all of the questions we've received, so please allow us to conclude this session. Thank you very much for joining us today. Thank you for sparing your time today, as always. Thank you.
Speaker Change: Thank you very much for joining us today.
Speaker Change: Thank you for sparing your time today as always thank you.