Q2 2025 Recruit Holdings Co Ltd Earnings Call

November 6, 2025

Speaker #1: Japanese provided solely for the convenience of investors. Thank you for joining the Recruit Holdings FY 2025 Q2 Earnings Call. I'm Mizuho Shen, Manager of Investor Relations and Public Relations.

Mizuho Shen: In Japanese provided solely for the convenience of investors. Thank you for joining the Recruit Holdings FY 2025 Q2 Earnings Call. I'm Mizuho Shin, Manager of Investor Relations and Public Relations. Today I will give a brief talk about our business. Junichi Arai, Executive Vice President and Chief Financial Officer, will give a presentation on results and guidance, followed by a Q&A session. Please note that today's session, including the Q&A, will be posted on our IR website after the event. Starting this fiscal year, we have integrated HR solutions from Matching & Solutions into HR Technology. Accordingly, the year-on-year comparison of segment results in this fiscal year's financial presentation is based on FY 2024 pro forma figures, which assume that this integration had been effective as of 1 April 2024. Unless otherwise stated, comparisons will be made year-over-year.

Mizuho Shen: In Japanese provided solely for the convenience of investors. Thank you for joining the Recruit Holdings FY 2025 Q2 Earnings Call. I'm Mizuho Shin, Manager of Investor Relations and Public Relations. Today I will give a brief talk about our business. Junichi Arai, Executive Vice President and Chief Financial Officer, will give a presentation on results and guidance, followed by a Q&A session. Please note that today's session, including the Q&A, will be posted on our IR website after the event. Starting this fiscal year, we have integrated HR solutions from Matching & Solutions into HR Technology. Accordingly, the year-on-year comparison of segment results in this fiscal year's financial presentation is based on FY 2024 pro forma figures, which assume that this integration had been effective as of 1st April 2024. Unless otherwise stated, comparisons will be made year-over-year.

Speaker #1: Today, I will give a brief talk about our business. Then, Junichi Arai, Executive Vice President and Chief Financial Officer, will give a presentation on results and guidance, followed by a Q&A session.

Speaker #1: Please note that today's session , including the Q&A , will be posted on our IR website after the event . Starting this fiscal year , we have integrated HR solutions from matching and solutions into HR technology .

Speaker #1: Accordingly , the year on year comparison of segment results in this fiscal year's financial presentation is based on FY 2024 pro forma figures , which assume that this integration had been effective as of April 1st , 2024 , unless otherwise stated , comparisons will be made year over year .

Speaker #1: Lastly, please note that all references to dollars in this presentation refer to U.S. dollars. We have three business segments: HR Technology, Features.

Mizuho Shen: Lastly, please note that all references to dollars in this presentation refer to US dollars. We have three business segments. HR technology features Indeed and Glassdoor, which together create a global two-sided talent marketplace across more than 60 countries with a focus on the US. As the core of our simplifying strategy, Indeed uses its broad reach, AI-powered matching and tools for faster connections to make the hiring process more efficient for employers and help job seekers find jobs faster and more easily. This strategy is enhanced in Japan through the Indeed PLUS job distribution platform and the integration of placement services including Recruit Agent. Staffing consists of two major operations: Japan and Europe, US and Australia. Between 2010 and 2016, we expanded to our current scale and structure through multiple global acquisitions of staffing companies.

Speaker #1: Indeed, and Glassdoor, which together create a global two-sided talent marketplace across more than 60 countries, with a focus on the U.S. as the core of our simply firing strategy.

Speaker #1: Indeed uses its broad reach, AI-powered matching, and tools for faster connections to make the hiring process more efficient for employers and help job seekers find jobs faster and more easily.

Speaker #1: This strategy is enhanced in Japan through the Indeed Plus job distribution platform and the integration of placement services, including Recruit Agent. Staffing consists of two major operations: Japan and Europe, the U.S. and Australia.

Speaker #1: Between 2010 and 2016 , we expanded to our current scale and structure through multiple global acquisitions of staffing companies , marketing , matching technologies or MMT , consists of marketing solutions of the former matching and solutions in Japan , MMT provides vertical matching platforms that connect individual users and business clients in areas like the lifestyle subsegment , which includes beauty , travel , dining and SaaS solutions , as well as the housing and real estate segment and others .

Mizuho Shen: Marketing Matching Technologies, or MMT, consists of marketing solutions of the former Matching & Solutions. In Japan, MMT provides vertical matching platforms that connect individual users and business clients in areas like the lifestyle sub-segment, which includes beauty, travel, dining, and SaaS solutions, as well as the housing and real estate sub-segment and others. These platforms offer services including information and online reserving and booking services. Now over to Arai-san. Thank you very much. We have slightly longer presentation than usual, so I hope you could bear with me. I will discuss the following four highlights of the FY2025 Q2 earnings presentation. 1, in HR Technology, revenue in the US for Q2 increased by 5.8% year-over-year to $1.33 billion.

Speaker #1: These platforms offer services including information and online reserving and booking services . Now , over to Horizon . Thank you very much . We have slightly longer presentation than usual , so I hope you could bear with me .

Junichi Arai: Thank you very much. We have slightly longer presentation than usual, so I hope you could bear with me. I will discuss the following four highlights of the FY2025 Q2 earnings presentation. 1, in HR Technology, revenue in the US for Q2 increased by 5.8% year-over-year to $1.33 billion.

Speaker #1: I will discuss the following four highlights of the FY 2025 Q2 earnings presentation. In HR technology, revenue in the U.S. for Q2 increased by 5.8% year over year to $1.33 billion.

Speaker #1: Two we have upwardly revised the full year US revenue outlook in HR technology from 0.3% year over year increase . Basically , flat .

Mizuho Shen: 2, we have upwardly revised the full year US revenue outlook in HR Technology from 0.3% year-over-year increase, basically flat, announced in May to a 5.6% increase. 3, the full year consolidated financial guidance has been revised upward. Consolidated EBITDA+S for this fiscal year has been revised upward from JPY 697 billion to JPY 733.5 billion. 4, net cash at the end of September 2025 was JPY 590.5 billion. We commenced a new share repurchase program of JPY 250 billion on 17 October. This is in line with the policy we announced in May 2024 to reduce net cash to around JPY 600 billion by the end of FY2025.

Junichi Arai: 2, we have upwardly revised the full year US revenue outlook in HR Technology from 0.3% year-over-year increase, basically flat, announced in May to a 5.6% increase. 3, the full year consolidated financial guidance has been revised upward. Consolidated EBITDA+S for this fiscal year has been revised upward from JPY 697 billion to JPY 733.5 billion. 4, net cash at the end of September 2025 was JPY 590.5 billion. We commenced a new share repurchase program of JPY 250 billion on 17 October. This is in line with the policy we announced in May 2024 to reduce net cash to around JPY 600 billion by the end of FY2025.

Speaker #1: Announced in May to a 5.6% increase . Three . The full year consolidated financial guidance has been revised upward consolidated EBITDA plus s for this fiscal year has been revised upward from ¥697 billion to ¥733.5 billion .

Speaker #1: For net cash at the end of September 2025, it was ¥590.5 billion. We commenced a new share repurchase program of ¥250 billion on October 17th.

Speaker #1: This is in line with the policy we announced in May 2024 to reduce net cash to around ¥600 billion by the end of FY 2025. After reviewing our consolidated results for Q2 and the first half, I will discuss the performance and outlook by segment, followed by our full year consolidated guidance.

Mizuho Shen: After reviewing our consolidated results for Q2 and the first half, I will discuss the performance and outlook by segment, followed by our full year consolidated guidance, and finally, our capital allocation policy. Regarding FY2025 Q2 consolidated results. In HR Technology, our focused monetization efforts were the primary driver of revenue growth, successfully counteracting the impact of a softer job market in the US. Revenue in Marketing Matching Technologies or MMT increased, and revenue in staffing remained flat. As a result, total consolidated revenue increased by 2% to JPY 914.7 billion.

Junichi Arai: After reviewing our consolidated results for Q2 and the first half, I will discuss the performance and outlook by segment, followed by our full year consolidated guidance, and finally, our capital allocation policy. Regarding FY2025 Q2 consolidated results. In HR Technology, our focused monetization efforts were the primary driver of revenue growth, successfully counteracting the impact of a softer job market in the US. Revenue in Marketing Matching Technologies or MMT increased, and revenue in staffing remained flat. As a result, total consolidated revenue increased by 2% to JPY 914.7 billion.

Speaker #1: And finally , our capital allocation policy . Regarding FY 2025 , Q2 consolidated results in HR technology , our focused monetization efforts were the primary driver of revenue growth successfully counteracting the impact of a softer job market in the US .

Speaker #1: Revenue in marketing matching technologies are or MMT increased and revenue in staffing remained flat as a result , total consolidated revenue increased by 2% to ¥914.7 billion as a result of continued efforts across all segments to further enhance productivity , EBITDA margin was 22.7% , exceeding Q1 of the fiscal year , driven by margin expansion in HR , technology and MMT .

Mizuho Shen: As a result of continued efforts across all segments to further enhance productivity, EBITDA+S margin was 22.7%, exceeding Q1 of this fiscal year, driven by margin expansion in HR Technology and MMT. EBITDA+S margin over gross profit was 38.2%, reflecting our underlying cash flow generating capability. Before adding back stock-based compensation expenses, EBITDA margin improved compared to the same period last year, reaching 21.3%. For the first half of FY2025, revenue decreased 0.3% to JPY 1,793.5 billion. EBITDA+S margin continued to expand, reaching 22%. Now I will move on to the results and outlook by segment. I will start by the results for HR Technology.

Junichi Arai: As a result of continued efforts across all segments to further enhance productivity, EBITDA+S margin was 22.7%, exceeding Q1 of this fiscal year, driven by margin expansion in HR Technology and MMT. EBITDA+S margin over gross profit was 38.2%, reflecting our underlying cash flow generating capability. Before adding back stock-based compensation expenses, EBITDA margin improved compared to the same period last year, reaching 21.3%. For the first half of FY2025, revenue decreased 0.3% to JPY 1,793.5 billion. EBITDA+S margin continued to expand, reaching 22%. Now I will move on to the results and outlook by segment. I will start by the results for HR Technology.

Speaker #1: EBITDA margin over gross profit was 38.2% , reflecting our underlying cash flow generating capability . Before adding back stock based compensation expenses , EBITDA margin improved compared to the same period last year , reaching 21.3% for the first half of FY 2025 .

Speaker #1: Revenue decreased 0.3% to $1,000,000,000,793.5 billion. EBITDA margin continued to expand, reaching 22%. Now I will move on to the results and outlook by segment.

Speaker #1: I will start by the results for HR technology . For Q2 segment revenue on the US dollar basis , increased by 4.5% year on year , and the 2.1% quarter over quarter to $2.41 billion on a Japanese yen basis .

Mizuho Shen: For Q2, segment revenue on a US dollar basis increased by 4.5% year-over-year and the 2.1% quarter-over-quarter to $2.41 billion. On a Japanese yen basis, segment revenue increased by 2.9% year-over-year to JPY 355.7 billion. As for revenue by region, turning to our US performance, despite an approximately 8% decline in job postings, US revenue increased by 5.8% year-over-year and by 5.6% quarter-over-quarter to $1.33 billion, exceeding our initial expectations. This was driven by successful monetization development of paid job ads with a notable contribution from Premium Sponsored Jobs. This solution enhances our paid job ads by incorporating key features and leverages Indeed advanced matching and targeting technology.

Junichi Arai: For Q2, segment revenue on a US dollar basis increased by 4.5% year-over-year and the 2.1% quarter-over-quarter to $2.41 billion. On a Japanese yen basis, segment revenue increased by 2.9% year-over-year to JPY 355.7 billion. As for revenue by region, turning to our US performance, despite an approximately 8% decline in job postings, US revenue increased by 5.8% year-over-year and by 5.6% quarter-over-quarter to $1.33 billion, exceeding our initial expectations. This was driven by successful monetization development of paid job ads with a notable contribution from Premium Sponsored Jobs. This solution enhances our paid job ads by incorporating key features and leverages Indeed advanced matching and targeting technology.

Speaker #1: Segment revenue increased by 2.9% year over year to ¥355.7 billion . As for revenue by region . Turning to our US performance , despite an approximately 8% decline in job postings , US revenue increased by 5.8% year over year and by 5.6% quarter over 12:45 point three $3 billion , exceeding our initial expectations .

Speaker #1: This was driven by successful monetization and the development of paid job ads, with a notable contribution from premium sponsored jobs. This solution enhances our paid job ads by incorporating key features and leveraging Indeed's advanced matching and targeting technology revenue in Europe and others.

Mizuho Shen: Revenue in Europe and others increased by 14.7% year-over-year to $509 million. The UK, Canada, and Germany together accounted for about two-thirds of Indeed revenue for Europe and others on a US dollar basis. The revenue growth was primarily driven by the UK and Canada, where monetization development led to revenue growth of approximately 8% year-over-year, respectively, on a local currency basis as well as by foreign exchange impacts. Starting this fiscal year, HR Technology Japan consists of job advertising services, placement services, and other hiring related services after integrating HR solutions of the former Matching & Solutions. Revenue in Japan decreased by 7.2% year-over-year to JPY 84 billion, or declined by 5.7% year-over-year on a US dollar basis. Our job advertising service, Indeed PLUS, which launched in January 2024, is performing above initial expectations.

Junichi Arai: Revenue in Europe and others increased by 14.7% year-over-year to $509 million. The UK, Canada, and Germany together accounted for about two-thirds of Indeed revenue for Europe and others on a US dollar basis. The revenue growth was primarily driven by the UK and Canada, where monetization development led to revenue growth of approximately 8% year-over-year, respectively, on a local currency basis as well as by foreign exchange impacts. Starting this fiscal year, HR Technology Japan consists of job advertising services, placement services, and other hiring related services after integrating HR solutions of the former Matching & Solutions. Revenue in Japan decreased by 7.2% year-over-year to JPY 84 billion, or declined by 5.7% year-over-year on a US dollar basis. Our job advertising service, Indeed PLUS, which launched in January 2024, is performing above initial expectations.

Speaker #1: Increased by 14.7% year over year to $509 million. The UK, Canada, and Germany together accounted for about two-thirds of revenue for Europe and others on a US dollar basis.

Speaker #1: The revenue growth was primarily driven by the UK and Canada, where monetization development led to revenue growth of approximately 8% year over year, respectively.

Speaker #1: On a local currency basis , as well as by foreign exchange impacts . Starting this fiscal year , HR Technology Japan consists of job advertising services , placement services , and other hiring related services .

Speaker #1: After integrating HR solutions of the former Matching and Solutions, revenue in Japan decreased by 7.2% year over year to ¥84 billion, or declined by 5.7% year over year on a U.S. dollar basis.

Speaker #1: Our job advertising service Indeed Plus , which launched in January 2024 , is performing above initial expectations . However , our placement services fell short of the initial assumption .

Mizuho Shen: However, our placement services fell short of the initial assumption. This shortfall occurred because we underestimated the business impact of the system migration processes that followed our recent organizational integration. Even excluding the impact of the difference between gross to net revenue recognition related to the transition to Indeed PLUS, overall Japanese revenue came in below our initial expectations. Segment EBITDA+S margin expanded to 37.9%, driven by improved productivity and enhanced operational efficiency in the US and in Europe and others. Even in a business environment where the total number of US job postings continued to decline, the successful combination of a monetization development and improvements in operational efficiency and productivity was clearly reflected in segment EBITDA margin, which increased by 6.6 percentage points from the same quarter last year to 34.7%.

Junichi Arai: However, our placement services fell short of the initial assumption. This shortfall occurred because we underestimated the business impact of the system migration processes that followed our recent organizational integration. Even excluding the impact of the difference between gross to net revenue recognition related to the transition to Indeed PLUS, overall Japanese revenue came in below our initial expectations. Segment EBITDA+S margin expanded to 37.9%, driven by improved productivity and enhanced operational efficiency in the US and in Europe and others. Even in a business environment where the total number of US job postings continued to decline, the successful combination of a monetization development and improvements in operational efficiency and productivity was clearly reflected in segment EBITDA margin, which increased by 6.6 percentage points from the same quarter last year to 34.7%.

Speaker #1: This shortfall occurred because we underestimated the business impact of the system migration processes that followed our recent organizational integration. Even excluding the impact of the difference between growth to net revenue recognition related to the transition to Indeed, overall Japanese revenue came in below our initial expectations.

Speaker #1: Segment EBITDA plus s margin expanded to 37.9% , driven by improved productivity and enhanced operational efficiency . In the US and in Europe and others .

Speaker #1: Even in a business environment where the total number of U.S. job postings continued to decline, the successful combination of a monetization development and improvements in operational efficiency and productivity was clearly reflected in segment EBITDA margin, which increased by 6.6 percentage points from the same quarter last year to 34.7%.

Speaker #1: As a result, for the first half on a U.S. dollar basis, segment revenue increased by 4.1% year over year to $4.77 billion, and on a Japanese yen basis decreased by 0.5% year over year to ¥697.5 billion.

Mizuho Shen: As a result, for the first half on a US dollar basis, segment revenue increased by 4.1% year-over-year to $4.77 billion. On a Japanese yen basis, decreased by 0.5% year-over-year to JPY 697.5 billion. As for revenue by region, in the US, revenue increased by 3.4% year-over-year to $2.59 billion. In Europe and others, revenue increased by 13.7% year-over-year to $985 million. In Japan, revenue decreased by 5.8% year-over-year to JPY 174.3 billion, or decreased by 1.3% year-over-year to $1.19 billion.

Junichi Arai: As a result, for the first half on a US dollar basis, segment revenue increased by 4.1% year-over-year to $4.77 billion. On a Japanese yen basis, decreased by 0.5% year-over-year to JPY 697.5 billion. As for revenue by region, in the US, revenue increased by 3.4% year-over-year to $2.59 billion. In Europe and others, revenue increased by 13.7% year-over-year to $985 million. In Japan, revenue decreased by 5.8% year-over-year to JPY 174.3 billion, or decreased by 1.3% year-over-year to $1.19 billion.

Speaker #1: As for revenue by region in the U.S., revenue increased by 3.4% year over year to $2.59 billion. In Europe and others, revenue increased by 13.7% year over year to $985 million.

Speaker #1: In Japan, revenue decreased by 5.8% year over year to ¥174.3 billion, or decreased by 1.3% year over year to $1.19 billion.

Speaker #1: Although placement services revenue fell slightly short of our initial expectations, job advertising services revenue performed above expectations, resulting in total revenue in Japan coming in slightly above our initial projections.

Mizuho Shen: Although placement services revenue fell slightly short of our initial expectations, job advertising services revenue performed above expectations, resulting in total revenue in Japan coming in slightly above our initial projections. Segment EBITDA+S margin was 36.5%. For the first half, sales commission, promotion expenses, and advertising expenses in total amounted to approximately 13% of segment revenue. While employee benefit expenses and service outsourcing expenses totaled approximately 46% of revenue, reflecting the impact of the workforce reduction announced in early July, which began to take effect in the latter half of the first half. I will discuss the second half outlook. Before diving into the outlook, today I am introducing a new key performance indicator to track our monetization progress and serve as an important indicator of the future evolution of HR Technology in the US.

Junichi Arai: Although placement services revenue fell slightly short of our initial expectations, job advertising services revenue performed above expectations, resulting in total revenue in Japan coming in slightly above our initial projections. Segment EBITDA+S margin was 36.5%. For the first half, sales commission, promotion expenses, and advertising expenses in total amounted to approximately 13% of segment revenue. While employee benefit expenses and service outsourcing expenses totaled approximately 46% of revenue, reflecting the impact of the workforce reduction announced in early July, which began to take effect in the latter half of the first half. I will discuss the second half outlook. Before diving into the outlook, today I am introducing a new key performance indicator to track our monetization progress and serve as an important indicator of the future evolution of HR Technology in the US.

Speaker #1: Segment EBITDA margin was 36.5% for the first half sales Commission promotion expenses and advertising expenses . In total amounted to approximately 13% of segment revenue , while employing employee benefit expenses and service outsourcing expenses totaled approximately 46% of revenue , reflecting the impact of the workforce reduction announced in early July , which began to take effect in the latter half of the first half .

Speaker #1: Now I will look to discuss the second half outlook, but before diving into the outlook today, I am introducing a new key performance indicator to track our monetization progress and serve as an important indicator of the future evolution of HR technology in the U.S.

Speaker #1: The US average revenue per job posting on Indeed, or USPP, has shown significant growth. Hereafter, we refer to the US average revenue per job posting as USPP.

Mizuho Shen: The US Average Revenue per Job Posting on Indeed or US ARPJ growth rate. Hereafter, we refer to the US Average Revenue per Job Posting as US ARPJ. For clarity, the US ARPJ is calculated by dividing HR Technology US revenue by the total number of freed and paid jobs in the US, including those posted directly to Indeed and those aggregated from the internet. It represents the average revenue generated per job posting on Indeed in the US. The US ARPJ is based not only on paid job ads, but the denominator includes all jobs listed on Indeed, regardless of whether they are paid or free. Its year-over-year growth rate is the US ARPJ growth rate.

Junichi Arai: The US Average Revenue per Job Posting on Indeed or US ARPJ growth rate. Hereafter, we refer to the US Average Revenue per Job Posting as US ARPJ. For clarity, the US ARPJ is calculated by dividing HR Technology US revenue by the total number of freed and paid jobs in the US, including those posted directly to Indeed and those aggregated from the internet. It represents the average revenue generated per job posting on Indeed in the US. The US ARPJ is based not only on paid job ads, but the denominator includes all jobs listed on Indeed, regardless of whether they are paid or free. Its year-over-year growth rate is the US ARPJ growth rate.

Speaker #1: For clarity, the US R J is calculated by dividing HR technology US revenue by the total number of free and paid jobs in the US, including those posted directly to.

Speaker #1: Indeed , and those aggregated from the internet . It represents the average revenue generated per job posting on . Indeed , in the US , the Usgp is based not only on paid job ads , but the denominator includes all jobs listed on indeed , regardless of whether they are paid or free .

Speaker #1: It's year over year growth rate is the US j growth rate . The revenue increase of 5.8% in the US during this Q2 was driven by the US .

Mizuho Shen: The revenue increase of 5.8% in the US during this Q2 was driven by the US ARPJ growth rate coming in at approximately 15% increase year-over-year, despite an approximately 8% decline in the total number of job postings. For the first half, the US ARPJ growth rate was around 13% increase year-over-year, clearly demonstrating the progress and success of our monetization strategy. This chart shows the indexed trend in total number of US job postings on Indeed from February 2020 to the present, represented here by the Indeed Hiring Lab US Job Postings Index. This index is based on the total number of US job postings used in calculating the US ARPJ growth rate. It is important to understand that this index is based on both free and paid job postings on Indeed, which are sourced in 2 ways.

Junichi Arai: The revenue increase of 5.8% in the US during this Q2 was driven by the US ARPJ growth rate coming in at approximately 15% increase year-over-year, despite an approximately 8% decline in the total number of job postings. For the first half, the US ARPJ growth rate was around 13% increase year-over-year, clearly demonstrating the progress and success of our monetization strategy. This chart shows the indexed trend in total number of US job postings on Indeed from February 2020 to the present, represented here by the Indeed Hiring Lab US Job Postings Index. This index is based on the total number of US job postings used in calculating the US ARPJ growth rate. It is important to understand that this index is based on both free and paid job postings on Indeed, which are sourced in 2 ways.

Speaker #1: RJ growth rate is coming in at approximately 15% increase year over year, despite an approximately 8% decline in the total number of job postings.

Speaker #1: For the first half, the USGP growth rate was around 13% increase year over year, clearly demonstrating the progress and success of our monetization strategy.

Speaker #1: This chart shows the indexed trend in the total number of U.S. job postings on Indeed from February 2020 to the present, represented here by the Indeed Hiring Lab U.S. Job Posting Index.

Speaker #1: This index is based on the total number of U.S. job postings used in calculating the U.S. ARP growth rate. It is important to understand that this index is based on both free and paid job postings.

Speaker #1: Indeed, which are sourced in two ways: hosted jobs are posted directly on Indeed by business clients, while indexed jobs are aggregated by Indeed from employer websites and other sources across the internet.

Mizuho Shen: Hosted jobs are posted directly on Indeed by business clients. Indexed jobs are aggregated by Indeed from employer websites and other sources across the internet. Our CEO, Dekel, stated in May 2024 that we assume that hiring demand in the US will hit the bottom after decreasing for another 18 or 24 months, i.e. this second half. We will run our business based on that. Given the current US business environment, we still expect hiring demand in the US to be broadly in line with our assumption at the beginning of this fiscal year, which is to continue a modest year-over-year decline throughout the second half with the trend bottoming out in Q4. Based on our assumption, we have revised our US revenue outlook for Q3 and Q4.

Junichi Arai: Hosted jobs are posted directly on Indeed by business clients. Indexed jobs are aggregated by Indeed from employer websites and other sources across the internet. Our CEO, Dekel, stated in May 2024 that we assume that hiring demand in the US will hit the bottom after decreasing for another 18 or 24 months, i.e. this second half. We will run our business based on that. Given the current US business environment, we still expect hiring demand in the US to be broadly in line with our assumption at the beginning of this fiscal year, which is to continue a modest year-over-year decline throughout the second half with the trend bottoming out in Q4. Based on our assumption, we have revised our US revenue outlook for Q3 and Q4.

Speaker #1: Our CEO Dico stated in May 2024 that we assume hiring demand in the U.S. will hit the bottom after decreasing for another 18 to 24 months, i.e., this second half, and we will run our business based on that.

Speaker #1: Given the current US business environment , we still expect hiring demand in the US to be broadly in line with our assumption . At the beginning of this fiscal year , which is to continue a modest year over year decline throughout the second half .

Speaker #1: With the trend bottoming out in Q4, based on our assumption, we have revised our U.S. revenue outlook for Q3 and Q4.

Speaker #1: This chart shows the quarterly trend of U.S. revenue in HR technology since Q4 FY 2019, together with the index chart that I mentioned earlier.

Mizuho Shen: This chart shows the quarterly trend of US revenue in HR Technology since Q4 FY2019, together with the index chart that I mentioned earlier. On the far right, we have added the HR Technology assumed trend for the IHL index in the second half and the revenue outlook for Q3 and Q4. Looking at these results through Q2, as you can see through FY2023, HR Technology US quarterly revenue moved largely in line with this index. However, from the beginning of FY2024 through the first half of the current fiscal year, meaning 6 quarters, HR Technology US revenue has decoupled from the declining trend in job postings. This divergence is the direct result of ongoing developments in monetization, which we have been successfully executing since our CEO, Idekoba, announced the beginning of year zero in May 2024.

Junichi Arai: This chart shows the quarterly trend of US revenue in HR Technology since Q4 FY2019, together with the index chart that I mentioned earlier. On the far right, we have added the HR Technology assumed trend for the IHL index in the second half and the revenue outlook for Q3 and Q4. Looking at these results through Q2, as you can see through FY2023, HR Technology US quarterly revenue moved largely in line with this index. However, from the beginning of FY2024 through the first half of the current fiscal year, meaning 6 quarters, HR Technology US revenue has decoupled from the declining trend in job postings. This divergence is the direct result of ongoing developments in monetization, which we have been successfully executing since our CEO, Idekoba, announced the beginning of year zero in May 2024.

Speaker #1: On the far right, we have added the HR technologies, assumed trend for the index in the second half, and the revenue outlook for Q3 and Q4.

Speaker #1: Looking at these results through Q2, as you can see through FY 2023, HR technology US quarterly revenue moved largely in line with this index.

Speaker #1: However, from the beginning of FY 2024 through the first half of the current fiscal year, meaning six quarters, HR technology U.S. revenue has decoupled from the declining trend in job postings.

Speaker #1: This divergence is the direct result of ongoing developments in monetization, which we have been successfully executing since our CEO, Dico, announced the beginning of Year Zero in May 2020 for a period of strengthening our foundation and preparing for a recovery in the business environment.

Mizuho Shen: A period of strengthening our foundation and preparing for a recovery in the business environment following the downturn. To provide clear insight into this divergence, we will report the US ARPJ growth rate as a new KPI. This metric represents our continued progress in evolving our business, capturing the success of our entire product and monetization strategy built on Indeed's foundation as a two-sided talent marketplace that connects job seekers and employers. Currently, paid job ads remain just under one-quarter of the total number of US job postings on Indeed. As we increase this penetration and as more business clients adopt our other value-added subscription services, including sourcing, branding, and new AI products, the US ARPJ will rise, and its growth rate will accelerate, further widening the divergence from the IHL index growth rate.

Junichi Arai: A period of strengthening our foundation and preparing for a recovery in the business environment following the downturn. To provide clear insight into this divergence, we will report the US ARPJ growth rate as a new KPI. This metric represents our continued progress in evolving our business, capturing the success of our entire product and monetization strategy built on Indeed's foundation as a two-sided talent marketplace that connects job seekers and employers. Currently, paid job ads remain just under one-quarter of the total number of US job postings on Indeed. As we increase this penetration and as more business clients adopt our other value-added subscription services, including sourcing, branding, and new AI products, the US ARPJ will rise, and its growth rate will accelerate, further widening the divergence from the IHL index growth rate.

Speaker #1: Following the downturn, to provide clear insight into this divergence, we will report the U.S. sharp growth rate as a new KPI.

Speaker #1: This metric represents our continued progress in evolving our business, capturing the success of our entire product and monetization strategy built on Indeed Foundation as a two-sided talent marketplace that connects job seekers and employers. Currently, paid job ads remain just under one quarter of the total number of U.S. job postings.

Speaker #1: Indeed . As we increase this penetration and as more business clients adopt our other value added subscription services , including sourcing , branding and new AI products , the US , AAP will rise and its growth rate will accelerate further widening the divergence from the IHS index growth rate .

Speaker #1: Now , turning to our US revenue outlook for Q3 and Q4 in US dollars , despite an anticipated year over year decline of around 7% in the total number of US job postings in the second half , we expect the US AAP to continue growing year over year at around 16% for the second half , we expect revenue for Q3 to increase by 7.2% year over year and decrease by 4.8% quarter over quarter , reflecting the seasonality of the holiday period when both job seeking and hiring activities tend to slow down .

Junichi Arai: Now turning to our US revenue outlook for Q3 and Q4 in US dollars. Despite an anticipated year-over-year decline of around 7% in the total number of US job postings in the second half, we expect the US ARPDA to continue growing year-over-year at around 16% for the second half. We expect revenue for Q3 to increase by 7.2% year-over-year and decrease by 4.8% quarter-over-quarter, reflecting the seasonality of the holiday period when both job seeking and hiring activities tend to slow down. For Q4, we expect revenue to increase by 8.6% year-over-year and by 1.6% quarter-over-quarter. Our second half outlook is based on exchange rate assumptions of JPY 145 to the US dollar and JPY 172 to the euro.

Speaker #1: For Q4, we expect revenue to increase by 8.6% year over year and by 1.6% quarter on quarter. Our second half outlook is based on exchange rate assumptions of ¥145 to the U.S. dollar and ¥172 to the euro.

Speaker #1: We expect segment revenue to increase by 7.8% year over year to $4.74 billion, and to increase by 2.5% year over year to ¥687.9 billion.

Junichi Arai: We expect segment revenue to increase by 7.8% year-over-year to $4.74 billion, and to increase by 2.5% year-over-year to JPY 687.9 billion. By region in the US, based on the quarterly revenue assumptions I discussed earlier, we expect revenue to increase by 7.9% year-over-year to $2.56 billion and to decrease by 1.4% compared to the first half, reflecting normal seasonality. In Europe and others, we expect revenue to increase by 21.5% year-over-year to $1.03 billion, reflecting ongoing developments in monetization.

Speaker #1: region . In the US . based on the quarterly revenue assumptions , I discussed earlier , we expect revenue to increase by 7.9% year over year to $2.56 billion , and to decrease by 1.4% compared to the first half , reflecting normal seasonality in Europe and others .

Speaker #1: We expect revenue to increase by 21.5% year over year to $1.03 billion, reflecting ongoing developments in monetization in Japan. Revenue in placement services.

Junichi Arai: In Japan, revenue in placement services, as explained earlier, will continue to decline in the second half. We expect revenue to decrease by 7.2% year-over-year to JPY 167 billion or by 2.4% year-over-year to $1.15 billion. As I stated in the earnings presentation in May, in Japan, we are prioritizing the stable operation of our newly reorganized structure following personnel reassignments to facilitate future growth in the coming years. Since April, we have focused on maintaining stable operations for the integrated organization while launching a range of initiatives to drive business evolution and enhance efficiency, including actively leveraging AI to support future growth. Some of these initiatives are already yielding results, while others have required us to make adjustments.

Speaker #1: As explained earlier, we will continue to decline in the second half, and we expect revenue to decrease by 7.2% year over year to ¥167 billion, or by 2.4% year over year, to $1.15 billion.

Speaker #1: As I stated in the earnings presentation in May, in Japan, we are prioritizing the stable operation of our newly reorganized structure following personnel reassignments.

Speaker #1: To facilitate future growth in the coming years, since April, we have focused on maintaining stable operations for the integrated organization while launching a range of initiatives to drive business evolution and enhance efficiency, including actively leveraging AI to support future growth.

Speaker #1: Some of these initiatives are already yielding results, while others have required us to make adjustments for those that did not meet our initial expectations.

Junichi Arai: For those that did not meet our initial expectations, we have identified the underlying causes and are working to rectify and improve them. We remain committed to pursuing innovation boldly without fear of failure. Although corrective measures have already been underway, placement services generally take more than six months from the time a job seeker is introduced to a position until a successful match is finalized and revenue is recognized. Therefore, we expect the impact of these corrective actions to begin contributing from the first half of next fiscal year.

Speaker #1: We have identified the underlying causes and are working to rectify and improve them. We remain committed to pursuing innovation boldly, without fear of failure.

Speaker #1: Although corrective measures have already been underway, placement services generally take more than six months from the time a job seeker is introduced to a position until a successful match is finalized and revenue is recognized.

Speaker #1: Therefore , we expect the impact of these corrective actions to begin contributing from the first half of next fiscal year . Segment EBITDA margin is expected to reach 35.1% , up 3.4 percentage points from 31.7% in the second half of last fiscal year , as we aim to balance monetization developments with further improvements in operational efficiency and productivity .

Junichi Arai: Segment EBITDA+S margin is expected to reach 35.1%, up 3.4 percentage points from 31.7% in the second half of last fiscal year, as we aim to balance monetization developments with further improvements in operational efficiency and productivity, even in a business environment where US hiring demand continues to decline modestly year-over-year. Margin expansion in the US and in Europe and others is expected to continue, driven by upward revisions of revenue and progress in efficiency improvements, including the workforce reduction implemented in July. In Japan, we expect lower revenue due to the performance of placement services to contribute to a lower EBITDA+S margin. However, we also plan to control advertising and other promotional expenses carefully, which will partially offset the negative impact on margins.

Speaker #1: Even in a business environment where U.S. hiring demand continues to decline modestly year over year, margin expansion in the U.S. and in Europe and other regions is expected to continue, driven by upward revisions of revenue and progress in efficiency improvements, including the workforce reduction implemented in July in Japan.

Speaker #1: We expect lower revenue due to the performance of placement services to contribute to a lower EBITDA margin . However , we also plan to control advertising and other promotional expenses carefully , which will partially offset the negative impact on margins based on the results for the first half and the outlook for the second half , the full year outlook has been revised upward .

Junichi Arai: Based on the results for the first half and the outlook for the second half, the full year outlook has been revised upward. We now expect segment revenue to increase by 5.9% year-over-year to $9.52 billion, up from the initial outlook of a 2.4% increase to $9.2 billion. On a Japanese yen basis, we have revised our outlook upward to JPY 1,385.5 billion, representing a 1.0% increase year-over-year from the initial outlook of a 2.8% decrease to JPY 1,334.4 billion.

Speaker #1: We now expect segment revenue to increase by 5.9% year over year to $9.52 billion, up from the initial outlook of a 2.4% increase to $9.2 billion on a Japanese yen basis.

Speaker #1: We have revised our outlook upward to ¥1,000,000,000,385.5 billion , representing a 1.0% increase year on year from the initial outlook of a 2.8% decrease to ¥1,000,000,000,334.4 billion by region in the US , we have revised our outlook upward from the initial assumption of a 0.3% year on year increase to an increase of 5.6% , reaching $5.15 billion in Europe and others , we have revised our outlook upward from the initial expectation of an 8.1% year on year increase to a 17.6% increase , reaching $2.01 billion .

Junichi Arai: By region in the US, we have revised our outlook upward from the initial assumption of a 0.3% year-over-year increase to an increase of 5.6%, reaching $5.15 billion. In Europe and others, we have revised our outlook upward from the initial expectation of an 8.1% year-over-year increase to a 17.6% increase, reaching $2.01 billion. In Japan, we have revised our outlook downward from the initial expectation of a 2.7% year-over-year decrease to a 6.5% decrease to JPY 341.3 billion, and on a US dollar basis to $2.34 billion, representing a 1.9% decrease year-over-year.

Speaker #1: In Japan, we have revised our outlook downward from the initial expectation of a 2.7% year-on-year decrease to a 6.5% decrease to ¥341.3 billion.

Speaker #1: And on a US dollar basis to $2.34 billion , representing a 1.9% decrease year on year . Segment EBITDA margin has been revised upward from the initial outlook of 34.5% to 35.8% , representing an increase of 2.8 percentage points from 33% in the last fiscal year .

Junichi Arai: Segment EBITDA+S margin has been revised upward from the initial outlook of 34.5% to 35.8%, representing an increase of 2.8 percentage points from 33% in the last fiscal year. Segment EBITDA margin is expected to be 31.1%, representing an increase of 3.7 percentage points from 27.4% in the last fiscal year. As for staffing, segment revenue in Q2 increased by 0.8% to JPY 421.3 billion. In Japan, revenue increased by 6.1% to JPY 209.4 billion, driven by stable demand for staffing. In Europe, US, and Australia, revenue declined by 3.9% to JPY 211.8 billion.

Speaker #1: Segment EBITDA margin is expected to be 31.1% , representing an increase of 3.7 percentage points from 27.4% in the last fiscal year . As for staffing , segment revenue in Q2 increased by 0.8% to ¥421.3 billion in Japan , revenue increased by 6.1% to ¥209.4 billion , driven by stable demand for staffing in Europe , US and Australia .

Speaker #1: Revenue declined by 3.9% to ¥211.8 billion. This represents an improvement from the first quarter, driven by increased orders from large business clients, as well as the impact of the Japanese yen depreciation. Segment EBITDA margin was 6.6% for the first half of the fiscal year.

Junichi Arai: This represents an improvement from the Q1, driven by increased orders from large business clients as well as the impact of the Japanese yen depreciation. Segment EBITDA+S margin was 6.6%. For the first half of the fiscal year, segment revenue decreased 1.3% to JPY 829.4 billion. Segment EBITDA+S margin was 6.6%. For the second half outlook, segment revenue is expected to increase 2.3% to JPY 846 billion. Segment EBITDA margin is expected to be 4.8%. For the full year outlook, we have revised segment revenue to JPY 1,675.4 billion and segment EBITDA+S margin to 5.7% with only minor changes from the figures disclosed on 9 May.

Speaker #1: Segment revenue decreased 1.3% to ¥829.4 billion. The segment EBITDA margin was 6.6% for the second half outlook. Segment revenue is expected to increase 2.3% to ¥846 billion, and the segment EBITDA margin is expected to be 4.8% for the full year outlook.

Speaker #1: We have revised segment revenue to ¥1,000,000,000,675.4 billion and segment EBITDA margin to 5.7%, with only minor changes from the figures disclosed on May ninth.

Speaker #1: Next, I will discuss marketing matching technologies, or MMT, regarding Q2 results. Segment revenue increased by 6.3% year over year to ¥144.3 billion, with revenue growth across all subsegments.

Junichi Arai: Next, I will discuss Marketing Matching Technologies, or MMT. Regarding Q2 results, segment revenue increased by 6.3% year-over-year to JPY 144.3 billion with revenue growth across all sub-segments. Revenue in lifestyle, which consists of beauty, travel, dining, and solid solutions, increased by 8.5% to JPY 76.9 billion, driven by the continued growth in new business clients in beauty. Revenue in housing and real estate increased by 4.3% to JPY 38.5 billion, driven by the growth in the number of contracts closed for custom homes through SUUMO Counter, our face-to-face housing consultation service. Revenue in others, which includes car and bridal, increased by 3.5% to JPY 28.8 billion.

Speaker #1: Revenue in lifestyle , which consists of beauty , travel , dining and source solutions increased by 8.5% to ¥76.9 billion , driven by the continued growth in new business clients in beauty revenue in housing and real estate increased by 4.3% to ¥38.5 billion , driven by the growth in the number of contracts closed for custom homes through sumo .

Speaker #1: Counter . Our face to face housing consultation , service revenue in others , which includes car and bridal , increased by 3.5% to ¥28.8 billion .

Speaker #1: Segment EBITDA margin expanded to 32.3% , driven by appropriate cost control , principally related to service outsourcing expenses for the first half segment , revenue increased by 6.7% year on year to ¥281.2 billion , and the segment EBITDA margin was 31.9% for the second half , outlook , segment revenue is expected to increase by 3.7% to ¥286 billion , driven by continued strong performance in lifestyle , including growth in new business clients in beauty and dining , and continued increases in the number of room nights and unit price in travel segment EBITDA margin is expected to be 22.2% .

Junichi Arai: Segment EBITDA plus S margin expanded to 32.3%, driven by appropriate cost control, principally related to service outsourcing expenses. For the first half, segment revenue increased by 6.7% year-on-year to JPY 281.2 billion, and the segment EBITDA plus S margin was 31.9%. For the second half outlook, segment revenue is expected to increase by 3.7% to JPY 286 billion, driven by continued strong performance in lifestyle, including growth in new business clients in beauty and dining, and continued increases in the number of room nights and unit price in travel. Segment EBITDA plus S margin is expected to be 22.2%. I will now explain the background behind the significant difference in EBITDA plus S margins between the first half and the second half of MMT.

Speaker #1: I will now explain the background behind the significant difference in EBITDA plus margins between the first half and the second half of MMT.

Speaker #1: The primary factor is the seasonality of advertising and sales promotion expenses in the Japanese market. When planning for the next fiscal year, MMT carefully prioritizes these expenses across its subsegments, consolidating proposals submitted by the respective business units.

Junichi Arai: The primary factor is the seasonality of advertising and sales promotion expenses in the Japanese market. When planning for the next fiscal year, MMT carefully prioritizes these expenses across its sub-segments, consolidating proposals submitted by the respective business units. Based on the latest performance outlook during the fiscal year, MMT allocates funds intensively and effectively in line with these priorities when the number of actions by individual users on our matching platform increases. Our Q4 coincides with the timing when the number of actions taken by individual users increases the most within the fiscal year, due to the start of the new fiscal year in Japan in April, particularly in housing and real estate. By concentrating our spending on these expenses during this period every fiscal year, MMT aims to maintain and increase the revenue recognized in Q4 and in Q1 of the following fiscal year.

Speaker #1: Based on the latest performance outlook during the fiscal year, MMT allocates funds intensively and effectively in line with these priorities. When the number of actions by individual users on our matching platform increases.

Speaker #1: Our Q4 coincides with the timing when the number of actions taken by individual users increases the most within the fiscal year due to the start of the new fiscal year in Japan in April, particularly in housing and real estate.

Speaker #1: By concentrating our spending on these expenses during this period , every fiscal year , MMT aims to maintain and increase the revenue recognized in Q4 and in Q1 of the following fiscal year .

Speaker #1: In the previous fiscal year , approximately 36% of total annual sales commission promotion expenses and advertising expenses broadly defined as marketing related expenses , were recorded in Q4 .

Junichi Arai: In the previous fiscal year, approximately 36% of total annual sales commission, promotion expenses, and advertising expenses, broadly defined as marketing-related expenses, were recorded in Q4. Approximately 58% were recorded in the second half, with an EBITDA plus S margin of 28.6% for the first half and 22.4% for the second half. In this fiscal year, in addition to the concentration of usual seasonal expenses in the second half, we will increase sales promotion expenses exceeding initial projections to support new growth initiatives across multiple areas aimed at realizing increased revenue in fiscal year 2026 and beyond. As a result, we expect approximately 60% of the annual marketing-related expenses to be recognized in the second half of this fiscal year.

Speaker #1: And approximately 58% were recorded in the second half , with an EBITDA margin of 28.6% for the first half and 22.4% for the second half .

Speaker #1: In this fiscal year , in addition to the concentration of usual seasonal expenses in the second half , we will increase sales promotion expenses exceeding initial projections to support new growth initiatives across multiple areas aimed at realizing increased revenue in fiscal year 2026 and beyond .

Speaker #1: As a result, we expect approximately 60% of the annual marketing-related expenses to be recognized in the second half of this fiscal year.

Speaker #1: Moreover, we have a one-time impact from a planned update to the MTS accounting system at the end of the fiscal year. This upgrade will refine our revenue recognition policy, moving from a previous pro-rata monthly allocation method to a daily basis.

Junichi Arai: Moreover, we have a one-time impact from a planned update to MMT's accounting system at the end of the fiscal year. This upgrade will refine our revenue recognition policy, moving from a previous pro rata monthly allocation method to a daily basis recognition. This one-time transition means approximately JPY 5 billion in revenue and associated profit, which we had expected to book in March, will not be recognized within the current fiscal year. Taking this into account, we expect EBITDA plus plus margin for the second half to be 22.2% compared with 31.9% in the first half.

Speaker #1: Recognition . This one time transition means approximately ¥5 billion in revenue and associated profit , which we had expected to book in March .

Speaker #1: Will not be recognized within the current fiscal year , taking this into account , we expect EBITDA margin for the second half to be 22.2% compared with 31.9% in the first half .

Speaker #1: The full-year segment revenue outlook is largely unchanged, with an expected increase of 5.1% year over year to ¥567.2 billion, compared to the initial outlook of 5.1% year over year to ¥567 billion.

Junichi Arai: The full year segment revenue outlook is largely unchanged, with an expected increase of 5.1% year-over-year to JPY 567.2 billion, compared to the initial outlook of +5.1% year-over-year to JPY 567 billion even after reflecting the one-off impact from the revenue recognition refinement that I mentioned earlier. Due to the one-off profit impact segment, EBITDA plus plus margin has been revised downward from the initial outlook of 27.5% to 27.0%. Regarding our segment EBITDA plus plus margin, our future targets remain unchanged. MMT aims to reach segment EBITDA plus plus margin of 30% in FY2026 and approximately 35% by FY 2028. We plan to share specific details about initiatives to drive revenue growth in the next fiscal year soon.

Speaker #1: Even after reflecting the one off impact from the revenue recognition refinement that I mentioned earlier . Due to the one off profit impact segment , EBITDA margin has been revised downward from the initial outlook of 27.5% to 27.0% .

Speaker #1: Regarding our segment EBITDA margin , our future targets remain unchanged . MMT aims to reach segment EBITDA plus margin of 30% in fiscal year 2026 and approximately 35% by FY 2028 .

Speaker #1: We plan to share specific details about initiatives to drive revenue growth in the next fiscal year . Soon . Now , based on the segment outlooks , let me turn to our consolidated outlook for the second half .

Junichi Arai: Now, based on the segment outlooks, let me turn to our consolidated outlook for the second half. For the second half, we assume exchange rates of JPY 145 per USD and JPY 172 per EUR. As for the consolidated outlook for the second half of the fiscal year, revenue is expected to be JPY 1,805 billion. EBITDA+S is expected to be JPY 339 billion, with the EBITDA+S margin to be 18.8%. We have revised the full year consolidated guidance reflecting the first half results and the second half outlook for each segment.

Speaker #1: For the second half , we assume exchange rates of ¥145 per US dollar and ¥172 per euro . As for the consolidated outlook for the second half of the fiscal year , revenue is expected to be ¥1,000,000,000,805 billion .

Speaker #1: EBITDA plus is expected to be ¥339 billion , with the EBITDA margin to be 18.8% . We have revised the full year consolidated guidance reflecting the first half results and the second half outlook of for each segment , revenue guidance has been revised from ¥3,000,000,000,520 billion , -1.1% year over year , to ¥3,000,000,000,598.5 billion , plus 1.2% year over year .

Junichi Arai: Revenue guidance has been revised from JPY 3,520 billion -1.1% year-over-year to JPY 3,598.5 billion +1.2% year-over-year. EBITDA+S has been revised from JPY 697 billion +2.7% year-over-year to JPY 733.5 billion +8.1% year-over-year. EBITDA+S margin is expected to be 20.4%, with EBITDA+S margin over gross profit assumed to be 34.5%.

Speaker #1: EBITDA plus has been revised from ¥697 billion , plus 2.7% year over year to ¥733.5 billion , plus 8.1% year over year EBITDA margin is expected to be 20.4% , with EBITDA plus margin over growth .

Speaker #1: Profit assumed to be 34.5% . Profit attributable to owners of the parent has been revised to ¥448.3 billion , representing an increase of 9.8% from last fiscal year and basic EPs is revised to ¥313 , up 15.3% year over year , reflecting the impact of share repurchases .

Junichi Arai: Profits attributable to owners of the parent has been revised to JPY 448.3 billion, representing an increase of 9.8% from the last fiscal year. Basic EPS is revised to JPY 313, up 15.3% year-over-year, reflecting the impact of share repurchases. Consolidated full year results will be expected to reach new record highs. Our capital allocation measures. I would like to cover this topic last. During the first half, we repurchased approximately 53 million shares for JPY 423.7 billion. Consolidated net cash and cash equivalents as of the end of September was JPY 590.5 billion.

Speaker #1: Consolidated full year results will be expected to reach new record highs . Our capital allocation measures . I would like to cover this topic last .

Speaker #1: During the first half, we repurchased approximately 53 million shares for ¥423.7 billion. Consolidated net cash and cash equivalents as of the end of September was ¥590.5 billion.

Speaker #1: A new share repurchase program with an upper limit of ¥250 billion , started on October 17th , and the market repurchase is currently being conducted through an appointed securities dealer with transaction discretion .

Junichi Arai: A new share repurchase program with an upper limit of JPY 250 billion started on 17 October, and the market repurchase is currently being conducted through an appointed securities dealer with transaction discretion. The repurchase period is scheduled to continue until 30 April 2026 at the latest. We note that following the commencement of the share repurchase program, we may consider and execute strategic M&A transactions. The board of directors resolved today to pay an interim dividend of JPY 12.5 per share. The total per share dividend amount is expected to be JPY 25.0. We retired treasury stock in March of both fiscal year 2023 and fiscal year 2024 using shares acquired during the respective fiscal years.

Speaker #1: The repurchase period is scheduled to continue until April 30th , 2026 , at the latest . We note that following the commencement of this share repurchase program , we may consider and execute strategic M&A transactions .

Speaker #1: The Board of Directors resolved today to pay an interim dividend of ¥12.50 per share. The total per share dividend amount is expected to be ¥25.00.

Speaker #1: We retired Treasury stock in March of both fiscal year 2023 and fiscal year 2024 , using shares acquired during the respective fiscal years .

Speaker #1: We will also consider retiring the Treasury stock to be acquired through our share repurchase programs in fiscal year 2025 . At the end of the fiscal year , taking into account market and business conditions .

Junichi Arai: We will also consider retiring the treasury stock to be acquired through our share repurchase programs in fiscal year 2025 at the end of the fiscal year, taking into account market and business conditions. Finally, regarding the total payout ratio for the fiscal year, if we assume the currently ongoing JPY 250 billion share repurchase program is completed within the current fiscal year, in addition to the share repurchase results up to 30 September of this year, the total amount of shares repurchased this fiscal year will be JPY 677.9 billion. Taking into account the expected dividend for this fiscal year, the total payout ratio is expected to be approximately 159% based on our full year consolidated earnings forecast announced today. This concludes my presentation.

Speaker #1: Finally , regarding the total payout ratio for the fiscal year , if we assume the currently ongoing ¥250 billion share repurchase program is completed within the current fiscal year , in addition to the share repurchase results up to September 30th of this year , the total amount of shares repurchased this fiscal year will be ¥677.9 billion .

Speaker #1: Additionally, taking into account the expected dividend for this fiscal year, the total payout ratio is expected to be approximately 159%. This is based on our full year consolidated earnings forecast announced today.

Speaker #1: This concludes my presentation . Now , we'd like to proceed to the Q&A session . If anybody has a question , please click on the Zoom Raise hand button .

Mizuho Shen: Now we'd like to proceed to the Q&A session. If anybody has a question, please click on the Zoom raise hand button. Please unmute before asking your question. Please limit your question to one initial question and one follow-up question per turn. We would like to start the Q&A session. First, Nomura Securities, Ono-san, please. This is Ono from Nomura Securities. Thank you very much. My first question, US ARPJ second half plan, 16% increase, you said. Majority of that is Premium Sponsored ad contribution. Is that correct? Are there non-premium factors? Thank you very much. Thank you for the question. Of course, Premium contribution is expected, but it's not only that. There are various factors that will contribute to this number. We have incorporated other factors. As I mentioned earlier, subscription sales have partially started.

Speaker #1: Please unmute before asking your question . Please limit your question to one initial question and one follow up question per turn . We would like to start the Q&A session .

Speaker #1: So first , Nomura Securities owner Sam , please . This is Ono from securities . Thank you very much . So my first question usually second half plan 16% increase .

[Analyst] (Nomura Securities): This is Ono from Nomura Securities. Thank you very much. My first question, US ARPJ second half plan, 16% increase, you said. Majority of that is Premium Sponsored ad contribution. Is that correct? Are there non-premium factors? Thank you very much.

Speaker #1: You said majority of that is premium sponsored as contribution . Is that correct ? Are there non premium factors . Thank you very much .

Junichi Arai: Thank you for the question. Of course, Premium contribution is expected, but it's not only that. There are various factors that will contribute to this number. We have incorporated other factors. As I mentioned earlier, subscription sales have partially started.

Speaker #1: Thank you for the question. Of course, premium contribution is expected. But it's not only that; there are various factors that will contribute to this number.

Speaker #1: We have incorporated other factors . As I mentioned earlier subscription sales have partially started . And according to what we experience now , it seems like we are .

Mizuho Shen: According to what we experience now, it seems like we, this is gaining traction. It is received positively. As I mentioned earlier, market will continue mildly expanding. We want to harvest and exert this monetization impact. Whether you think this is questionable or aggressive or we can do more, I hope you could take a good guess. There are existing ones and the newly developed ones, newly launched ones. When we announce our Q3 results, we will share with you what contributed to the results. Thank you. My follow-up question is the current status of premium, if you could elaborate on that?

Junichi Arai: According to what we experience now, it seems like we, this is gaining traction. It is received positively. As I mentioned earlier, market will continue mildly expanding. We want to harvest and exert this monetization impact. Whether you think this is questionable or aggressive or we can do more, I hope you could take a good guess. There are existing ones and the newly developed ones, newly launched ones. When we announce our Q3 results, we will share with you what contributed to the results.

Speaker #1: This is gaining traction . It is received positively . And as I mentioned earlier , market will continue mildly expanding . So we want to harvest and exert this monetization impact .

Speaker #1: So . Whether you think this is questionable or aggressive or we can do more , I hope you could take a good guess .

Speaker #1: So there are existing ones and the newly developed ones , newly launched ones . So when we announce our Q3 results , we will share with you what contributed to the results .

[Analyst] (Nomura Securities): Thank you. My follow-up question is the current status of premium, if you could elaborate on that?

Speaker #1: Thank you . And my follow up question is . The current status of premium . If you could elaborate on that . I know it is difficult to disclose , but the breakdown between standard and premium , for example .

Mizuho Shen: I know it is difficult to disclose, but the breakdown between standard and premium, for example, what is the percentage of premium and the number of countries or regions that you have deployed this, where you stand. If you could give us a hint on penetration, it would be helpful. Today we focused on the US. How impactful a premium is in the US market and how things look like in Europe. I hope we can use different parameter to explain going forward. Today we are focusing on the US. When we disclose these numbers, what is the revenue breakdown or Hosted Jobs or Indexed Jobs? All these breakdown will continue. For today, we'd like to refrain from giving you the breakdown. The number of users using this is increasing as we speak. Thank you. Understood.

[Analyst] (Nomura Securities): I know it is difficult to disclose, but the breakdown between standard and premium, for example, what is the percentage of premium and the number of countries or regions that you have deployed this, where you stand. If you could give us a hint on penetration, it would be helpful.

Speaker #1: What is the percentage of premium and the number of countries or regions that you have deployed ? This where you stand . So if you could give us a hint on penetration , it would be helpful .

Junichi Arai: Today we focused on the US. How impactful a premium is in the US market and how things look like in Europe. I hope we can use different parameter to explain going forward. Today we are focusing on the US. When we disclose these numbers, what is the revenue breakdown or Hosted Jobs or Indexed Jobs? All these breakdown will continue. For today, we'd like to refrain from giving you the breakdown. The number of users using this is increasing as we speak.

Speaker #1: So today we focused on the U.S. So how impactful a premium is in the U.S. market? And how do things look like in Europe?

Speaker #1: I hope we can use different parameter to explain going forward . But today we are focusing on the US . And when we disclose these numbers , then what is the revenue breakdown or hosted or indexed ?

Speaker #1: All these breakdown will continue . So for today . We'd like to refrain from giving you the breakdown . But . The number of users using this is increasing as we speak .

[Analyst] (Nomura Securities): Thank you. Understood. I already used my right for one follow-up question, but in the Premium, there are many functions. What is received well, particularly?

Speaker #1: Thank you . Understood . I already used my right for one follow up question , but in the premium there are many functions .

Mizuho Shen: I already used my right for one follow-up question, but in the Premium, there are many functions. What is received well, particularly? The biggest reason from migration from standard to Premium, merchant hiring. Idekoba says what we newly add on Premium is what we often discuss and any new things we can launch in the non-Premium. What we include in the package, what we exclude from the package, and the combination thereof, and how we deliver this, offer this to our users and have received the payment. There's so many things, factors that we consider. Of course, we may add new functions to raise the price of Premium package in some case or do something else. I think the combination is diverse.

Speaker #1: What is received ? Well , particularly . So the biggest reason from migration from standard to premium . Merchant hiring or vehicle says what we newly add on premium is what we often discuss .

Junichi Arai: The biggest reason from migration from standard to Premium, merchant hiring. Idekoba says what we newly add on Premium is what we often discuss and any new things we can launch in the non-Premium. What we include in the package, what we exclude from the package, and the combination thereof, and how we deliver this, offer this to our users and have received the payment. There's so many things, factors that we consider. Of course, we may add new functions to raise the price of Premium package in some case or do something else. I think the combination is diverse.

Speaker #1: And any new things we can launch in the non-premium . So what we include in the package , what we exclude from the package and the combination thereof , and how we deliver this offer this to our users and receive the payment .

Speaker #1: There are so many things, factors that we consider. So, of course, we may add new functions to raise the price of the premium package.

Speaker #1: In some cases, we can do something else. I think the combination is diverse, so we may add some new functions to increase the unit price or take another option.

Mizuho Shen: We may add some new functions to increase the unit price or take another option, and that all determines the final result. We may share with you Q3, Q4 results on that. I hope you could look forward to it. The candidate and the targeting function, there are industries that like that and not so well in other industries. For the industries where this is popular, the numbers are showing. I cannot say this across the board. It's difficult to make a general comment. Markets is large and the needs differ from client to client. Thank you.

Junichi Arai: We may add some new functions to increase the unit price or take another option, and that all determines the final result. We may share with you Q3, Q4 results on that. I hope you could look forward to it. The candidate and the targeting function, there are industries that like that and not so well in other industries. For the industries where this is popular, the numbers are showing. I cannot say this across the board. It's difficult to make a general comment. Markets is large and the needs differ from client to client.

Speaker #1: And that all determines the final result. So we may share with you Q3, Q4 results on that. I hope you could look forward to it.

Speaker #1: So the candidate and the targeting function . Are there are industries that like that and not so well in other industries . So .

Speaker #1: For the industries where this is popular, the numbers are showing. So it cannot say this across the board. It's difficult to make a general comment.

Speaker #1: Markets is large and the knees differ from client to client . So thank you . Thank you . Next Minakata San from Goldman Sachs Securities .

[Analyst] (Nomura Securities): Thank you.

Junichi Arai: Thank you. Next, Munakata San from Goldman Sachs Securities, please go ahead. Hello, I am Munakata from Goldman Sachs. Thank you for this opportunity to ask questions. Regarding the Q2 US, Indeed growth is quite strong, which is reassuring listening to your presentation. In addition, you've also disclosed the Average Revenue per Job Posting growth rate, which is very helpful. Here's my question. Comparing, you have the bar graph showing the index and the revenue overlapping. The divergence between the index and the revenue with more monetization developments, you mentioned that this would increase. Currently the assumption for the growth rate is 16% for the second half, which is at a high level.

Mizuho Shen: Thank you. Next, Munakata San from Goldman Sachs Securities, please go ahead.

Speaker #1: Please go ahead . Hello I am Nakata from Goldman Sachs . Thank you for this opportunity to ask questions regarding the second quarter .

Minami Munakata: Hello, I am Munakata from Goldman Sachs. Thank you for this opportunity to ask questions. Regarding the Q2 US, Indeed growth is quite strong, which is reassuring listening to your presentation. In addition, you've also disclosed the Average Revenue per Job Posting growth rate, which is very helpful. Here's my question. Comparing, you have the bar graph showing the index and the revenue overlapping. The divergence between the index and the revenue with more monetization developments, you mentioned that this would increase. Currently the assumption for the growth rate is 16% for the second half, which is at a high level.

Speaker #1: Us indeed , growth is quite strong , which is reassuring . Listening to your presentation and in addition , the . You've also disclosed the average revenue per job posting , a growth rate which is very helpful .

Speaker #1: And here's my question comparing you have the bar graph showing the index and the revenue overlapping the divergence between the index and the revenue with more monetization developments , you mentioned that this would increase , but currently the the assumption for the growth rate is 16% for the second half , which is at a high level .

Speaker #1: So from next fiscal year onwards , should we expect that this growth rate , the US R j growth rate will be maintained or even be higher ?

Junichi Arai: From next fiscal year onwards, should we expect that this growth rate, the US ARPJ growth rate will be maintained or even be higher? Is that realistic? More recently, Indeed Talent Scout and other services have been announced and monetization of these new services, I don't think will come in in this fiscal year, but more so for the next fiscal year. Is that something we should expect? For the Q2, the results... Perhaps this is not something I should mention much to external parties, but I think the results have some of the Deco effects. Currently, Deco is on the ground leading various efforts, monetization developments, and perhaps there will be questions about this later from someone else.

Minami Munakata: From next fiscal year onwards, should we expect that this growth rate, the US ARPJ growth rate will be maintained or even be higher? Is that realistic? More recently, Indeed Talent Scout and other services have been announced and monetization of these new services, I don't think will come in in this fiscal year, but more so for the next fiscal year. Is that something we should expect?

Speaker #1: Is that realistic ? And also more recently indeed , talent Scout and other services have been announced . And monetization of these new services .

Speaker #1: I don't think will come in in this fiscal year . But more so for the next fiscal year . Is that something we should expect for the second quarter ?

Junichi Arai: For the Q2, the results... Perhaps this is not something I should mention much to external parties, but I think the results have some of the Deco effects. Currently, Deco is on the ground leading various efforts, monetization developments, and perhaps there will be questions about this later from someone else.

Speaker #1: The results ? Perhaps this is not something I should mention much to external parties , but I think the results have some of the Deco effects .

Speaker #1: Currently, Deco is on the ground leading various efforts in monetization developments, and perhaps there will be questions about this later from someone else.

Speaker #1: But we are also working on increasing efficiency of the business at such a high speed . We are working on both of these efforts in parallel today .

Junichi Arai: We are also working on increasing efficiency of the business at such a high speed. We are working on both of these efforts in parallel. Today in my presentation, I talked about revenue outlook for Q3 and Q4 and also our interpretation of the index, our expectation of the index. This is the latest information, latest data that we are sharing. At least for Q3 and Q4, we believe this is the level of impact of the monetization developments that we should expect. That is the pace that we are observing. For the next fiscal year, we've said that there will be many different things set to be introduced on a subscription basis. There will be an AI tool to be offered.

Speaker #1: In my presentation, I talked about the revenue outlook for the third and fourth quarters, as well as our interpretation of the index and our expectations for the index.

Speaker #1: This is the latest information , the latest data that we are sharing , at least for the third and the fourth quarters . We believe this is the level of impact of the monetization developments that we should expect .

Speaker #1: That is the pace that we are observing for the next fiscal year . We've said that there will be many different things that will be introduced on the basis there will be an AI tool to be offered , things that are new , that we have not done before will be introduced in the next fiscal year .

Junichi Arai: Things that are new, that we have not done before, will be introduced in the next fiscal year. For these new services to be translated into value and how we should monetize in tandem, these are some of the things that we are currently considering. As for the market condition, for fiscal year, or calendar year 2026, we are making assumptions. Based on those assumptions, we are considering what should be the US results that we can achieve for the next fiscal year. It's not simply based on what we currently have. There will be new things that we will be stopping, and by combination of these various different pieces, we are thinking about how we can increase our KPI and to reach the numbers that we've disclosed.

Speaker #1: So for these new services to be translated into value and how we should monetize in tandem , these are some of the things that we are currently considering .

Speaker #1: As for the market condition for fiscal year or calendar year 2026 , we are making assumptions and based on those assumptions , we are considering what should be the US results that we can achieve for the next fiscal year .

Speaker #1: So it's not simply based on what we currently have . There will be new things , things that we will be stopping and by combination of these various different pieces , we are thinking about how we can increase our KPI and to reach the numbers that we've disclosed .

Speaker #1: I consider these KPIs to be quite challenging . Tough KPIs with the market recovery with an increase in the number of jobs , even if we achieve the same level of growth .

Junichi Arai: I consider these KPIs to be quite challenging, tough KPIs. With the market recovery, with an increase in the number of jobs, even if we achieve the same level of growth, the growth rate itself does not increase. Therefore, we have to always overachieve in order for the growth rate to increase. Irrespective of the market recovery, we have to consider what are some of the pieces we need to introduce in order to increase and increase revenues that we receive from our clients. For next year, what will happen, of course, will be something we will be talking about in February and May. The fact that we've disclosed this time, shows our unwavering resolve and determination for this. Thank you. I think I personally felt that determination through your presentation.

Speaker #1: The growth rate itself does not increase . Therefore , we have to always overachieve in order for the growth rate to increase . So irrespective of the market recovery , we have to consider what are some of the pieces we need to introduce in order to increase and increase revenues that we receive from our clients .

Speaker #1: So for next year , what will happen ? Of course , will be something we will be talking about in February and May .

Speaker #1: But the fact that we've disclosed this this time shows our unwavering resolve and determination for for this . Thank you . I think I personally felt that determination through your presentation as a follow up in my recent conversation with investors on our side .

Minami Munakata: Thank you. I think I personally felt that determination through your presentation. As a follow-up, in my recent conversation with investors on our side, generative AI services have become more common, and some investors have said that things like ChatGPT, these are generative AI services provided by others. Perhaps Indeed's services may be replaced by services offered by other companies. That's a concern voiced by some investors. Could you elaborate once again on the strengths of Indeed?

Junichi Arai: As a follow-up, in my recent conversation with investors on our side, generative AI services have become more common, and some investors have said that things like ChatGPT, these are generative AI services provided by others. Perhaps Indeed's services may be replaced by services offered by other companies. That's a concern voiced by some investors. Could you elaborate once again on the strengths of Indeed? For the past several months when I met with investors, I myself have received the same questions from them. Well, what I said, how I responded to those questions at the time was that when a job seeker uses things like ChatGPT asking whether there is any good job out there, the ChatGPT says, What about this? It also offers to write a nice resume.

Speaker #1: Generative AI services have become more common, and some investors have said that things like ChatGPT are generative AI services provided by others.

Speaker #1: Perhaps . Indeed , services may be replaced by services offered by other companies . So that's a concern . Voiced by some investors .

Speaker #1: Could you elaborate ? Once again on the strengths of indeed . For the past several months , when I met with investors , I myself have received the same questions from them and what I said , how I responded to those questions at the time was that when a job seeker .

Junichi Arai: For the past several months when I met with investors, I myself have received the same questions from them. Well, what I said, how I responded to those questions at the time was that when a job seeker uses things like ChatGPT asking whether there is any good job out there, the ChatGPT says, What about this? It also offers to write a nice resume.

Speaker #1: Uses things like ChatGPT asking whether there is any good job out there , the ChatGPT says , what about this ? And it also offers to write a nice resume .

Speaker #1: I think that's a very plausible scenario . But then what would happen ? So those are some of the questions that I actually received from the investors .

Junichi Arai: I think that's a very plausible scenario. What would happen? Those are some of the questions that I actually received from the investors. At the time, what I said was that job seekers, if that were to happen, they would be able to apply to more jobs since it's now easier. I think that's something that we can expect to happen. If that is the case, how can we provide high-quality matching service and to address both job seekers and business clients to help them reach high-quality jobs or high-reach candidates? I think that's one direction that will certainly be important. Job seekers may be sending in hundreds of applications, but they are not getting any reply because this puts a lot of burden on the business client side, the employer side.

Speaker #1: And at the time , what I said was that job seekers , if that would , that were to happen . They would be able to apply to more jobs since it's now easier .

Speaker #1: I think that's something that we can expect to happen and if that is the case , how can we provide high quality matching service ?

Speaker #1: And to address both job seekers and business clients to . To help them reach a high quality jobs or high reach candidates . So I think that's one direction that will certainly be important .

Speaker #1: Job seekers may be sending in hundreds of applications , but they are not getting any reply because this puts a lot of burden on the business client side .

Speaker #1: The employer side . So Deco has said this from before when matching becomes more difficult , how can we support the process ? Is important ?

Junichi Arai: Deco has said this from before, when matching becomes more difficult, how can we support the process is important. It's not simply placing advertisement or rather, how can we help business clients discover high quality candidates? How can we help them select a better competitive candidates? I think, these are the kind of services that will be in demand. In that sense, as I said, we have a two-sided marketplace. The fact that we have such a talent marketplace helps us increase the efficiency of matching. That's how I responded to the questions from investors. Whether it's Yahoo, Google, or Facebook, there are already excellent platforms for jobs and technologies available for jobs.

Speaker #1: It's not simply placing advertisements or rather , how can we help business clients discover high quality candidates ? How can we help them select a better competitive candidates ?

Speaker #1: I think these are the kind of services that will be in demand . So in that sense , as I said , we have a two sided marketplace .

Speaker #1: The fact that we have such talent marketplace helps us increase the efficiency of matching . So that's how I responded to the questions from investors .

Speaker #1: Whether it's Yahoo, Google, or Facebook, there are already excellent platforms for jobs and technologies available for jobs. Other services have been in place and.

Junichi Arai: Other services have been in place. Maybe if it was 10 years ago, people thought that they already had these platforms and we would be no match. If we look at the reality, the story is different. Maybe some companies started and they were not successful. For e-commerce, rather than booking or e-commerce, there are things out there that are mass-produced. As long as you pay for them, you can acquire. Jobs are different. There is only one job, and selecting the right candidate, this is determined solely by the employers who are looking to hire people. This is where we are different from EC and booking. In other words, it's always two-way, two-sided.

Speaker #1: Maybe if it was ten years ago , people thought that they already had these platforms and we would be no match . But if we look at the reality , the story is different .

Speaker #1: Maybe some companies started and they were not successful with e-commerce, rather than booking or e-commerce. There are things out there that are mass-produced.

Speaker #1: As long as you pay for them, you can acquire. But jobs are different; there is only one job and selecting the right candidates.

Speaker #1: This is a solely by the employers who are looking to hire people . So this is where we are different from EC and booking .

Speaker #1: In other words , it's always two two way to sided . And I believe the fact that we have the two sided Italian marketplace , this will continue to be appreciated by the two parties .

Junichi Arai: I believe the fact that we have the two-sided talent marketplace, this will continue to be appreciated by the two parties and to continue to be used by both sides. I think that's the nature of our business. My answer might not have been concise, but I often talk about things like this whenever I receive those questions. I understand the concept well now. Thank you. How should I say? What can we offer to business clients? Simplifying hiring or helping clients determine whether a candidate is qualified or not, whether this candidate is a real human person or not. I think in the future, there will need to be various aspects that need to be addressed. By strengthening these pieces, I believe we will be able to differentiate ourselves. That's what Deco said. I see.

Speaker #1: And to continue to be used by both sides. I think that's the nature of our business. My answer might not have been concise, but I often talk about things like this whenever I receive those questions.

Speaker #1: I understand the concept well now. Thank you. So how should I say it? What can we offer to business clients? Simplifying.

Speaker #1: Hiring or helping clients determine whether a candidate is qualified or not, and whether this candidate is a real human person or not.

Speaker #1: I think in the future there will need to be very aspects that need to be addressed . So by strengthening these pieces , I believe we will be able to differentiate ourselves .

Speaker #1: And what they said I see . Thank you very much . Thank you very much . Next , SMBC Nikko Securities , Midas , please .

Minami Munakata: I see. Thank you very much.

Junichi Arai: Thank you very much.

Mizuho Shen: Thank you very much. Next, SMBC Nikko Securities, Maeda-san, please. SMBC Nikko Securities, Maeda is my name. Thank you. You have this proprietary original investment, improvement, and generating results. It's great. The market model does not need to be worried, but once every time we see the statistics, like you said, the job, we think we'll hit the bottom in Q4 as the stock market is having a more difficult view. Maybe that is reflected in your share price. Once again, you think that the job trend will bottom out or show signs of bottoming out in Q4? Any changes in your forecast? Are there any risks? When we say bottom, it is an image of ticking and turning upward. We tend to think of bottoming out that way.

Mizuho Shen: Thank you very much. Next, SMBC Nikko Securities, Maeda-san, please.

Speaker #1: Speak , security . My dad is my name . Thank you . So you have this proprietary original investment improvement and generating results .

Tsuyoshi Maeda: SMBC Nikko Securities, Maeda is my name. Thank you. You have this proprietary original investment, improvement, and generating results. It's great. The market model does not need to be worried, but once every time we see the statistics, like you said, the job, we think we'll hit the bottom in Q4 as the stock market is having a more difficult view. Maybe that is reflected in your share price. Once again, you think that the job trend will bottom out or show signs of bottoming out in Q4? Any changes in your forecast? Are there any risks?

Speaker #1: It's great . So the market model does not need to be worried . But . Once every time we see the statistics , like you said , the job , we think we'll hit the bottom in Q4 as the stock market stock market is having a more difficult view .

Speaker #1: And maybe that is reflected in your share price. But once again, do you think that the job trend will bottom out or show signs of bottoming out in Q4? Are there any changes in your forecast, and are there any risks?

Junichi Arai: When we say bottom, it is an image of ticking and turning upward. We tend to think of bottoming out that way. Even when there is a bottom, it does not necessarily mean a rapid recovery. At the same time, it may not be overall trend. Industries may show different trends. We are starting to see many industries stopping their decline. The US labor market is impacted positively. The decline in the labor supply in the US is already impacting the market, so we do not think it will continue declining sharply going forward. That said, it may not show a V shape to recovery right away. To repeat my message. How we show our KPI US ARPJ, how we raise our US ARPJ, our important KPI, this is our focus.

Speaker #1: So when we say bottom . It is an image of ticking and turning upward . We tend to think of bottoming out that way .

Speaker #1: But even when there is a bottom, it does not necessarily mean a rapid recovery. At the same time, it may not be an overall trend.

Mizuho Shen: Even when there is a bottom, it does not necessarily mean a rapid recovery. At the same time, it may not be overall trend. Industries may show different trends. We are starting to see many industries stopping their decline. The US labor market is impacted positively. The decline in the labor supply in the US is already impacting the market, so we do not think it will continue declining sharply going forward. That said, it may not show a V shape to recovery right away. To repeat my message. How we show our KPI US ARPJ, how we raise our US ARPJ, our important KPI, this is our focus.

Speaker #1: Industries may show different trends . We are starting to see many industries stopping their decline . So the US labor market . Is impacted positively .

Speaker #1: So the decline in the labor supply in the US is already impacting the market . So . We do not think it will continue declining sharply going forward .

Speaker #1: That said, it may not show a V-shaped recovery right away. So, to repeat my message: how we show our KPI, USPP, and how we raise our USGP, our important KPI.

Speaker #1: This is our focus . Thank you . My follow up question . So if things go as they top line is growing as expected , but at one point in the future you may shift gears to M&A .

Junichi Arai: Thank you. My follow-up question.

Tsuyoshi Maeda: Thank you. My follow-up question. If things go as expected, top line is growing as expected, but at one point in the future, you may shift gears to M&A. You are reducing costs through efficiencies. Once the projection changes, your costs will start rising again from Q4 to next fiscal year. What is your basic thinking of investment in this business?

Mizuho Shen: If things go as expected, top line is growing as expected, but at one point in the future, you may shift gears to M&A. You are reducing costs through efficiencies. Once the projection changes, your costs will start rising again from Q4 to next fiscal year. What is your basic thinking of investment in this business? As we've been mentioning from the past, we do not think of doing M&A to increase our revenue. Even if we do that, it is for the future. As we received questions earlier, how we improve our US ARPJ in the future will be the end goal. For that purpose, we may do M&A. We will not do M&A for short-term increase in the revenue or improve the margin by reducing the headcount. We are not thinking of that at all.

Speaker #1: You are reducing costs through efficiencies. So, once the projection changes, your cost will start rising again from Q4 to the next fiscal year.

Speaker #1: What is your basic thinking of investment in this business ? As we've been mentioning from the past ? We do not think of doing M&A to increase our revenue , even if we do that , it is for the future .

Junichi Arai: As we've been mentioning from the past, we do not think of doing M&A to increase our revenue. Even if we do that, it is for the future. As we received questions earlier, how we improve our US ARPJ in the future will be the end goal. For that purpose, we may do M&A. We will not do M&A for short-term increase in the revenue or improve the margin by reducing the headcount. We are not thinking of that at all.

Speaker #1: As we received questions earlier, how we improve our USPP in the future will be the end goal. So for that purpose, we may do M&A.

Speaker #1: We will not do M&A for short term increase in the revenue . Or improve the margin by reducing the headcount . We are not thinking of that at all .

Speaker #1: So M&A will not have an impact in the short term . But it will be impactful in the long run . So . It will not impact in the performance in the short term .

Mizuho Shen: M&A, will not have an impact in the short-term, but will be impactful in the long run. It will not impact in the performance in the short-term. We will continue thinking on how we improve US ARPJ growth rate. It's same thing in the US and further improvement in Japan. Once we see that, revenue will rise and costs can go down. I think, that combination, it's to steadily, pursue this organically. Thank you.

Junichi Arai: M&A, will not have an impact in the short-term, but will be impactful in the long run. It will not impact in the performance in the short-term. We will continue thinking on how we improve US ARPJ growth rate. It's same thing in the US and further improvement in Japan. Once we see that, revenue will rise and costs can go down. I think, that combination, it's to steadily, pursue this organically. Thank you.

Speaker #1: We will continue thinking on how we improve Uspp growth rate . Same thing in the US and further improvement in Japan . Once we see that revenue will rise and cost can go down .

Speaker #1: So I think that combination it's to steadily pursue this organically . Thank you . Thank you very much . Yamamura San . From JP Morgan securities .

Junichi Arai: Thank you very much. Yamamura San from J.P. Morgan Securities, please go ahead. Thank you. This is Yamamura from J.P. Morgan. Can you hear me? Yes, please go ahead. I just have 1 question. For me, regarding the outlook for the job postings, there may be 2 questions, actually. I have a question around that. In the 2nd half, you're expecting moderate recovery. There may not be a V-shaped recovery, there should be a bottoming out in the Q4, which is, I think, a good thing. As Maeda San pointed out, it is true, the common debate, common discussion, there are 2 aspects. One is in North America, there has been restrictions on immigration, if there is continued shortage of labor, it would put a lot of stress on Recruit.

Tsuyoshi Maeda: Thank you very much.

Mizuho Shen: Yamamura San from JPMorgan Securities, please go ahead. Thank you.

Speaker #1: Please go ahead . Thank you , says Yamamura from JP Morgan . Can you hear me ? Yes . Please go ahead . I just have one question for me regarding the the outlook for the Java postings .

Junko Yamamura: This is Yamamura from JPMorgan. Can you hear me? Yes, please go ahead. I just have 1 question. For me, regarding the outlook for the job postings, there may be 2 questions, actually. I have a question around that. In the 2nd half, you're expecting moderate recovery. There may not be a V-shaped recovery, there should be a bottoming out in the Q4, which is, I think, a good thing. As Maeda San pointed out, it is true, the common debate, common discussion, there are 2 aspects. One is in North America, there has been restrictions on immigration, if there is continued shortage of labor, it would put a lot of stress on Recruit.

Speaker #1: There may be two questions , actually , I have a question around that . In the second half , you're expecting moderate recovery .

Speaker #1: There may not be a V-shaped recovery , but there should be a bottoming out in the Q4 , which is , I think , a good thing .

Speaker #1: As Maeda-san pointed out, it is true that there is common debate and common discussion. There are two aspects. One is in North America.

Speaker #1: There have been restrictions on immigration. If there is a continued shortage of labor, it would put a lot of stress on recruitment.

Speaker #1: And with the introduction of AI , of course , this would also impact recruits business . So these are the two points often raised whenever we discuss this .

Junichi Arai: With the introduction of AI, of course, this would also impact the Recruit's business. These are the two points often raised whenever we discuss this. I would like to hear your views on these. With even more shortage of labor, perhaps the business clients are more motivated to hire. With the introduction of AI, maybe some companies or some jobs that will no longer require human labor, but for higher quality talent that companies are willing to pay for, I think there is a huge or even a bigger demand for such talent. With the efforts that you're currently implementing, the monetization developments perhaps will positively mesh with these developments in the market. What is your view on the future state of your business?

Junko Yamamura: With the introduction of AI, of course, this would also impact the Recruit's business. These are the two points often raised whenever we discuss this. I would like to hear your views on these. With even more shortage of labor, perhaps the business clients are more motivated to hire. With the introduction of AI, maybe some companies or some jobs that will no longer require human labor, but for higher quality talent that companies are willing to pay for, I think there is a huge or even a bigger demand for such talent. With the efforts that you're currently implementing, the monetization developments perhaps will positively mesh with these developments in the market. What is your view on the future state of your business?

Speaker #1: So I would like to hear your views on these, with even more shortage of labor. Perhaps the business clients are more motivated to hire with the introduction of AI. Maybe some companies or some jobs will no longer require human labor, but for higher quality talent that companies are willing to pay for.

Speaker #1: I think there is a huge or even a bigger demand for such talent . So with the the efforts that you are currently implementing the monetization developments , perhaps will positively mesh with these developments in the market .

Speaker #1: So what is your view on the future state of your business ? Well , this is what Deco says . The US market is becoming closer and more similar to the Japanese market .

Mizuho Shen: Well, this is what Decho says. The US market is becoming closer and more similar to the Japanese market, so that's one thing. That's what he's saying. Over the past decades, Japan, the Japanese market has experienced a tightness, a labor population declining.

Junichi Arai: Well, this is what Deko says. The US market is becoming closer and more similar to the Japanese market, so that's one thing. That's what he's saying. Over the past decades, Japan, the Japanese market has experienced a tightness, a labor population declining.

Speaker #1: So that's one thing that's what he's saying . Over the past decades , Japan , the Japanese market has experienced tightness . The labor population declining , the population aging and others .

Junichi Arai: The population aging and others. We are seeing similar things in the US market, and he's saying the market in the US is becoming more similar to the Japanese market. As Yamamura-san said, things are happening in the market. What is happening today, what has happened, perhaps if you trace them back to what has already happened in the Japanese market, you can certainly see a similar trend. The number of job postings is actually increasing. Idekoba today said this in one meeting. He of course looks at the various stats, and he tries to explain them to us.

Speaker #1: So we are seeing a similar things in the US market . And he's saying the market in the US is becoming more similar to the Japanese market .

Speaker #1: So as Yamamura San said , things are happening in the market . What is happening today , what has happened , perhaps if you trace them back to what have has already happened in the Japanese market , you can certainly see the similar trend in the .

Speaker #1: The number of job postings is actually increasing and they today said this in one meeting . He of course looks at the various stats and he tries to explain them to to us .

Speaker #1: He looked at the past examples of the US market and from the latter half of the 1990s to 20 tens , over a 15 year period , the number of workers in factories in the US decreased from 17 million to 11 million .

Junichi Arai: He looked at past examples of the US market from the latter half of the 1990s to 2010s over a 15-year period, the number of workers in factories in the US decreased from 17 million to 11 million. However, the production outputs actually increased over the same period. The white collar in the US is said to be 30 million. With AI introduction, I think this is a segment of laborers that would be most impacted by AI. We may see some decrease, but as I said, things that happened in the factory workers could happen. The unemployment rate as a result of these things did not actually increased. Rather, workers were redistributed to other jobs, other types of jobs. I say, Oh, is that right? The job market is huge.

Speaker #1: However , the production output actually increased over the same period . So the white color in the US is said to be 30 million .

Speaker #1: So, with the introduction of AI, I think this is a segment of laborers that would be most impacted by AI. So, we may see some decrease.

Speaker #1: But as I said , things that happened in the factory workers could happen . The unemployment rate as a result of these things did not actually increased .

Speaker #1: Rather , workers were redistributed to other jobs . Other types of jobs . I say , oh , that's is that right ? So the job market is huge .

Speaker #1: It's not specific to a certain industries . It covers all industries . Therefore , the job market itself is enormous . I don't know what would be the analogies we would use as Japanese .

Junichi Arai: It's not specific to a certain industries. It covers all industries. The job market itself is enormous. I don't know what would be the analogies we would use. As Japanese, maybe we would compare it to Lake Biwa. If you consider a huge lake and a small pond. Just because AI is being introduced, it doesn't mean everyone will lose their job. I don't think that would happen. I don't think that's realistic. Maybe it will be the reality in certain areas. If you look at the entire pool, there may be more people working in other industries, people earning more in other industries. Perhaps those are the results that we can expect. If you consider all these things, in the US, the labor industry or where we operate are becoming more similar to Japan.

Speaker #1: Maybe we would compare it to Lake Biwa , but if you consider huge Lake and a small pond . So just because AI is being introduced doesn't mean everyone will lose their job .

Speaker #1: I don't think that would happen . I don't think that's realistic . Maybe it will be the reality in certain certain areas . But if you look at the entire pool , there may be more people working in other industries .

Speaker #1: People earning more in other industries . Perhaps those are the results that we can expect . So if you consider all these things .

Speaker #1: In the US , the labor industry or where we operate . Are becoming more similar to Japan . If you look at what is in high demand in Japan , where where business clients are paying to hire talent , if you look at the Japanese market , I think we should reference that .

Junichi Arai: If you look at what is in high demand in Japan, where business clients are paying to hire talent. If you look at the Japanese market, I think we should reference that and consider them for what we are trying to do in the US market going forward. With AI, I don't think there should be any immediate impact, but rather gradually things will start to change with AI. Let's say unemployment rate becoming 10%. If that were to happen, that's an extraordinary thing to happen. That's totally an extraordinary thing, and I don't think that will happen. At least that's what we are saying internally. We are not trying to make any excuse here, but let's say the unemployment rate becomes 10%, and that is something beyond our control.

Speaker #1: And consider them for what we are trying to do in the US markets . Going forward . So with AI , I don't think there should be any immediate impact , but rather gradually things will start to change with AI .

Speaker #1: So, let’s say the unemployment rate becomes 10%. If that were to happen, that’s an extraordinary thing to happen. That’s totally an extraordinary thing.

Speaker #1: And I don't think that will happen. At least that's what we are saying internally. We are not trying to make any excuses here, but let's say the unemployment rate becomes 10%, and that is something beyond our control.

Speaker #1: That's not something we can address . It's for the government , for the state to address . Of course , having said that , we want to to help with no inflow of immigrants , with the AI and so on .

Junichi Arai: That's not something we can address. It's for the government, for the state to address. Of course, having said that, we want to help with no inflow of immigrants, with the AI and so on. Of course there are various factors, they are localized, and you ask us questions about Recruit's business being affected by these different pieces. I fully understand what you are saying, but we need to look at the entire pie, the number of jobs, the number of industries that exist. I become skeptical with just these factors. Would they bring a super huge impact on our business? It's like reducing the water in Lake Biwa by 10% or changing the color of the lake. What would it take?

Speaker #1: Of course, there are various factors, but they are localized. You ask us questions about how recruits' business is being affected by these different pieces.

Speaker #1: I fully understand what you are saying, but we need to look at the entire pie: the number of jobs, the number of industries that exist.

Speaker #1: Then I become skeptical with just these factors. Would they bring a super huge impact on our business? It's like reducing the water in Lake Biwa by 10% or changing the color of the lake.

Speaker #1: What would it take ? I think that's the kind of discussion that that you are raising here . So there may be people who say that the business is quite challenging .

Junichi Arai: I think that's the kind of discussion that you are raising here. There may be people who say that the business is quite challenging. It may be difficult. I fully respect their opinions, but I don't fully agree. I don't think that's the extent of the impact that we should expect. Going back to the question from earlier, should we expect a V-shaped recovery? No. Even without such a V-shaped recovery, through efforts, I think we can go on. We want to go on. That's what I feel. Perhaps mobility will increase. The type of talent business clients want to hire may change. They need to change. People want to work where they are needed, and I think that's the happiest situation for any workers.

Speaker #1: It may be difficult . I fully respect there opinions , but I don't fully agree . I don't think that's the extent of the impact that we that we should expect .

Speaker #1: Going back to the question from earlier , should we expect a V-shaped recovery ? No . And even without such a recovery , through efforts , I think we can we can go on .

Speaker #1: We want to go on. That's what I feel. Perhaps mobility will increase, and the type of talent businesses and clients want to hire may change.

Speaker #1: They need to change . People want to work where they are needed . And I think that's the happiest situation for any workers .

Speaker #1: And of course, there are business clients who are looking to hire such people. I'm sure there are clients out there who are willing to hire individuals who want to work with them, and we want to help support these job seekers and business clients.

Junichi Arai: Of course, business clients who are looking to hire such people, I'm sure there are clients out there who are willing to hire people who want to work with them. We want to help support these job seekers and business clients. What are the services that we need to offer to reach and realize those goals. You go to a restaurant in the US, you go some places, they're experiencing shortage of worker. Labor shortage is a serious issue. I see. Whenever I have this, I talk with you, Yamamura-san, we end up having conversations like this very casual chat. Mizuho, are we already over the time? It's already been 1 hour. I see more hands up, maybe we can stay on until quarter two. We'll go on to the next question.

Speaker #1: And what are the services that we need to offer to reach and realize those goals ? You go to a restaurant in the US , you go some places and there are experiencing shortage of worker labor shortage is a serious issue .

Junko Yamamura: I see.

Speaker #1: I see . Whenever I have this , I talk with you . Yamamura San . We end up having conversations like this very casual chat .

Junichi Arai: Whenever I have this, I talk with you, Yamamura-san, we end up having conversations like this very casual chat. Mizuho, are we already over the time? It's already been 1 hour. I see more hands up, maybe we can stay on until quarter two. We'll go on to the next question.

Speaker #1: Mizuho , are we already ? Over the time ? It's already been one hour , but I see more . Hands up . So maybe we can stay on until quarter two .

Speaker #1: So we'll go on to the next question . Morgan Stanley Securities , please . Suzaka speaking . Can you hear me ? Yes .

Junichi Arai: Morgan Stanley Securities, Tsusaka San, please.

Mizuho Shen: Morgan Stanley Securities, Tsusaka San, please.

Mizuho Shen: Can you hear me? Yes. Thank you. Hello. I have a simple or maybe a complex question. Arai-san, you talked about Deco effect, Deco impact in one word. For Indeed as an organization, Deco's leadership is now incorporated, and that resulted in a better growth than expected, better pricing increase than expected. What is happening? Did the organization change or product change? I think all these factors are intertwined, but in what way did things happen? If you could elaborate, please. Well, I don't want to praise him so much so that he blushes, but... I did not hear directly from him, but when I talk with Indeed headquarter people or the key office people, I understand that he is quick. When we work with Deco, it's quick.

Tetsuro Tsusaka: Can you hear me?

Junichi Arai: Yes.

Tetsuro Tsusaka: Thank you. Hello. I have a simple or maybe a complex question. Arai-san, you talked about Deco effect, Deco impact in one word. For Indeed as an organization, Deco's leadership is now incorporated, and that resulted in a better growth than expected, better pricing increase than expected. What is happening? Did the organization change or product change? I think all these factors are intertwined, but in what way did things happen? If you could elaborate, please.

Speaker #1: Thank you . Hello . So I have a simple or maybe a complex question . So , Allison , you talked about Deco effect Deco impact in one word .

Speaker #1: So for Indeed, as an organization, Nikko's leadership is now incorporated. And that resulted in better growth than expected and a better pricing increase than expected.

Speaker #1: So what is happening ? So did the organization change or product change ? I think all these factors are intertwined . But what in what way did things happen ?

Speaker #1: If you could elaborate , please ? Well , I don't want to praise him so much so that he blushes , but and I did not hear directly from him .

Junichi Arai: Well, I don't want to praise him so much so that he blushes, but... I did not hear directly from him, but when I talk with Indeed headquarter people or the key office people, I understand that he is quick. When we work with Deco, it's quick.

Speaker #1: But when I talk with indeed headquarter people or the key office people .

Speaker #2: I understand that he is quick when we work with Nikko. It's quick. He knows what we want and when.

Mizuho Shen: He knows what we want, and when things need to be decided, he decides right away. What we want to do is clearly communicated, so it's easy to work with him, people say. From the perspective of people working with him, I don't know, for lack of a better word, it is rewarding. It motivates you, gives you a sense of fulfillment. That's what I hear from people, especially the people in products and sales. They do very detailed meetings with Idekoba. If we make this kind of product, this is not good. This is what we want. Sales, please do this. Very detailed requests come, and concrete answers come for questions and consultations. For sales increase and cost reduction, we can work on both sides in very concrete terms. The non-value-added products will not be focused.

Speaker #1: Things need to be decided . He decides right away . So what we want to do is clearly communicated . So it's easy to work with him .

Speaker #1: People say . So from the perspective of people working with him , I don't know , for lack of better word , it is rewarding .

Speaker #1: It motivates you , gives you a sense of fulfillment . That's what I hear from people , especially the people in products and sales .

Speaker #1: They do very detailed meetings with Deco . So if we make this kind of product , this is not good . This is what we want .

Speaker #1: Sales . Please do this very detailed requests come and concrete answers come for questions and consultations . So for sales increase and cost reduction we can work on both sides in a very concrete terms .

Speaker #1: So we will not focus on non-value-added products; our focus is on where we can achieve good results. Understand? So this is the Recruit way.

Mizuho Shen: Focus is on where there are good results. Understand. This is the Recruit way. I understand. Thank you very much. Of course, job seekers are very important. How we offer value to job seekers comes first and foremost. That is the priority. At the same time, how we can be appreciated by our clients so that they use more money. Idekoba is the businessman. How we can bring smile on clients' faces, that is all he thinks about every day in and day out. Thank you very much. Please ask him directly too.

Tetsuro Tsusaka: Understand. This is the Recruit way. I understand. Thank you very much.

Speaker #1: I understand . Thank you very much . Of course job seekers are very important . So how we offer value to job seekers comes first and foremost .

Junichi Arai: Of course, job seekers are very important. How we offer value to job seekers comes first and foremost. That is the priority. At the same time, how we can be appreciated by our clients so that they use more money. Idekoba is the businessman. How we can bring smile on clients' faces, that is all he thinks about every day in and day out. Thank you very much. Please ask him directly too.

Speaker #1: That is the priority . But at the same time , how we can be appreciated by our clients . So that they use more money .

Speaker #1: This is the businessman. So, how can we bring a smile to clients' faces? That is all he thinks about every day, day in and day out.

Speaker #1: Thank you very much . Now please ask him directly to if there's an opportunity , I will . Thank you . Next there will be the last question now , San , from Bob .

Junichi Arai: If there's an opportunity, I will. Thank you. Next, that will be the last question. Nagaoka San from BofA, please. Nagao San. I don't know if it's a question or comment. The ARPJ that you've disclosed, I have a question around that. Towards the second half, the ARPJ is going to increase. Looking at the formula, this is price-driven. If it is a price-driven increase, then that's good. Algorithm has been improved, product unit price has increased, and the profitability is enhanced. If the number of job postings is decreasing or free advertising, free jobs are increasing, and still we should see that this would contribute to the increase in the ARPDAU as a residual effect. How should we interpret this for the second half?

Tetsuro Tsusaka: If there's an opportunity, I will. Thank you.

Mizuho Shen: Next, that will be the last question. Nagaoka San from BofA, please. Nagao San.

Speaker #1: Please . Nakagawa San , I don't know if it's a question or comment . The RJ that you've disclosed . I have a question around that .

Yoshitaka Nagao: I don't know if it's a question or comment. The ARPJ that you've disclosed, I have a question around that. Towards the second half, the ARPJ is going to increase. Looking at the formula, this is price-driven. If it is a price-driven increase, then that's good. Algorithm has been improved, product unit price has increased, and the profitability is enhanced. If the number of job postings is decreasing or free advertising, free jobs are increasing, and still we should see that this would contribute to the increase in the ARPDAU as a residual effect. How should we interpret this for the second half? Arai-san, are you intending for this to be price-driven increase?

Speaker #1: Towards the second half . The RJ is going to increase . But looking at the formula , this is price driven . If it is a price driven increase , then that's that's good .

Speaker #1: I'll go. The algorithm has been improved. The product unit price is increased, and the profitability is enhanced. However, if the number of job postings is decreasing or free advertising for jobs is increasing, we should still see that this would contribute to the increase in the RJ as a residual effect.

Speaker #1: So how should we interpret this for the second half ? Are you intending for this to be price driven ? Increase ? So far ?

Junichi Arai: Arai-san, are you intending for this to be price-driven increase? So far we've had the Indeed model. If you continue to have a very strong impression of the past Indeed model, then if you look at the results 6 months from now or 1 year from now, you may think that the things are quite different from the expectations. I talked about subscription earlier for Indeed. This is a fairly new thing. We need to consider everything, including all these new things. They're divided by the number of jobs. We should increase. We should see an increase in the ARPDAU. As I said before, jobs that were not monetized in the past, that will bring in revenue. The paid jobs in the past should enjoy higher efficiency.

Junichi Arai: So far we've had the Indeed model. If you continue to have a very strong impression of the past Indeed model, then if you look at the results 6 months from now or 1 year from now, you may think that the things are quite different from the expectations. I talked about subscription earlier for Indeed. This is a fairly new thing. We need to consider everything, including all these new things. They're divided by the number of jobs. We should increase. We should see an increase in the ARPDAU. As I said before, jobs that were not monetized in the past, that will bring in revenue. The paid jobs in the past should enjoy higher efficiency.

Speaker #1: We've had the indeed model . And if you continue to have a very strong impression of the past , indeed model , then if you look at the results six months from now or one year from now , you may think that the things are quite different from the expectations .

Speaker #1: I talked about subscription , subscription , audio for . Indeed , this is a fairly new thing . So we need to consider everything , including all these new things .

Speaker #1: Divided by the number of jobs . We should increase . We should see an increase in the RJ . So as I said before , a job so that were not monetized in the past , that will bring in revenue and the paid jobs in the past should enjoy higher efficiency .

Speaker #1: If clients are looking to reach better , more efficiently than the clients can pay more . So the changes of how the jobs change , irrespective of that , if we have more clients who value and are willing to pay for these things , then the object should increase .

Junichi Arai: If clients are looking to reach better, more efficiently, then the clients can pay more. That changes. How the jobs change, irrespective of that, if we have more clients who value and are willing to pay for these things, then the ARPDAU should increase. Just because the number of jobs decrease doesn't mean the growth rate increase is guaranteed. That is not the case. As I said before, this KPI is a quite challenging, tough KPI for us. The reason I say this is because we look at the revenue for all jobs. It includes jobs that we are not currently involved in at all. It is included in the denominator. It requires us to consider how we can start to monetize these jobs. That KPI includes all these things.

Speaker #1: Just because the number of jobs are decrease doesn't mean the growth rate increase is guaranteed . That is not the case . So as I said before , this KPI is a quite challenging , tough KPI for us .

Speaker #1: The reason I say this is because we look at revenue for all jobs . So it includes jobs that we are not currently involved in at all .

Speaker #1: It is included in the denominator . So it requires us to consider how we can start to monetize these jobs so that KPI includes all these things .

Speaker #1: So that's why I say this is a very tough KPI . AI tools like screening . Clients , clients that are quite famous , they don't need to advertise .

Junichi Arai: That's why I say this is a very tough KPI. AI tools like screening. Clients that are quite famous, they don't need to advertise. They already get enough applications. They have too many candidates applying. Those are clients that did not pay for our services. Going forward, this is something we can offer and sell to these clients. These are clients that we were not able to do business with in the past. If we start to acquire these clients, going back to Nagao-san's rather doubtful question, by doing things like this, we can see an increase in the ARPDAU. Perhaps I did not answer that question. I get it.

Speaker #1: They already get enough applications . They have too many candidates applying . So those are clients that did not pay for our services .

Speaker #1: But going forward , this is something we can offer and sell to these clients . These are clients that we were not able to do business with in the past .

Speaker #1: But if we start to acquire these clients , then going back to . Nagato san's rather doubtful question by doing things like this , we can increase .

Speaker #1: We can see an increase in the RJ . Perhaps I did not answer that question . No , I get it . With the economic downturn , the number of job postings decrease .

Yoshitaka Nagao: I get it. With the economic downturn, the number of job postings decrease. There are still clients who are struggling to hire, clients who are determined to hire people. They will use the company's services and the paid advertisements or ARPDAU. I don't know if it's going to be through subscription. In any case, the ARPDAU will increase even in the economic downturn. The more clients are paying for your products and services, so you can see a higher ARPDAU. That's certainly a realistic scenario. As a KPI, I understand that this is a very difficult, a challenging KPI that you've increased the hurdle rate yourself. You're trying to take on this challenge yourself. I certainly see your determination, your resolve. It's not that I've been doubtful. Sorry.

Junichi Arai: With the economic downturn, the number of job postings decrease. There are still clients who are struggling to hire, clients who are determined to hire people. They will use the company's services and the paid advertisements or ARPDAU. I don't know if it's going to be through subscription. In any case, the ARPDAU will increase even in the economic downturn. The more clients are paying for your products and services, so you can see a higher ARPDAU. That's certainly a realistic scenario. As a KPI, I understand that this is a very difficult, a challenging KPI that you've increased the hurdle rate yourself. You're trying to take on this challenge yourself. I certainly see your determination, your resolve. It's not that I've been doubtful. Sorry.

Speaker #1: But there are still clients who are struggling to hire clients who are determined to hire people . They will use the company's services and the paid advertisements or RJ , I don't know if it's going to be through subscription .

Speaker #1: In any case , the RJ will increase even in the economic downturn . The more clients paying for your products and services . You can see a higher RJ .

Speaker #1: That certainly a realistic scenario . So as a KPI , I understand that this is a very difficult , challenging KPI that you've increased the hurdle rate yourselves , your trying to take take on this challenge yourself .

Speaker #1: I certainly see your determination , your resolve . So it's not that I've been doubtful . Sorry , because it's you , Nagato San .

Junichi Arai: Because it's you, Nagao-san, I was half joking when I said your question was doubting our intentions. Going after new clients as part of our recent initiative. We are starting to see positive results. That's what we are discussing with the business side. Deco also wants to maintain this momentum and do even more. Well, since Deco is saying that we can do this, I think we can. At least that's what I choose to believe. I see. Thank you very much. Thank you very much for staying for a long time. With that, we will close the Recruit Holdings FY2025 Q2 earnings call. Thank you very much for late in the evening.

Speaker #1: I was half joking when I said you're a question . I was doubting our intentions , but going after new clients as part of our recent initiative .

Speaker #1: So, we are starting to see positive results. That's what we are discussing with the business side. Deco also wants to maintain this momentum and do even more.

Speaker #1: Just because , well , since the Deco is saying that we can do this , I think we can . At least that's what I choose to believe .

Speaker #1: I see . Thank you very much . Thank you very much for staying for a long time . So with that , we will close the recruit holdings FY 2025 Q2 Earnings Call .

Yoshitaka Nagao: I see. Thank you very much.

Mizuho Shen: Thank you very much for staying for a long time. With that, we will close the Recruit Holdings FY2025 Q2 earnings call. Thank you very much for late in the evening.

Q2 2025 Recruit Holdings Co Ltd Earnings Call

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