Q1 2026 Recruit Holdings Co Ltd Earnings Call

August 7, 2026

Speaker #1: This call is a simultaneous translation of the original call in Japanese, and the translation is provided for the convenience of investors only.

Junichi Arai: 2026 Q1 earnings call. This call is a simultaneous translation of the original call in Japanese, and translation is provided for the convenience of investors only. Earlier at 3:30 PM, we disclosed the earnings release, earnings summary, and the presentation slides of this results call on our IR page. The video and transcript of this results call will be posted on our IR website after the session. As announced on our website two days ago, Envolys, an independent research firm, will publish a flash report on this earnings call. Please refer to it as well. Today's presenters are Hisayuki Idekoba, Representative Director, President, and CEO, and Junichi Arai, Executive Vice President and Chief Financial Officer. In the first 30 minutes, Deko and Jun will provide a presentation, followed by a Q&A session. Now I'll turn the call over to Deko. Hello, I am Deko of Recruit Holdings.

Operator: 2026 Q1 Earnings Call. This call is a simultaneous translation of the original call in Japanese, and translation is provided for the convenience of investors only. Earlier at 3:30PM, we disclosed the earnings release, earnings summary, and the presentation slides of this results call on our IR page. The video and transcript of this results call will be posted on our IR website after the session.

Speaker #1: Earlier, at 3:30 PM, we disclosed the earnings release, earnings summary, and the presentation slides of this results call on our IR page. The video and transcript of this results call will be posted on our IR website after the session.

Speaker #1: As announced on our website two days ago, Envelis, an independent research firm, will publish a flash report on this earnings call. Please refer to it as well.

Operator: As announced on our website two days ago, Envalith, an independent research firm, will publish a flash report on this earnings call. Please refer to it as well. Today's presenters are Hisayuki Idekoba, Representative Director, President, and CEO, and Junichi Arai, Executive Vice President and Chief Financial Officer. In the first 30 minutes, Deko and Jun will provide a presentation, followed by a Q&A session. Now I'll turn the call over to Deko.

Speaker #1: Today's presenters are Kisayuki Idekowa, Representative Director, President, and CEO, and Junichi Arai, Executive Vice President and Chief Financial Officer. In the first 30 minutes, Deko and Jun will provide a presentation, followed by a Q&A session.

Speaker #1: Now, I'll turn the call over to Deko. Hello, I am Deko of Recruit Holdings. Today, I am pleased to share our Q1 FY2026 results and to raise our full-year consolidated guidance.

Hisayuki Idekoba: Hello, I am Deko of Recruit Holdings. Today, I am pleased to share our Q1 FY 2026 results and to raise our full-year consolidated guidance. HR technology delivered a strong Q1 performance, with US revenue increasing 30% year over year. Based on this momentum, as of today, we are raising our full-year HR technology revenue outlook to up 18.7% year over year globally and up 25.1% year over year for the US.

Hisayuki Idekoba: Today, I am pleased to share our Q1 FY 2026 results and to raise our full-year consolidated guidance. HR technology delivered a strong Q1 performance, with US revenue increasing 30% year over year. Based on this momentum, as of today, we are raising our full-year HR technology revenue outlook to up 18.7% year over year globally and up 25.1% year over year for the US. As you all know, truly, AI is evolving at such an incredible pace almost every single week. Many of you are probably noticing how AI agents are rapidly taking off as automation tools across so many industries. We ourselves genuinely feel it, that we've finally entered a whole new phase where our AI automation tools are boosting productivity for HR teams worldwide, teams that have historically been bogged down by time-consuming manual work.

Speaker #1: HR Technology delivered a strong Q1 performance, with U.S. revenue increasing 30% year-over-year. Based on this momentum, as of today, we are raising our full-year HR Technology revenue outlook to up 18.7% year-over-year globally, and up 25.1% year-over-year for the U.S.

Speaker #1: As you all know, truly, AI is evolving at such an incredible pace—almost every single week. And many of you are probably noticing how AI agents are rapidly taking off as automation tools across so many industries.

Hisayuki Idekoba: As you all know, truly, AI is evolving at such an incredible pace almost every single week. Many of you are probably noticing how AI agents are rapidly taking off as automation tools across so many industries. We ourselves genuinely feel it, that we've finally entered a whole new phase where our AI automation tools are boosting productivity for HR teams worldwide, teams that have historically been bogged down by time-consuming manual work.

Speaker #1: We ourselves genuinely feel it, that we've finally entered a whole new phase where our AI automation tools are boosting productivity for HR teams worldwide—teams that have historically been bogged down by time-consuming manual work.

Hisayuki Idekoba: First, let me walk you through why our Q1 performance came in stronger than expected, even in a market environment where US hiring demand remains down year over year. Continuing the previous trends, our revenue from small and medium businesses was very strong in Q1. For lean SMBs, having an open role stay unfilled for too long can literally be a matter of life or death for their businesses. By adopting our AI products, their time-consuming manual tasks get automated, dramatically shortening their time to hire. In this environment, many of these clients prioritize hiring speed over cost, and as a result, growth in both the number of SMB clients and spend per client drove our overall top-line expansion. On top of that, what we are seeing now is revenue growth from large enterprise clients becoming more pronounced. Enterprise clients typically take longer to onboard.

Speaker #1: First, let me walk you through why our Q1 performance came in stronger than expected, even in a market environment where U.S. hiring demand remains down year-over-year.

Speaker #1: Continuing the previous trends, our revenue from small and medium businesses was very strong in Q1, particularly for lean SMBs. Having an open role stay unfilled for too long can literally be a matter of life or death for their businesses.

Hisayuki Idekoba: By adopting our AI products, their time-consuming manual tasks get automated, dramatically shortening their time to hire. In this environment, many of these clients prioritize hiring speed over cost, and as a result, growth in both the number of SMB clients and spend per client drove our overall top-line expansion. On top of that, what we are seeing now is revenue growth from large enterprise clients becoming more pronounced. Enterprise clients typically take longer to onboard.

Speaker #1: By adopting our AI products, their time-consuming manual tasks get automated, dramatically shortening their time to hire. In this environment, many of these clients prioritize hiring speed over cost.

Speaker #1: And as a result, growth in both the number of SMB clients and spend per client drove our overall top-line expansion. On top of that, what we are seeing now is that revenue growth from large enterprise clients is becoming more pronounced.

Speaker #1: Enterprise clients typically take longer to onboard. Decision-making for budget adjustments takes time, and legal reviews, especially when it comes to AI products, can be quite time-consuming.

Hisayuki Idekoba: Decision-making for budget adjustments takes time, and legal reviews, especially when it comes to AI products, can be quite time-consuming. Even so, in Q1, many larger customers were willing to trial our AI products. For instance, one healthcare client tested how much AI automation could boost their recruiters' productivity, and they concluded that our AI products helped them significantly reduce time spent screening candidates, delivering output equivalent to several full-time recruiters. Hearing feedback like that is very rewarding. The reality is that many large enterprises employ dozens, sometimes even hundreds, of recruiters, incurring massive costs from manual processes. By enabling clients to dramatically boost their productivity by adopting our AI products, we believe we have a major source of growth ahead of us.

Speaker #1: Even so, in Q1, many larger customers were willing to trial our AI products. For instance, one healthcare client tested how much AI automation could boost their recruiters' productivity, and they concluded that our AI products helped them significantly reduce time spent screening candidates, delivering output equivalent to several full-time recruiters.

Speaker #1: Hearing feedback like that is very rewarding. The reality is that many large enterprises employ dozens, sometimes even hundreds, of recruiters, incurring massive costs from manual processes.

Hisayuki Idekoba: Hearing feedback like that is very rewarding. The reality is that many large enterprises employ dozens, sometimes even hundreds, of recruiters, incurring massive costs from manual processes. By enabling clients to dramatically boost their productivity by adopting our AI products, we believe we have a major source of growth ahead of us.

Speaker #1: By enabling clients to dramatically boost their productivity by adopting our AI products, we believe we have a major source of growth ahead of us.

Speaker #1: So, when you look at our recent revenue growth, it's really the result of two key drivers working in tandem: higher spend per client, driven by the added value our AI delivers, and a growing number of clients using our products.

Hisayuki Idekoba: When you look at our recent revenue growth, it is really the result of two key drivers working in tandem: higher spend per client driven by the added value our AI delivers and a growing number of clients using our products. Using AI automation tools to boost the productivity of HR teams around the world burdened with manual work isn't just a win for employers. It is a huge plus for job seekers, too. By automating processes that previously required time-consuming manual work, job seekers are now experiencing firsthand that using Indeed means faster responses from employers, earlier access to first interviews, and ultimately finding a job sooner. That is precisely why more people than ever are engaging our platform. At the end of the day, getting people hired faster through AI automation creates a win for everyone, and we believe that's what matters most.

Speaker #1: Using AI automation tools to boost the productivity of HR teams around the world burdened with manual work isn't just a win for employers. It is a huge plus for job seekers, too.

Speaker #1: By automating processes that previously required time-consuming manual work, job seekers are now experiencing firsthand that using Indeed means faster responses from employers, earlier access to first interviews, and ultimately finding a job sooner.

Hisayuki Idekoba: By automating processes that previously required time-consuming manual work, job seekers are now experiencing firsthand that using Indeed means faster responses from employers, earlier access to first interviews, and ultimately finding a job sooner. That is precisely why more people than ever are engaging our platform. At the end of the day, getting people hired faster through AI automation creates a win for everyone, and we believe that's what matters most.

Speaker #1: And that is precisely why more people than ever are engaging with our platform. At the end of the day, getting people hired faster through AI automation creates a win for everyone, and we believe that's what matters most.

Speaker #1: At the same time, it is also true that average spend per client has risen rapidly over a short period. To protect our sustainable long-term growth, we will continue to monitor client satisfaction very closely.

Hisayuki Idekoba: At the same time, it is also true that average spend per client has risen rapidly over a short period. To protect our sustainable long-term growth, we will continue to monitor client satisfaction very closely. The incredible pace of AI evolution is amazing, but rapid change naturally brings wider implications. As such, we intend to carefully gauge the pace at which our customers and society are adapting and navigate this with both caution and flexibility. Our ability to leverage AI to raise customer productivity is advancing faster than anticipated, which is welcoming, but to be honest, makes precise forecasting generally challenging. Today's updated guidance represents our estimate based on what we can see as of today. As the picture becomes clearer over time, we will share our latest progress with you every quarter. That concludes my remarks for today.

Speaker #1: The incredible pace of AI evolution is amazing. But rapid change naturally brings wider implications. As such, we intend to carefully gauge the pace at which our customers and society are adapting, and navigate this with both caution and flexibility.

Speaker #1: Our ability to leverage AI to raise customer productivity is advancing faster than anticipated, which is welcome but, to be honest, makes precise forecasting genuinely challenging.

Hisayuki Idekoba: Our ability to leverage AI to raise customer productivity is advancing faster than anticipated, which is welcoming, but to be honest, makes precise forecasting generally challenging. Today's updated guidance represents our estimate based on what we can see as of today. As the picture becomes clearer over time, we will share our latest progress with you every quarter. That concludes my remarks for today. I will now turn it over to our CFO, Arai, to walk you through the detailed numbers. Arai-san, over to you.

Speaker #1: Today's updated guidance represents our estimate based on what we can see as of today. As the picture becomes clearer over time, we will share our latest progress with you every quarter.

Speaker #1: That concludes my remarks for today. I will now turn it over to our CFO, Junichi Arai, to walk you through the detailed numbers Arai sent over to you.

Hisayuki Idekoba: I will now turn it over to our CFO, Arai, to walk you through the detailed numbers. Arai-san, over to you. This is Arai speaking. Today, I will be using the slides to focus on our upward revision to the FY 2026 full-year consolidated guidance. First, our consolidated results for Q1 FY 2026. Revenue, EBITDA+S, and basic EPS each substantially exceeded our initial expectations and reached record highs. Revenue increased 18.9% year over year to JPY 1.04 trillion. EBITDA+S increased 56.5% year over year to JPY 292.8 billion, and EBITDA+S margin was 28.0%. Basic EPS was JPY 145.48, up 73.2% year over year. As of the end of July, we have repurchased 12.5 million shares for JPY 120 billion under the ongoing JPY 350.0 billion share repurchase program, representing 34.3% of the total program. Gross cash and cash equivalents were JPY 908.5 billion at the end of June.

Speaker #1: This is Arai speaking. Today, I will be using the slides to focus on our upward revision to the FY2026 four-year consolidated guidance. First, our consolidated results for Q1 FY2026.

Junichi Arai: This is Arai speaking. Today, I will be using the slides to focus on our upward revision to the FY 2026 full-year consolidated guidance. First, our consolidated results for Q1 FY 2026. Revenue, EBITDA+S, and basic EPS each substantially exceeded our initial expectations and reached record highs. Revenue increased 18.9% year over year to JPY 1.04 trillion.

Speaker #1: Revenue, EBITDA plus S, and basic EPS each substantially exceeded our initial expectations and reached record highs. Revenue increased 18.9% year over year to ¥1.04 trillion.

Speaker #1: EBITDA plus S increased 56.5% year over year to ¥292.8 billion, and the EBITDA plus S margin was 28.0%. Basic EPS was ¥145.48, up 73.2% year over year.

Junichi Arai: EBITDA+S increased 56.5% year over year to JPY 292.8 billion, and EBITDA+S margin was 28.0%. Basic EPS was JPY 145.48, up 73.2% year over year. As of the end of July, we have repurchased 12.5 million shares for JPY 120 billion under the ongoing JPY 350.0 billion share repurchase program, representing 34.3% of the total program. Gross cash and cash equivalents were JPY 908.5 billion at the end of June.

Speaker #1: As of the end of July, we had repurchased 12.5 million shares for ¥120 billion under the ongoing ¥350.0 billion share repurchase program, representing 34.3% of the total program.

Speaker #1: Gross cash and cash equivalents were ¥908.5 billion at the end of June. Based on these Q1 results and the latest outlook for each segment, we have revised upward the FY2026 four-year consolidated guidance disclosed in May.

Hisayuki Idekoba: Based on these Q1 results and the latest outlook for each segment, we have revised upward the FY 2026 full-year consolidated guidance disclosed in May. This revision is mainly driven by HR technology, where Q1 results significantly exceeded our initial expectations, and we expect this trend to continue from Q2 onward. We assume an exchange rate of JPY 159.0 per US dollar for FY 2026. We now expect consolidated revenue to increase 14.4% year over year to JPY 4.23 trillion, compared with our initial guidance of JPY 4.03 trillion. We expect EBITDA+S to increase 39.1% year over year to JPY 1.105 trillion, surpassing the JPY 1 trillion mark for the first time, compared with our initial guidance of JPY 949 billion. We have revised the EBITDA+S margin from 23.5% to 26.1%. We have also revised the basic EPS upward from JPY 447 to JPY 543, an increase of 55.2% year over year.

Junichi Arai: Based on these Q1 results and the latest outlook for each segment, we have revised upward the FY 2026 full-year consolidated guidance disclosed in May. This revision is mainly driven by HR technology, where Q1 results significantly exceeded our initial expectations, and we expect this trend to continue from Q2 onward. We assume an exchange rate of JPY 159.0 per US dollar for FY 2026.

Speaker #1: This revision is mainly driven by HR technology, where Q1 results significantly exceeded our initial expectations, and we expect this trend to continue from Q2 onward.

Speaker #1: We assume an exchange rate of 159.0 yen per US dollar for FY2026. We now expect consolidated revenue to increase 14.4% year over year to ¥4.23 trillion, compared with our initial guidance of ¥4.03 trillion.

Junichi Arai: We now expect consolidated revenue to increase 14.4% year over year to JPY 4.23 trillion, compared with our initial guidance of JPY 4.03 trillion. We expect EBITDA+S to increase 39.1% year over year to JPY 1.105 trillion, surpassing the JPY 1 trillion mark for the first time, compared with our initial guidance of JPY 949 billion. We have revised the EBITDA+S margin from 23.5% to 26.1%. We have also revised the basic EPS upward from JPY 447 to JPY 543, an increase of 55.2% year over year.

Speaker #1: We expect EBITDA plus S to increase 39.1% year over year to ¥1.105 trillion, surpassing the ¥1 trillion mark for the first time, compared with our initial guidance of ¥949 billion.

Speaker #1: We have revised the EBITDA plus S margin from 23.5% to 26.1%. We have also revised the basic EPS upward from 447 yen to 543 yen, an increase of 55.2% year over year.

Speaker #1: This reflects the upward revision to net income from our initial guidance of ¥623.0 billion to ¥755.0 billion, an increase of 51.9% year over year, as well as the number of shares repurchased from April through the end of July 2026.

Hisayuki Idekoba: This reflects the upward revision to net income from our initial guidance of JPY 623.0 billion to JPY 755.0 billion, an increase of 51.9% year-over-year, as well as the number of shares repurchased from April through the end of July 2026. Staffing in Japan was subject to an on-site inspection by the Japan Fair Trade Commission in June 2026 in connection with suspected violations of the Antimonopoly Act. As we are currently cooperating with the inspection, it is difficult to reasonably estimate the financial impact at this time. Accordingly, this guidance does not reflect any such impact. Of our three business segments, HR Technology continues to drive our growth and remains the core of our consolidated financial performance. The segment will account for approximately 43% of revenue and approximately 75% of EBITDA+S. I will now discuss the full-year outlook for HR Technology.

Junichi Arai: This reflects the upward revision to net income from our initial guidance of JPY 623.0 billion to JPY 755.0 billion, an increase of 51.9% year-over-year, as well as the number of shares repurchased from April through the end of July 2026. Staffing in Japan was subject to an on-site inspection by the Japan Fair Trade Commission in June 2026 in connection with suspected violations of the Antimonopoly Act.

Speaker #1: Staffing in Japan was subject to an on-site inspection by the Japan Fair Trade Commission in June 2026 in connection with suspected violations of the Anti-Monopoly Act.

Speaker #1: As we are currently cooperating with the inspection, it is difficult to reasonably estimate the financial impact at this time. Accordingly, this guidance does not reflect any such impact.

Junichi Arai: As we are currently cooperating with the inspection, it is difficult to reasonably estimate the financial impact at this time. Accordingly, this guidance does not reflect any such impact. Of our three business segments, HR Technology continues to drive our growth and remains the core of our consolidated financial performance. The segment will account for approximately 43% of revenue and approximately 75% of EBITDA+S. I will now discuss the full-year outlook for HR Technology.

Speaker #1: Of our three business segments, HR Technology continues to drive our growth and remains the core of our consolidated financial performance. The segment will account for approximately 43% of revenue, and approximately 75% of EBITDA plus S.

Speaker #1: I will now discuss the four-year outlook for HR technology. We now expect segment revenue, on a U.S. dollar basis, to increase 18.7% year over year to $11.4 billion, above our initial outlook of 11% growth.

Hisayuki Idekoba: We now expect segment revenue on a US dollar basis to increase 18.7% year-over-year to $11.4 billion, above our initial outlook of 11% growth. On a Japanese yen basis, we have revised our outlook from growth of 13.4% year-over-year to growth of 24.9% year-over-year, or JPY 1.82 trillion. By continuing to focus on revenue growth and disciplined business management, we have revised the segment EBITDA+S margin outlook from 41.0% to 45.8%. Looking at the segment's revenue outlook by region, the $615 million increase in the US was a key factor behind the substantial upward revisions to both the segment outlook and consolidated guidance for the US, which is expected to account for 58% of segment revenue. We have upwardly revised our year-over-year revenue growth outlook from 13.6% to 25.1%, reaching $6.6 billion.

Junichi Arai: We now expect segment revenue on a US dollar basis to increase 18.7% year-over-year to $11.4 billion, above our initial outlook of 11% growth. On a Japanese yen basis, we have revised our outlook from growth of 13.4% year-over-year to growth of 24.9% year-over-year, or JPY 1.82 trillion. By continuing to focus on revenue growth and disciplined business management, we have revised the segment EBITDA+S margin outlook from 41.0% to 45.8%.

Speaker #1: On a Japanese yen basis, we have revised our outlook from growth of 13.4% year over year to growth of 24.9% year over year, or ¥1.82 trillion.

Speaker #1: By continuing to focus on revenue growth and disciplined business management, we have revised the segment EBITDA plus S margin outlook from 41.0% to 45.8%.

Speaker #1: Looking at the segment revenue outlook by region, the $615 million increase in the U.S. was a key factor behind the substantial upward revisions to both the segment outlook and consolidated guidance.

Junichi Arai: Looking at the segment's revenue outlook by region, the $615 million increase in the US was a key factor behind the substantial upward revisions to both the segment outlook and consolidated guidance for the US, which is expected to account for 58% of segment revenue. We have upwardly revised our year-over-year revenue growth outlook from 13.6% to 25.1%, reaching $6.6 billion.

Speaker #1: For the US, which is expected to account for 58% of segment revenue, we have upwardly revised our year-over-year revenue growth outlook from 13.6% to 25.1%, reaching $6.6 billion.

Speaker #1: For Europe and others, we have revised our year over year revenue growth outlook from 17.1% to 23.2%, reaching 2.5 billion US dollars. For Japan, we have revised our initial outlook up by 11.5 billion yen from growth of 2.1% year over year to growth of 5.4% year over year, or 367.0 billion yen.

Hisayuki Idekoba: For Europe and others, we have revised our year-over-year revenue growth outlook from 17.1% to 23.2%, reaching $2.5 billion. For Japan, we have revised our initial outlook up by JPY 11.5 billion, from growth of 2.1% year-over-year to growth of 5.4% year-over-year, or JPY 367.0 billion. On a US dollar basis, we expect revenue to be virtually flat year-over-year at $2.3 billion. I will provide further details later. Now on to Q1 segment results. As stated at the outset, Q1 results substantially exceeded our initial outlook. Revenue on a US dollar basis increased to 20.9% year-over-year to $2.8 billion. On a Japanese yen basis, revenue increased 33.2% year-over-year to JPY 455.4 billion. Segment EBITDA+S margin increased significantly to 47.4%, driven by strong revenue growth and continued discipline in cost management.

Junichi Arai: For Europe and others, we have revised our year-over-year revenue growth outlook from 17.1% to 23.2%, reaching $2.5 billion. For Japan, we have revised our initial outlook up by JPY 11.5 billion, from growth of 2.1% year-over-year to growth of 5.4% year-over-year, or JPY 367.0 billion. On a US dollar basis, we expect revenue to be virtually flat year-over-year at $2.3 billion. I will provide further details later. Now on to Q1 segment results.

Speaker #1: On a U.S. dollar basis, we expect revenue to be virtually flat year over year at $2.3 billion. I will provide further details later.

Speaker #1: Now, on to Q1 segment results. As stated at the outset, Q1 results substantially exceeded our initial outlook. Revenue on a U.S. dollar basis increased 20.9% year over year to $2.8 billion.

Junichi Arai: As stated at the outset, Q1 results substantially exceeded our initial outlook. Revenue on a US dollar basis increased to 20.9% year-over-year to $2.8 billion. On a Japanese yen basis, revenue increased 33.2% year-over-year to JPY 455.4 billion. Segment EBITDA+S margin increased significantly to 47.4%, driven by strong revenue growth and continued discipline in cost management.

Speaker #1: On a Japanese yen basis, revenue increased 33.2% year over year to ¥455.4 billion. Segment EBITDA plus S margin increased significantly to 47.4%, driven by strong revenue growth and continued discipline in cost management.

Speaker #1: Employee benefit expenses, including share-based payment expenses, together with outsourcing expenses—which represent broadly defined personnel expenses—were approximately 37% of revenue, down significantly from approximately 48% in Q1 FY2025.

Hisayuki Idekoba: Employee benefit expenses, including share-based payment expenses, together with outsourcing expenses, which represent broadly defined personnel expenses, were approximately 37% of revenue, down significantly from approximately 48% in Q1 FY 2025. While AI-related compute and infrastructure expenses are growing and reflect our expanded capabilities, they remain a small portion of our cost base and are not yet a material factor in our margin profile. We will continue managing them with a clear focus on return on investment. I will next discuss the results by region, starting with the US, followed by Europe and others, and Japan. Before discussing the US results and outlook, I will again explain the definition of the US OPJ growth rate, which we began disclosing with our Q2 FY 2025 results.

Junichi Arai: Employee benefit expenses, including share-based payment expenses, together with outsourcing expenses, which represent broadly defined personnel expenses, were approximately 37% of revenue, down significantly from approximately 48% in Q1 FY 2025. While AI-related compute and infrastructure expenses are growing and reflect our expanded capabilities, they remain a small portion of our cost base and are not yet a material factor in our margin profile.

Speaker #1: While AI-related compute and infrastructure expenses are growing and reflect our expanded capabilities, they remain a small portion of our cost base and are not yet a material factor in our margin profile.

Speaker #1: We will continue managing them with a clear focus on return on investment. I will next discuss the results by region, starting with the US, followed by Europe and Others, and Japan.

Junichi Arai: We will continue managing them with a clear focus on return on investment. I will next discuss the results by region, starting with the US, followed by Europe and others, and Japan. Before discussing the US results and outlook, I will again explain the definition of the US OPJ growth rate, which we began disclosing with our Q2 FY 2025 results.

Speaker #1: Before discussing the US results and outlook, I will again explain the definition of the US OpJ growth rate, which we began disclosing with our Q2 FY2025 results.

Speaker #1: The US OpJ growth rate is the year-over-year rate of change in average revenue per job posting on Indeed, which we disclose each quarterly earnings announcement to demonstrate how our monetization progress is on track, driven by the expansion of higher-value features and packages, even as business clients’ hiring demand and activity fluctuate due to macroeconomic and other factors.

Hisayuki Idekoba: The US ARPJ growth rate is the year-over-year rate of change in average revenue per job posting on Indeed, which we disclose each quarterly earnings announcement to demonstrate how our monetization progress is on track, driven by the expansion of higher value features and packages, even as business clients' hiring demand and activity fluctuate due to macroeconomic and other factors. US ARPJ as average revenue per job posting on Indeed is calculated by dividing HR technology revenue in the US by the total number of US job postings on Indeed. The numerator, total HR technology US revenue, comprises revenue from Sponsored Jobs, which consists of paid job ads like standard and Premium Sponsored Jobs, as well as other products and services, including Smart Sourcing and Smart Screening, employer branding, and Indeed Flex.

Junichi Arai: The US ARPJ growth rate is the year-over-year rate of change in average revenue per job posting on Indeed, which we disclose each quarterly earnings announcement to demonstrate how our monetization progress is on track, driven by the expansion of higher value features and packages, even as business clients' hiring demand and activity fluctuate due to macroeconomic and other factors.

Speaker #1: US OpJ, as average revenue per job posting on Indeed, is calculated by dividing HR technology revenue in the US by the total number of US job postings on Indeed.

Junichi Arai: US ARPJ as average revenue per job posting on Indeed is calculated by dividing HR technology revenue in the US by the total number of US job postings on Indeed. The numerator, total HR technology US revenue, comprises revenue from Sponsored Jobs, which consists of paid job ads like standard and Premium Sponsored Jobs, as well as other products and services, including Smart Sourcing and Smart Screening, employer branding, and Indeed Flex.

Speaker #1: The numerator, total HR technology US revenue, comprises revenue from sponsored jobs, which consists of paid job ads like standard and premium sponsored jobs, as well as other products and services, including smart sourcing and smart screening, employer branding, and Indeed Flex.

Speaker #1: The denominator, the total number of U.S. job postings, is measured by the Indeed Hiring Lab U.S. Job Postings Index. The Indeed Hiring Lab U.S. Job Postings Index tracks hiring demand in the U.S. labor market and includes hosted jobs.

Hisayuki Idekoba: The denominator, the total number of US job postings, is measured by the Indeed Hiring Lab US Job Postings Index. The Indeed Hiring Lab US Job Postings Index tracks hiring demand in the US labor market and includes hosted jobs, which are jobs employers post directly on Indeed, and index jobs, which are jobs Indeed receives from employers' career sites, applicant tracking systems or ATSs, and other sources across the web. The total number of US job postings includes all job postings on Indeed in the US, whether or not they are job ads. In other words, US ARPJ is the average revenue per job posting on Indeed, not the average unit price per Sponsored Job ad. The Premium Sponsored Jobs is the primary driver of US revenue growth in HR technology in fiscal year 2026.

Junichi Arai: The denominator, the total number of US job postings, is measured by the Indeed Hiring Lab US Job Postings Index. The Indeed Hiring Lab US Job Postings Index tracks hiring demand in the US labor market and includes hosted jobs, which are jobs employers post directly on Indeed, and index jobs, which are jobs Indeed receives from employers' career sites, applicant tracking systems or ATSs, and other sources across the web.

Speaker #1: There are jobs employers post directly on Indeed, and there are indexed jobs, which are jobs Indeed receives from employers' career sites, applicant tracking systems (ATSs), and other sources across the web.

Speaker #1: The total number of US job postings includes all job postings on Indeed in the US, whether or not they are job ads. In other words, US OpJ is the average revenue per job posting on Indeed.

Junichi Arai: The total number of US job postings includes all job postings on Indeed in the US, whether or not they are job ads. In other words, US ARPJ is the average revenue per job posting on Indeed, not the average unit price per Sponsored Job ad. The Premium Sponsored Jobs is the primary driver of US revenue growth in HR technology in fiscal year 2026.

Speaker #1: Not the average unit price per sponsored job ad.

Speaker #2: The premium sponsored jobs is the primary driver of U.S. revenue growth in HR Technology in fiscal year 2026. This slide shows the features currently included in the premium package that support employers throughout the hiring process.

Hisayuki Idekoba: This slide shows the features currently included in the Premium package that support employers throughout the hiring process. Compared to standard Sponsored Jobs and free listings, a Premium Sponsored Job goes well beyond the basic features, offering broader range of advanced features to deliver greater value for business clients looking to make their hiring process faster and more efficient. The US ARPJ growth rate reaches 35% in Q1, substantially above the quarterly levels recorded in fiscal year 2025. Although the total number of US job postings declined approximately 4% year-over-year, US revenue increased 30.0% year-over-year to a quarterly record of $1.64 billion. This was driven by faster monetization development led by Premium Sponsored Job package. The previous record was $1.61 billion in Q1 2022, when revenue grew significantly up at 24.9% year-over-year.

Junichi Arai: This slide shows the features currently included in the Premium package that support employers throughout the hiring process. Compared to standard Sponsored Jobs and free listings, a Premium Sponsored Job goes well beyond the basic features, offering broader range of advanced features to deliver greater value for business clients looking to make their hiring process faster and more efficient.

Speaker #2: Compared to standard sponsored jobs and free listings, Premium Sponsored Job goes well beyond the basic features, offering a broader range of advanced features to deliver greater value for business clients looking to make their hiring process faster and more efficient.

Junichi Arai: The US ARPJ growth rate reaches 35% in Q1, substantially above the quarterly levels recorded in fiscal year 2025. Although the total number of US job postings declined approximately 4% year-over-year, US revenue increased 30.0% year-over-year to a quarterly record of $1.64 billion. This was driven by faster monetization development led by Premium Sponsored Job package. The previous record was $1.61 billion in Q1 2022, when revenue grew significantly up at 24.9% year-over-year.

Speaker #2: The US OpJ growth rate reaches 35% in the first quarter, substantially above the quarterly levels recorded in fiscal year 2025. Although the total number of US job postings declined approximately 4% year over year, US revenue increased 30.0% year over year to a quarterly record of $1.64 billion.

Speaker #2: This was driven by Freezer monetization development, led by the premium sponsored job package. The previous record was $1.61 billion in the first quarter of 2022, when revenue grew significantly, up 24.9% year over year.

Speaker #2: However, the total number of US job postings was approximately 57% higher than in the first quarter of 2026, and also increased approximately 24% year-over-year, leveraging the US OpJ growth rate at just 1%.

Hisayuki Idekoba: However, the total number of US job postings was approximately 57% higher than in Q1 2026, and also increased approximately 24% year-over-year, leveraging the US ARPJ growth rate at just 1%. These results demonstrate the extent and the pace of our current monetization development as seen in the difference in the US ARPJ growth rates. Our model has evolved from one centered on a search engine and a pay-per-click or PPC job ads to an AI-powered, faster and more

Junichi Arai: However, the total number of US job postings was approximately 57% higher than in Q1 2026, and also increased approximately 24% year-over-year, leveraging the US ARPJ growth rate at just 1%. These results demonstrate the extent and the pace of our current monetization development as seen in the difference in the US ARPJ growth rates. Our model has evolved from one centered on a search engine and a pay-per-click or PPC job ads to an AI-powered, faster and moreA precise and high-value matching platform in a two-sided decision-making marketplace.

Speaker #2: These results demonstrate the extended pace of our current monetization development, as seen in the difference in the U.S. OpJ growth rates. Our model has evolved from one centered on a search engine and pay-per-click, or PPC, jobs to an AI-powered, faster, more precise, and higher-value matching platform in a two-sided decision-making marketplace.

Junichi Arai: A precise and high-value matching platform in a two-sided decision-making marketplace. Our full-year outlook is based on the first quarter results, together with our latest performance outlook for Q2 through Q4, which assumes an approximately 4% year-over-year decline in the total number of US job postings, consistent with our assumption at the beginning of the fiscal year. We have substantially revised our year-over-year US revenue growth outlook from 13.6% to 25.1%, reaching $6.6 billion, which would be a record high for full-year revenue on a US dollar basis. We expect the US ARPJ growth rate to be approximately 30% for fiscal year 2026. For context, the previous full year revenue record was $6.0 billion in fiscal year 2022. In the fiscal year, the total number of US job postings increased approximately 3% year-over-year, revenue increased by 4.9% year-over-year, and the US ARPJ growth rate was at 2%.

Junichi Arai: Our full-year outlook is based on the first quarter results, together with our latest performance outlook for Q2 through Q4, which assumes an approximately 4% year-over-year decline in the total number of US job postings, consistent with our assumption at the beginning of the fiscal year. We have substantially revised our year-over-year US revenue growth outlook from 13.6% to 25.1%, reaching $6.6 billion, which would be a record high for full-year revenue on a US dollar basis.

Speaker #2: Our full-year outlook is based on the first quarter result together with our latest performance outlook for the second quarter through the fourth quarter, which assumes an approximately 4% year-over-year decline in the total number of U.S. job postings, consistent with our assumption at the beginning of the fiscal year.

Speaker #2: We have substantially revised our year over year US revenue growth outlook from 13.6% to 25.1%, reaching 6.6 billion US dollars, which would be a record high for full year revenue on the US dollar basis.

Junichi Arai: We expect the US ARPJ growth rate to be approximately 30% for fiscal year 2026. For context, the previous full year revenue record was $6.0 billion in fiscal year 2022. In the fiscal year, the total number of US job postings increased approximately 3% year-over-year, revenue increased by 4.9% year-over-year, and the US ARPJ growth rate was at 2%.

Speaker #2: We expect the U.S. OpJ growth rate to be approximately 30% for fiscal year 2026. For context, the previous full-year revenue record was $6.0 billion in fiscal year 2022.

Speaker #2: In the fiscal year, the total number of U.S. job postings increased approximately 3% year-over-year, revenue increased by 4.9% year-over-year, and the U.S. OpJ growth rate was 2%.

Speaker #2: Next, the European others. First quarter revenue increased 28.5% year over year to $0.6 billion U.S. dollars. On a local currency basis, revenue increased approximately 34% year over year in the U.K. and approximately 46% year over year in Canada.

Junichi Arai: Next, Europe and others. First quarter revenue increased 28.5% year-over-year to USD 0.6 billion. On a local currency basis, revenue increased approximately 34% year-over-year in the UK and approximately 46% year-over-year in Canada. This growth was mainly driven by continued monetization developments through the expanded adoption of Premium Sponsored Jobs. For fiscal year 2026, we have revised our full-year revenue growth outlook from 17.1% to 23.2% year-over-year, reaching USD 2.5 billion. As in previous years, approximately two-thirds of this revenue is expected to come from the UK, Canada, and Germany. In Japan, first quarter revenue increased 6.7% year-over-year to JPY 93.3 billion. In job advertising services, Indeed PLUS performed above our initial expectations, driven by an increase in the number of paid jobs and a growing price per job, while placement services have recovered faster than expected.

Speaker #2: This growth was mainly driven by continued monetization development through the expanded adoption of premium sponsored jobs for fiscal year 2026. We have revised our full-year revenue growth outlook from 17.1% to 23.2% year over year, reaching $2.5 billion. As in previous years, approximately two-thirds of this revenue is expected to come from the UK, Canada, and Germany.

Junichi Arai: As in previous years, approximately two-thirds of this revenue is expected to come from the UK, Canada, and Germany. In Japan, first quarter revenue increased 6.7% year-over-year to JPY 93.3 billion. In job advertising services, Indeed PLUS performed above our initial expectations, driven by an increase in the number of paid jobs and a growing price per job, while placement services have recovered faster than expected.

Speaker #2: In Japan, first quarter revenue increased 6.7% year over year to ¥93.3 billion. In job advertising services, Indeed performed above our initial expectations, driven by an increase in the number of paid jobs and a growing price per job, while placement services have recovered faster than expected.

Speaker #2: For fiscal year 2026, we expect this trend to continue, more than offsetting headwinds specific to this fiscal year, namely changes in revenue recognition from gross to net, and the withdrawal from or downsizing of unprofitable businesses.

Junichi Arai: For fiscal year 2026, we expect this trend to continue more than certain headwinds specific to this fiscal year, namely changes in revenue recognition from growth to net and withdrawal from or downsizing of unprofitable businesses. Therefore, we have revised the full-year revenue outlook upward on a Japanese yen basis from growth of 2.1% year-over-year to growth of 5.4% year-over-year or JPY 367 billion. On a US dollar basis, we expect revenue to be flat at 0% year-over-year at USD 2.3 billion. Seeing this upward revision of our revenue and the EBITDA+S margin, we believe some of you might be concerned that the HR technology has already peaked and has a limited upside. However, we firmly believe the business has a significant long-term expansion ahead as we leverage AI to build out a comprehensive suite of hiring products and services.

Speaker #2: Therefore, we have revised the full-year revenue outlook upward on a Japanese yen basis, from growth of 2.1% year over year to growth of 5.4% year over year, or ¥367 billion.

Speaker #2: On a US dollar basis, we expect revenue to be flat at 0% year over year at 2.3 billion US dollars. Seeing the same for the revision in our revenue and the EBITDA process margin, we believe some of you might be concerned that the HR technology has already peaked and has limited upside.

Junichi Arai: On a US dollar basis, we expect revenue to be flat at 0% year-over-year at USD 2.3 billion. Seeing this upward revision of our revenue and the EBITDA+S margin, we believe some of you might be concerned that the HR technology has already peaked and has a limited upside. However, we firmly believe the business has a significant long-term expansion ahead as we leverage AI to build out a comprehensive suite of hiring products and services.

Speaker #2: However, we firmly believe that the business has significant long-term expansion ahead, as we leverage AI to build out a comprehensive suite of hiring products and services.

Speaker #2: As Deco has been explaining since May, HR technology is not simply aiming to expand within the $34 billion US job advertising market. We believe we can achieve greater growth over the mid to long term by converting business clients' hiring expenditure above the market of approximately $200 billion US, increase placement services, as well as an estimated $68 billion US for hiring automation, into our revenue.

Junichi Arai: As Deko has been explaining since May, HR technology is not simply aiming to expand within the USD 34 billion job advertising market. We believe that we can achieve greater growth over the mid to long term by converting business clients' hiring expenditure, a vast market of approximately USD 200 billion that includes placement services, as well as an estimated USD 68 billion for hiring automation into our revenue. Many companies worldwide are actively using AI to improve efficiency across areas of HR and M&A, and the hiring processes with its many manual tasks of HR teams is no exception. By further improving matching accuracy and speed for job seekers and the business clients in a two-sided decision-making marketplace, and by using AI automation tools to help improve the productivity and efficiency of the hiring process from candidate attraction through subsequent stages, we can achieve sustainable growth.

Speaker #2: Many companies worldwide are actively using AI.

Junichi Arai: Many companies worldwide are actively using AI to improve efficiency across areas of HR and M&A, and the hiring processes with its many manual tasks of HR teams is no exception. By further improving matching accuracy and speed for job seekers and the business clients in a two-sided decision-making marketplace, and by using AI automation tools to help improve the productivity and efficiency of the hiring process from candidate attraction through subsequent stages, we can achieve sustainable growth.

Speaker #1: To improve efficiency across areas of . And the hiring processes . With its many manual tasks of HR teams , is no exception By further improving matching accuracy and speed for job seekers and business clients in a two sided decision making marketplace and by using AI automation tools to help improve the productive productivity and efficiency of the hiring process .

Speaker #1: From candidate attraction, as a result of sequential stages, we can achieve sustainable growth. In this segment, revenue outlook for fiscal year 2026 is only $11.4 billion.

Junichi Arai: The segment revenue outlook for fiscal year 2026 is only $11.4 billion. There remains a substantial white space and a long runway for growth. Next, Staffing. First quarter segment revenue increased 11.5% year-over-year to JPY 455.2 billion. In Japan, revenue increased 3.5% year-over-year to JPY 220.2 billion, reflecting continued stable performance. In Europe and the US and Australia, revenue increased 20.3% year-over-year to JPY 235.0 billion, including a positive impact from foreign exchange rate fluctuations and reflecting strong performance in the US, capturing solid demand as well as signs of a recovery in staffing demand in Europe and Australia, despite market conditions in both regions remaining challenging. EBITDA+S margin was 6.2%. We are making only minor upward revision to our initial full-year outlook. We now expect segment revenue of JPY 1.83 trillion and the segment EBITDA+S margin of 5.6%. Finally, Marketing Matching Technologies or MMT.

Speaker #1: There remains a substantial white space on a long , long way for growth . And next , stuffing first quarter segment revenue increased 11.5% year over year to ¥455.2 billion in Japan , revenue increased 3.5% year over year to ¥220.2 billion , reflecting continued stable performance in Europe and the US , and Australia .

Junichi Arai: In Europe and the US and Australia, revenue increased 20.3% year-over-year to JPY 235.0 billion, including a positive impact from foreign exchange rate fluctuations and reflecting strong performance in the US, capturing solid demand as well as signs of a recovery in staffing demand in Europe and Australia, despite market conditions in both regions remaining challenging.

Speaker #1: Revenue increased 20.3% year over year to ¥235.0 billion, including a positive impact from foreign currency exchange rate fluctuations and reflecting strong performance in the US.

Speaker #1: Capturing solid demand, as well as signs of a recovery in staffing demand in Europe and Australia, despite market conditions in both regions.

Speaker #1: Remaining challenging , EBITDA margin was 6.2% . We are making only minor upward revision to our initial full year outlook . We now expect segment revenue of 1.83 billion , ¥1.83 trillion , and the segment EBITDA margin of 5.6% .

Junichi Arai: EBITDA+S margin was 6.2%. We are making only minor upward revision to our initial full-year outlook. We now expect segment revenue of JPY 1.83 trillion and the segment EBITDA+S margin of 5.6%. Finally, Marketing Matching Technologies or MMT. MMT operates one of the largest matching platforms in Japan, connecting individual user account base of approximately 99 million Recruit IDs with approximately 980,000 business clients across multiple verticals.

Speaker #1: Finally, Marketing Margin Technology, or MMT. MMT operates one of the largest margin platforms in Japan, connecting an individual user account base of approximately 99 million Recruit IDs with approximately 980,000.

Junichi Arai: MMT operates one of the largest matching platforms in Japan, connecting individual user account base of approximately 99 million Recruit IDs with approximately 980,000 business clients across multiple verticals. Our individual user base and our points program maintain and increase the number of actions taken on our platform by providing fulfillment functions that efficiently complete a sequence of processes from customer acquisition through payment. We accumulate unique data on our platform. Leveraging this unique data, MMT uses AI to propose optimal services and pricing tailored to each business client, most of whom are small and mid-sized businesses, driving growth in their GMV.

Speaker #1: Business segments across multiple verticals. Our individual user base and our pointer program maintain and increase the number of actions taken on our platform by providing fulfillment functions and efficiently completing a sequence of processes from customer acquisition through to payment, while accumulating unique data on our platform.

Junichi Arai: Our individual user base and our points program maintain and increase the number of actions taken on our platform by providing fulfillment functions that efficiently complete a sequence of processes from customer acquisition through payment. We accumulate unique data on our platform. Leveraging this unique data, MMT uses AI to propose optimal services and pricing tailored to each business client, most of whom are small and mid-sized businesses, driving growth in their GMV.

Speaker #1: Leveraging this unique data, machine learning is used with AI to propose optimal services and pricing tailored to each business client, most of whom are small and medium-sized businesses.

Speaker #1: Driving growth in their GMV by shifting multiple platforms , including Beauty and custom home building and renovation consulting , which we discussed in February and May , as well as automobile , which I will discuss today from fixed monthly listing fees to a GMV linked model , we believe we can achieve sustainable revenue growth even as the AI technology becomes more widespread and continues to evolve .

Junichi Arai: By shifting multiple platforms, including beauty and custom home building and renovation consulting, which we discussed in February and May, as well as automobile, which I will discuss today, from fixed monthly listing fees to a GMV-linked model, we believe we can achieve sustainable revenue growth even as AI technology becomes more widespread and continues to evolve. MMT consists of a lifestyle, including beauty, travel, dining, and sound solutions, housing and real estate, and others. Before discussing the results and outlook, I will explain the evolution of automobile within others, where we introduced a GMV-linked model starting this fiscal year. Since 1984, automobile has operated an automobile inventory advertising service in Japan under the Car Sensor brand, primarily covering used vehicles listed by business clients such as used car dealers. Today, it is one of the largest matching platforms in Japan's used car market.

Speaker #1: MMT consists of lifestyle , including beauty , travel , dining , and sound solutions , housing and real estate , and others . Before discussing the results and outlook , I will explain the evolution of automobile within others where we introduce GMV linked model as starting this fiscal year Since 1984 , automobile has operated on an automobile a inventory advertising service in Japan under the car sensor brand , primarily primarily covering used vehicle vehicles listed by business clients such as used car dealers .

Junichi Arai: Before discussing the results and outlook, I will explain the evolution of automobile within others, where we introduced a GMV-linked model starting this fiscal year. Since 1984, automobile has operated an automobile inventory advertising service in Japan under the Car Sensor brand, primarily covering used vehicles listed by business clients such as used car dealers. Today, it is one of the largest matching platforms in Japan's used car market.

Speaker #1: Today, it is one of the largest matching platforms in Japan. In the used car market, individual users can search for business clients and vehicle inventories, and then make inquiries or reserve dealership visits through the mobile application or website.

Junichi Arai: Individual users can search business clients' vehicle inventories, and then make inquiries and reserve dealership visits through the mobile application or website. Although it is a business model, a transition from print media to online services, it remained based on the fixed monthly listing fees through fiscal year 2025. Revenue in fiscal year 2025 was JPY 33.4 billion. Starting in fiscal year 2026, in addition to the existing fixed monthly listing fees, we introduced a GMV-linked model under which business clients pay based on purchase intent action taken by individual users, such as inquiries and dealership visit reservations. Business clients' vehicle inventory data and data such as the number of inquiries from individual users are synchronized with our platform through vertical solutions. In addition, the use of AI has substantially reduced the workload required for business clients to upload vehicle images.

Speaker #1: So it is a business model. A transition from print media to online services is made based on the fixed monthly listing fee through fiscal year 2025.

Speaker #1: Revenue in fiscal year 2025 was ¥33.4 billion . Starting in fiscal year 2026 . In addition to the existing fixed monthly listing fees , we introduced a GMV linked model under which business clients pay a Under featured business , clients pay based on purchase intent action taken by individual users , such as inquiries under dealership visits , reservations , business and clients , vehicle inventory data , and the data , such as the number of inquiries from individual users are synchronized from within .

Junichi Arai: Starting in fiscal year 2026, in addition to the existing fixed monthly listing fees, we introduced a GMV-linked model under which business clients pay based on purchase intent action taken by individual users, such as inquiries and dealership visit reservations. Business clients' vehicle inventory data and data such as the number of inquiries from individual users are synchronized with our platform through vertical solutions. In addition, the use of AI has substantially reduced the workload required for business clients to upload vehicle images.

Speaker #1: With our platform through a vertical source solutions . In addition , the use of AI has a substantially reduced the workload required for business clients to upload the vehicle images .

Speaker #1: These capabilities have increased the volume of vehicle inventory images on the platform, as well as the strategic allocation of sales and promotion expenses, by driving growth in individual user actions and the number of these deliveries.

Junichi Arai: These capabilities have increased the volume of vehicle inventory images on the platform, as well as the strategic allocation of sales promotion expenses. By driving growth in individual user action and the number of leads delivered through these efforts, we contributed to increasing business clients that completed a transaction and revenue, leading them to increasingly recognize the value provided by the platform, which is the driver behind this model's introduction. As a result, Q1 revenue increased to 15.8% year over year. The introduction of the GMV-linked model led to an increase in the number of vehicles listed, resulting in a year over year increase of 12.5% in individual user actions, which was the main driver of the revenue increase. I will now discuss the results and the outlook for MMT.

Speaker #1: These efforts contributed to increasing business clients' completed transactions and revenue, leading them to increasingly recognize the value provided by the platform, which is the driver behind this.

Speaker #1: Model's introduction . As a result , first quarter revenue increased to 15.8% year over year . The introduction of GMV linked to model led to an increase in the number of vehicles listed , resulting in a year over year increase of 12.5% in individual user actions , which was the main driver of the revenue increase .

Junichi Arai: As a result, Q1 revenue increased to 15.8% year over year. The introduction of the GMV-linked model led to an increase in the number of vehicles listed, resulting in a year over year increase of 12.5% in individual user actions, which was the main driver of the revenue increase. I will now discuss the results and the outlook for MMT.

Speaker #1: I will now discuss the results and outlook for MMT in the first quarter . Revenue in lifestyle increased 9.6% year over year , driven largely by revenue growth in beauty resulting from the addition of GMV linked to model revenue in housing and real estate Increased 2.8% year over year , reflecting stronger user action growth both in custom home building and the renovation and consulting , where the GMV linked model was introduced , as well as in residential resale .

Junichi Arai: In Q1, revenue in lifestyle increased 9.6% year over year, driven largely by revenue growth in beauty resulting from the addition of the GMV-linked model. Revenue in housing and real estate increased 2.8% year over year, reflecting stronger user action growth both in custom home building and renovation consulting, where the GMV-linked model was introduced, as well as in residential resale. As a result, the segment revenue increased 3.7% year over year to JPY 141.8 billion. Segment EBITDA+S margin was 36.0% as a result of revenue growth, as well as our cost optimization efforts, including reducing service outsourcing expenses.

Speaker #1: As a result , the segment revenue increased 3.7% year over year to ¥141.8 billion . Segment EBITDA profit margin was 36.0% . As a result of revenue growth , as well as our cost optimization efforts , including reducing service outsourcing expenses .

Junichi Arai: As a result, the segment revenue increased 3.7% year over year to JPY 141.8 billion. Segment EBITDA+S margin was 36.0% as a result of revenue growth, as well as our cost optimization efforts, including reducing service outsourcing expenses.

Speaker #1: As discussed in May, starting in fiscal year 2026, the MMT is smoothing out the seasonality of the sales, promotion, and advertising expenses.

Junichi Arai: As discussed in May, starting in fiscal year 2026, MMT is smoothing out the seasonality of sales promotion and advertising expenses following strategic sales promotion and advertising spending in Q2 in areas where we expect return on investment from the GMV-linked model, including beauty, travel, housing, and real estate. We expect the H1 EBITDA+S margin to be approximately 31%, in line with our initial outlook. Our full-year outlook is unchanged from May. We expect segment revenue to increase 7.1% year over year to JPY 605 billion, with a segment EBITDA+S margin of 30%. Now we would like to go on Q&A. Once you are called upon, please unmute, and one question plus a follow-up question will be allowed per hand raise. If you want to ask a question, please use the hand raise button.

Speaker #1: The following strategic sales , promotion and advertising spending in second quarter in areas where we expect return on investment from the GMB linked model , including beauty , travel , housing , real estate , we expect the first half EBITDA margin to be approximately 31% in line with our initial outlook , Ahuja outlook is unchanged from May .

Speaker #1: We expect segment revenue to increase 7.1% year over year to ¥605 billion , with a segment plus margin of 30% . Now , we would like to go on a Q and A , so if once you are called upon , please unmute .

Operator: Now we would like to go on Q&A. Once you are called upon, please unmute, and one question plus a follow-up question will be allowed per hand raise. If you want to ask a question, please use the hand raise button. First, Minami-san from Goldman Sachs Securities, please go ahead.

Speaker #1: And one question, plus a follow-up question, will be allowed per hand raise. If you want to ask a question, please use the hand raise button. First, a question from Goldman Sachs Securities.

Junichi Arai: First, Minami-san from Goldman Sachs Securities, please go ahead. This is Minami of Goldman Sachs. Can you hear me?

Speaker #1: Please go ahead This is Munakata of Goldman Sachs . Can you hear me Yes , please . Thank you . Regarding us off J increased the 35% year over year in the fourth quarter .

Minami Munakata: This is Minami of Goldman Sachs. Can you hear me?

[Analyst] (Goldman Sachs Securities): Yes, please.

Operator: Yes, please.

[Analyst] (Goldman Sachs Securities): Thank you. Regarding US OpJ, it increased 35% year-over-year. In Q4, it was already high at 25%, but you have further accelerated, which is quite amazing. In Adecco's presentation, HR manual works are automated, and you are now entering a new phase as per your comment, and Arai-san also talks about the expansion of the TAM. The areas where you compete have changed. I believe the TAM is expanding. Do you actually feel that? Do you feel that where you play have changed, for example, compared to the existing online job ad domain from automating manual processes, you are seeing the expansion of TAM going into the recruiting automation domain. Is that true? In other words, the wallet share that you will be able to go after is expanding. Do you feel that? Deko, what do you think?

Minami Munakata: Thank you. Regarding US OpJ, it increased 35% year-over-year. In Q4, it was already high at 25%, but you have further accelerated, which is quite amazing. In Adecco's presentation, HR manual works are automated, and you are now entering a new phase as per your comment, and Arai-san also talks about the expansion of the TAM. The areas where you compete have changed. I believe the TAM is expanding.

Speaker #1: It was already high at 25% . But you have further accelerated , which is quite amazing . And in Deco's presentation , HR manual works are automated and you are now entering a new phase as per your comment and analyzing also talks about the expansion of the Tam .

Speaker #1: So the areas where you compete have changed. I believe the TAM is expanding. Do you actually feel that? Do you feel that?

Minami Munakata: Do you actually feel that? Do you feel that where you play have changed, for example, compared to the existing online job ad domain from automating manual processes, you are seeing the expansion of TAM going into the recruiting automation domain. Is that true? In other words, the wallet share that you will be able to go after is expanding. Do you feel that? Deko, what do you think?

Speaker #1: Where you play . Have changed ? For example , compared to the existing online job at domain to from automating manual processes ? You are seeing the expansion of Tam going into the recruiting automation domain .

Speaker #1: Is that true ? In other words , the wallet share that you will be able to go after . It's expanding . Do you feel that there go .

Speaker #1: What do you think? Well, currently I am in conversation with various clients and looking at the logs of those conversations that we've had with clients.

Hisayuki Idekoba: Well, currently, I am in conversation with various clients and looking at the logs of those conversations that we've had with clients. It is particularly true for small and medium businesses. How should I say? This may not be a good example. If you think, for example, food delivery service. When I used a food delivery service and I shared this with my wife, she said, "Well, how wasteful. It's much cheaper to buy at a nearby supermarket." For me, I had the urge to eat quicker. I was prepared to pay certain delivery fees that was an acceptable fee. For small and medium-sized businesses, what's happening today is that they have certain roles that remain vacant for two months, and they are willing to pay additional JPY 1,000 or JPY 2,000. That's the kind of conversation that we are hearing more from SMBs.

Speaker #1: It is a particularly true for small and medium businesses . How should I say This may not be a good example If you think , for example , food delivery service When I used food delivery service and I shared this with my wife , she said , how wasteful .

Speaker #1: It's much cheaper to buy at a nearby supermarket. But for me, I had the urge to eat quicker, so I was ready.

Hisayuki Idekoba: It's much cheaper to buy at a nearby supermarket." For me, I had the urge to eat quicker. I was prepared to pay certain delivery fees that was an acceptable fee. For small and medium-sized businesses, what's happening today is that they have certain roles that remain vacant for two months, and they are willing to pay additional JPY 1,000 or JPY 2,000. That's the kind of conversation that we are hearing more from SMBs.

Speaker #1: I was prepared to pay a certain delivery fees . That was an acceptable fee , but for a small and medium sized businesses , what's happening today is that they have certain roles that remain vacant for two months , and they are willing to pay additional $1000 or $2000 .

Speaker #1: That's the kind of conversation that we are hearing . More from SMEs . And by having these business clients using for HR teams in SMEs , they usually have other responsibilities besides HR .

Hisayuki Idekoba: By having these services clients using for HR teams in SMBs, they usually have other responsibilities besides HR, and by using our services, they can now free up some of their time to spend on other tasks. Starting from SMBs to more larger clients or clients with JPY 1 million or JPY 2 million of budget, as I shared an example earlier, sometimes clients have the needs to check the ROI. For instance, Smart Sourcing, Smart Screening, these type of services that are introduced in order to compare with human recruiters that they have internally. Ultimately, the kind of roles or tasks assigned to internal agents have reduced. After a trial of 1 month, they see the ROI and then make a decision to introduce the service. That's what's happening in some cases.

Speaker #1: And by using our services , they can now free up some of their time to spend on other tasks . And starting from SMEs to a more larger clients , a clients with 1 million or 2 million of budget .

Speaker #1: As I shared an example earlier , sometimes clients have the needs to check the ROI . So for instance , I . Sourcing AI screening these type of services that are introduced in order to compare with human recruiters that they have internally and ultimately the kind of roles or tasks assigned to internal agents have reduced after trial of one month .

Hisayuki Idekoba: For instance, Smart Sourcing, Smart Screening, these type of services that are introduced in order to compare with human recruiters that they have internally. Ultimately, the kind of roles or tasks assigned to internal agents have reduced. After a trial of 1 month, they see the ROI and then make a decision to introduce the service. That's what's happening in some cases.

Speaker #1: They see the ROI and then make a decision to introduce the service . So that's what's happening . In some cases . So for us , it's more than just selling tools rather than simple sales of tools .

Hisayuki Idekoba: For us, it's more than just the selling tools rather than simple sales of tools. Simply put, the back-end process is ultimately, you don't want to hire 20 or 30 people, and you don't want to screen these candidates. You check their resumes, make sure they have their licenses, they contact them to confirm. That's what's happening in the back-end processes. By sending high-quality candidates, by targeting, we have been successfully eliminating all these back-end processes. Maybe my explanation is poor, but for SMBs, ultimately, they are able to hire faster. They have more time to spend on other tasks. From medium to larger enterprises, they are realizing that their manual work has been reduced significantly. After a trial of our products for maybe a month or so, they realize that they are able to reduce manual tasks.

Speaker #1: Simply put, the back-end process is, ultimately, you don't want to hire 20 or 30 people, and you don't want to screen these candidates.

Speaker #1: You check their resumes , make sure they have their licenses . They contact them to to confirm . So that's what's happening in the back end processes .

Speaker #1: So by sending high quality candidates by targeting , we have been successfully eliminating all these back end processes . Maybe my explanation is poor , but for SMEs , ultimately they are able to hire faster .

Hisayuki Idekoba: By sending high-quality candidates, by targeting, we have been successfully eliminating all these back-end processes. Maybe my explanation is poor, but for SMBs, ultimately, they are able to hire faster. They have more time to spend on other tasks. From medium to larger enterprises, they are realizing that their manual work has been reduced significantly. After a trial of our products for maybe a month or so, they realize that they are able to reduce manual tasks.

Speaker #1: They have more time to spend on other tasks. From medium to larger enterprises, they are realizing that their manual work has been reduced significantly. After a trial of our products for maybe a month or so, they realized that they are able to reduce manual tasks.

Speaker #1: Maybe they started with one task in mind, but by looking at the results, they are now expanding to cover other tasks.

Hisayuki Idekoba: Maybe they started with one task in mind, but by looking at the results, they are now expanding to cover other tasks. I apologize for the poor explanation, but that's what's happening. No, that's very clear. I believe for SMBs and larger enterprises, their pains and issues differ. I surmise so. The points that they emphasize are clearly understood. You understand the needs, their demands, and by matching solutions to address their issues, automation will further proceed. Well, actually, they are the same. The issues are the same, but the way and how they realize the pains are different. As I said before, why is there such steps as screening and sourcing afterwards? Let's say 20 people apply and you did not find a qualified candidate. You want to see more qualified candidates, and that's what leads to sourcing. Companies do their own sourcing.

Speaker #1: I apologize for the poor explanation , but that's what's happening . No , that's very clear . I believe for SMEs and larger enterprises , there pains and issues differ .

Speaker #1: I surmise. So, at the points that they emphasize, it was clearly understood. You understand the needs, their demands, and by matching solutions to address their issues, automation will further proceed.

Speaker #1: Well , actually , there are the same the issues are the same , but the way and how they realize the pains are different .

Hisayuki Idekoba: Well, actually, they are the same. The issues are the same, but the way and how they realize the pains are different. As I said before, why is there such steps as screening and sourcing afterwards? Let's say 20 people apply and you did not find a qualified candidate. You want to see more qualified candidates, and that's what leads to sourcing. Companies do their own sourcing.

Speaker #1: So as I said before , why is there such steps as screening and sourcing after afterwards ? Let's say 20 people apply and you did not find a qualified candidate .

Speaker #1: You want to see a more qualified candidates . And that's what leads to sourcing . Companies do their own sourcing . They search for resumes , they contact the candidates .

Hisayuki Idekoba: They search for resumes, they contact the candidates, but it's not producing results, maybe they will use an agent. That's what is happening in most cases. It's not that they're looking at the ROI from the very beginning and trying to reduce costs, rather, looking at the conversations we've had with these companies, they've decided to hire and in some larger enterprises as well, because the hiring is already decided, they now have the budget. Ultimately, this ends up in more payments to us. I don't feel that we are competing with automation tool providers. I think value propositions are slightly different. Thank you very much for that very insightful response. I apologize for that. No, that was very interesting. I have one follow-up question. The annual US OpJ outlook is what I would like to ask about.

Speaker #1: But it's not producing results . So maybe they will use an agent . So that's what is happening . In most cases . So it's not that they are looking at the ROI from the very beginning and trying to reduce costs , but rather looking at the conversations we've had with these companies , they Decided to hire .

Speaker #1: And in some larger enterprises as well , because hiring is already decided , they now have the budget . So ultimately this ends up in a more payments to us .

Speaker #1: But I don't feel that we are competing with automation tool providers. I think the value propositions are slightly different. Thank you very much for that.

Minami Munakata: Thank you very much for that very insightful response. I apologize for that. No, that was very interesting. I have one follow-up question. The annual US OpJ outlook is what I would like to ask about. You've mentioned that it has become more difficult to have a precise forecasting, as of today, after Q2 and later, what do you think will happen? What are your expectations? For instance, as the example you've shared, growth from large enterprises remains firm. Do you consider that a growth driver? How are you building your guidance right now? What factors do you consider?

Speaker #1: Very insightful response . I apologize for that . No , that was very interesting . I have one follow up question . The annual U.S.

Speaker #1: object Outlook is what I would like to ask about . You've mentioned that it has become more difficult to have a precise forecasting , but as of today , after second quarter and later , what do you think will happen ?

[Analyst] (Goldman Sachs Securities): You've mentioned that it has become more difficult to have a precise forecasting, as of today, after Q2 and later, what do you think will happen? What are your expectations? For instance, as the example you've shared, growth from large enterprises remains firm. Do you consider that a growth driver? How are you building your guidance right now? What factors do you consider? That is a wonderful question. For me as well, I am working hard to better understand what will be the drivers going ahead. I have looked at the various factors, but at present, SMBs, the spend per client increase is going to contribute. For OpJ, it's not simply the unit price increase, but if you look at the breakdown, increase in the number of paying clients also contributes, as well as the number of paid job postings, and unit price per job increase.

Speaker #1: What are your expectations? For instance, as in the example you've shared, growth from large enterprises remains firm. So do you consider that a growth driver?

Speaker #1: How are you building your guidance right now? What factors do you consider? That is a wonderful question for me as well. I am working hard to better understand what will be the drivers going ahead.

Hisayuki Idekoba: That is a wonderful question. For me as well, I am working hard to better understand what will be the drivers going ahead. I have looked at the various factors, but at present, SMBs, the spend per client increase is going to contribute. For OpJ, it's not simply the unit price increase, but if you look at the breakdown, increase in the number of paying clients also contributes, as well as the number of paid job postings, and unit price per job increase.

Speaker #1: I have looked at the various factors , but at present SMEs He spend per client increase is going to contribute for object . It's not simply the unit price increase , but if you look at the breakdown increase in the number of paying clients , also contributes as well as The number of paid job postings and unit price per job increase .

Speaker #1: The three factors that I've just mentioned contribute to object growth . So for SMEs , I think each factor contributes one third . So that's roughly the combination of a contribution that we are seeing from those factors .

Hisayuki Idekoba: The three factors that I've just mentioned contribute to ARPJ growth. For SMBs, I think each factor contributes one third. That's roughly the combination of contribution that we are seeing from those factors. As I've just mentioned before, clients are starting to realize that our services do help them reduce manual work and that they are now applying the services in other areas. We are seeing our customers returning and also increase in the number of new clients all driving ARPJ growth as well as the unit price per job. For larger enterprises, they have introduced automation tools, and some are like SMBs. They see roles vacant for 2 months or so, and they see that people on the ground are struggling, that's why they want to trial our product and services. If you think about it makes sense.

Speaker #1: So as I've just mentioned before , clients are starting to realize that our services do help them reduce the manual work . And they are now applying the services in other areas .

Speaker #1: So we are seeing our customers returning and also an increase in the number of new clients, which is driving overall growth, as well as the unit price per job for larger enterprises.

Hisayuki Idekoba: We are seeing our customers returning and also increase in the number of new clients all driving ARPJ growth as well as the unit price per job. For larger enterprises, they have introduced automation tools, and some are like SMBs. They see roles vacant for 2 months or so, and they see that people on the ground are struggling, that's why they want to trial our product and services. If you think about it makes sense.

Speaker #1: They have introduced automating automation tools, and some are like SMEs. They see roles vacant for two months or so, and they see that people on the ground are struggling.

Speaker #1: So that's why they want to trial our products and services . And if you think about it , it makes sense . If you think of a good targeting advertisement , it basically uses AI sourcing .

Hisayuki Idekoba: If you think of a good targeting advertisement, it basically uses AI sourcing. From among resumes, comparing to a human recruiter reaching out to candidates versus AI sourcing, I think over a few years' time, I think the results will be the same. Advertising targeting is also being enhanced, and this is going into the sourcing domain. Maybe companies will focus on several different roles. The number of jobs may decrease, but on the other hand, unit price may increase. It's a combination of all these different factors. What I'm trying to say is that we are seeing such an amazing pace of AI introduction and AI growth. Of course, we are making an effort every day. The market is huge. What accuracy? Is it 20%, 25%, or 30% growth rate? It's very difficult to calculate and forecast. That's the situation.

Speaker #1: And from among resumes comparing to human recruiter reaching out to candidates versus AI sourcing . I think over a few years time , I think the resultant , the results will be the same .

Speaker #1: So, advertising targeting is also being enhanced, and this is going into the sourcing domain. So maybe companies will focus on several different roles.

Speaker #1: So, the number of jobs may decrease. But on the other hand, unit price may increase. So it's a combination of all these different factors.

Hisayuki Idekoba: The number of jobs may decrease, but on the other hand, unit price may increase. It's a combination of all these different factors. What I'm trying to say is that we are seeing such an amazing pace of AI introduction and AI growth. Of course, we are making an effort every day. The market is huge. What accuracy? Is it 20%, 25%, or 30% growth rate? It's very difficult to calculate and forecast. That's the situation.

Speaker #1: So what I'm trying to say is that we are seeing such an amazing pace of AI introduction and AI growth. So of course, we are making an effort every day.

Speaker #1: The market is huge . But at what accuracy is it 20% , 25% or 30% growth rate is very difficult to calculate . And forecast .

Speaker #1: That's the situation Again , another very clear answer . I admit . No , not at all . One thing that's caught my attention is in Decos comments You said an increase in unit price , among other factors , a robust and client satisfaction needs to be closely monitored .

Hisayuki Idekoba: Again, not a very clear answer, I admit. No, not at all. One thing that's caught my attention is in Deko's comment. You said an increase in unit price, among other factors, are robust, and client satisfaction needs to be closely monitored. I believe that was a part of the comments. At present, do you consider this any risk? Rather, things are performing well, and it's difficult to predict 9 months from now, what will the levels be, figures be? You are looking at the US ARPJ outlook based on various perspectives. Do I understand that correctly? Right. Rather than 2 or 3 quarters ahead, it's easier to think longer term.

Speaker #1: I believe that was part of the comments. At present, do you consider this any risk? Rather, things are performing well and it's difficult to predict nine months from now.

Speaker #1: What will the the levels be figures be . But you are looking at the U.S. object outlook based on various perspectives . Do I understand that correctly ?

Speaker #1: Right . So rather than 2 or 3 quarters ahead , it's easier to think longer term no matter how you think about it manually going through 20 or 30 resumes , making sure these candidates have licenses , calling them to make sure and scheduling meetings and such communication takes place .

Hisayuki Idekoba: Right. Rather than 2 or 3 quarters ahead, it's easier to think longer term. No matter how you think about it, manually going through 20 or 30 resumes, making sure these candidates have licenses, calling them to make sure, scheduling meetings, such communication takes place, that's still not enough. You need to go into the resume database, you need to contact the candidates, they say they're not thinking about switching jobs right now.

Hisayuki Idekoba: No matter how you think about it, manually going through 20 or 30 resumes, making sure these candidates have licenses, calling them to make sure, scheduling meetings, such communication takes place, that's still not enough. You need to go into the resume database, you need to contact the candidates, they say they're not thinking about switching jobs right now. That's an enormous task, I don't think this will continue. That manual process will be automated, this is certain, I'm sure of it. We need to ascertain changes in customers' demand as well as changes happening in the market, we need to keep pace with that change. That's the background to my comment earlier. I see. That's very clear. Thank you very much for such insightful comments. My apologies. No, no, thank you very much. The insightful comments, she said.

Speaker #1: And that's still not enough. You need to go into the resume database. You need to contact the candidates, and they say they are not thinking about switching jobs right now.

Speaker #1: That's an enormous task . And I don't will continue . So that manual process will be automated . And this is certain , I'm sure of it .

Hisayuki Idekoba: That's an enormous task, I don't think this will continue. That manual process will be automated, this is certain, I'm sure of it. We need to ascertain changes in customers' demand as well as changes happening in the market, we need to keep pace with that change. That's the background to my comment earlier.

Speaker #1: So, we need to ascertain changes in customer demand as well as changes happening in the market. And we need to keep pace with that change.

Speaker #1: That's the background to my comment earlier. I see, that's very clear. Thank you very much for such insightful comments. My apologies.

Minami Munakata: I see. That's very clear. Thank you very much for such insightful comments. My apologies. No, no, thank you very much. The insightful comments, she said.

Speaker #1: No , no no , thank you very much . The insightful comments , she says , well , that's the only way we can describe this .

Hisayuki Idekoba: Well, that's the only way we can describe this. Maybe in September with Minami-san, we will have a face-to-face meeting, so we will come back to this topic. Thank you very much.

Speaker #1: Maybe in September with Munakata San , we will have a face to face meeting . So we will come back to this topic .

Speaker #1: Thank you very much. Well, many people raised their hand, so we don't like to go quickly for a Nomura Securities. From the securities are awesome.

Hisayuki Idekoba: Well, many people raise their hands, we would like to go quickly. Nomura Securities. Nomura Securities, Om-san, please. Thank you. I'm Nomura from Nomura Securities. Thank you very much. Well, you explained the example of a healthcare client using this as a hint. Added value from Indeed to the customer, what will be the added value that can be provided? Recruiter, again, the productivity, and that is appreciated by customers. That is what you said. Well, what kind of productivity have increased as a result of the utilization of Indeed sourcing or the checking of the driver's license or not? Do you have any keywords into your mind from that perspective? Well, this particular customer. Well, looking at the majority of the healthcare related customers, especially, there are many cases which will require the driver's license. In those cases, they are struggling.

Operator: Well, many people raise their hands, we would like to go quickly. Nomura Securities. Nomura Securities, Om-san, please.

Speaker #1: Please Thank you . I'm normally from the security . Thank you very much Well , you explain the example of a health a client using this as a hint .

Jiyong Oum: Thank you. I'm Nomura from Nomura Securities. Thank you very much. Well, you explained the example of a healthcare client using this as a hint. Added value from Indeed to the customer, what will be the added value that can be provided? Recruiter, again, the productivity, and that is appreciated by customers. That is what you said. Well, what kind of productivity have increased as a result of the utilization of Indeed sourcing or the checking of the driver's license or not? Do you have any keywords into your mind from that perspective?

Speaker #1: So, added value from Indeed to the customer—what would be the added value that can be provided? A recruiter, again, the productivity, and that is appreciated by customers, is what you said.

Speaker #1: Well, what kind of productivity has increased as a result of the utilization of Indeed sourcing, or the checking of the driver's license, or not?

Speaker #1: So do you have any key words into your mind from that perspective Well , this particular customer , well , looking at the majority of the healthcare related customers Especially there are many cases of which we require the driver license .

Hisayuki Idekoba: Well, this particular customer. Well, looking at the majority of the healthcare related customers, especially, there are many cases which will require the driver's license. In those cases, they are struggling. Looking at the resume database and then approaching to the candidates, How about this job? To that end, they have many lineups of recruiters. In this particular customer, what do we compare against? Well, how many job interviews have you established? They are divided by the cost.

Speaker #1: In those cases, they are struggling. So, looking at the resume database and then approaching the candidates: how about this job?

Hisayuki Idekoba: Looking at the resume database and then approaching to the candidates, How about this job? To that end, they have many lineups of recruiters. In this particular customer, what do we compare against? Well, how many job interviews have you established? They are divided by the cost. A resume database search, a contract fee. On top of that, recruiters, personal expenses. Based on that, how many job interviews have been set up? AI automated recruiters make suggestions about the people and reaching out the possible candidates, and then the AI set up a job interview. Comparing these two cases, how much does this AI account for in terms of the number of personnel? That is why I bring up this example. Does this answer to your question?

Speaker #1: So to that end , they have many line ups of recruiters in this particular customer . What do we compare against ? Well , how many job interview have you established .

Speaker #1: And they are divided by the cost . So a resume database Search , a contract fee on top of that , recruiters personal expenses and based on that how many job interviews have been set up and also AI automated recruiters make a suggestions about the people and the reaching out the possible candidates .

Hisayuki Idekoba: A resume database search, a contract fee. On top of that, recruiters, personal expenses. Based on that, how many job interviews have been set up? AI automated recruiters make suggestions about the people and reaching out the possible candidates, and then the AI set up a job interview. Comparing these two cases, how much does this AI account for in terms of the number of personnel? That is why I bring up this example. Does this answer to your question?

Speaker #1: And then the AI set up a job interview. So, comparing these two cases, how much does this AI account for in terms of the number of personnel?

Speaker #1: So that is why I bring up this example . Does this answer to your question ? Well , does it mean this is for general purpose Rather than this product is suited for a particular customer or not necessary for a healthcare .

[Analyst] (Nomura Securities): Well, does it mean this is for general purpose rather than this product is suited for a particular customer or not necessarily for healthcare, but this can be versatile or as long as this is customized, this can be applicable to other industry and other customers. Yes, this is a general purpose to some extent, but as you may be aware, in the US, the healthcare is the toughest market in terms of demand and the supply. The skills or qualification or the driver's license are required. To put it simply, out of candidates who submitted their resume, how many percentage of those candidates are desirable candidates that the businesses feel like having an interview? Is it better to do the screening by AI or the sourcing by AI? Which is a better value for money? Well, a screening can be done during the night.

Jiyong Oum: Well, does it mean this is for general purpose rather than this product is suited for a particular customer or not necessarily for healthcare, but this can be versatile or as long as this is customized, this can be applicable to other industry and other customers.

Speaker #1: But this can be a versatile or this . As long as this is customized , this can be applicable to other industries and other customers .

Speaker #1: Yes , this is a general purpose to some extent , but as you may be aware , in the US , the health is the toughest market in terms of demand and supply .

Hisayuki Idekoba: Yes, this is a general purpose to some extent, but as you may be aware, in the US, the healthcare is the toughest market in terms of demand and the supply. The skills or qualification or the driver's license are required.

Speaker #1: So the skills or qualification or the driver's license are required . So to put it simply Out of a candidate who submitted their resume , how many percentage of those are candidates are they are desirable candidates that the businesses .

Jiyong Oum: To put it simply, out of candidates who submitted their resume, how many percentage of those candidates are desirable candidates that the businesses feel like having an interview? Is it better to do the screening by AI or the sourcing by AI? Which is a better value for money?

Speaker #1: A few feel like having an interview. Is it better to do the screening by AI or the sourcing by AI? Which is a better value for money?

Speaker #1: Well , a screening can be done during the night , so screening is a more universal . It can be easily expanded , be it construction workers .

Hisayuki Idekoba: Well, a screening can be done during the night. Screening is more universal. It can be easily expanded, be it the construction workers. Well, even if 1,200 candidates apply, this can be introduced. Basically speaking, what will be the cost at which how many job interview can be set up? That is a perspective of customers.

Hisayuki Idekoba: Screening is more universal. It can be easily expanded, be it the construction workers. Well, even if 1,200 candidates apply, this can be introduced. Basically speaking, what will be the cost at which how many job interview can be set up? That is a perspective of customers. Well, I have one other question. For this area, you said this will be a major driver of growth for Indeed. What will be the picture in three years? Currently, majority of your market cap, well, 90% of Indeed is corp, and the majority of the customer is SMB. If the no advertisement is increasing, and if the major enterprises portion is increasing, that would be interesting. What would be your landscape in three years from now? Well, my vision, simplify hiring. That is what I would like to accomplish.

Speaker #1: Well , even if a 1200 candidates apply , this can be introduced . Basically speaking , what would be the cost to feature ?

Speaker #1: How many job interviews can be set up? This is from the perspective of customers. Well, I have a follow-up question in this area. You said this will be a major driver of growth for Indeed.

Jiyong Oum: Well, I have one other question. For this area, you said this will be a major driver of growth for Indeed. What will be the picture in three years?

Speaker #1: So what would be the in three years ? Currently , majority of your market cap . Well , 90% of . Indeed is .

Hisayuki Idekoba: Currently, majority of your market cap, well, 90% of Indeed is corp, and the majority of the customer is SMB. If the no advertisement is increasing, and if the major enterprises portion is increasing, that would be interesting.

Speaker #1: And the majority of the customer is SM So if there are no advertisement is increasing and if the . The major enterprises portion is increasing , that would be interesting .

Speaker #1: What would be your landscape in three years from now? Well, my vision is to simplify hiring. That is what I would like to accomplish.

Jiyong Oum: What would be your landscape in three years from now?

Hisayuki Idekoba: Well, my vision, simplify hiring. That is what I would like to accomplish. What it means is that make the manual work easier with technology. This is what I have been saying since acquiring Indeed.

Speaker #1: What it means is that you make manual work easier with technology. This is what I have been saying since acquiring.

Hisayuki Idekoba: What it means is that make the manual work easier with technology. This is what I have been saying since acquiring Indeed. Will the landscape change in three years? Well, it depends on how much AI will evolve. Well, what I really want to accomplish is now achieved with the evolution of AI. I wasn't introducing AI as a tool. However, we have to make an improvement for the matching as a result. We can reduce the undesirable candidate, and that will eliminate the back end process. That is where the automation occurs, and that is quite interesting. The sales company or AI company, before they are entering into this market, because we have eliminated the back end process, I think this is quite the efficient way of operation, and also it is difficult for other company to emulate.

Speaker #1: Indeed . Well , the landscape will change in three years . Well , it depends on how much I will evolve . Well , what I really want to accomplish is now achieved with the evolution of AI .

Jiyong Oum: Will the landscape change in three years?

Hisayuki Idekoba: Well, it depends on how much AI will evolve. Well, what I really want to accomplish is now achieved with the evolution of AI. I wasn't introducing AI as a tool. However, we have to make an improvement for the matching as a result. We can reduce the undesirable candidate, and that will eliminate the back end process. That is where the automation occurs, and that is quite interesting.

Speaker #1: So rather than introducing AI as a tool , however , we have to make an improvement for the matching as a result . So we can reduce the undesirable candidate and that will eliminate the back end process .

Speaker #1: That is where the automation occurs . And that is quite interesting . And the SaaS company or AI company before , and they are entering into this market because we have eliminated the back end process .

Hisayuki Idekoba: The sales company or AI company, before they are entering into this market, because we have eliminated the back end process, I think this is quite the efficient way of operation, and also it is difficult for other company to emulate. If we can expand this kind of operation, then we can expand. Well, if we can increase by tens fold, that will be most interesting.

Speaker #1: I think this is quite , a quite a efficient way of operation . And , and also it is difficult for other company to emulate .

Speaker #1: So if we can expand this kind of operation and then we can expand . But . Well , if we can increase by ten fold , that will be most interesting .

Junichi Arai: If we can expand this kind of operation, then we can expand. Well, if we can increase by tens fold, that will be most interesting. Thank you.

Speaker #1: Thank you

Jiyong Oum: Thank you.

Junichi Arai: Thank you. Next, Nagao-san of BofA Securities, please go ahead. Yes, this is Nagao of BofA. President Idecoba gave us a healthcare client example. I think that was a very well laid out example. The reason I say that is because with hiring automation tools, the people who will be using tools and people who will be eliminated as a result of the introduction of tools are the same. There is a contradiction in this structure. How are you going to further penetrate? I think it's a battle against the speed. It's a race against the speed at the same time. What I would like to ask is that how are you going to enter the automation tool industry? By implementing these tools, won't there be some opposition or resistance from the HR teams of companies? How are you going to overcome such resistance? Please go ahead.

Operator: Thank you. Next, Nagao-san of BofA Securities, please go ahead.

Speaker #2: Thank you Next Nacao sound of B of a securities . Please go ahead . Yes , this is Nagawa of B of A President Ishikawa gave us a health care client example .

Yoshitaka Nagao: Yes, this is Nagao of BofA. President Idecoba gave us a healthcare client example. I think that was a very well laid out example. The reason I say that is because with hiring automation tools, the people who will be using tools and people who will be eliminated as a result of the introduction of tools are the same. There is a contradiction in this structure. How are you going to further penetrate?

Speaker #2: I think that was a very well laid out example. The reason I say that is because, with hiring automation tools, the people who will be using the tools and the people who will be eliminated as a result of the introduction of the tools are the same.

Speaker #2: So, there is a contradiction in this. So, how are you going to further penetrate? I think it's a battle against the speed.

Yoshitaka Nagao: I think it's a battle against the speed. It's a race against the speed at the same time. What I would like to ask is that how are you going to enter the automation tool industry? By implementing these tools, won't there be some opposition or resistance from the HR teams of companies? How are you going to overcome such resistance? Please go ahead.

Speaker #2: It's a race against the speed . At the same time . So what I would like to ask is that how are you going to enter the automation tool industry by implementing these tools ?

Speaker #2: Won't there be some opposition or resistance from the HR teams of companies? How are you going to overcome such resistance? Please go ahead.

Speaker #2: Yes . So I briefly touched upon this , especially for enterprise clients . Cost reduction is not the entry point for us . Rather , we focus on the reduction of the back end processes .

Hisayuki Idekoba: Yes. I briefly touched upon this, especially for enterprise clients. Cost reduction is not the entry point for us. Rather, we focus on the reduction of the back-end processes, the substantial reduction. Maybe for the premium jobs, we can ask clients to trial our services. That's more of the case. In terms of speed, that's where we're seeing much of entry or adoption among enterprise clients. Besides that, I think besides our company, companies that sell AI tools abound, and I think they are following similar patterns in that not just approaching the HR top person, but going after CFOs or COOs or CIOs. Companies that have already launched AI automation projects can be found in large numbers. We approach the top tier, the management layer, and we introduce our tools. This is not something we have done much of in the past.

Speaker #2: The substantial reduction. So maybe for the premium jobs, we can ask clients to trial our services. So that's more of the case.

Speaker #2: So in terms of speed, that's where we're seeing much of the entry or adoption among enterprise clients. And besides that, I think, besides our company, companies that sell AI tools are abound.

Hisayuki Idekoba: Besides that, I think besides our company, companies that sell AI tools abound, and I think they are following similar patterns in that not just approaching the HR top person, but going after CFOs or COOs or CIOs. Companies that have already launched AI automation projects can be found in large numbers. We approach the top tier, the management layer, and we introduce our tools. This is not something we have done much of in the past.

Speaker #2: And I think they are following similar patterns in that they’re not just approaching the HR top person, but going after CFOs or CEOs or CIOs. So companies that have already launched AI automation projects can be found in large numbers.

Speaker #2: So we approach the top tier, the management layer, and we introduce our tools. This is not something we have done much of in the past.

Speaker #2: In the past , we didn't really have conversations with CFOs or CEOs . In many cases . But over the past six months or so , we are seeing more cases in which we approach those officers .

Hisayuki Idekoba: In the past, we didn't really have conversations with CFOs or COOs in many cases. Over the past 6 months or so, we are seeing more cases in which we approach those officers. We do go to events targeting COOs, or we also appear and join various events, including the World Cup this time. We sponsor those events, invite our clients, host dinners, and such, that's something we have started doing. How should I say? For clients as well, HR teams and their clients, they are satisfied that their manual processes have been reduced. Many clients have outsourced these processes, we have not seen such opposition or resistance as expected. Rather than approaching the HR, you are approaching the management layer, I see. Two quick questions. You have a pool of employers, and you screen them.

Speaker #2: So We do go to events targeting CEOs or we also appear and join various events , including the World Cup . This time we sponsor those events , invite our clients , host dinners and such .

Speaker #2: So that's something we have started doing So how should I say For clients as well , HR teams in their clients , they are satisfied that their manual processes have been reduced and many clients have outsourced these processes .

Hisayuki Idekoba: How should I say? For clients as well, HR teams and their clients, they are satisfied that their manual processes have been reduced. Many clients have outsourced these processes, we have not seen such opposition or resistance as expected. Rather than approaching the HR, you are approaching the management layer, I see.

Speaker #2: So we have not seen such opposition or resistance as expected. So rather than approaching HR, you are approaching the management layer.

Speaker #2: I see two quick questions. So, you have a pool of employers and you screen them. And of course, there are various stages in which a paid service could be introduced.

Yoshitaka Nagao: Two quick questions. You have a pool of employers, and you screen them. Of course, there are various stages in which paid services could be introduced. Beyond that, you negotiate terms for the employment, further down the process, there will be the onboarding process. Are you thinking of automating all these different steps in the process and monetizing in the future?

Hisayuki Idekoba: Of course, there are various stages in which paid services could be introduced. Beyond that, you negotiate terms for the employment, further down the process, there will be the onboarding process. Are you thinking of automating all these different steps in the process and monetizing in the future? Of course, we want to try a variety of things, there is a need to, of course, connect various systems, which could slow us down. As I said before, first, we want to introduce candidates to clients, we want to strengthen monetization and speed there first. I believe that will be fastest because with introducing various FTEs and having conversations with customers on those projects, that will be an enormous project. We need to look at the right balance. I hope that answered your question. Thank you.

Speaker #2: And then beyond that , you negotiate the terms for the employment and then a further down the the process there will be the ultimate , the onboarding process .

Speaker #2: Are you thinking of automating all these different steps in the process and monetizing in the future? Of course, we want to try a variety of things, and there is a need to.

Hisayuki Idekoba: Of course, we want to try a variety of things, there is a need to, of course, connect various systems, which could slow us down. As I said before, first, we want to introduce candidates to clients, we want to strengthen monetization and speed there first. I believe that will be fastest because with introducing various FTEs and having conversations with customers on those projects, that will be an enormous project. We need to look at the right balance. I hope that answered your question.

Speaker #2: Of course , connect various systems which could slow us down . So as I said before , first we want to introduce candidates to clients and we want to strengthen monetization and speed their first .

Speaker #2: And I believe that will be the fastest because introducing various Ph.D.s and having conversations with customers on those projects will be an enormous project.

Speaker #2: So, we need to look at the right balance. I hope that answered your question. Thank you.

Yoshitaka Nagao: Thank you.

Speaker #1: Thank the JP Morgan Securities . Yamamura San , please Thank you very much for explanations . Thank you very much for calling me out .

Junichi Arai: Next, the JPMorgan Securities, Yamamura San, please.

Operator: Next, the JPMorgan Securities, Yamamura San, please.

Junko Yamamura: Thank you very much for your explanations. Thank you very much for calling me out. I am Yamamura. Thank you. I would like to ask you one question. Well, this might be a difficult question to answer. Listening to you so far at this point in time, the speed, the productivity, and the qualities, these are the area that you add value. These are the area of value addition, and I understand this is the most important thing. Looking into the further future, with these two horizons, to how much extent can you increase the ARPJ? To how much extent can you increase the number of customers? Well, from the outsiders, I cannot synchronize your vision with this horizon. I feel that there is a limit. Well, the media is entering into the market on top of speed and productivity.

Speaker #1: I am your mama . AM I through ? And thank you I would like to ask you one question . Well , this might be a difficult question to answer .

Speaker #1: So listening to you so far , are point in time . The the speed and the productivity and the quality . These are the areas that you are the value .

Speaker #1: So these are the areas of value addition, and I understand this is the most important thing. But looking further into the future, with deeper horizons, to what extent can you increase the US?

Speaker #1: RPG to how much extent can you increase the number of customers ? Well , from the outsiders , I cannot synchronize your vision with this Horizon , so I feel that there is a limit .

Junko Yamamura: Well, from the outsiders, I cannot synchronize your vision with this horizon. I feel that there is a limit. Well, the media is entering into the market on top of speed and productivity. With AI, what kind of additional value do you think you can add potentially? Otherwise, as you mentioned expansion, with only those factors for several years, still, they are on top of the market. You can explore. This might be a difficult question, but what is your take on this point? Thank you.

Speaker #1: Well , the meter is entering into the market on top of speed and the productivity . But with AI , what kind of additional value do you think you can add a potentially or otherwise ?

Junichi Arai: With AI, what kind of additional value do you think you can add potentially? Otherwise, as you mentioned expansion, with only those factors for several years, still, they are on top of the market. You can explore. This might be a difficult question, but what is your take on this point? Thank you. Well, Hot Pepper Beauty reservation system was developed. That was a typical question I received from which market, which data do you secure? Are there any such kind of market available? The beauty salon do not have such a budget, therefore, you will not be able to tap into such kind of a market when we are working on Jalan. If you reach that level of revenue, unless the other travel agency is bankrupt, I don't think you can achieve that kind of revenue.

Speaker #1: As you mentioned , explained with only those factors for the several years . Still , they are on top of the market . You can explore .

Speaker #1: So, this might be a difficult question, but what is your take on this point? Thank you.

Speaker #3: To

Speaker #1: Well, the Hot Pepper Beauty reservation system was developed. That was a typical question I received from Future Market Data: "Do you secure?"

Hisayuki Idekoba: Well, Hot Pepper Beauty reservation system was developed. That was a typical question I received from which market, which data do you secure? Are there any such kind of market available? The beauty salon do not have such a budget, therefore, you will not be able to tap into such kind of a market when we are working on Jalan. If you reach that level of revenue, unless the other travel agency is bankrupt, I don't think you can achieve that kind of revenue.

Speaker #1: Are there any such kinds of markets available? The beauty salons do not have such a budget. Therefore, you will not be able to tap into that kind of market.

Speaker #1: When we are working on Jalan . So if you reach that level of revenue . Unless there are other travel agencies bankrupt , I don't think you can achieve that kind of revenue in case of Uber in San Francisco , well , 500 million is the size of a taxi market .

Hisayuki Idekoba: In case of Uber in San Francisco, well, JPY 500 million is the size of a taxi market, and unless the market size is growing furthermore, they wouldn't be successful. However, after 8 months, they are very successful. If you can call the taxi much easily, there are more demand. The price and the convenience resulted in the expansion of the market quite easily. What I am trying to say here is that the beauty salon reservation with travel reservation, if we provide the convenience, there will be more demand, there will be more users. We are a product-oriented people, therefore, this is our way of thinking, and if we can use the services quite easily, as I mentioned earlier, in case of food delivery, rather than capturing the market from other area, if we provide the convenience, there will be more demand or more users.

Speaker #1: And unless the market size is growing . Furthermore , you they wouldn't be successful . However , after eight months , they are very successful .

Speaker #1: If you can call the taxi much more easily, there is more demand. So the price and the convenience resulted in the expansion of the market quite easily.

Speaker #1: So what I'm trying to say here is that the beauty salon reservation and travel a reservation , if we provide a convenience , there will be more demand , there will be more users .

Hisayuki Idekoba: What I am trying to say here is that the beauty salon reservation with travel reservation, if we provide the convenience, there will be more demand, there will be more users. We are a product-oriented people, therefore, this is our way of thinking, and if we can use the services quite easily, as I mentioned earlier, in case of food delivery, rather than capturing the market from other area, if we provide the convenience, there will be more demand or more users.

Speaker #1: We are a product oriented people . Therefore , this is our way of thinking and if we can use the services quite easily , as I mentioned earlier , in case of food delivery Rather than capturing the market from other area , if we provide the convenience , there will be a more demand or more users and Well , unconsciously the market has expanded to that extent based on those past experiences .

Hisayuki Idekoba: Well, unconsciously, the market has expanded to that extent. Based on those past experiences, when we acquired Indeed, job board market is JPY 100 billion at the maximum. If you purchase at such a purchase price, what are you going to do? Oh, you will go nowhere. That was the criticism I received. However, if we provide the ease of use of a convenience, to how much extent can we expand the market? Well, such internet technology, there was such an expansive market available. Thinking about the AI potential, if you post a job, we do not get a good effectiveness. However, you ask a question with AI, how about this methodology? In this methodology, unless you increase the hourly rate, you cannot get or attract the candidates, based on those experiences, some customers place the job advertisement.

Speaker #1: When we acquire the . Indeed Bob . Joe market is a 100 billion . At the maximum . If you purchase at such a purchase price , what are you going to do ?

Speaker #1: You will go nowhere . That was the criticism I received . However , if we provide the ease of use of a convenience to .

Speaker #1: How much extent can we expand the market Well , such a internet technology . There was no such an expansive market available . Thinking about the AI potential , if you post a job , then we do not get a good effectiveness .

Hisayuki Idekoba: Well, such internet technology, there was such an expansive market available. Thinking about the AI potential, if you post a job, we do not get a good effectiveness. However, you ask a question with AI, how about this methodology? In this methodology, unless you increase the hourly rate, you cannot get or attract the candidates, based on those experiences, some customers place the job advertisement.

Speaker #1: However , you ask a question with how about this methodology ? In this methodology ? Unless you increase the hourly rate , you cannot get attracted candidates .

Speaker #1: And based on those experiences , some customers place the job . Advertisement . So looking at these example , the customer , I think there are other potential that we can tap into .

Hisayuki Idekoba: Looking at these example customer, I think there are other potential that we can tap into. Well, finance people may think I am stupid, however, from the viewpoint of person with product innovation, this is where I would like to bet on. Well, this answer is not appropriate. I will be scolded. Well, that's okay. As I mentioned earlier, with a great matching and hire-ready candidate, if one person is provided cost per hire or the intermediary services, I think we can, little by little, capture this market. Idekoba San, looking based on your experiences, MMT, and also Indeed, beyond that, you have a sense of excitement, and that is the sentiment of running the company. 30% growth of JPY 1.5 trillion size businesses. How to put it? It will be difficult to make a precise calculation as to which market we are capturing.

Speaker #1: Well , finance people may think I am a stupid . However , from the view point of view , soon with the product innovation and this is where I would like to bet on .

Speaker #1: Well , this answer is not appropriate . I will be scolded . Well that's okay As I mentioned earlier , with a great matching and hiring a candidate .

Speaker #1: If one person is provided cost for hire or the intermediary services, I think we can, little by little, capture this market.

Speaker #1: So, in looking, based on your experiences, Aman M, and also indeed beyond that, you have a sense of excitement, and that is the sentiment of running the company.

Junko Yamamura: Idekoba San, looking based on your experiences, MMT, and also Indeed, beyond that, you have a sense of excitement, and that is the sentiment of running the company. 30% growth of JPY 1.5 trillion size businesses. How to put it?

Speaker #1: The . So 30% growth of ¥1.5 trillion . Size of businesses . So how to put it So it would be difficult to make a precise as to a .

Hisayuki Idekoba: It will be difficult to make a precise calculation as to which market we are capturing.

Speaker #1: Which market are we capturing? Well, I look forward to your business. Thank you.

Junko Yamamura: Well, I look forward to your business. Thank you.

Speaker #2: Thank you . We see many more . Hands up . But in the interest of time , we would like to wrap up our apologies .

Hisayuki Idekoba: Thank you. We see many more hands up, but in the interest of time, we would like to wrap up. Our apologies. No, my explanations were poor. My apologies. Thank you very much. We would like to conclude the earnings call at this time. Thank you very much.

Operator: Thank you. We see many more hands up, but in the interest of time, we would like to wrap up. Our apologies. No, my explanations were poor. My apologies. Thank you very much. We would like to conclude the earnings call at this time. Thank you very much.

Speaker #2: Now, my explanations were poor. My apologies. Thank you very much. We would like to conclude the earnings call at this time.

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Q1 2026 Recruit Holdings Co Ltd Earnings Call

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