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· Posted on
February 21, 2024

Seek's share price falls faster than a candidate lying about their skills on a resume

Seek released its half-year results and saw paid ads on the platform drop by 20% over the last 6 months.

What's the key learning?

  • While Seek's revenue jumped 2% in South East Asia, it wasn’t enough to offset the weakness in job ads in the Australian market.
  • When the economy goes through contractions, companies tend to reduce hiring or freeze recruitment altogether.
  • Despite doing "more with less", the macro economy is pulling Seek share's price down with it.

👉 Background: Seek is the online job marketplace for whenever you're looking for a new job, or to try and snoop on the likely salary of your CEO (it's $300,000 by the way). While Seek was founded in Australia, it also has job marketplaces in Hong Kong, South East Asia, Brazil, and Mexico.

👉 What happened: Now, Seek just released its half year results and its Australian business was its biggest worry. It saw paid ads on the platform drop by 20% over the last 6 months. And as a result, its overall revenue was down 5% compared to the same time period last year.

👉 What else: While its revenue jumped 2% in South East Asia, it wasn’t enough to offset the weakness in job ads in the Australian market.

What's the key learning?

💡When economies sneeze, employment marketplaces and online job boardscatch a cold. In Australia, we’ve seen the unemployment rate increase steadily from 3.5% in February 2023 to over 3.8% in December 2023.

💡When the economy goes through contractions, companies tend to reduce hiring or freeze recruitment altogether. The flow-on effect is that it leads to a decrease in job ads and revenues for platforms like Seek.

💡So despite doing "more with less", the macro economy is pulling Seek share's price down with it.

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