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Indeed was founded in 2004. They have experienced a great amount of growth in the last several years. Although the pandemic has put a large dent in their Q1 revenues, Indeed remains the top online job search tool and has over 440 million unique visitors per month. Over 3,000,000 companies use Indeed. They plan on building upon this success by expanding their recruitment market efforts in the future.

Overview

  • Indeed is a job search portal that is available in more than 50 countries and 28 languages that uses a meta search engine for job listings. The job listings are aggregated from thousands of company website, job boards, staffing firm websites, and direct job postings on the platform.
  • They currently have 9,500 employees. In 2010, there were only 130 employees.
  • Their business model is a pay for performance model. This ensures that their incentives are aligned with their clients.
  • Mission Statement: As the world’s number 1 job site, our mission is to help people get jobs. We need talented, passionate people working together to make this happen.
  • Indeed was founded in 2004, by Paul Forster and Rony Kahan.
  • Andrew Hudson, the CTO of Indeed, wanted to ensure that no one forgot about their philosophy of putting the job seeking first. To remind everyone, he ordered an orange chair to be put in the meeting room so that the job seeker would always have a seat at the table. “Since then, the orange chairs have kept us focused every day on putting job seekers first, and we’ve grown to help over 250 million unique visitors per month find jobs”, according to Indeed.

Key Personnel

Headquarters

  • Indeed is headquartered in Austin, Texas.
  • There are offices located in Austin, Dublin, London, San Mateo, New York and Stamford. Outside of the US, Indeed has offices located in Amsterdam, Dublin, Düsseldorf, Hyderabad, London, Paris, Sydney, Tokyo, Zürich, and Toronto. Overall, there are offices in 29 cities in 14 countries.

Revenue

  • Recruit’s 2019 Revenue- $22.06 Billion
  • Indeed and Glassdoor make up Recruit’s HR Technology segment. In 2019, their combined revenue was $3.11 billion, a 47.4% YOY growth. They do not break this down by separate companies, but Indeed makes up the majority of this revenue.
  • Indeed has enjoyed multiple years of rising revenue. In 2014, it was $434 million. In 2015, they made $777 million. In 2016, they made $1.229 billion.

Effects of Pandemic

  • Indeed made several changes to their website due to the pandemic. They now mark jobs that are actively hiring, remote possibilities, and the ability to add #readytowork to a resume, indicating the job seeker has lost their job due to the pandemic.
  • Indeed has a COVID Resource page for applicantsand a separate page for employers. Topics covered are supporting parents, mental health, attracting talent, taxes, furloughs, companies that are hiring now, free webinars for applicants, how to best use the site during COVID-19, and resources by state.
  • Recruit issued their Q1 Financial Highlights recently. Revenue is down 20% YoY from 594.4 billion yen in Q1 2019 to 475.4 billion yen in Q1 2020. The adjusted EBITDA is down 38.8% YoY. Their operating income is down by 62.6% YoY.
  • Specifically, in HR Technology, the segment that Indeed operates, revenue decreased by 25.8%. This was driven by a decrease in sponsored job advertising and a reduced demand for recruiting solutions. Adjusted EBITDA decrease be 59.4% YoY, due to the decline in revenue. Q1 revenue was $689 million.
  • Due to the uncertainty and rapidly evolving global conditions, they did not make any predictions, since they felt it could not be done reliably. They fully expect the current economic conditions to have a “significant adverse impact” on Q2 financial performance and beyond.
  • In July, the revenue exceeded that in June, but it still had decreased 15% YoY, which was slightly worse than in June. HR Technology did slightly better with a 7% reduction YoY.
  • Q1 Financials
  • The pandemic has had devastating effects on employment rates, so it is understandable that it is a chief driver of the market. With US still battling the virus, and no end date in sight, this has changed not only the number of jobs, but how people look for jobs.

Impact of COVID10

Market Share

  • Slintel states that Indeed has a 20.82% market share, with 21,433 companies using their services.
  • Another analysis broke down their numbers further to come up with 31% of all hires. This number makes more sense and is line with the market share shared below.
  • According to SilkRoad, Indeed delivered 65% of all hires made in the United States from online sources in 2016, which represents a further widening of an already commanding lead.

Indeed hiringIndeed hiring

Funding

  • Indeed has had one funding round. In 2005, they raised $5 million in a Series A round.
  • They are funded by three investors. Union Square Ventures, and The New York Times are the most recent investors.

Mergers & Acquisitions

  • Indeed was acquired by Recruit on October 1, 2012.
  • Indeed has acquired 5 different organizations. Their most recent acquisition was ClickIQ on July 12, 2019. Syft was acquired in earlier in 2019, followed by Resume.com in 2018, Interviewed in 2017, and MoBolt UK in 2014.
  • They invested in Upshift on March 3, 2020.

Business Segments

  • Indeed has two business segments, one for job seekers, and one for employers. These segment and their offerings, are explained below.

Product Offerings

Job Seekers

  • Job seekers have multiple ways to search, can save their searches, and can pick up where they left off. They can also upload their resume, read company reviews from Glassdoor, and find salary comparisons. This is a free service.
  • They can also locate the top schools and certifications in their area.

Employer Job Postings

Employers can add screening questions and have access to a candidate dashboard. They also have access to an employer community.

  • Employers can boost posts for $5 per day. They state this is 3.5 times more likely to work.
  • They can also pay for targeted ads to get more responses. This feature is charged per application received. The employers may set a budget with this feature.
  • Employers can set up company pages.
  • Employers can qualify to be featured employers based on their spending. This gives them increased visibility, hiring reports, and a premium company page.
  • In 2016, Indeed Hire was launched, to meet the needs of businesses that do not have to time to review “hundreds of resumes”. Indeed uses machine learning to deal with many of the manual steps in this process. This is a pay per hire, full series recruiting solution.
  • In 2018, Assessments was launched, a comprehensive library of assessments to help employers screen candidates.

Indeed Resume

  • Indeed Resume lets employers search through millions of resumes.
  • Employers can use this as a free service with limited functionality. They can not contact candidates with the free service.
  • To be able to contact candidates a subscription must be purchased.
  • Plans: Standard- $100 monthly with 30 contacts. The Pro plan is $250 monthly, has 100 contacts, and adds insights for employers.

Indeed Hire

  • Indeed Hire is the recruiting arm of the company. This is a full service recruiting answer. Indeed delivers the candidates to the employer that fit their needs.
  • The employer only pays when they make a hire. The fee is 10% of the candidate’s starting salary.
  • They will also schedule interviews, and broker salary negotiations.
  • They published a 16-page white paper on what they have learned through the recruiting lab, experiments and studies ran, and how their product benefits employers entitled Balancing the Art and Science of Recruiting.
EVERYTHING YOU NEED TO KNOW ABOUT INDEED: COMPANY PROFILE

Indeed Mobile Recruiting

  • Indeed offers a simplified process that is mobile optimized, considering that 75% of job search traffic comes from mobile.
  • No pricing information was shared.

Indeed Apply

  • Indeed Apply uses an integrated Applicant Tracking System (ATS) so job seekers can find and apply for jobs.
  • Indeed works with multiple ATS to optimize the hiring process. Some of the main ATS they work with are Applicant Pro, Workable, Wizehire, ApplicantStack, Talenteca, and Breezy. The full list may be viewed here.
  • Jobs posted this way receive up to four times more applicants.
  • No pricing information was shared.

Indeed Hiring Events

  • Indeed Hiring Events are a turn key solution for high volume hiring. These events can be in person or held virtually with the virtual interview platform.
  • The employer can post their event, post screening questions, time slots, communicate with candidates, interview and hire during the events.
  • There have been 30,000 hiring events to date, in 3,500 cities, with over 4 millions RSVPs.
  • No pricing information was shared.
  • Using Indeed Hire, on average, results in six times more hires per recruiter.

Indeed IQ

  • Indeed IQ balances spending in real time to deliver applications that fit the needs of the employer.
  • This is an automated process that offers campaign management.
  • The dashboard provides analytics and insights into how a campaign is doing. They also provide recommendations for roles that are harder to fill.
  • Avis Budget Group was able to generate 521 application for a job in 60 days. Maria Mallaband Care Group reduced their cost per application by 52%.
  • No pricing information was shared.

Indeed Assessments

Indeed Hiring Lab

  • The Hiring Lab is an international team of economists that provide insights on the global labor market.

Current Business Strategies

  • Recruit Group, the parent company of Indeed, is aiming to become a global leader in the HR matching market.
  • Currently, they are investing in sales and market activities to acquire new individual users and enterprise clients.
  • They are also investing in product enhancements to increase user and client engagement.
  • The company states they must focus on improving the quality of their services, not just the number of people they serve.
  • They are currently focusing on algorithms, making sure they do not replicate patterns of discrimination, a known liability of AI. For example, women and underrepresented minorities not being referred for jobs that are unusual for them.
  • They expect to use capital for strategic acquisitions that will help them realize their goals. The could possibly consider “external financing through borrowings for acquisitions as needed, provided we ensure our financial soundness is maintained”.
  • “Based on the capital market environment and financial outlook, we may consider implementing a share repurchase program, as necessary, after meeting the above-mentioned funding needs.”

HR Techonology Specific Strategies

  • Continue to expand existing online job and advertising services.
  • Utilize technology and automation to simplify the job search and lower the cost per hire for employers.
  • Improve the efficiency by leveraging industry expertise and through collaborations with the Media & Solutions, and Staffing segments.
  • Maintain reduced risk by using Risk Management Committees that report to Recruit Group. This makes sure that the highest levels of the company are made aware of potential issues in advance, resulting in the prioritization of preventative actions. This also applies to all new acquisitions. They must obtain permissions for certain high risk areas, report on safeguards and training, and track their activities through reporting.

Future Business Strategies

  • With their core business being online job advertising, Recruit wants to get into the recruitment market, as it is significantly larger. They see a “huge opportunity to disrupt this market and deliver a better solution to job seekers and employers”.

Partnerships

  • Through a partnership with Goodwill, Indeed has committed to helping one million job seekers that are facing challenges to find employment by 2024. They are offering online assessments, event management, and training tools to Goodwill job seekers.
  • Through a partnership with the Irish Olympic team for Tokyo 2020, Indeed will collaborate and create a program of workshops mentoring, and job placements for athletes to help them manage their careers.
  • Indeed has several “certified recruitment partners” that may be viewed here.

Key Performance Indicators

  • Over 250 million monthly unique users.
  • Over 150 million resumes.
  • Over 3,000,000 companies use Indeed.
  • According to comScore they are the #1 job site worldwide.
  • 55% response rate.
  • #1 external source of hiring according to 2018 SkillRoad Tech Source of Hire Report- 2018.

Website Statistics

  • They have had over 440 million website visits in the last 30 days. The average duration is 7 minutes and 36 seconds. They visit 7.38 pages per visit.
  • Their bounce rate is 34.55%.
  • SimilarWeb ranks Indeed number one in their category, which is jobs and employment.
  • Historically, the website has enjoyed very successful growth. In 2009, they averaged 15 million unique monthly visitors, in 2010 the number grew to 26 million, in 2011 it was 45 million, in 2012 it was 63 million, in 2013 it was 105 million, and in 2014 it was 142 million.

App Statistics

  • Their app has been downloaded 2,499,754 times in the last 30 days. This is a monthly download growth of 13.24%.

Media Spend Insights

  • Media Radar states that they spend over $100 million yearly. This website only provides very general spends like, over a million, ten million, etc.
  • Their digital market strategy is focused on direct landings to their site, followed by searching. (46.14% and 41.16%). Only 0.08% of their traffic is from display advertising.

Marketing Campaigns

  • Since there was little information on their media spend, research was conducted to locate their recent marketing campaigns.
  • 2017– “Search for Greatness” campaign that dealt with racism, ageism, and sexism.
  • 2018– 4 new commercials that were aired as stories to set themselves as a career platform and not just a search engine for jobs.
  • 2019- They advertised on 13 podcasts including the ESPN Stephen A. Smith Show, Ten Percent Happier, and This American Life. They also advertised on Snapchat.
  • 2020– They have run ads in Harvard Business Review, Fox Sports, and MSN.com. They also ran an Oscar Ad on the Moon landing. The concept was great moments are the work of many.
  • In the last 30 days they have run 6,943 ads on TV.
  • A Google Doc has been created that shares digital advertising, YouTube advertising, and relevant screenshots of television advertising.

Press Releases/Blog

  • All press releases may be viewed here.
  • Their blog may be viewed here.
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