Reinventing Seek's Long-Term Growth Strategy
SYDNEY - Seek, the Australian job advertiser, has experienced a weak first-half performance, leading to a significant decline in its shares. However, Chief Executive Ian Narev is determined to continue reinvesting in pursuit of the company's longer-term revenue target.
During the December half, Seek reported revenue of AUD 596.8 million, which fell short of market expectations and was lower than the previous year's AUD 626.7 million. As a result, the company revised its annual guidance for fiscal 2024 and reduced its dividend.
To mitigate the impact of the decline in shares, Narev emphasized the importance of tight control over operating expenses while maintaining a focus on reinvestment for long-term growth. Seek's ambitious goal is to achieve annual revenue of AUD 2 billion by fiscal 2028.
Narev stated, "We're committed to reaching our two billion-dollar revenue target, and our strategy won't change. However, in the current environment, we will exercise caution and closely monitor discretionary spending."
While lowering its full-year outlook, Seek attributed the underperformance to lower-than-expected ad volumes in the first half. Narev expressed confidence that challenging macro conditions, rather than internal factors, were responsible for the weaker results.
After experiencing a surge in ad volumes following the relaxation of Covid-related restrictions on movement and migration, Seek's volumes have now normalized to levels similar to fiscal 2019. Narev noted that this level of activity was indicative of a stable economy rather than a negative downturn.
Seek remains committed to its long-term growth strategy, striving to navigate through current challenges and emerge stronger. With a focus on reinvestment and prudent spending, the company aims to achieve its revenue target and unlock further success in the future.
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