Monster Revenue Falls By A Third
May 4, 2009 by Emma Sorensen
Monster’s first quarter 2009 results show the company is feeling the effect of the global downturn, with total revenue declining by 31% to $254 million, compared with $366 million in the first quarter of 2008.
Total staff layoffs during the period equate to about 10 percent of the workforce. 300 staff were lost in China and 400 staff were lost in other regions, alongside some pay and incentive freezes. Reuters reported that year-to-date, the company reduced costs by $52 million, which would translate into $200 million if the trend continued for the balance of 2009.
In a statement issued by the company, Sal Iannuzzi, chairman, president and chief executive officer of Monster, said:
“As anticipated, the challenging global economy continued to severely impact customer demand during the first quarter of 2009. We were able to leverage the power of our brand to drive awareness and higher levels of user engagement following our new product launch in early January. Our strict and disciplined approach to cost containment enabled us to preserve our liquidity position, maintain necessary investments and report a break-even quarter.
While the near-term environment continues to be challenging, we believe that Monster is uniquely qualified to serve its customers on a global basis and achieve market share gains. Our global industry leading position, powerful brand and deep financial resources are unparalleled in the online recruitment industry and provide the foundation for long-term future growth when the economy rebounds.”
The company said that 43% of its revenue was generated outside the United States and total revenue was negatively impacted by $27 million from unfavorable foreign exchange rates.
Careers non-GAAP revenue decreased 34% to $224 million as North America generated revenue of $119 million, compared with $184 million in the prior year period. International non-GAAP revenue was $105 million, a 32% decline over the prior year period, or a 22% decline excluding currency and the contribution from ChinaHR. Internet Advertising & Fees revenue increased 6% to $32 million over last year’s first quarter.
Monster ended the first quarter of 2009 with total available liquidity of $501 million and the Company had net cash and marketable securities of $247 million, compared with $259 million at the end of the 2008 fourth quarter.
During the quarter, the Company borrowed $199 million under its revolving credit facilities, and currently has $254 million classified as total debt on the consolidated balance sheet. Cash flow from operating activities was $14 million, compared to $78 million generated in the prior year period.
Complete results including a webcast are available at Monster Worldwide.
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[...] when Monster’s revenue has declined, with a 37 percent drop in the second quarter of 2009, a 31 percent drop in the first quarter of 2009, and a 16 percent decline in the last quarter of 2008,” per [...]