Last Thursday, Monster Worldwide held its Q2 earnings call, reporting a quarterly loss as global job markets outweighed the benefits of cost cuts.
Overall, Monster saw a loss from continuing operations of about $1 million, or 1 cent per share, during Q2, compared to income from continuing operations of $19 million, or 15 cents per share, last year.
Despite the loss, the company’s results beat predictions from Wall Street, helped by lower spending on marketing. Excluding items, Monster earned 3 cents per share, which is 2 cents more than analysts expected.
The company reduced its marketing spending during the quarter, allowing it to reduce operating expenses by 15 percent when compared to Q1. Revenue declined by 37 percent to $223 million, just below the Wall Street forecasts for sales of $224 million, and a 37 percent decrease from last year’s revenue of $354 million.
“Despite the challenging operating environment, we continue to invest in product innovation, technology, new verticals, global reach and sales force expansion, while at the same time successfully reducing operating expense and lowering our cost basis,” CEO Sal Iannuzzi said. “We are confident that these initiatives, combined with the powerful Monster brand and our strong balance sheet, will capture global market share and provide a solid base for future long term growth and profitability.”
In addition, Iannuzzi said he had no comment on whether or not Monster will bid for Yahoo! HotJobs, which the company has said it is looking to sell.
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August 4th, 2009 at 12:29 pm
I may sound like a hater, but I would love to see this company go down. Their practices amongst the sales team are horrible. Whatever they get, they deserve.
August 11th, 2009 at 4:16 pm
My company used Monster for years. Our entire spend is with CareerBuilder and that’s how the industry is moving right now. I’d never buy Monster again.
-Sue