Monster Worldwide Inc. (
Q3 2010 Earnings Call Transcript
October 28, 2010 5:00 pm ET
Lori Chaitman – VP, IR
Sal Iannuzzi – Chairman, President & CEO
Tim Yates – EVP & CFO
James Langrock – SVP, Finance & Chief Accounting Officer
Mark Stoever – EVP, Corporate Development & Strategic Alliances
Darko Dejanovic – EVP, Global Chief Information Officer & Head of Product
Lise Poulos – EVP & Chief Administrative Officer
John Blackledge – Credit Suisse
Craig Huber – Access 342
Tobey Sommer – SunTrust Robinson
Doug Arthur – Evercore
Glenn Greene – Oppenheimer
Mark Marcon – Robert W. Baird
John Janedis – UBS
Tim McHugh – William Blair
Previous Statements by MWW
» Monster Worldwide Inc. Q2 2010 Earnings Call Transcript
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» Monster Worldwide, Inc. Q3 2009 Earnings Call Transcript
Good afternoon. My name is Tiffany, and I will be your conference operator today. At this time, I’d like to welcome everyone to the Monster Worldwide quarter three 2010 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator instructions) Please limit your questions to one question per caller.
At this time, I’d like to turn today’s conference over to Ms. Lori Chaitman, Vice President of IR. Thank you, ma’am, you may begin your conference.
Good evening and thank you for joining us on Monster Worldwide’s third quarter 2010 conference call.
We will have formal remarks from Sal Iannuzzi, Chairman, President and Chief Executive Officer; and Tim Yates, Executive Vice President and Chief Financial Officer. In addition to Sal and Tim, several members of our executive management team are available to answer your questions during the Q&A part of the call. They are Darko Dejanovic, CIO and Head of Product; Ted Gilvar, Chief Marketing Officer; James Langrock, Chief Accounting Officer; Michael Miller, General Counsel; Art O’Donnell, Head of Global Service; Kathy Paladino, Head of North American Sales; Lise Poulos, Chief Administrative Officer; and Mark Stoever, Corporate Development and Strategic Alliances.
Before we begin, I’d like to remind you that except for historical information, the statements made during this call constitute forward-looking statements under applicable securities laws. Such forward-looking statements involve certain risks and uncertainties including statements regarding the company’s strategic direction, prospects and future results.
Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition and the other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission.
With that, I’d like to turn the call over to Sal for his comments.
Thank you, Lori. Good evening and thank you all for joining us for our third quarter conference call. During the quarter we continued to build momentum with strong bookings growth across all geographies and within our major vertical markets.
My comments will focus on Monster alone, unless otherwise noted. Tim will comment on Monster and Hotjobs in the quarter we reported. Bookings of $229 million a year-over-year increase of 23% exceeded the high end of our guidance, despite the negative currency impact, in line revenue of $223 million, in line earnings per share of $0.01; $300 million in deferred revenue, a sequential increase of $20 million.
Our ability to achieve these financial results is based on two factors. First, despite the continuing uncertainty of the global economy, there have been signs of recovery.
Second, our customers are recognizing the effectiveness of our enhanced portfolio of recruitment solutions. We believe that our global market reach combined with our value-added solutions are unrivaled in the marketplace and are fueling a strong bookings growth.
I want to talk first about our global reach, why it is so significant, and how we can be enhanced through the Yahoo! traffic deal and Hotjobs acquisition.
Next, I’ll talk about our enhanced service offering highlighting, Power Resume Search, and our Career Ad Network. And then I will discuss the performance benefits when you combine scale with the precision of our innovative products. Lastly, I will wrap-up with comments on the global economy and build us on our expected future performance.
Let me say a few words about our global reach. Including incremental traffic resulting from the Yahoo! traffic deal, more than 47 million people now visit Monster and Monster-partnered sites on a monthly basis.
In our Career Ad Network, we are able to reach approximately 117 million active and passive job seekers on a monthly basis. With HotJobs, we now have over 1,000 newspaper alliances with local presence in all 50 states.
These alliances are important to our customers as they significantly expand Monster’s local reach. Monster-owns local language sites in 56 countries and has the number one or two market share position in most of the developed markets. We have recently launched a Monster site in Brazil and are encouraged by the early results.
One of the primary objectives of the HotJob and Yahoo! transaction was to provide us additional seeker and client scale in the U.S. While we have only been operating together for a short time, the integration is going well and we are very pleased with the performance and commitments of the HotJobs team.
Tim will discuss in his comments that the financial results are consistent with our expectation. We are on track to launch the integrated Web site in the first quarter of 2011 and we are accelerating integration of our sales team, so they’ll all try and fully understand the powerful value proposition which the combination of HotJobs and Monster provide.