Monster Third Quarter Earnings
I was listening to Monster World Wide Third Quarter Earnings Call last night. I had a couple of thoughts from the call. They announced that they expect bookings and revenue will increase by 20% to 25% in 2011 but the increase will not be driven by price increases. Sal also announced that 80% of that increase will come from the Monster team and 20% from the HotJobs team. So that begs a question from me, is the increase due to a reduction in discounts or through a higher sale of job postings and resume database. Probably a combination of both.
If however, you assume that they will sell more products then is Monster expecting to steal share or are they expecting the economy to turnaround. I believe that they must assume that the economy will be picking up between 2% and 5% in 2011. It has long been assumed that the fortune of the leading job board are tied very closely to the health of the economy. As a result, I believe that Monster is betting that the economy has turned the corner and will be on the upswing next year. Let's hope that they are right.
Comments