RealTime IT News

Headhunter.net: Getting the Job Done

Even though the economy is slowing and the pink slips are piling-up at dot-coms, the fact remains that the labor market is still very tight. Many key high-tech jobs remain unfilled. In our ultra-competitive global marketplace, successful companies need talent - and lots of it.

Despite this, online employment sites have run into trouble. Take a look at Headhunter.net . The 52-week range is $7-3/4 to $26-1/8. The market capitalization is only $86 million. However, this may be a value - an opportunity.

Critical to job sites is an easy-to-use interface. Headhunter.net's new design features an easy to navigate channel structure. The five channels -- based on the most popular searches from users -- include Sales and Marketing, Accounting and Finance, InformationTechnology, Engineering and Customer Service. These channels are based on the most popular searches from users. What's more, the site is easier for employers. For example, there is a real-time Job Stats area, which helps employers track the performance of their postings.

It was in October 1995 that Warren Bare founded Headhunter.net, as he pursued an advertising-based revenue model. "It was very effective in building a large customer base," says Craig Stamm, the VP of Corporate Development. However, in 1999, as the company went public, the revenue model changed - capitalizing on the user base. That is, Headhunter.net started to charge its corporate customers.

It definitely had an impact. In the first quarter of 2000, the company had revenues of $6.4 million, which was up 673% from the same period a year ago. The sequential growth rate was 62%. As for losses, they were $5.1 million.

In all, Headhunter.net has a customer base of 9,000, which is up from 5,800 at the end of last year. The average revenue per customer increased 30% this year.

While the company has shown strong organic growth, there will also be growth from mergers and acquisitions. For example, Headhunter.net recently purchased CareerMosaic.com. The combination will make Headhunter.net the second largest online recruiting site. There will be more than 250,000 job posting, 450,000 resumes and 7 million visitors per month.

So far, Headhunter.net has been completely focused on the U.S. But with the CareerMosaic deal, Headhunter.net will now have overseas expansion.

Expect similar deals in the future. According to Stamm, the company is focused on "getting big and getting big fast." But the company is also watchful of burn-rates. "We are on a clear path to profitability," says Stamm.