RealTime IT News

Tech Downturn a Silver Lining at Monster.com

Monster.com, the flagship brand of TMP Worldwide , said it has received a record daily number of resume submissions so far in January, and added that 36,646 resumes were submitted on Jan. 9 alone.

Proving that there is always a silver lining for somebody even when many tech workers are getting pink slips, resume postings for the first 11 days in January 2001 are up 51 percent versus the first 11 days in December 2000, Monster.com said. The site also said that it has reached the 12 million job seeker accounts milestone. About 450,000 job postings are available on the site.

Goldman, Sachs analysts like the numbers, and said in a research bulletin to clients that "we remain highly confident in our estimates" for the company. For the nine months ended last Sept. 30, TMP revenues increased 41 percent year over year to $900.6 million. Net income totalled $36.6 million, up from $19,000.

Monster.com said that December 2000 Media Metrix results show that the site has 53.8 percent of career eyeball minutes.

Monster.com achieved a reach of 4.9 percent, an average of 28.5 pages viewed per user, and 3.9 million monthly unique visitors for December 2000. GS pointed out that the December reach figure of 4.9 percent is down from over 6 percent throughout most of 2000, but up from 3.4 percent last December. Job-seeking traditionally slackens in December.

TMP stock was trading at $57.50 at midmorning, down $2.31. It's 52-week high is $94.68; the low is $33. GS said that "if TMP's stock declines on expected seasonal softness in Media Metrix traffic data, we would consider it a buying opportunity."

"We have kicked January off in high gear, beginning with several innovative marketing initiatives, including The Monster Show and a national radio tour," said Jeff Taylor, CEO of Monster.com. "We close out the month debuting our new advertising campaign comprised of five new ads, two of which will have prominent placement during the Super Bowl."

On Monday TMP Worldwide Inc., which also owns the world's biggest Yellow Pages advertising agency, said it acquired closely held recruiter Adept Inc. in Massachusetts to gain clients in the Northeast. Financial terms were not disclosed. Adept specializes in information- technology jobs.

Goldman, Sachs, went on to say: Job site says January resumes up 51 percent over December 2000, company reports 12 million job seeker accounts."Investors have clearly been anxious about the impact of the slowing economy and weak capital markets activities on Monster.com's and TMP's results. While TMP is clearly not immune to a severe contraction in demand for labor, the recent pressures have had two key positive effects for the company: (1) several small e-cruiting competitors have retrenched or closed or will do so, allowing Monster.com to strengthen its leadership position; and (2) the number of job seekers visiting Monster.com and submitting their resumes has already ticked up, also strengthening Monster.com's leadership position, increasing the value of both the job listing and resume database access for recruiters.