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.
