Monster Worldwide, Inc has reported financial results for the second quarter and six months
Monster Worldwide, Inc has reported financial results for the second quarter and six months ended June 30, 2011.
Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, "We are pleased with our financial performance and solid execution in the second quarter. Bookings in our core careers business increased 30% year over year, despite a challenging macro environment. This strong performance is a testament to the breadth of our product portfolio, global scale and large seeker audience. We delivered on our commitment to improve profitability while remaining focused on product innovation. In the first six months of the year, the increase in operating income was equivalent to approximately 50% of the increase in revenue.
"Innovation is fundamental to our growth strategy as demonstrated by the recent launch of two new offerings - BeKnown(TM), our professional networking application on Facebook, and SeeMore (TM), the market's first cloud-based semantic search and analytics platform for managing companies' resume databases. These offerings, combined with our portfolio of advanced recruitment products, positions Monster well for future growth," continued Iannuzzi.
Second Quarter Results
Bookings, which represent the dollar value of contractual orders received, and are considered by the Company to be a key indicator of future revenues, increased 26% to $262 million compared to $208 million reported in the second quarter 2010. On a year over year basis, currency translation had a $12 million positive impact on bookings in the second quarter. Historical data on bookings for prior quarters is available in the Company's supplemental financial information.
Revenue of $270 million increased 25% from $215 million in the second quarter 2010. On a year over year basis, currency translation had an $11 million positive impact on revenue in the second quarter.
Total Careers revenue was $236 million, an increase of 28%, compared to $184 million in the second quarter 2010. Careers-North America revenue was $123 million, an increase of 26% compared to $97 million in the second quarter 2010. Careers-International revenue grew 31% to $113 million compared with $87 million in the prior year period.
Internet Advertising & Fees (IAF) revenue was $34 million, an increase of 8% compared to $31 million in the second quarter 2010. Due to the lack of profitability over the last several quarters in IAF's arbitrage lead generation business, and in light of the promulgation of new regulations applicable to the Company's customers in the for-profit education market, the Company has decided to no longer engage in this portion of the IAF segment. This decision will enable the Company to focus on display advertising and lead generation derived from the Company's own sites, the remaining businesses within the IAF segment. The Company's arbitrage lead generation business contributed approximately $11 million in revenue to the total IAF segment in the second quarter 2011 and was essentially break-even on an operating basis.
Operating expenses of $253 million compares to $260 million in the first quarter 2011 or essentially unchanged on a non-GAAP basis. This compares to $219 million in the second quarter 2010, a 15% year over year increase primarily related to a $9 million negative impact from foreign currency translation and the HotJobs acquisition.
Net income for the second quarter 2011 was $11 million, or $0.09 per share. This compares to a net loss of $3.0 million, or $0.02 loss per share, in the second quarter 2010, which included $3.8 million of pre-tax charges or $0.02 per share net of tax. These pre-tax charges are fully described in the "Notes Regarding the Use of Non-GAAP Financial Measures" and included in the reconciliation to the GAAP measure in the accompanying tables.
Cash and cash equivalents were $199 million as of June 30, 2011 compared to $163 million as of December 31, 2010. Monster Worldwide's deferred revenue balance as of June 30, 2011 was $383 million compared to $280 million as of June 30, 2010.
Six Months Results
Monster Worldwide reported total revenue of $531 million for the first six months ended June 30, 2011 compared to $430 million in the same period last year, a 23% increase. Monster Careers revenue increased 27% to $464 million compared with $366 million in the 2010 period. Internet Advertising & Fees reported revenue of $67 million compared to $64 million in the prior year period. The Company reported earnings of $11 million, or $0.09 per share, compared to a loss of $27 million, or $0.23 loss per share, in the prior period.