Monster Worldwide reports Q2 2014 results
Second Quarter Highlights:
o Revenue of $194.4 Million Careers – North America Revenue Returns to Year-Over-Year Growth
o Cash Flow From Operations of $25 Million
o EBITDA of $26 Million Careers – North America EBITDA Margin of 25%
o Non-GAAP EPS of $0.08 Break-Even on a GAAP Basis
o Repurchased 2 Million Shares of Common Stock in the Second Quarter Totaling $12 Million Brings Total Repurchases to 25% of Shares Outstanding Since Q2 2013
• Significant Progress on Implementation of New “All the Jobs, All the People” Business Strategy:
o July 1 Commercial Launch of New Products in North America:
? TalentBin® by Monster: Provides Customers Access to Over 120 Million Social Profiles
? Monster Twitter Cards: Extends Monster Reach Across Broad Social Audiences
? Talent CRM: Self Service Campaign and Messaging Platform for Recruiters
o 3 Million Job Postings Currently Aggregated on Monster Network
o North American and European Sales Force Realigned To Maximize Penetration of New Products
“We are making significant progress on our new strategy to transform our business around our three Strategic Pillars of Reach, Connections and Solutions,” said Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide. “In the second quarter, we realigned our North American and European sales force to support our new product strategy and ensure the breadth and depth of our new product offerings will be fully utilized by our global customers. On July 1st, we implemented the first stage of our transformation by commercially introducing three exciting new products in North America: TalentBin by Monster, Monster Twitter Cards and Talent CRM and the initial reception by our customers has been strong. We will continue to work diligently to introduce new products in North America and Europe over the next few quarters and are confident that our new strategy will drive significant growth and profitability at Monster over the long term.”
Second Quarter 2014 Results
Total revenue of $194 million was down 3% compared to the second quarter of 2013. Revenue from the Company’s Careers - North America operations increased 1% on a year-over-year basis. Internet Advertising & Fees revenue was $16 million compared to $18 million in the second quarter of 2013. Historical quarterly revenue data is available in the Company’s supplemental financial information.
Total GAAP operating expenses of $190 million decreased 1% compared to $192 million in the second quarter of 2013. Net income for the second quarter of 2014 was break-even, compared to $3 million, or $0.03 per share, in the second quarter of 2013.
Non-GAAP net income was $7 million, or $0.08 per share, compared to $13 million, or $0.12 per share, in the second quarter of 2013. Non-GAAP operating expenses were $181 million, a 1% increase compared to the second quarter of 2013. Total EBITDA margin of 13% was led by Careers - North America with a 25% EBITDA margin. Pro-forma items are described in the "Notes Regarding the Use of Non-GAAP Financial Measures" and are reconciled to the applicable GAAP measure in the accompanying tables.
Net cash provided by operating activities in the quarter was $25 million. Deferred revenue was $316 million, down 4% compared to the quarter ended June 30, 2013. The Company ended the quarter with total available liquidity of $192 million.
Six Month Results
Monster Worldwide reported total revenue of $393 million for the first six months ended June 30, 2014 compared to $412 million in the same period last year, a 5% decrease. Monster Careers revenue decreased 4% to $361 million compared with $375 million in the 2013 period. Internet Advertising & Fees reported revenue of $32 million compared to $37 million in the prior year period. The Company reported earnings from continuing operations of $2 million, or $0.02 per share, compared to $15 million, or $0.14 per share, in the prior year period.