Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'financials'

Industry News

All Signs Point to Best Year Ever For Search



Exec search firm employees 2014

All but counted out a few years ago, as the biggest employers started in-housing executive search, retained and contingent firms have come roaring back.

By most accounts, 2014 is going to end on a strong note. So strong in fact that it may be the industry’s best year ever.

Third quarter reports from the publicly held search firms and global numbers from the Association of Executive Search Consultants show both revenue and searches are up this year over last year.

Industry News

Reporting a Strong 3rd Q, Monster Names New CEO



recruitment revenue Q3 2014
Tim Yates

Tim Yates

Like so many companies these days, Monster hired a boomerang to be its new leader, announcing Tuesday morning that former CFO and current director Tim Yates will be the company’s new CEO.

The announcement was made by Sal Iannuzzi, the company’s chairman, and now former CEO and president, during the quarterly financial conference call with investment analysts. After discussing Monster’s financial performance, which surpassed Wall Street’s predictions on both earnings and revenue, Iannuzzi said he was stepping down for undisclosed personal reasons. He will remain on the board as non-executive chairman.

Such explanations might ordinarily signal a forced change of command over board unhappiness with performance or strategy or both. And with Monster’s stock trading at historic lows, it’s a reasonable assumption. However, Monster’s Three Pillar strategy, unveiled in May, shows signs of paying off. Monster’s earned 5 cents a share in the 3rd quarter, beating the 3 cents a share Wall Street predicted. Revenue grew to $191.2 million, compared to analysts’ estimates of $189.9 million.

Business

Here’s How to Tell If Hiring Makes Financial Sense



Hiring - freedigital

Hiring - freedigitalFor a moment let’s ignore all the human and emotional aspects of hiring employees and take a close look at the numbers. In other words, why does it make financial sense to hire when: it is so difficult to train; hiring creates a huge distraction to personal production, and; knowing most of those we hire will fail?

For this article I am going to utilize my internal ratios that I have tracked over the last eight years and more than $8 million in gross revenue. To be clear, these ratios include the time as a rookie office when I opened with three green recruiters. And obviously my numbers have been significantly influenced by the great recession. I am confident that my ratios will naturally improve as I accumulate more experience in this industry and time during strong markets.

Industry News

Monster Has Weak 2nd Quarter



Job board revenue Q2 2014

Job board revenue Q2 2014Although it’s much too early yet for Monster’s ambitious “three pillars” strategy to become the transformative force executives are predicting, the financial markets were hoping the company did a little better in the 2nd quarter of the year than in the first quarter.

It didn’t.

After Monster reported earning 8 cents a share on revenue of $194.4 million, and lowering its financial outlook for the current quarter, investors sold off shares of the struggling company at twice the normal volume, pushing down its price almost 13% by early afternoon. Monster stock closed Monday at $6.62 a share. Not long before the market’s close, the stock was off 15.6% to $5.59.

Uncategorized

Job Board Revenue, Earnings Show Market Continuing to Grow



Job board revenue Q2 2014

Job board revenue Q2 2014Doubters may be questioning the strength of the U.S. jobs recovery after Wednesday’s announcement by ADP that 218,000 private sector jobs were created in July — lower than expected — but the job boards aren’t.

Two of the three publicly held careers publishers have so far reported their 2nd quarter results, and in both cases they’ve wowed Wall Street.

LinkedIn this afternoon announced it grew revenue by 47%, crossing over into billion dollar territory halfway through the year. The company earned 51 cents a share (after adjusting for one-time expenses) versus the 39 cents predicted by analysts.

Industry News

Q1 Job Board Financials: So-So, Though LinkedIn Booms



2014 Q1 Recruitment advertising

2014 Q1 Recruitment advertisingBy any measure, the first quarter was a mixed bag for the employment advertising business. The three public companies — Monster, Dice, and LinkedIn — all reported numbers that in some way didn’t hit what Wall Street investors were expecting or wanted.

CareerBuilder, privately held by a group of publishing companies lead by Gannett, its biggest shareholder, said it had North American revenue of $167 million, barely a 1% increase from Q1 last year. It provides no other numbers.

Industry News

LinkedIn Buys Matching Service As It Plans For Job Posting Push



Econ data Jan 2014

LinkedIn_logoLinkedIn made a sort of history today. For the first time since going public three years ago the company’s stock price dropped even though LinkedIn beat Wall Street’s expectations for earnings and revenue, and, for good measure, announced it had acquired a fast-growing matching-based job board for not much cash.

Reporting its fourth-quarter financial performance after the markets closed this afternoon, LinkedIn said it earned 39 cents a share on revenue of $447.2 million. The company simultaneously announced it had acquired Bright.com, a two-year-old startup that matches jobs to seekers by scoring the latter on how well they fit the position.

The $120 million price will only require LinkedIn to come up with about $36 million in cash, a pittance for a company with $803 million in the bank. The balance will be in LinkedIn stock, which, after dropping more than 7 percent in after-hours trading, is now around $207 a share.

Industry News

Monster Sees Hiring Improving Here and Worldwide



4th Q job board financials 2013

Monster logoGlobal job board operator Monster Worldwide reported a stronger finish to 2013 than analysts were expecting, beating their average earnings estimate by 5 cents a share and their revenue estimate by $3.4 million.

The company reported this m0rning it earned 11 cents per share versus the 6 cents a share analysts were predicting. Monster also offered a rosier outlook for the current quarter, forecasting it would earn between 6 cents and and 10 cents per share.

Wall Street liked what it heard, bidding up the stock by more than 20 percent to $7.13 a share just after the opening.

Industry News

Dice Optimistic About 2014



Dice Holdings 2013

Dice Holdings 2013Despite missing on earnings, investors gave Dice Holdings a bye this morning, liking the revenue numbers it posted for the 4th quarter of 2013 as well as what the company sees for this year.

Some slowing in the niche job board company’s security clearances jobs site (ClearanceJobs.com) was more than offset by gains in other areas, and by contributions from the sites Dice acquired when it bought onTargetjobs last fall and the IT Job Board in July. Improvement in the finance sector in Europe and Asia staunched the decline in revenue at eFinancialCareers.

Industry News

Employer Review and Career Site Gets $50 Million For Expansion



glassdoor logo

glassdoor logoGlassdoor, the site where employees review employers, has $50 million more in the bank this morning, an investment it will use to accelerate product development and grow internationally.

The latest round of financing brings the total invested in the five-year-old company to almost $93. million. It comes a little more than a year after a $20 million financing round led by DAG Ventures with participation from existing investors Benchmark Capital, Sutter Hill Ventures and Battery Ventures.

This round was led by Tiger Global Management, with new investor Dragoneer Investment Group, and previous investors Battery Ventures, Benchmark Capital, DAG Ventures and Sutter Hill Ventures participating.