Up again - 25M shares short - up 500K - 29.3%
Maybe Sal and Lise will dump before earnings since they don't have to report any more or Lise doesn't after next week. It's number 37 based on percentage of float.
I get it - the year before Sal joined revenue was growing 2x as fast as his first year and International was nearly 60% yoy growth. From reading the restructures it seems we have more sales people than ever and revenue is 1/2 what it was so yes that's a problem.
Telesales was like magic - you just dialed for dollars or picked up the phone and wrote up the order. eCom is that now but Monster never embraced it because the sales people wanted credit.
Did you know that eCom @ Linkedin does more in a quarter than ALL of Monster - no sales people no commission no nothing but a little bit of code. That's the magic bullet that Monster doesn't have.
Linked in also does more in international than all of Monster another magic bullet. Not sure how overseas got so messed up but it was the highest growth division before the reign of Sal.
Passive candidate - not a twitter card is another magic bullet. Linkedin gets a lot of revenue from the job seeker - something Monster never figured out.
Sal and team are right on one thing - the Market is big - they just don't know how to tap it. Linked in will do $3B in revenue this year - that's 2x what monster ever did in it's best year.
Stevo said on the last call that Monster had 60% of the $50K employee - I don't think that's true but the higher the cost of the employee the more a company is willing to pay. Monster never figured that out as well (that's the passive candidate magic.)
We all know senior management reads this board - suggest a path forward - suggest a way to fix it or pull the rip cord, the ejector handle, or brace for impact.
Are customers not answering the phone - then see them in person - distribute sales people across the US versus keeping them in a call center.
Are customers not renewing because of price - lower the price - or give them more product for the same price?
Pay the reps that do make it - increase quota and increase the payout by 2x - worth it if they sell it.
Salpleasego you are missing something. In 2006 they were one of the top 20 websites visited on the worldwide web. THEY DIDN"T HAVE TO PROSPECT OR SELL. All they did was sit around and wait for the phone to ring. Now those sales reps were promoted to management. I was there, they don't know how to prospect. None of them have business plans. They don't have anything set up for pipeline cadence...there's a sales staff of nothing. Not to mention the people that have been selling job postings for YEARS and now that they have new technology, they are finding they don't know how to sell software. The managers are getting frustrated, they don't know what to do, so they are just getting nasty with the sales staff. SO, they hired Acquisition teams. The team in my region had a total of 8 reps. Three were fired within 5 months of the new manager taking over. He hired three reps, two left within 6 months. A turnover of 5 (that didn't do any business, but still got paid) out of 8. So, what did the manager do? He left as well. The entire sales team is one big train wreck. They don't know how to prospect, and they received no guidance from management. Read the reviews on Glassdoor. I have a feeling that they will make the top 10 list as the "worst companies to work for".
Someone else said it but I think they may be right - right from the get go Sal sacked 800 people, did a restructure to move $80M a year into product and basically started wrecking things. Every time he did a restructure or launched a new product it got worse - EU was growing like crazy until he took over. Linkedin never had a down year and they will do an entire monsters worth of revenue in 1 quarter this year. They will also do 2x Monsters best revenue this year. That folks is a better mouse trap.
% Rev Change
Year - LNKD - DHX - CB - MWW
2014 - 45% - 23% - (-2%) - (-5%)
2013 - 57% - 9% - 3% - (-9%)
2012 - 76% - 9% - 5% - (-10%)
2011 - 127% - 39% - 13% - 14%
2010 - 103% - 17% - 3% (-3%)
2009 - 54% - (-41%) - (-27%) - (-48%)
2008 - 143% - 9% - (-4%) - (-1%)
2007 - 113% - 35% - 15% - 21%
As soon as Sal and team took over they killed it. They were lowest (or negative growth) 5 out of 8 years - the other three years they were #3.
I see no reason yet for the continued decrease in revenue YoY in the single digits which puts revenue at low 700M this year and mid 650M next year.
The new product has been running for a year and it's not making a difference - time to pull the eject handle.
My how time changes..
Year - Cash - Debt - Credit Line Av - Liquidity (in M)
2014 - 94 - 211 - 27 - 127
2013 - 89 - 135 - 179 - 267
2012 - 148 - 165 - 163 - 311
2011 - 250 - 189 - 108 - 358
2010 - 163 - 125 - 164 - 328
2009 - 300 - 50 - 248 - 549
2008 - 314 - 0 - 198 - 512
2007 - 579 - 0 - 198 - 777
But hey we did spent $14M on a hedge in case the stock gets above $7.20 so I'm pretty sure they got things covered.
$143M due in 2019 - that date is sooner than you think and it pretty much hand cuffs the management team - which is another reason for the 30% EBITDA - they need that to cover the loan.
Expect a new CEO, COO and another 1,000 layoffs this year.
I'm sorry - there are going to be another 1,000 lay offs in the next 12 months so you won't be alone. Too bad not everyone gets to retire when they destroy a company and only walk away with a few millions.
Timmy and Mark e Mark will do the song and dance this quarter - economic slow down - micro/macro/mabel - currency head winds - etc.
Or not maybe the new plan is working and things will look up and they'll rehire experienced people that they let go?
I hope you wrote a review on Glassdoor. I was let go this year. Pretty much everyone on my team took time to write a bad one. I think they are close in the rankings as one of the worst companies to work for.
These people made me redundant twice, pushed my career back, and with a bit of debt too boot. Every time a manager in my new job 'Have you got a moment' my heart rate goes through the roof. So I suspect you're being a little too kind! I could say more....but then the Internet remembers everything.
That said, having worked there and read your posts for a while, I think your general take is pretty much spot on. Flawed company with no future. Have you heard the rumour the London office is closing this year?
Compensation committee tied the CEO and COO to a big bonus provided they make a 30% EBITDA margin which is why they harped that so strongly on the call. This is a nail in the coffin because it will drive short term cuts which is at odds with long term thinking an performance. An analyst on the call said why would you want 30 - 35% EBITDA - why don't you invest in growth...right question and now we know.
It only took them to Feb to realize they didn't need Sal as Chairman any more in order to provide for an orderly transition. He still got paid like an OG gansta to the MF core.
95M cash - 220M debt - going to be hard to pay back that loan so they asked for 27m shares just in case - another nail.
Shareholder vote/info is out - and there is a lot to process. This is the real reason Sal lost his job and the others will soon 'retire.'
Sal got it all and the kitchen sink - $2M bonus - year pay out - all stock vest - close to $20M to walk away - given the damage that he has done I guess it's worth it.
Also looks like the Admiral is slated to be the Chairman of the Board (or maybe his is already - I didn't see any official notice on that except in the recent filing.)
The rest are gone by the end of the year. Hopefully the stock tanks before Sal, Lise and the rest can unload their shares - that would be some justice.
Bookings (threshold - intermediate - target - max)
2011 - $1.19B - $1.22B - $1.24B - $1.26B
2012 - $932.9 - $958.8 - $994.2 - $1,057.3
2013 - $907.2 - $931.0 - $967.2 - $1,039.5
2014 - $820.0 - $846.4 - $883.2 - $956.8
2011 - $87.1 - $98.6 - $110.1 - $121.6
2012 - $73.8 - $78.5 - $95.4 - $120
2013 - $67.5 - $74.3 - $90.4 $107.2
2014 - $66.5 - $81.5 - $91.2 - $105.8
Consolidated Net Revenue
2011 - $1.10B - $1.13B - $1.15B - $1.17B
2012 - $847.4 - $876.7 - $903.9 - $974.1
2013 - $832.5 - $855.2 - $890.4 - $957.2
2014 - $792.6 - $807.6 - $831.8 - $868.2
2011 - $1.11B - $75M - $1.04B ( missed all - got a bonus anyways)
2012 - $967.8 - $67.3 - $890.4 (intermediate on 2 but below target - miss on other)
2013 - $???.? - (-$0.4) - $807.6 (all miss - don’t report bookings anymore)
2014 - They didn't even give the numbers - just said they missed them all AGAIN!
He's not a named 'officer' so no 8k required - search google news for Ted Gilvar. He's going to Vonage Holdings.....
Are you saying Ted G. left as well? I did not see an 8k. Where did you get the info? It's really bad if Sal, Lise and Ted leaves within 6 months of each other. Like beyond repair bad.
That's two in 1 month - 3 so far. Although I'm sure Chief admin really counts as a chief but heck she was sure paid like one. Good buy CMO Ted - wish you well.
Cho Cho - do you here that - it's the pain train and it's building up steam - it's not over it's OVER and the rapture has started.
I know my spelling and grammar are bad on the board but the title is fun and on purpose!
The other problem is #$%$ POOR leadership! They got too comfy, and the competition ate them for breakfast, lunch, dinner and dessert. One of the core principles of running a company is to change your direction BEFORE the market demands you change. Monster waited way to long and look what happened. Their reputation in the marketplace is terrible based on people I have spoken too. They are nothing more than a black and white TV in a world full of HD flat screens. This is an example of Monster's failings as a company as a result of the HORRIFIC leadership in place.
You may be right. They have launched a bunch of products and revenue is down 50% from peak 2008 levels. Yet others in the space (Careerbuilder and Dice are more traditional) are up - careerbuilder is up 30% and dice is up over 100% from 2008 levels. They haven't really launched anything new - Dice has done some acquisitions but more along the core product. Monster did to if you count Hotjobs and China HR (about $500M for both.)
When the new products came out they cannibalized their existing bread and butter products. The 'core' product has to be down 75% from peak with new products making up the other 25%. The way the sold and bundled it must have been horrible for the market and customers.
Just hiring more sales people (QUOTA CARRYING HEAD COUNT!) doesn't make you a sales organization. But neither does working at a boutique wall street investment company make you a CEO. It just points to head in the sand (last guys and economy) and an inability to manage the existing company or execute a strategic plan. Now you can't blame that all on Sal - Lisa, Mark, Tim, etc. were all major players.
But if you were the Chairman of the board you would have fired all of them a long time ago - you certainly wouldn't have given them 10's of millions of dollars and Sal a $13M long term stay package last year.