Let's not get carried away Captain Underpants. He was mad that Andy decided to stay around as CEO with a new employment agreement.
They also reported a net loss of $504M and 1,000 job cuts so the wheels were coming off the cart and that's why he retired...I mean resigned. Jim was against all the acquisitions that the company did to build up - except for Monster. That was all Lanny who was with Solomon before becoming the Monster CFO for some reason. The stock was also at $10 at this point so Jim wasn't a savior.
The management team after that built back the company and it was on the right track before Sal and the Symbol Mafia did a hostile takeover and crashed the whole thing.
Plus there is the conviction on securities fraud with Jim for back dating options which made it a lot easier to grow the company with in the money options.
Chris Dessi: I know you as a humble person, but I need you to brag a little here. What has been your greatest career success to date? Tell us about it.
Jim Treacy: I firmly believe that nothing great is accomplished alone. Having said that, I was an integral part of Monster’s success. Wall Street seems to have validated that. The day I quit the company, August 6, 2002, its stock price plunged a jaw-dropping 30%. One Internet analyst wrote, in a widely-distributed report, that I was “the glue that held Monster together.” Modesty should forbid but he may have been right. LinkedIn launched in 2003 and, in relatively short order, dislodged Monster from its leadership position in the online career sector, bringing on its inglorious banishment from the S&P500 Index.
Call was pretty short and painful. Acted like they've been reporting Cash EBITDA all along even though they just made it up this quarter. Story is old and doesn't really hold any water. My favorite quote is from the Timinator...when asked about biggest obstacle...
I think we feel that it's 2/3 price competition, 1/3 probably our own internal with a little bit of macro overhang on it. And I would not blame macro overhang, but I think the world is not as robust as the headline employment statistics would indicate.
Linkedin grew 35% YoY - and what exactly is a macro hangover - what drink causes that?
They did the same thing they always do an said revenue growth will come in the second half when everybody knows Q3 is always their worst quarter. Still hoping for now low to mid single digit growth but they even said that's not looking great.
It sounds like non of the real analyst made the call and they really weren't that interested......I have no idea why the stock would be down today.
As I said it's just a way to make the cash EBITDA look better. I would bet it's payments to the two former CFO's and/or Sal an Lise so it doesn't look like a big severance payout since they got in trouble with that before.
I usually shy away from the BS on yahoo message boards but these guys may be a real diamond
in the rough. Search for “UltimateStockAlertss” on google and sign up. After their next pick you
will be glad you did!
I've been telling people to bail since $18+ but I'm a naysayer with facts.
If you believe the story - which is they got a great and experienced management team and board, they got a plan that they took years to develop and they implemented 2 years ago, they are sticking to the plan, the plan is working, then it's a buy at $2.73.
But as I have shown I don't believe there is anything to back up the story - all of the data shows the same cyclical downtrend that's been there for years now. They have no 'free cash' to work with and every chance they get they buy back the stock like some crazed crack head. The real market cap of the company is now around $240M (when you count outstanding diluted shares according to today's numbers.) If they have $100M or more in cash they'll buy a company just to switch things up.
Short term nothing moves like this stock - up/down 10% in a day or a couple of days. It moves up and down all the time - it's a short seller and day trader dream stock. But long term - do you believe the story that the management team has been telling for nearly a decade now?
Linkedin - 9,732 versus $856.11M in rev or $351.9K in revenue per Employee
oh wait Monster dropped that metric too but it's about half $161K per Employee.
foster trust, openness and integrity in all that we do
unless it doesn't tell a positive story then we ignore it and hope it will go away or SPG will die in a very slow and painful way.
$856.11M in revenue or 5.43X the size of monster for the first quarter.
They grew $218.42M YoY or again more than an entire Monster but only 34.25% YoY.
Their adjusted EBITDA was $222M or again more than an entire Monster.
Stock based comp was $146M or almost an entire Monster - too much in my opinion and I still think Linkedin is overvalued.
International revenue was $344M or 7x Monster international.
US revenue was $526M or 4.8x Monster US.
They also spent $238M on product dev which is more than an entire Monster.
why have we continued to pay this people for a decade?
Another way to put something in the non-Gaap bucket so they can increase cash and adjusted EBITDA and other made up numbers...or maybe it's for the CFO(s) they didn't fire because for some reason they haven't found new jobs. They made it a point of saying they didn't pay them out big bonuses when they left like everybody else, or maybe it's Sal and Lise's retainer for services related to the long term plan. They live by their values you - especially this one -foster trust, openness and integrity in all that we do
You think after the conference call Tim says - is that funny to you, how am I funny, explain it to me, and then he fires the CFO? Oh wait that's him now.
Adjusted EBITDA went down 2.5M so now it's Cash EBITDA which is up 11.3M.
UV's not going up - add in some other Tier 1 countries to make it work.
Toss in some pro forma EPS.
I don't see how they expect single digit YoY revenue growth by Q4 but then again they wanted 10% last year.