I would put Monster at number 5 in the US - behind 3 in revenue and 1 in market cap....
Linkedin - 6x revenue per quarter.
Indeed - 2x revenue per quarter.
Careerbuilder 1.2x revenue per quarter
DICE - worth 10% more than Monster.
Somebody should be in Jail.
You crack me up - Sal must have slept with your mom or something.
A lot depends on this next call and if the street believes the hype or the team can come up with a new hype cycle. Short interest was up slightly the last round and there will be one more update before earnings. I checked out the Alexa data you mention and it's bad.
If things don't improve all the free cash has to go to service the convert which will come due in a few years. I just don't see much of an upside on this one at this point. I do see another opportunity to short at this level if you can stand the risk or wait out the next hype cycle.
I don't think so you see we are going for the extended hockey stick. Sometime in the future 6 to 24 quarters out this thing is going to turn. You remember the $10M we gave Sal for the long term strategic plan, just before we let him retire, the key word there is long term and it's not been long yet. We are already seeing early signs of improvement, granted Alexa shows every property (US and overseas) tanking like a rock, but that's just the drop before the pop. You see that's our new strategy after the reallocate to accelerate - that program was the Bomb and resulted in almost as much savings as revenue declined this year. You got to DROP before you POP, just sounds so like us right?
If you feel me and you work at Monster you need to do the cool thing. You need to change your ring tone to End of the Road by Boys 2 men.
These are the companies used to compare exec comp.....and their worth in Billions (that's with a capital B)
Adobe - 44.4B
Akamai - 7.8B
Dun & Bradstreet - 3.5B
Earthlink - 0.6B
Equifax - 12.2B
Expedia - 14.2B
IAC - 4.5B
Netflix - 44.5B
Paychex - 16.9B
Priceline - 54B
Salesforce - 47B
United Online - 0.15B
Verisign - 8.3B
Yahoo - 27.5B
Now you got two dogs in there but you are going to compare the compensation of these idiots to some of the largest technical companies in the world. 20% are 40B or more - 100x the value of Monster. They have been doing it for years because they are too lazy and too scared to emit it's OVER and they aren't a market leader anymore. Everybody looses except for the traders on wall street on this one. Expect massive layoffs this year as revenue will be $600M give or take!
Wonder how Q4 and the whole year will turn out.....hmm down?
Many of our stockholders have different methodologies and processes for evaluating compensation programs, thus some of the views expressed varied materially; however, a number of common themes emerged which we have addressed and will continue to address going forward, including:
A desire for more rigorous performance standards with respect to equity awards and performance metrics tied to business results. Some stockholders did not feel that the terms of the stock price performance targets used in equity awards previously awarded by the Company were rigorous enough, especially given the volatility of our stock. Additionally, other stockholders expressed a desire that the performance criteria for these equity awards should be more closely tied to results of the business, as opposed to the impact that near term results can have on the stock price.
The magnitude of executive compensation and the disparity of CEO pay when compared to the other NEOs. Some stockholders expressed concern with the overall amount of compensation paid to our former CEO and the disparity between his compensation and the compensation of our other NEOs.
The payment of discretionary bonuses in years where no bonuses were earned under applicable incentive plans and the use of equity to fund such compensation. A number of stockholders requested that the Company be more judicious with its use of equity in its compensation programs.
Tim made almost $3M this year and the stock is at a 52 week low. Mark made over $1M.
The board is tone deaf as well as the management team....why 6 people are paid over $250K each a year to be on the board is beyond me. See you at $0.00
Indeed grew revenue $100M in the first half of the year - that's at least a $200M run rate in growth and they added 300 people. That's $667K in revenue per person or about 4x what Monster does. You can't adopt their business plan with your existing cost structure and overhead and expect to win. Linkedin gets more revenue from eCom than they do from their direct sales force. It's not the salesforce it's the people managing the business and the people.
The problem is the brand and marketing - it's not effective despite what you think and it's not enough to make a difference.
The problem is products - too many - wrong incentives on new products - the core is rotting away. The big boys are growing 40%+ YoY. It's easier to take new money than to take it away from competitors but once the new money slows they will focus on Monster.
Monster is in 4th place in the US - you know the region they decided to focus on a few years ago. They are less than 10% of the market in revenue and likely below 5% if not now, than in a year or so. You have to go for broke now or you never will. You have to change now or you never will. Hope is not a strategy, hope that my stock will vest or I can retire before it's worthless is not a strategy.
The Symbol Mafia has never been right about the hockey stick, or when revenue is going to grow, or the early indications, or the ability to string a couple of quarters of positive revenue growth in any market, or lived up to their promises that they are right around the corner, or the micro/macro/marble, anything.
They are squeezed on the low end Indeed which has a different cost model. They are squeezed on the top by a better product and solution from Linkedin. They are squeezed in the middle for the scraps from Careerbuilder which is spending more on marketing and Dice which has specialized in certain fields. All of those have been winning since 2009/2010 but Monster.
Why should we believe the Symbol Mafia this time?
We are below the most recent stock purchases that Tim bragged about on the last call. The only people that believe the stock is undervalued is the ones that were given free shares but aren't free to sell them.
That's why the last CFO quit, he didn't have another job, he had $3M in stock that wasn't going to be worth anything soon, so he punched out. Now you have 6 years worth of salary locked up in stock and you are good with numbers, what do you do - you take the money - that should be the biggest sign of where things are headed.
We are also below the long term incentive plan for the senior management even though they already 'earned' it and will receive nearly $4M in bonus money because of it with $2M going to Tim.
The stock is at a 48 week low and will soon be at a 52 week low. The only reason it popped was because the management team said we will grow 10% next year, things are looking up, etc. The reality has now set in and the stock will return to it's right value of less than $4. The rest of the industry grew 25% and Monster was down over 10%.
Now the plan is to hockey stick next year with 5% YoY growth by Q4. This is the same story they have told since 2008. This is the same story that has gotten them bonus money most years even when they haven't performed. This is the reason they are big shareholders. This is their conflict since they can't sell really until they leave the company. This is why every quarter or two another Symbol Mafia person leaves.
They spend $5M give or take a month on keywords like Monster. The competition is only bidding on 1st place in order to force Monster to waste money on it. That's why the CMO left, in 2008 they spent 30% of the budget on marketing now it's less than 15% and over half of that is keywords. That's not really a resume building stat. It's also why they haven't replaced that person.
You think that chatter is bad, wait til earnings. They are going to mask them with the sale of jobskorea, but I believe my prediction from last January will come true. I said revenues would decline by 100 million this year. I believe I will be spot on. Remember, all the new technologies renewed this year for the first time. As we saw last quarter, there were a lot that did not renew. As I mentioned, the new technology was tested and launched during the easiest time in the history of our country to find talent, anything would have worked. Now that it is getting harder, the technology is not as great as promoted. Their model that switches to the Indeed aggregator is eating the more expensive job posting revenue. They are on life support as it is, the annual number is going to be a disaster. We will now accelerate the revenue decline until they close their doors.
Talked to some of my peeps and the infighting at the exec level has started. The hope is Gill will take over as Chairman so the Admiral can retreat. Mark wants the golden ring but doesn't realize he'll be left holding the bag.
The talk has changed from what are we going to do, to 'nobody could have saved this company', 'nobody could have seen the changes coming to the industry', ' nobody could have seen that Linkedin and Indeed would take over.'
I hear the doors playing now 'this is the end, my only friend (Symbol), the end.'
Nobody cares, everybody just going through the motions, collecting the paycheck, rolling the eyes at the big executives and their outsized pay and ego, hoping that they won't make the next cut, updating the linkedin profile when not at work, waiting for the next opportunity. This place is DEAD, it's like a terminal diagnosis, zombie mode.
Can some people in sales tell us how it's going this quarter? Is 2016 shaping up to be a great year or another continued disappointment?
If it's good pump you chest and tell us the best!
Happy holidays y'all!
I would, but at the same time I would have never hired any of them. Sal on the Board was an ok hire, Tim maybe as well based on their banking experience but not both, you don't need 2 former CFO's on the board.
Short Interest didn't change much this last time, I would watch that number, it's still really high and will cause a lot of volatility. Unless this quarter's numbers are good and guidance increases, I think we are back to $4 pretty soon which is really where it was before the hype cycle.
I would not but be careful of what you wish for. Sal is technically gone but the 'team' is not. It's obvious that Mark has been groomed/knighted/tasked with covering the tail as the Symbol team makes an exit over the next 6-24 months. He's been with them a long time, Tim never really wanted to be there, let alone CEO and the others aren't qualified. As things continue to unravel others will 'retire' and Mark will take it into the twilight.
Lycos sold for 12B years ago but sold $36M just a few years ago. Monster is likely to go that same route - likely selling off the domain name for $100M or more and the rest of the business for pennies on the dollar (including all that debt.)
If you were the board, the CEO or a major shareholder that actually cared about the stock would you continue to let the Symbol Mafia and Mark run the company?
Name something they have gotten right since the hostile takeover about a decade ago? They took over a company that had $500M in the bank and was generating over $250M a year in NET CASH.
Since then they have consistently been the lagger. When the economy hit the skids all the traditional boards took a hit but Monster took a bigger hit. At the same time Linkedin and Indeed grew through the recession. After the recession everybody else has grown at a good pace except for Monster. Larger companies, smaller companies, startup, companies that were the same size. In every case the data has shown that against the 5-6 major competitors in the space Monster has been dead last in revenue growth - in fact it's shrunk over 50% whereas some of the companies have grown over 1000%.
They spent years developing the current plan and even after Sal was kicked out they all agreed that it was the best plan and it was going to work. They pumped up their chests, set all the right things, set goals that weren't even lofty compared to the other companies but certainly lofty given their track record. They missed - instead of 10% growth they had 10% contraction. They set even lower goals for 2016 that they are certainly going to miss and even if they hit they will still be the lagger.
All the while they have been over compensated based on the size and performance of the company.
All the Symbol people need to go - they can't be trusted and they show no passion or ability to grow this business. Mark is guilty by association and has no passion about the business. They are all here just to extract as much money from the company as they can for as long as they can.
Dear Monster board members please put an end to the madness.