Trefis: North America Business At The Cusp Of A Turnaround?
North America Business At The Cusp Of A Turnaround?
North America revenues were down 3% on an annual basis but up 4% sequentially during the first quarter. The slowdown was a result of lower revenue from field sales customers, partially offset by increased business activity from government and e-commerce sectors. The outlook for the North America business is mixed with the challenging employment market in the United States and rising competition for job listings from social media companies like LinkedIn and Facebook.
On the positive side, the company improved its operating margins from the segment to 10.7% from 2.7% during the same quarter last year. This improvement is attributable to the restructuring initiatives that resulted in a 12% decline in salaries and related expenses. The company also reigned in its selling, general & administrative (SG&A) expenses from the region which were flat year over year. This was due to a newmarketing approach to drive site traffic. We expect the company to keep its costs in check in the near term while the improving economic outlook for the U.S. and its neighboring countries should help revenue growth.
Trending sideways now on low volume after that stunning earnings release.
The slight uptick in US revenue is most likely the US Government account which is choppy on the revenue but overall still down 9% YoY versus 10% YoY last quarter so that's awesome.
Linkedin is over priced but still up 50% for the year to date, including the recent decline.
Linkedin's overseas business is growing faster than it's US business whereas Monsters shrinking faster overseas. The US business is bigger than Monster and still growing +70% YoY so there is nothing wrong with Monster.
You should hold this to $45 - Sal will get it back there someday.
Keep reposting others thoughts cause you have none of your own!