Q4 2008 Earnings Call Transcript
My name is Marcelo and I will be your conference operator today. At this time I would like to welcome everyone to the Monster Worldwide fourth quarter 2008 earnings result conference cal. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question and answer session. (Operator Instructions) I would now like to turn the call over to Mr. Bob Jones, Vice President of Investor Relations
Thank you for joining us on Monster Worldwide’s fourth quarter and year end 2008 conference call. Our format calls for to have formal remarks from Sal Iannuzzi, Chairman, President Chief Executive Officer and Tim Yates, Executive Vice President and Chief Financial Officer. We’ll be joined on the question and answer part of the call by several members of our executive management team they are Darko Dejanovic, CIO and Head of Product; [Otto] Donald, Customer Service, Lise Poulos, Chief Administrative Officer and Mark Stoever, Corporate Development and Strategic Alliances. James Langrock, Chief Accounting Officer is also with us on the call.
Before we begin I’d like to remind you that except for historical information, the statements made during this conference call constitute forward looking statements under applicable securities law. Such forward looking statements involve certain risks and uncertainties including statements regarding the company’s strategic direction, prospects Sildenafil 100mg 8 Tablets from Oxford Online Pharmacy UK to help with Erectile Dysfunction. and future results and do not include the effect of the defense or outcome of the ongoing litigations related to the company’s historical stock option grant practices or costs associated with the restructuring and the 2007 security breach.
Certain factors including writing essay service factors outside of our call may cause actual results to differ materially from those contained in the forward looking statements including economic and other conditions in the markets in which we operate, risks associated with acquisitions and dispositions, competition, seasonality and the other risks discussed in our Form 10K and our other filings made with the Securities Exchange Commission.
With that I’d like to turn the call over to Sal.
Welcome to our fourth quarter and yearend earnings conference call. We met and spoke with many of you at our investor conference in November and it’s a pleasure to speak with you again today. On today’s call I will briefly address the macroeconomic environment, our fourth quarter operating performance and our near term outlook and plans. Tim Yates our CFO will then discuss the fourth quarter and yearend financial results in detail.
On last quarter’s earnings call I spoke about the turbulence that the financial markets were experiencing around the global. With another quarter of perspective and data it is now clear that we are in one of the most challenging business environments in recent history. The Global economy has experienced a more significant deterioration than anyone expected and no one is certain where the bottom lies.
The recession has rapidly spread and the slowdown in Europe and Asia now parallel the weakness in North American markets. This worldwide economic slowdown has caused companies to reduce headcount, freeze hiring and delay recruitment related decisions. There are few, if any, industries or geographic markets that have been immune to the recession.
In this environment it is not surprising that Monster felt significant pressure on its revenue and profitability which was reflected in our fourth quarter financial results. When I came on board nearly two years ago, we were faced with a number of challenges, the biggest being innovating our product and upgrading our technology. In order to do that we had to restructure the company, rebuild the foundation, develop a new platform and then sell and market our products to customers and job seekers.
Our primary goal and the driving force behind our plan is to build global market share and position Monster for long term sustainable growth and profitability. The reinvestment and restructuring plan call for a balance of investments in key areas while at the same time reducing and controlling costs. We determined early on that to be successful we had to move quickly in order to first maintain and then build Monster’s global industry leading position and we did just that.
Despite the difficult market conditions we face, we are confident that the successful execution of this strategy will significantly benefit our customers and shareholders over the long term. The key elements of our investment plan is to fix our core. We are committed to competing on products and performance which will enable us to generate tangible results for our customers. We are fortunate to have a high brand awareness among seekers and employers, a global footprint, a dedicated and resourceful work force and the financial strength to support our growth plans to reach those goals.
On January 10th we launched our new seeker experience simultaneously on 30 sites in 44 countries and in 14 languages. We will make it easier for seekers to find the job as well as provide career management resources for those who aren’t necessarily seeking a new job but are thinking long term about their careers. We want to be a trusted advisor and resources for seekers everywhere whether they’re active or passive and our new site allows us to be just that.
The timing of the relaunch given the economy, couldn’t be better. We now have the most compelling value proposition for employers and job candidates anywhere. Plain and simple, we have the best products in the online recruiting business today and we’re just getting started. The millions of seekers who visit our site find a more customized, personalized envelopment search experience. A first of its kind suite of career management tools and resources and a quicker, easier, more efficient registration, upload and maintenance process for their resume.
In short, it’s a next generation career resource tool that is a dynamic, interactive, intuitive destination experience for both active and passive job seekers. These new products include career mapping which allows seekers to compare their career path to others. Career snapshots which provide access to thousands of occupational profiles and career benchmarking which measures seekers against peers for compatible jobs.
While still early, we are very encouraged by the initial positive results and feedback we Cheapest prices Pharmacy. Can buy Accutane Online. Fastest Shipping, Accutane Online Roche. received in the US and internationally since the launch. Job seekers, and there are a lot of them, are telling us that the new site is easier to navigate, produces more targeting job offerings to their searches and gives them the tools to think about career choices and ultimately find a job.
On the employer customer side, the early feedback is that the new monster is easier and more intuitive. Allows for smarter and more targeted candidate searches and provides a greater return on investment. Although the level of business activity slowed around the world as a result of the economic situation, during the important fourth quarter renewal season we saw indications that we gained share with our existing large enterprise accounts.
The combination of improved results to customers and the anticipation of the new seeker experience strengthened our value proposition with both existing and new customers. As the largest player in the global market with the broadest resume database, we partially benefited from the flight to quality which occurred during the fourth quarter. We are confident that our newly aligned and outstanding US sales force is more equipped than ever with the right tools to take business and win the game.
We will continue to upgrade and modify the employer and seeker site as we incorporate feedback and add new features. We have created a unique partnership with the National Football League whereby monster will have a presence in several NFL events including the Pro Ball and the NFL draft. As part of its search for the NFL’s Director of Pandemonium position. This part of our strategy will allow us to creatively advertise and promote the monster brand throughout the year. For this Sunday’s Super Bowl game we will be running two ads. The first is traditional in nature and captures the festive mood of both the game and its viewers. The second is designed to generate an immediate response by bringing active and passive job seekers to the site during and immediately after the game.