Monster Worldwide (NYSE:MWW) recently introduced new features to its SeeMore application for the U.S., the U.K., Canada and Australia markets and launched a beta non-English version of the same in France. We expect the move will help address the 24% decline in European revenues the company reported in Q2 2012 while strengthening its position in North America. Monster’s revenues from North America grew 14% y-o-y in Q2 backed by continued adoption of its advanced product suite by companies and staffing firms. The company is expected to roll out the application in other European and Asian markets after its beta trial in France.
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Combating a bleak economic outlook with global roll-out of SeeMore
The Monster Employment Index Europe, a monthly analysis of European online job demand, was down by one percent in August, marking the first decline since April 2010. This is reflective of the slowing growth of job demand in Europe in response to reduced business and consumer confidence. The steepest decline was recorded from the Netherlands and France which registered double digit declines. We expect the company to combat the decline with the help of SeeMore, an application powered by the successful 6Sense semantic search technology.
The tool allows employers to search all of their talent pools in one place and quickly identify and rank the best potential candidates by reading the resumes with a recruiter-like understanding of skills and qualifications. The company expects the tool to help HR teams streamline their talent management workflow while reducing recruitment costs and improving overall productivity.
We expect the benefits of precise decisions regarding skills management and reduced recruitment costs in these uncertain economic times would encourage businesses to use Monster’s services. The application is poised for a wider launch after its beta trial in France, and this would help the company grow its revenues in tough economic situations as it did in North America last quarter. We currently expect Career Services International to contribute 60% of overall revenues by the end of our forecast period, up from 40% presently.
We currently have a $9 estimate for Monster, which is 10% above the current market price.
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