Monster Worldwide Inc. (MWW) reported loss of 6 cents per share (including stock-based compensation but excluding one-time items) in the fourth quarter of 2014, which compared unfavorably with the Zacks Consensus Estimate of earnings of 1 cent per share and year-ago earnings of 3 cents.
The company posted GAAP loss per share of $3.31, wider than year-ago loss of 21 cents.
Revenue Details
Fourth-quarter revenues of $186.2 million missed the Zacks Consensus Estimate of $193 million and declined 6.3% year over year. On a year-over-year basis, results were impacted by unfavorable currency translation.
Quarterly revenues in the International Careers segment were $63.7 million, down 9% year over year. Revenues in the Careers North America segment were $106.4 million, down 4% on a year-over-year basis.
Internet Advertising & Fees revenues were $16 million against $18 million in the year-ago quarter, down 11%.
Margin
Monster reported adjusted operating expenses of $172 million, down 5% year over year. The company reported adjusted EBITDA of $26 million and adjusted EBITDA margin of 14%, which declined 160 basis points.
Balance Sheet & Cash Flow
Monster exited the year with $82.8 million in cash from operating activities compared with cash flow of $33.8 million in the year-ago period. Free cash flow was $42.9 million. Deferred revenues were $300.7 million, compared with $342.2 million in 2013.
Outlook
For first-quarter 2015, the company expects non-GAAP earnings per share from continuing operations in the range of 5 to 9 cents excluding $5 to $6 million of stock-based compensation, $1.2 million of non-cash debt discount amortization related to the convertible debt and restructuring charges related to its Reallocate to Accelerate program.
The company expects first-quarter 2015 EBITDA margin in the range of 18–22%.
Our Take
Monster’s core business is showing signs of improvement as well as robust potential for cash flow generation. Additionally, the company’s corporate restructuring initiative is expected to boost margins, going forward. Mobile has been the primary area of focus for the company for some time and the increasing penetration of smartphones is a major positive, going forward.
However, the company continues to face significant competition from professional and social networking websites such as Facebook (FB) as well as traditional advertising companies, such as Omnicom Group (OMC).
Monster currently has a Zacks Rank #2 (Buy). Other stocks which may be considered in this sector include PetMed Express, Inc. (PETS) sporting a Zacks Rank #1 (Strong Buy).
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