Not that this is a surprise, but if you want to look at structural weakness in the tech recruiting market, check the forecasts and analyst estimates for Dice Holdings, which announced its Q308 results today. The company, which went public a year ago, reported total revenues of $39.6 million for the quarter, only about 4 percent higher than $38.1 million in the year ago quarter, and even that was primarily driven by increased revenues at the international operations of eFinancialCareers, which it bought two years ago. Profits came in at a healthy $6.4 million, an increase of 52 percent from $4.2 million in the year-ago quarter. eFinancialCareers' revenues grew 18 percent for the quarter to $9.9 million. About 82 percent of Dice segment customers are on annual contracts, though renewal rates now at 65 percent down from 71.5 percent in the previous quarter, another sign of continuing weakness.
From a note that Doug Anmuth, Barclays Capital analyst sent out, some downward revisions for 2009: Taking '09 numbers down sharply. '09 revs now $142 million (-8 percent) vs. previous estimates of $172 million (+8 percent). Adj EBITDA to $61 million (-9 percent) vs. $74 million (+9 percent) previously. Expect biggest Y/Y declines in eFC biz, where finance headwinds will add to core market challenges, he wrote in the note. More info in release.
By Rafat Ali