Monster's Potential: International Markets and Search Technology

| About: Monster Worldwide, (MWW)

Monster (NYSE:MWW) recently indicated that its seeing a pickup in the number of new job posting deals with companies in international markets. We believe that overall improvements in the international job market along with the faster adoption of Monster’s Power Resume Search product will further drive the company’s growth in international markets and benefit Monster’s stock.

Job Market Improvement in International Markets Could Continue

Monster benefited from an overall improvement in the international job market in Q1 2010. For example, Monster’s management indicated that year over year bookings for Monster in Q1 2010 increased by 100% in Korea, 67% in China and 36% in India. Bookings are the dollar amount of contractual orders which companies give to Monster to handle its job postings.

We expect that the Number of New Job Postings in Monster’s international business will increase from 760,000 in 2009 to around 1.6 million by the end of Trefis forecast period, implying an average annual growth rate of around 12%.

However, if international job markets continue to show fast growth, enabling the number of new job postings to increase to around 2 million by the end of Trefis forecast period, it could mean an upside of 10% to the $11 Trefis price estimate for Monster’s stock.

Power Resume Search Success in the US Could Translate to International Markets

Power Resume Search is an innovative product launched in November 2009, and is based on Monster’s patented 6Sense technology. In another article, we described how 6Sense technology is much more efficient than the traditional resume search technology and how it will allow Monster to earn more from recruiters by making it easier for them to find suitable candidates in less time.

Power Resume Search has seen fast adoption in the US in the past two quarters. The company recently launched the product in the UK, Canada and France and has plans to launch it in Australia. According to Monster’s management, the Power Resume Search product is being offered at approximately a 30% premium to the traditional search product from Monster.

We expect that the Average price per Resume access will decline from $470 per 1,000 resumes in 2009 to around $410 per 1,000 resumes by the end of Trefis forecast period. However, if Power Resume Search could help Monster stabilize the average pricing, it could mean an additional upside of around 2% to the $11 Trefis price estimate for Monster’s stock.

Disclosure: No positions