Monster Worldwide's CEO Discusses Q1 2011 Results - Earnings Call Transcript

| About: Monster Worldwide, (MWW)

Monster Worldwide (NYSE:MWW)

Q1 2011 Earnings Call

April 28, 2011 5:00 pm ET

Executives

Sal Iannuzzi - Chairman, Chief Executive Officer, President and Member of Special Litigation Committee Addressing Civil Litigation Matters

James Langrock - Chief Financial Officer, Chief Accounting Officer and Executive Vice President

Lori Chaitman -

Analysts

Douglas Arthur - Evercore Partners Inc.

Craig Huber -

John Blackledge - Crédit Suisse AG

Tobey Sommer - SunTrust Robinson Humphrey, Inc.

Neil Doshi - ThinkEquity Partners

Mark Marcon - Robert W. Baird & Co. Incorporated

John Janedis - UBS Investment Bank

Timothy McHugh - William Blair & Company L.L.C.

Glenn Greene - Oppenheimer & Co. Inc.

James Janesky - Avondale Partners, LLC

Operator

Good afternoon. My name is Kristen, and I will be your conference operator today. At this time, I would like to welcome everyone to the Monster Worldwide First Quarter 2011 Earnings Conference Call. [Operator Instructions] Thank you. At this time, I would like to turn the call over to our host, Lori Chaitman, Vice President of Investor Relations. Please go ahead.

Lori Chaitman

Good afternoon, and thank you for joining us on Monster Worldwide's First Quarter 2011 Conference Call. We will have formal remarks from Sal Iannuzzi, Chairman, President and Chief Executive Officer; and James Langrock, Executive Vice President and Chief Financial Officer. In addition to Sal and James, several members of our executive management team are available to answer your questions during the Q&A part of the call. They are Tim Yates, Andrea Bertone, Darko Dejanovic, Ted Gilvar, Patrick Manzo, Michael Miller, Lise Poulos, and Mark Stoever.

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 laws. Such forward-looking statements involve certain risks and uncertainties, including statements regarding the company’s strategic direction, prospects and future results. Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the market in which we operate, risks associated with acquisitions or dispositions, competition and the other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission. With that, I'd like to turn the call over to Sal for his comments. Sal?

Sal Iannuzzi

Thank you, Lori. Good afternoon and thank you, all, for joining us for our first quarter conference call. We are off to strong start to the year and performed at the higher end of our financial expectations during the quarter.

Consolidated bookings during the quarter increased 24% year-over-year. Bookings for Careers, our core business, were up 28%. Revenue grew 23% year-over-year. Revenue of our core Career business increased 26% on a year-over-year basis. EPS was $0.05, a substantial improvement over last year's first quarter loss per share of $0.14. EBITDA was $44 million during the quarter. James will provide detailed financial information and I will comment on business highlights and our outlook for the Q2 and the full year.

Our strong results were driven by the improved value proposition we offer our clients worldwide a continued global economic recovery. Geographically, North America bookings grew 29%, Europe and Asia Pac both increased about 26%. As anticipated, our IAF segment was essentially flat year-over-year. Similar to the trends we experienced last quarter, strength in our Display business was offset by the continued weakness in military recruitment.

We have been focusing on diversifying the client base of our IAF Advertising business. We are hopeful that these efforts will result in improved performance for the rest of the year. Our core [ph] strategy is predicated on not just having a high volume of traffic and seekers but also on the ability to perfectly target and match those seekers for available jobs quickly and efficiently.

Today, clients are inundated with applicants. In the future, hopefully the job market will tighten and there will be fewer candidates. In either scenario, finding the right person with the right skill is our client's primary objective. Our solution, which combines scale and precision, help our clients achieve this objective.

A couple of highlights would demonstrate how this works. Career Ad Network is an excellent combination of large scale and audience combined with the ability to precisely target desired skills. CAN is a good example of how Monster reaches the talent market globally and targets the right candidate for the job.

During the first quarter, CAN represents nearly 10% of our Careers-North America bookings. None of our competitors offer comparable products. Power Resume Search, based on 6Sense Semantic search technology continues to gain traction with our clients and is the best product in the market to help recruit and manage the high volume of applicants and precisely identify the right candidate.

Since we launched the product in Q4 '09, we have sold an excess of $100 million of PRS products at an average premium price in excess of 30% above our flagship products. We launched PRS in Australia in early April. We are on track to launch in Germany this summer, in The Netherlands in late 2011, and in China in the first half of 2012.

Our next product to be launched based on 6Sense technology is our Enterprise Suite. The suite of products and analytics is specifically designed to help clients manage a high volume of candidates regardless of the source of those candidates and to quickly identify the right candidate. The ongoing trials are going well, and the overall interest is high. We are on track to launch the product in the upcoming months.

With the successfully integrated HotJobs, all Monster clients are now benefiting from the increased volume and quality of traffic resulting from the Yahoo! traffic deal. And all seekers are now benefiting from an increased availability of jobs and a more precise search capability. The HotJobs acquisition and Yahoo! traffic deal are operating well within our expectation.

As we all know, a rapidly increasing amount of Internet activity is taking place on mobile platform. During the quarter, we successfully introduced mobile apps for the iPhone, the iPad and Android platforms. The Monster iPhone app is among the top 3 business apps. We will continue to aggressively roll out mobile app on a global basis.

Moving on to our outlook for the second quarter and the rest of the year. Although overall economic growth remains sluggish, most major indicators of job creation and churn picked up during the quarter. We show strong performance throughout the first quarter on our key internal metrics as our clients are increasing their recruitment spend on a global basis. While our outlook is increasingly positive and our business remains strong, we are yet again in a time of substantial global, economic, and political uncertainty. The combined impact of both 100 -- of over $100 priced oil, political turbulence in the Middle East and the impact of the Japanese earthquakes and tsunami, they all caused a pause in the macroeconomic and employment recovery.

While at this stage, we are not seeing a negative reaction from our clients, we continue to proceed with caution, particularly on the spending front. With that backdrop, for the second quarter we expect bookings and revenue to be up 20% to 25%, year-over-year and earnings per share in the range of $0.06 to $0.10 per share.

Based on Q1 results and our outlook for Q2, we iterate [ph] our 2011 guidance for bookings and revenue growth to be in the range of 20% to 25%, with earnings per share in the range of $0.36 to $0.48 per share.

I would now like to ask James to provide some additional commentary.

James Langrock

Thank you, Sal, and good evening, everyone. Turning to Slide 1. Our first quarter pro forma income statement. Bookings of $272 million were up 24% on a year-over-year basis. Currency had a $1.6 million positive impact. Revenue of $264 million was up 23% year-over-year. Currency had a $1.2 million positive impact. Total operating expenses of $252 million was up 5% year-over-year. Currency had a negative $2 million impact. Interest and other expense was $1.6 million and equity loss was $600,000. Net income was $6.3 million, and earnings per share was $0.05, substantially improved from last year's first quarter loss of $0.14.

Slide 2 is our GAAP to non-GAAP reconciliation. Total adjustments negatively impacted the net income by $6.2 million. The pretax reconciling items in the quarter were: $2.7 million negative revenue impact resulting from the HotJobs purchase accounting adjustment; $1.2 million of salary-related expense primarily associated with the HotJobs integration; $6.8 million of office and general expense, which is comprised of $3.8 million of HotJobs integration costs and $3 million of charges related to previously exited facilities; and net realized gains of $1.1 million on auction rate securities.

The HotJobs integration costs totaled $29 million and were in line with our initial forecast. We do not expect to incur additional significant integration costs in future periods related to HotJobs.

Slide 3 is the first quarter pro forma operating expense trends summary. Total operating expenses increased by 2% sequentially. The breakdown of expenses is as follows. Salary-related was $134 million, a 7% sequential increase. Approximately half of that increase is attributable to an increase in benefits expense, primarily FICA, normally incurred on the first quarter.

Marketing expense was $58 million, a 10% decline from last quarter. Marketing spend is focused on driving the right audience at the optimal cost on a global basis. By any measurement, our U.S. traffic and audience substantially increased this quarter and we have now eliminated the traffic volume advantage that our top U.S. competitor previously enjoyed.

Our own improvements in targeting, sourcing and converting audience, together with the Yahoo! traffic deal, have allowed us to achieve this result while controlling marketing costs. Our marketing spend may vary on a quarterly basis as we react to opportunities around the world.

Office and general expense increased sequentially to $60 million. This increase was primarily related to product development spend and corporate expenses.

Total headcount at March 31 was 5,909, roughly a 60-person sequential increase, largely in China and emerging markets.

Slide 4 is our bookings and revenue trends summary. Bookings were $272 million, an increase of 24% year-over-year. As Sal noted, our global Careers business was up 28%, partially offset by anticipated flat year-over-year bookings in our IAF segment. North American Careers bookings increased 29% year-over-year. We experienced strong performance in our field, tele and e-comm channels.

This strong growth was partially offset by mid-single-digit growth in our federal government channel. While the federal government solidified its 2011 budget, we are still facing near-term uncertainties around the timing of some large deals closing in the pipeline. We have taken this in specific consideration in our forecast for Q2. It's important to note, however, that given the high level of business activity, we expect our government channel to grow in line with the company average in 2011 compared to 2010.

Europe's bookings increased 26% year-over-year, led by strong growth in Germany, France and Sweden. The Netherlands increase in a double digit range, while the U.K.'s growth was 9%. Asia Pacific's bookings also increased 26% due to solid growth in India and Korea, partially offset by slower growth in China.

IAF bookings were flat year-over-year due to continued weakness in military recruitment being offset by strong growth in Display Advertising.

Slide 5 shows the detail of our operating segments. As you can see, the operating margins within our career segment improved on a year-over-year and sequential basis.

Slide 6 is a summary of our key balance sheet and cash flow items. GAAP EBITDA was $33 million and pro forma EBITDA was $44 million. Net cash provided from operations was $49 million. Capital expenditures during the quarter were $17 million. Depreciation, amortization and stock-based compensation were $32 million.

For the full year, we currently anticipate CapEx at the range of $50 million to $60 million. Our deferred revenue balance of $399 million increased 31% compared to last year and 6% sequentially. Net cash was $71 million, a $32 million increase.

In summary, our Q1 performance validates our ability to execute on our financial objectives. Both revenue and bookings increased over 20% year-over-year while operating expenses increased only 5% during the same period.

We believe there is significant operating leverage in our business and remain committed to demonstrating that leverage. Under our based case, we remain fully committed to continued improvements in operating income and operating margins, with at least 50% of our incremental revenue dropping to operating income line during 2011. Our revenue and earnings per share guidance is consistent with that plan.

On Slide 7 and 8, we provide our outlook for Q2 and for the full year. For the second quarter, we anticipate bookings and revenue growth in the range of 20% to 25% and earnings per share in the range of $0.06 to $0.10. Based on Q1 results and our outlook for Q2, we reiterate our full year guidance. Bookings and revenue growth in the range of 20% to 25% and EPS in the range of $0.36 to $0.48. Now I'd like to turn the call back to Sal for his wrap up.

Sal Iannuzzi

Thank you, James. We are off to a strong start for 2011. Our management team is confident in our ability to execute on our strategy and deliver a strong financial performance.

Before turning the call over to the operator for your questions, I'd like to just take a moment. It is with great sadness that I report the passing in February of our independent lead director, Bob Chrenc. Bob led our board through a very important period of transition. Bob was instrumental in helping the company put the legacy options backdating issues behind us and in supporting the company as we make the necessary investments in our business.

Even in the face of a very severe recession, we believe the legacy of Bob's stewardship will benefit the company for years to come. His leadership and friendship are deeply missed.

Ed Giambastiani has assumed responsibility as interim lead independent Director and Roberto Tunioli will act as interim Chairman of the Order Committee. We thank Ed and Roberto for stepping up quickly into these important roles. Now I'd like to turn the call over to the operator for your questions.

Question-and-Answer Session

Operator

[Operator Instructions] Your first question is from the line of Jim Janesky with Avondale Partners.

James Janesky - Avondale Partners, LLC

My question has to do with the Government business, Sal and Jim. My understanding is it runs roughly about 10% to 12% of the Careers-North America. I mean, is that kind of the order of magnitude that is -- that you will -- that is being shifted into the back half of the year?

Sal Iannuzzi

Yes. The quarterly number is somewhere around 10% plus or minus. It can vary a little bit because the transactions in the government business tends to be large transactions, not large numbers of transactions, but just large individual transactions. So it does have the capability of being a little bit lumpy at times, but on average I would say it's in the [indiscernible] range.

James Janesky - Avondale Partners, LLC

And as a follow-up to that question, the order of magnitude, it hasn't gone to 0, but I mean it probably is approaching double digits that would be incremental to your revenues, is that correct?

James Langrock

Well, in Q1, the Government business was up in the mid-single digits, which we're very happy with, with all the turmoil that was out there with the continuing resolution. Right now, what we're forecasting for Q2 is we have a very significant pipeline in the Government business right now. So from a forecast perspective, there could be some large deals that could close in Q2, Q3. But from a forecast perspective, we believe by the end of the year with our significant pipeline, that the Government business will be in line with the growth rates for the company.

Sal Iannuzzi

Just to answer James' comments, Q1, we were a little cautious because of the government being under continuing resolution. We were uncertain as to whether or not [indiscernible] they'd be willing to commit to transactions given what was going on at the time. As we go into Q2, and there was so much discussion about having to reduce the budget overall and going into the new budget year, that we think that the potential is there for continued sluggishness in terms of the growth and some agencies' willingness to commit. But I think that the amount of interest that we have and particularly in terms of the types of projects that we're talking about, particularly in the area of veterans' affairs, employment for military personnel coming out of the military, et cetera, the pipeline is quite robust. So I think it's not an issue of continued sluggishness, it's just cautionary during this time of readjustment of government spend. And then we'll see more substantial investments in Q3 going into Q4 and beyond.

Operator

Your next question is from John Janedis with UBS.

John Janedis - UBS Investment Bank

Sal, I just wanted to talk more about some of the numbers. The midpoint of the guidance you have is about $1.125 billion in revenue. You've got a quarter in the bag, and obviously is it's this going to amount as deferred revenue and then also a strong bookings number for 2Q? Can you talk about maybe the swing factors this year as it relates to the revenue guidance? Specifically, can you actually quantify what you view as the revenue risk from government? Is it maybe $10 million over the course of the year?

Sal Iannuzzi

I think that as I articulated, there isn't a revenue risk with government. I think it's for the year. I think it's an issue of timing given what's going on with the government and readjustment, if you will, of the overall spend. So I really don't view the Government business on an annualized basis as a risk, but I think that we want to be cautious to just point that there may be some cautiousness on the part of agencies, which might cause a few million dollars to shift from one quarter to another. To be honest, we certainly felt that Q1 would be more sluggish than it was. It was certainly not anything I would call a spectacular quarter from the government perspective. We were relatively flat year-on-year, slightly up. But our expectation and the risk that we saw at that time was that they certainly -- a few transactions could be held back. And we'd, therefore, have a more significant, temporary shortfall. What we've seen is that did not materialize. We didn't grow very much, but we didn't go backwards. And I think that Q2 has the potential for doing the same thing. And so, what we think based on the interest that we have, the pipeline, it's not the most robust pipeline we've ever had in the government sector. It's certainly right up there in the 1 or 2 spots. And therefore, we think that for the year as a whole, the Government business will do very well and will contribute to our target. But whatever risk you may think is there, is built into the range of numbers that we're giving both for the quarter and for the year.

Operator

Your next question is from Mark Mahaney with Citi.

Neil Doshi - ThinkEquity Partners

This is Neil Doshi for Mark Mahaney. Sal, could you talk about the RPS pricing advantage? How sustainable do you think the 30% premium is? And then I have one more follow-up.

Sal Iannuzzi

Well, time is a wonderful thing in the sense that it kind of closed the case for you. The product has been out there now, not globally, but certainly in the United States. Almost a year, we've been able to maintain the price. We've had renewals of the product, customers coming back to buy more or continuing to replenish what they had bought, and the prices has been holding. And it's not just with PRS. What we are finding, in general, on pricing is that the market is stable as well as all the products, if you will. For example, job posting, traditional job postings, if I can use that term. But in products, where for example, PRS or products by CAN, et cetera, what we're seeing is we're able to command because of the effectiveness of those products, continuing to be able to command a premium. And in some cases, as the job market is tightening or the demands for people, particularly in certain sectors like technology, et cetera, and that as the markets are tightening, those products could become even more in demand, which is helping us somewhat [indiscernible].

Neil Doshi - ThinkEquity Partners

Great. And then we also saw nice improvement on the Careers International operating income side. As you get to expand into new countries like Brazil, should we -- will there be heavy investments related to those types of expansions, or just rather modest and we would expect continued operating income improvement?

Sal Iannuzzi

I think you should expect, certainly expect continued improvement. As we've said, any increase in revenue, at maximum we will spend only half of that for increase in expenses overall, and that includes investments in places like Brazil. I think that our plan is to continue to spend as we see opportunities. We continue to spend certainly within those parameters. But we enjoy now a great deal of flexibility on how we can spend. I think, just as an example, as a result of HotJobs transaction and the position we now enjoy with regards to traffic. We have enormous flexibility and able to make decisions to spend less in marketing, hypothetically, in North America and put some of those dollars to work either in marketing in other regions of the world or spend it in another way based on how the opportunities present themselves. And in some cases, we may find that we don't think it's necessary to spend any dollars that we have available. And those, of course, will be a return to shareholders. So we're in a position now where I think we enjoy more flexibility on where we can put our dollars to work. I think our plans, once again specific directly to your question, our plans to developing markets if you want to use that term for a moment, Latin America or Eastern Europe, is a steady growth. We may spike it up a little bit from time to time based on how opportunities present themselves, but certainly all within the parameters of no more than 50% of any increase in revenue will be spent. I would also like to point out that during Q1, we've seen dramatic increase in our business. Now dramatic in the sense of percentages. The numbers are still small, but we've seen dramatic increases in our business activity in Latin America as an example, Brazil in particular. And that's been done within those parameters. As a matter of fact in Q1, we spent roughly 25% of the increase in revenue, not even the 50% that we feel -- we didn't think that we needed to so we did a little bit better than that. Now in future quarters, we could have a quarter that we decide that it was appropriate for us to spend a little bit more or a little bit less, but certainly we're going to watch the expenses, continue to monitor the expenses very, very carefully given some of the issues that are still out there, the macro picture, the economic picture, et cetera.

Operator

Your next question is from Doug Arthur with Evercore.

Douglas Arthur - Evercore Partners Inc.

Jim, do you have D&A by segment exclusive of stock comp?

James Langrock

Could we take that off-line? I don't have that right in front of me. The depreciation and amortization by segment, I don't have that in front of me right now. But you can take that offline with me later.

Operator

Your next question is from Glenn Greene with Oppenheimer.

Glenn Greene - Oppenheimer & Co. Inc.

I guess the question would be just some color on the PRS, bookings trends, maybe specifically in North America because I know some of these other countries are just ramping. But any way to frame the growth in PRS bookings in North America and what the proportion of total North America was?

James Langrock

It's approximately 50% of our resume bookings in Q1. On the commercial side, the percentage is over 60% adoption on the commercial side for PRS. And it's going up. It's been increasing, both in volume and in customers.

Glenn Greene - Oppenheimer & Co. Inc.

Is that 50% specific to North America?

James Langrock

Yes. And we're seeing in France and the U.K., the trending was similar to what we saw in the U.S. So that has been increasing as well.

Glenn Greene - Oppenheimer & Co. Inc.

And that the resume as proportion of overall bookings is what, 35%?

James Langrock

Roughly, yes.

Operator

Your next question is from Mark Marcon with Robert W. Baird.

Mark Marcon - Robert W. Baird & Co. Incorporated

Just one similar question on job postings in North America. What are you seeing in terms of pricing and trends there?

Sal Iannuzzi

Basically, we're continuing to -- we're not seeing very much change, if you will. The pricing is relatively stable, where particularly now with the blend of the HotJobs activities as well as the, if you will, Monster activity, we're basically seeing trends on a blended basis being relatively flat, not markedly different. Where as I said before, we are seeing increase in prices, stability in premium pricing is in our newer and more unique products. Unique, being unique to Monster, PRS most notably.

Mark Marcon - Robert W. Baird & Co. Incorporated

And is job postings still around 55% or 50% of Careers-North America?

Sal Iannuzzi

I would say roughly about 50%.

Operator

Your next question is from Tobey Sommer with SunTrust.

Tobey Sommer - SunTrust Robinson Humphrey, Inc.

Most of my questions have been asked, but I was curious at the and of the fourth quarter, there was a little bit of weather that kind of impacted the closings. I was wondering if you've got a sense for whether you'd made them up. And then in the early part of the first quarter, to the extent the impact may have been felt from what was pretty severe weather in the first quarter itself.

Sal Iannuzzi

I'm glad you qualified that because I was worried you were going to say that we made it up with regard to the weather in Q4. I think that, joking aside, I think that as I said last time, if I had to quantify the mess and it all really happened towards tail end of the quarter, the very end of the quarter as a matter of fact. All other conditions that happened during the quarter, we were able to -- things would occur and we would make up for them. We would take actions that would alleviate whatever pressure on bookings or earnings, those events will cause. At the end of the year, as I have indicated, we simply ran out of talent design [ph]. So we also said that approximately half of what we missed, we thought it had not come back because it's optimistic, it's small sales, it's more individual transactions. And that tends to be the type of thing that either happens or doesn't happen and does not come back. Of the remaining half of the number, which I really think of in the framework of $2 million to $3 million, I think a little bit did come in Q1. There's still a little bit coming in, it's still out there and we hope to retrieve and probably in Q2. But just to put in context for you, even if I were to divide in half, I'm thinking it's a number in the $1 million, $1.5 million range. It's not much more than that at all.

Operator

Your next question is from Tim McHugh with William Blair & Co.

Sal Iannuzzi

Before we take that question, one thing I would like to add is that in Q1, we also had advancements. As everyone knows, a strong, local events, all sorts of things, those events occurred. During the course of the quarter and we were able to deal with them effectively. And for the most part, they did impact the quarter. I'm sure there's buried in them, particularly the transaction type of business. There was some negative impact to whatever the event was. But the quarter was, thankfully, more robust than we initially expected, and those things were able to be compensated for. I'm sorry, next question?

Timothy McHugh - William Blair & Company L.L.C.

I just wanted 2 quick questions. One is, I apologize if I missed this, but what do you expect for marketing expenses for the rest of the year? And then secondly, on the PRS systems, now that's been out there a little more than a year, how's the renewal rates as customers are coming back up for that? Is it consistent, better, worse than the other products?

Sal Iannuzzi

Jim, do you want to take the marketing question?

James Langrock

Marketing was $58 million this quarter. So as we see opportunistically, we will invest. But from a modeling standpoint, the $58 million, give or take a couple of million dollars, and like I said, as we see opportunities to invest, we will. But it would be in that range, give or take $2 million, $3 million on a quarterly basis and it could go a little higher or lower depending on as we see opportunities on and how the traffic is performing on a worldwide basis.

Sal Iannuzzi

I wanted to keep focus and I know that marketing expense is a material part of our expense load, but I want to point out that even when we see those opportunities, we are -- our intent is strongly to stay within that parameter of 50%. Our overall expense growth would grow no more than 50% of our increase in revenue. So we do not intend, at this point, to exceed that overall expenditure. And as I said before, we are able to manage the marketing cost, I think much better than we were in the past because we just have greater flexibility on where we can apply those dollars than we did before. So I think that between that flexibility, we've gotten a lot better, a lot smarter in terms of the value we get for the dollars spent. So we're able to manage that number, if you will, more effectively than we were ever able to manage it in the past. But again, I want to emphasize that expenses overall, we see nothing on the horizon right now that will cause us to question whether we would be able to stay within that 50% parameter. Can you repeat the second part of the question, please?

Operator

Just one moment.

Sal Iannuzzi

I have the question. With regard to the PRS renewal, we're staying at that -- we're at that 50% to 60%, 50% on the commercial side, particularly, is a very strong position for us to be in. I think that we are definitely seeing renewals. Customers like the product. It is a different method of doing search. And people, clients, are getting more used to it, if I can use that phrase. And so they're engaging with them and we see no pullback or anything of that nature. As a matter of fact, we continue to see momentum forward.

Operator

Your next question is from John Blackledge with Credit Suisse.

John Blackledge - Crédit Suisse AG

My question's on bookings. So it looked like in North America that bookings growth accelerated in the first quarter versus 2010 levels. Just wondering what the driver was there. And then, Asia Pac bookings growth seemed to decelerate from 2010 levels and I think you said that China was a bit slower. I was wondering what China booking number was and what happened there.

James Langrock

So with China, the growth, it was lightly below the regional average, around 20%. It was off of a difficult comp from Q1 of 2010. So it's obviously a very important market for us. So the 20%, we believe that, that will reaccelerate in Q2 and for the remainder of the year. So it was around 20% in Q1.

Sal Iannuzzi

And just to once again to add a little bit more, I think that just keep in mind that in Q1 of 2010, as James was indicating, growth was very steep in China. It was an excess of about 60%. So coming off that comp, pretty hard to -- it's a hard act to follow. But we continue to -- we think that given the momentum in that market the rest of the year, we will continue to enjoy and see significant growth. The rest of Asia Career and predominantly Korea and India continue to perform very well.

James Langrock

But in North America, we've said in North America the bookings growth, as you've mentioned, we're seeing it in telesales, our e-comm business as well as our enterprise. So we're seeing it across the board throughout the business in North America. And again the 29%, that's with the government business being mid-single digits. So we were seeing it pretty much across the entire North America and all the regions within North America.

Operator

Your next question is from Craig Huber with Access 342.

Craig Huber -

My question has to do with the international profits. Is there much you can do at this stage to help consolidate any costs further overseas to help drive profits here? It's awfully a big operation, but your margins are obviously substandard in your minds, I'm sure.

James Langrock

So the international margin which we've mentioned before, is we have developing markets as well as China where we are currently investing in those. But if you look at Europe, we do have a lot of -- we are a functional organization. We have shared service so we do have a lot of centralized cost there. So if you strip out the impact of Brazil and China, the international margin starts getting a lot closer to the North American margin. So we are investing in very important markets in Brazil and China, and that is impacting our margin. But that will improve as the profitability of those two regions improve.

Sal Iannuzzi

And just to add to that, we also, a while back we talked about 25% operating margin. That is still our target. And we see that given the opportunity that we now have, a lot of paid work has been done to leverage, new products, our technology platforms, et cetera, around the world. So as we introduce products, as we bring products to other parts of the world and leverage the work we do, we're able to do it on a much more efficient basis than ever before. We can launch products now in 20, 30 countries simultaneously; where before, we could perhaps do 1 or 2 countries at a time, and then even that was with substantial risk. So we're in a very different place, and therefore, our ability to leverage the business on a global scale is significant and it's one reason why we think that the globalization -- the franchise continues to evolve geographically. We will continue to -- our ability to gain benefit from that will deepen.

Craig Huber -

My other question, if I could. Is there so much regional differences in your business, in the U.S., in the West Coast, in particular I'm wondering about, in terms of revenue growth.

Sal Iannuzzi

Not on an overall basis. I mean, you may have a quarter where, hypothetically, the Northeast is more robust than the West Coast, but the West Coast is more robust than the Southeast. But on an overall basis, over a reasonable period of time, it really isn't.

James Langrock

And also within the regions, within our business, we are seeing, in the West Coast, you're talking more around tech, we're seeing strong growth in our technology segment within the regions.

Operator

And your final question will come from the line of Glenn Greene with Oppenheimer.

Glenn Greene - Oppenheimer & Co. Inc.

Just a quick follow up, but I figured I ask you the social networking question. Sort of what you're seeing there and your thoughts on the LinkedIn to the world, and perhaps getting a share of the recruiting budgets and has that impacted you. And I think you might have done an interview earlier where you thought it was sort of complementary. I wondered if you could just sort of talk about what you're seeing there.

Sal Iannuzzi

First of all, with regard to social networking, as I said, I guess on that interview, we really view social networking as a methodology, as something that's beneficial to us. It allows us to add more to our product portfolio and our ability to furnish our clients with a different methodology to fulfill the recruitment need. So we view that very positively as another direction Monster to take and combine that with our existing products and continue to improve the breadth of the product offering. I think with regard to competitive pressure, if you will, from a LinkedIn or from any other, I think were very satisfied right now with the fact that Q1 did come in at a bookings number of 24%. It is certainly at the high end of what our expectations were for the quarter. So I'm sure that there is some portion of customer budget going to some new areas, whether it be social networking or others, but it has outperformed us. It still has been very robust.

Operator

At this time, I would like to turn the call back over to Ms. Lori Chaitman to conclude.

Lori Chaitman

Thank you, all, for joining us this evening, and we look forward to speaking with you again shortly. Thank you.

Operator

Thank you. This does conclude today's conference call. You may now disconnect.

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