Hotjobs May Start Lookin' Way Cool
Although its stock, like that of most other dot-coms, has plunged 75% from its high in October, Hotjobs.com (HOTJ ) may surprise the Street with better than expected first-quarter results, says a source close to the online job recruiter. Hotjobs' 9,100 corporate clients include IBM, Microsoft, PricewaterhouseCoopers, and Nike. They subscribe to its services and each pays basic monthly fees that account for 74% of Hotjobs' revenues. Employers usually pay big contingency fees to other agents for each job compared with an average monthly fee of $800 paid to Hotjobs.
Revenues have been zipping up, from $9 million in 1999 to $97 million in 2000. CEO Dimitri Boylan says that despite the slowing economy, employers in both tech and nontech companies continue to hire skilled workers, in part because they are available following layoffs in various industries.
Kelly Flynn of UBS Warburg figures revenues will rise to $147 million in 2001. Hotjob's depressed valuation is too attractive to pass up, says Flynn. One source thinks Hotjobs will beat first-quarter estimates with a narrower loss and post earnings in the third and fourth quarters--rather than in the fourth quarter as analysts project.
By Gene G. Marcial