Monster Worldwide Reports Second Quarter 2004 Results

Monster Worldwide, Inc. (NASDAQ:MNST), the parent company of the leading global online careers property, Monster(R), the world’s largest Yellow Pages advertising agency and one of the world’s largest Recruitment Advertising agency networks, today reported financial results for the second quarter ended June 30, 2004.

Second Quarter Results

Total revenue for Monster Worldwide increased 26% in the second quarter of 2004 to $209.4 million from $166.7 million reported in the same quarter of 2003, due to continued strong performance at the Monster division, the contributions of strategic acquisitions and improved results at the Advertising & Communications Division. The Monster division recorded $141.9 million of revenue, a 41% increase over the $100.6 million recorded in the comparable quarter last year. The division produced 22.5% organic revenue growth over the prior year quarter, with acquisitions adding $17.3 million of revenue to the second quarter growth. Compared to the first quarter of 2004, revenue at the Monster division increased 16% overall and 5.7% organically. The Monster division’s deferred revenue balance reached a new high of $178.9 million as of June 30, 2004, an overall increase of 11% over the $161.3 million recorded in the first quarter. On an organic basis, the division’s deferred revenue increased 2.5% over the first quarter of 2004. Consolidated net income for the second quarter of 2004 increased to $16.2 million, or $0.14 per diluted share, compared to net income of $9.6 million or $0.08 in the same period in 2003.

Andrew McKelvey, Chairman and Chief Executive Officer of Monster Worldwide, said, We are pleased with our strong second quarter results and the continued momentum we are deriving from the solid execution of our strategies by our sales force and operating team. The revenue and deferred revenue increases achieved by the Monster division in the quarter reflect the benefits of the sales force expansion and marketing activities we implemented earlier in the year, as well as contributions from our recent strategic acquisitions. Given the traction of our business initiatives and the improving conditions of the broader employment marketplace, we are confident that we will continue to achieve revenue and earnings growth in the second half of 2004.

Cash generated from operating activities was $17.4 million in the second quarter of 2004, a $33.6 million improvement over the $16.2 million of cash used for operating activities in the comparable 2003 quarter. The Company’s cash position was $82.2 million at June 30, 2004, which reflects net cash used for acquisitions of $90.2 million in the second quarter of 2004. Cash and cash equivalents at March 2004 and December 2003 were $155.9 million and $142.3 million, respectively. Debt increased $36.6 million in the second quarter of 2004, reflecting future purchase price commitments related to the Tickle acquisition. These commitments are payable over the next three years. As a result of the above, net cash at June 30, 2004 decreased to $25.4 million from the $135.7 million reported at March 31, 2004.

Six Months Results

Monster Worldwide reported total revenue of $397.1 million for the six months ended June 30, 2004, compared to $335.2 million in the comparable prior year period. Income from continuing operations was $29.0 million, or $0.24 per diluted share, compared to a loss of $18.1 million, or a loss of $0.16 per share from continuing operations in the prior year period. Non-GAAP income from continuing operations was $20.4 million or $0.18 per share for the six months ended June 30, 2003.

Recent Developments/Operating Highlights

-- Monster Expands Presence in Consumer Business

On May 24, Monster Worldwide announced the acquisition of Tickle Inc. (www.tickle.com), the market leader in online career assessment testing, serving more than 18 million active members. The addition of Tickle’s popular interpersonal content and subscriber services in the areas of self-discovery, career assessment and social networking is expected to expand Monster’s subscriber base, enhance its career-related content and further fuel its viral marketing growth.

-- U.S. Olympic Team Sponsorship

Monster, the official online career management sponsor of the 2004 U.S. Olympic Team, recently announced the formation of Team Monster. Comprised of athletes representing five Olympic sports and competing in the 2004 Olympic Games in Athens, Team Monster members serve as key spokespeople at featured events pre- and post-Olympic Games. Monster has also continued developing the successful TeamUSAnet website, the first-ever career management website designed exclusively for U.S. Olympic athletes and Olympic hopefuls. TeamUSAnet, a joint effort between Monster and the United States Olympic Committee (USOC), features an assortment of career management tools, including a resume builder, job search access, an Olympic mentoring network, and other distinctive content that caters specifically to athletes. It has now received over 1,900 profile entries from Olympic athletes and hopefuls since its creation in 2002.

-- Monster and Community Connect Sign Strategic Alliance

Monster signed a strategic Diversity and Inclusion recruiting alliance with Community Connect Inc. (CCI), the leading developer of dedicated online membership sites that serve underserved communities on the Web. With more than 18 million registered members, CCI websites are leading destinations for Asian Americans, African Americans and Latinos on the Internet.

-- Tapping Local Markets, Attracting Small Business Owners with

eBay

Monster’s strategic marketing agreement with eBay and its title sponsorship of the eBay Live! 2004 Community Conference in June is giving Monster prominent exposure to eBay’s large base of users. Monster’s presence on the eBay homepage enables eBay users, many of whom are small business owners, to easily access Monster’s industry-leading career tools and services with a click of a button. In addition, as part of its sponsorship of eBay Live!, Monster offered educational seminars to small business owners about how Monster can help them recruit most effectively to grow their business.

Outlook

Based on favorable market conditions and the Company’s strong financial performance in the first six months of the year, Monster Worldwide expects to report continued strong revenue and earnings growth as the year progresses.

In the third quarter of 2004, revenue growth at Monster Worldwide and at the Monster division is expected to increase sequentially and year over year on both an actual and organic basis. While investments in sales related initiatives will continue in the third quarter of 2004, revenue growth is expected to outpace the increased expenses. The Company anticipates reporting progressively improving consolidated operating margins in the second half of the year. As a result, third quarter diluted earnings per share is expected to be $0.16, representing strong sequential growth and a 45% increase over last year’s third quarter diluted earnings per share of $0.11.

Conference Call Information

Second quarter 2004 results will be discussed on Monster Worldwide’s quarterly conference call taking place on July 28, 2004 at 10:00am EDT. To join the conference call, please dial in on 1-888-323-9686 at 9:50 AM EDT and give the operator the password Monster. For those outside the United States, please call in on 1-773-756-4621 and give the operator the same password. The call will begin promptly at 10:00 AM EDT. Individuals can also access Monster Worldwide’s quarterly conference call online through the investor information section of the Company’s website at www.monsterworldwide.com.