Kenexa Has A Winning Quarter But Dampens Wall Street’s Enthusiasm

Kenexa (profile; site) earned $9 million or 39 cents a share for the quarter ended June 30, beating Wall Street’s estimate of 35 cents and joining Taleo and Monster in reporting better than expected results.

The company’s $56.4 million in revenue was an increase of 25% over the $45.2 million for the same period in 2007. The company provides full life-cycle talent management software and multiple additional products including assessments and RPO services.

Kenexa’s CEO Rudy Karsan did a little crowing in the financial announcement, which was released after the market closed Monday. “The combination of solid sequential growth and integration of Quorum International enabled Kenexa to become the first independent talent management vendor to pass the $200 million in annualized revenue level during the second quarter,” he said in the typical, curbed enthusiasm of the financial announcements of publicly-held companies.

Quorum International was a London-based RPO provider to Europe, Africa and the Middle East. The company was purchased for an undisclosed sum in April.

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Kenexa told investors and analysts that it expected its current third quarter to come in at between $57 million and $59 million, which is about $10 to $12 million more than during the third quarter of 2007. After expenses, that translates to 38 to 39 cents in earnings, the company said. Analysts were expecting 40 cents a share earnings on $61.7 million in revenue.

John Zappe is the editor of and a contributing editor of John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.


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