Kenexa Improves

Kenexa logo newThe company improved its financial performance over 2008 in a big way, though it still lost millions. Reporting its annual and 4th quarter numbers on Feb. 2nd, Kenexa said that for the year it lost $31.1 million on revenue of $157.7 million. Though the 2009 revenue was off 22.6 percent from 2008, the loss was more than two-thirds smaller than the $104.7 million it lost in 2008.

On a positive note, Kenexa did manage a small profit of $355,000 for the 4th quarter.

The sharp decline in 2009 revenue and Kenexa’s warning that revenue would improve only slightly — $160 million and $168 million — this year prompted a decline in the stock price. It closed at $11 a share before the financial release, dropped sharply in after hours trading, but regained most of the ground and closed today at $10.53.

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Meanwhile, today Kenexa reported it was rated a “major player” in the annual IDC MarketScape: Worldwide Integrated Talent Management 2010 Vendor Analysis. According to Kenexa’s announcement, IDC described it as having “strengths in global reach, tools to help prospects and clients justify investment, and a large R&D organization that takes advantage of offshore resources.”

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. 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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1 Comment on “Kenexa Improves

  1. Yeah, they improved – to a loss of $31M on $157M. Do any of the larger RPO companies really make money? So many of them seem to have very thin margins, lose money on every deal, and then seem to think they can make it up on volume (which just causes larger losses). This commoditizes the business in spite of the fact the end product (people) is NOT a commodity. The larger public RPO organizations I’ve personally looked at seem to loose money even on growing revenue. My own personal opinion is that it is a flawed business model that is ultimately very bad for the recruitment business as a whole. On the other hand, you can’t stop a tidal wave.

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