Uncertainty surrounding big government deals is keeping job board Monster.com from closing some large transactions in the pipeline, according to an article from Forbes posted today.
These deals are pivotal to revenues, as Monster claims that more than 10% of its north American profit comes from the federal government.
While overall, North American business growth came in at a healthy 29% during the last quarterly earnings report, federal government revenues are stalling at 5%.
But Monster said that it remains confident big deals will get closed and this segment will fuel growth, helping it fend off rivals.
Monster officials said during the earnings call, “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…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.”
According to Forbes, Monster has also seen a drastic decline in the number of new job postings on its site in North America. This number declined from around 1.9 million in 2007 to 1.1 million in 2010, largely due to the recession.