51job Drops on Weak Q2 Results
Chinese HR company 51job Inc. (Nasdaq: JOBS) saw its stock fall Tuesday after it posted weak second-quarter results.
The Shanghai-based company said in a statement today that in the three months through June revenue tanked 14% year-over-year to $117.3 million. Net income was $23.4 million, compared with $38.9 million in the same period in the previous year.
51job attributed the revenue decline to its online recruitment services, which declined 17.6% from the corresponding period in 2019. The decline was due to the significant impact of the Covid-19 pandemic and global economic uncertainty. Client companies reduced their recruitment demand and curtailed spending on online recruitment platforms.
Rick Yan, the president and chief executive officer of 51job, stated, "While economic recovery is underway in China and we have seen steady improvement in labor market activity since March, hiring tends to be a lagging indicator, and companies remain careful and selective in adding headcount amid lingering uncertainty from the COVD-19 pandemic and geopolitical tensions."
He added, "With our strong financial and competitive position, we will continue to prioritize new product development, strategic investments and operational improvement that we expect to drive our future growth and success."
Looking forward, 51job expects to generate revenue of between $116.1 million to $123.1 million in the third quarter.
According to the company, 51job has more than 100 million registered members. Operating for more than 20 years, 51job operates platforms 51job.com, yingjiesheng.com, 51jingying.com, lagou.com, 51mdd.com, and mobile applications.
51job's stock fell 3.36%, closing at $67.93 in New York.