Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Wayne Chang – Canaccord Adams
Wayne Chang – Canaccord Adams
Just really quickly, I know you already implicated a Q2 RPM’s are probably going to be a little bit weaker, but I just wanted to find out whether you were seeing any moderation in the CBC decline, I think yours was about down sequentially roughly 8.5%, which is consistent with what the market was expecting for Q1. Are you seeing that sort of moderating over the next several quarters of what you’re seeing in April so far.
Bruce Smith
As you said the decline in Q1 was about 8.5% and as Steve said we’ve seen continued decline into April. I really don’t want to quantify it and we’ve built in an expectation of a decline into our forecast but we have seen a continued decline in April but its not of the magnitude that we saw between Q4 and Q1 because you have the seasonality from Q4 to Q1. But we have seen some weakness additionally in April.
Wayne Chang – Canaccord Adams
Right and is that probably because its probably more heavily weighted on the CPM side, even though its only, what 5% to 10% of your business or—
Bruce Smith
No for us that weakness is more on the ad sense side then the CPM side.
Wayne Chang – Canaccord Adams
Great and can you give me an update in terms of any new ads in terms of your staff or number of volunteers in your community.
Bruce Smith
On the community side we’re closing in on 600 supervisors, I think we’re at about 575. And we are adding staff as you saw in the headcount additions and we would expect our headcount to increase in Q2 versus Q1 as well.
Operator
Your next question comes from the line of Colin Gillis – Brigantine Advisors
Colin Gillis – Brigantine Advisors
Great quarter, so when you look out and you think about the increase in query volume, its predominantly going to be coming from new users, but how much of this is going to be coming from the existing community.
Bob Rosenschein
As you know the overwhelming majority of our traffic is from SCO. To the extent that we can direct and keep that traffic on our site by getting them to ask questions, and we had a tremendous success late in 2008 with our new header in terms of getting more questions asked and answered. That’s the goal to increase our traffic.
- To read the full transcript on Seeking Alpha, click here »
