Dhi Group, Inc. · NYSE:DHX
Dhi — Sidoti & Company Fall 2019 Investor Conference
21 slides from Dhi's conference presentation, Sep 25, 2019
Slide 1: Sidoti & Company Fall 2019 Investor Conference
NYSE: DHX // Sidoti & Company Fall 2019 Investor Conference // Luc Gregoire // CFO
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and oral statements made from time to time by our representatives contain forward-looking statements. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to our operations and bus
Slide 3: Tech Focused Career Marketplaces
Tech Focused Career Marketplaces Our vision is to create indispensable career marketplaces to match the highest quality candidates with the right client career opportunities. Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 3 NYSE: DHX
Slide 4: Company Overview
Company Overview • Founded: 1990 • Year-end: 12/31 • Headquarters: New York City • Diluted Shares outstanding: ~52M • FY 2018 Financial Results • Listed: NYSE: DHX (2007) • Revenue: $162M • Employees: ~500 • Adjusted Revenue1: $152M • Customers: ~12,000 • Diluted EPS: $0.14 • Brands • Net Income: $7
Slide 5: Second Quarter 2019 Financial Highlights
Second Quarter 2019 Financial Highlights DHI Group Reports Continued Growth in Ongoing Tech-Focused1 Revenue • Revenues: $37.4 million. Ongoing tech-focused1 revenues were up 1% year over year and 2% excluding the effect of foreign exchange • Dice revenues: $23.2 million, down 1% YOY, and up slightl
Slide 6: Three Tech-Focused Brands
Three Tech-Focused Brands Premier Tech Pro Marketplace Global Finance Marketplace Cleared Professionals Marketplace • Leading database for tech • Global financial services careers • A leading database of security professionals, managing over platform – available in 18 cleared professionals, with ove
Slide 7: Three Tech-Focused Brands
Three Tech-Focused Brands Geo Focus 2018 Revenue ($M) Growth Opportunity * Product Innovation United States $94 Commercial Accounts Product Innovation Global Financial Markets $34 Asia Pacific Tier II Banks Double Digit Growth United States $21 Government Agencies * 92% Subscription Based Revenue Ty
Slide 8: With Loyal Customers
With Loyal Customers Premier Tech Pro Marketplace 6,100 Subscription Clients ~20% of the Fortune 1000 Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 8 NYSE: DHX
Slide 9: With Loyal Customers
With Loyal Customers Global Finance Marketplace 1,000 Subscription Clients 57% of the Global 100 Banks Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 9 NYSE: DHX
Slide 10: With Loyal Customers
With Loyal Customers Cleared Professionals Marketplace 1,700 Subscription Clients 97% of top 50 US Defense Contractors Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 10 NYSE: DHX
Slide 11: The Market for Online Recruiting is Large and Growing
The Market for Online Recruiting is Large and Growing… And Technology Occupations Are The Sweet Spot Industry at a Glance Online Recruitment Sites in 2018 Key Statistics Revenue Annual Growth 18-23 Snapshot $7.7bn 7.3% Profit Businesses $881.8m 1,200 IT Talent Generates ~9% of Online Recruiting Reve
Slide 12: DHX is in the Midst of Transformation
DHX is in the Midst of Transformation Past Today Job Board/Advertising Emphasis Career Marketplace 8 Non-Synergistic Brands 3 Tech Focused Brands Low Innovation Pace High Innovation Tempo Siloed Brand Teams Centralized Functional Teams Declining Revenue Growing Revenue Sidoti & Co. Fall 2019 Investo
Slide 13: 2019 Strategic Initiatives
2019 Strategic Initiatives Focus on Revenue Growth Bring ClearanceJobs 2018 Success to Dice and eFinancialCareers2019 Expand Skills Data Model Modernize Dice.com Website Add Commercial Accounts Sales Team to Accelerate Customer Acquisition Improve Marketing Approach to Accelerate Candidate Acquisiti
Slide 14: Key Differentiator: Skills Mapping
Key Differentiator: Skills Mapping • Tech recruiting is all about the unique skills required by a position and the candidate profile • DHX has spent 7+ years creating a data model that captures the relationships between 100,000+ tech skills • Machine Learning allows DHX to constantly improve its ski
Slide 15: IntelliSearch
IntelliSearch • Paste entire job description instead of title to return results • Algorithmic search powered by predictive analysis, artificial intelligence + machine learning • Relevance results prioritize fit (skills and adjacent skills) over quantity • Candidates who are likely- to-switch combine
Slide 16: Business is at an Inflection Point
Business is at an Inflection Point 2 2 17% ClearanceJobs DHI Core1 2% -5% Reached an inflection point for the business and crossed the line to revenue growth in Q1 2019 Expect Adjusted EBITDA margin to be approximately 23% in the second half of 2019 1DHI Core: Tech-focused, excluding Dice Europe and
Slide 17: Profitability Snapshot
Profitability Snapshot Good Profitability Profile Tight Investment Discipline Generating Solid Cash Flow Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 17 NYSE: DHX
Slide 18: DHX Investment Thesis
DHX Investment Thesis Market for Online Recruitment Tools is Growing Tech Market Niche is Attractive and Plays to our IP in Collecting and Mapping Tech Skills New Management Drives Functional Strength and Focus Demonstrated Success of Product Innovation with ClearanceJobs Set for Operating Leverage
Slide 19: NYSE: DHX
~ eX cciite Futures NOW ‘eo - NYSE: DHX
Slide 20: Notes regarding the Use of Non-GAAP Financial Measures
Notes regarding the Use of Non-GAAP Financial Measures Notes Regarding the Use of Non-GAAP Financial Measures The Company has provided certain non-GAAP financial information as additional information for its operating results. These measures are not in accordance with, or an alternative for, measure
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation DHI GROUP, INC. NON-GAAP SUPPLEMENTAL DATA (Unaudited) (dollars in thousands except per customer data) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year Quarter 1 Quarter 2 2018 2018 2018 2018 2018 2019 2019 Reconciliation of Revenues to Adjusted Revenues: Revenues $
DHI Group — Sidoti & Company Fall 2019 Investor Conference on 6ix