Dhi Group, Inc. · NYSE:DHX
Dhi — Q2 2021 Earnings Presentation
24 slides from Dhi's earnings presentation, Aug 5, 2021
Slide 1: Q2 2021 Investor Presentation
Q2 2021 Investor Presentation August 5, 2021 NYSE: DHX
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: Our vision: indispensable career marketplaces
Our vision is to create indispensable career marketplaces to match the highest quality candidates with the right client career opportunities.
Slide 4: Company Overview
Company Overview • Founded: 1990 • Year-End: 12/31/20 • Listed: NYSE: DHX (2007) • Diluted Shares Outstanding: ~ 48M1 • Headquarters: Denver, CO • FY 2020 Financial Results ◦ Revenues: $111M • Employees: ~ 400 ◦ Bookings2: $110M • Total Clients: ~ 8,224 ◦ Loss from Continuing Operations3: $32M • Can
Slide 5: Second Quarter 2021 Financial Highlights
Second Quarter 2021 Financial Highlights • Revenues: $28.7 million, up 4% YOY. ◦ Dice revenues: $20.6 million, flat YOY ◦ ClearanceJobs revenues: $8.1 million, up 15% YOY • Loss from Continuing Operations: $0.2 million, which was negatively impacted by $1.1 million from an unrealized loss on an equi
Slide 6: DHI Business Model Elements
DHI Business Model Elements • Clients pay for job advertising and profile/resume views • Greater than 90% Subscription Based Revenue • 67% of Annual Contracts Paid Upfront • 81% Revenue Renewal Rate • Candidates do not pay for access to platforms *Metrics are based on trailing twelve months for comb
Slide 7: Tech Candidate Marketplace
Tech Candidate Marketplace 2020 Revenue: $82M Clients: 5,441 Subscription Clients Growth Opportunity: Staffing, Recruiting Consulting Commercial Accounts 7
Slide 8: Cleared Professionals Marketplace
Cleared Professionals Marketplace 2020 Revenue: $29M Clients: 1,784 Subscription Clients Growth Opportunity: Government Agencies 8
Slide 9: 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 2021 Revenue Annual Growth 21-26 Key Statistics Snapshot $13.1bn 9% Profit Margin Businesses $11.6% 2,249 IT Talent Generates ~ 6.6% of Online Recru
Slide 10: Demand for Technology Talent to Accelerate
Demand for Technology Talent to Accelerate Companies Globally Must Rely on Tech Talent to Advance Innovation *Global Jobs, not limited to United States Source: Microsoft Data Science whitepaper "Methodology: Digitization Capacity of the World Economy" 10
Slide 11: DHX: In the Midst of Transformation
DHX: In the Midst of Transformation From Job Board to Marketplace 11
Slide 12: Product Innovation
Product Innovation = . a . = ciearancesobs ZE clearancesobs Team Recruiting Meetings Q221 Q121 ZE clearancesods’ Self-Serve BrandAmp Q420 DHi
Slide 13: 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 9+ years creating a data model that captures the relationship between 100,000+ tech skills • Machine Learning allows DHX to constantly improve its skil
Slide 14: 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 and candidates likely- to-switch 14
Slide 15: 2021 Go-To-Market Transformation
2021 Go-To-Market Transformation • Dice Marketplace Evolution • Strong Sales + Marketing Leadership • Expansion of Dice Commercial Accounts Team • Activation of Additional Marketing Channels + Awareness Campaigns • ClearanceJobs Engages Government Accounts 15
Slide 16: DHI Revenues
DHI Revenues Dice revenues declined during FY 2020 and in Q1 2021 due to the impacts of COVID-19 but increased sequentially and YOY in Q2 2021 as COVID-19 restrictions were lifted and our customers returned. Revenues for ClearanceJobs increased 15% YOY and increased 7% from Q1 2021. 16
Slide 17: Profitability
Profitability 1 Business Outlook Expect Adjusted EBITDA Margin1 in 20% range for the remainder of 2021. 1 Notes regarding the use of Non-GAAP financial measures and GAAP to Non-GAAP Reconciliation at end of document. 17
Slide 18: Liquidity Snapshot
Liquidity Snapshot Strong operating cash flow in 2Q21 Operating Cash Flow & Capex ($ in millions) Debt & Cash ($ in millions) Operating cash flows of $12.9M in Q2 2021 and $18.7M in FY 2020. Net debt1 of $8.1M as of June 30, 2021 1 Notes regarding the use of Non-GAAP financial measures and GAAP to N
Slide 19: DHX Investment Thesis
DHX Investment Thesis • Focused on career marketplaces for technologists • Tech Market for Online Recruitment Tools is Growing • Tech Market Focus Plays to our Innovation in Collecting + Mapping Skills • Leadership Team Drives Functional Strength + Focus • Demonstrated Success of Product Innovation
Slide 20: ainecine
ainecine Futures x Pi ee NYSE: DHX
Slide 21: Supplemental Data - Customer Data
DHI Group, Inc. Supplemental Data - Customer Data (Unaudited) Dice Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Bookings1 (in millions) $ 29.8 $ 23.5 $ 18.1 $ 20.9 $ 29.0 $ 16.1 $ 14.7 $ 19.2 $ 27.9 $ 20.2 Recruitment Package Customers 6,100 6,100 6,100 6,000 5,850
Slide 22: 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 23: Supplemental Data - Non-GAAP
DHI Group, Inc. Supplemental Data - Non-GAAP (Unaudited) (Dollars in millions) Q1 Q2 Q3 Q4 Full Year1 Q1 Q2 2020 2020 2020 2020 2020 2021 2021 Reconciliation of Net Income to Adjusted EBITDA Net Income (loss) $ (6.6) $ 1.9 $ (27.3) $ 2.0 $ (30.0) $ 2.7 $ (30.2) Interest Expense 0.2 0.4 0.3 0.2 1.0 0
Slide 24: Supplemental Data - Non-GAAP
DHI Group, Inc. Supplemental Data - Non-GAAP (Unaudited) (Dollars in millions) Q1 Q2 Q3 Q4 Full Year2 Q1 Q2 Adjusted Diluted Earnings per Share 2020 2020 2020 2020 2020 2021 2021 Diluted earnings (loss) per share $ (0.13) $ 0.04 $ (0.57) $ 0.04 $ (0.62) $ 0.05 $ (0.64) Impairment of goodwill, intang