Dhi Group, Inc. · NYSE:DHX
Dhi — 18th Annual B. Riley Investor Conference (May 2017)
26 slides from Dhi's conference presentation, May 24, 2017
Slide 1: 18th Annual B. Riley Investor Conference
Luc Gregoire Chief Financial Officer 18th Annual B. Riley Investor Conference May 24, 2017
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: DHI Today Led by Tech
DHI Today Led by Tech Leading Tech Online Professional Recruiting Platform Developing Next-Generation 7 Specialized Recruiting Brands Recruitment Services 15K+ Clients Global Infrastructure Proprietary and Scaled Talent Community Data Searchable profiles including resume & social info 3
Slide 4: Tech-Focused Strategy
Tech-Focused Strategy 3 Tech Recruiting Brands Developing Next-Generation Recruitment Services ~10K Clients Global Infrastructure with 10 Offices Proprietary and Scaled Talent Community Data Searchable profiles including resume & social info 4
Slide 5: Leading Technology Career Focused Online Community
Leading Technology Career Focused Online Community 5
Slide 6: Growing $8+ Billion Industry
Growing $8+ Billion Industry ’16 –’18E Key Secular Trends CAGR $8.7B Global Online 5.6% Mid-single digit long-term Recruiting growth for online recruiting spend $6.3B 2.4% U.S. Online Recruiting(1) Global skills gap (especially for highly-skilled professions) 7.4% Increasing usage of $3.7B mea
Slide 7: Our Industry is Evolving…
Our Industry is Evolving… • Recruitment is becoming more strategic within organizations, and less of a tactical initiative Industry Forces • Recruiter demand for “passive” talent will continue to rise • Companies will have to transform how they recruit, searching for candidates wherever they are Emp
Slide 8: Employers Require More
Employers Require More Job posting Resume search Other inbound / referrals Manual screening and testing Phone, in-person Engage Pipeline Applicant Tracking System Screen & Assess + Active / passive mode Job posting + Resume search + Social search + Recruitment & employer brand marketing + Manage tal
Slide 9: We’re Evolving With The Industry
We’re Evolving With The Industry 9
Slide 10: Tech Is a Significant Opportunity
Tech Is a Significant Opportunity • Tech recruitment is an important pain point for most firms o Tech professionals are dispersed and possess a unique combination of skills • Demand for tech talent is forecast to grow over next decade o All companies are transforming into digital businesses • Supply
Slide 11: Go-To Site for Tech Pros
Go-To Site for Tech Pros Focus: Focus: • Staying relevant • Finding jobs • Job market awareness • Evaluating employers • Get the job/project done • Becoming “searchable” more efficiently Job & Opportunity Discovery Performing on the Job (Active) (Passive) Career Development (Active and Passive) Focu
Slide 12: eFC & CJ Integral to Tech-Focused Strategy
eFC & CJ Integral to Tech-Focused Strategy Tech jobs as % of total jobs: 25% Tech jobs as % of total jobs: 75% • Tech recruitment represents about 25% of eFC’s revenue o Percentage is expected to grow as FinTech evolves and products become increasingly digital o Large financial services firms employ
Slide 13: A Unique Portfolio of Assets to Win in Tech
A Unique Portfolio of Assets to Win in Tech Professional Talent Next-Gen Recruitment Communities Solutions Social Sourcing Tech Talent CRM Candidate Data (Candidate Updating and Relationship Financial Services Cleansing Management) Security Clearance Digital Recruitment Marketing 13
Slide 14: Through a Unique Combination of Solutions
Through a Unique Combination of Solutions #1 professional talent communities drive scale, client base and engagement with candidates Open Web enhances talent site resume pools, reaching passive and active candidates Open Web feeds getTalent’s pipelines and supplements customer data Lengo’s campaigns
Slide 15: Strategic Components
Strategic Components Engage Professional Tech-First Talent Focused investment in Deepen engagement tech talent brands with tech professionals Acquire and Next-Gen Recruitment Partner for New Capabilities Solutions Complementary assets Invest further in to accelerate growth solutions that address evo
Slide 16: Tech-Focused Strategic Objectives
Tech-Focused Strategic Objectives • Execute a single, tech-focused organization • Deepen engagement with tech professionals • Build on new services • Open Web • getTalent • Assessments • Curated search • Strategic solution-selling • Engage with recruiter workflow (API, Chrome Extension) and improve
Slide 17: Fiscal Year 2016 Financial Results
Fiscal Year 2016 Financial Results 2016 Revenue by Brand 2016 Adjusted EBITDA Contribution (Total $226 million) (Total $59 million) Health 63.2 BioSpace, ecareers, 2% 12% Hcareers, 6% RigZone, 4% Dice U.S., 13.1 50% 2.5 eFC, 16% -7.3 -12.8 Clearance Jobs, 6% Dice Europe, 4% 17 Note: See reconciliati
Slide 18: Reinvigorating Dice is Critical…
Reinvigorating Dice is Critical… Dice Ending RPC Count Dice Avg. Monthly Revenue Per 7,450 7,300 7,250 7,050 RPC 6,800 $1,118 $1,124 $1,122 $1,117 $1,110 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 % Annual 92% 93% 93% 95% 95% Renewal 67% 68% 69% 67% 65% Note: RPC = Recruit
Slide 19: …To Improving Fundamentals
…To Improving Fundamentals Total Revenue ($’s millions) Adjusted EBITDA ($’s millions) 16.0 57.5 57.7 56.1 14.9 54.9 14.0 13.9 52.2 10.5 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Margin 24% 28% 27% 25% 20% 19 Note: See reconciliations of non-GAAP measures in the appendix
Slide 20: Financial Impact of Tech-Focused Strategy
Financial Impact of Tech-Focused Strategy Keys to Turnaround Tech-Focused Revenue Goal ($’s millions) • Increased tech pro engagement 300 • Improving yields and stabilizing renewal rates for recruitment 250 packages o Revamped go-to-market strategy 200 177 171 o Solve pain points – Integration with
Slide 21: Strong Financial Profile
Strong Financial Profile • Net debt of $53 million (3/31/17) with trailing twelve month leverage ratio of 1.4x • $90 million of deferred revenue (3/31/17), negative working capital, low capital intensity • Track record of solid cash flow generation Deferred Revenue ($’s millions) Free Cash Flow ($’s
Slide 22: Allocate Capital to Enhance Shareholder Value
Allocate Capital to Enhance Shareholder Value Continually evaluate our business, industry, and capital markets and allocate capital to optimize shareholder value over the long-term Priorities: Invest behind tech-focused strategy: Reinvigorate the core tech franchise; develop next-gen solutions; acqu
Slide 23: DHI Investment Case
DHI Investment Case • Solid core franchise in a relatively large, fragmented and growing market • Recurring revenue stream: ~85% of Dice revenue from annual contracts • New operating structure and strategy changes complexion and growth profile of the core business • Suite of Next-Generation solution
Slide 24: Thank you!
Thank you! DHi
Slide 25: 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 Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be The Company has provided certain non-GAAP financial information as additional information for i
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 26
DHI Group — 18th Annual B. Riley Investor Conference (May 2017) on 6ix