Dhi Group, Inc. · NYSE:DHX
Dhi — Investor Day (September 2021)
79 slides from Dhi's investor day presentation, Sep 8, 2021
Slide 1: DHI Investor Day
DHI Investor Day Where Tech Connects; A SaaS Growth Story September 8, 2021 NYSE: DHX
Slide 2: Welcome
Welcome Art Zeile, CEO NYSE: DHX
Slide 3: 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 4: Today's Presenters
Today’s Presenters Art Zeile Christian Dwyer Evan Lesser Arie Kanofsky Kevin Bostick Chief Executive Officer Chief Product Officer Founder & President Chief Revenue Officer Chief Financial Officer ClearanceJobs 4
Slide 5: Our vision is to create indispensable career marketplaces
Our vision is to create indispensable career marketplaces to match the highest quality candidates with the right client career opportunities. 5
Slide 6: Why DHX
Why DHX Tech sector employment will grow by double-digit rates this decade. We are a must-have tool for tech recruiters. DHX can achieve sustainable double-digit revenue growth. 6
Slide 7: Technology Employment Over Time
Technology Employment Over Time Record High 8M Record Low 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 7 Source: Bureau of Labor Statistics, Computer Systems Design and Related Services, July 2021
Slide 8: 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 8 Source: Microsoft Data Science whitepaper "Methodology: Digitization Capacity of the World Economy"
Slide 9: US Tech Job Postings from the Beginning of the Pandemic to Summer 2021
US Tech Job Postings from the Beginning of the Pandemic to Summer 2021 400000 350000 TECH JOB POSTING COMPARISONS 300000 Q2 2021 vs. Q1 2021 250000 + 16% 200000 Q2 2021 vs. Q1 2020 150000 + 29% Q2 2021 vs. Q1 2019 100000 + 9% 50000 0 Apr-20 Ma y-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Ja
Slide 10: The Challenge of Tech Recruiting
The Challenge of Tech Recruiting 5.4% US Unemployment Rate 1.5% US Unemployment Rate For Tech Occupations 10
Slide 11: Profiles Overview
Profiles Overview 8M 4.6M US Skilled Dice Members Technologists 11
Slide 12: Senior Software Engineer Job Posting
Senior Software Engineer Job Posting Education, Experience • Bachelor’s degree in MIS, Computer Science, Computer Engineering or related discipline or equivalent work experience • 5+ years of experience with analyzing, designing, coding, building, testing and deploying application systems in a busin
Slide 13: Typical Technologist Profile
Typical Technologist Profile Summary 28 years in the Information Technology field with an emphasis on Microsoft development products. Excellent proficiency in the design, development, testing, and implementation of software applications using Microsoft Visual Studio and related toolsets, including:
Slide 14: Dice Total Addressable Market
Dice Total Addressable Market 80,000+ Commercial Accounts --------------- 5,541 18,000 Staffing Recruiting Co. Dice Today Dice TAM 14
Slide 15: ClearanceJobs Total Addressable Market
ClearanceJobs Total Addressable Market 12,000+ Government 1,753 Agencies & Contractors CJ Today CJ TAM 15
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Slide 17: This is the Marketplace
This is the Marketplace Identify Two-way engagement Interview Hire Talent 17
Slide 18: Mission = Revenue Growth
Mission = Revenue Growth
Slide 19: Customer Testimonial
Customer Testimonial Aileen Holdridge, Booz Allen Hamilton
Slide 20: Q&A with Aileen Holdridge
Q&A with Aileen Holdridge Next Up: Christian Dwyer, Chief Product Officer
Slide 21: Differentiating Dice: Unique Solutions for a Dynamic Market
Differentiating Dice: Unique Solutions for a Dynamic Market Christian Dwyer, Chief Product Officer
Slide 22: Our Mission
Our Mission To be the trusted partner for every technologist throughout their career, and the organizations who rely on them by providing unparalleled access to meaningful opportunities, connections, and information.
Slide 23: Our North Star
Our North Star FOR CLIENTS Be the first choice, one stop destination for clients to reliably find all technologists in the market - enabling them to search, match and connect with the highest quality candidates for their technology needs. FOR TECHNOLOGISTS Be the first choice, one stop destination f
Slide 24: Network effects fuel the growth of online marketplaces
Network effects fuel the growth of online marketplaces • Dice has scale in the number of employers, Growth in Growth in employers recruiters and technologists connections and recruiters • Growth in clients, jobs and content attracts more technologists considering a career change Growth in Growth in
Slide 25: The Dice value proposition to employers
The Dice value proposition to employers 1 Easily Search, Match and Connect with Quality Technology Professionals • Quality • Quantity 2 Intelligent Automation and Workflow Platforms Integration • Relevance • Speed • Ease 3 Attract Quality Candidates with Tech-specific Employer Branding • Trust 25
Slide 26: Our recipe for success has been growing value for clients
Over the past few years, our recipe for success has been growing value for clients Integrated sourcing automation into the leading Applicant Tracking Systems Result: Revenue Retention and Growth Expanded the breadth, depth and quality of our candidate database with social data Launched new TalentSea
Slide 27: The Dice value proposition to technologists
The Dice value proposition to technologists 1 Access Deepest Pool of Tech Professional Growth Opportunities • Personalization 2 Find Best Matches to Jobs, Recruiters and Companies • Relevance • Ownership 3 Learn About and Easily Connect with Recruiters and Companies • Trust • Equity • Ease 4 Build T
Slide 28: Our go forward product strategy is centered on four areas
Our go forward product strategy is centered on four areas of differentiation to drive growth and engagement Connections Personalization Employer Branding User Experience Changing the way technologists Relevant opportunities and Values-based company Intuitive, modern user and recruiters discover, con
Slide 29: Driving accretive and sustainable business value for Dice
Driving accretive and sustainable business value for Dice Retention Rates Driven by Product Performance Increasing ACV with Employer Branding Solutions Reinforcing Loyalty-Value Optimize Resources for Through Connections Strategic Value Creation 29
Slide 30: Q&A with Christian Dwyer
Q&A with Christian Dwyer Next Up: Evan Lesser, ClearanceJobs
Slide 31: ClearanceJobs: Positioned for Growth
ClearanceJobs: Positioned for Growth Evan Lesser, Founder & President, ClearanceJobs
Slide 32: Security Clearances 101
Security Clearances 101 A Determination, Not an ID Card Citizens Only Having a clearance means you’ve been Only United States citizens can obtain a deemed suitable to access classified info security clearance and cannot hold dual related to national security citizenship Need to Know Only Three Basic
Slide 33: Four key dynamics facing employers that hire security cleared professionals
There are four key dynamics presently facing all employers and federal agencies that hire security cleared professionals: Fewer More Lengthy Candidates Cleared Cleared Processing Mostly Professionals Jobs Times Passive 33
Slide 34: How We Help Industry
How We Help Industry The Most Cleared The Most The Widest The Best Candidates Cleared Jobs Cleared Reach Technology Online since 2002, we have Cleared pros know us as the We talk to cleared pros daily Unparalleled recruiting, the largest database of destination for opportunity, via our giant social
Slide 35: Government Cleared Hiring Challenges
Government Cleared Hiring Challenges Long Hiring Cycles Government hiring isn’t as nimble as industry, and good candidates are lost Little (But Growing) Direct Hire Authority Many government agencies can’t directly find, Distinctive challenges, engage, and hire candidates, but that’s changing but wi
Slide 36: How We Help Government
How We Help Government We Shorten Hiring Times With unique and powerful tools to quickly find, engage, and hire security-cleared talent ClearanceJobs is Massive Candidate Reach Our authoritative voice and huge cleared uniquely positioned to ecosystem links candidates to government serve the governme
Slide 37: The Opportunity for Federal Sales
The Opportunity for Federal Sales Current Government Customers 1 2 3 Pilot Evaluation Contract 3–6-month trial based Review of pilot goals, Extended agreement on agency’s hiring feedback, and total with tuned products challenges and needs performance and services ü Two years ago, less than 1% of tot
Slide 38: Next Steps for Federal Sales
Next Steps for Federal Sales 1 2 3 Do the Market Grow the Federal Become Research Sales Team Invaluable We’ve conducted market While our current industry With our unparalleled reach assessments, received sales team has had and innovative features, advice, and are creating a successes, we’re aiming t
Slide 39: Q&A with Evan Lesser
Q&A with Evan Lesser Next Up: Arie Kanofsky, Chief Revenue Officer
Slide 40: Growth Strategy: Capitalizing on Commercial Accounts
Growth Strategy: Capitalizing on Commercial Accounts Arie Kanofsky, Chief Revenue Officer
Slide 41: Observations from My First 60 Days
Observations from My First 60 Days DHI Missing Key Foundational Elements To Drive Consistent, Scalable Success Process: Significant Lack of End-to-End Sales Process & Overall Accountability Enablement: Lack of an Enablement Framework & No Sales Methodology Teams not Maximizing Potential: Severe Lack
Slide 42: Dice January 2020 By the Numbers
Dice January 2020 By the Numbers NBS Annual Contract Value Renewal $ $3,816 83% Renewal Count Retention % 69% 100% 42
Slide 43: 2020 Transformation Accomplished!
2020 Transformation Accomplished! Account Billing / ChurnZero Segmentation Payment Term SF Proposal Approvals Sandler Sales Generation QBR Training Process Marketplace Daily Stack Product Ranking Releases Daily Flash Ambition Report Coaching Dynamic Multi-Year New Sales St SalesLoft Process Demo Quo
Slide 44: Dice Account Segmentation
2021 Growth Initiative #1 Dice Account Segmentation Total CA Potential $ = $204M ENT Total Enterprise Potential = $78M MM Total Mid Market Potential = $26M Small Market Total Small Market Potential = $100M TAM Represents 10X Opportunity vs. Existing Customer Spend! 44
Slide 45: Customer Engagement Strategy – Retain & Expand
2021 Growth Initiative #2 Customer Engagement Strategy – Retain & Expand Transforming Customer Engagement: Command Center – Renewable Book & Account Health • Prescriptive Engagement Cadences for AM’s & CSM’s Historical Growth of Accounts • Data Driven Approach to Onboarding • Data Driven Approach to
Slide 46: Multi-Year Contracts – 2021 Tracking Update
2021 Growth Initiative #3 Multi-Year Contracts – 2021 Tracking Update • $4.8M ACV Secured in Q2’21($8.5M YTD) • Closed 401 MYC’s in YTD June’21 vs 216 all of 2020 • MYC’s are defined as subscriptions with a minimum term of 24 Months CSAT Is Now 8 out of 10! 46
Slide 47: Auto-Renewals – A Huge Success Story!
2021 Growth Initiative #4 Auto-Renewals – A Huge Success Story! Clients with Auto-Renewal terms will need to indicate their intent to cancel 90 days prior to contract end date. CSAT Is Now 8 Note: Auto-Renewals rolled out in May 2020. out of 10! 47
Slide 48: $1.7m In Successful Win-backs YTD!
2021 Growth Initiative #5 Dice Win-Back Campaign Re-ignite customer engagement & Re-activate customers! Leverage Marketing to Aggressive Transfer Back Segmentation Create “We commission Lost Customers Data to Target Fixed It” payout tied to Sooner to New Highest Campaigns success and Business Teams
Slide 49: Dice July 2021 by the Numbers – Progress!
Dice July 2021 by the Numbers – Progress! As compared to January 2020 NBS Annual Contract Value Renewal $ $5,907 (+65% from Jan 2020) 95% (+14% from Jan 2020) Renewal Count Retention % 82% (+16% from Jan 2020) 106% (+6% from Jan 2020) 49
Slide 50: 2022 and Beyond
2022 and Beyond Taking DHI to the next level! • Increase Focus On First Year Customer Engagement • Expansion of New Business & Customer Success Teams • Focus on Employer Branding • Improve Sales KPI Results 50
Slide 51: Q&A with Arie Kanofsky
Q&A with Arie Kanofsky Next Up: Evan Lesser, Advanced Research Projects
Slide 52: The Evolution of the Career Marketplace
The Evolution of the Career Marketplace Evan Lesser, Founder & President, ClearanceJobs
Slide 53: History to Innovation
History to Innovation 2002 2010 2021 2025 ClearanceJobs Transition to Commanding Our The Future of Launches Marketplace Industry Recruiting Enters the market as the first job Shift in business strategy from A decade into our marketplace, Our track record of innovation is board dedicated to security-
Slide 54: From Job Board to Marketplace
Modern marketplaces like Amazon, Uber, Spotify, and From Job Board to ClearanceJobs all have things in common: Marketplace ü They’re two-sided, with both “buyers” and “sellers” ü They’re balanced, with both sides sharing equal information ü They’re self-sustaining, with content being generated by us
Slide 55: Candidate Relationship Management
Candidate Relationship Management LEADS Aggregate and Organize Like Salesforce does for sales, the ClearanceJobs marketplace helps PROSPECTS employers find, organize, engage, Nurture and Brand and hire cleared talent by moving WINS them down stages in a funnel Engage and Hire 55
Slide 56: ClearanceJobs: DHI Innovation Engine
ClearanceJobs: DHI Innovation Engine Innovative, best-in-class features and functionality for employers EW N ClearanceJobs ClearanceJobs ClearanceJobs ClearanceJobs ClearanceJobs Message Voice IntelliSearch Groups Workflow Combines live chat with Engage candidates when Paste your job description or
Slide 57: Advanced Research Projects
DH ADVANCED RESEARCH PROJECTS A\\\
Slide 58: Our Mission
ADVANCED RESEARCH PROJECTS OUR MISSION INNOVATE CONSULT Cement DHI as market leader by Advise and support all DHI brands, injecting impactful, cross- helping solve mission-critical functional innovation into our problems by acting as expert and product, processes, and priorities impartial internal c
Slide 59: Our Process
ADVANCED RESEARCH PROJECTS OUR PROCESS Initial intake meeting Research Present and and PROJECT DELIVERABLES debrief insights • Problem Statements • Research Findings Final • Competitive Analysis design Research Ideation draft • SWOTs and Suggestions Changes Validation FAST FACTS Legal and Ideation c
Slide 60: Clicks to Bricks
ADVANCED RESEARCH PROJECTS CLICKS TO BRICKS PROJECT GOAL • Understand how digital native brands are successfully building their businesses by augmenting online with offline experiential marketing 60
Slide 61: Game Theory
ADVANCED RESEARCH PROJECTS GAME THEORY PROJECT GOAL • Dive into the $300 billion world of gaming to understand how players, programs, and processes drive deep engagement and stickiness 61
Slide 62: Employer Branding
Reputation ADVANCED RESEARCH PROJECTS and Rankings EMPLOYER BRANDING Employee Reviews PROJECT GOAL • Examine retail’s consumer buying 95% of candidates cycle and apply deep learning to identify a company’s reputation as a key employer branding and how it affects consideration when candidate decision
Slide 63: Recruiting Maturity Model at DHI
Recruiting Maturity Model at DHI Early Stage Mid-Stage Late Stage Job Board Career Marketplace Career Marketplace Similarity Classified Ad Amazon, Yelp, Uber Artificial Intelligence Candidate Focus Active Job Seekers Active and Passive Candidates Mostly Passive Candidates User Engagement None Mostly
Slide 64: Future Career Marketplace
Future Career Marketplace ClearanceJobs Workflow Automation Powerful recruitment process and Burden of talent sourcing, pipelining, and marketing automation performs initial contact automated; recruiters can important recruiting and marketing focus on engagement with candidates tasks for you. Integr
Slide 65: Future Career Marketplace
Future Career Marketplace 2 1 Recruiters Confirm 3 Interests Data Feed Recruiters tune their Platform Watches Established accounts to their hiring and Analyzes Ingestion of jobs data 4 needs with smart System looks for begins and is updated suggestions matching candidates, Platform Engages regularly
Slide 66: Q&A with Evan Lesser
Q&A with Evan Lesser Next Up: Kevin Bostick, Chief Financial Officer
Slide 67: Business Model of the Future: From Ads to SaaS
Business Model of the Future: From Ads to SaaS Kevin Bostick, Chief Financial Officer
Slide 68: Evolution of DHI's product offerings
Evolution of DHI’s product offerings Job Board Career Marketplace Momentary Fixes and One-Off Job Postings Solutions and Subscriptions Transactional Focused on job views and applications; hard to prove customer Profiles Connections ROI when most candidates are passive Personal and employer Network-b
Slide 69: Recruiting Hierarchy of Needs
Recruiting Hierarchy of Needs Term ACV/Year Enhanced Recruitment Package Annual & with Branding, Sourcing and $30K+ Multi-year Career Events Candidate Profiles & Annual & $15k Jobs Advertising Multi-year Classified Monthly Jobs $5k 69
Slide 70: DHI Core Products
DHI Core Products • Direct hire companies and staffing/recruiting agencies purchase annual licenses to gain access to DHI’s recruiting platform and solutions. This represents 90%+ of total bookings. • Price is a function of product, quantity and duration. o Seat license to access data base o Unit vo
Slide 71: Bookings to Revenue
Bookings to Revenue $100k subscription Q1 revenue Q2 revenue Q3 revenue Q4 revenue bookings $25k $25k $25k $25k (annual term) $20k Sourcing Services Jan revenue Feb revenue bookings $10k $10k (2 mo term) $75k Career Events Event 1 Date, Event 2 Date, Event 3 Date, Revenue Revenue Revenue ($25k per $
Slide 72: Bookings Changes Implications to Revenue
Bookings Changes Implications to Revenue • Consistent bookings growth over 1 year is required in terms of aligning bookings growth to match revenue growth. • A 10% bookings growth in Q1 would lead to 2.5% revenue growth in each subsequent quarter for 4 quarters • Assumes a 12-month duration; ~ 90% o
Slide 73: Dice Bookings to Revenue – Example
Dice Bookings to Revenue – Example With a subscription-based business, changes in Bookings year-over-year take 2-3 quarters to show in Revenue changes on a year-over-year basis. 2-3 quarters YoY bookings and revenue percentages are based upon 3-month average 73
Slide 74: Predictability of Revenue
Predictability of Revenue Backlog and renewals drive ~82% of revenue at the start of each year. Composition of Revenue at Start of Year Backlog 51% Renewals 31% New Business/Winbacks 12% Transactional 7% • 12% of revenue is through new business sold during the year • 22% of bookings is new business
Slide 75: Annual Revenue
Annual Revenue With a subscription-based business, a large portion of our revenue is contracted and booked at the start of each year and predictability of our revenue increases throughout the year as we renew our contracts Annual Revenue Composition by Bookings Category (Beg. of Period) 100% 98% 80%
Slide 76: Revenue Guidance – Q3 and Q4 2021
Revenue Guidance – Q3 and Q4 2021 • Based on prior period bookings, DHI has very good visibility into Q3 and Q4 revenue • Q3 year-over-year revenue growth rate1 expected to approach 10% • Q4 year-over-year revenue growth rate1 expected to be slightly higher than Q3 growth rate 76 1 Expected year-ove
Slide 77: Comparable Valuations
Comparable Valuations DHI believes there is significant multiple expansion in its valuation as revenue continues to trend positive (1) SEK 2020A Revenue adjusted for Zhaopin deconsolidation. (2) DHI 2020A Revenue adjusted for eFC spinoff. 77
Slide 78: Q&A with DHI Leadership
@©-»oO Onn Q&A with DHI Leadership
Slide 79: Thank you!
Thank you!