Dhi Group, Inc. · NYSE:DHX
Dhi — B. Riley FBR Investor Conference 2018
19 slides from Dhi's conference presentation, May 23, 2018
Slide 1: Luc Gregoire, Chief Financial Officer
Luc Gregoire Chief Financial Officer
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 Business: Online Career Sites and Services
Our Business: Online Career Sites and Services We deliver high quality tech professionals that are relevant to our clients’ needs, as efficiently as possible. 3
Slide 4: DHI Investment Thesis
DHI Investment Thesis o Franchise repositioned to focus on under served and growing Tech segments of the online recruiting market o Recurring revenue stream: ~85% of Dice revenue from annual contracts with high renewal rates o New operating structure and strategy balances focused investment in the b
Slide 5: DHI at a Glance
DHI at a Glance Key Elements of Our Business Revenue Profile by Brand Other1 15% Tech-focused brands 10,000+ customers, including leading companies across ClearanceJobs industries 11% Dice U.S. 55% eFinancialCareers Global presence: Proprietary and scaled 19% North America, tech community data, Euro
Slide 6: Strong Financial Profile
Strong Financial Profile Operating Cash Flow & Capex Debt & Cash ($ millions) ($ million) 14.5 78.0 71.0 69.0 9.2 7.2 6.9 42.0 38.0 4.2 3.5 3.5 2.4 3.1 24.7 23.5 1.8 22.1 12.1 16.2 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Operating Cash Flow Capex Debt Cash 6
Slide 7: Compelling Commercial Model
Compelling Commercial Model Professionals Employers QUALITY RELEVANCE EFFICIENCY Want Provide Want Desirable career Free access to employers Qualified candidates opportunities for tech pros Searchable access to Monetized access to tech Access to ideal professional communities professionals for emplo
Slide 8: Tech Pro Continuous Engagement
Tech Pro Continuous Engagement 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
Slide 9: Large and Growing Industry
Large and Growing Industry ’16 –’18E Key Secular Trends CAGR $8.7B Global Online 5.6% o Mid-single digit long-term Recruiting growth for online recruiting spend $6.3B 2.4% U.S. Online Recruiting(1) o Global skills gap (especially for highly-skilled professions) 7.4% o Increasing usage of $3.7B measu
Slide 10: Why Focus on Technology Recruiting?
Why Focus on Technology Recruiting? Tech recruitment a significant pain point 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 tech companies o Software engineers expected t
Slide 11: Well Positioned with Top Tech Franchise
Well Positioned with Top Tech Franchise Leading Tech Career Hub Attracting Millions of Tech Pros Leader in 2.2M 2M skills data, Innovative Searchable Unique analytics, recruiting tech monthly market solutions resumes visitors insights 11
Slide 12: Strong Complementary Platforms
Strong Complementary Platforms Tech jobs as portion of total jobs: Tech jobs as portion of total jobs: 25% 75% Financial services firms and recruiters Leading career site for professionals with have access to a global pool of high value active federal security clearances financial professionals Secu
Slide 13: Reinvigorate with Tech-Focused Strategy
Reinvigorate with Tech-Focused Strategy ▪ Focus resources behind core tech franchise o Divest non-tech brands & align resources ▪ Deepen engagement with tech professionals o Innovate with products & features to help optimize career management ▪ Enhance value proposition for customers o Provide the b
Slide 14: Tech-Focused Strategy Progress
Tech-Focused Strategy Progress November 2016 Today Diverse portfolio of 7 brands Focused portfolio of 3 across multiple industries tech-centric brands o November 2016: Announced o April 2018: New CEO joins DHI Tech-focused strategy o Non-core divestitures largely o Goal: Focus resources behind compl
Slide 15: New CEO - Art Zeile
New CEO - Art Zeile Background o Multiple-time CEO with startup and turn-around experience o Technology and product development focus o Long time Dice customer Investment thesis o Market demand is growing rapidly for tech professionals o The current solutions are general in nature and don’t serve th
Slide 16: Recent Innovations for Tech Pros
Recent Innovations for Tech Pros Dice Career Tools Dice New Homepage • Modernize Dice homepage for UX/UI and functionality • Improve positioning of content/career tools • Enable • Salary and Career Path tools personalization built on data analytics and machine learning for: • Reduced bounce – Title
Slide 17: Commercial Priority – Return to Growth
Commercial Priority – Return to Growth ▪ Stabilize Dice’s customer base o Develop products & features that improve ROI for customers o Optimize the sales function ▪ Implement best practices across the organization o ClearanceJobs (20% growth) a good innovation “test bed” ▪ Rigorous focus on operatin
Slide 18: Allocate Capital to Enhance Shareholder Value
Allocate Capital to Enhance Shareholder Value Priorities Disciplined reinvestment in core tech franchise Small, bolt-on acquisitions to accelerate growth Return capital Debt Reduction 18
Slide 19: 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