Dhi Group, Inc. · NYSE:DHX
Dhi — Sidoti Virtual Microcap Conference (May 2021)
25 slides from Dhi's conference presentation, May 19, 2021
Slide 1: Sidoti Virtual Microcap Conference
Sidoti Virtual Microcap Conference May 19, 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 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.
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: $137M • Employees: ~ 520 ◦ Net Loss3: $30M • Clients: ~ 9,500 ◦ Diluted Loss Per Share: $0.62 • Candidate Focus: Te
Slide 5: First Quarter 2021 Financial Highlights
First Quarter 2021 Financial Highlights • Revenues: $32.6 million, down 11% YOY. ◦ Dice revenues: $19.1 million, down 15% YOY ◦ ClearanceJobs revenues: $7.6 million, up 11% YOY ◦ eFinancialCareers revenues: $6.0 million, down 18% YOY • Net Income (Loss): $2.7 million, which was positively impacted b
Slide 6: Three Tech-Focused Brands
Three Tech-Focused Brands Geographic Focus 2020 Revenue Growth Opportunity 6
Slide 7: Dice Business Model Elements
Dice Business Model Elements • Clients pay for job advertising and profile/resume views • Greater than 90% Subscription Based Revenue • 67% of Annual Contracts Paid Upfront • 82% Revenue Renewal Rate • Candidates do not pay for access to platforms *Metrics are based on most recently completed fiscal
Slide 8: Loyal Customers
Loyal Customers Tech Candidate Marketplace ~ 5,200 Subscription Clients 8
Slide 9: Loyal Customers
Loyal Customers Cleared Professionals Marketplace ~ 1,750 Subscription Clients 9
Slide 10: Loyal Customers
Loyal Customers Global Finance Marketplace ~ 850 Subscription Clients 10
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 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 Recrui
Slide 12: 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" 12
Slide 13: DHX: In the Midst of Transformation
DHX: In the Midst of Transformation From Job Board to Marketplace 13
Slide 14: Product Innovation
Product Innovation Marketplace Q121 Identification Authentication Service Q420 Instant Messaging Q420 IntelliSearch Job Alerts Q320 BE Onerneatd Meetings Q121 ZE cnarencet Self-Serve BrandAmp Q420 ZE crarnce Candidate Search + Broadcast Message Q420 DHi
Slide 15: 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 16: 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 16
Slide 17: 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 17
Slide 18: DHI Revenues
DHI Revenues Revenues declined during the first quarter of 2021 for Dice and eFC due to the continued impacts of COVID-19 and from eFC continuing to be impacted by Brexit in the U.K. and political unrest in Hong Kong. Revenues for ClearanceJobs increased 11% YOY and was flat with Q4 2020. 18
Slide 19: Profitability
Profitability 1 Business Outlook Expected 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 19
Slide 20: Liquidity Snapshot
Liquidity Snapshot Strong operating cash flow in 1Q21 Operating Cash Flow & Capex ($ in millions) Debt & Cash ($ in millions) Operating cash flows of $6.4M in Q1 2021 and $19M in FY 2020. Net debt1 of $12.7M as of March 31, 2021 1 Notes regarding the use of Non-GAAP financial measures and GAAP to No
Slide 21: DHX Investment Thesis
DHX Investment Thesis • 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 with ClearanceJobs • Set up for Operating Leverage
Slide 22: ainecine
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Slide 23: 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 24: DHI Group, Inc. Non-GAAP Supplemental Data
DHI Group, Inc. Non-GAAP Supplemental Data (Unaudited) (USD, in thousands) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year Quarter 1 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2021 Reconciliation of Net Income to Adjusted EBITDA Net Income (
Slide 25: DHI Group, Inc. Non-GAAP Supplemental Data
DHI Group, Inc. Non-GAAP Supplemental Data (Unaudited) Three Months Ended March 31, Reconciliation of Diluted Earnings per Share to Adjusted Diluted Earnings per Share: 2021 2020 Diluted earnings (loss) per share1 $ 0.05 $ (0.13) Impairment of intangible assets and equity investment, net of tax — 0.
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