Dhi Group, Inc. · NYSE:DHX
Dhi — Drexel Hamilton Annual Telecom, Media and Technology Conference 2017
26 slides from Dhi's conference presentation, Sep 6, 2017
Slide 1: Drexel Hamilton Annual Telecom, Media and Technology Conference
Luc Gregoire Chief Financial Officer Drexel Hamilton Annual Telecom, Media and Technology Conference September 6, 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 Overview
DHI Overview 3 Tech-Focused Recruiting Brands Developing Next-Generation 4 Non-Tech Recruiting Brands Recruitment Services 15K+ Clients Global Infrastructure Proprietary and Scaled Talent Community Data Searchable profiles including resume & social info 3
Slide 4: Our Solutions Help Employers Hire Top Talent
Our Solutions Help Employers Hire Top Talent • Solutions are primarily sold through recruitment packages comprising: Job Postings Searchable Profiles Social Sourcing Brian Jones 4
Slide 5: Financial Profile
Financial Profile TTM Revenue by Brand TTM Adjusted EBITDA Contribution as of 6/30/17 (Total $216 million) as of 6/30/17 (Total $49 million) Health BioSpace, ecareers, 57.5 2% 12% Hcareers, 7% RigZone, Dice U.S., 9.1 4% 50% 1.5 eFC, 15% -8.0 -11.5 Clearance Jobs, 7% Dice Europe, 3% 5 Note: See recon
Slide 6: Large and Growing Industry
Large and Growing 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 measu
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 Need More Solutions
Employers Need More Solutions 8
Slide 9: Tech-Focused Strategy
Tech-Focused Strategy I. Focus resources behind the tech franchise II. Deepen engagement with tech professionals III. Develop new complementary solutions that address evolving industry trends 9
Slide 10: I. Focus Resources Behind the Tech Franchise
I. Focus Resources Behind the Tech Franchise Optimize Portfolio Single Tech-Focused Organization Invest In Tech-Focused Brands ▪ Realign resources to support a Tech- Focused franchise ➢ Reposition talent to optimize tech- focused businesses Leading tech Growth Fintech online recruiting ~75% of job ➢
Slide 11: Tech Recruiting Fundamentals Highly Favorable
Tech Recruiting Fundamentals Highly Favorable • 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 busines
Slide 12: Leading Technology Career Focused Online Community
Leading Technology Career Focused Online Community 12
Slide 13: Reinvigorating Dice the Top Priority
Reinvigorating Dice the Top Priority Dice Ending RPC Count Dice Avg. Monthly Revenue Per 7,300 7,250 7,050 6,800 RPC 6,750 $1,124 $1,122 $1,117 $1,110 $1,108 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Y/Y (6%) (6%) (7%) (9%) (8%) Y/Y 4% 2% 0% (1%) (1%) Q/Q (2%) (1%) (3%) (
Slide 14: 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% • Financial Services firms and recruiters • Largest career site specializing in have access to a global pool of high professionals with active federal value relevant talent security clearan
Slide 15: II. Engage Professional Talent
II. Engage Professional Talent Go-To Site for Tech Pros Focus: Focus: • Finding jobs • Staying relevant • Evaluating employers • Job market awareness • Becoming “searchable” • Get the job/project done more efficiently Job & Opportunity Discovery Performing on the Job (Active) (Passive) Career Develo
Slide 16: Solutions to Help Professionals Manage Careers
Solutions to Help Professionals Manage Careers Tech Career Tools – Dice Careers App Driving Increasing Engagement 16
Slide 17: III. Develop New Complementary Solutions
III. Develop New Complementary Solutions Professional Talent New Recruitment Communities Solutions Social Sourcing Tech Digital Recruitment Financial Services Marketing Security Clearance Candidate Data Updating and Cleansing 17
Slide 18: Initiatives to Reinvigorate Dice
Initiatives to Reinvigorate Dice Solve Recruiter Pain Points: Open Web, API Integrations, Chrome Extension, Activity Beacon, HackerEarth “Lead with Open Web” Go-To-Market APIs Further Embed Dice in Customer Strategy Workflow # of Dice Customers with Open Web 2,337 2,072 1,696 1,371 1,033 1,069 1,048
Slide 19: Recent Developments in Tech-Focused Strategy
Recent Developments in Tech-Focused Strategy ▪ Non-tech divestitures progressing consistent with expectations – Receiving a significant level of interest in our non-tech assets – Discussions with interested parties are progressing well ▪ Discontinued getTalent – Slightly outside of our core tech str
Slide 20: Strong Financial Profile
Strong Financial Profile Operating Cash Flow & Capex Debt & Cash ($ millions) ($ million) 14.5 99.0 12.2 12.0 92.0 86.0 78.0 9.2 71.0 8.0 4.2 3.5 29.5 29.4 3.2 3.0 3.2 23.0 24.7 23.5 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Operating Cash Flow Capex Debt 20 Note: See rec
Slide 21: Allocate Capital to Enhance Shareholder Value
Allocate Capital to Enhance Shareholder Value • Continue evaluating short-term priorities based on progress of non-tech divestitures • In the meantime, we lower revolver balance and preserve liquidity Priorities Disciplined reinvestment in core tech franchise Small, bolt-on acquisitions Return capit
Slide 22: Key Takeaways
Key Takeaways ▪ Staying close to our core tech franchise to reinvigorate Dice – Discontinuing getTalent – Closing operations in China ▪ Simplifying organization & gaining efficiencies – Transition to functional based organization – Optimizing resources: Headcount down 2% YTD at 6/30/17 – AWS migrati
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 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, general
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 26
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