Dhi Group, Inc. · NYSE:DHX
Dhi — Q1 2020 Earnings Presentation
22 slides from Dhi's earnings presentation, May 8, 2020
Slide 1: Q1 2020 Investor Presentation
Q1 2020 Investor Presentation May 6, 2020 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: 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: 12/31/19 • Listed: NYSE: DHX (2007) • Diluted Shares Outstanding: ~52M • Headquarters: Denver, CO • FY 2019 Financial Results • Employees: ~ 550 • Revenues: $149M • Clients: ~11,000 • Net Income: $13M • Candidate Focus: Technology Professionals • Diluted
Slide 5: First Quarter 2020 Financial Highlights
First Quarter 2020 Financial Highlights • Revenues: $36.6 million. Total revenues1 were down 1% YOY • Dice revenues1: $22.5 million, down 3% YOY • eFinancialCareers revenues: $7.2 million, down 12% YOY • ClearanceJobs revenues: $6.9 million, up 19% YOY • Net Income (Loss): $6.6 million, or a loss of
Slide 6: Three Tech-Focused Brands
Three Tech-Focused Brands Leading database of security cleared Focused on technologists, managing Global financial services careers platform professionals. Transformed from job over 9 million US profiles ~30% of job postings are in technology board to career marketplace. Geographic Focus United Stat
Slide 7: Business Model Elements
Business Model Elements • Candidates do not pay for access to platforms • Clients pay for job advertising and profile/resume views • 90% Subscription Based Revenue • 72% of Annual Contracts Paid Upfront • 80% Revenue Renewal Rate1 7 1 Dice
Slide 8: Loyal Customers
Loyal Customers Tech Candidate Marketplace ~ 5,850 Subscription Clients ~ 20% of Fortune 1000 8
Slide 9: Loyal Customers
Loyal Customers Global Finance Marketplace ~ 900 Subscription Clients 75% of Global 50 Banks 9
Slide 10: Loyal Customers
Loyal Customers Cleared Professionals Marketplace ~ 1,700 Subscription Clients ~ 80% of top 50 US Defense Contractors 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 2019 Key Statistics Revenue Annual Growth 19-24 Snapshot $9.5bn Profit 7.0% Businesses $1.1bn 1,460 IT Talent Generates ~15% of Online Recruiting Reve
Slide 12: DHX: In the Midst of Transformation
DHX: In the Midst of Transformation From Job Board to Marketplace OUR MARKETPLACE APPROACH Indispensable modern marketplaces are/have: • Two-sided (buyers and sellers) • Robust search and match capabilities • Balanced, with both sides sharing info • Instant feedback mechanisms • Self-sustaining, use
Slide 13: Past Year's Product Innovation
Past Year’s Product Innovation IntelliSearch Candidate Employer Private Email with Job Job Alerts Profile Favorites Dashboard Management 1H20 1H20 1H20 2H19 1H20 2H19 Application Job Search Messaging Recruiter Candidate BrandAmp Management & Alerts Profile Dashboard 2H19 2H19 2H19 1H19 2H19 1H19 13
Slide 14: 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 8+ years creating a data model that captures the relationship between 100,000+ tech skills • Machine Learning allows DHX to constantly improve its skil
Slide 15: 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 • Dice Inte
Slide 16: 2020 Strategic Initiatives
2020 Strategic Initiatives Focus on Revenue Growth Product Innovation to Reinvigorate the Business • Expansion of Domain-Driven Tech Teams • Dice and eFC Adopt CJ Marketplace Features • 20 Marquee Product Releases in 2019 Go-to-Market Transformation • New Sales Leadership • Expansion of Commercial A
Slide 17: Business Stabilizing
Business Stabilizing Quarterly Adjusted Revenue2 -1% Quarterly Adjusted EBITDA Margin2 YOY Change $40.0 26% 2% 2% 0% (1)% (1)% $35.0 24% $30.0 24% 22% 23% 23% 23% $25.0 20% 21% (1)% (1)% (3)% (3)% (3)% $20.0 18% $15.0 16% -6% $10.0 14% 0% 0% (2)% (6)% $5.0 17% 16% 19% (10)% 12% 20% 17% $0.0 10% Q1 2
Slide 18: Liquidity Snapshot
Liquidity Snapshot $25 million revolver draw as a precaution for COVID-19 Operating Cash Flow & Capex ($ in millions) Debt & Cash ($ in millions) $11.1 $37.0 Operating Cash Net Debt1 of Flows of $9.2M as of $22.9M in 2019 03.31.2020 $27.8 $17.0 $4.6 $4.1 $4.3 $3.9 $3.8 $3.2 $3.1 $3.2 $10.0 $10.0 $2.
Slide 19: DHX Investment Thesis
DHX Investment Thesis • Market for Online Recruitment Tools is Growing • Tech Market Niche is Attractive and Plays to our Innovation in Collecting + Mapping Skills • New Management Drives Functional Strength + Focus • Demonstrated Success of Product Innovation with ClearanceJobs • Set for Operating
Slide 20: NYSE: DHX
~ re Futures NNW AO. NYSE: DHX
Slide 21: 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 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation