Slide 1: Q1 2017 Financial Highlights & Business Update
DHI Group, Inc. Q1 2017 Financial Highlights & Business Update May 3, 2017 Cantor Fitzgerald 4th Annual Internet & Technology Services Conference February 2017 Luc Gregoire Chief Financial Officer 1
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: Overview
Overview Michael Durney Chief Executive Officer 3
Slide 4: Recent Developments
Recent Developments Undertook a comprehensive internal strategic review that Q2 – Q3 2016: culminated in the Company’s new Tech-Focused strategy Announced new Tech-Focused strategy, and in response to November 1, 2016: M&A activity in our industry announced Exploration of Strategic Alternatives
Slide 5: Our Vision: Be the Leading Global Provider of Tech & Next Gen Talent Solutions
Our Vision: Be the Leading Global Provider of Tech & Next Gen Talent Solutions Serve tech employers and engage tech professionals across all industries in all markets Leverage the tech talent acquisition franchise to expand next-gen sourcing and pipelining tools to the broader market 5
Slide 6: How We Win: Our Tech-Focused Strategy
How We Win: Our Tech-Focused Strategy Focus of today’s strategy discussion I. Focus resources behind core tech talent brands II. Deepen engagement with professionals III. Invest further in solutions that address evolving recruiting needs IV. Acquire complementary assets to accelerate growth 6
Slide 7: Focus Resources Behind Our Core Tech Talent Brands
Focus Resources Behind Our Core Tech Talent Brands Optimize the Portfolio Retain businesses that can benefit the Company’s tech franchise Greater management focus and financial resources for tech recruitment market Proceeds from divestitures can be reinvested in the tech related businesses
Slide 8: Optimize the Portfolio
Optimize the Portfolio Reinvest in Tech-Focused Brands Divest Non-Tech Brands Dice: Leading tech online professional recruiting Life Sciences platform in the U.S. ClearanceJobs: Leading security-professional Hospitality career network; ~75% of job postings are tech eFinancialCareers: Leading c
Slide 9: A Single Tech-Focused Organization
A Single Tech-Focused Organization Realign resources support a Tech-Focused franchise Reposition internal talent to optimize tech-focused businesses Simplify the organization for more efficient execution Build around Dice’s leadership position in U.S. tech talent acquisition Enhance Dice’s
Slide 10: The Leading Tech Career Management & Talent Acquisition Platform
The Leading Tech Career Management & Talent Acquisition Platform Comprehensive Career Management Solution Deliver Qualified Tech Pros to Recruiting for Tech Pros Customers 10
Slide 11: Deepening Professional Engagement – Dice Careers App
Deepening Professional Engagement – Dice Careers App Tech Career Tools – Dice Careers App Driving Increasing Engagement 11
Slide 12: Solving Recruiter Pain Points – Open Web, APIs, Chrome Extension
Solving Recruiter Pain Points – Open Web, APIs, Chrome Extension “Lead with Open Web” Go-To-Market Strategy APIs Further Embed Dice in Customer Workflow # of Dice Customers with Open Web 2,072 1,696 1,371 1,069 1,048 1,149 1,033 886 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Y/Y % 37% 3
Slide 13: New Dice & Next Generation Recruitment Solutions Drive Growth
New Dice & Next Generation Recruitment Solutions Drive Growth Dice new solutions Hacker Earth: Assessment solutions for employers & skill verification for tech pros (1H 2017) Curated talent sourcing service focused on “high-end” talent & employers (2H 2017) Suite of next generation talent ac
Slide 14: DHI Tech-Focused Portfolio A Unique Talent Sourcing Solution
DHI Tech-Focused Portfolio A Unique Talent Sourcing Solution Talent Acquisition Brands: #1 professional talent communities drive scale, client base and engagement with candidates Open Web enhances talent site resume pools, reaching passive and active candidates Open Web feeds getTalent’s pipelines a
Slide 15: Financial Overview
Financial Overview Luc Gregoire Chief Financial Officer 15
Slide 16: Revenue Highlights
Revenue Highlights ($’s millions) Quarterly Revenues1 $57.5 $57.7 $56.1 $54.9 $52.2 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 % Y/Y (4)% (7)% (9)% (11)% (9)% % Y/Y excl. FX (3)% (6)% (7)% (8)% (8)% 1) Quarterly revenues excludes Slashdot Media. See reconciliation of revenues to revenues excluding Slashdot
Slide 17: Dice U.S. Performance Metrics
Dice U.S. Performance Metrics Dice Ending RPC Count Dice Avg. Monthly Revenue Per RPC 7,450 7,300 7,250 $1,118 $1,124 $1,122 $1,117 $1,110 7,050 6,800 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 % Annual 92% 93% 93% 95% 95% Note: RPC = Recruitment package customer 17
Slide 18: Financial Results Summary
Financial Results Summary ($’s thousands) Note: See reconciliations of non-GAAP measures in the appendix to this presentation. 18
Slide 19: Free Cash Flow & Net Debt
Free Cash Flow & Net Debt ($’s millions) Free Cash Flow Net Debt $10.4 $10.3 $9.0 $9.1 $68.5 $69.5 $62.6 $63.0 $53.3 $4.8 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 19
Slide 20: Full Year 2017 Financial Outlook
Full Year 2017 Full Year Financial Outlook Revenue – Negative trends abating later this year – Penetration of Dice customer integrations and new products – Clearance jobs strong growth; Health eCareers modest growth; Rigzone Stabilizing Expenses – Modest yearly increase to support tech-focused s
Slide 21: Wrap Up + Q & A
Wrap Up + Q & A Cantor Fitzgerald 4th Annual Internet & Technology Services Conference February 2017 Luc Gregoire Chief Financial Officer 21
Slide 22: Appendix
Appendix Cantor Fitzgerald 4th Annual Internet & Technology Services Conference February 2017 Luc Gregoire Chief Financial Officer 22
Slide 23: Notes Regarding the Use of Non-GAAP Financial Measures
Notes Regarding the Use of Non-GAAP Financial Measures Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be The Company has provided certain non-GAAP financial information as additional information for its considered as an alternative to net income, operatin
Slide 24: Notes Regarding the Use of Non-GAAP Financial Measures
Notes Regarding the Use of Non-GAAP Financial Measures Free Cash Flow We define free cash flow as net cash provided by operating activities minus capital expenditures. We believe free cash flow is an important non-GAAP measure as it provides useful cash flow information regarding our ability to serv
Slide 25: Non-GAAP Supplemental Data
Non-GAAP Supplemental Data Reconciliation of revenues to revenues excluding Slashdot Media: (#039;s millions) 2016 2016 2016 2016 2017 Q1 Q2 Q3 Q4 Q1 Revenues $ 58.3 $ 57.7 $ 56.1 $ 54.9 $ 52.2 Less Slashdot Media 0.7 0.0 0.0 0.0 0.0 Revenues, excluding Slashdot Media $ 57.5 $ 57.7 $ 56.1 $ 54.9 $ 52.2