Slide 1: Q4 2019 Investor Presentation
Q4 2019 Investor Presentation February 5, 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 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: 12/31/19 • Listed: NYSE: DHX (2007) • Diluted Shares Outstanding: ~52M • Employees: ~ 550 • FY 2019 Financial Results • Denver – 150+ • Revenues: $149M • Des Moines – 200+ • Net Income: $13M • New York – 15+ • Diluted EPS: $0.24 • London – 75+ • Adjusted
Slide 5: Fourth Quarter 2019 Financial Highlights
Fourth Quarter 2019 Financial Highlights • Revenues: $37.7 million. Total revenues1 were down 1% YOY and up 1% sequentially • Dice revenues1: $23.3 million, down 3% YOY and up 1% sequentially • eFinancialCareers revenues: $7.8 million, down 6% YOY and down 1% sequentially • ClearanceJobs revenues: $
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 • 91% Subscription Based Revenue • 74% of Annual Contracts Paid Upfront • 81% Revenue Renewal Rate 7
Slide 8: Loyal Customers
Loyal Customers Tech Candidate Marketplace ~ 6,000 Subscription Clients ~ 20% of Fortune 1000 8
Slide 9: Loyal Customers
Loyal Customers Global Finance Marketplace ~ 900 Subscription Clients 54% of Global 100 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: 2019 Product Innovation
2019 Product Innovation Candidate Job Job Recruiter Pulse BrandAmp Match Management Search Profile 1H19 1H19 1H19 1H19 1H19 1H19 Application Job Search Candidate Messaging Employer Candidate Management & Alerts Profile Dashboard Dashboard 2H19 2H19 2H19 2H19 2H19 2H19 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: 2019 Strategic Initiatives
2019 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 Growth Expected in 2H 2020 $40.0 Quarterly Adjusted Revenue2 -1% Quarterly Adjusted EBITDA Margin YOY Change 2% (1)% 2% 0% $35.0 26% $30.0 24% 24% $25.0 22% 23% 23% 23% (1)% (1)% (3)% (3)% 20% $20.0 18% $15.0 -6% 16% $10.0 14% 0% 0% (2)% (6)% $5.0 20% 17% 17% 16% 12% $0.0 10% Q1
Slide 18: Liquidity Snapshot
Liquidity Snapshot Operating Cash Flow & Capex ($ in millions) Debt & Cash ($ in millions) $17.0 $11.1 Net Debt1 of Operating Cash $4.6M as of Flows of 12.31.19 $22.9M in 2019 $10.0 $10.0 $7.6 $8.0 $4.6 $4.1 $3.9 $3.8 $5.4 $3.2 $3.1 $3.2 $4.7 $4.5 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '19 Q2 '19 Q3 '19 Q4
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 DHI GROUP, INC. NON-GAAP SUPPLEMENTAL DATA (Unaudited) (dollars in thousands) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 Reconciliation of Revenues to Adjusted R