Dhi Group, Inc. · NYSE:DHX
Dhi — 31st Annual ROTH Conference (March 2019)
20 slides from Dhi's conference presentation, Mar 18, 2019
Slide 1: 31st Annual ROTH Conference
NYSE: DHX // 31st Annual ROTH Conference // March 18th, 2019 // Art Zeile // Luc Gregoire // CEO // CFO
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: Tech Focused Career Marketplaces
Tech Focused Career Marketplaces Our vision is to create indispensable career marketplaces to match the highest quality candidates with the right client career opportunities 31st Annual ROTH Conference // March 2019 3 NYSE: DHX
Slide 4: Company Overview
Company Overview • Founded: 1990 • Year-end: 12/31 • Headquarters: New York City • Diluted Shares outstanding: ~50M • Listed: NYSE: DHX (2007) • FY 2018 Financial Results • Revenue: $162M • Employees: ~500 • Adjusted Revenue: $152M • Customers: ~12,000 • Diluted EPS: $0.14 • Brands • Net Income: $7M
Slide 5: Three Tech-Focused Brands
Three Tech-Focused Brands Premier Tech Pro Marketplace Global Finance Marketplace Cleared Professionals Marketplace • Leading database for tech • Global financial services careers • A leading database of security professionals, managing over platform – available in 18 cleared professionals, with ove
Slide 6: Three Tech-Focused Brands
Three Tech-Focused Brands Geo Focus 2018 Revenue ($M) Growth Opportunity * Product Innovation United States $97 Commercial Accounts Product Innovation Global Financial Markets $34 Asia Pacific Tier II Banks Continued 20%+ Growth United States $21 Government Agencies * 92% Subscription Based Revenue
Slide 7: With Loyal Customers
With Loyal Customers Premier Tech Pro Marketplace 6,200 Subscription Clients ~20% of the Fortune 1000 31st Annual ROTH Conference. // March 2019 7 NYSE: DHX
Slide 8: With Loyal Customers
With Loyal Customers Global Finance Marketplace 1,000 Subscription Clients 57% of the Global 100 Banks 31st Annual ROTH Conference // March 2019 8 NYSE: DHX
Slide 9: With Loyal Customers
With Loyal Customers Cleared Professionals Marketplace 1,700 Subscription Clients 100% of top 50 US Defense Contractors 31st Annual ROTH Conference // March 2019 9 NYSE: DHX
Slide 10: 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 2018 Key Statistics Revenue Annual Growth 18-23 Snapshot $7.7bn 7.3% Profit Businesses $881.8m 1,200 IT Talent Generates ~9% of Online Recruiting Reve
Slide 11: DHX is in the Midst of Transformation
DHX is in the Midst of Transformation Past Today Competing Priorities Focus on Revenue Growth 8 Non-Synergistic Brands 3 Tech Focused Brands Job Board/Advertising Emphasis Career Marketplace Siloed Brand Teams Centralized Functional Teams Declining Revenue Hit Revenue Inflection Point Low Innovation
Slide 12: Concrete Transformation Steps
Concrete Transformation Steps 2018 2019 New C-Level Leadership New CTO Divested Non-Core Assets Aggressive Product Roadmap Downsized Office Footprint Intense Focus on User Experience Reorganized Sales Team Dice Commercial Accounts Team Cost Savings Initiative Procurement Office 31st Annual ROTH Conf
Slide 13: 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 7+ years creating a data model that captures the relationships between 100,000+ tech skills • Machine Learning allows DHX to constantly improve its ski
Slide 14: Skills Mapping In Action: IntelliSearch
Skills Mapping In Action: IntelliSearch • Recruiters put an entire job posting into the search field instead of a title • IntelliSearch compares ALL skill requirements against the skills represented in 7 million US profiles • This feature has been available in ClearanceJobs for 2+ years • Recruiters
Slide 15: DHX Financial Snapshot
DHX Financial Snapshot Good Profitability Profile Tight Investment Discipline Strong Free Cash Flow Generation Close to Zero Net Debt GAAP to Non-GAAP Reconciliation at end of document 31st Annual ROTH Conference // March 2019 15 NYSE: DHX
Slide 16: Business is at an Inflection Point
Business is at an Inflection Point 20%+ ClearanceJobs 22% -5% 0% DHI Core Reaching an inflection point for the business and crossing the line toward revenue growth Further rationalization of operating expenses, while investing prudently for growth, is expected to result in maintenance of 4Q18 Adjust
Slide 17: DHX Investment Thesis
DHX Investment Thesis Market for Online Recruitment Tools is Growing Tech Market Niche is Attractive and Plays to our IP in Collecting and Mapping Tech Skills New Management Drives Functional Strength and Focus Demonstrated Success of Product Innovation with ClearanceJobs Set for Operating Leverage
Slide 18: NYSE: DHX
. eX cciit, Futures New 7 ‘e? . NYSE: DHX
Slide 19: 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 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation DHI GROUP, INC. NON-GAAP SUPPLEMENTAL DATA (Unaudited - dollars in millions) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year 2018 2018 2018 2018 2018 Reconciliation of Revenues to Adjusted Revenues: Revenues $ 43.1 $ 41.6 $ 38.9 $ 38.0 $ 161.6 Divested businesses (5