Dhi Group, Inc. · NYSE:DHX
Dhi — Needham Emerging Technology Conference 2018
18 slides from Dhi's conference presentation, May 15, 2018
Slide 1: Needham Emerging Technology Conference
Luc Gregoire Chief Financial Officer Needham Emerging Technology Conference May 15, 2018
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 Mission: the problem we’re solving
Our Mission: the problem we’re solving We deliver high quality tech professionals that are relevant to our clients’ needs, as efficiently as possible. 3
Slide 4: DHI at a Glance
DHI at a Glance Key Elements of Our Business Tech-focused brands 10,000+ customers, including leading companies across industries Global infrastructure: Operations Proprietary and scaled tech in North America, Europe, Middle community data, and significant East, and Asia Pacific data analytic capabi
Slide 5: Revenue Profile
Revenue Profile By Brand By Region Other 11% ClearanceJobs 11% Dice U.S. 55% eFinancialCareers 19% TTM Adjusted Revenue as of 3/31/18 of $176 million 5 Note: See reconciliations of non-GAAP measures in the appendix to this presentation.
Slide 6: Strong Financial Profile
Strong Financial Profile Operating Cash Flow & Capex Debt & Cash ($ millions) ($ million) 14.5 78.0 71.0 69.0 9.2 7.2 6.9 42.0 38.0 4.2 3.5 3.5 2.4 3.1 24.7 23.5 1.8 22.1 12.1 16.2 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Operating Cash Flow Capex Debt Cash 6
Slide 7: 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 8: Why Tech?
Why Tech? Tech recruitment a pain point 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 tech companies Supply will not meet demand o 1+ million unfilled tech roles in the U
Slide 9: Dice: A Leading Tech Brand
Dice: A Leading Tech Brand Leading Tech Career Hub Attracting Millions of Tech Pros Leader in 2.2M 2M skills data, Innovative Searchable Unique analytics, recruiting tech monthly market solutions resumes visitors insights 9
Slide 10: Strong Supporting Tech-Centric Brands
Strong Supporting Tech-Centric Brands Tech jobs as portion of total jobs: Tech jobs as portion of total jobs: 25% 75% Financial services firms and recruiters Leading career site for professionals with have access to a global pool of high value active federal security clearances financial professiona
Slide 11: Progress Under Tech-Focused Strategy
Progress Under Tech-Focused Strategy November 2016 Today Diverse portfolio of 7 brands Focused portfolio of 3 across multiple industries tech-centric brands November 2016: Announced April 2018: New CEO joins DHI Tech-focused strategy Non-core divestitures largely Goal: Focus resources behind
Slide 12: New CEO- Art Zeile
New CEO- Art Zeile Background • Multiple-time CEO with startup and turn-around experience • Technology and product development focus • Long time Dice customer Investment thesis • Market demand is growing rapidly for tech professionals • The current solutions are general in nature and don’t serve the
Slide 13: Compelling Commercial Model
Compelling Commercial Model Professionals Recruiters & Employers Want Provide Want Desirable career Free access to employers for Qualified candidates opportunities talent Searchable access to Access to ideal employers Monetized access to professionals for employers professional communities Relevant
Slide 14: Go-To Site for Tech Pros
Go-To Site for Tech Pros Focus: Focus: • Staying relevant • Finding jobs • Job market awareness • Evaluating employers • Get the job/project done • Becoming “searchable” more efficiently Job & Opportunity Discovery Performing on the Job (Active) (Passive) Career Development (Active and Passive) Focu
Slide 15: Dice | Career Tools & Homepage
Dice | Career Tools & Homepage • Modernize Dice US/UK homepage • Improve positioning of content/career tools • Enable personalization • Reduced bounce Salary and Career Path tools built on rates machine learning model, combine: • Title • Increased • Skills applications • Location • Years of experien
Slide 16: 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 capital D
Slide 17: DHI Investment Case
DHI Investment Case • Solid core franchise in a relatively large, under served and growing market • Recurring revenue stream: ~85% of Dice revenue from annual contracts • New operating structure and strategy enables continued investment while maintaining profitability • Strong cash flow generation,
Slide 18: 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
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