Slide 1: Q2 2020 Investor Presentation
Q2 2020 Investor Presentation August 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: Second Quarter 2020 Financial Highlights
Second Quarter 2020 Financial Highlights • Revenues: $33.8 million. Total revenues1 were down 10% YOY • Dice revenues: $20.5 million, down 12% YOY • ClearanceJobs revenues: $7.1 million, up 18% YOY • eFinancialCareers revenues: $6.2 million, down 24% YOY • Net Income: $1.9 million, or earnings $0.04
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 • Greater than 90% Subscription Based Revenue • 70% of Annual Contracts Paid Upfront* • 74% Revenue Renewal Rate* 7 * Dice Renewal rates & Percentage of Annual Contracts
Slide 8: Loyal Customers: Tech Candidate Marketplace
Loyal Customers Tech Candidate Marketplace ~ 5,850 Subscription Clients ~ 20% of Fortune 1000 8
Slide 9: Loyal Customers: Global Finance Marketplace
Loyal Customers Global Finance Marketplace ~ 900 Subscription Clients 75% of Global 50 Banks 9
Slide 10: Loyal Customers: Cleared Professionals Marketplace
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: Great Lockdown will accelerate digitization
Great Lockdown will accelerate digitization Companies globally must rely on tech talent to advance innovation * 12 *Global Jobs; not limited to United States Source: Microsoft Data Science whitepaper “Methodology: Digitization Capacity of the World Economy”
Slide 13: 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 14: Product Innovation
Product Innovation Remote Jobs Recruiter Job Alerts Messaging Workflow Favorites Profile Q220 Q220 Q120 Q419 Q220 Q120 IntelliSearch Recruiter Candidate Candidate Employer Private Email with Job Profile Profile Dashboard Dashboard Management Q220 Q120 Q419 Q419 Q419 Q319 14
Slide 15: 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 16: 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 17: 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 18: DHI Total Revenues and Brand Revenue
DHI Total Revenues and Brand Revenue Revenue (YOY Change)(1) eFinancialCareers Revenue Decline in Q4 2019 + Q1 2020 driven by political protests in Hong Kong and COVID-19 All Brands and Total Revenues Decline in Q2 2020 due to the impact of COVID-19 1 Excludes impact of foreign exchange 18
Slide 19: Profitability
Profitability Quarterly Adjusted EBITDA Margin(1) 1 Business Outlook Expected Adjusted EBITDA Margin1 in 20% range for 2020 1Notes regarding the use of Non-GAAP financial measures and GAAP to Non-GAAP Reconciliation at end of document 19
Slide 20: Liquidity Snapshot
Liquidity Snapshot $25 million revolver 1Q20 draw as precaution for COVID-19 Operating Cash Flow & Capex ($ in millions) Debt & Cash ($ in millions) 1 1 Operating Cash Flows of $22.9M in 2019 and $10.0M YTD 2020 Net Debt1 of $9.5M as of June 30, 2020 1 Notes regarding the use of Non-GAAP financial m
Slide 21: 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 22: NYSE: DHX
~ re Futures NNW AO. NYSE: DHX
Slide 23: 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 24: DHI Group, Inc. Non-GAAP Supplemental Data
DHI Group, Inc. Non-GAAP Supplemental Data (Unaudited) (USD, in thousands) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year Quarter 1 Quarter 2 2019 2019 2019 2019 2019 2020 2020 Reconciliation of Net Income to Adjusted EBITDA Net Income (loss) $ 1.6 $ 3.1 $ 4.4 $ 3.5 $ 12.6 $ (6.6) $ 1.9 Interest