Dhi Group, Inc. · NYSE:DHX
Dhi — Q4 2020 Earnings Presentation
25 slides from Dhi's earnings presentation, Feb 5, 2021
Slide 1: Q4 + Full Year 2020 Investor Presentation
Q4 + Full Year 2020 Investor Presentation February 4, 2021 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 b
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: 12/31/20 • Listed: NYSE: DHX (2007) • Diluted Shares Outstanding: ~52M • Headquarters: Denver, CO • FY 2020 Financial Results • Employees: ~ 520 • Revenues: $137M • Clients: ~9,500 • Net Loss2: $30M • Candidate Focus: Technology Professionals • Diluted Lo
Slide 5: Fourth Quarter 2020 Financial Highlights
Fourth Quarter 2020 Financial Highlights • Revenues: $33.2 million. Total revenues were down 12% YOY • Dice revenues: $19.4 million, down 17% YOY • ClearanceJobs revenues: $7.6 million, up 15% YOY • eFinancialCareers revenues: $6.2 million, down 21% YOY • Net Income: $2.0 million, compared to net in
Slide 6: Three Tech-Focused Brands
Three Tech-Focused Brands Leading database of security cleared Global financial services careers Focused on technologists, managing professionals. Transformed from job platform ~30% of job postings are in over 9 million US profiles board to career marketplace. technology Geographic Focus United Stat
Slide 7: Business Model Elements
Business Model Elements • Clients pay for job advertising and profile/resume views • Greater than 90% Subscription Based Revenue • 65% of Annual Contracts Paid Upfront* • 70% Revenue Renewal Rate* • Candidates do not pay for access to platforms 7 * Dice Renewal rates & Percentage of Annual Contracts
Slide 8: Loyal Customers: Tech Candidate Marketplace
Loyal Customers Tech Candidate Marketplace ~ 5,150 Subscription Clients ~ 20% of Fortune 1000 8
Slide 9: Loyal Customers: Cleared Professionals Marketplace
Loyal Customers Cleared Professionals Marketplace ~ 1,700 Subscription Clients ~ 80% of top 50 US Defense Contractors 9
Slide 10: Loyal Customers: Global Finance Marketplace
Loyal Customers Global Finance Marketplace ~ 800 Subscription Clients 75% of Global 50 Banks 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: Demand for Technology Talent to Accelerate
Demand for Technology Talent to Accelerate Companies globally must rely on tech talent to advance innovation * Technology job capacity* 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 Candidate Instant Self-Serve IntelliSearch Follow, Identification Search + Messaging Authentication BrandAmp Job Alerts Voice, Video Broadcast Service Message Q420 Q420 Q420 Q420 Q320 Q420 IntelliSearch Remote Jobs Client Team Workflow Job Alerts Messaging Job Alerts Dashboard Q32
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 16
Slide 17: 2020 Go-to-Market Transformation
2020 Go-to-Market Transformation • Dice and eFC Adopt ClearanceJobs Marketplace Features • Strong Sales + Marketing Leadership • Expansion of Commercial Accounts Team • Activation of Additional Marketing Channels • ClearanceJobs Engages Government Accounts 17
Slide 18: DHI Revenues
DHI Revenues Revenues declined during 2020 for Dice and eFC due to the impact of COVID-19 and with eFC continuing to be impacted by Brexit in the U.K. and political unrest in Hong Kong. Revenues for ClearanceJobs continues to grow based on its product differentiation and strong market position. 18
Slide 19: Profitability
Profitability Business Outlook Expected Adjusted EBITDA Margin1 in 20% range for Q1 2021. 1 Notes 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) Operating cash flows of $22.9M in FY 2019 and $18.7M in FY 2020. Net debt1 of $12.4M as of December 31, 2020 1 Notes regarding the use of Non-GAAP fina
Slide 21: DHX Investment Thesis
DHX Investment Thesis • Tech Market for Online Recruitment Tools is Growing • Tech Market Focus Plays to our Innovation in Collecting + Mapping Skills • Leadership Team Drives Functional Strength + Focus • Demonstrated Success of Product Innovation with ClearanceJobs • Set for Operating Leverage Exp
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 Quarter 3 Quarter 4 Full Year 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 Reconciliation of Net Income to Adjusted EBITDA Net Income (loss) $ 1.6 $ 3
Slide 25: DHI Group, Inc. Non-GAAP Supplemental Data
DHI Group, Inc. Non-GAAP Supplemental Data (Unaudited) Reconciliation of Diluted Earnings per Share to Adjusted Diluted Earnings Three Months Ended December 31, Year Ended December 31, per Share: 2020 2019 2020 2019 Diluted earnings (loss) per share1 $ 0.04 $ 0.07 $ (0.62) $ 0.24 Impairment of goodw