Slide 1: Q2 2023 Investor Presentation
NYSE: DHX Q2 2023 Investor Presentation August 2, 2023
Slide 2: Forward looking statements
Forward looking statements This presentation and oral statements made from time to time by our or maintain the number of customers who purchase recruitment packages, representatives contain forward-looking statements within the meaning of the cyclicality or downturns in the economy or industries we
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. 3
Slide 4: DHI company overview
DHI company overview Year-end Listed HQ 12/31 NYSE: Denver, CO Diluted shares outstanding Q2 2023 DHX (2007) Est. 1990 43M Q2 2023 financial results (ended June 30, 2023) Subscription Employees Revenue Bookings1 clients 475 8,076 $38.5M up 4% YoY $32.3M down 9% YoY Adjusted EBITDA2 Adjusted EBITDA M
Slide 5: DHI business model elements
DHI business model elements Clients ~90% 62% Fee for job ads subscription of annual and profile/ based revenue contracts CV views paid upfront 86% Candidates revenue Free access to renewal rate platforms 5 *Metrics are Q2 2023 for combined Dice and ClearanceJobs
Slide 6: Why DHX
Why DHX Tech sector employment Millions of Our unique candidate Continued demand is anticipated to grow by candidate profiles matching tool is a for tech double digit rates this amassed over 30 must for recruiters professionals drives decade years long-term growth 6
Slide 7: Technology Growth Contributing to Economic Expansion
Technology Growth Contributing to Economic Expansion U.S. job growth for high-tech and creative industries Percent Growth from 2007 Source: U.S. Bureau of Labor Statistics and CBRE Research, August 2022 7
Slide 8: Supply and Demand Imbalance
8 Supply and Demand Imbalance Analysis suggests 30.6 million Full Time Developers will be needed by 2026 Supply and Demand Imbalance in Tech1 2021 Supply 2026 Demand Estimate 2026 Supply Forecast 35.0 FTE Software Developers (in Millions) 30.6 30.0 25.2 25.0 21.6 20.0 15.6 15.0 12.6 12.0 10.0 7.0 5.
Slide 9: The Better Way to Hire In Tech: The Career Marketplace
The Better Way to Hire In Tech: The Career Marketplace Unique Quality Applicants & Dynamic Tech Broad Connection Tech-Focused Technologists Superior Matching Talent Database Options Employer Branding Improves Time-to-Hire the Right High Quality Applies Strong Retention Rates for Technologists Tech H
Slide 10: Our Marketplace Evolution
Our Marketplace Evolution 1990 2025 (E) Job Board Marketplace Community PAST PRESENT FUTURE Primary Audience Primary Audience Primary Audience Active Job Seekers Passive Candidates Active and Passive Focus Focus Focus Transactions Lead Gen Engagement Communication Communication Communication One-Way
Slide 11: DHI skills mapping finds the best candidate
DHI skills mapping finds the best candidate Data wrangling Tech recruiting is all about the unique skills required Data analysis by a position and the candidate profile Statistical Computer vision models Data science Data mining Neuroscience Artificial DHX has spent 10+ years creating a data model t
Slide 12: 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 Click Image Above
Slide 13: Job postings are all about skills
Job postings are all about skills 20-30 skills indicated in each job posting Senior Software Engineer Education, Experience • Bachelor’s degree in MIS, Computer Science, • Experience with Git (Bitbucket a plus) Computer Engineering or related discipline or • Experience mentoring and providing techni
Slide 14: $107M Tech Candidate Marketplace
2022 Revenue $107M 80,000+ Commercial accounts Tech Candidate Subscription clients1 Growth opportunity 18,000 6,007 Staffing, Recruiting, Marketplace Consulting Firms 14 1 As of June 30, 2023
Slide 15: $43M Cleared Professionals Marketplace
2022 Revenue $43M 10,000+ Cleared employers Cleared Professionals Subscription clients1 Growth opportunity 100+ 2,069 Marketplace Government agencies 15 1 As of June 30, 2023
Slide 16: Dice Bookings
Dice Bookings As compared to Q2 2022 New Business bookings1 Renewal rate on revenue $2.5M (-53% from Q2 2022) 84% (-15 points from Q2 2022) Total bookings1 $21.8M Renewal rate on count Retention % (-15% from Q2 2022) 79% (-6 points from Q2 2022) 101% (-8 points from Q2 2022) 16 1See definition of bo
Slide 17: Dice bookings
Dice bookings Quarterly bookings1 ($ in millions) Dice Dice Revenue Renewal Rate $40 110% $35 $36.8 $37.6 100% $30 Pandemic 90% $29.0 $25 $27.9 $25.9 $25.6 $25.7 $25.0 80% $20 $21.4 $21.8 $20.2 $19.2 70% $15 $16.1 $14.7 60% $10 $5 50% $0 40% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4
Slide 18: ClearanceJobs bookings
ClearanceJobs bookings Quarterly bookings1 ($ in millions) ClearanceJobs CJ Revenue Renewal Rate $20 110% 100% $16 $15.9 90% $13.9 $12 Pandemic 80% $12.1 $11.5 $10.6 $10.3 $10.5 $8 $9.7 $9.4 $9.7 70% $7.3 $7.6 $7.6 $6.5 60% $4 50% $- 40% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 202
Slide 19: Dice revenue
Dice revenue Quarterly revenue ($ in millions) Dice Total revenue $39.8 $38.6 $38.5 $38.5 40 $37.1 $33.7 $34.3 35 Pandemic $30.8 $29.4 $28.7 (2)% 30 $27.6 $27.1 $27.0 $26.7 $27.3 $28.2 $26.8 $26.9 $26.3 YoY $24.4 $24.6 25 $22.5 $22.3 $20.5 $19.8 $20.6 $19.4 $19.1 20 15 10 5 0 Q1 2020 Q2 2020 Q3 2020
Slide 20: ClearanceJobs revenue
ClearanceJobs revenue Quarterly revenue ($ in millions) ClearanceJobs 14 $12.3 Pandemic $11.6 $11.7 12 $11.2 $10.2 $9.4 $9.7 10 $8.1 $8.5 8 $7.3 $7.6 $7.6 +20% $6.9 $7.1 YoY 6 4 2 0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Cleara
Slide 21: Profitability
Profitability Quarterly adjusted EBITDA/Margin1 ($ in millions) Adjusted EBITDA Adjusted EBITDA Margin $10.0 30.0% 25% 23% 21% 21% 20% 21% 25.0% $8.0 22% 22% 21% 21% 21% 20% 19% 19% 20.0% In Millions $6.0 15.0% $8.7 $4.0 $7.8 $8.1 $8.1 $8.1 $7.1 $7.1 $6.9 10.0% $6.1 $5.9 $6.4 $5.6 $5.6 $5.0 $2.0 5.0
Slide 22: Liquidity snapshot
Liquidity snapshot Operating cash flow & Capex ($ in millions) Operating cash flow Capex $12.9 $10.2 $9.2 $9.2 $8.1 $7.1 $7.3 $6.4 $6.3 $4.4 $4.4 $4.9 $4.8 $4.1 $4.6 $4.4 $4.3 $4.1 $4.1 $4.2 $3.7 $3.9 $3.6 $3.6 $2.9 $3.1 $3.0 $0.0 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22
Slide 23: Liquidity snapshot
Liquidity snapshot Debt & Cash ($ in millions) Debt Cash Leverage Ratio 1.6 1.43 1.30 1.4 40 1.20 1.20 1.20 1.10 1.07 1.2 1.00 0.97 30 1.0 0.84 0.72 0.72 0.68 0.8 20 0.58 0.6 $27.8 $27.5 $26.8 0.4 10 0.2 $7.6 $7.3 $7.9 $37.0 $37.0 $37.0 $20.0 $20.0 $16.0 $18.0 $3.5 $23.0 $1.5 $33.0 $5.0 $30.0 $3.6 $
Slide 24: Buybacks
Buybacks Shares Repurchased1 and Outstanding (in thousands) Shares Repurchased Shares Outstanding 56,000 2,500 54,077 49,211 54,000 52,935 52,694 49,868 52,160 2,000 52,000 51,219 51,440 48,117 50,000 1,500 48,756 48,524 48,003 48,000 47,368 47,100 1,000 46,000 500 44,000 1,141 1,412 445 1,424 1,099
Slide 25: DHX investment summary
DHX investment summary Tech market for online recruitment tools is growing Tech market focus plays to innovation in collecting + Connecting mapping skills Demonstrated success of product innovation with Futures Now ClearanceJobs Leadership team drives functional strength + focus NYSE:DHX Set up for
Slide 26: Supplemental data - customer data (unaudited)
DHI Group, Inc. Supplemental data - customer data (unaudited) Dice Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Bookings1 (in millions) $29.0 $16.1 $14.7 $19.2 $27.9 $20.2 $21.4 $25.9 $36.8 $25.6 $25.0 $25.7 $37.6 $21.8 Recruitment P
Slide 27: Notes regarding the use of non-GAAP financial measures and guidance
Notes regarding the use of non-GAAP financial measures and guidance Notes Regarding the Use of Non-GAAP Financial Measures period to period by excluding potential differences caused by variations in capital structures (affecting interest expense) and tax positions (such as the impact on periods or c
Slide 28: Supplemental data - non-GAAP (unaudited)
DHI Group, Inc. Supplemental data - non-GAAP (unaudited) (Dollars in millions) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 2020 2020 2020 2020 2020(1) 2021 2021 2021 2021 2021(1) 2022 2022 2022 2022 2022(1) 2023 2023 Reconciliation of Net Income (loss) to Adjusted EBITDA