NYSE: DHX // 31 st Annual ROTH Conference // March 18 th , 2019 // Art Zeile // Luc Gregoire // CEO // CFO
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 business environment, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include, without limitation, information concerning our possible or assumed future results of operations. These statements often include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, our ability to execute our tech-focused strategy, competition from existing and future competitors in the highly competitive market in which we operate, failure to adapt our business model to keep pace with rapid changes in the recruiting and career services business, failure to maintain and develop our reputation and brand recognition, failure to increase or maintain the number of customers who purchase recruitment packages, cyclicality or downturns in the economy or industries we serve, the uncertainty surrounding the United Kingdom’s future departure from the European Union, including uncertainty in respect of the regulation of data protection and data privacy, failure to attract qualified professionals to our websites or grow the number of qualified professionals who use our websites, failure to successfully identify or integrate acquisitions, U.S. and foreign government regulation of the Internet and taxation, our ability to borrow funds under our revolving credit facility or refinance our indebtedness and restrictions on our current and future operations under such indebtedness. These factors and others are discussed in more detail in the Company’s filings with the Securities and Exchange Commission, all of which are available on the Investors page of our website at www.dhigroupinc.com, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, under the headings “Risk Factors,” “Forward-Looking Statements” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” You should keep in mind that any forward-looking statement made by the Company or its representatives herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect us. We have no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws. 2 31 st Annual ROTH Conference // March 2019 NYSE: DHX
Tech Focused Career Marketplaces Our vision is to create indispensable career marketplaces to match the highest quality candidates with the right client career opportunities 3 31 st Annual ROTH Conference // March 2019 NYSE: DHX
Company Overview • Year-end: 12/31 • Founded: 1990 • Diluted Shares outstanding: ~50M • Headquarters: New York City • FY 2018 Financial Results • Listed: NYSE: DHX (2007) • Revenue: $162M • Employees: ~500 • Adjusted Revenue: $152M • Customers: ~12,000 • Diluted EPS: $0.14 • Net Income: $7M • Brands • Adjusted EBITDA: $32M • Dice • Adjusted EBITDA margin: 21% • eFinancialCareers • Cash: $6M • ClearanceJobs • Debt Outstanding: $18M GAAP to Non-GAAP Reconciliation at end of document 4 31 st Annual ROTH Conference // March 2019 NYSE: DHX
Three Tech-Focused Brands Premier Tech Pro Marketplace Global Finance Marketplace Cleared Professionals Marketplace • Leading database for tech • Global financial services careers • A leading database of security professionals, managing over platform – available in 18 cleared professionals, with over 7 million US profiles financial markets 1 million candidates registered • Deep expertise in matching • ~25%+ of job postings are in • Unique communication and candidates with employers technology category engagement tools through artificial intelligence and • Complete talent management machine learning products platform to nurture ongoing • 2 million unique visitors/month relationships with candidates 5 31 st Annual ROTH Conference // March 2019 NYSE: DHX
Three Tech-Focused Brands Growth Opportunity 2018 Revenue ($M) Geo Focus * 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 Typically Annual Contracts Paid Upfront 78% Renewal Rate 6 31 st Annual ROTH Conference // March 2019 NYSE: DHX
With Loyal Customers Premier Tech Pro Marketplace 6,200 Subscription Clients ~20% of the Fortune 1000 7 31 st Annual ROTH Conference. // March 2019 NYSE: DHX
With Loyal Customers Global Finance Marketplace 1,000 Subscription Clients 57% of the Global 100 Banks 8 31 st Annual ROTH Conference // March 2019 NYSE: DHX
With Loyal Customers Cleared Professionals Marketplace 1,700 Subscription Clients 100% of top 50 US Defense Contractors 9 31 st Annual ROTH Conference // March 2019 NYSE: DHX
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 $7.7bn 7.3% Snapshot Profit Businesses 1,200 $881.8m IT Talent Generates ~9% of Online Recruiting Revenue in the US IT Jobs are Growing at a Faster Rate than Other Sectors Over 1M+ Unfilled Tech Positions by 2020 Source: IBIS Online Recruitment Sites Industry Report, November 2018; Sand Cherry Analysis 10 31 st Annual ROTH Conference // March 2019 NYSE: DHX
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 Pace High Innovation Tempo 11 31 st Annual ROTH Conference // March 2019 NYSE: DHX
Concrete Transformation Steps 2019 2018 New CTO New C-Level Leadership Aggressive Product Roadmap Divested Non-Core Assets Intense Focus on User Experience Downsized Office Footprint Dice Commercial Accounts Team Reorganized Sales Team Procurement Office Cost Savings Initiative 12 31 st Annual ROTH Conference // March 2019 NYSE: DHX
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 skill search capabilities with IntelliSearch • No competitor brings this same depth of expertise of Match and Quality for tech professionals 13 31 st Annual ROTH Conference // March 2019 NYSE: DHX
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 don’t want more candidates they want a short list of the RIGHT candidates • 93% of Dice Customers have been migrated to date • Results are a double digit increase in search activity 14 31 st Annual ROTH Conference // March 2019 NYSE: DHX
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 15 31 st Annual ROTH Conference // March 2019 NYSE: DHX
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 Adjusted EBITDA margin in 1H19 and gradual increase in 2H19 DHI Core: Dice US, ClearanceJobs, eFinancialCareers and Targeted Job Fairs Excluding Exchange GAAP to Non-GAAP Reconciliation at end of document 31 st Annual ROTH Conference // March 2019 16 NYSE: DHX
Recommend
More recommend
