Scot Melland Chairman, President & CEO Mike Durney EVP, Industry Brands Group & CFO
Forward Looking Statement Look to Dice for Your Staffing Solutions This presentation and oral statements made from time to time by our representatives contains 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 information without limitation concerning our possible or assumed future results of operations, including descriptions of our business strategy. 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, 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, 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 Investor Relations page of our website at www.diceholdingsinc.com, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, 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. This presentation includes certain "Non-GAAP financial information." A reconciliation of such information to the most directly comparable GAAP data can be found in the Company’s most recent earnings release.
Dice Holdings: Leading Specialty Sites Look to Dice for Your Staffing Solutions FY 2013G Revenue Contribution Tech & Clearance 71% Finance 16% Energy Career Center 11% Advertising / Media Data Events
Delivering Specific Audiences in Right Context Look to Dice for Your Staffing Solutions F iltered A ctionable Employers, Recruiters & Professionals Efficiency Efficiency Marketers S kill T alent Specific
Consistently Delivering Strong Profitability Look to Dice for Your Staffing Solutions ($mm) $250.0 $215.0 $195.4 $200.0 $179.1 $155.0 $142.4 $150.0 $129.0 $110.0 $100.0 $79.0 $77.6 $77.4 $68.0 $62.5 $52.1 $49.6 $50.0 $0.0 2007 2008 2009 2010 2011 2012 2013G Margin % 44% 44% 45% 40% 43% 40% 37% Revenues Adjusted EBITDA Note: Revenues and Adjusted EBITDA not adjusted acquisitions.
Today’s Agenda Look to Dice for Your Staffing Solutions The Market Transforming our Services The Margin Question Cash Priorities Q&A
Online Recruitment Market Growing Look to Dice for Your Staffing Solutions Estimate of Global Online Recruiting Market (in billions) $4.9 $4.7 6% $4.4 $3.5 $3.2 North America International Notes: Dice Estimates; International does not include Africa, Middle East.
Solid New Job Creation… Look to Dice for Your Staffing Solutions Professional and Business Services (in thousands) 600 500 400 300 200 100 0 -100 -200 2/1/2002 2/1/2003 2/1/2004 2/1/2005 2/1/2006 2/1/2007 2/1/2008 2/1/2009 2/1/2010 2/1/2011 2/1/2012 2/1/2013 Monthly Change in Employment Source: Bureau of Labor Statistics, Establishment Survey
….But Turnover is the Driver! Look to Dice for Your Staffing Solutions Professional and Business Services (in thousands) 600 500 average 400 300 200 100 0 -100 -200 2/1/2002 2/1/2003 2/1/2004 2/1/2005 2/1/2006 2/1/2007 2/1/2008 2/1/2009 2/1/2010 2/1/2011 2/1/2012 2/1/2013 Monthly Change in Employment Level of Voluntary Quits Source: Bureau of Labor Statistics, Establishment & JOLTS Surveys
Today’s Agenda Look to Dice for Your Staffing Solutions The Market Transforming our Services The Margin Question Cash Priorities Q&A
Transforming our Services Look to Dice for Your Staffing Solutions #1 Bring Efficiency to Social Recruiting #2 Expand Passive Reach #3 Create Complete Solution
Open Web Turbocharges Efficient Recruiting Look to Dice for Your Staffing Solutions What it is Next-generation, cloud-based, natural language search platform What it does “Real-time” aggregating, parsing, normalizing, indexing data to create a comprehensive open web profile Global scale Aggregates and timestamps data from ~50 leading social media sites and billions of web pages
Creates Open Web “Super” Profile Look to Dice for Your Staffing Solutions The conference audience is viewing a demonstration. To see Open Web live, please contact ir@dice.com.
Today’s Agenda Look to Dice for Your Staffing Solutions The Market Transforming our Services The Margin Question Cash Priorities Q&A
Consistently Delivering Strong Profitability Look to Dice for Your Staffing Solutions ($mm) $250.0 $215.0 $195.4 $200.0 $179.1 $155.0 $142.4 $150.0 $129.0 $110.0 $100.0 $79.0 $77.6 $77.4 $68.0 $62.5 $52.1 $49.6 $50.0 $0.0 2007 2008 2009 2010 2011 2012 2013G Margin % 44% 44% 45% 40% 43% 40% 37% Revenues Adjusted EBITDA Note: Revenues and Adjusted EBITDA not adjusted acquisitions.
Margin Impacts 2011 2012 2013 Look to Dice for Your Staffing Solutions 2011 Margin = 43% $215 mm in Revenues 1 $195 mm in Revenues 100 bps = ~$2.2 mm 100 bps = ~$2 mm 2012 Impact 2013 Impact 50 bps eFinancialCareers 200 bps 200 bps Slashdot Media 75 bps Development Projects 100 bps Open Web Investment 100 bps CRM to SaaS Model 100 bps 2012 Margin = 40% 2013G Margin = 37% 1 Guidance as provided on April 23, 2013
Long Term Goal: 40 – 45% Margins Look to Dice for Your Staffing Solutions Do these items change our margin profile? Open Web No Slashdot Media No eFinancialCareers ? CRM No
Today’s Agenda Look to Dice for Your Staffing Solutions The Market Transforming our Services The Margin Question Cash Priorities Q&A
Strong Free Cash Flow Look to Dice for Your Staffing Solutions Quarterly Free Cash Flow ($mm) $70.0 $61.4 $50.2 $48.8 $42.4 $35.0 $19.8 $19.0 $0.0 2008 2009 2010 2011 2012 2013 1Q 2Q 3Q 4Q
Growth through Acquisitions Look to Dice for Your Staffing Solutions International Opens New Markets Acquisition Use Content Sites to Expand into Careers Strategy Content/Information, Services, Tools Drives Recurring Use for Communities Service Creates Deeper Relationships Other Verticals Expands Vertical Expertise Highly Paid Difficult/Costly to Recruit Skill/Experience Specificity Part of a Community High Velocity of Change
Returning Cash to Shareholders Look to Dice for Your Staffing Solutions Weighted Average Diluted Shares Outstanding (mm) 80.0 $30 mm authorized $65 mm 70.0 authorized 60.0 $50 mm authorized ~ ~ 50.0 0 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Note: Weighted average diluted shares outstanding represent the share count as used in determining quarterly earnings per share.
Dice Holdings Highlights Look to Dice for Your Staffing Solutions Vertical Focus = Strong Competitive Advantage Transforming Services with Open Web Recruiting Tool Growth Opportunities for Technology, Finance and Energy Verticals Excellent Margins coupled with Strong Cash Generation
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