NYSE: DHX // Sidoti & Company Fall 2019 Investor Conference // Luc Gregoire // 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. Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 2 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. Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 3 NYSE: DHX
Company Overview • Year-end: 12/31 • Founded: 1990 • Diluted Shares outstanding: ~52M • Headquarters: New York City • FY 2018 Financial Results • Listed: NYSE: DHX (2007) • Revenue: $162M • Employees: ~500 • Adjusted Revenue 1 : $152M • Customers: ~12,000 • Diluted EPS: $0.14 • Brands • Net Income: $7M • Dice • Adjusted EBITDA 1 : $32M • eFinancialCareers • Adjusted EBITDA margin 1 : 21% • ClearanceJobs • Cash: $6M • Debt Outstanding: $18M 1 Notes regarding the use of Non-GAAP financial measures and GAAP to Non-GAAP Reconciliation at end of document Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 4 NYSE: DHX
Second Quarter 2019 Financial Highlights DHI Group Reports Continued Growth in Ongoing Tech-Focused 1 Revenue • Revenues : $37.4 million. Ongoing tech-focused 1 revenues were up 1% year over year and 2% excluding the effect of foreign exchange • Dice revenues: $23.2 million, down 1% YOY, and up slightly on a sequential basis • eFinancialCareers revenues: $8.1 million, in line year over year, excluding foreign exchange • ClearanceJobs revenues: $6.0 million, up 17% year over year • Net income: $3.1 million, or $0.06 per diluted share, compared to a net loss of $(0.02) million, or $0.00 per diluted share in the year ago quarter • Cash flow from operations: $11.1 million • Cash: $7.6 million; total debt reduced to $10 million • Adjusted EBITDA 2 : $9.1 million • Adjusted EBITDA margin 2 : 24% 1 Excludes Dice Europe, which ceased operations August 31, 2018. 2 Notes regarding the use of Non-GAAP financial measures and GAAP to Non-GAAP Reconciliation at end of document Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 5 NYSE: DHX
Three Tech-Focused Brands Premier Tech Pro Marketplace Global Finance Marketplace Cleared Professionals Marketplace • Leading database for tech • Global financial services careers • A leading database of security professionals, managing over platform – available in 18 cleared professionals, with over 10 million US profiles financial markets 1 million candidates registered • Deep expertise in matching • ~25%+ of job postings are in • Unique communication and candidates with employers technology category engagement tools through artificial intelligence and • Complete talent management machine learning products platform to nurture ongoing • 2 million unique visitors/month relationships with candidates Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 6 NYSE: DHX
Three Tech-Focused Brands Growth Opportunity 2018 Revenue ($M) Geo Focus Product Innovation * United States $94 Commercial Accounts Product Innovation Global Financial Markets $34 Asia Pacific Tier II Banks Double Digit Growth United States $21 Government Agencies * 92% Subscription Based Revenue Typically Annual Contracts Paid Upfront 78% Revenue Renewal Rate Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 7 NYSE: DHX
With Loyal Customers Premier Tech Pro Marketplace 6,100 Subscription Clients ~20% of the Fortune 1000 Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 8 NYSE: DHX
With Loyal Customers Global Finance Marketplace 1,000 Subscription Clients 57% of the Global 100 Banks Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 9 NYSE: DHX
With Loyal Customers Cleared Professionals Marketplace 1,700 Subscription Clients 97% of top 50 US Defense Contractors Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 10 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 Revenue Key Statistics 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 Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 11 NYSE: DHX
DHX is in the Midst of Transformation Today Past Job Board/Advertising Emphasis Career Marketplace 8 Non-Synergistic Brands 3 Tech Focused Brands Low Innovation Pace High Innovation Tempo Siloed Brand Teams Centralized Functional Teams Declining Revenue Growing Revenue Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 12 NYSE: DHX
2019 Strategic Initiatives Focus on Revenue Growth 2019 Bring ClearanceJobs Success to Dice and eFinancialCareers 2018 Expand Skills Data Model Modernize Dice.com Website Add Commercial Accounts Sales Team to Accelerate Customer Acquisition Improve Marketing Approach to Accelerate Candidate Acquisition Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 13 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 Sidoti & Co. Fall 2019 Investor Conference // September 25, 2019 14 NYSE: DHX
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