There is a limit to how many different companies and sectors one can reasonably follow, but with how quickly news flows, it is tempting to stretch one’s bounds. Using various tools and data sources, one can get reasonably informed on a company in a very short amount of time. However, in this haste, narratives are often driven by stock prices as much as they are by fundamentals. That is the concept I want to discuss today – stock price driven narratives not backed by fundamentals. D.R. Horton, Inc.'s (NYSE:D ...

Market Overview - Pre-market futures are showing slight increases with the Dow and S&P 500 up by +9 points and Nasdaq up by +4 points [1] - Bond yields are decreasing, with the 10-year yield at +4.36%, the 2-year at +3.84%, and the 30-year down to +4.94% [1] Q2 Earnings Reports - General Motors (GM) reported earnings of $2.53 per share, exceeding expectations by +5.86%, with revenues of $47.98 billion, surpassing estimates by +1.89%. However, North American EBIT fell below expectations, leading to a -1.8% drop in shares [2] - Lockheed Martin (LMT) had a strong earnings surprise of +12.33% with earnings of $7.29 per share, but revenues of $18.2 billion were below consensus, resulting in a -7% pre-market decline. Northrop Grumman (NOC) reported earnings of $7.11 per share, exceeding estimates by +5.96% and outperforming on revenue by +2.94%, leading to a +3% increase in shares [3] - D.R. Horton (DHI) reported earnings of $3.36 per share, beating consensus by +15.86%, with revenues of $9.23 billion, exceeding expectations by +5.13%. Shares rose by +6% [4] - Coca-Cola (KO) reported earnings of 87 cents per share, beating expectations of 83 cents, but revenues of $12.54 billion fell short by -0.44%, leading to a modest decline in shares [5] - Sherwin-Williams (SHW) missed earnings expectations by -10.11% with earnings of $3.38 per share, although revenues of $6.31 billion slightly exceeded estimates by +0.49%, resulting in a -4% drop in shares [6] Upcoming Earnings Expectations - Key earnings reports expected after market close include Texas Instruments (TXN), Capital One (COF), and Intuitive Surgical (ISRG). TXN anticipates double-digit growth in both earnings and revenues, COF expects over +20% growth, and ISRG forecasts +8% earnings growth and +16.8% revenue growth [7]

Industry Overview - The Zacks Internet - Content industry is facing challenges due to persistent inflation and higher interest rates, negatively impacting ad spending, which is the primary revenue source for industry participants [1][4] - Despite these challenges, there is solid demand for digital offerings, with increasing importance placed on video content and cloud-based applications [1][3] - The proliferation of AI and Generative AI is aiding industry players, with companies like RELX and DHI Group expanding their presence across social media, display, connected TV, and search [1][2] Trends and Challenges - The industry is experiencing rapid technological change and evolving consumer behavior, driving demand for mobile, digital, and cloud-based offerings [3] - Advertising and subscriptions remain major revenue sources, but macroeconomic challenges are expected to hurt ad spending in the near term [4] - Regulatory pressures, particularly in China and the EU, are increasing, with regulations affecting direct advertising and data protection [5] Industry Performance - The Zacks Internet - Content industry ranks 203, placing it in the bottom 17% of over 250 Zacks industries, indicating dull near-term prospects [6][7] - The aggregate earnings outlook is negative, with a 3.4% decrease in the Zacks Consensus Estimate for the industry's 2025 earnings since May 31, 2024 [8] Stock Performance - The industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500 over the past year, returning 20.9% compared to 10% for the S&P 500 and 8% for the sector [11] - The current trailing 12-month price-to-sales ratio for the industry is 6.92X, higher than the S&P 500's 5.29X and the sector's 7.14X [13] Notable Companies - RELX, a Zacks Rank 2 (Buy) company, is benefiting from strong demand for Financial Crime Compliance and Digital Fraud and Identity Solutions, with a recent earnings estimate increase to $1.72 per share for 2025 [17][18] - DHI Group, also a Zacks Rank 2 stock, is seeing benefits from improved offerings and cost savings, with a 4-cent increase in the earnings estimate to 15 cents per share for 2025 [21][23]

Core Insights - The article emphasizes the importance of earnings estimates and revisions in identifying strong stocks, while also acknowledging that investors have diverse strategies [1] - Value investing is highlighted as a popular method for identifying undervalued stocks, which can lead to profit opportunities [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly focusing on value stocks with high grades [3] Company Analysis - DHI Group (DHX) is identified as a stock to watch, currently holding a Zacks Rank of 2 (Buy) and an A for Value [4] - DHX has a Forward P/E ratio of 13.41, significantly lower than the industry average of 25.24, indicating potential undervaluation [4] - Over the past year, DHX's Forward P/E has fluctuated between a high of 28.42 and a low of 8.99, with a median of 11.80 [4] Valuation Metrics - The P/S ratio is another key metric used by value investors, with DHX's P/S ratio at 0.63 compared to the industry average of 1.15 [5] - These valuation figures suggest that DHX is likely undervalued at present, supported by a strong earnings outlook [6]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Unaudited Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) The company's Q1 2025 financials show a $9.4 million net loss and a 10% revenue decline due to goodwill impairment and restructuring charges [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $212.1 million due to a goodwill reduction, while liabilities rose slightly and cash declined **Condensed Consolidated Balance Sheet Highlights (in thousands)** | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $2,655 | $3,702 | | Goodwill | $120,700 | $128,100 | | Total Assets | $212,069 | $221,371 | | **Liabilities & Equity** | | | | Deferred Revenue (Current) | $50,124 | $44,934 | | Long-term debt | $33,000 | $32,000 | | Total Liabilities | $108,171 | $107,046 | | Total Stockholders' Equity | $103,898 | $114,325 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue fell 10% to $32.3 million, resulting in a $9.4 million net loss due to impairment and restructuring charges **Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data)** | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $32,301 | $36,025 | | Total operating expenses | $41,182 | $34,056 | | Impairment of goodwill | $7,400 | $0 | | Restructuring | $2,270 | $0 | | Operating income (loss) | $(8,881) | $1,969 | | Net loss | $(9,351) | $(1,512) | | Diluted loss per share | $(0.21) | $(0.03) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow remained stable at $2.2 million, while investing and financing activities led to a $1.0 million net decrease in cash **Cash Flow Summary (in thousands)** | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $2,248 | $2,087 | | Net cash used in investing activities | $(2,160) | $(4,442) | | Net cash from (used in) financing activities | $(1,135) | $1,389 | | **Net change in cash** | **$(1,047)** | **$(966)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail a segment change, a $7.4M goodwill impairment, a $2.3M restructuring charge, and divergent brand revenue performance - In January 2025, the company restructured to separate its two brands, ClearanceJobs and Dice, into distinct divisions, resulting in an **8% workforce reduction** and a **$2.3 million charge** for severance costs[38](index=38&type=chunk) - Following the restructuring, the company performed a goodwill impairment test and recorded a **$7.4 million impairment charge** for the Dice reporting unit[57](index=57&type=chunk) - The company changed its reportable segments from a single 'Tech-focused' segment to two segments: **ClearanceJobs and Dice**, to align with the new operating structure[103](index=103&type=chunk)[104](index=104&type=chunk) **Disaggregated Revenue by Brand (in thousands)** | Brand | Q1 2025 Revenue | Q1 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | ClearanceJobs | $13,377 | $13,005 | +3% | | Dice | $18,924 | $23,020 | -18% | | **Total** | **$32,301** | **$36,025** | **-10%** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 10% revenue decline driven by the Dice segment, an $8.9 million operating loss, and sufficient liquidity [Revenue and Key Metrics](index=25&type=section&id=Revenue%20and%20Key%20Metrics) Key metrics show a 14% drop in Dice customers and a 12% rise in average revenue per customer for ClearanceJobs **Recruitment Package Customers** | Brand | As of March 31, 2025 | As of March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | ClearanceJobs | 1,891 | 2,032 | (7)% | | Dice | 4,490 | 5,250 | (14)% | **Average Annual Revenue per Recruitment Package Customer** | Brand | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | ClearanceJobs | $25,806 | $23,050 | 12% | | Dice | $16,384 | $15,997 | 2% | **Backlog (in thousands)** | Metric | March 31, 2025 | March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Backlog | $107,760 | $110,736 | (3)% | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q1 revenue fell 10% to $32.3 million, leading to an $8.9 million operating loss due to impairment and restructuring costs - Dice revenue **decreased by $4.1 million (18%)** due to macroeconomic conditions driving lower renewal rates and new business activity[136](index=136&type=chunk) - ClearanceJobs revenue **increased by $0.4 million (3%)** driven by high demand for professionals with government clearance[136](index=136&type=chunk) - Product development expenses **decreased by $1.0 million (20%)**, primarily due to $2.2 million in lower compensation costs in the Dice segment from reduced headcount[138](index=138&type=chunk) - Sales and marketing expenses **decreased by $1.6 million (12%)**, largely due to lower compensation costs and reduced discretionary marketing spend in the Dice segment[139](index=139&type=chunk) [Non-GAAP Financial Measures](index=33&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA decreased to $7.0 million with a margin of 22%, down from 24% in the prior-year period **Reconciliation of Net Loss to Adjusted EBITDA (in thousands)** | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(9,351) | $(1,512) | | Interest expense | 660 | 946 | | Income tax expense (benefit) | (126) | 2,269 | | Depreciation | 3,984 | 4,456 | | Non-cash stock-based compensation | 1,063 | 2,144 | | Impairment of goodwill | 7,400 | — | | Restructuring | 2,270 | — | | Other adjustments | 1,081 | 266 | | **Adjusted EBITDA** | **$6,981** | **$8,569** | **Adjusted EBITDA Margin** | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $32,301 | $36,025 | | Adjusted EBITDA | $6,981 | $8,569 | | **Adjusted EBITDA Margin** | **22%** | **24%** | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with $2.7 million in cash and $51.0 million available under its credit facility - At March 31, 2025, the company had **cash of $2.7 million** and **$51.0 million in borrowing capacity** under its $100.0 million Credit Agreement[158](index=158&type=chunk)[159](index=159&type=chunk) - Anticipated capital expenditures for fiscal year 2025 are approximately **$9 million to $10 million**[169](index=169&type=chunk) - As of March 31, 2025, **$4.3 million remained available** for purchase under the current stock repurchase plan[168](index=168&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its $33.0 million of variable-rate debt - The company has interest rate risk from its Credit Agreement. A hypothetical **1.0% increase** on the **$33.0 million** of variable rate borrowings outstanding as of March 31, 2025, would increase annual interest expense by approximately **$0.3 million**[176](index=176&type=chunk) - Operations are conducted within the United States, so current operations are **not subject to foreign exchange risk**[174](index=174&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes - The CEO and CFO concluded that the company's disclosure controls and procedures are **effective** to provide reasonable assurance that information required to be disclosed is recorded, processed, and reported in a timely manner[180](index=180&type=chunk) - **No material changes** to internal controls over financial reporting occurred during the quarter ended March 31, 2025[181](index=181&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any material pending legal proceedings outside the ordinary course of business - Except as noted in Note 11 of the financial statements, the company is **not currently a party to any material pending legal proceedings**[183](index=183&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred from the risk factors disclosed in the 2024 Annual Report on Form 10-K - As of May 12, 2025, there have been **no material changes** from the risk factors previously disclosed in the Annual Report on Form 10-K[184](index=184&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 886,012 shares in Q1 2025 and approved a new $5.0 million stock repurchase program - In January 2025, the Board approved a new stock repurchase program authorizing the purchase of up to **$5.0 million of common stock** through February 2026[186](index=186&type=chunk) **Stock Repurchases for Q1 2025** | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Approx. Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | :--- | | Jan 2025 | 482,526 | $2.53 | — | — | | Feb 2025 | 242,655 | $2.56 | 150,935 | $4,624,010 | | Mar 2025 | 160,831 | $1.84 | 160,831 | $4,327,495 | | **Total** | **886,012** | | **311,766** | | [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025 - During the three-month period ended March 31, 2025, **no director or officer adopted or terminated** a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement"[192](index=192&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and corporate governance documents

分组1 - DHI Group reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, but down from $0.05 per share a year ago, representing an earnings surprise of 300% [1] - The company posted revenues of $32.3 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.06%, and down from $36.03 million year-over-year [2] - DHI Group has surpassed consensus EPS estimates in all four of the last quarters, while it has topped consensus revenue estimates two times during the same period [2] 分组2 - The stock has underperformed, losing approximately 31.6% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $32.45 million, and for the current fiscal year, it is $0.11 on revenues of $131.69 million [7] - The Zacks Industry Rank for Internet - Content is in the bottom 27% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - DHI Group's 2024 revenue was $142 million, with a compound annual growth rate (CAGR) of 6% from 2020 to 2024[8] - The company's adjusted EBITDA for 2024 was $35 million, resulting in an adjusted EBITDA margin of 25%[10, 11] - DHI Group's debt stood at $32 million[12] - The company repurchased $70 million worth of shares from 2020 to Q1 2025[13] - Q1 2025 operating cash flow was $22 million[63] Business Segments - ClearanceJobs' 2024 revenue was $54 million, with a CAGR of 16% from 2020 to 2024[43, 77] - ClearanceJobs had 1900 subscription clients[44, 77] - Dice's 2024 revenue was $88 million, with a CAGR of 2% from 2020 to 2024[45, 91] - Dice had 4500 subscription clients[46, 91] Key Metrics - ClearanceJobs Q1 2025 revenue renewal rate was 92% and the revenue retention rate was 106%[81] - Dice Q1 2025 revenue renewal rate was 70% and the revenue retention rate was 92%[94] - DHI Group has approximately 90% annual recurring revenue[18, 49, 109]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $32.3 million, a 10% decline year over year and a 7% decline sequentially [24] - Adjusted EBITDA decreased 19% to $7 million, with an adjusted EBITDA margin of 22%, compared to $8.6 million and a margin of 24% in the prior year [29][30] - The company recorded a net loss of $9.4 million or $0.21 per diluted share, compared to a net loss of $1.5 million or $0.03 per diluted share in the prior year [29] Business Line Data and Key Metrics Changes - ClearanceJobs revenue was $13.4 million, up 3% year over year but down 3% sequentially, with adjusted EBITDA of $5.7 million and an adjusted EBITDA margin of 43% [24][30] - Dice revenue was $18.9 million, down 18% year over year and down 10% sequentially, with adjusted EBITDA of $3.4 million and an adjusted EBITDA margin of 18% [26][30] - ClearanceJobs bookings were $16.8 million, down 1% year over year, while Dice bookings were $25.3 million, down 20% year over year [24][26] Market Data and Key Metrics Changes - New tech job postings increased by 16% year over year in Q1, averaging 215,000 new postings per month [13] - The tech staffing sector's growth forecast for 2025 was revised to a 2% year over year increase, down from an original forecast of 5% [13] - Tech recruiter job postings increased by 36% year over year in Q1, indicating a forthcoming rise in demand for hiring tech professionals [14] Company Strategy and Development Direction - The company has realigned operations around two distinct brands, ClearanceJobs and Dice, to enhance profitability and unlock new growth opportunities [8][10] - Focus on recession-resistant sectors like consulting, healthcare, financial services, and education for new business [19] - The company is targeting a 24% adjusted EBITDA margin for the full year 2025 and plans to continue share repurchase programs to enhance shareholder value [21][33] Management's Comments on Operating Environment and Future Outlook - Management noted that tech hiring demand is gradually returning to normal levels, with consistent year-over-year increases in tech job postings since August 2024 [12] - The uncertainty surrounding the Doge initiative has impacted new business bookings but is expected to be temporary [15] - Management remains confident in the long-term growth potential of ClearanceJobs and Dice as tech hiring demand normalizes [22] Other Important Information - The company has reduced operating costs by over $20 million through restructurings since May 2023 [10] - The average annual revenue per ClearanceJobs customer increased by 12% year over year to $25,800, while Dice's average annual revenue per customer was $16,400, up 2% year over year [25][27] - The company ended the quarter with $2.7 million in cash and total debt of $33 million, maintaining a leverage ratio of 0.98 times adjusted EBITDA [32] Q&A Session Summary Question: What gives ClearanceJobs a significantly higher adjusted EBITDA margin than Dice? - Management indicated that ClearanceJobs has a revenue per employee of about $700,000, while Dice's is about half that, necessitating more effort to enhance Dice's capabilities [37][38] Question: Is corporate expense running at about $6.05 million per quarter? - Corporate expenses are expected to run about $7 million annually, with a small team managing these costs [39][40] Question: What is the impact of lower demand on Dice's bookings? - Lower demand is attributed to multi-year contracts from previous high-demand periods, leading to challenges in renewals [42][44] Question: Has there been any flow of funds from EU defense spending? - There has been no significant change in funding for additional defense projects yet, but discussions indicate a likely increase in defense spending later this year [46][48] Question: What is the expected EBITDA margin for ClearanceJobs? - Management believes ClearanceJobs should maintain a 40% EBITDA margin for the foreseeable future [56][58] Question: How is the new business environment for Dice? - There is still uncertainty for commercial accounts, but bookings for staffing and recruiting agencies have exceeded expectations [60]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $32.3 million, a 10% decline year over year and a 7% decline sequentially [23] - Adjusted EBITDA for the quarter was $7 million, representing a margin of 22%, down from $8.6 million and a margin of 24% in the prior year [29] - The company recorded a net loss of $9.4 million or $0.21 per diluted share, compared to a net loss of $1.5 million or $0.03 per diluted share in the prior year [29] Business Line Data and Key Metrics Changes - ClearanceJobs (CJ) revenue was $13.4 million, up 3% year over year but down 3% sequentially, with adjusted EBITDA of $5.7 million and a margin of 43% [23][30] - Dice revenue was $18.9 million, down 18% year over year and down 10% sequentially, with adjusted EBITDA of $3.4 million and a margin of 18% [26][30] - CJ's average annual revenue per recruitment package customer increased by 12% year over year to $25,800, while Dice's was up 2% year over year to $16,400 [25][27] Market Data and Key Metrics Changes - New tech job postings increased by 16% year over year in Q1, averaging 215,000 new postings each month [12] - The tech staffing sector's growth forecast for 2025 was revised to a 2% year over year increase, down from an original forecast of 5% [12] - Tech recruiter job postings increased by 36% year over year, indicating a forthcoming rise in demand for hiring tech professionals [13] Company Strategy and Development Direction - The company has realigned operations around two distinct brands, ClearanceJobs and Dice, to enhance profitability and unlock growth opportunities [7] - Focus on recession-resistant sectors such as consulting, healthcare, financial services, and education for new business [18] - Continued investment in product innovation to drive customer engagement and future growth [22] Management's Comments on Operating Environment and Future Outlook - Management noted a gradual return to normal levels of tech hiring demand, with consistent year-over-year increases in job postings since August 2024 [11] - The company reiterated its full-year revenue guidance of $131 million to $135 million, with a target adjusted EBITDA margin of 24% [20][33] - Management expressed confidence in the long-term growth potential of ClearanceJobs and Dice as tech hiring demand normalizes [21] Other Important Information - The company has implemented cost reductions through restructuring, achieving a reduction of approximately $20 million in annual operating expenses [28] - A $5 million share repurchase program was announced, reflecting confidence in the strength of the brands and commitment to shareholder value [20][33] - Deferred revenue at the end of the quarter was $50.7 million, down 9% year over year [32] Q&A Session Summary Question: What gives ClearanceJobs a significantly higher adjusted EBITDA margin than Dice? - Management indicated that ClearanceJobs has a higher revenue per employee, approximately $700,000, compared to Dice's lower figure, necessitating more effort to enhance Dice's capabilities [37] Question: What is the current state of corporate expenses? - Corporate expenses are expected to run about $7 million annually, with a small team managing public company costs [40] Question: Can you explain the lower demand impacting Dice's bookings? - The decline in bookings was attributed to multi-year contracts from previous high-demand periods being adjusted due to current lower demand [43][45] Question: Has there been any impact from EU defense spending? - Management noted that while there was initial fear regarding contract terminations, larger contractors have not experienced significant changes, and discussions around increased defense budgets are promising [47][48] Question: How is the new business environment for Dice? - Management observed that while uncertainty remains for commercial accounts, bookings for staffing and recruiting agencies have exceeded expectations [59]

[DHI Group Q1 2025 Financial Results](index=1&type=section&id=DHI%20Group%20Reports%202025%20First%20Quarter%20Financial%20Results) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Q1 2025 revenue fell 10% to $32.3 million, with a net loss of $9.4 million due to goodwill impairment and restructuring charges Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$32.3M** | **$36.0M** | **-10%** | | - ClearanceJobs Revenue | $13.4M | $13.0M | +3% | | - Dice Revenue | $18.9M | $23.0M | -18% | | **Total Bookings** | **$42.1M** | **$48.8M** | **-14%** | | - ClearanceJobs Bookings | $16.8M | $17.0M | -1% | | - Dice Bookings | $25.3M | $31.8M | -20% | | **Net Loss** | **($9.4M)** | **($1.5M)** | **-527%** | | Diluted EPS | ($0.21) | ($0.03) | - | | Non-GAAP EPS | $0.04 | $0.05 | -20% | | **Adjusted EBITDA** | **$7.0M** | **$8.6M** | **-19%** | | Adjusted EBITDA Margin | 22% | 24% | -2 p.p. | | **Cash Flow from Operations** | **$2.2M** | **$2.1M** | **+8%** | | Total Debt | $33.0M | $41.0M | -19.5% | - The net loss was significantly impacted by a **$7.4 million impairment to Dice goodwill** and a **$2.3 million restructuring charge** during the quarter[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO highlighted resilience amid challenges, noting strong margins and early signs of a tech hiring recovery - CEO Art Zeile noted the company is navigating a challenging macroeconomic environment but maintained a **strong company-wide Adjusted EBITDA margin**[4](index=4&type=chunk) - A **slow but steady rise in new tech job postings** is being observed, suggesting companies are starting to reinvest in technology initiatives like AI[4](index=4&type=chunk) - ClearanceJobs is well-positioned for continued growth, potentially benefiting from a proposed **$150 billion increase in U.S. defense funding** and the development of new Govtech services[6](index=6&type=chunk) - CFO Greg Schippers stated that while ClearanceJobs bookings are expected to grow in 2025, **total bookings growth is not anticipated to resume until tech hiring normalizes**[7](index=7&type=chunk) [Full-Year 2025 Guidance](index=2&type=section&id=Full-Year%202025%20Guidance) The company reiterated its full-year 2025 guidance, projecting revenue of $131-$135 million and a 24% Adjusted EBITDA margin 2025 Financial Guidance | Metric | Guidance | | :--- | :--- | | Full-Year 2025 Total Revenue | $131M - $135M | | Q2 2025 Revenue | $32M - $33M | | Full-Year 2025 Adjusted EBITDA Margin | 24% | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2025 revenue declined to $32.3 million, leading to an operating loss of $8.9 million due to significant impairment and restructuring costs Condensed Consolidated Statements of Operations (Unaudited, in thousands) | | For the three months ended March 31, | | :--- | :---: | :---: | | | **2025** | **2024** | | **Revenue** | **$32,301** | **$36,025** | | Total operating expenses | 41,182 | 34,056 | | *Impairment of goodwill* | *7,400* | *—* | | *Restructuring* | *2,270* | *—* | | **Operating income (loss)** | **(8,881)** | **1,969** | | Income (loss) before income taxes | (9,477) | 757 | | **Net loss** | **$(9,351)** | **$(1,512)** | | **Diluted loss per share** | **$(0.21)** | **$(0.03)** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operations increased slightly to $2.2 million, while the quarter-end cash balance decreased to $2.7 million Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) | | For the three months ended March 31, | | :--- | :---: | :---: | | | **2025** | **2024** | | **Net cash flows from operating activities** | **$2,248** | **$2,087** | | Net cash flows used in investing activities | (2,160) | (4,442) | | Net cash flows from (used in) financing activities | (1,135) | 1,389 | | **Net change in cash for the period** | **(1,047)** | **(966)** | | Cash, end of period | $2,655 | $3,240 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets decreased to $212.1 million as of March 31, 2025, primarily due to a reduction in goodwill Condensed Consolidated Balance Sheets (Unaudited, in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :---: | :---: | | **ASSETS** | | | | Total current assets | $29,978 | $29,653 | | Goodwill | 120,700 | 128,100 | | **Total assets** | **$212,069** | **$221,371** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $63,486 | $62,713 | | Long-term debt | 33,000 | 32,000 | | **Total liabilities** | **108,171** | **107,046** | | **Total stockholders' equity** | **103,898** | **114,325** | [Supplemental Information and Non-GAAP Reconciliations](index=9&type=section&id=Supplemental%20Information%20and%20Non-GAAP%20Reconciliations) [Segment Performance & Key Metrics](index=11&type=section&id=Segment%20Performance%20%26%20Key%20Metrics) ClearanceJobs showed resilient revenue growth of 3%, while Dice revenue declined 18% along with lower customer and retention rates Q1 Revenue & Bookings by Segment (YoY, in thousands) | Segment | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :---: | :---: | :---: | | **ClearanceJobs** | Revenue | $13,377 | $13,005 | 3% | | | Bookings | $16,817 | $16,990 | -1% | | **Dice** | Revenue | $18,924 | $23,020 | -18% | | | Bookings | $25,308 | $31,786 | -20% | Q1 Renewal & Retention Rates by Segment (YoY) | Segment | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :---: | :---: | | **ClearanceJobs** | Renewal Rate (Revenue) | 92% | 98% | | | Retention Rate | 106% | 115% | | **Dice** | Renewal Rate (Revenue) | 70% | 82% | | | Retention Rate | 92% | 100% | Recruitment Package Customers (as of March 31) | Segment | March 31, 2025 | March 31, 2024 | % Change | | :--- | :---: | :---: | :---: | | ClearanceJobs | 1,891 | 2,032 | -7% | | Dice | 4,490 | 5,250 | -14% | [Backlog and Deferred Revenue](index=12&type=section&id=Backlog%20and%20Deferred%20Revenue) Total backlog stood at $107.8 million as of March 31, 2025, a 3% decrease year-over-year but a 3% increase quarter-over-quarter Backlog and Deferred Revenue (in thousands) | Metric | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :---: | :---: | :---: | | Deferred Revenue | $50,666 | $45,456 | $55,716 | | Contractual commitments not invoiced | 57,094 | 59,294 | 55,020 | | **Total Backlog** | **$107,760** | **$104,750** | **$110,736** | [Non-GAAP Reconciliations](index=13&type=section&id=Non-GAAP%20Reconciliations) The company reconciled GAAP to non-GAAP metrics, reporting a Non-GAAP EPS of $0.04 and an Adjusted EBITDA margin of 22% Reconciliation to Non-GAAP Earnings Per Share | | Q1 2025 | Q1 2024 | | :--- | :---: | :---: | | **Diluted loss per share (GAAP)** | **$(0.21)** | **$(0.03)** | | Impairments | 0.16 | 0.01 | | Restructuring | 0.05 | — | | Severance, professional fees and related costs | 0.02 | — | | Non-cash stock-based compensation | 0.02 | 0.05 | | Tax impacts and other | (0.02) | 0.02 | | **Non-GAAP earnings per share** | **$0.04** | **$0.05** | Free Cash Flow Reconciliation (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :---: | :---: | | Cash provided by operating activities | $2,248 | $2,087 | | Less: Total fixed asset purchases | (2,160) | (4,442) | | **Free Cash Flow** | **$88** | **$(2,355)** | Net Loss to Adjusted EBITDA Reconciliation (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :---: | :---: | | **Net loss (GAAP)** | **$(9,351)** | **$(1,512)** | | Interest expense | 660 | 946 | | Income tax expense (benefit) | (126) | 2,269 | | Depreciation | 3,984 | 4,456 | | Non-cash stock based compensation | 1,063 | 2,144 | | Impairment of goodwill | 7,400 | — | | Restructuring | 2,270 | — | | Severance, professional fees and related costs | 1,145 | — | | Other adjustments | (64) | 266 | | **Adjusted EBITDA (Non-GAAP)** | **$6,981** | **$8,569** | [Segment Adjusted EBITDA Reconciliation](index=15&type=section&id=Segment%20Adjusted%20EBITDA%20Reconciliation) ClearanceJobs' Adjusted EBITDA margin improved to 43%, while Dice's margin declined to 18% in Q1 2025 Adjusted EBITDA by Segment (YoY, in thousands) | Segment | Q1 2025 Adj. EBITDA | Q1 2025 Margin | Q1 2024 Adj. EBITDA | Q1 2024 Margin | | :--- | :---: | :---: | :---: | :---: | | ClearanceJobs | $5,705 | 43% | $5,459 | 42% | | Dice | $3,428 | 18% | $4,994 | 22% | | Corporate | $(2,152) | n.m. | $(1,884) | n.m. | | **Total** | **$6,981** | **22%** | **$8,569** | **24%** | [Other Information](index=2&type=section&id=Other%20Information) [Notes Regarding the Use of Non-GAAP Financial Measures](index=4&type=section&id=Notes%20Regarding%20the%20Use%20of%20Non-GAAP%20Financial%20Measures) The company explains its use of non-GAAP measures for assessing financial trends and acknowledges their inherent limitations - The company uses non-GAAP measures to provide useful information to management and investors regarding **financial and business trends**, and for budgeting and planning[14](index=14&type=chunk) - Key non-GAAP measures defined include: **Non-GAAP Earnings Per Share, Free Cash Flow, Adjusted EBITDA, and Adjusted EBITDA Margin**[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - The company acknowledges limitations of non-GAAP measures, noting they **do not reflect cash expenditures** for capital replacements, working capital needs, or debt service[23](index=23&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section provides a legal disclaimer on forward-looking statements and outlines key business and economic risks - The press release contains forward-looking statements concerning possible **future financial condition, results of operations, strategy, plans, and growth potential**[11](index=11&type=chunk) - A wide range of factors could cause actual results to differ materially, including **competition, cybersecurity risks, economic downturns**, and the use of artificial intelligence[12](index=12&type=chunk)