DHI(DHX) - 2025 Q1 - Quarterly Results

DHI Group Q1 2025 Financial Results First Quarter 2025 Financial Highlights 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] Management Commentary 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] - 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] - 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] - 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] Full-Year 2025 Guidance 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 Condensed Consolidated Statements of Operations 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 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 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 Segment Performance & Key Metrics 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 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 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 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 Notes Regarding the Use of Non-GAAP Financial Measures 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] - Key non-GAAP measures defined include: Non-GAAP Earnings Per Share, Free Cash Flow, Adjusted EBITDA, and Adjusted EBITDA Margin[15][16][17] - 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] Forward-Looking Statements 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] - 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]