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]