DHI Group (NYSE: DHX) Conference Call Summary Company Overview - DHI Group operates AI-powered career marketplaces focused on technology roles through its brands Dice and ClearanceJobs, enabling efficient connections between recruiters and skilled technology professionals [1][2] - The company is headquartered in Denver, Colorado, and is listed on the NYSE under the symbol DHX [2] Core Business Model - DHI Group's platforms are two-sided marketplaces that serve both clients (recruiters and hiring managers) and candidates [3] - The company has over 8 million professionals profiled, representing two-thirds of skilled technologists in the U.S. [3] - More than 90% of DHI's revenue is recurring, primarily from subscription contracts [4][14] Financial Performance - In 2024, DHI reported $142 million in revenue and $141 million in bookings, with a five-year CAGR of 6% for both [5][17] - Adjusted EBITDA was $35 million, yielding a 25% margin [5] - The company ended 2024 with net debt of $28 million, equating to less than one times leverage [5] Market Position and Competitors - ClearanceJobs is the leading platform for technology professionals with government clearance, a niche not served by competitors like LinkedIn [8][28] - Dice competes with platforms like LinkedIn, Indeed, and ZipRecruiter but focuses specifically on high-end tech talent [26][28] Industry Trends - The U.S. tech workforce has grown by approximately 3-4% annually over the past 25 years, with forecasts predicting an 18% growth over the next decade [6][10] - The demand for tech professionals is driven by the increasing reliance on technology and automation across all sectors [10][11] Challenges and Opportunities - The elevated interest rate environment has suppressed hiring demand, impacting bookings and revenue [10][18] - The company is targeting a 26% adjusted EBITDA margin for 2025, despite challenging market conditions [18] - The anticipated $1.1 trillion defense budget for fiscal year 2026 is expected to provide a significant boost to ClearanceJobs [31] Unique Value Proposition - DHI's platforms utilize a patented skills taxonomy that categorizes over 100,000 tech skills, differentiating them from generalist platforms [11][12] - The company emphasizes the cost-effectiveness of its services compared to external recruiters, with subscription costs ranging from $8,000 to $15,000 for entry-level positions [9] Future Growth Strategies - DHI Group is exploring M&A opportunities adjacent to ClearanceJobs and has recently acquired Agile ATS to enhance its offerings [24][25] - The company is focused on expanding its talent acquisition capabilities and improving client engagement through new features and services [24][25] Summary - DHI Group is well-positioned to capture growth in tech hiring, supported by a strong subscription model, a unique candidate pool, and anticipated increases in defense spending [25][31]

Summary of DHI Group Inc. Q3 Investor Summit Company Overview - DHI Group Inc. is listed on the New York Stock Exchange under the symbol DHX and is headquartered in Denver, Colorado [2] - The company operates two tech-oriented recruiting platforms: ClearanceJobs and Dice, which connect recruiters and hiring managers with tech candidates [2][3] Industry Insights - The U.S. tech workforce has grown by approximately 3% annually over the past 25 years, with a projected growth of at least 18% over the next decade, which is twice the overall employment growth rate [5][8] - The average salary for a tech worker in the U.S. was $111,000, compared to $50,000 for the average worker [6] Financial Performance - DHI reported $142 million in revenue and $141 million in bookings for the previous year, with a five-year CAGR of 6% for both metrics [4] - Adjusted EBITDA was $35 million, resulting in a 25% adjusted EBITDA margin [4] - The company ended 2024 with net debt of $28 million, equating to less than one times leverage [4] Revenue Model - Over 90% of DHI's revenue is recurring due to subscription contracts, with a one-year minimum contract and auto-renewal clauses [12] - DHI's platforms charge clients between $8,000 to $15,000 for entry-level year-long subscriptions [7] Market Position and Competitive Advantage - ClearanceJobs is the leading platform for accessing technology professionals with government clearance, a niche not served by LinkedIn [5][6] - DHI has a unique skills taxonomy that categorizes over 100,000 tech skills, which enhances candidate profiling and search capabilities [9][10] - The company has a significant total addressable market (TAM) with approximately 1,900 clients for ClearanceJobs and 4,400 clients for Dice [11][20] Recent Developments - DHI has restructured its operations to separate Dice and ClearanceJobs, aiming to maximize profitability and strategic options [15][16] - The company has reinstituted its share buyback program, allowing for the repurchase of up to $5 million of common stock through February 2026 [19] Future Outlook - Revenue guidance for 2025 is projected between $126 million and $128 million, with an expected EBITDA margin of 26% [26] - DHI is exploring new revenue lines, including an applicant tracking system (Agile ATS) and a premium candidate subscription for ClearanceJobs [28][29] Challenges and Market Conditions - The elevated interest rate environment has suppressed hiring demand, impacting bookings and revenue [8][16] - Dice's quarterly bookings have seen a decline of 16% year-over-year, reflecting challenges in the HR tech hiring environment [21] Key Differentiators - DHI differentiates itself from larger players like LinkedIn by focusing on tech skills rather than job titles, allowing for more relevant candidate engagement [32][34] - The platforms provide insights into candidate activity, such as the number of days since a candidate was last active, which is crucial for recruiters [34][35] Conclusion - DHI Group Inc. is well-positioned to capture growth in tech hiring, leveraging its unique platforms and expertise in technology recruitment [23]

Summary of DHI Group (DHX) Conference Call - August 20, 2025 Company Overview - **Company Name**: DHI Group - **Ticker Symbol**: DHX - **Headquarters**: Denver, Colorado - **Business Model**: DHI Group operates two tech-oriented recruiting platforms, ClearanceJobs and Dice, which connect recruiters with tech candidates [3][4] Industry Insights - **Market Position**: DHI Group's platforms are essential for recruiters seeking technology professionals, differentiating themselves from competitors like Indeed and ZipRecruiter through specialized search algorithms and a large database of tech professionals [4][5] - **Tech Workforce Growth**: The U.S. tech workforce has grown approximately 3% annually over the past 25 years, with a projected growth of at least 18% over the next decade, which is double the overall employment growth rate [8][11] Financial Performance - **2024 Financials**: - Revenue: $142 million - Bookings: $141 million - Adjusted EBITDA: $35 million (25% margin) - Operating Cash Flow: $21 million - Capital Expenditures: $14 million [6][7] - **Recurring Revenue**: Over 90% of revenue is recurring due to subscription contracts, with a significant portion of revenue already under contract at the start of each year [16][18] - **Debt Management**: Ended 2024 with net debt of $28 million, equating to less than one times leverage [7][22] Business Segments - **ClearanceJobs**: - Revenue: $54 million in 2024 - Client Base: 1,900 clients, with a five-year CAGR of 15% in bookings [23][24] - Adjusted EBITDA Margin: Above 40% [25] - **Dice**: - Revenue: $88 million in 2024 - Client Base: 4,400 subscription clients, with a five-year CAGR of 2% in bookings [25][26] - Adjusted EBITDA Margin: Approximately 20% [27] Market Challenges and Opportunities - **Hiring Demand**: The elevated interest rate environment has suppressed hiring demand, but the tech industry is expected to recover, with ClearanceJobs projected to achieve double-digit growth soon [11][32] - **AI Integration**: AI is seen as an opportunity, with nearly 40% of jobs on Dice requiring AI skills, up from 10% the previous year [30][42] - **Client Retention**: Dice's renewal rate has faced challenges due to client losses, but ClearanceJobs has maintained a strong retention rate [36][38] Strategic Initiatives - **Acquisition of Agile ATS**: This acquisition enhances ClearanceJobs' offerings by integrating an applicant tracking system specifically designed for hiring security-cleared individuals, valued at $2 million [46][47] - **Cost Management**: Restructuring efforts have reduced operating costs by approximately $35 million, with a target adjusted EBITDA margin of 26% for 2025 [19][20] Future Outlook - **Growth Projections**: DHI Group anticipates returning to growth by mid-2026, driven by improvements in the tech hiring market and the performance of ClearanceJobs [32][33] - **Acquisition Pipeline**: The company is actively seeking tuck-in acquisitions to expand ClearanceJobs' footprint in the recruiting space [48] Additional Insights - **Client Pricing Trends**: There is potential for increased pricing on ClearanceJobs due to a lack of viable competitors, while Dice faces more macroeconomic pricing challenges [39][41] - **Candidate Availability**: The number of candidates remains steady, with 6 to 8 million candidates actively engaging on the platforms [34] This summary encapsulates the key points discussed during the DHI Group conference call, highlighting the company's position in the tech recruiting industry, financial performance, market challenges, and strategic initiatives for future growth.

Financial Data and Key Metrics Changes - Total revenue for the second quarter was $32 million, down 11% year over year and roughly flat compared to the first quarter [22] - Adjusted EBITDA was $8.5 million with an adjusted EBITDA margin of 27%, compared to $9 million or a margin of 25% in the prior year [30] - Net loss recorded was $800,000 or $0.02 per diluted share, compared to net income of $900,000 or $0.02 per diluted share in the prior year [29] Business Line Data and Key Metrics Changes - ClearanceJobs (CJ) revenue was $13.6 million, up 1% year over year, with bookings flat year over year at $11.6 million [22][23] - Dice revenue was $18.4 million, down 3% sequentially and bookings down 16% year over year at $15.6 million [24] - CJ's adjusted EBITDA was $6.1 million with a 45% margin, while Dice's adjusted EBITDA was $4.2 million with a 23% margin [30] Market Data and Key Metrics Changes - National tech job postings are at about 70% of normal volume, averaging 208,000 per month, which is about 6% higher year over year [12][13] - The percentage of Dice jobs requiring AI skills increased from 10% at the beginning of 2024 to over 38% by June 2025 [13][55] Company Strategy and Development Direction - The company plans to integrate Agile ATS into the ClearanceJobs platform by Q4 2025, targeting government contractors [9][10] - A restructuring of the Dice sales and engineering teams is expected to save about $15 million annually, aiming to improve margins [19] - The company anticipates increased defense spending to drive CJ's bookings and revenue growth, while expecting Dice to rebound as hiring stabilizes [20][34] Management's Comments on Operating Environment and Future Outlook - Management noted that the hiring environment has been challenging but expressed optimism about future growth driven by the defense budget and technology investments [36] - The approval of a $1.1 trillion defense budget is expected to enhance confidence among clients and stimulate hiring in the cleared workforce sector [40][70] - Management highlighted that the tech hiring environment is stabilizing, with signs of improvement in staffing and recruiting segments [50] Other Important Information - The company repurchased 900,000 shares for $1.8 million during the quarter, with a remaining $2.5 million on its stock repurchase program [33] - The acquisition of Agile ATS was valued at $2 million, with expectations for it to be accretive to CJ in the future [34][60] Q&A Session Summary Question: Can you talk about the booking performance for ClearanceJobs in Q2? - Management acknowledged a choppy second quarter for renewals and new business activity due to client psychology around the budget process, but expressed confidence in future stability following the budget approval [39][40] Question: What role does Agile ATS play in the ClearanceJobs platform? - Agile ATS is seen as a natural extension to ClearanceJobs, designed specifically for cleared recruiting, and is expected to enhance customer acquisition and retention [41][44] Question: How does the company plan to stabilize the Dice business? - Management indicated that stabilization in demand is necessary and noted encouraging signs in the staffing and recruiting segment, which is crucial for Dice [47][50] Question: What percentage of job postings now require AI skills? - As of June, 36% of Dice job postings required AI skills, a significant increase from 10% at the beginning of the year [55] Question: Will the acquisition of Agile ATS impact CJ's EBITDA margins? - Management stated that while there won't be meaningful revenue from Agile ATS in the second half of the year, it is not expected to impact CJ's margins significantly [60][61]