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]

NYSE: DHX Q2 2025 Investor Presentation August 6, 2025 Forward looking statements This presentation and oral statements made from time to time by our representatives contain forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You should not place undue reliance on those statements because they are subject to numerous uncertainties and ...

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]

Financial Data and Key Metrics Changes - In 2024, the company experienced a 7% decline in revenue, with total revenue reported at $34,800,000 for the fourth quarter, down 7% year over year and down 1% sequentially [6][26] - Adjusted EBITDA for the fourth quarter decreased 9% to $9,200,000, with a margin of 26%, compared to $10,100,000 or a margin of 27% in the prior year [31] - Free cash flow for the current year was $7,100,000, a $6,000,000 increase over the prior year [33] Business Line Data and Key Metrics Changes - ClearanceJobs revenue increased by 7% year over year to $13,800,000, while Dice revenue decreased by 14% year over year to $21,000,000 [13][26] - Total recurring revenue declined by 5% year over year, with ClearanceJobs bookings flat year over year at $14,200,000 and Dice bookings down 14% year over year [14][27] - Revenue renewal rates for ClearanceJobs and Dice were 93% and 77% respectively, with retention rates at 111% for ClearanceJobs and 97% for Dice [16][29] Market Data and Key Metrics Changes - New tech job postings were approximately 70% of normal, but showed a 12% increase in the second half of 2024 compared to the first half, with December alone seeing a 16% year over year increase [10][11] - The tech unemployment rate remained low at approximately 2% in December, indicating a tight labor market for tech talent [11] - The company anticipates a 5% growth in tech staffing hiring revenue in 2025, following a 7% decline in 2024 [11][12] Company Strategy and Development Direction - The company has restructured its operations into two distinct brands, Dice and ClearanceJobs, to enhance profitability and align strategies with unique market dynamics [8][9] - The company is focusing on recession-resistant sectors such as consulting, aerospace defense, healthcare, financial services, and education [15] - Plans for 2025 include launching new products like CJ Verify and a paid candidate subscription service for ClearanceJobs, as well as a total reimagination of the Dice Web Store [18][20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a gradual recovery in tech hiring, with encouraging signs of increased demand and improved revenue renewal rates [10][21] - The company expects revenue for 2025 to be between $131,000,000 and $135,000,000, with a targeted adjusted EBITDA margin of 24% [22][37] - Management remains committed to delivering strong profits for shareholders and has approved a new $5,000,000 stock buyback program [22][36] Other Important Information - The company has reduced total operating costs by over $10,000,000, with a focus on operational efficiency [7][30] - The company recorded a net income of $1,000,000 or $0.02 per diluted share in the fourth quarter, down from $2,100,000 or $0.05 per diluted share in the prior year [31] - The company has implemented a Section 382 rights plan to protect its capital loss carryforward, which exceeds $100,000,000 [30] Q&A Session Summary Question: Business prospects for Dice in 2025 - Management indicated that staffing is expected to recover before commercial accounts, with positive signs in renewal activity and new business [41] Question: Concerns for ClearanceJobs amidst efficiency initiatives - Management noted no current impact on ClearanceJobs from potential defense budget cuts, with Congress committed to the existing defense budget [43] Question: Cash usage and debt repayment - Management confirmed that approximately $6,000,000 of cash was used to pay down debt, affecting cash on hand [49] Question: Segment reporting for operating income or adjusted EBITDA - Management plans to provide more detailed segment reporting in the first half of the year [54] Question: Expectations for bookings growth in 2025 - Management expects growth for ClearanceJobs but remains conservative regarding Dice, anticipating no significant improvement [62] Question: Exposure to non-cleared agencies - Management clarified that the company primarily serves defense-related agencies, with limited exposure to non-cleared agencies [67] Question: Marketing spend expectations - Management indicated that marketing spend is seasonal, with adjustments made during summer and holiday periods [74]