DHI(US:DHX)2022-05-07 10:22Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $34.3 million, representing a 29% year-over-year increase and a 2% sequential increase [27] - Total bookings for the quarter were $50.7 million, up 32% year-over-year [27] - Adjusted EBITDA for the first quarter was $6.9 million, with a margin of 20%, compared to $5.6 million and a margin of 21% in the prior year [35] - Income from continuing operations was $1.3 million or $0.03 per diluted share, compared to $2 million or $0.04 per diluted share a year ago [33] Business Line Data and Key Metrics Changes - Dice revenue was $24.6 million, up 29% year-over-year, with bookings of $36.8 million, also up 32% year-over-year [28] - ClearanceJobs revenue was $9.7 million, up 27% year-over-year, with bookings of $13.9 million, up 31% year-over-year [30] - Dice customer count increased to 6,249, a 20% year-over-year growth [28] - ClearanceJobs customer count reached 1,928, a 10% year-over-year increase [30] Market Data and Key Metrics Changes - U.S. employers posted 1.1 million tech jobs, a 43% increase from the previous year [10] - Average tech salaries increased by 6.9% from 2020 to 2021 [10] - The total addressable market for Dice and ClearanceJobs is estimated to exceed $1 billion annually [17][22] Company Strategy and Development Direction - The company is focusing on expanding its sales team and increasing marketing spend to capture growth opportunities in the technology recruitment market [18][32] - The strategy includes targeting commercial accounts and staffing firms, with a significant addressable market identified [15][22] - The company aims to maintain adjusted EBITDA margins at or near 20% while investing in growth [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for technologists and the positive momentum in bookings, expecting revenue growth of 20% to 22% for the full year [39] - The company anticipates that the ongoing digital transformation across industries will sustain demand for tech talent, even in a potentially challenging macroeconomic environment [60] - Management noted that the defense budget increase due to geopolitical tensions could benefit ClearanceJobs [59] Other Important Information - Deferred revenue at the end of the quarter was $56.8 million, up 27% year-over-year [37] - The company repurchased approximately 1.3 million shares for $7.5 million during the quarter [38] Q&A Session Summary Question: What is the key driver behind the upward revision to the guidance? - Management indicated that strong bookings and positive momentum in the commercial accounts division are key drivers for the revised guidance [43][44] Question: How should the long-term profitability outlook be viewed? - Management believes that margins could reach the 30% range over the next three to four years, consistent with other SaaS models [46] Question: What investments have been successful in Q1? - The marketing investment aimed at brand awareness campaigns resulted in a 50% increase in traffic to the Dice site [55] Question: Has there been any incremental demand for ClearanceJobs due to the conflict in Ukraine? - Management noted that increased defense budgets during wartime typically lead to higher demand for cleared professionals [59] Question: How is the overall demand for tech talent expected to evolve? - Management expects continued demand for technologists due to the acceleration of digital strategies across businesses [60] Question: What is the mix of recurring versus non-recurring revenues? - The company maintains a consistent 90-10 mix of recurring to non-recurring revenues across both business lines [51]