DHI(US:DHX)2022-02-09 04:17Financial Data and Key Metrics Changes - Total revenue for Q4 2021 was $33.7 million, representing a 10% sequential increase and a 25% year-over-year growth [18] - Total bookings for the quarter were $36.2 million, up 35% year-over-year [18] - Adjusted EBITDA for Q4 was $7.1 million, with a margin of 21%, compared to $5 million and a margin of 19% in the same quarter last year [23] Business Line Data and Key Metrics Changes - Dice revenue for Q4 was $24.4 million, up 9% sequentially and 26% year-over-year, with bookings also increasing by 35% year-over-year [18][19] - ClearanceJobs revenue was $9.4 million, up 11% sequentially and 23% year-over-year, with bookings growth of 35% year-over-year [19][20] - Dice's revenue renewal rate was 91%, while ClearanceJobs had a renewal rate of 105% for the quarter [19][20] Market Data and Key Metrics Changes - The average annual tech salary reached a record level of $105,000, up 6.9% year-over-year, indicating a strong demand for tech talent [8] - The unemployment rate for technology professionals remains at an all-time low, driving the need for sophisticated recruitment tools [7] Company Strategy and Development Direction - The company plans to increase investment in sales and marketing by 20% in 2022 to capitalize on the growing market for tech professionals [16][25] - A focus on expanding the Dice Commercial Accounts team to target over 80,000 companies in the U.S. with open tech job postings [10][30] - The company aims to enhance its product offerings and customer experience, particularly for technologists, to maintain a competitive edge [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the Omicron variant did not significantly impact hiring needs for 2022, indicating a stable outlook for the business [28] - The company anticipates continued double-digit revenue growth driven by strong bookings performance and increased marketing efforts [25][16] Other Important Information - The company ended Q4 with $1.5 million in cash and total debt of $23 million, with deferred revenue at $46.1 million, up 26% year-over-year [24] - The company repurchased approximately 960,000 shares for $5.2 million during the quarter, reflecting confidence in long-term business prospects [24][25] Q&A Session Summary Question: Impact of Omicron on business - Management indicated that Omicron did not affect client sentiment or hiring needs for 2022 [28] Question: Investment focus for 2022 - The majority of investment will be directed towards expanding the Dice Commercial Accounts team [30][31] Question: Customer behavior regarding package decisions - No significant changes in customer behavior regarding pricing or expected discounts were observed [32][33] Question: Revenue trajectory and growth expectations - Management expects quarter-over-quarter growth throughout the year, maintaining a double-digit growth rate [35] Question: Pricing on renewal business - The company has an auto-renewal clause in 90% of contracts, which includes a price escalation feature [36] Question: Sales headcount and hiring pace - The company plans to add approximately 18 to 20 new quota-bearing sales representatives in 2022 [40] Question: Mix of new bookings from different sources - Approximately 60% of new bookings are from commercial accounts, with 40% from staffing and recruiting agencies [51] Question: Demand for ancillary services - There has been an increase in demand for sourcing services, indicating a strong interest in solving hiring challenges [53] Question: Engagement of new candidates on the platform - The platform saw significant engagement, with 1.5 million visits and 500,000 applications in January [55]