DHI(US:DHX)2021-05-09 12:27Financial Data and Key Metrics Changes - Total revenues for Q1 2021 were reported at $32.6 million, down 2% sequentially and down 11% year-over-year [29] - Dice revenue was $19.1 million, down 2% sequentially and down 15% year-over-year [29] - Net income for Q1 2021 was $2.7 million, or $0.05 per diluted share, compared to a net loss of $6.6 million, or $0.13 per diluted share a year ago [36] - Adjusted EBITDA for Q1 2021 was $7.3 million with a margin of 22%, compared to a margin of 21% in the previous quarter and the same quarter last year [38] Business Line Data and Key Metrics Changes - Dice's revenue renewal rate improved to 82%, up from 75% in the previous quarter and higher than Q1 2020 [7][31] - ClearanceJobs first quarter revenue was $7.6 million, flat with the previous quarter and up 11% year-over-year [33] - Financial Careers revenue for Q1 was $6 million, down 4% sequentially and down 22% year-over-year [33] Market Data and Key Metrics Changes - U.S. tech job postings surged 28% from Q4 2020 to Q1 2021, with over 307,000 open IT positions in March, a 12-month high [10] - The unemployment rate for IT occupations remained at 2.4%, compared to 6.6% nationally [10] Company Strategy and Development Direction - The company plans to capitalize on the expected growth in tech jobs over the next five years by increasing sales and marketing efforts [8][21] - A new client branding campaign for Dice was initiated, focusing on the tagline "Where Tech Connects" [20] - The company aims to separate the Financial Careers business to allow for more focused growth in the Dice and ClearanceJobs brands [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to total revenue growth in the second half of 2021, driven by strong bookings performance [28][43] - The economic expansion and strong performance in bookings are expected to lead to sustainable revenue growth starting in the second half of the year [44] Other Important Information - The company ended Q1 2021 with total debt of $20 million and cash of $7.3 million, resulting in net debt of $12.7 million [39] - Deferred revenue at the end of the quarter was $52.8 million, up 21% compared to the previous year [39] Q&A Session Summary Question: What is the go-forward margin profile for the business? - Management expects to maintain roughly 20% adjusted EBITDA margins throughout the year, even with the divestiture of Financial Careers [47][48] Question: Have bookings accelerated sequentially into Q2? - Yes, bookings have accelerated, with increased confidence in the economy due to vaccine rollouts [49] Question: How is the adoption of new features resonating with customers? - Adoption rates for new features are expected to trend positively with training and marketing efforts, although initial adoption is low [50][51] Question: Are job openings increasing from existing clients or new clients? - There is a healthy mix of increased job postings from both existing and new clients [54] Question: Has the sales cycle for commercial accounts eased? - Yes, there has been an increase in interest from enterprises ready to hire as the economy recovers [56] Question: What is the potential for growth in the staffing and recruiting market? - The staffing industry is expected to see significant revenue growth, exceeding 2019 figures [59] Question: Will unrealized gains on equity securities be marked to market going forward? - Yes, the company will mark to market based on trading value and may liquidate if comfortable with the stock price [60]