DHI Group (NYSE:DHX) Conference Transcript

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]