DHI(US:DHX)2025-11-10 23:02Financial Data and Key Metrics Changes - Total revenue for the third quarter of 2025 was $32.1 million, down 9% year-over-year and roughly flat compared to the second quarter [14] - Total bookings for the quarter were $25.4 million, down 12% year-over-year [14] - Total recurring revenue decreased by 11% compared to the prior year, with bookings driving recurring revenue down 13% for the quarter [14] - The company recorded a net loss of $4.3 million, or $0.10 per diluted share, compared to a net loss of $200,000, or $0.00 per diluted share, in the prior year quarter [18] - Adjusted EBITDA for the third quarter was $10.3 million, with a margin of 32%, compared to $8.6 million and a margin of 24% in the prior year [19] Business Line Data and Key Metrics Changes - ClearanceJobs revenue was $13.9 million, up 1% year-over-year and up 2% sequentially, with bookings down 7% year-over-year [14][15] - Dice revenue was $18.2 million, down 15% year-over-year and down 1% sequentially, with bookings down 17% year-over-year [14][15] - ClearanceJobs had an average annual revenue per customer of $26,600, up 7% year-over-year [15] - Dice's average annual revenue per customer was $15,727, down 4% year-over-year [16] Market Data and Key Metrics Changes - The number of new tech job postings on Dice remained around 70% of normal levels, reflecting macroeconomic headwinds [11] - Approximately 10% of job postings on Dice required at least one AI skill at the beginning of 2024, which has now risen above 50% [8] - The proposed $1.1 trillion U.S. defense budget for fiscal year 2026 represents a 13% increase over the previous year's budget, which is expected to benefit ClearanceJobs significantly [9] Company Strategy and Development Direction - The company focuses on providing software tools for employers and recruiters to find tech talent, with over 90% of revenue coming from subscriptions [5] - The integration of Agile ATS with ClearanceJobs aims to enhance the hiring workflow for cleared professionals [10] - The company is exploring additional opportunities in the GovTech space to expand its offerings [52] Management's Comments on Operating Environment and Future Outlook - Management noted that tech hiring has stabilized despite a mixed macro backdrop, with a significant trend towards AI-related job postings driving future demand [7][8] - The company remains optimistic about future growth driven by the defense budget and increased technology investments across industries [23] - Management highlighted the importance of the upcoming defense budget bills being passed to stimulate activity in the market [41] Other Important Information - The company repurchased 741,000 shares for $2.1 million during the quarter, with a total of 2.6 million shares repurchased for $6.2 million year-to-date [22] - The company is targeting total capital expenditures in 2025 to range between $7 million and $8 million, down from $13.9 million last year [21] Q&A Session Summary Question: What is driving the margin expansion in Dice? - Management indicated that the margin expansion was due to headcount vacancies being backfilled and efficient cost allocation to capitalized development costs [29] Question: What was the $9 million write-off related to? - The write-off was related to the Dice trade name, which experienced revenue declines [32] Question: How has renewal activity versus new business activity trended since the government shutdown? - Management noted solid renewal rates among larger customers, while smaller customers faced challenges [56] Question: What percentage of job postings are related to AI? - Over 50% of job postings on the platform are related to AI projects, a significant increase from earlier in the year [49] Question: Are there any other opportunities in the GovTech space? - Management is evaluating several opportunities in the GovTech space, indicating potential for future growth [52]