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Yahoo
06-08-2025
- Business
- Yahoo
DHI Group, Inc. Acquires AgileATS to Expand ClearanceJobs' Market Leadership in GovTech Recruiting
Strategic acquisition adds a leading applicant tracking system to ClearanceJobs, unlocking new growth opportunities in the high-demand GovTech recruiting market CENTENNIAL, Colo., August 06, 2025--(BUSINESS WIRE)--DHI Group, Inc. (NYSE: DHX) today announced it has acquired AgileATS, a leading applicant tracking system (ATS) purpose-built for government contractors and employers hiring security-cleared professionals. This acquisition significantly advances DHI's ClearanceJobs brand strategy, enabling the delivery of an end-to-end recruitment solution within the high-demand cleared talent market. Many small and mid-sized employers in the GovTech space lack dedicated ATS tools, creating friction in the hiring process. The integration of AgileATS into the ClearanceJobs platform addresses this gap by delivering AI-powered features, including automated job postings, streamlined applicant workflows, enhanced sourcing capabilities, and actionable analytics. "Acquiring AgileATS meaningfully expands our addressable market within the GovTech sector and strengthens ClearanceJobs' position as the go-to platform for security-cleared hiring," said Art Zeile, CEO of DHI Group. "This strategic move advances our long-term growth strategy by integrating purpose-built technology that delivers scalable, AI-powered solutions to government contractors facing complex and growing hiring demands." "Employers in the cleared space need tools to meet the increasing demands of federal hiring," said Alex Schildt, President of ClearanceJobs. "By integrating AgileATS, we expand our mission to streamline and simplify cleared hiring while providing our clients with a measurable competitive advantage." Transaction Details: DHI Group, Inc. acquired AgileATS for an estimated purchase price of $2.0 million, which includes an up-front payment of $1.5 million in cash and another of $0.5 million that may be earned within two years of the purchase date upon satisfaction of certain performance criteria. About DHI Group, Inc. DHI Group, Inc. (NYSE: DHX) is a provider of AI-powered career marketplaces that focus on technology roles. DHI's two brands, ClearanceJobs and Dice, enable recruiters and hiring managers to efficiently search for and connect with highly skilled technology professionals based on the skills requested. The Company's patented algorithm manages over 100,000 unique technology skills. Additionally, our marketplaces allow tech professionals to find their ideal next career opportunity, with relevant advice and personalized insights. Learn more at Forward-Looking Statements This press release and oral statements made from time to time by our representatives contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include, without limitation, information concerning our possible or assumed future financial condition, liquidity and results of operations, including expectations (financial or otherwise), our strategy, plans, objectives, and intentions, growth potential, and statements regarding our financial outlook. These statements often include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate," "target" or similar expressions. These statements are based on assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, our ability to execute our tech-focused strategy, a write-off of all or a part of our goodwill and intangible assets, backlog not accurately representing future revenue, competition from existing and future competitors in the highly competitive markets in which we operate, failure to adapt our business model to keep pace with rapid changes in the recruiting and career services business and the development of new products and services, failure to maintain and develop our reputation and brand recognition, failure to increase or maintain the number of customers who purchase recruitment packages, failure to attract qualified professionals to our websites or grow the number of qualified professionals who use our websites, inability to successfully integrate future acquisitions or identify and consummate future acquisitions, misappropriation or misuse of our intellectual property, claims against us for intellectual property infringement or failure to enforce our ownership of intellectual property, failure to attract and retain users who create and post original content on our web properties, taxation risks in various jurisdictions and the potential for unfavorable decisions related to tax assessments, taxation risks impacting our liability or past sales, and ability to make future sales, downturns in our customers' businesses, our indebtedness and our ability to borrow funds under our revolving credit facility or refinance our indebtedness, restrictions on our current and future operations under such indebtedness, development and use of artificial intelligence, failure to timely and efficiently scale, adapt and maintain our technology and infrastructure, capacity constraints, system failures or breaches of network security, usefulness of our candidate profiles to our customers, decreases in our user engagement, changes in search engines' methodologies, failure to halt operations of third-party websites aggregating our data, reliance on third-party hosting facilities, our compliance with laws and regulations, U.S. and foreign government regulation of the Internet and taxation, failure to attract or retain key executives and personnel, our ability to navigate the cyclicality or downturns of the U.S. and worldwide economies, litigation related to infringement or other claims regarding our services or content, our ability to defend ownership of our intellectual property, global climate change, compliance with the continued listing standards of the New York Stock Exchange, volatility in our stock price, differences between estimates of financial projections and future results, failure to maintain controls over financial reporting, results of operations fluctuating on a quarterly and annual basis, our Section 382 Rights Plan may have an anti-takeover effect, and anti-takeover provisions in our governing documents may make changes to management difficult, and disruption resulting from unsolicited offers to purchase the company. These factors and others are discussed in more detail in the Company's filings with the Securities and Exchange Commission, all of which are available on the Investors page of our website at including the Company's most recently filed reports on Form 10-K and Form 10-Q and subsequent filings under the headings "Risk Factors," "Forward-Looking Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." You should keep in mind that any forward-looking statement made by the Company or its representatives herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect us. We have no obligation to update any forward-looking statements after the date hereof, except as required by applicable federal securities laws. View source version on Contacts Investor Contact Todd Kehrli or Jim ByersPondelWilkinson, Inc.212-448-4181ir@ Media Contact Rachel CeccarelliVP Engagement212-448-8288media@
Business Wire
06-08-2025
- Business
- Business Wire
DHI Group Reports Second Quarter Results and Advances Strategic Expansion with AgileATS Acquisition
CENTENNIAL, Colo.--(BUSINESS WIRE)--Today, DHI Group, Inc. (NYSE: DHX) ('DHI' or the 'Company') announced its financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights (1) Total revenue was $32.0 million, down 11% year over year. ClearanceJobs revenue was $13.6 million, up 1% year over year. Dice revenue was $18.4 million, down 18% year over year. Total bookings were $27.1 million, down 10% year over year. ClearanceJobs bookings were $11.6 million, flat year over year. Dice bookings were $15.6 million, down 16% year over year. Net loss was $0.8 million, or $0.02 per diluted share, a net income margin of negative 3%, compared to net income of $0.9 million, or $0.02 per diluted share, a net income margin of 3%, in the year-ago quarter. The net loss was a result of a $4.2 million restructuring charge during the quarter, which will drive future annualized cost savings of between $14.0 and $16.0 million. Non-GAAP earnings per share was $0.07 per diluted share, compared to $0.06 per diluted share in the prior year quarter. Adjusted EBITDA was $8.5 million and Adjusted EBITDA Margin was 27% compared to $9.0 million, and a margin of 25% in the year-ago quarter. ClearanceJobs Adjusted EBITDA was $6.1 million with a 45% Adjusted EBITDA Margin, compared to $6.0 million, and a margin of 44% in the prior year quarter. Dice Adjusted EBITDA was $4.2 million with a 23% Adjusted EBITDA Margin, compared to $4.8 million, and a margin of 22% in the prior year quarter. Cash flow from operations was $6.9 million, compared to $9.1 million in the year-ago quarter while capitalized development costs declined $1.3 million, or 41%, year over year to generate free cash flow of $4.8 million in the current year quarter, compared to $5.6 million in the prior year period. Cash was $2.8 million at quarter end compared to $3.0 million in the year ago quarter. Total debt at the end of the quarter was $30.0 million on our $100 million revolver, down from $35.0 million in the year-ago quarter. Commenting on the results, Art Zeile, President and CEO of DHI Group, said: "DHI Group continues to play an essential role in solving one of the most pressing challenges in today's economy—connecting employers with the right tech talent quickly and efficiently. Our purpose-built platforms, ClearanceJobs and Dice, offer access to over 9 million tech professionals, driven by AI-powered tools and a proprietary skills-matching algorithm. This quarter, ClearanceJobs once again demonstrated its strategic importance and strong profitability, even as we navigated headwinds in the broader tech hiring environment. The acquisition of AgileATS marks a key milestone in expanding our GovTech footprint, enabling us to deliver even greater value to our customers. With defense spending on the rise and AI adoption accelerating, we are confident that DHI is well-positioned for long-term growth and continued value creation for our shareholders." Commenting on 2025 full-year guidance, Greg Schippers, CFO of DHI Group, commented: "We remain confident in the long term growth prospects of our two tech-focused brands, and specifically ClearanceJobs in the near term, as a result of increased global defense spending and strong customer demand for cleared tech professionals. With that said, we do not anticipate DHI total bookings growth to resume until the broader tech hiring environment stabilizes, and as a result we are reducing our full-year revenue guidance to $126 to $128 million, with third-quarter revenue expected to be in the range of $31 to $32 million. With the recently announced restructuring, we are raising our full-year Adjusted EBITDA margin guidance to 26%, reflecting our continued cost management and operational efficiency." Conference Call Information Art Zeile, President and Chief Executive Officer, and Greg Schippers, Chief Financial Officer, will host a conference call today, August 6, 2025, at 5:00 p.m. Eastern Time to discuss the Company's financial results and recent developments. The call can be accessed by dialing 844-890-1790 (in the U.S.) or 412-380-7407 (outside the U.S.). Please ask to be placed into the DHI Group, Inc. call. A live webcast of the call will simultaneously be available through the Investor Relations section of the Company's website, and will be available for replay after the call ends. About DHI Group, Inc. DHI Group, Inc (NYSE: DHX) is a provider of AI-powered career marketplaces that focus on technology roles. DHI's two brands, ClearanceJobs and Dice, enable recruiters and hiring managers to efficiently search for and connect with highly skilled technology professionals based on the skills requested. The Company's patented algorithm manages over 100,000 unique technology skills. Additionally, our marketplaces allow tech professionals to find their ideal next career opportunity, with relevant advice and personalized insights. Learn more at Forward-Looking Statements This press release and oral statements made from time to time by our representatives contain forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include, without limitation, information concerning our possible or assumed future financial condition, liquidity and results of operations, including expectations (financial or otherwise), our strategy, plans, objectives, and intentions, growth potential, and statements regarding our financial outlook. These statements often include words such as 'may,' 'will,' 'should,' 'believe,' 'expect,' 'anticipate,' 'intend,' 'plan,' 'estimate,' "target" or similar expressions. These statements are based on assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, our ability to execute our tech-focused strategy, a write-off of all or a part of our goodwill and intangible assets, backlog not accurately representing future revenue, competition from existing and future competitors in the highly competitive markets in which we operate, failure to adapt our business model to keep pace with rapid changes in the recruiting and career services business and the development of new products and services, failure to maintain and develop our reputation and brand recognition, failure to increase or maintain the number of customers who purchase recruitment packages, failure to attract qualified professionals to our websites or grow the number of qualified professionals who use our websites, inability to successfully integrate future acquisitions or identify and consummate future acquisitions, misappropriation or misuse of our intellectual property, claims against us for intellectual property infringement or failure to enforce our ownership of intellectual property, failure to attract and retain users who create and post original content on our web properties, taxation risks in various jurisdictions and the potential for unfavorable decisions related to tax assessments, taxation risks impacting our liability or past sales, and ability to make future sales, downturns in our customers' businesses, our indebtedness and our ability to borrow funds under our revolving credit facility or refinance our indebtedness, restrictions on our current and future operations under such indebtedness, development and use of artificial intelligence, failure to timely and efficiently scale, adapt and maintain our technology and infrastructure, capacity constraints, system failures or breaches of network security, usefulness of our candidate profiles to our customers, decreases in our user engagement, changes in search engines' methodologies, failure to halt operations of third-party websites aggregating our data, reliance on third-party hosting facilities, our compliance with laws and regulations, U.S. and foreign government regulation of the Internet and taxation, failure to attract or retain key executives and personnel, our ability to navigate the cyclicality or downturns of the U.S. and worldwide economies, litigation related to infringement or other claims regarding our services or content, our ability to defend ownership of our intellectual property, global climate change, compliance with the continued listing standards of the New York Stock Exchange, volatility in our stock price, differences between estimates of financial projections and future results, failure to maintain controls over financial reporting, results of operations fluctuating on a quarterly and annual basis, our Section 382 Rights Plan may have an anti- takeover effect, and anti-takeover provisions in our governing documents may make changes to management difficult, and disruption resulting from unsolicited offers to purchase the company. These factors and others are discussed in more detail in the Company's filings with the Securities and Exchange Commission, all of which are available on the Investors page of our website at including the Company's most recently filed reports on Form 10-K and Form 10-Q and subsequent filings under the headings 'Risk Factors,' 'Forward-Looking Statements' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations.' You should keep in mind that any forward- looking statement made by the Company or its representatives herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect us. We have no obligation to update any forward-looking statements after the date hereof, except as required by applicable federal securities laws. Notes Regarding the Use of Non-GAAP Financial Measures The Company has provided certain non-GAAP financial information as additional information for its operating results. These measures are not in accordance with, or alternatives to, measures in accordance with generally accepted accounting principles in the United States ('GAAP') and may be different from similarly titled non-GAAP measures reported by other companies. The Company believes that its presentation of non-GAAP measures, such as Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and non-GAAP Earnings Per Share provides useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. In addition, the Company's management uses these measures for reviewing the financial results of the Company and for budgeting and planning purposes. Non-GAAP results exclude the impact of items that management believes affect the comparability or underlying business trends in our condensed consolidated financial statements in the periods presented. The non-GAAP measures apply to consolidated results or other measures as shown within this document. The Company has provided required reconciliations to the most comparable GAAP measures elsewhere in the document. Non-GAAP Earnings Per Share Non-GAAP Earnings Per Share is a non-GAAP performance measure that management believes is useful to investors and management in understanding our ongoing operations and in the analysis of operating trends. Non-GAAP Earnings Per Share is computed as diluted earnings per share plus or minus the impacts of certain non-cash and other items, including non-cash stock-based compensation, impairments, costs related to reorganizing the Company, including severance and related costs, gains or losses on investments, restructuring charges, and discrete tax items. Non-GAAP Earnings Per Share is not a measurement of our financial performance under GAAP and should not be considered as an alternative to diluted earnings per share, net income, or any other performance measures derived in accordance with GAAP as a measure of our profitability. Free Cash Flow We define free cash flow as net cash provided by operating activities minus fixed asset purchases. We believe free cash flow is an important non-GAAP measure for investors as it provides useful cash flow information regarding our ability to service, incur or pay down indebtedness or repurchase our common stock. Management uses free cash flow as a measure to reflect cash available to service our debt as well as to fund our expenditures. A limitation of using free cash flow versus the GAAP measure of net cash provided by operating activities is that free cash flow does not represent the total increase or decrease in the cash balance from operations for the period since it includes cash used for fixed asset purchases during the period. Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures used by management to measure operating performance. Management uses Adjusted EBITDA and Adjusted EBITDA Margin as performance measures for internal monitoring and planning, including preparation of annual budgets, analyzing investment decisions and evaluating profitability and performance comparisons between us and our competitors. The Company also uses these measures to calculate amounts of performance-based compensation under the senior management incentive bonus program. Adjusted EBITDA represents net income plus (to the extent deducted in calculating such net income) interest expense, income tax expense, depreciation and amortization, and items such as non-cash stock-based compensation, certain write-offs in connection with indebtedness, impairment charges with respect to long-lived assets, expenses incurred in connection with an equity offering or any other offering of securities by the Company, extraordinary or non-recurring non-cash expenses or losses, losses from equity method investments, transaction costs in connection with the credit agreement, deferred revenue written off in connection with acquisition purchase accounting adjustments, write-off of non-cash stock-based compensation expense, severance and retention costs related to dispositions and reorganizations of the Company, impairment of investment and goodwill, restructuring charges and losses related to legal claims and fees that are unusual in nature or infrequent, minus (to the extent included in calculating such net income) non-cash income or gains, including income from equity method investments, interest income, business interruption insurance proceeds, and gains related to legal claims that are unusual in nature or infrequent. Adjusted EBITDA Margin is computed as Adjusted EBITDA divided by revenue. We also consider Adjusted EBITDA and Adjusted EBITDA Margin, as defined above, to be important indicators to investors because they provide information related to our ability to provide cash flows to meet future debt service, capital expenditures, working capital requirements, and to fund future growth. We present Adjusted EBITDA and Adjusted EBITDA Margin as supplemental performance measures because we believe that these measures provide our board of directors, management and investors with additional information to measure our performance, provide comparisons from period to period by excluding potential differences caused by variations in capital structures (affecting interest expense) and tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses), and to estimate our value. We understand that although Adjusted EBITDA and Adjusted EBITDA Margin are frequently used by securities analysts, lenders and others in their evaluation of companies, Adjusted EBITDA and Adjusted EBITDA Margin have limitations as analytical tools, and you should not consider them in isolation, or as a substitute for analysis of our liquidity or results as reported under GAAP. Some limitations are: Adjusted EBITDA and Adjusted EBITDA Margin do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; Adjusted EBITDA and Adjusted EBITDA Margin do not reflect changes in, or cash requirements for, our working capital needs; Adjusted EBITDA and Adjusted EBITDA Margin do not reflect interest expense, or the cash requirements necessary to service interest or principal payments on our debt; Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and Adjusted EBITDA and Adjusted EBITDA Margin do not reflect any cash requirements for such replacements; and Other companies in our industry may calculate Adjusted EBITDA and Adjusted EBITDA Margin differently than we do, limiting their usefulness as comparative measures. To compensate for these limitations, management evaluates our liquidity by considering the economic effect of excluded expense items independently, as well as in connection with its analysis of cash flows from operations and through the use of other financial measures, such as capital expenditure budget variances, investment spending levels and return on capital analysis. Adjusted EBITDA and Adjusted EBITDA Margin are not measurements of our financial performance under GAAP and should not be considered as an alternative to revenue, operating income, net income, net income margin, cash provided by operating activities, or any other performance measures derived in accordance with GAAP as a measure of our profitability or liquidity. DHI GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) For the three months ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cash flows from (used in) operating activities: Net income (loss) $ (841 ) $ 943 $ (10,592 ) $ (569 ) Adjustments to reconcile net income (loss) to net cash flows from (used in) operating activities: Depreciation 3,761 4,586 7,745 9,042 Deferred income taxes (184 ) (930 ) (398 ) 50 Amortization of deferred financing costs 36 36 72 72 Stock-based compensation 1,536 2,160 2,627 4,304 Loss (income) from equity method investment 37 (168 ) (27 ) (302 ) Impairment of investment — — — 400 Impairment of goodwill — — 7,800 — Change in accrual for unrecognized tax benefits (364 ) 32 (332 ) 113 Changes in operating assets and liabilities: Accounts receivable 5,686 9,490 4,387 (45 ) Prepaid expenses and other assets 604 (640 ) 868 581 Capitalized contract costs 328 219 (25 ) (714 ) Accounts payable and accrued expenses 1,929 (2,216 ) (2,413 ) (4,248 ) Income taxes receivable/payable (1,718 ) (1,424 ) (1,726 ) (139 ) Deferred revenue (3,808 ) (3,447 ) 1,402 2,297 Other, net (136 ) 422 (274 ) 308 Net cash flows from operating activities 6,866 9,063 9,114 11,150 Cash flows used in investing activities: Purchases of fixed assets (2,025 ) (3,471 ) (4,185 ) (7,913 ) Net cash flows used in investing activities (2,025 ) (3,471 ) (4,185 ) (7,913 ) Cash flows from (used in) financing activities: Payments on long-term debt (3,000 ) (7,000 ) (8,000 ) (16,000 ) Proceeds from long-term debt — 1,000 6,000 13,000 Payments under stock repurchase plan (1,769 ) — (2,435 ) — Purchase of treasury stock related to vested restricted and performance stock units (26 ) (22 ) (1,495 ) (1,633 ) Proceeds from issuance of common stock through ESPP 81 145 81 145 Net cash flows used in financing activities (4,714 ) (5,877 ) (5,849 ) (4,488 ) Net change in cash for the period 127 (285 ) (920 ) (1,251 ) Cash, beginning of period 2,655 3,240 3,702 4,206 Cash, end of period $ 2,782 $ 2,955 $ 2,782 $ 2,955 Expand DHI GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands) ASSETS June 30, 2025 December 31, 2024 Current assets Cash $ 2,782 $ 3,702 Accounts receivable, net 17,733 22,120 Income taxes receivable 1,963 238 Prepaid and other current assets 3,277 3,593 Total current assets 25,755 29,653 Fixed assets, net 16,739 20,390 Capitalized contract costs 7,490 7,465 Operating lease right-of-use assets 6,029 6,518 Investments 1,838 1,827 Acquired intangible assets 23,800 23,800 Goodwill 120,300 128,100 Other assets 2,993 3,618 Total assets $ 204,944 $ 221,371 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 13,649 $ 16,154 Deferred revenue 46,482 44,934 Operating lease liabilities 1,703 1,625 Total current liabilities 61,834 62,713 Deferred revenue 376 522 Operating lease liabilities 8,199 8,995 Long-term debt 30,000 32,000 Deferred income taxes 971 1,369 Accrual for unrecognized tax benefits 728 1,060 Other long-term liabilities 340 387 Total liabilities 102,448 107,046 Total stockholders' equity 102,496 114,325 Total liabilities and stockholders' equity $ 204,944 $ 221,371 Expand Supplemental Information and Non-GAAP Reconciliations On the pages that follow, we have provided certain supplemental information that we believe will assist the reader in assessing our business operations and performance, including certain non-GAAP financial information and required reconciliations to the most directly comparable GAAP measure. A statement of operations and statement of cash flows for the three and six month periods ended June 30, 2025 and 2024 and balance sheets as of June 30, 2025 and December 31, 2024 are provided elsewhere in this press release. DHI GROUP, INC. NON-GAAP & SUPPLEMENTAL DATA (Unaudited) (in thousands, except per share and customer data) Revenue Q2 2025 Q2 2024 $ Change % Change ClearanceJobs $ 13,626 $ 13,528 $ 98 1 % Dice 18,401 22,305 (3,904 ) (18 )% Total Revenue 1 $ 32,027 $ 35,833 $ (3,806 ) (11 )% Net income (loss) 2 $ (841 ) $ 943 $ (1,784 ) (189 )% Net income (loss) margin 3 (3 )% 3 % n.m. n.m. Diluted earnings (loss) per share 2 $ (0.02 ) $ 0.02 $ (0.04 ) — % Non-GAAP earnings per share 5 $ 0.07 $ 0.06 $ 0.01 17 % Adjusted EBITDA 5 $ 8,494 $ 8,972 $ (478 ) (5 )% Adjusted EBITDA margin 3 4 27 % 25 % n.m. n.m. Revenue YTD 2025 YTD 2024 $ Change % Change ClearanceJobs $ 27,003 $ 26,533 $ 470 2 % Dice 37,325 45,325 (8,000 ) (18 )% Total Revenue 1 $ 64,328 $ 71,858 $ (7,530 ) (10 )% Net income (loss) 4 $ (10,592 ) $ (569 ) $ (10,023 ) n.m. Net income (loss) margin 3 (16 )% (1 )% n.m. n.m. Diluted earnings (loss) per share 4 $ (0.23 ) $ (0.01 ) $ — n.m. Non-GAAP earnings per share 5 $ 0.11 $ 0.12 $ — (8 )% Adjusted EBITDA 5 $ 15,475 $ 17,541 $ (2,066 ) (12 )% Adjusted EBITDA margin 3 4 24 % 24 % n.m. n.m. (1) We had previously disclosed that career events were recorded within Dice. Career events have been reclassified between ClearanceJobs and Dice based on the nature of the event for all periods presented. (2) For the three months ended June 30, 2025, net loss and diluted loss per share includes the net negative impact of non-cash stock-based compensation, severance, professional fees and related costs, and restructuring of $6.0 million ($4.6 million net of tax), partially offset by discrete tax items of $0.3 million, resulting in a net negative impact of $4.3 million, or $0.09 per diluted share. For the three months ended June 30, 2024, net income and diluted earnings per share includes the negative impact of non-cash stock-based compensation of $2.2 million ($1.6 million net of tax), or $0.04 per diluted share. (3) Net loss margin and Adjusted EBITDA Margin are calculated by dividing the respective measure by that period's revenue. (4) For the six months ended June 30, 2025, net loss and diluted loss per share includes the net negative impact of non-cash stock-based compensation, impairment, severance, professional fees and related costs, and restructuring of $18.3 million ($15.6 million net of tax) and discrete tax items of $0.2 million, resulting in a net negative impact of $15.8 million, or $0.34 per diluted share. For the six months ended June 30, 2024, net loss and diluted loss per share includes the net negative impact of non-cash stock-based compensation and impairment of $4.7 million ($3.6 million net of tax) and discrete tax items of $2.2 million, resulting in a net negative impact of $5.8 million, or $0.13 per diluted share. (5) See "Notes Regarding the Use of Non-GAAP Financial Measures" elsewhere in this press release. Expand Bookings 1 Q2 2025 Q2 2024 $ Change % Change ClearanceJobs $ 11,569 $ 11,521 $ 48 — % Dice 15,551 18,466 (2,915 ) (16 )% Total Bookings 2 $ 27,120 $ 29,987 $ (2,867 ) (10 )% YTD 2025 YTD 2024 $ Change % Change ClearanceJobs $ 28,386 $ 28,511 $ (125 ) — % Dice 40,859 50,252 (9,393 ) (19 )% Total Bookings 2 $ 69,245 $ 78,763 $ (9,518 ) (12 )% (1) Bookings represent the value of all contractually committed services in which the contract start date is during the period and will be recognized as revenue within 12 months of the contract start date. For contracts that extend beyond 12 months, the value of those contracts beyond 12 months is recognized as bookings on each annual anniversary of each contract start date valued as the amount of revenue that will be recognized within 12 months of the respective anniversary date. (2) We had previously disclosed that career events were recorded within Dice. Career events have been reclassified between ClearanceJobs and Dice based on the nature of the event for all periods presented. Expand Average Annual Revenue per Recruitment Package Customer 1 Q2 2025 Q2 2024 $ Change % Change ClearanceJobs $ 26,026 $ 24,275 $ 1,751 7 % Dice $ 15,434 $ 16,294 $ (860 ) (5 )% YTD 2025 YTD 2024 $ Change % Change ClearanceJobs $ 25,916 $ 23,662 $ 2,254 10 % Dice $ 15,909 $ 16,146 $ (237 ) (1 )% (1) Calculated by dividing recruitment package customer revenue by the daily average count of recruitment package customers during each month, adjusted to reflect a 30-day month. The simple average of each month is used to derive the amount for each period and then annualized to reflect 12 months. Expand Deferred Revenue and Backlog 1 June 30, 2025 December 31, 2024 $ Change % Change June 30, 2024 $ Change % Change Deferred Revenue $ 46,858 $ 45,456 $ 1,402 3 % $ 52,268 $ (5,410 ) (10 )% Contractual commitments not invoiced 54,316 59,294 (4,978 ) (8 )% 51,431 2,885 6 % Backlog $ 101,174 $ 104,750 $ (3,576 ) (3 )% $ 103,699 $ (2,525 ) (2 )% (1) Backlog consists of deferred revenue plus customer contractual commitments not invoiced representing the value of future services to be rendered under committed contracts. Expand Non-GAAP Earnings Per Share Q2 2025 Q2 2024 YTD 2025 YTD 2024 Diluted earnings (loss) per share $ (0.02 ) $ 0.02 $ (0.23 ) $ (0.01 ) Non-cash stock-based compensation (1) $ 0.03 0.05 0.06 0.10 Non-cash stock-based compensation, tax impact (2) (0.01 ) (0.01 ) (0.01 ) (0.02 ) Impairments (1) — — 0.17 0.01 Severance, professional fees and related costs (1) 0.01 — 0.03 — Severance, professional fees and related costs, tax impact (2) — — (0.01 ) — Restructuring (1) 0.09 — 0.14 — Restructuring, tax impact (2) (0.02 ) — (0.04 ) — Discrete tax items (3) (0.01 ) — — 0.05 Other (4) — — — (0.01 ) Non-GAAP earnings per share $ 0.07 $ 0.06 $ 0.11 $ 0.12 Weighted average shares outstanding used in computing diluted earnings (loss) per share 45,354 45,037 45,429 44,386 (1) Non-GAAP adjustment is presented on a gross basis, which excludes the impact of income taxes. (2) The Company utilized a federal rate plus a net state rate that excluded the impact of share-based compensation awards and other discrete items to calculate its non-GAAP blended statutory income tax rate of 25% for all periods presented. The non-GAAP rate has been applied to compute the tax impact of non-GAAP adjustments. (3) Discrete tax items resulted from the tax benefit of the conclusion of a federal tax examination during the three months ended June 30, 2025, and from the tax impacts of share-based compensation awards and state taxes related to research and development expenditures during the six months ended June 30, 2024. (4) Adjusts, as applicable, for the share impact of common stock equivalents, where dilutive, and for the impacts of rounding. Expand Adjusted EBITDA Reconciliations Reconciliation of Net Income (Loss) to Adjusted EBITDA: Net income (loss) $ (841 ) $ 943 $ (10,592 ) $ (569 ) Interest expense 619 845 1,279 1,791 Income tax expense (benefit) (1,080 ) 383 (1,206 ) 2,652 Depreciation 3,761 4,586 7,745 9,042 Non-cash stock based compensation 1,536 2,160 2,599 4,304 Income from equity method investment 37 (168 ) (27 ) (302 ) Impairment of investment — — — 400 Impairment of goodwill — — 7,800 — Severance, professional fees and related costs 246 223 1,391 223 Restructuring 4,216 — 6,486 — Adjusted EBITDA $ 8,494 $ 8,972 $ 15,475 $ 17,541 Reconciliation of Cash Flows from Operating Activities to Adjusted EBITDA: Net cash flows from operating activities $ 6,866 $ 9,063 $ 9,114 $ 11,150 Interest expense 619 845 1,279 1,791 Amortization of deferred financing costs (36 ) (36 ) (72 ) (72 ) Income tax expense (benefit) (1,080 ) 383 (1,206 ) 2,652 Deferred income taxes 184 930 398 (50 ) Change in accrual for unrecognized tax benefits 364 (32 ) 332 (113 ) Change in accounts receivable (5,686 ) (9,490 ) (4,387 ) 45 Change in deferred revenue 3,808 3,447 (1,402 ) (2,297 ) Severance, professional fees and related costs 246 223 1,391 223 Restructuring 4,216 — 6,486 — Changes in working capital and other (1,007 ) 3,639 3,542 4,212 Adjusted EBITDA $ 8,494 $ 8,972 $ 15,475 $ 17,541 Expand For the three months ended June 30, 2025 Reconciliation of Income (loss) before income taxes to Adjusted EBITDA: ClearanceJobs Dice Corporate Total Income (loss) before income taxes $ 4,606 $ (2,952 ) $ (3,575 ) $ (1,921 ) Interest expense — — 619 619 Depreciation 881 2,880 — 3,761 Non-cash stock based compensation 213 534 789 1,536 Income from equity method investment — — 37 37 Severance, professional fees and related costs — (137 ) 383 246 Restructuring 372 3,844 — 4,216 Adjusted EBITDA 6,072 4,169 (1,747 ) 8,494 Reconciliation of Adjusted EBITDA Margin: Revenue $ 13,626 $ 18,401 $ — $ 32,027 Income (loss) before income taxes $ 4,606 $ (2,952 ) $ (3,575 ) $ (1,921 ) Income (loss) before income taxes margin (1) 34 % (16 )% n.m. (6 )% Adjusted EBITDA $ 6,072 $ 4,169 $ (1,747 ) $ 8,494 Adjusted EBITDA margin (1) 45 % 23 % n.m. 27 % For the three months ended June 30, 2024 Reconciliation of Income (loss) before income taxes to Adjusted EBITDA: ClearanceJobs Dice Corporate Total Income (loss) before income taxes $ 4,894 $ 191 $ (3,759 ) $ 1,326 Interest expense — — 845 845 Depreciation 672 3,914 — 4,586 Non-cash stock based compensation 401 744 1,015 2,160 Income from equity method investment — — (168 ) (168 ) Severance, professional fees and related costs (10 ) (20 ) 253 223 Adjusted EBITDA 5,957 4,829 (1,814 ) 8,972 Reconciliation of Adjusted EBITDA Margin: Revenue $ 13,528 $ 22,305 $ — $ 35,833 Income (loss) before income taxes $ 4,894 $ 191 $ (3,759 ) $ 1,326 Income (loss) before income taxes margin (1) 36 % 1 % n.m. 4 % Adjusted EBITDA $ 5,957 $ 4,829 $ (1,814 ) $ 8,972 Adjusted EBITDA margin (1) 44 % 22 % n.m. 25 % (1) Income (Loss) Before Income Taxes Margin and Adjusted EBITDA Margin are calculated by dividing the respective measure by that period's revenue. Expand For the six months ended June 30, 2025 Reconciliation of Income (loss) before income taxes to Adjusted EBITDA: ClearanceJobs Dice Corporate Total Income (loss) before income taxes $ 9,125 $ (11,292 ) $ (9,631 ) $ (11,798 ) Interest expense — — 1,279 1,279 Depreciation 1,576 6,169 — 7,745 Non-cash stock based compensation 420 991 1,188 2,599 Income from equity method investment — — (27 ) (27 ) Impairment of goodwill — 7,800 — 7,800 Severance, professional fees and related costs 284 85 1,022 1,391 Restructuring 372 3,844 2,270 6,486 Adjusted EBITDA 11,777 7,597 (3,899 ) 15,475 Reconciliation of Adjusted EBITDA Margin: Revenue $ 27,003 $ 37,325 $ — $ 64,328 Income (loss) before income taxes $ 9,125 $ (11,292 ) $ (9,631 ) $ (11,798 ) Income (loss) before income taxes margin (1) 34 % (30 )% n.m. (18 )% Adjusted EBITDA $ 11,777 $ 7,597 $ (3,899 ) $ 15,475 Adjusted EBITDA margin (1) 44 % 20 % n.m. 24 % For the six months ended June 30, 2024 Reconciliation of Income (loss) before income taxes to Adjusted EBITDA: ClearanceJobs Dice Corporate Total Income (loss) before income taxes $ 9,303 $ 643 $ (7,863 ) $ 2,083 Interest expense — — 1,791 1,791 Depreciation 1,324 7,718 — 9,042 Non-cash stock based compensation 799 1,482 2,023 4,304 Income from equity method investment — — (302 ) (302 ) Impairment of investment — — 400 400 Severance, professional fees and related costs (10 ) (20 ) 253 223 Adjusted EBITDA 11,416 9,823 (3,698 ) 17,541 Reconciliation of Adjusted EBITDA Margin: Revenue $ 26,533 $ 45,325 $ — $ 71,858 Income (loss) before income taxes $ 9,303 $ 643 $ (7,863 ) $ 2,083 Income (loss) before income taxes margin (1) 35 % 1 % n.m. 3 % Adjusted EBITDA $ 11,416 $ 9,823 $ (3,698 ) $ 17,541 Adjusted EBITDA margin (1) 43 % 22 % n.m. 24 % (1) Income (Loss) Before Income Taxes Margin and Adjusted EBITDA Margin are calculated by dividing the respective measure by that period's revenue. Expand A reconciliation of Adjusted EBITDA Margin for the three and six months ended June 30, 2025 and 2024 follows (in thousands): Guidance Earlier in this press release, the Company provided guidance for Adjusted EBITDA margin, which is a non-GAAP financial measure. We are unable to reconcile expected Adjusted EBITDA margin to its nearest GAAP measure without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of items such as non-cash stock-based compensation, impairments, income tax expense, gains or losses from equity method investments, severance, professional fees and related costs, and restructuring charges. By their very nature, these items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results. Therefore, we are unable to provide a reconciliation of this non-GAAP financial measure without unreasonable efforts.
Yahoo
24-04-2025
- Business
- Yahoo
DHI Group, Inc. to Report First Quarter 2025 Financial Results on May 7, 2025
CENTENNIAL, Colo., April 24, 2025--(BUSINESS WIRE)--DHI Group, Inc. (NYSE: DHX) ("DHI" or the "Company") today announced that it will report financial results for its first quarter ended March 31, 2025 on Wednesday, May 7, 2025, after the close of the market. Art Zeile, President and Chief Executive Officer, and Greg Schippers, Chief Financial Officer, will host a conference call and webcast at 5:00pm Eastern time to discuss the results. A press release with these results will be issued after the close of the market and prior to the call that afternoon and will be available in the Investor Relations section of the Company's website at Conference Call Information The call can be accessed on the day of the event by dialing +1-844-890-1790, or for international callers by dialing +1-412-380-7407. Please ask to join the DHI Group, Inc. call. You can pre-register for the call by clicking here: A live webcast of the call will simultaneously be available on the Company's website. A replay will be available after the call and can be accessed by dialing +1-877-344-7529 or +1-412-317-0088 for international callers; the replay passcode is 3213652. The replay will be available until May 14, 2025. A webcast replay of the call will also be available on the Company's website. About DHI Group, Inc. DHI Group, Inc (NYSE: DHX) is a provider of AI-powered career marketplaces that focus on technology roles. DHI's two brands, ClearanceJobs and Dice, enable recruiters and hiring managers to efficiently search for and connect with highly skilled technology professionals based on the skills requested. The Company's patented algorithm manages over 100,000 unique technology skills. Additionally, our marketplaces allow tech professionals to find their ideal next career opportunity, with relevant advice and personalized insights. Learn more at View source version on Contacts Investor ContactTodd Kehrli or Jim ByersPondelWilkinson, Inc.212-448-4181ir@ Media ContactRachel CeccarelliVP Engagement212-448-8288media@
Business Wire
24-04-2025
- Business
- Business Wire
DHI Group, Inc. to Report First Quarter 2025 Financial Results on May 7, 2025
CENTENNIAL, Colo.--(BUSINESS WIRE)--DHI Group, Inc. (NYSE: DHX) ("DHI" or the "Company") today announced that it will report financial results for its first quarter ended March 31, 2025 on Wednesday, May 7, 2025, after the close of the market. Art Zeile, President and Chief Executive Officer, and Greg Schippers, Chief Financial Officer, will host a conference call and webcast at 5:00pm Eastern time to discuss the results. A press release with these results will be issued after the close of the market and prior to the call that afternoon and will be available in the Investor Relations section of the Company's website at Conference Call Information The call can be accessed on the day of the event by dialing +1-844-890-1790, or for international callers by dialing +1-412-380-7407. Please ask to join the DHI Group, Inc. call. You can pre-register for the call by clicking here: A live webcast of the call will simultaneously be available on the Company's website. A replay will be available after the call and can be accessed by dialing +1-877-344-7529 or +1-412-317-0088 for international callers; the replay passcode is 3213652. The replay will be available until May 14, 2025. A webcast replay of the call will also be available on the Company's website. About DHI Group, Inc. DHI Group, Inc (NYSE: DHX) is a provider of AI-powered career marketplaces that focus on technology roles. DHI's two brands, ClearanceJobs and Dice, enable recruiters and hiring managers to efficiently search for and connect with highly skilled technology professionals based on the skills requested. The Company's patented algorithm manages over 100,000 unique technology skills. Additionally, our marketplaces allow tech professionals to find their ideal next career opportunity, with relevant advice and personalized insights. Learn more at
Yahoo
06-02-2025
- Business
- Yahoo
Q4 2024 DHI Group Inc Earnings Call
Todd Kehrli; Investor Relations; MKR Art Zeile; President, Chief Executive Officer & Director; DHI Group Inc Greg Schippers; Chief Financial Office; DHI Group Inc Zach Cummins; Analyst; B. Riley Securities, Inc Gary Prestopino; Analyst; Barrington Research Associates, Inc Max Michaelis; Analyst; Lake Street Capital Markets Kevin Liu; Analyst; K. Liu & Company LLC Operator Good afternoon and welcome to the DHI group fourth quarter and full year 2024 financial results conference call. (Operator Instructions) Please note this event is being recorded.I would now like to turn the conference over to Todd Curley of PondelWilkinson, Investor Relations. Please go ahead. Todd Kehrli Thank you, operator. Good afternoon, and welcome to DHI Group's 2024 Fourth Quarter and Full Year Earnings Conference Call. With me on today's call are DHI's CEO, Art Zeile; and CFO, Greg I turn the call over to art, I'd like to cover a few quick items this afternoon. DH I issued a press release announcing its 2024 4th quarter and full year financial release is available on the company's website at Dhi Group This call is being broadcast live over the internet for all interested parties and the webcast will be archived on the investor relations page of the company's website.I want to remind everyone that during today's call management will make forward-looking statements that involve risks and uncertainties. Please note that except for the historical information statements on today's call may constitute forward-looking statements within the meaning of the federal securities laws. These forward-looking statements reflect the HI groups current views concerning future events and future financial performance and are subject to risks and actual results may differ materially from the outcomes contained in any forward-looking statements. Factors that could cause these forward-looking statements to differ from actual results include the risks and uncertainties discussed in the company's periodic reports on form 10-K and 10-Q and other filings with the Securities and Exchange commission, Dhi undertakes no obligation to update or revise any forward-looking during today's call management will be referring to specific financial measures including adjusted EBITA adjusted EBITA margin, free cash flow and nongaap earnings per share that are not prepared in accordance with us GAAP. Information about and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are available in our earnings release, a copy of which you can find on our website at Dhi Group Inc dotcom in the Investor relations section. And now turn the call over to Art Zy CEO of Dhi Group. Art Zeile Thank you, Todd. Good afternoon, everyone and welcome to our 2024 fourth quarter earnings conference call. We appreciate your time today as we review our financial performance for the fourth quarter in the full year and provide our outlook for begin with an overview of our performance and the actions we've taken to strengthen our position moving forward despite a 7% revenue decline in 2024 we delivered full year adjusted EBITDA of $35.3 million. A margin of 25% up from a margin of 24% a year ago during the year and including our recently announced restructuring, we have reduced our total operating costs by over $10 million while enhancing our product offerings and strengthening our sales and marketing savings are approximately evenly split between operating expenses and capitalized development costs. These actions position us well for return to a normal tech hiring environment in increased demand for our solutions. As part of our restructuring conducted three weeks ago, we split our operations into two distinct brands of dice and clearance reorganization provides dedicated leadership for each brand, enabling tailored strategies that enable and align with their unique market dynamics and different customer also establishes a line of business structure that aligns sales, marketing, product and development functions under a brand leader while maintaining centralized support for human resources, finance and technology operations to efficiently manage employees, business systems and public company the restructure enhances profitability. While at the same time, unlocking greater long term strategic opportunities for each also sets us up to provide more specific brand financial reporting this let's dig into the current state of the tech labor market, which is a key growth indicator for our we are starting to see green shoots of increased demand, revenue renewal rates for both brands improved at the end of the quarter. And we've seen solid new business bookings in our staffing and recruiting the number of new tech job postings is approximately 70% of normal. We believe we are starting the new year off with a positive trajectory.A promising sign of recovery albeit slowly is the steady rise in new tech job postings. According to Comptia, these postings experienced a notable rebound in the second half of 2024 compared to the first half. During the first half of the year, new tech job postings fell 28% year over year, but momentum shifted in the latter half, showing a 12% increase in December alone, which is traditionally a slow month. More than 165,000 new tech job postings were created representing a 16% year over year believe this trend signals a steady albeit gradual recovery is taking shape for the tech hiring the tech unemployment rate remained low at approximately 2% in December, highlighting a tight labor market for tech positive trends align with projections from staffing industry analysts which forecasts a 5% growth in tech staff staffing hiring or revenue, I should say in 2025 this follows a 7% decline in 2024 and a 10% drop in 2023 suggesting a shift towards recovery in the tech staffing optimistic outlook was developed through extensive interviews with staffing and recruiting firms reflecting a shared confidence in the industry's improved performance in the year encouraging demand signal comes from light casts which tracks new tech recruiter job postings in the second half of 2024 tech recruiter job postings increased 22% year over year. An increase in hiring of tech recruiters often precedes a broader rise in demand for tech professionals as businesses ramp up their investment in technology initiatives such as A I platforms like clearancejobs and Dice will be essential tools for employers seeking top tech talent from our database of 9 million tech continue to hear success stories from our clients like Zions Bank Corporation's corporate recruiter who said being able to search for active and engaged it candidates is a huge asset. Dice is a must have tool in your tool belt if you are a technology recruiter, now let me dig into our performance during the fourth quarter and what we see ahead for 2025 in the fourth quarter, total revenue declined 7% year over year clearance jobs saw an increase of 7% while dice saw a decrease of 14% excluding transactional revenue. Our total recurring revenue declined 5% year over at our bookings performance, our total bookings were down 9% year over year in the fourth quarter. Clearance jobs bookings for the fourth quarter was flat year over year. The defense budget continuing resolution and uncertainty due to a possible government shutdown as well as the change of administration impeded our CJ bookings. But we believe that a one party government now favors a more consistent defense contracting spending remains a high priority for Congress and we believe that CJ will benefit as a result during the quarter, CJ secured several new customers including Hughes network solutions, trillion technology solutions and Enovia CJ serving approximately 2000 of the more than 10,000 employers hiring cleared tech professionals and over 100 government agencies also in need. There is a significant growth opportunity ahead for at Dice's business performance, its bookings for the fourth quarter declined 14% year over year due to the budget constraints imposed by employers and staffing firms in 2024. Nevertheless, Dice secured several notable customers this quarter including Dr Horton, the US Bureau of Diplomatic Technology and General the new business front, we continue to focus on recession resistant sectors like consulting aerospace, defense, health care, financial services and education in terms of renewals CJ and dice. Revenue renewal rates were 93% and 77% respectively. And our retention rates for CJ and dice were 111% and 97% the bottom line. During the fourth quarter, we delivered a 26% adjusted EBITDA margin slightly down from 27% a year ago. However, as mentioned earlier, our capitalized development expenses declined by 23% year over year contributing to free cash flow let me quickly touch on what we're doing to drive increased adoption of our two brands for clearance jobs. We are preparing to launch CJ verify by the end of the first quarter. As discussed on our last conference call, this product enables individual members to ascertain their government security status for a is also developing a paid candidate subscription service similar to linkedin premium that will offer enhanced functionality beyond the standard candidate plan to launch this offering by mid year and if successful, we'll explore introducing a similar subscription model for dice for dice. Our all jobs initiative continues to fuel job posting growth, driving higher candidate engagement and application activity. In 2024 dice averaged 1.6 million monthly job applications marking a 30% year over year increase and further reinforcing its position as the leading tech career believe in the virtuous cycle where increased candidate activity attracts more recruiters strengthening our subscriber base candidate. Success on dice is integral to maintaining a balanced two sided marketplace and advancing our mission of connecting tech professionals with meaningful careers. A recent candidate testimonial underscores this impact commenting, I have found all my jobs on dice.I'd also like to highlight the success of our comprehensive subscription packages which include unlimited job postings, company pages and job boosts. Not to mention a higher average selling price since its launch in November of 2023, 98% of all new business deals were signed in these packages. And 10% of our renewed customer accounts converted to this comprehensive subscription package with an average retention rate of 106% in key project product initiative for dice is a total reimagination of the dice web store aimed at boosting customer adoption among individual recruiters and small and medium sized businesses in a self serve manner. Recruiters will be able to purchase individual dice services directly through our site using a credit card. Paving the way for broader market engagement with over 30 beta customers. Currently testing the early functionality of the platform. Today, we are on track to be fully launched by the end of the on to guidance. While tech job postings are showing signs of improvement, we anticipate a slow and steady recovery for the full year 2025. We expect CJ bookings to grow. However, we do not expect total bookings growth to resume until tech hiring a result. We anticipate revenue of $131 million to $135 million for the full the first quarter. We expect revenue of $32 million to $33 million as tech hiring gradually improves throughout the year. We anticipate growing demand for our tech hiring solutions driving increased the meantime, we are focused on delivering strong profits for our shareholders and are targeting a 24% adjusted EBITDA margin for the full year a result, our board approved a new $5 million stock buyback program a couple of weeks ago as it believes as we do that, our shares are trading below their intrinsic value due to the soft tech hiring environment before I wrap up, I am pleased to announce that Greg Skippers is no longer serving as our interim CFO O but has officially been appointed our Chief Financial noted during our last earnings call. Greg brings over a decade of experience with DHI Group and has consistently demonstrated exceptional financial expertise in key areas vital to this role, including strategic financial planning, rigorous fina fiscal oversight and sound decision has shown outstanding leadership in budget management, operational efficiency, optimization and maintaining the highest standards of financial sharp analytical skills, attention to detail and commitment to transparency, make him an excellent choice for this position.I am confident in his abilities and look forward to his continued success in this closing. We have strengthened our business over the past year and are well positioned to capitalize on a steadily improving tech hiring remain committed to delivering greater value for our shareholders and look forward to sharing updates on our progress in the months ahead with that. I'll hand the call over to Greg to walk you through our financials and then we'll open up the floor for questions, Greg. Greg Schippers Thank you, Art and good afternoon. Everyone before I begin, I want to express how excited I am to take on the role of CFO O and how energized I feel about contributing to the growth of this business. I also look forward to building relationships with our shareholders and the analysts who cover let me take you through our financial results for the note that in the fourth quarter, we reclassified our career events bookings and revenue which had previously been included in dice to allocate them between clearance jobs and dice. Based on the nature of the event bookings and revenue were recast by quarter beginning with the first quarter of 2022. And can be found in our investor presentation which we posted to the investor relations tab on the DHI group website. Shortly after this call, we reported total revenue of $34.8 million which was down 7% on a year over year basis and down 1% versus the third bookings for the quarter were $32.9 million. Down 9% year over total recurring revenue was down 5% for both the fourth quarter and for the full year. And the bookings that drive, our recurring revenue were down 11% for the fourth quarter and 6% for the full year clearance jobs revenue was $13.8 million. Up 7% year over year. But down 1%. Sequentially, bookings for CJ were $14.2 million flat year over ended the fourth quarter with 1,949 CJ recruitment package customers which was down 5% on a year over year basis and down 2% on a sequential basis. This reduction is attributable to churn with smaller customers. Whereas the number of CJ accounts spending greater than $15,000 in annual recurring revenue has increased and is up approximately 15% versus prior average annual revenue per CJ recruitment package customer was up 15% year over year and up 2% sequentially to $25,148. Approximately 90% of CJ revenue is recurring and comes from annual or multi year contracts for the quarter. Cj's revenue renewal rate was up sequentially to 93% and cj's retention rate was strong at 111%.The outstanding retention rate demonstrates the continued value CJ delivers in the recruitment of cleared professionals revenue was $21.0 million which was down 14% year over year and down 2%. Sequentially, dice bookings were $18.7 billion down 14% year over ended the quarter with 4,711 dice recruitment package customers which is down 3% from last quarter and down 14% year over year. This reduction is attributable to churn with smaller customers spending less than $15,000 per average annual revenue per dice recruitment package customer was up slightly compared to the third quarter and up 4% year over year to $16,380. As with CJ, 90% approximately 90% of dice revenue is recurring and comes from annual or multi year contracts for the quarter. Our dice revenue renewal rate was 77% and its retention rate was 97%.Turning to operating expenses. Fourth quarter, operating expenses were down 2% to $33.1 million when compared to $33.8 million in the year ago quarter, our fourth quarter operating expenses reflect the cost savings associated with our restructuring in the third quarter of 2024. Because of the more difficult market conditions in 23 and 2024 we reduced costs through restructurings in the second quarter of 2023 in the third quarter of 2024 and again January of this year, together these restructurings have reduced our annual operating expenses and capitalized development costs by approximately $20 continue to focus on our operational efficiency for the quarter. We had an income tax benefit of $50,000 on income before taxes of $972,000. Our tax rate for the quarter differed from our approximate statutory rate of 25% due primarily to the reversal of liabilities for uncertain tax positions as federal and state statutes expired. We also remain committed to preserving our capital loss carry forward which exceeds $100 million and is an important asset for maximizing shareholder value to safeguard this asset. We implemented a section 382 rights plan last plan is designed to protect our capital loss carry forward ensuring we can offset any potential future capital gains tax. Moving on to the bottom line. We recorded net income of $1.0 million or $0.02 per diluted share in the fourth quarter for the prior year quarter. We reported a net income of $2.1 million or $0.05 per diluted earnings per share for the quarter was $0.07 compared to $0.08 for the prior year shares outstanding for the quarter were 45.9 million compared to 44.6 million shares in the prior year EBITA for the fourth quarter decreased 9% to $9.2 million. A margin of 26% compared to $10.1 million or a margin of 27% in the fourth quarter. A year cash flow for the fourth quarter was $4.4 million compared to $7.6 million in the prior year period, free cash flow which is operating cash flows less capital expenditures was $1.6 million for the fourth quarter compared to $2.4 million in the fourth quarter of last capital expenditures primarily consist of capitalized development costs which were $2.7 million in the fourth quarter compared to $3.6 million in the fourth quarter. Last year, a savings of $0.8 million or 23% for the full year operating cash flows were 21.0 million which approximated the 2023 level free cash flow for the current year was $7.1 million. A $6.0 million increase over the prior year which included a $3.9 million decrease in capitalized development costs year over year over time, we are targeting free cash flow at 10% of annual revenue following the restructurings. We expect further reductions to our capitalized development costs in are targeting total capital expenditures in 2025 to range between 10 million and $11 million as compared to $13.9 million last consolidating our tech organization with a smaller number of teams with subject matter expertise and adjacent areas. We are expecting to accelerate our product release schedule and enhance our overall a liquidity perspective. At the end of the quarter, we had $3.7 million in cash and our total debt was $32.0 million under our $100 million revolver resulting in leverage at 0.9 times. Our adjusted EBITA total debt outstanding decrease $6 million from $38 million. At the end of last year, we continue to target 1 times leverage for the business deferred revenue at the end of the quarter was $45.5 million down 9% from the fourth quarter of last total committed contract backlog at the end of the quarter was $111.3 million, which was up 3% from the end of the fourth quarter. Last year, short term backlog was $85.2 million. At the end of the fourth quarter. A decrease of $4.6 million or 5% year over year long term backlog that is revenue to be recognized in 13 or more months was $26.0 million at the end of the quarter, an increase of $7.7 million or 42% from the prior year the quarter, we did not purchase shares under our share buyback program for the year. We repurchased 0.8 million shares for $1.9 million to cover income tax withholdings associated with the vaccine of employee shares. As art mentioned, our board recently approved a new $5 million stock repurchase program which will begin this month and will run through February to the guidance that are provided, we are targeting an adjusted EBITA margin of 24% for the full year as lower capitalized development costs contribute to free cash focus remains on achieving long term sustainable revenue growth and we are well positioned to drive customer acquisition and capitalize on opportunities when tech hiring returns to normal levels to wrap up. While the hiring environment over the past two years has impacted our growth. We anticipate that companies across all industries will steadily increase their investment in technology initiatives in 2025 and beyond, we believe this will drive greater demand for our products and the meantime, we remain focused on enhancing our industry leading offerings, optimizing our go to market execution and doing so efficiently ensuring we are well positioned to capitalize on this with that, let me turn the call back to art. Art Zeile Thank you, Greg. I want to thank all of our employees again for their hard work in one team effort. This past year, it is a pleasure to be part of such a great team with that. We're happy to answer your questions. Operator We will now begin the question and answer session to ask a question. You may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset. Before pressing the keys to withdraw your question. Please press star then two at this time, we will pause momentarily to assemble our first question today is from Zach Cummins with B Riley FBR. Please go ahead. Zach Cummins Hi, good afternoon, Art and, and congrats Greg on appointment to the permanent CFO position. I just wanted to ask you about dice and, and the business prospects as you're thinking about 2025 it seems like you're assuming a slow and steady recovery as we move throughout the year. I'm just curious what you're hearing from your staffing side of the business versus maybe what, what you're hearing from the commercial accounts. Art Zeile We've, that's a great question, Zach. And we've always had this thesis that staffing would have a return to kind of normalcy before our commercial accounts. And it seems like that's happening right now. In fact, it seemed like the turning point was really the end of last year when a lot of people were deciding their budgets and it feels a lot more bullish. A lot more positive. I'd say that the one area that feels like it's firming up and stabilizing is both the renewal activity associated with our staffing accounts as well as new business that is consistent with that si report that indicates that we're going to see or it's forecasting that we're going to see 5% revenue growth for 2025. Zach Cummins Understood. And my one follow up question is more towards given all the efficiency initiatives with within the current administration, any concerns for CJ S prospects as we move throughout the year amidst these different organizations. Art Zeile That's another great question. A number of our investors have asked us that same question as to what we're hearing about whether or not contract activity will be cut or that there will be a view to reduce the defense budget right now. We are not seeing that in terms of the activity levels for CJ new business as well as account renewals. And we do believe that Congress is firmly committed to the existing and and enhanced defense budget. So we haven't seen any direct impact to activities like Doge, but you know, it remains to be seen obviously in the weeks and months to come. Zach Cummins Understood. Well, thanks for taking my questions and congrats on the stabilizing results in Q4. Art Zeile Really appreciate that, Zach. Thank you. Operator The next question is from Gary Prestopino with Barrington Research. Please go ahead. Gary Prestopino Hi, good afternoon, Art and Greg, a couple of questions here. First of all, in terms of the cash, I'm just looking at it and if you hadn't paid down debt, you use cash throughout the year to pay down debt, I guess is what I'm getting. And if you hadn't paid down debt, the cash on hand would have been much higher. In Q4, is that kind of a correct assumption? Greg Schippers Yeah, we used approximately $6 million of cash to pay down debt and then almost $2 million to repurchase shares under share vestings from our share programs with employees. Gary Prestopino All right. And then, I guess I'm just having just a little bit of problem reconciling some of this here. You said you've cut your expenses by about $20 million or your, your, your expenses including 10 million of OpEx, and 10 million of capitalized expenses.I realize in the capitalized expenses, they get amortized over a year or two, right, or two years. But is, is your P&L not going to feel the full effect of that $10 million decline in operating expenses because of why wouldn't it, I guess is what I'm getting at that would close your ebic on margin to not be a little bit higher. Greg Schippers No, that makes complete sense. Gary. So you're correct. It's roughly a 50 to 50 split between capitalized development costs and OpEx. So you can think about $20 million of cash savings. But the timing of that flowing through those savings started with a bigger chunk of it being in 2023. And that restructuring, which was $8 million to $10 million, the last two that we did in the middle of last year. And then just now we're each called approximately $5 million in the $4 million to $6 million range for each one. So you'll see more of those savings coming through in 2025 if you get the full year impact of the cash savings, otherwise it was it was kind of, amortized in if you will over time because they were staggered over six to you know, eight months in between. Gary Prestopino . And then art when or will you be doing more in depth segment reporting in terms of either operating income or adjusted even by brand this year? Greg Schippers Yeah, Gary, I'll take that one as well. Good question and we do get that a lot since since we announced the restructuring and, our intention is to dive into that immediately following actually, our, our earnings process here and our, our finance team will, will, have the goal of getting there in the first half of this year. And you know, we'll have more to come on that here in the next couple of months. Gary Prestopino Okay. That, that's great. That's all I need to know. Thank you. Art Zeile You're welcome. Thanks, Gary. Operator The next question is from Max Malice with Lake Street capital markets. Please go ahead. Max Michaelis Hey guys, just a couple from me. Thanks for taking my questions and Greg congrats on the promotion. When we look at bookings in 2025 I know you guys don't expect bookings growth. You do expect clearance jobs growth. But I guess I was wondering if you could help me out a little bit just with dice contracting 15% in the year. I mean, from current internal when you guys look out to 2025 internally, when you guys look at bookings growth or decline, whatever you want to call it. I mean, are you, are you expecting an improvement in 2025 from 2024? I guess on both segments, maybe dice from the decline of 15% and clearance jobs from 4% growth in 2024 or are you kind of just holding back? Greg Schippers Yeah, so we are expecting, as we mentioned, kind of on the call here that, we do expect some growth at CJ and you know, continue continues to have strong demand and with the government, having one political party kind of in charge will help with the defense budget getting that certainty in place. But dice, yeah, dice continues, we're, we're not, we're not expecting anything and we're not budgeting for anything to improve. In the market at this point, we're staying on the conservative side of that that said from a year over year basis. As you go through the year, we do expect some improvement throughout the four quarters of 2025 on a year over year basis in bookings. Max Michaelis Okay. That's it for me guys. Thanks. Greg Schippers Thanks Max. Operator Again. If you have a question, please press star. Then one, the next question is from Kevin Liu with K Liu and company. Please go ahead. Kevin Liu Hey, good afternoon guys. Maybe just to revisit the CJ part of the business. I wanted to clarify whether you guys feel you have any exposure today to either the Department of Education or other agencies that may potentially you know, be on the Ching block here or if all of your exposure there is primarily tied to defense budget activity. Art Zeile That's a great question, Kevin and I would say that we really don't have any exposure from the kind of non cleared agencies that are operating. I would say it's always the intelligence community and those that are associated with defense that are interested and have the wherewithal and the ability to directly license with clearance jobs. So think of it this way that if there are major changes with that, with the intelligence community agencies like CIA FBI Dia NSA that could affect us. But otherwise we, we're not necessarily exposed to the broader number of agencies that operate under the government and that's not to say that we're out of the woods or that they won't be targeting those agencies, but it seems less likely. Though not impossible. Kevin Liu Got it. No, I appreciate that. And just as it relates to dice, I'm wondering, as we look at the, your forecast for revenue for the year, you know, what are the expectations around, kind of the non-recurring portion of the business versus the recurring? And then just related to that with kind of the new dice story coming out. You know, what exactly is kind of different about what you guys are introducing there versus what you've done historically. Greg Schippers I'll take the first part of that, Kevin. So, from a recurring and non-recurring business. So that's basically our, our annual packages on the recurring side, we don't, we're not anticipating improvement in that transactional or non-recurring business in 2025. You know, if the tech recruiting market really picks up as we mentioned, then, you know, that we have the opportunity for some upside there, but it's at this point, we're, we're not seeing it and so we're going to project out that we're similar to how we were in 2024 and just, for purposes of kind of what that relates. It's about 90% recurring, and, and less than 10% non-recurring and we project that into 2025 as well. Art Zeile And Kevin I'll follow up by saying that we believe that those transactional products are generally associated with hiring urgency. So if we do see those transactional products become more needed by our customer base, that would be a very good thing because it would say that the market is tightening significantly and people are having a harder time finding tech second part of your question is a good one. You know, what are we envisioning for dice's its future and, and how we want to re establish its brand. We are embracing this idea of a new dice web store. It's been a development that's been underway for at least a year, probably more like a year and a half when you think about the planning period and it will embrace what's called product led allow individual recruiters to, for example, buy a subscription package on their own, using a credit card, they'll be able to in the future buy a number of profile views if they have a real problematic position and they're trying to find more resumes to fulfill that position. And the hope is that by getting a taste of dice, they'll convince their hr leader that they need a larger subscription for the whole team. So it's kind of a way of getting a foot in the door for new organizations that we can't necessarily talk to every day just because we have limited sales capacity. Kevin Liu Yeah, makes sense. And then just lastly for me, as we think about kind of the marketing spend for this year, is it expected to be pretty steady throughout the year or are there certain periods where you expect it to be more pronounced than others? Art Zeile Yes, I can tell you that marketing spend is seasonal in a sense. We know that, recruiters and candidates are taking vacations in the summer time. They're also, enjoying the holidays in November and December and we tailor the spend in those two periods downward as a result because we're just not going to see the eyeballs that we expected through our regular digital marketing campaign effort. Kevin Liu Got it. That's all for me. Good luck as you guys make your way through this year. Art Zeile Well, I really appreciate it. Thank you. Operator This concludes our question and answer session. I would like to turn the conference back over to Art Zallie for any closing remarks. Art Zeile Thank you, Gary and thank you for all of you joining us today. As always, if you have any questions about our company or would like to speak with management, please out, reach out to Todd and he will help arrange a meeting. Thank you for your interest in Dhi group and have a wonderful day and week. Operator The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. Sign in to access your portfolio
