NEW YORK, Feb. 7, 2019 — DHI Group, Inc. (NYSE: DHX) (“DHI” or the “Company”), today announced the following results for the fourth quarter ended December 31, 2018:

• Revenues were $38.0 million; Ongoing tech-focused revenues¹ were unchanged year over year for the first time in nearly 3 years
• Net income was $2.9 million, or $0.06 per diluted share
• Cash flow from operations of $6.2 million; Adjusted EBITDA² was $8.3 million and Adjusted EBITDA margin² was 22%

“We ended 2018 with strong momentum, reaching an important inflection point in our business,” said Art Zeile, President and Chief Executive Officer of the Company. “We stabilized our ongoing tech-focused revenues¹, improved our profitability and made significant progress in delivering against our tech-focused strategy. We put in place a strong, execution-oriented management team and began implementing a culture of customer-focused innovation. We are well positioned to achieve our 2019 strategic growth plan.”

Quarterly Financial Highlights

• Ongoing tech-focused revenues¹ of $38.0 million were unchanged year over year
• Dice³ revenues were $24.0 million, down 4% compared to the prior year period, the third sequential quarter in which this decrease narrowed
• eFinancialCareers revenues were $8.3 million, 2% higher versus the prior year period, excluding foreign exchange
• ClearanceJobs revenues were $5.7 million, 22% higher year over year, the twelfth consecutive quarter of at least 20% year over year revenue growth
• Improved metrics for Dice recruitment package customers
  • 6,200 customers, 4% lower year over year, but unchanged sequentially for the third consecutive quarter, achieving stability for the first time in several years
  • Quarterly customer renewal rate of 67%, revenue renewal rate of 78% and monthly revenue per recruitment customer of $1,129
• Debt outstanding was $18 million as of December 31, 2018, a 57% decrease year over year

¹ Excludes Dice Europe, which ceased operations August 31, 2018.  
² See “Notes Regarding the Use of Non-GAAP Financial Measures” later in this press release.  
³ Includes Dice U.S. and Targeted Job Fairs.

“We are very pleased with the progress we made in delivering against our financial priorities in 2018, particularly the turning point reached in our ongoing tech-focused revenues¹,” said Luc Gregoire, Chief Financial Officer. “Our efficiency initiatives also drove improved margins over the past few quarters, even as we invested in our business. We are seeing this positive momentum carry into 2019, where we expect to pivot to top-line growth and improved profitability.”

Quarterly Business Highlights

Dice

• Completed migration of 76% of Dice customers to TalentSearch with Intellisearch, with positive feedback and a double digit increase in usage.

ClearanceJobs

• Launched Next Generation, a new platform that helps recruiters source and engage cleared talent quickly through sophisticated technology and communications tools. Next Generation includes large-scale improvements to user workflows, a fully re-designed messenger app that includes live chat and deeper integration of ClearanceJobs Voice.
• Continued to outperform all financial and operational goals, as well as hitting a new record for job postings and candidate connections in the fourth quarter. A key driver of ClearanceJobs’ success is its unique user experience with high levels of interaction, which doesn’t exist anywhere else in the market for connecting specialized, hard-to-find and skilled talent to employers.

eFinancialCareers

• Made solid progress with its Matchback program. This program works with bank human resource leaders to directly tie the hires they make to applications processed on eFinancialCareers’ platform. For example, the eFinancialCareers team demonstrated to a Global 500 bank that eFinancialCareers had sourced 1,352 hires to the bank in eighteen months, saving the equivalent of $30 million in search fees.

Business Outlook

Looking ahead, the Company believes that its ongoing tech-focused business¹ will achieve modest year over year revenue growth beginning in the first half of 2019, which should improve as the year progresses. The Company further anticipates that Dice³ will turn to positive year over year revenue growth in the 2019 second half. This year, the Company expects to make further progress on rationalizing its expenses, while at the same time investing prudently for growth, which should enable the Company to maintain its current level of Adjusted EBITDA margin in the first half and gradually begin to increase its margin in the second half. The Company is unable to provide guidance for net income because it cannot reasonably assess the impact of stock-based compensation and income tax expense.