NEW YORK, May 2, 2019 — DHI Group, Inc. (NYSE: DHX) (“DHI” or the “Company”), today announced the following financial results for the first quarter ended March 31, 2019.
First Quarter 2019 Financial Highlights
- Revenues were $37.1 million. Ongoing tech-focused1 revenues were up 1% year over year and 2% excluding the effect of foreign exchange
- Dice revenues were $23.1 million, down 1% compared to the prior year period, marking a sustained trend of improvement
- eFinancialCareers revenues were $8.2 million, in line year over year, excluding foreign exchange
- ClearanceJobs revenues were $5.8 million, up 20% year over year, the thirteenth consecutive quarter of at least 20% year over year revenue growth
- Net income was $1.6 million, or $0.03 per diluted share
- Cash flow from operations was $3.2 million
- Adjusted EBITDA2 was $8.5 million and Adjusted EBITDA margin2 was 23%, the third consecutive quarter of sequential margin improvement
Commenting on the results, Art Zeile, President and CEO of DHI Group, Inc., said:
“Our solid quarterly results, which included revenue growth from our ongoing tech-focused1 business for the first time in several years, reflect the continued positive momentum we are generating against our tech-focused strategy and the hard work of our entire team. We continued to deliver solid adjusted EBITDA margins2 while also investing in sales, marketing and innovation.”
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.
First Quarter 2019 Business Highlights
Dice
- Completed migration of 99% of Dice customers to TalentSearch with Intellisearch, generating positive feedback and a double-digit increase in usage.
- Launched Candidate Match, which uses DHI’s AI-based technology skills data model to grade each candidate’s skills, experience and relevance against the requirements of a job posting.
- Introduced performance-based products alongside the Company’s current user-based model. The enhancement, which has been offered in ClearanceJobs to great success, enables clients to pay on a consumption basis.
ClearanceJobs
- Introduced Pulse, a unified news feed for candidates, which enables a stream of information from recruiters connected to a candidate.
- ClearanceJobs hit a new record for job postings and candidate connections and doubled nearly every engagement metric since the launch of its Next Generation platform, including increases in the amount of messages processed and the number of searches on the platform.
eFinancialCareers
- Released Job Search during the quarter, which is an improved capability to assist candidates in finding jobs that are more relevant to their resume and background.
- Introduced performance-based products, which are now in the pilot phase, and are being offered alongside the Company’s current user-based model.
Recent Developments
In April 2019, the Board of Directors authorized the purchase of up to an additional $7 million of the Company’s common stock through May 2020, renewing the Company’s prior stock repurchase program. Under the plan, management has discretion in determining the conditions under which shares may be purchased from time to time.
Business Outlook
The Company believes that its ongoing tech-focused1 business will continue to achieve modest improvements in revenue growth rate as the year progresses. The Company further anticipates that Dice will turn to positive year over year revenue growth in the second half of 2019. 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 margin2 for the year. 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.