DHI Group, Inc. (NYSE: DHX) recently announced financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial Highlights(1)
- Total revenue was $35.8 million, down 7% year over year.
- ClearanceJobs revenue was $13.3 million, up 8% year over year.
- Dice revenue was $22.6 million, down 14% year over year.
- Total bookings were $30.0 million, down 7% year over year.
- ClearanceJobs bookings were $11.4 million, up 9% year over year.
- Dice bookings were $18.6 million, down 15% year over year.
- Net income was $0.9 million, or $0.02 per diluted share, a net income margin of 3%, compared to a net loss of $0.1 million, or $0.00 per diluted share, a net loss margin of 0%, in the year-ago quarter.
- Non-GAAP earnings per share was flat compared to the prior year quarter at $0.06 per diluted share.
- Adjusted EBITDA was $9.0 million, up 3% year over year, and Adjusted EBITDA Margin was 25%, up from 23% in the year-ago quarter.
- Cash flow from operations was $9.1 million, up 12% from $8.1 million in the year-ago quarter.
- Cash was $3.0 million at quarter end compared to $2.7 million in the year ago quarter and total debt was $35.0 million at quarter end, down $8.0 million from the year-ago quarter.
Commenting on the results, Art Zeile, President and CEO of DHI Group, said:
“Although our bookings are not where we hoped they would be, throughout the quarter, we continued to see a slow rise in new tech job postings, with May’s total of 209,000 reported by CompTIA marking the highest since June 2023. While we haven’t yet returned to the pre-pandemic average of 300,000 new job postings per month, there are signs of improvement as more employers are coming off the sidelines. AI initiatives are increasingly driving demand for tech professionals, particularly with consulting firms being the initial focus for corporations. Notably, IBM recently announced that it had already booked $1 billion in AI-related business so far this year, and McKinsey & Company said it anticipates that at least 40% of its projects this year will involve AI. We view this as an early indication of growing AI demand as companies test initiatives with consulting firms before launching broader projects. As businesses ramp up their investment in technology, we believe our subscription-based offerings, which include 8.5 million technologist profiles and our proprietary tech skills mapping and search algorithms, will be essential tools for employers looking to find the ideal candidates for their open tech job postings.”
Updating 2024 full-year guidance, Raime Leeby, CFO of DHI Group, commented:
“While we expect our bookings performance in the second half of the year to continue to improve, many employers continue to be very budget-conscious during this uncertain economic environment. As a result we do not expect our total bookings to return to growth until next year. We expect our third quarter bookings to be down between 4% to 6% year over year, and we expect our revenue for the third quarter to be down 4% to 6% year over year, with total revenue for the full year declining in the mid single-digit percentage range. From a profitability perspective, we continue to target an Adjusted EBITDA margin of 24% for the full year. We remain focused on driving long-term, sustainable revenue growth and are well positioned from a customer acquisition perspective to return to growth as tech hiring returns to normal levels.”
