DHI Group Revenue Dips 12%

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DHI Group, Inc. trading under (NYSE:DHX) announced the following financial results for the fourth quarter ended December 31, 2020. 

Fourth Quarter 2020 Financial Results

  • Total revenues were $33.2 million, flat sequentially and down 12% year over year. 
  • Dice revenues were $19.4 million, down 2% sequentially and 17% year over year. 
  • ClearanceJobs revenues were $7.6 million, up 4% sequentially and 15% year over year. 
  • eFinancialCareers revenues were $6.2 million, up 1% sequentially and down 21% year over year (23% excluding impact of foreign exchange). 
  • Net income was $2.0 million, compared to net income of $3.5 million in the year ago quarter. 
  • Earnings per diluted share was $0.04, compared to earnings per diluted share of $0.07 in the year ago quarter. Adjusted earnings per diluted share1 for the quarter was $0.03 vs. $0.06 last year. 
  • Cash flow from operations was $4.2 million, compared to $3.9 million in the year-ago quarter. 
  • Adjusted EBITDA1 was $7.0 million, an Adjusted EBITDA margin1 of 21%, compared to $8.6 million and 23% in the year-ago quarter.

Full Year 2020 Financial Results

  • Total revenues were $136.9 million, down 8% year over year. 
  • Dice revenues were $82.2 million, down 11% year over year. 
  • ClearanceJobs revenues were $29.0 million, up 17% year over year. 
  • eFinancialCareers revenues were $25.7 million, down 20% year over year. 
  • Net loss was $30.0 million, or $0.62 per diluted share, which was negatively impacted by $37.9 million in non-cash impairment and other charges, net of tax. Net income in the prior year was $12.6 million, or $0.24 per diluted share, which was negatively impacted by $1.6 million in disposition and other charges, net of tax. Adjusted earnings per diluted share1 for the year was $0.16 vs. $0.28 last year. 
  • Cash flow from operations was $18.7 million, compared to $22.9 million in the prior year. 
  • Cash was $7.6 million and net debt1 was $12.4 million. 
  • Adjusted EBITDA1 was $29.9 million, an Adjusted EBITDA margin1 of 22%, compared to $34.9 million and 23% in the prior year.

See “Notes Regarding the Use of Non-GAAP Financial Measures” later in this press release.

Commenting on the quarter, Art Zeile, President and CEO of DHI Group, Inc., said:

“I am pleased to report that we finished the year with strong bookings in December, and have followed that solid performance with continued momentum in January. December and January are our two largest renewal months for Dice, and combined represent almost 30 percent of our total bookings for the year. Our Dice revenue renewal rate increased significantly in the fourth quarter to 75 percent, up from 66 percent in the prior quarter. This gives us increased confidence in the rebound for our business as we enter the new year. Additionally, surveys during the quarter from two independent industry research firms, the Staffing Industry Analysts and the TechServe Alliance, reflect a continuing recovery trend throughout the staffing sector, and confidence that hiring will continue to rebound in 2021. As we continue to execute on our long-term revenue growth plan, we believe we can capitalize on these improving market dynamics with our industry leading online career marketplaces for matching companies with the highest quality tech professionals.”

Product Highlights

Below are the key product highlights delivered during the fourth quarter:

Dice

  • Dice Instant Messaging, the next major step in the evolution of the Dice Marketplace, is a comprehensive and flexible platform through which recruiters and candidates can rapidly and confidently search, match and communicate in real-time. Instant messaging is the first of our Marketplace connection tools to help recruiters drive continual engagement with candidates for current and future roles and for candidates to have direct and private conversations with recruiters. Launched in November 2020, over 30,000 messages have already been sent through Dice Instant Messaging, and this number continues to grow exponentially.
  • Dice Identification Authentication Service uses industry leading artificial intelligence to authenticate Dice users, both clients and candidates. 

ClearanceJobs

  • CJ Self-serve BrandAmp allows employers to set up and update job post branding pages in a self-serve interface with full and easy capabilities to edit their profile pages in real time.
  • CJ Candidate Search and Broadcast Message upgrades allow recruiters to tag and then search and find prospects for review or broadcast message with any, all or none of the tags entered. These features are important to recruiter workflows and future talent pipelining and messaging tools. 

eFinancialCareers

  • eFC IntelliSearch Job Alerts helps candidates find jobs that fit their skills and interests using DHI’s patent-pending tech skills data model. Intellisearch Job Alerts simplify the candidate experience by automatically surfacing highly relevant job opportunities to candidates based on information in their profile. Application rates for Intellisearch Job Alerts are higher than keyword-based job alerts because the jobs are more relevant to the candidate. IntelliSearch Job Alerts also drive new candidate registrations and encourage profile updates and completeness. 

Business Outlook

“While we do not provide specific financial guidance, we expect the strong bookings performance we had in the fourth quarter to manifest itself in increased revenue beginning in the second half of 2021,” commented Kevin Bostick, CFO of DHI Group, Inc. “We will continue to operate the business to Adjusted EBITDA margins1 in the 20% range as we execute on our long-term revenue growth plan.”                    

See “Notes Regarding the Use of Non-GAAP Financial Measures” later in this press release.                              

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