Press Release: DHI Group Reports Fourth Quarter and Full Year 2020 Financial Results

· 02/04/2021 16:15

-- 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.-- 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.-- 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.-- 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.-- 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.

DHI Group Reports Fourth Quarter and Full Year 2020 Financial Results

PR Newswire

CENTENNIAL, Colo., Feb. 4, 2021

CENTENNIAL, Colo., Feb. 4, 2021 /PRNewswire/ -- DHI Group, Inc. (NYSE:DHX) ("DHI" or the "Company") today announced the following financial results for the fourth quarter ended December 31, 2020.

Fourth Quarter 2020 Financial Results

Full Year 2020 Financial Results

(1) 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

ClearanceJobs

eFinancialCareers

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 margins(1) in the 20% range as we execute on our long-term revenue growth plan."

(1) See "Notes Regarding the Use of Non-GAAP Financial Measures" later in this press release.

Conference Call Information

Art Zeile, President and Chief Executive Officer, and Kevin Bostick, Chief Financial Officer, will host a conference call today, February 4, 2021, 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 +1-412-380-7407 (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, https://www.dhigroupinc.com, and available for replay after the call ends.

About DHI Group, Inc.

DHI Group, Inc (NYSE: DHX) is a provider of software products, online tools and services to deliver career marketplaces to candidates and employers globally. DHI's three brands--Dice, ClearanceJobs and eFinancialCareers-- enable recruiters and hiring managers to efficiently search, match and connect with highly skilled technologists in specialized fields, particularly technology, those with active government security clearances and in financial services. Professionals find ideal employment opportunities, relevant job advice and personalized data to best manage their whole technologist life. For 30 years, we have leveraged the latest technology to foster career connections in multiple markets including North America, Europe, the Middle East and the Asia Pacific region. Find out more at www.dhigroupinc.com.

Investor Contact

Todd Kehrli or Jim Byers

MKR Investor Relations, Inc.

212-448-4181

ir@dhigroupinc.com

Media Contact

Rachel Ceccarelli

VP of Engagement

212-448-8288

media@dhigroupinc.com

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 an alternative for, 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, Adjusted Diluted Earnings Per Share, and Net Debt provides useful information to management and investors regarding certain financial and business trends relating to its 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. 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.

Adjusted Diluted Earnings Per Share

Adjusted Diluted Earnings Per Share is a non-GAAP metric and performance measure that is useful to investors and management in understanding our ongoing operations and in the analysis of operating trends. Adjusted Diluted 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 impairments, costs related to reorganizing the Company, including severance and related costs, gains or losses on the sale of businesses, disposition related and other costs, and discrete tax items.

Adjusted Diluted 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.

Adjusted EBITDA and Adjusted EBITDA Margin

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February 04, 2021 16:15 ET (21:15 GMT)