DHI Group Reports 2023 Fourth Quarter and Full Year Financial Results
- None.
- None.
Insights
The reported decline in total revenue by 6% year over year for the fourth quarter indicates a contraction in DHI Group's business operations. However, the increase in Adjusted EBITDA by 24% and the improvement in Adjusted EBITDA Margin to 27% from 20% in the previous year is notable. This suggests that the company has been successful in enhancing operational efficiency or reducing costs. A higher EBITDA margin typically implies better control over operating expenses relative to revenue, which can be a positive signal to investors regarding the company's profitability potential.
Another critical aspect is the total bookings decrease by 4% year over year. Bookings are a forward-looking indicator, often reflecting the future revenue potential from contracts signed during the period. A decline in bookings could suggest a potential future downturn in revenue, which is essential for investors to monitor. The cash flow from operations has seen a slight increase, which is positive as it reflects the cash-generating capability of the company's core business activities.
From a financial perspective, the mixed results with growth in Adjusted EBITDA and a decline in total revenue and bookings present a nuanced picture. The company's ability to maintain profitability in a challenging macro-economic environment may be seen as a strength, but the decrease in bookings could be a concern for future revenue streams.
In the context of the broader market and the company's positioning, the statement by the CEO regarding an increase in demand for technology professionals as the economy improves is significant. This anticipated demand could signal a potential uptick in the tech sector hiring trends, which would directly benefit DHI Group's core business of providing hiring tools and platforms. However, investors should consider the company's guidance for a low single-digit percentage decline in total revenue for the full year, which suggests a conservative outlook and possibly a slower recovery than the market might expect.
It's also important to note the strategic focus on improving industry-leading product offerings and go-to-market execution. These efforts could enhance the company's competitive edge and market share, particularly as economies recover and tech hiring accelerates. The emphasis on efficiency and profitability, as echoed by the CFO, indicates a disciplined approach to cost management, which could help the company navigate uncertain market conditions.
From an economic perspective, the company's performance must be contextualized within the current macro-economic environment. The mention of operating effectively in challenging conditions suggests resilience amid economic headwinds like inflation, interest rate hikes, or potential recessionary trends. The company's outlook, expecting a return to bookings growth in the second half of the year, hints at a forecasted economic improvement.
However, the broader economic recovery, especially in the technology sector, will be crucial for DHI Group's long-term success. The company's anticipation of increased investment in technology initiatives as the economy improves could be a leading indicator of sector-wide growth. Yet, the reliance on the economic recovery for accelerated growth also exposes the company to external economic risks. Stakeholders should weigh these factors when considering the company's future performance.
Fourth Quarter 2023 Financial Highlights(1)
-
Total revenue was
$37.3 million 6% year over year.
-
Total bookings were
$36.1 million 4% year over year.
-
Net income was
$2.1 million $0.05 6% , compared to net income of$2.4 million $0.05 6% , in the year-ago quarter. Adjusted Diluted Earnings Per Share for the quarter was$0.04 $0.01
-
Adjusted EBITDA was
$10.1 million 24% year over year, and Adjusted EBITDA Margin was27% , up from20% in the year-ago quarter.
-
Cash flow from operations was
$7.6 million $7.3 million
-
Cash was
$4.2 million $38.0 million $40 million
Fiscal Year 2023 Financial Highlights(1)
-
Total revenue was
$151.9 million 1% year over year.
-
Total bookings were
$153.2 million 4% year over year.
-
Net income was
$3.5 million $0.08 2% , compared to net income of$4.2 million $0.09 3% , a year-ago. Adjusted Diluted Earnings Per Share was$0.10 $0.05
-
Adjusted EBITDA was
$36.3 million 17% year over year, and Adjusted EBITDA Margin was24% , up from21% a year-ago.
-
Cash flow from operations was
$21.3 million $36.0 million
(1) See definition of bookings and see "Notes Regarding the Use of Non-GAAP Financial Measures" related to Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Diluted Earnings Per Share later in this press release. |
Commenting on the results, Art Zeile, President and CEO of DHI Group, said:
"We continue to operate effectively and efficiently in this challenging macro-economic environment as we finished the full year with total revenue growth and a significantly improved Adjusted EBITDA margin. For the full year, our total recurring revenue increased
Commenting on 2024 guidance, Raime Leeby, CFO of DHI Group, said:
"While we saw signs of an improved bookings environment across all of our new business teams in the fourth quarter, we do not expect total bookings growth to return until the second half of the year, which we expect to result in a low single-digit percentage decline in our total revenue for the full year. From a profitability perspective, we are targeting an Adjusted EBITDA margin of
Conference Call Information
Art Zeile, President and Chief Executive Officer, and Raime Leeby, Chief Financial Officer, will host a conference call today, February 7, 2024, 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
About DHI Group, Inc.
DHI Group, Inc (NYSE: DHX) is a provider of AI-powered career marketplaces that focus on technology roles. DHI’s two brands, Dice and ClearanceJobs, enable recruiters and hiring managers to efficiently search for and connect with highly skilled technology professionals based on the skills requested. The Company’s patented algorithm manages over 100,000 unique technology skills. Additionally, our marketplaces allow tech professionals to find their ideal next career opportunity, with relevant advice and personalized insights. Learn more at www.dhigroupinc.com.
Forward-Looking Statements
This press release and oral statements made from time to time by our representatives contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include, without limitation, information concerning our possible or assumed future financial condition, liquidity and results of operations, including expectations (financial or otherwise), our strategy, plans, objectives, expectations (financial or otherwise) and intentions, growth potential, and statements regarding our 2024 financial outlook. These statements often include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, our ability to execute our tech-focused strategy, competition from existing and future competitors in the highly competitive markets in which we operate, failure to adapt our business model to keep pace with rapid changes in the recruiting and career services business, failure to maintain and develop our reputation and brand recognition, failure to increase or maintain the number of customers who purchase recruitment packages, cyclicality or downturns in the economy or industries we serve, uncertainty in respect to the regulation of data protection and data privacy, failure to attract qualified professionals to our websites or grow the number of qualified professionals who use our websites, failure to successfully identify or integrate acquisitions,
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 alternatives to, measures in accordance with generally accepted accounting principles in
Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share is a non-GAAP performance measure that management believes 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 impairments, costs related to reorganizing the Company, including severance and related costs, gains or losses on investments, restructuring charges, proceeds from settlement, 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
Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures used by management to measure operating performance. Management uses Adjusted EBITDA and Adjusted EBITDA Margin as performance measures for internal monitoring and planning, including preparation of annual budgets, analyzing investment decisions and evaluating profitability and performance comparisons between us and our competitors. The Company also uses these measures to calculate amounts of performance-based compensation under the senior management incentive bonus program. Adjusted EBITDA represents net income plus (to the extent deducted in calculating such net income) interest expense, income tax expense, depreciation and amortization, and items such as non-cash stock-based compensation, losses resulting from certain dispositions outside the ordinary course of business including prior negative operating results of those divested businesses, certain write-offs in connection with indebtedness, impairment charges with respect to long-lived assets, expenses incurred in connection with an equity offering or any other offering of securities by the Company, extraordinary or non-recurring non-cash expenses or losses, losses from equity method investments, transaction costs in connection with the credit agreement, deferred revenue written off in connection with acquisition purchase accounting adjustments, write-off of non-cash stock-based compensation expense, severance and retention costs related to dispositions and reorganizations of the Company, impairment of investment, restructuring charges and losses related to legal claims and fees that are unusual in nature or infrequent, minus (to the extent included in calculating such net income) non-cash income or gains, including income from equity method investments, interest income, business interruption insurance proceeds, and any income or gain resulting from certain dispositions outside the ordinary course of business, including prior positive operating results of those divested businesses, and gains related to legal claims that are unusual in nature or infrequent.
Adjusted EBITDA Margin is computed as Adjusted EBITDA divided by revenue.
We also consider Adjusted EBITDA and Adjusted EBITDA Margin, as defined above, to be important indicators to investors because they provide information related to our ability to provide cash flows to meet future debt service, capital expenditures, working capital requirements, and to fund future growth. We present Adjusted EBITDA and Adjusted EBITDA Margin as supplemental performance measures because we believe that these measures provide our board of directors, management and investors with additional information to measure our performance, provide comparisons from period to period by excluding potential differences caused by variations in capital structures (affecting interest expense) and tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses), and to estimate our value.
We understand that although Adjusted EBITDA and Adjusted EBITDA Margin are frequently used by securities analysts, lenders and others in their evaluation of companies, Adjusted EBITDA and Adjusted EBITDA Margin have limitations as analytical tools, and you should not consider them in isolation, or as a substitute for analysis of our liquidity or results as reported under GAAP. Some limitations are:
- Adjusted EBITDA and Adjusted EBITDA Margin do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;
- Adjusted EBITDA and Adjusted EBITDA Margin do not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA and Adjusted EBITDA Margin do not reflect interest expense, or the cash requirements necessary to service interest or principal payments on our debt;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and Adjusted EBITDA and Adjusted EBITDA Margin do not reflect any cash requirements for such replacements; and
- Other companies in our industry may calculate Adjusted EBITDA and Adjusted EBITDA Margin differently than we do, limiting their usefulness as comparative measures.
To compensate for these limitations, management evaluates our liquidity by considering the economic effect of excluded expense items independently, as well as in connection with its analysis of cash flows from operations and through the use of other financial measures, such as capital expenditure budget variances, investment spending levels and return on capital analysis.
Adjusted EBITDA and Adjusted EBITDA Margin are not measurements of our financial performance under GAAP and should not be considered as an alternative to revenue, operating income, net income, net income margin, cash provided by operating activities, or any other performance measures derived in accordance with GAAP as a measure of our profitability or liquidity.
DHI GROUP, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
|
For the three months ended
|
|
For the twelve months ended
|
|||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Revenue |
$ |
37,287 |
|
|
$ |
39,762 |
|
|
$ |
151,878 |
|
|
$ |
149,680 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses: |
|
|
|
|
|
|
|
|||||||||
Cost of revenue |
|
4,948 |
|
|
|
4,766 |
|
|
|
19,787 |
|
|
|
17,607 |
|
|
Product development |
|
4,493 |
|
|
|
4,692 |
|
|
|
17,777 |
|
|
|
17,674 |
|
|
Sales and marketing |
|
12,602 |
|
|
|
16,157 |
|
|
|
57,421 |
|
|
|
59,364 |
|
|
General and administrative |
|
7,402 |
|
|
|
8,506 |
|
|
|
31,273 |
|
|
|
34,049 |
|
|
Depreciation |
|
4,339 |
|
|
|
4,893 |
|
|
|
16,915 |
|
|
|
17,487 |
|
|
Restructuring |
|
— |
|
|
|
— |
|
|
|
2,417 |
|
|
|
— |
|
|
Total operating expenses |
|
33,784 |
|
|
|
39,014 |
|
|
|
145,590 |
|
|
|
146,181 |
|
|
Other operating income: |
|
|
|
|
|
|
|
|||||||||
Proceeds from settlement |
|
— |
|
|
|
2,061 |
|
|
|
— |
|
|
|
2,061 |
|
|
Operating income |
|
3,503 |
|
|
|
2,809 |
|
|
|
6,288 |
|
|
|
5,560 |
|
|
Income from equity method investment |
|
74 |
|
|
|
490 |
|
|
|
502 |
|
|
|
1,597 |
|
|
Gain on sale of investments |
|
— |
|
|
|
— |
|
|
|
614 |
|
|
|
320 |
|
|
Impairment of investment |
|
— |
|
|
|
— |
|
|
|
(300 |
) |
|
|
(2,300 |
) |
|
Interest expense and other |
|
(866 |
) |
|
|
(590 |
) |
|
|
(3,482 |
) |
|
|
(1,580 |
) |
|
Income before income taxes |
|
2,711 |
|
|
|
2,709 |
|
|
|
3,622 |
|
|
|
3,597 |
|
|
Income tax expense (benefit) |
|
563 |
|
|
|
358 |
|
|
|
131 |
|
|
|
(579 |
) |
|
Net income |
$ |
2,148 |
|
|
$ |
2,351 |
|
|
$ |
3,491 |
|
|
$ |
4,176 |
|
|
|
||||||||||||||||
Basic earnings per share |
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.08 |
|
|
$ |
0.09 |
|
|
Diluted earnings per share |
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.08 |
|
|
$ |
0.09 |
|
|
|
||||||||||||||||
Weighted-average basic shares outstanding |
|
43,539 |
|
|
|
43,593 |
|
|
|
43,571 |
|
|
|
44,274 |
|
|
Weighted-average diluted shares outstanding |
|
44,612 |
|
|
|
46,149 |
|
|
|
44,496 |
|
|
|
46,533 |
|
|
DHI GROUP, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
Three Months Ended
|
|
For the year ended
|
|||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
Cash flows from (used in) operating activities: |
|
|
|
|
|
|
|
|||||||||
Net income |
$ |
2,148 |
|
|
$ |
2,351 |
|
|
$ |
3,491 |
|
|
$ |
4,176 |
|
|
Adjustments to reconcile net income to net cash flows from (used in) operating activities: |
|
|
|
|
|
|
||||||||||
Depreciation |
4,339 |
|
|
4,893 |
|
|
16,915 |
|
|
17,487 |
|
|||||
Deferred income taxes |
(122 |
) |
|
(118 |
) |
|
(3,301 |
) |
|
(3,800 |
) |
|||||
Amortization of deferred financing costs |
36 |
|
|
36 |
|
|
145 |
|
|
146 |
|
|||||
Stock-based compensation |
2,194 |
|
|
2,331 |
|
|
9,916 |
|
|
9,519 |
|
|||||
Income from equity method investment |
(74 |
) |
|
(490 |
) |
|
(502 |
) |
|
(1,597 |
) |
|||||
Gain on sale of investments |
— |
|
|
— |
|
|
(614 |
) |
|
(320 |
) |
|||||
Impairment of investment |
— |
|
|
|
— |
|
|
300 |
|
|
2,300 |
|
||||
Change in accrual for unrecognized tax benefits |
(125 |
) |
|
(224 |
) |
|
263 |
|
|
(16 |
) |
|||||
Changes in operating assets and liabilities: |
|
|||||||||||||||
Accounts receivable |
(3,634 |
) |
|
|
(1,633 |
) |
|
|
(1,398 |
) |
|
|
(2,109 |
) |
||
Prepaid expenses and other assets |
|
415 |
|
|
|
(932 |
) |
|
|
(335 |
) |
|
|
(1,479 |
) |
|
Capitalized contract costs |
|
40 |
|
|
|
(955 |
) |
|
|
3,313 |
|
|
|
(545 |
) |
|
Accounts payable and accrued expenses |
|
706 |
|
|
|
3,971 |
|
|
|
(7,093 |
) |
|
|
7,778 |
|
|
Income taxes receivable/payable |
|
(328 |
) |
|
|
(347 |
) |
|
|
(255 |
) |
|
|
388 |
|
|
Deferred revenue |
|
1,127 |
|
|
|
(1,388 |
) |
|
|
(893 |
) |
|
|
4,718 |
|
|
Other, net |
|
899 |
|
|
|
(146 |
) |
|
|
1,393 |
|
|
|
(611 |
) |
|
Net cash flows from operating activities |
|
7,621 |
|
|
|
7,349 |
|
|
|
21,345 |
|
|
|
36,035 |
|
|
Cash flows from (used in) investing activities: |
|
|
|
|
|
|
|
|||||||||
Cash received from sale of investments |
|
— |
|
|
|
— |
|
|
|
4,941 |
|
|
|
320 |
|
|
Purchases of fixed assets |
|
(5,264 |
) |
|
|
(4,583 |
) |
|
|
(20,252 |
) |
|
|
(17,976 |
) |
|
Net cash flows used in investing activities |
|
(5,264 |
) |
|
|
(4,583 |
) |
|
|
(15,311 |
) |
|
|
(17,656 |
) |
|
Cash flows from (used in) financing activities: |
|
|
|
|
|
|
|
|||||||||
Payments on long-term debt |
|
(2,000 |
) |
|
|
(3,000 |
) |
|
|
(25,000 |
) |
|
|
(11,000 |
) |
|
Proceeds from long-term debt |
|
— |
|
|
|
3,000 |
|
|
|
33,000 |
|
|
|
18,000 |
|
|
Financing costs paid |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(515 |
) |
|
Payments under stock repurchase plan |
|
— |
|
|
|
(3,567 |
) |
|
|
(6,896 |
) |
|
|
(18,530 |
) |
|
Purchase of treasury stock related to vested restricted and performance stock units |
|
(26 |
) |
|
|
(204 |
) |
|
|
(6,237 |
) |
|
|
(5,155 |
) |
|
Proceeds from issuance of common stock through ESPP |
|
151 |
|
|
|
163 |
|
|
|
299 |
|
|
|
287 |
|
|
Net cash flows used in financing activities |
|
(1,875 |
) |
|
|
(3,608 |
) |
|
|
(4,834 |
) |
|
|
(16,913 |
) |
|
Net change in cash for the period |
|
482 |
|
|
|
(842 |
) |
|
|
1,200 |
|
|
|
1,466 |
|
|
Cash, beginning of period |
|
3,724 |
|
|
|
3,848 |
|
|
|
3,006 |
|
|
|
1,540 |
|
|
Cash, end of period |
$ |
4,206 |
|
|
$ |
3,006 |
|
|
$ |
4,206 |
|
|
$ |
3,006 |
|
|
DHI GROUP, INC. |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(Unaudited) |
||||||
(in thousands) |
||||||
|
|
|
||||
ASSETS |
December 31, 2023 |
December 31, 2022 |
||||
Current assets |
|
|
||||
Cash |
$ |
4,206 |
$ |
3,006 |
||
Accounts receivable, net |
|
22,225 |
|
20,494 |
||
Income taxes receivable |
|
221 |
|
— |
||
Prepaid and other current assets |
|
4,237 |
|
4,294 |
||
Total current assets |
|
30,889 |
|
27,794 |
||
Fixed assets, net |
|
25,272 |
|
21,252 |
||
Capitalized contract costs |
|
6,364 |
|
9,677 |
||
Operating lease right-of-use assets |
|
4,759 |
|
6,581 |
||
Investments |
|
1,918 |
|
5,646 |
||
Acquired intangible assets |
|
23,800 |
|
23,800 |
||
Goodwill |
|
128,100 |
|
128,100 |
||
Other assets |
|
4,100 |
|
3,854 |
||
Total assets |
$ |
225,202 |
$ |
226,704 |
||
|
|
|
||||
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
||||
Current liabilities |
|
|
||||
Accounts payable and accrued expenses |
$ |
17,408 |
$ |
23,818 |
||
Deferred revenue |
|
49,463 |
|
50,121 |
||
Income taxes payable |
|
— |
|
34 |
||
Operating lease liabilities |
|
2,006 |
|
105 |
||
Total current liabilities |
|
68,877 |
|
74,078 |
||
Deferred revenue |
|
508 |
|
743 |
||
Operating lease liabilities |
|
6,543 |
|
8,428 |
||
Long-term debt, net |
|
38,000 |
|
30,000 |
||
Deferred income taxes |
|
2,214 |
|
5,515 |
||
Accrual for unrecognized tax benefits |
|
1,032 |
|
769 |
||
Other long-term liabilities |
|
486 |
|
932 |
||
Total liabilities |
|
117,660 |
|
120,465 |
||
Total stockholders’ equity |
|
107,542 |
|
106,239 |
||
Total liabilities and stockholders’ equity |
$ |
225,202 |
$ |
226,704 |
||
|
|
|
||||
Supplemental Information and Non-GAAP Reconciliations
On the pages that follow, we have provided certain supplemental information that we believe will assist the reader in assessing our business operations and performance, including certain non-GAAP financial information and required reconciliations to the most directly comparable GAAP measure. A statement of operations and statement of cash flows for the three and twelve month periods ended December 31, 2023 and 2022 and balance sheets as of December 31, 2023 and December 31, 2022 are provided elsewhere in this press release.
DHI GROUP, INC. |
|||||||||||||||
NON-GAAP & SUPPLEMENTAL DATA |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(in thousands, except per share and customer data) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||
|
|
Revenue |
|||||||||||||
|
|
Q4 2023 |
|
Q4 2022 |
|
$ Change |
|
% Change |
|||||||
Dice1 |
|
$ |
24,632 |
|
|
$ |
28,158 |
|
|
$ |
(3,526 |
) |
|
(13 |
)% |
ClearanceJobs |
|
|
12,655 |
|
|
|
11,604 |
|
|
|
1,051 |
|
|
9 |
% |
Total Revenue |
|
$ |
37,287 |
|
|
$ |
39,762 |
|
|
$ |
(2,475 |
) |
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
Net income (loss)2 |
|
$ |
2,148 |
|
|
$ |
2,351 |
|
|
$ |
(203 |
) |
|
(9 |
)% |
Net income (loss) margin3 |
|
|
6 |
% |
|
|
6 |
% |
|
n.m. |
|
n.m. |
|||
Diluted earnings (loss) per share2 |
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
— |
|
|
— |
% |
Adjusted diluted earnings per share5 |
|
$ |
0.04 |
|
|
$ |
0.01 |
|
|
$ |
— |
|
|
300 |
% |
Adjusted EBITDA5 |
|
$ |
10,063 |
|
|
$ |
8,098 |
|
|
$ |
1,965 |
|
|
24 |
% |
Adjusted EBITDA margin5 |
|
|
27 |
% |
|
|
20 |
% |
|
n.m. |
|
n.m. |
|||
|
|
|
|
|
|
|
|
|
|||||||
|
|
Revenue |
|||||||||||||
|
|
FY 2023 |
|
FY 2022 |
|
$ Change |
|
% Change |
|||||||
Dice1 |
|
$ |
102,584 |
|
|
$ |
106,957 |
|
|
$ |
(4,373 |
) |
|
(4 |
)% |
ClearanceJobs |
|
|
49,294 |
|
|
|
42,723 |
|
|
|
6,571 |
|
|
15 |
% |
Total Revenue |
|
$ |
151,878 |
|
|
$ |
149,680 |
|
|
$ |
2,198 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Net income4 |
|
$ |
3,491 |
|
|
$ |
4,176 |
|
|
$ |
(685 |
) |
|
(16 |
)% |
Net income margin3 |
|
|
2 |
% |
|
|
3 |
% |
|
n.m. |
|
n.m. |
|||
Diluted earnings per share4 |
|
$ |
0.08 |
|
|
$ |
0.09 |
|
|
$ |
— |
|
|
(11 |
)% |
Adjusted diluted earnings per share5 |
|
$ |
0.10 |
|
|
$ |
0.05 |
|
|
$ |
— |
|
|
100 |
% |
Adjusted EBITDA5 |
|
$ |
36,254 |
|
|
$ |
30,950 |
|
|
$ |
5,304 |
|
|
17 |
% |
Adjusted EBITDA margin5 |
|
|
24 |
% |
|
|
21 |
% |
|
n.m. |
|
n.m. |
|||
(1) Includes Dice and Career Events |
(2) For the three months ended December 31, 2023, net income and diluted earnings per share includes the net positive impact of discrete tax items of |
(3) Net income margin and Adjusted EBITDA Margin are calculated by dividing the respective measure by that period's revenue. |
(4) For the year ended December 31, 2023, net income and diluted earnings per share includes the net negative impact of impairment of investment, severance and related costs, gain on investment and restructuring, all net of tax, and discrete tax items of |
(5) See "Notes Regarding the Use of Non-GAAP Financial Measures" elsewhere in this press release. |
| DHI GROUP, INC. | |||||||||||||
NON-GAAP & SUPPLEMENTAL DATA (CONTINUED) |
|||||||||||||
(Unaudited) |
|||||||||||||
(in thousands, except per share and customer data) |
|||||||||||||
|
Bookings1 |
||||||||||||
|
Q4 2023 |
|
Q4 2022 |
|
$ Change |
|
% Change |
||||||
Dice |
$ |
22,194 |
|
$ |
25,674 |
|
$ |
(3,480 |
) |
|
(14 |
)% |
|
ClearanceJobs |
|
13,887 |
|
|
12,067 |
|
|
1,820 |
|
|
15 |
% |
|
Total Bookings |
$ |
36,081 |
|
$ |
37,741 |
|
$ |
(1,660 |
) |
|
(4 |
)% | |
|
|
|
|
|
|
|
|
||||||
|
FY 2023 |
|
FY 2022 |
|
$ Change |
|
% Change |
||||||
Dice |
$ |
100,766 |
|
$ |
113,120 |
|
$ |
(12,354 |
) |
|
(11 |
)% |
|
ClearanceJobs |
|
52,385 |
|
|
47,125 |
|
|
5,260 |
|
|
11 |
% |
|
Total Bookings |
$ |
153,151 |
|
$ |
160,245 |
|
$ |
(7,094 |
) |
|
(4 |
)% |
|
|
|
|
|
|
|
|
|||||||
(1) Bookings represent the value of all contractually committed services in which the contract start date is during the period and will be recognized as revenue within 12 months of the contract start date. For contracts that extend beyond 12 months, the value of those contracts beyond 12 months is recognized as bookings on each annual anniversary of each contract start date valued as the amount of revenue that will be recognized within 12 months of the respective anniversary date. |
Average Annual Revenue per Recruitment Package Customer1 |
||||||||||||
|
Q4 2023 |
|
Q4 2022 |
|
$ Change |
|
% Change |
|||||
Dice |
$ |
15,788 |
|
$ |
15,384 |
|
$ |
404 |
|
3 |
% |
|
ClearanceJobs |
$ |
21,872 |
|
$ |
19,872 |
|
$ |
2,000 |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|||||
|
FY 2023 |
|
FY 2022 |
|
$ Change |
|
% Change |
|||||
Dice |
$ |
15,631 |
|
$ |
14,664 |
|
$ |
967 |
|
7 |
% |
|
ClearanceJobs |
$ |
21,164 |
|
$ |
19,080 |
|
$ |
2,084 |
|
11 |
% |
|
(1) Calculated by dividing recruitment package customer revenue by the daily average count of recruitment package customers during each month, adjusted to reflect a 30-day month. The simple average of each month is used to derive the amount for each period and then annualized to reflect 12 months. |
Renewal Rates |
||||||||||||
Renewal Rate on Revenue: |
Q4 2023 |
|
Q4 2022 |
|
FY 2023 |
|
FY 2022 |
|||||
Dice |
78 |
% |
|
94 |
% |
|
85 |
% |
|
99 |
% |
|
ClearanceJobs |
96 |
% |
|
98 |
% |
|
95 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|||||
Renewal Rate on Count: |
|
|
|
|
|
|
|
|||||
Dice |
71 |
% |
|
83 |
% |
|
77 |
% |
|
85 |
% |
|
ClearanceJobs |
78 |
% |
|
80 |
% |
|
81 |
% |
|
84 |
% |
|
|
Retention Rates1 |
|||||||||||
|
Q4 2023 |
|
Q4 2022 |
FY 2023 |
|
FY 2022 |
||||||
Dice |
97 |
% |
|
107 |
% |
|
101 |
% |
|
110 |
% |
|
ClearanceJobs |
110 |
% |
|
117 |
% |
|
111 |
% |
|
114 |
% |
|
|
|
|
|
|
|
|
|
|||||
(1) For customers that renewed their annual recruitment packages during the period, the retention rate represents the total contract value renewed, relative to the previous total contract value. |
DHI GROUP, INC. |
||||||||||
NON-GAAP & SUPPLEMENTAL DATA (CONTINUED) |
||||||||||
(Unaudited) |
||||||||||
(in thousands, except per share and customer data) |
||||||||||
|
Recruitment Package Customers |
|||||||||
|
December 31, 2023 |
December 31, 2022 |
Change |
% Change |
||||||
Dice |
5,492 |
6,311 |
(819 |
) |
(13 |
)% |
||||
ClearanceJobs |
2,055 |
2,064 |
(9 |
) |
— |
% |
||||
|
Deferred Revenue and Backlog1 |
||||||||||||
|
December 31, 2023 |
|
December 31, 2022 |
|
$ Change |
|
% Change |
||||||
Deferred Revenue |
$ |
49,971 |
|
$ |
50,864 |
|
$ |
(893 |
) |
|
(2 |
)% |
|
Contractual commitments not invoiced |
|
58,126 |
|
|
66,391 |
|
|
(8,265 |
) |
|
(12 |
)% |
|
Backlog |
$ |
108,097 |
|
$ |
117,255 |
|
$ |
(9,158 |
) |
|
(8 |
)% |
|
(1) Backlog consists of deferred revenue plus customer contractual commitments not invoiced representing the value of future services to be rendered under committed contracts. |
|
Adjusted Diluted Earnings per Share |
|||||||||||||||
|
Q4 2023 |
|
Q4 2022 |
|
FY 2023 |
|
FY 2022 |
|||||||||
Reconciliation of Diluted Earnings per Share to Adjusted Diluted Earnings per Share: |
|
|
|
|
|
|
|
|||||||||
Diluted earning (loss) per share |
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.08 |
|
|
$ |
0.09 |
|
|
Impairment of investment, net of tax |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
Severance and related costs, net of tax |
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.01 |
|
|
Proceeds from settlement, net of tax |
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
Gain on investments |
|
— |
|
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
|
Restructuring |
|
— |
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
|
Discrete tax items |
|
(0.01 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
(0.03 |
) |
|
Other1 |
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
Adjusted diluted earnings per share |
$ |
0.04 |
|
|
$ |
0.01 |
|
|
$ |
0.10 |
|
|
$ |
0.05 |
|
|
Weighted average shares- diluted and adjusted diluted earnings per share |
|
44,612 |
|
|
|
46,149 |
|
|
|
44,496 |
|
|
|
46,533 |
|
|
(1) Adjusts, as applicable, for the share impact of common stock equivalents, where dilutive. |
| DHI GROUP, INC. | ||||||||||||||||
NON-GAAP & SUPPLEMENTAL DATA (CONTINUED) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(in thousands, except per share and customer data) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
|
Adjusted EBITDA Reconciliations |
|||||||||||||||
|
Q4 2023 |
Q4 2022 |
FY 2023 |
FY 2022 |
||||||||||||
Reconciliation of Net Income to Adjusted EBITDA: |
|
|
|
|
||||||||||||
Net income |
$ |
2,148 |
|
$ |
2,351 |
|
$ |
3,491 |
|
$ |
4,176 |
|
||||
Interest expense |
|
866 |
|
|
590 |
|
|
3,482 |
|
|
1,580 |
|
||||
Income tax expense (benefit) |
|
563 |
|
|
358 |
|
|
131 |
|
|
(579 |
) |
||||
Depreciation |
|
4,339 |
|
|
4,893 |
|
|
16,915 |
|
|
17,487 |
|
||||
Non-cash stock-based compensation |
|
2,194 |
|
|
2,331 |
|
|
9,467 |
|
|
9,519 |
|
||||
Income from equity method investment |
|
(74 |
) |
|
(490 |
) |
|
(502 |
) |
|
(1,597 |
) |
||||
Proceeds from settlement |
|
— |
|
|
(2,061 |
) |
|
— |
|
|
(2,061 |
) |
||||
Gain on sale of investments |
|
— |
|
|
— |
|
|
(614 |
) |
|
(320 |
) |
||||
Impairment of investment |
|
— |
|
|
— |
|
|
300 |
|
|
2,300 |
|
||||
Severance and related costs |
|
27 |
|
|
126 |
|
|
1,167 |
|
|
445 |
|
||||
Restructuring |
|
— |
|
|
— |
|
|
2,417 |
|
|
— |
|
||||
Adjusted EBITDA |
$ |
10,063 |
|
$ |
8,098 |
|
$ |
36,254 |
|
$ |
30,950 |
|
||||
|
|
|
|
|
||||||||||||
Reconciliation of Operating Cash Flows to Adjusted EBITDA: |
|
|
|
|
||||||||||||
Net cash provided by operating activities |
$ |
7,621 |
|
$ |
7,349 |
|
$ |
21,345 |
|
$ |
36,035 |
|
||||
Interest expense |
|
866 |
|
|
590 |
|
|
3,482 |
|
|
1,580 |
|
||||
Amortization of deferred financing costs |
|
(36 |
) |
|
(36 |
) |
|
(145 |
) |
|
(146 |
) |
||||
Income tax expense (benefit) |
|
563 |
|
|
358 |
|
|
131 |
|
|
(579 |
) |
||||
Deferred income taxes |
|
122 |
|
|
118 |
|
|
3,301 |
|
|
3,800 |
|
||||
Change in accrual for unrecognized tax benefits |
|
125 |
|
|
224 |
|
|
(263 |
) |
|
16 |
|
||||
Change in accounts receivable |
|
3,634 |
|
|
1,633 |
|
|
1,398 |
|
|
2,109 |
|
||||
Change in deferred revenue |
|
(1,127 |
) |
|
1,388 |
|
|
893 |
|
|
(4,718 |
) |
||||
Severance and related costs |
|
27 |
|
|
126 |
|
|
1,167 |
|
|
445 |
|
||||
Restructuring |
|
— |
|
|
— |
|
|
2,417 |
|
|
— |
|
||||
Changes in working capital and other |
|
(1,732 |
) |
|
(3,652 |
) |
|
2,528 |
|
|
(7,592 |
) |
||||
Adjusted EBITDA |
$ |
10,063 |
|
$ |
8,098 |
|
$ |
36,254 |
|
$ |
30,950 |
|
||||
Guidance
Earlier in this press release, the Company provided guidance for Adjusted EBITDA margin, which is a non-GAAP financial measure. We are unable to reconcile expected Adjusted EBITDA margin to its nearest GAAP measure without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of items such as non-cash stock-based compensation, impairments, income tax expense, gains or losses from equity method investments, severance and retention costs, restructuring charges and legal claims and fees. By their very nature, these items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results. Therefore, we are unable to provide a reconciliation of this non-GAAP financial measure.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240207771064/en/
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
Source: DHI Group, Inc.
FAQ
What was the total revenue for DHI Group, Inc. in the fourth quarter of 2023?
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What was the total revenue for DHI Group, Inc. for the full year 2023?
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What is the 2024 guidance for DHI Group, Inc.?
