DHI Group (DHX) 16th Annual LD Micro Invitational Conference summary

Business overview and market positioning

• Operates two leading U.S. tech talent platforms, Dice and ClearanceJobs, serving both recruiters and candidates, with revenue primarily from recruiters.

• Dice focuses on general tech professionals, while ClearanceJobs targets candidates with government security clearances, a niche with minimal competition.

• Platforms collectively reach 9 million tech professionals, representing 70%-80% of the U.S. tech workforce.

• Value proposition centers on specialized tech talent, with average tech salaries significantly higher than the U.S. average.

• Recurring revenue model provides strong visibility, with 90%+ of revenue recurring and high forward booking rates.

Industry trends and growth drivers

• U.S. tech job postings rose from 220,000 to over 270,000 between January and April, a 34% year-over-year increase.

• 69% of new tech jobs require AI skills, reflecting a surge in AI-driven demand.

• Tech workforce projected to grow 15% over the next decade, with high demand for data, cybersecurity, and AI roles.

• ClearanceJobs benefits from rising defense budgets and a stable, less competitive market.

• Dice is rebounding from a tech hiring recession, with leading indicators pointing to renewed growth.

Financial performance and strategy

• Bookings declined 1% since 2021, but revenue grew at a 2% CAGR; Dice was most affected by higher interest rates and tech hiring slowdown.

• Three restructurings improved margins, with adjusted EBITDA margin reaching 27% in Q1.

• Free cash flow margins exceed 10%, supported by recurring revenue and disciplined cash management.

• Debt remains low at $33 million (less than 1x EBITDA), with ongoing share buybacks reducing dilution by 9% since 2020.

• $10 million share buyback program underway, with 4% already executed.