DHI Group (DHX) Planet MicroCap Showcase: VEGAS 2025 summary

Financial performance and strategy

• Ended 2024 with net debt of $28 million and leverage below 1x; $2 million in share repurchases related to employee grants.

• Bookings and revenue have grown at a 6% CAGR since 2020, with over 90% recurring revenue.

• Adjusted EBITDA margin expanded to 25% in 2024 after $20 million in cost reductions from restructurings.

• Free cash flow targeted at 10% of revenue; new $5 million buyback program announced through February 2026.

• Operating cash flows ranged from $20 million to $36 million over the past five years.

Business model and market positioning

• Operates two tech-focused recruiting platforms, Dice and ClearanceJobs, serving both clients and candidates.

• Over 8 million tech profiles, representing about two-thirds of US skilled technologists.

• Over 90% of revenue is recurring, driven by subscription contracts with auto-renewal and price escalators.

• Platforms specialize in matching based on a taxonomy of 100,000+ tech skills, differentiating from generalist sites.

• Dice and ClearanceJobs serve both high-profile and less-visible employers, with significant untapped market opportunity.

Industry trends and growth outlook

• US tech workforce has grown ~3% annually, with long-term demand driven by digital transformation.

• Tech workforce projected to grow 18% from 2024–2034, twice the overall employment rate.

• Demand for AI, data science, cybersecurity, and software development skills is fueling growth.

• Tech professionals earn an average salary of $111,000, more than double the US average.

• McKinsey and other economists predict double-digit tech hiring growth over the next decade.