DHI Group (DHX) Q4 2020 earnings summary

Executive summary

• FY 2020 revenue was $137M; GAAP net loss was $30M, including $37.9M of non-cash impairment and other charges, net of tax, and discrete tax items. Adjusted EBITDA was $30M.

• Q4 revenue declined 12% YoY to $33.2M; adjusted EBITDA was $7.0M, with a 21% margin.

• The business model was more than 90% subscription-based, with a 70% revenue renewal rate and 65% of annual contracts paid upfront; Dice figures are based on trailing 12 months.

Financial highlights

• Q4 net income was $2.0M versus $3.5M YoY; diluted EPS was $0.04 versus $0.07, and adjusted diluted EPS was $0.03 versus $0.06.

• FY adjusted diluted EPS was $0.16 versus $0.28 in 2019; diluted loss per share was $0.62 versus diluted EPS of $0.24.

• Q4 operating cash flow was $4.2M versus $3.9M YoY; FY operating cash flow was $18.7M versus $22.9M in 2019.

Outlook and guidance

• Expected adjusted EBITDA margin in the 20% range for Q1 2021.

• Transformation priorities included expanding commercial accounts and marketing channels, strengthening sales and marketing leadership, and engaging government accounts through ClearanceJobs.