DHI Group, Inc. Q4 FY2025 earnings call

• DHI's mission is to help employers find tech professionals through its brands ClearanceJobs and Dice. - ClearanceJobs is the leading marketplace for professionals with active U.S. security clearances, serving ~1,800 customers and having 1.9 million candidates, with margins over 40%. Bookings improved in Q4 following leadership changes. - Dice focuses on tech skills, with 7.7 million profiles and 55% of job postings requiring AI skills, but challenged by the commercial hiring environment. - Acquired Agile ATS, which doubled revenue in 6 months. Rolled out the Dice employer experience platform for self-service and modernization.

ClearanceJobs: Revenue was $13.9 million, up 1% year-over-year and flat sequentially. Bookings were $14.6 million, up 3% year-over-year. Approximately 90% of revenue is recurring. Adjusted EBITDA was $6 million, with a margin of 43%. Dice: Revenue was $17.4 million, down 17% year-over-year and down 4% sequentially. Bookings were $16.6 million, down 11% year-over-year. Approximately 90% of revenue is recurring. Adjusted EBITDA was $5.2 million, with a margin of 30%.

• Expect DHI revenue of $118 to $122 million for the full year and $28 million to $30 million for the first quarter. - ClearanceJobs revenue is expected to be $56 to $58 million for the full year and $13 million to $14 million for the first quarter. - Dice revenue is expected to be $62 million to $64 million for the full year and $15 million to $16 million for the first quarter. - Target full-year adjusted EBITDA margin for DHI is 25%, with 40% for ClearanceJobs and 22% for Dice.

• Factors that could cause forward-looking statements to differ from actual results include market uncertainties, defense budget impacts, tech hiring environment, and risks discussed in SEC filings.

Q: About ClearanceJobs bookings trajectory and defense spending tailwinds.

A: Art Zeile mentions new leader, defense budget as tailwind, larger customers renewing at elevated rates.

Q: About Dice and AI-related job postings.

A: Art Zeile talks about AI demand signs, but commercial activity still subdued.

Q: About Dice margin compression.

A: Greg Schippers says margin compression due to revenue decline from bookings challenges.

Q: About ClearanceJobs premium subscription.

A: Art Zeile explains features like showing who viewed profile, matching scores, profile boosting.

Q: About ClearanceJobs sales personnel changes.

A: Art Zeile talks about new president and VP of sales, improvement in bookings.

Q: About ClearanceJobs bookings growth acceleration.

A: Greg Schippers expects growth to continue as defense budget moves forward.

Q: About Dice revenue percentage from staffing.

A: Art Zeile says approximately 80% from tech staffing firms.

Q: About ClearanceJobs renewal trends and Agile ATS contribution.

A: Art Zeile talks about strong renewals for ClearanceJobs and expansion of Agile ATS sales team.