DHI Group, Inc. (NYSE: DHX) (“DHI” or the “Company”) today
announced financial results for the second quarter ended June 30,
2024.
Second Quarter 2024 Financial Highlights(1)
- Total revenue was $35.8 million, down 7% year over year.
- ClearanceJobs revenue was $13.3 million, up 8% year over
year.
- Dice revenue was $22.6 million, down 14% year over year.
- Total bookings were $30.0 million, down 7% year over year.
- ClearanceJobs bookings were $11.4 million, up 9% year over
year.
- Dice bookings were $18.6 million, down 15% year over year.
- Net income was $0.9 million, or $0.02 per diluted share, a net
income margin of 3%, compared to a net loss of $0.1 million, or
$0.00 per diluted share, a net loss margin of 0%, in the year-ago
quarter.
- Non-GAAP earnings per share was flat compared to the prior year
quarter at $0.06 per diluted share.
- Adjusted EBITDA was $9.0 million, up 3% year over year, and
Adjusted EBITDA Margin was 25%, up from 23% in the year-ago
quarter.
- Cash flow from operations was $9.1 million, up 12% from $8.1
million in the year-ago quarter.
- Cash was $3.0 million at quarter end compared to $2.7 million
in the year ago quarter and total debt was $35.0 million at quarter
end, down $8.0 million from the year-ago quarter.
(1) See definition of bookings and see
"Notes Regarding the Use of Non-GAAP Financial Measures" related to
Adjusted EBITDA, Adjusted EBITDA Margin, and Non-GAAP Earnings Per
Share, including the revised title and definition of Non-GAAP
Earnings Per Share, later in this press release
Commenting on the results, Art Zeile, President and CEO of
DHI Group, said:
"Although our bookings are not where we hoped they would be,
throughout the quarter, we continued to see a slow rise in new tech
job postings, with May's total of 209,000 reported by CompTIA
marking the highest since June 2023. While we haven't yet returned
to the pre-pandemic average of 300,000 new job postings per month,
there are signs of improvement as more employers are coming off the
sidelines. AI initiatives are increasingly driving demand for tech
professionals, particularly with consulting firms being the initial
focus for corporations. Notably, IBM recently announced that it had
already booked $1 billion in AI-related business so far this year,
and McKinsey & Company said it anticipates that at least 40% of
its projects this year will involve AI. We view this as an early
indication of growing AI demand as companies test initiatives with
consulting firms before launching broader projects. As businesses
ramp up their investment in technology, we believe our
subscription-based offerings, which include 8.5 million
technologist profiles and our proprietary tech skills mapping and
search algorithms, will be essential tools for employers looking to
find the ideal candidates for their open tech job postings."
Updating 2024 full-year guidance, Raime Leeby, CFO of DHI
Group, commented:
"While we expect our bookings performance in the second half of
the year to continue to improve, many employers continue to be very
budget-conscious during this uncertain economic environment. As a
result we do not expect our total bookings to return to growth
until next year. We expect our third quarter bookings to be down
between 4% to 6% year over year, and we expect our revenue for the
third quarter to be down 4% to 6% year over year, with total
revenue for the full year declining in the mid single-digit
percentage range. From a profitability perspective, we continue to
target an Adjusted EBITDA margin of 24% for the full year. We
remain focused on driving long-term, sustainable revenue growth and
are well positioned from a customer acquisition perspective to
return to growth as tech hiring returns to normal levels."
Conference Call Information
Art Zeile, President and Chief Executive Officer, and Raime
Leeby, Chief Financial Officer, will host a conference call today,
August 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 U.S.)
or 412-380-7407 (outside the U.S.). Please ask to be placed into
the DHI Group, Inc. call. A live webcast of the call will
simultaneously be available through the Investor Relations section
of the Company’s website, https://www.dhigroupinc.com, and
available for replay after the call ends.
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, 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, U.S. and foreign government regulation of the
Internet and taxation, our ability to borrow funds under our
revolving credit facility or refinance our indebtedness and
restrictions on our current and future operations under such
indebtedness. These factors and others are discussed in more detail
in the Company’s filings with the Securities and Exchange
Commission, all of which are available on the Investors page of our
website at www.dhigroupinc.com, including the Company’s most
recently filed reports on Form 10-K and Form 10-Q and subsequent
filings under the headings “Risk Factors,” “Forward-Looking
Statements” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations.” You should keep in mind that
any forward-looking statement made by the Company or its
representatives herein, or elsewhere, speaks only as of the date on
which it is made. New risks and uncertainties come up from time to
time, and it is impossible to predict these events or how they may
affect us. We have no obligation to update any forward-looking
statements after the date hereof, except as required by applicable
federal securities laws.
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 the
United States (“GAAP”) and may be different from similarly titled
non-GAAP measures reported by other companies. The Company believes
that its presentation of non-GAAP measures, such as Adjusted
EBITDA, Adjusted EBITDA Margin, and non-GAAP Earnings Per Share
provides useful information to management and investors regarding
certain financial and business trends relating to the Company's
financial condition and results of operations. In addition, the
Company’s management uses these measures for reviewing the
financial results of the Company and for budgeting and planning
purposes. Non-GAAP results exclude the impact of items that
management believes affect the comparability or underlying business
trends in our condensed consolidated financial statements in the
periods presented. The non-GAAP measures apply to consolidated
results or other measures as shown within this document. The
Company has provided required reconciliations to the most
comparable GAAP measures elsewhere in the document.
Non-GAAP Earnings Per Share (Previously titled Adjusted
Diluted Earnings Per Share)
Non-GAAP 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. Non-GAAP Earnings Per Share is computed as
diluted earnings per share plus or minus the impacts of certain
non-cash and other items, including non-cash stock-based
compensation, impairments, costs related to reorganizing the
Company, including severance and related costs, gains or losses on
investments, restructuring charges, and discrete tax items.
Non-GAAP 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.
The Company revised its definition of non-GAAP Earnings Per
Share beginning with the first quarter of 2024 to exclude the
impact of non-cash stock-based compensation in an effort to provide
a more transparent and comparable view of its financial
performance. Accordingly, all prior periods presented have been
recast to reflect the current definition.
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,
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 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
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Revenue
$
35,833
$
38,538
$
71,858
$
77,158
Operating expenses:
Cost of revenue
5,200
4,956
10,077
9,868
Product development
4,729
4,158
9,527
8,852
Sales and marketing
12,019
14,723
24,717
30,783
General and administrative
7,296
8,453
14,523
16,661
Depreciation
4,586
4,162
9,042
8,335
Restructuring
—
2,115
—
2,115
Total operating expenses
33,830
38,567
67,886
76,614
Operating income (loss)
2,003
(29
)
3,972
544
Income from equity method investment
168
104
302
275
Impairment of investment
—
—
(400
)
—
Interest expense and other
(845
)
(879
)
(1,791
)
(1,677
)
Income (loss) before income taxes
1,326
(804
)
2,083
(858
)
Income tax expense (benefit)
383
(677
)
2,652
(1,191
)
Net income (loss)
$
943
$
(127
)
$
(569
)
$
333
Basic earnings (loss) per share
$
0.02
$
—
$
(0.01
)
$
0.01
Diluted earnings (loss) per share
$
0.02
$
—
$
(0.01
)
$
0.01
Weighted-average basic shares
outstanding
44,569
43,460
44,386
43,672
Weighted-average diluted shares
outstanding
45,037
43,460
44,386
44,682
DHI GROUP, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Cash flows from (used in) operating
activities:
Net income (loss)
$
943
$
(127
)
$
(569
)
$
333
Adjustments to reconcile net income (loss)
to net cash flows from (used in) operating activities:
Depreciation
4,586
4,162
9,042
8,335
Deferred income taxes
(930
)
(1,227
)
50
(2,075
)
Amortization of deferred financing
costs
36
36
72
72
Stock-based compensation
2,160
2,667
4,304
5,554
Income from equity method investment
(168
)
(104
)
(302
)
(275
)
Impairment of investment
—
—
400
—
Change in accrual for unrecognized tax
benefits
32
243
113
303
Changes in operating assets and
liabilities:
Accounts receivable
9,490
5,990
(45
)
1,837
Prepaid expenses and other assets
(640
)
50
581
329
Capitalized contract costs
219
1,642
(714
)
2,325
Accounts payable and accrued expenses
(2,216
)
1,825
(4,248
)
(9,557
)
Income taxes receivable/payable
(1,424
)
(1,478
)
(139
)
(1,231
)
Deferred revenue
(3,447
)
(5,411
)
2,297
2,570
Other, net
422
(202
)
308
(443
)
Net cash flows from operating
activities
9,063
8,066
11,150
8,077
Cash flows used in investing
activities:
Purchases of fixed assets
(3,471
)
(4,388
)
(7,913
)
(9,221
)
Net cash flows used in investing
activities
(3,471
)
(4,388
)
(7,913
)
(9,221
)
Cash flows from (used in) financing
activities:
Payments on long-term debt
(7,000
)
(9,000
)
(16,000
)
(12,000
)
Proceeds from long-term debt
1,000
6,000
13,000
25,000
Payments under stock repurchase plan
—
(3,375
)
—
(6,896
)
Purchase of treasury stock related to
vested restricted and performance stock units
(22
)
(95
)
(1,633
)
(5,390
)
Proceeds from issuance of common stock
through ESPP
145
148
145
148
Net cash flows from (used in) financing
activities
(5,877
)
(6,322
)
(4,488
)
862
Net change in cash for the period
(285
)
(2,644
)
(1,251
)
(282
)
Cash, beginning of period
3,240
5,368
4,206
3,006
Cash, end of period
$
2,955
$
2,724
$
2,955
$
2,724
DHI GROUP, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(in thousands)
ASSETS
June 30, 2024
December 31, 2023
Current assets
Cash
$
2,955
$
4,206
Accounts receivable, net
22,269
22,225
Income taxes receivable
360
221
Prepaid and other current assets
3,746
4,237
Total current assets
29,330
30,889
Fixed assets, net
23,168
25,272
Capitalized contract costs
7,078
6,364
Operating lease right-of-use assets
7,098
4,759
Investments
1,873
1,918
Acquired intangible assets
23,800
23,800
Goodwill
128,100
128,100
Other assets
3,938
4,100
Total assets
$
224,385
$
225,202
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable and accrued expenses
$
12,205
$
17,408
Deferred revenue
51,709
49,463
Operating lease liabilities
1,715
2,006
Total current liabilities
65,629
68,877
Deferred revenue
559
508
Operating lease liabilities
9,533
6,543
Long-term debt, net
35,000
38,000
Deferred income taxes
2,264
2,214
Accrual for unrecognized tax benefits
1,145
1,032
Other long-term liabilities
432
486
Total liabilities
114,562
117,660
Total stockholders’ equity
109,823
107,542
Total liabilities and stockholders’
equity
$
224,385
$
225,202
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 six month periods ended
June 30, 2024 and 2023 and balance sheets as of June 30, 2024 and
December 31, 2023 are provided elsewhere in this press release.
DHI GROUP, INC.
NON-GAAP & SUPPLEMENTAL
DATA
(Unaudited)
(in thousands, except per
share and customer data)
Revenue
Q2 2024
Q2 2023
$ Change
% Change
ClearanceJobs
$
13,277
$
12,266
$
1,011
8
%
Dice1
22,556
26,272
(3,716
)
(14
)%
Total Revenue
$
35,833
$
38,538
$
(2,705
)
(7
)%
Net income (loss)2
$
943
$
(127
)
$
1,070
(843
)%
Net income (loss) margin3
3
%
—
%
n.m.
n.m.
Diluted earnings (loss) per
share2
$
0.02
$
—
$
0.02
—
%
Non-GAAP earnings per share5
$
0.06
$
0.06
$
—
—
%
Adjusted EBITDA5
$
8,972
$
8,745
$
227
3
%
Adjusted EBITDA margin5
25
%
23
%
n.m.
n.m.
Revenue
YTD 2024
YTD 2023
$ Change
% Change
ClearanceJobs
$
26,123
$
23,976
$
2,147
9
%
Dice1
45,735
53,182
(7,447
)
(14
)%
Total Revenue
$
71,858
$
77,158
$
(5,300
)
(7
)%
Net income (loss)4
$
(569
)
$
333
$
(902
)
(271
)%
Net income (loss) margin3
(1
)%
—
%
n.m.
n.m.
Diluted earnings (loss) per
share4
$
(0.01
)
$
0.01
$
—
(200
)%
Non-GAAP earnings per share5
$
0.12
$
0.12
$
—
—
%
Adjusted EBITDA5
$
17,541
$
16,799
$
742
4
%
Adjusted EBITDA margin5
24
%
22
%
n.m.
n.m.
(1) Includes Dice and Career Events
(2) For the three months ended June 30,
2024, net income and diluted earnings per share includes the
negative impact of non cash stock-based compensation, net of tax,
of $1.8 million, or $0.04 per diluted share. For the three months
ended June 30, 2023, net loss and diluted loss per share includes
the net negative impact of non cash stock-based compensation and
restructuring, all net of tax, and discrete tax items of $3.0
million, or $0.06 per diluted share.
(3) Net income (loss) margin and Adjusted
EBITDA Margin are calculated by dividing the respective measure by
that period's revenue.
(4) For the six months ended June 30,
2024, net loss and diluted loss per share includes the net negative
impact of non cash stock-based compensation and impairment, all net
of tax, and discrete tax items of $5.8 million, or $0.13 per
diluted share. For the six months ended June 30, 2023, net income
and diluted earnings per share includes the net negative impact of
non cash stock-based compensation, severance and related costs, and
restructuring, all net of tax, and discrete tax items of $4.8
million, or $0.11 per diluted share
(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
Q2 2024
Q2 2023
$ Change
% Change
ClearanceJobs
$
11,365
$
10,460
$
905
9
%
Dice
18,622
21,843
(3,221
)
(15
)%
Total Bookings
$
29,987
$
32,303
$
(2,316
)
(7
)%
YTD 2024
YTD 2023
$ Change
% Change
ClearanceJobs
$
28,156
$
26,408
$
1,748
7
%
Dice
50,607
59,461
(8,854
)
(15
)%
Total Bookings
$
78,763
$
85,869
$
(7,106
)
(8
)%
(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
Q2 2024
Q2 2023
$ Change
% Change
ClearanceJobs
$
24,275
$
20,842
$
3,433
16
%
Dice
$
16,294
$
15,534
$
760
5
%
YTD 2024
YTD 2023
$ Change
% Change
ClearanceJobs
$
23,662
$
20,681
$
2,981
14
%
Dice
$
16,146
$
15,602
$
544
3
%
(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:
Q2 2024
Q2 2023
YTD 2024
YTD 2023
ClearanceJobs
96
%
90
%
98
%
93
%
Dice
78
%
84
%
81
%
89
%
Renewal Rate on Count:
ClearanceJobs
78
%
81
%
79
%
82
%
Dice
69
%
79
%
74
%
81
%
Retention Rates1
Q2 2024
Q2 2023
YTD 2024
YTD 2023
ClearanceJobs
113
%
110
%
113
%
110
%
Dice
99
%
101
%
100
%
103
%
(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
June 30, 2024
June 30, 2023
Change
% Change
ClearanceJobs
2,009
2,069
(60
)
(3
)%
Dice
5,031
6,007
(976
)
(16
)%
Deferred Revenue and
Backlog1
Comparison to Prior Year
End
Comparison Year Over
Year
June 30, 2024
December 31, 2023
$ Change
% Change
June 30, 2023
$ Change
% Change
Deferred Revenue
$
52,268
$
49,971
$
2,297
5
%
$
53,434
$
(1,166
)
(2
)%
Contractual commitments not invoiced
58,037
58,126
(89
)
—
%
64,328
(6,291
)
(10
)%
Backlog
$
110,305
$
108,097
$
2,208
2
%
$
117,762
$
(7,457
)
(6
)%
(1) Backlog consists of deferred revenue
plus customer contractual commitments not invoiced representing the
value of future services to be rendered under committed
contracts
Non-GAAP Earnings Per
Share(1)
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Reconciliation of Diluted Earnings Per
Share to non-GAAP Earnings per Share:
Diluted earning (loss) per
share
$
0.02
$
—
$
(0.01
)
$
0.01
Non-cash stock-based compensation(2)
0.04
0.04
0.07
0.09
Impairments, net of tax
—
—
0.01
—
Severance and related costs, net of
tax
—
—
—
0.01
Restructuring
—
0.04
—
0.04
Discrete tax items(3)
—
(0.01
)
0.05
(0.02
)
Other(3)
—
(0.01
)
—
(0.01
)
Non-GAAP earnings per share
$
0.06
$
0.06
$
0.12
$
0.12
Weighted average shares outstanding used
in computing diluted earnings (loss) per share
45,037
43,460
44,386
44,682
Weighted average shares outstanding used
in computing non-GAAP earnings per share
45,037
44,159
44,864
44,682
(1) Non-GAAP earnings per share was
previously titled Adjusted Diluted Earnings Per Share.
(2) The Company revised its definition of
non-GAAP earnings per share beginning with the first quarter of
2024 to exclude the impact of non-cash stock-based compensation
expense. All prior periods have been recast to conform with the
revised definition. See "Notes Regarding the Use of Non-GAAP
Financial Measures" elsewhere in the document.
(3) Adjusts, as applicable, for the share
impact of common stock equivalents, where dilutive, and for the
impacts of rounding.
DHI GROUP, INC.
NON-GAAP & SUPPLEMENTAL
DATA (CONTINUED)
(Unaudited)
(in thousands, except per
share and customer data)
Adjusted EBITDA
Reconciliations
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Reconciliation of Net Income (Loss) to
Adjusted EBITDA:
Net income (loss)
$
943
$
(127
)
$
(569
)
$
333
Interest expense
845
879
1,791
1,677
Income tax expense (benefit)
383
(677
)
2,652
(1,191
)
Depreciation
4,586
4,162
9,042
8,335
Non-cash stock-based compensation
2,160
2,397
4,304
5,284
Income from equity method investment
(168
)
(104
)
(302
)
(275
)
Impairment of investment
—
—
400
—
Severance and related costs
223
100
223
521
Restructuring
—
2,115
—
2,115
Adjusted EBITDA
$
8,972
$
8,745
$
17,541
$
16,799
Reconciliation of Cash Flows from
Operating Activities to Adjusted EBITDA:
Net cash provided by operating
activities
$
9,063
$
8,066
$
11,150
$
8,077
Interest expense
845
879
1,791
1,677
Amortization of deferred financing
costs
(36
)
(36
)
(72
)
(72
)
Income tax expense (benefit)
383
(677
)
2,652
(1,191
)
Deferred income taxes
930
1,227
(50
)
2,075
Change in accrual for unrecognized tax
benefits
(32
)
(243
)
(113
)
(303
)
Change in accounts receivable
(9,490
)
(5,990
)
45
(1,837
)
Change in deferred revenue
3,447
5,411
(2,297
)
(2,570
)
Severance and related costs
223
100
223
521
Restructuring
—
2,115
—
2,115
Changes in working capital and other
3,639
(2,107
)
4,212
8,307
Adjusted EBITDA
$
8,972
$
8,745
$
17,541
$
16,799
A reconciliation of Adjusted EBITDA Margin for the three and six
months ended June 30, 2024 and 2023 follows (in thousands):
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue
$
35,833
$
38,538
$
71,858
$
77,158
Net income (loss)
$
943
$
(127
)
$
(569
)
$
333
Net income (loss) margin(1)
3
%
—
%
(1
)%
—
%
Adjusted EBITDA
$
8,972
$
8,745
$
17,541
$
16,799
Adjusted EBITDA Margin(1)
25
%
23
%
24
%
22
%
(1) Net income margin and Adjusted EBITDA
Margin are calculated by dividing the respective measure by that
period's revenue.
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 without
unreasonable efforts.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240807984734/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
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