• Revenue: $34.8 million, down 7% year over year.
• Adjusted EBITDA: $9.2 million, margin of 26%.
• Net Income: $1.0 million or $0.02 per diluted share.
• Nongaap Earnings Per Share: $0.07.
• Free Cash Flow: $1.6 million for the fourth quarter.
• Operating Cash Flow: $4.4 million for the fourth quarter.
• Clearance Jobs Revenue: $13.8 million, up 7% year over year.
• Dice Revenue: $21.0 million, down 14% year over year.
• Capitalized Development Costs: $2.7 million, down 23% year over year.
• Deferred Revenue: $45.5 million, down 9% year over year.
• Total Debt: $32.0 million.
• Leverage: 0.9 times adjusted EBITDA.
• Revenue Guidance for 2025: $131 to $135 million.
• Adjusted EBITDA Margin Target for 2025: 24%.

• Warning! GuruFocus has detected 8 Warning Signs with DHX.

Release Date: February 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• DHI Group Inc (NYSE:DHX) achieved a full-year adjusted EBITDA of $35.3 million, with a margin increase from 24% to 25% despite a 7% revenue decline.
• The company successfully reduced total operating costs by over $10 million while enhancing product offerings and strengthening sales and marketing.
• DHI Group Inc (NYSE:DHX) restructured its operations into two distinct brands, Dice and ClearanceJobs, to provide dedicated leadership and tailored strategies.
• Encouraging signs of recovery in the tech labor market were noted, with a 16% year-over-year increase in new tech job postings in December.
• The company launched a new $5 million stock buyback program, indicating confidence in the intrinsic value of its shares.

Negative Points

• Total revenue for the fourth quarter declined by 7% year-over-year, with Dice experiencing a 14% decrease.
• Total bookings were down 9% year-over-year in the fourth quarter, indicating challenges in securing new business.
• The tech hiring environment remains soft, with tech job postings at approximately 70% of normal levels.
• Operating cash flow for the fourth quarter decreased to $4.4 million from $7.6 million in the prior year period.
• The company does not expect total bookings growth to resume until tech hiring normalizes, indicating a cautious outlook for 2025.

Q & A Highlights

Q: Can you provide insights into the business prospects for Dice in 2025, particularly regarding the staffing side versus commercial accounts? A: Art Zeile, CEO: We anticipate a slow and steady recovery throughout the year. Staffing seems to be returning to normalcy before our commercial accounts, with positive signs in renewal and new business activities. This aligns with the forecast of a 5% revenue growth in 2025 for staffing.

Q: Are there any concerns for ClearanceJobs (CJ) given the current administration's efficiency initiatives? A: Art Zeile, CEO: We haven't seen any direct impact on CJ's activities. Congress appears committed to maintaining and enhancing the defense budget, which should benefit CJ. However, we will continue to monitor the situation.

Q: Could you clarify the impact of your expense reductions on the P&L and why the EBITDA margin isn't higher? A: Greg Schippers, CFO: The $20 million in savings is split between operating expenses and capitalized development costs. The full impact will be more evident in 2025 as the savings were staggered over time due to multiple restructurings.

Q: Will you provide more detailed segment reporting by brand this year? A: Greg Schippers, CFO: Yes, we plan to dive into more detailed segment reporting in the first half of this year, following our earnings process.

Q: What are your expectations for bookings growth in 2025, particularly for Dice and ClearanceJobs? A: Greg Schippers, CFO: We expect growth for CJ due to strong demand and a stable defense budget. For Dice, we are not projecting improvement in the market but anticipate some year-over-year improvement in bookings throughout 2025.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.