Mike Durney SVP, Finance & CFO · 2015. 10. 16. · and brand recognition, failure to increase or...

29
Mike Durney SVP, Finance & CFO

Transcript of Mike Durney SVP, Finance & CFO · 2015. 10. 16. · and brand recognition, failure to increase or...

  • Mike DurneySVP, Finance & CFO

  • Look to Dice for Your Staffing SolutionsForward Looking Statement

    This presentation and oral statements made from time to time by our representatives contains forward lookingstatements. You should not place undue reliance on those statements because they are subject tonumerous uncertainties and factors relating to our operations and business environment, all of which aredifficult to predict and many of which are beyond our control. Forward-looking statements includeinformation without limitation concerning our possible or assumed future results of operations, includingdescriptions of our business strategy. These statements often include words such as “may,” “will,” “should,”“believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements arebased on assumptions that we have made in light of our experience in the industry as well as our perceptionsof historical trends, current conditions, expected future developments and other factors we believe areappropriate under the circumstances. Although we believe that these forward-looking statements are based onreasonable assumptions, you should be aware that many factors could affect our actual financial results orresults of operations and could cause actual results to differ materially from those in the forward-lookingstatements. These factors include, but are not limited to, competition from existing and future competitors inthe highly competitive market in which we operate, failure to adapt our business model to keep pace withrapid changes in the recruiting and career services business, failure to maintain and develop our reputationand brand recognition, failure to increase or maintain the number of customers who purchase recruitmentpackages, cyclicality or downturns in the economy or industries we serve, failure to attract qualifiedprofessionals to our websites or grow the number of qualified professionals who use our websites, failure tosuccessfully identify or integrate acquisitions, U.S. and foreign government regulation of the Internet andtaxation, our ability to borrow funds under our revolving credit facility or refinance our indebtedness andrestrictions on our current and future operations under such indebtedness. These factors and others arediscussed in more detail in the Company's filings with the Securities and Exchange Commission, all of whichare available on the Investor Relations page of our website at www.diceholdingsinc.com, including theCompany's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, under the headings“Risk Factors,” “Forward-Looking Statements” and “Management's Discussion and Analysis of FinancialCondition and Results of Operations.”

    You should keep in mind that any forward-looking statement made by the Company or its representativesherein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come upfrom time to time, and it is impossible to predict these events or how they may affect us. We have noobligation to update any forward-looking statements after the date hereof, except as required by federalsecurities laws.

    This presentation includes certain "Non-GAAP financial information." A reconciliation of such information to the most directly comparable GAAP data can be found in the Company’s most recent earnings release.

  • Look to Dice for Your Staffing SolutionsDice Holdings: Leading Specialty Sites

    Tech & Clearance

    71%

    Finance

    16%

    Energy

    11% Career Center

    Advertising / Media

    Data

    Events

    FY 2013GRevenue

    Contribution

  • Look to Dice for Your Staffing Solutions

    Employers, Recruiters & Marketers

    Professionals

    Delivering Specific Audiences in Right Context

    ActionableFiltered

    Talent Skill Specific

    EfficiencyEfficiency

  • Look to Dice for Your Staffing SolutionsBuilding an Audience of Actionable Candidates

    Tech Talent

    Leave-alone contentsVery unlikely to leavecurrent positions

    Silver platter passivesLeave if opportunitydropped in their lap

    Career managersOpen to new opportunities andmanaging their careersActive seekers

    Looking for a job – unfavorablework situation or betweenassignments

    33%

    13%

    29%

    30%

    25% 27%

    Dice Sample

    National Sample

    8%

    31%

  • Look to Dice for Your Staffing SolutionsSolid Revenue Growth and High Profitability

    Adjusted EBITDARevenues

    Note: Not adjusted for acquisitions.

    Margin % 44% 44% 45% 40% 43% 40% 37%

    ($mm)

    $142.4$155.0

    $110.0

    $129.0

    $179.1

    $195.4

    $217.0

    $62.5$68.0

    $49.6 $52.1

    $77.6 $77.4 $80.0

    $0.0

    $50.0

    $100.0

    $150.0

    $200.0

    $250.0

    2007 2008 2009 2010 2011 2012 2013G

  • Look to Dice for Your Staffing SolutionsToday’s Agenda

    � The Market

    � Q&A

    � Open Web

    � The Margin Question

    � Slashdot Media

  • Look to Dice for Your Staffing SolutionsSolid New Job Creation…

    Professional and Business Services(in thousands)

    Monthly Change in Employment

    Source: Bureau of Labor Statistics, Establishment Survey

    -200

    -100

    0

    100

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    400

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    1/1

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    /20

    13

  • Look to Dice for Your Staffing Solutions….But Turnover is the Driver!

    Professional and Business Services(in thousands)

    Monthly Change in Employment Level of Voluntary Quits

    Source: Bureau of Labor Statistics, Establishment & JOLTS Surveys

    -200

    -100

    0

    100

    200

    300

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    500

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    /20

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    12

    average

  • Look to Dice for Your Staffing SolutionsTech & Finance are Tighter Labor Markets

    Unemployment Rates

    Source: Bureau of Labor Statistics; overall unemployment rate is seasonally adjusted – Technology and Finance are not seasonally adjusted

    0.0%

    3.0%

    6.0%

    9.0%

    12.0%

    1/1

    /20

    00

    1/1

    /20

    01

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    /20

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    /20

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    13

    National

    Tech

    Finance

  • Look to Dice for Your Staffing Solutions

    -100% +100%0%

    Change in Dice Job Postings(Yr/Yr)

    Tech Recruiting Good, Gradual Improvement

    Note: Based on percentage change in Dice.com job postings by state measured at March 1, 2013

    Portland+6% yr/yr

    Chicago+4% yr/yr

    Jacksonville+18% yr/yr

    Austin+16% yr/yr

    New York-4% yr/yr

    D.C.-9% yr/yr

  • Look to Dice for Your Staffing SolutionsFinancial Services Recruiting Tough

    eFinancialCareers Job Postings

    Note: eFinancialCareers job postings by region measured 1st day of the month.

    UK Continental Europe & Middle EastAsia Pacific US

    -

    4,000

    8,000

    12,000

    9/1

    /08

    3/1

    /09

    9/1

    /09

    3/1

    /10

    9/1

    /10

    3/1

    /11

    9/1

    /11

    3/1

    /12

    9/1

    /12

    3/1

    /13

    , but Stabilizing

  • Look to Dice for Your Staffing SolutionsStrong Oil & Gas Market

    Note: New jobs posted on Rigzone.com.

    0

    3,500

    7,000

    Sep

    -11

    No

    v-1

    1

    Ja

    n-1

    2

    Ma

    r-12

    Ma

    y-1

    2

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    l-1

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    Sep

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    No

    v-1

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    Rigzone Monthly New Job Postings

  • Look to Dice for Your Staffing SolutionsToday’s Agenda

    � The Market

    � Q&A

    � Open Web

    � The Margin Question

    � Slashdot Media

  • Look to Dice for Your Staffing Solutions

    Next-generation, cloud-based, natural language search platform

    “Real-time” aggregating, parsing, normalizing, indexing data to create a comprehensive open web profile

    Aggregates and timestamps data from ~50 leading social media sites and billions of web pages

    Open Web Turbocharges Efficient Recruiting

    What it does

    What it is

    Global scale

  • Look to Dice for Your Staffing SolutionsCreates Open Web “Super” Profile

  • Look to Dice for Your Staffing SolutionsOpen Web “Super” Profile” Sources

    ~ 50 Sites Aggregated

  • Look to Dice for Your Staffing SolutionsDice Beta Feedback Very Encouraging

    “I love Open Web! I really enjoy getting all the candidates in ONE place without having to search for people manually on social media sites.”

    Cheryl T, HR Assistant, Health Choice Arizona

    “Open Web gives you a 40,000 foot bird’s eye view of who may be available and moves Dice into the next tier category, right up there with other top social media sites.” Pete T., Director, Dickinson & Associates

    “I really like the Open Web product. It will make it a lot easier for me to look at all of the information available on public sites for potential candidates.”

    Sonia C., Human Resources Director, Linx-AS, LLC

    “I like how it pulls from all of the social network sites, and they are all in one place, where I can click on each profile and select individually. I see how it can really save me time.” Kent H., Senior Staffing Specialist, Synergy Seven, Inc.

  • Look to Dice for Your Staffing SolutionsMost Comprehensive Service to Recruit Tech

    ActiveCandidates

    ActionableCandidates

    Job Postings

    PassiveCandidates

    Resume Database Open Web Branding

    Targeted Content Engaged Community

  • Look to Dice for Your Staffing SolutionsToday’s Agenda

    � The Market

    � Q&A

    � Open Web

    � The Margin Question

    � Slashdot Media

  • Look to Dice for Your Staffing SolutionsSlashdot Media Acquisitions

    Engaged Tech Audiences

    40+ million unique visitors/mo

    Highly-engaged, socially adept audiences

    Employment branding platform

    International

    Opens new markets

    International Tech Career Center + Open Web Profiles

    Media Business

    Undermonetized assets

    New revenue opportunities

    Rebuild sales organization

  • Look to Dice for Your Staffing Solutions

  • Look to Dice for Your Staffing SolutionsToday’s Agenda

    � The Market

    � Q&A

    � Open Web

    � The Margin Question

    � Slashdot Media

  • Look to Dice for Your Staffing SolutionsSolid Revenue Growth and High Profitability

    Adjusted EBITDARevenues

    Note: Not adjusted for acquisitions.

    Margin % 44% 44% 45% 40% 43% 40% 37%

    ($mm)

    $142.4$155.0

    $110.0

    $129.0

    $179.1

    $195.4

    $217.0

    $62.5$68.0

    $49.6 $52.1

    $77.6 $77.4 $80.0

    $0.0

    $50.0

    $100.0

    $150.0

    $200.0

    $250.0

    2007 2008 2009 2010 2011 2012 2013G

  • Look to Dice for Your Staffing SolutionsMargin Impacts 2011 ���� 2012

    eFinancialCareers

    Slashdot Media

    Development Projects

    $195 mm in Revenues

    100 bps = ~$2 mm

    2012 = 40% EBITDA Margin

    2011 Margin = 43%

    200 bps

    75 bps

    100 bps

    Impact on DHX Margin

  • Look to Dice for Your Staffing SolutionsMargin Impacts 2012 ���� 2013

    Slashdot Media

    Open Web Investment

    CRM to SaaS Model

    $217 mm in Revenues1

    100 bps = ~$2.2 mm

    2013G = 37% EBITDA Margin

    2012 Margin = 40%

    200 bps

    100 bps

    100 bps

    eFinancialCareers 50 bps

    1 Guidance as provided on January 30, 2013

    Impact on DHX Margin

  • Look to Dice for Your Staffing SolutionsLong Term Goal: 40 – 45% Margins

    Do these items change our margin profile?

    Open Web

    Slashdot Media

    eFinancialCareers

    No

    No

    ?

    CRM No

  • Look to Dice for Your Staffing SolutionsStrong Free Cash Flow

    1Q 2Q 3Q 4Q

    Quarterly Free Cash Flow

    $50.2

    $19.8

    $42.4

    $61.4

    $48.8

    $0.0

    $35.0

    $70.0

    2008 2009 2010 2011 2012

    ($mm)

  • Q&AMike Durney

    SVP, Finance & CFO