Mike Durney SVP, Finance & CFO · 2015. 10. 16. · and brand recognition, failure to increase or...
Transcript of Mike Durney SVP, Finance & CFO · 2015. 10. 16. · and brand recognition, failure to increase or...
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Mike DurneySVP, Finance & CFO
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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.
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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
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Look to Dice for Your Staffing Solutions
Employers, Recruiters & Marketers
Professionals
Delivering Specific Audiences in Right Context
ActionableFiltered
Talent Skill Specific
EfficiencyEfficiency
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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%
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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
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Look to Dice for Your Staffing SolutionsToday’s Agenda
� The Market
� Q&A
� Open Web
� The Margin Question
� Slashdot Media
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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
200
300
400
500
600
1/1
/20
02
1/1
/20
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1/1
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1/1
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11
1/1
/20
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1/1
/20
13
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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
400
500
600
1/1
/20
02
1/1
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1/1
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1/1
/20
10
1/1
/20
11
1/1
/20
12
average
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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
1/1
/20
02
1/1
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1/1
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13
National
Tech
Finance
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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
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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
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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
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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
Ju
l-1
2
Sep
-12
No
v-1
2
Ja
n-1
3
Rigzone Monthly New Job Postings
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Look to Dice for Your Staffing SolutionsToday’s Agenda
� The Market
� Q&A
� Open Web
� The Margin Question
� Slashdot Media
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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
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Look to Dice for Your Staffing SolutionsCreates Open Web “Super” Profile
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Look to Dice for Your Staffing SolutionsOpen Web “Super” Profile” Sources
~ 50 Sites Aggregated
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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.
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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
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Look to Dice for Your Staffing SolutionsToday’s Agenda
� The Market
� Q&A
� Open Web
� The Margin Question
� Slashdot Media
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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
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Look to Dice for Your Staffing Solutions
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Look to Dice for Your Staffing SolutionsToday’s Agenda
� The Market
� Q&A
� Open Web
� The Margin Question
� Slashdot Media
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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
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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
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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
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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
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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)
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Q&AMike Durney
SVP, Finance & CFO