DHI Group (DHX) Misses Q1 EPS by 1c

DHI Group (NYSE: DHX) reported Q1 EPS of $0.02, $0.01 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $32.6 million versus the consensus estimate of $32.55 million.

First Quarter 2021 Financial Results

• Total revenues were $32.6 million, down 2% sequentially and down 11% year over year.
• Dice revenues were $19.1 million, down 2% sequentially and down 15% year over year.
• ClearanceJobs revenues were $7.6 million, equal to the fourth quarter of 2020 and up 11% year over year.
• eFinancialCareers revenues were $6.0 million, down 4% sequentially and down 18% year over year (down 22% excluding impact of foreign exchange).
• Net income was $2.7 million, which was positively impacted by $1.7 million comprised of an unrealized gain on an equity security and discrete tax items, partially offset by disposition and other charges, net of tax, compared to a net loss of $6.6 million in the year ago quarter, which was negatively impacted by $8.3 million in impairment and other charges, net of tax, and discrete tax items.
• Earnings per diluted share was $0.05, compared to a loss of $0.13 in the year ago quarter. Adjusted earnings per diluted share1 for the quarter was $0.02 vs. $0.03 last year.
• Cash flow from operations was $6.4 million, compared to $2.9 million in the year-ago quarter.
• Adjusted EBITDA1 was $7.3 million, an Adjusted EBITDA margin1 of 22%, compared to $7.5 million and 21% in the year-ago quarter.
• Cash was $7.3 million and net debt1 was $12.7 million at quarter end.

Commenting on the quarter, Art Zeile, President and CEO of DHI Group, Inc., said:

"I am pleased to report another strong bookings quarter with our three new business teams handily exceeding their average monthly booking levels from a year ago. This includes our Dice Commercial Accounts team, which represents our largest opportunity for revenue growth. Additionally, our Dice revenue renewal rate continued to strengthen in the first quarter and came in at 82 percent, up from 75 percent in the prior quarter. With enterprises focusing on tech-enabling their business models, Dice is poised to benefit from the increase in hiring. Our confidence in the economic expansion underway and our sales teams' strong performance over the past two quarters, led us to hire more sales reps in the first quarter. We also initiated a new client branding campaign in trial across multiple channels with the tagline 'Where Tech Connects'. Now that we've created the industry-leading online marketplace for matching companies with the highest quality tech professionals, we believe we can capitalize on the millions of new technologist jobs expected over the next five years."

Business Outlook

"We expect the strong bookings performance we've had over the past two quarters to manifest itself in year over year total revenue growth beginning in the second half of 2021," commented Kevin Bostick, CFO of DHI Group, Inc. "We will continue to operate the business to Adjusted EBITDA margins1 in the 20% range as we invest in our long-term revenue growth plan."

For earnings history and earnings-related data on DHI Group (DHX) click here.

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