DHI Group, Inc.

Good afternoon and welcome to the DHI Group, Inc. Third Quarter 2021 Financial Results Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, This event is being recorded. I would now like to turn the conference over to Todd Curley with MKR Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, and welcome to DHI Group's Fiscal 2021 Third Quarter Earnings Conference Call. With me on today's call are DHI's CEO, Art Zaley, and Chief Financial Officer, Kevin Bostick. Before I turn the call over to Art, I'd like to cover a few quick items. This afternoon, DHI issued a press release announcing its fiscal 2021 third quarter financial results. The release is available on the company's website at dhigroupinc.com. This call is being broadcast live over the internet for all interested parties, and the webcast will be archived on the investor relations page of the company's website. I want to remind everyone that during today's call, management will make forward-looking statements that involve risks and uncertainties. Please note that except for the historical information, statements on today's call may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. When used, the words anticipate, believe, expect, intend, feature, and other similar expressions identify forward-looking statements. These forward-looking statements reflect DHI management's current views concerning future events and financial performance, and are subject to risks and uncertainties and actual results may differ materially from the outcomes contained in any forward-looking statements. Factors that can cause these forward-looking statements to differ from actual results include delays in development, marketing or sales, the adverse impact of an uncertainty surrounding the COVID-19 pandemic, and other risk factors and uncertainties described in the company's periodic reports on Form 10-K and 10-Q and other filings with the Securities Exchange Commission. DHI undertakes no obligation to update or revise any forward-looking statements. Lastly, during today's call, management will be referring to specific financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted earnings per share, and net debt that are not prepared in accordance with U.S. GAAP. Information about and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are available in our earnings release and are on our website at dhigroupinc.com in the Investor Relations section. With that, I'm going to turn the conference over to Art Zailey, CEO of DHI Group.

Thank you, Todd. Good afternoon, everyone, and welcome to our Fiscal 2021 Third Quarter Earnings Conference Call. Thank you for joining us today. Before we begin, I want to remind everyone that we completed the spinoff of a majority of our e-financial careers business on June 30th to the EFC management team. DHI is now solely focused on the technology career marketplace in the United States through our two brands, Dice and Clearance Jobs. This focus has allowed us to accelerate our bookings and revenue growth and further drive product excellence on both platforms. Let's start today by quickly touching on the markets Dice and CJServe, and then we'll review their solid performance during the third quarter and confirm our expectations for increased revenue growth going forward. Today, the unemployment rate for technologists is still within range of its 2018 to 2019 lows. At the same time, Microsoft forecasts approximately 140 million new digital jobs will be created by 2025 across the world as companies rely on tech talent to advance innovation. With these millions of new tech job openings and the unemployment rate for technologists at an all-time low, employers now more than ever need sophisticated tools to attract qualified tech candidates. ICE and CJ are those tools. They enable companies and government agencies and the staffing and recruiting firms that service them to find, attract, and hire the highest quality tech professionals. With these industry-leading tools and our increased investment in sales and marketing, we are delivering double-digit subscription software revenue growth as we further penetrate the large and growing technology career marketplace. In the third quarter, we again grew year-over-year bookings across all sales teams and ended the period with total bookings growth of 40% year-over-year. And as a result of our strong bookings performance, DHI posted total revenue growth of 7% sequentially and 13% year-over-year. Now let me dig into both of our brands' performance during the quarter and where we see them heading. Let's start with DICE, which is our largest opportunity for total revenue growth. We saw our DICE bookings and revenue renewal rates increase substantially in the third quarter. Our bookings for DICE increased 46% year over year, and our revenue renewal rate increased 92%, up from 89% in the second quarter and up significantly from the third quarter of the prior year. All of this resulted in our DICE revenue for the quarter increasing 8% sequentially and 12% year over year. As I have said before, we spent 2019 and 2020 building a better product, and now in 2021, we are capitalizing on that product innovation through accelerated sales and marketing efforts. During the third quarter, we continued to grow our sales team. further increasing our full quota-bearing sales team capacity. As a SaaS-based business, our revenue follows bookings. And with our solid bookings growth over the past several quarters, we are now seeing our total revenue grow. And we expect this growth to increase in the fourth quarter and beyond as we continue to execute on our plan. We have two large growth opportunities in front of us with Dice. Dice Commercial Accounts is our largest white space opportunity, with tens of thousands of companies in the United States looking to hire high-quality tech professionals. These are companies like Bank of America, United Health Group, and 7-Eleven that are using our tool internally to find and engage the right technologists to fuel their digital strategies. Today, there are tens of thousands of companies in the United States that have multiple tech job postings. and each of these companies is a target for our commercial account sales team. The staffing and recruiting industry is the second large growth opportunity for Dice, with over 18,000 staffing and recruiting firms operating in the United States. Today, we service approximately 4,000 of them, leaving us with a significant opportunity to expand our reach into many of these accounts. To capitalize on these growth opportunities, We continue to focus our marketing spend on generating qualified leads to fuel our new business teams, and we've seen great results from this investment over the past several quarters. In the third quarter, we exceeded our targets for marketing qualified leads, and our new business teams were successful in converting leads to new clients. As a result, our DICE customer base grew sequentially for the third consecutive quarter, adding over 300 net new clients. This quarter, we also initiated a new Dice branding awareness campaign focused on reintroducing our Dice brand to the 12 million technologists in the United States with a goal of driving new registrations and profile creations. we are already seeing higher reach and engagement metrics increasing the value of our platforms. Now let's talk about clearance jobs. CJ's third quarter revenue grew 16% year over year, and their sales team also performed extremely well during the quarter with bookings growth of 29% over the prior year. CJ's revenue renewal rate remains very healthy at 94%. CJ also reached new milestone peaks for new candidate registrations, and job postings during the quarter. As with Dice, we have two large growth opportunities with CJ. The first is the government contractor market for technologists. We currently have approximately 1,800 contractor clients, but know that over 10,000 more can use our services. CJ's second major growth opportunity is selling its subscription software directly to the hundreds of U.S. government agencies that are in need of highly qualified technologists and are competing against the private sector for these candidates. We continue to sign several new U.S. government agency clients during the quarter, including the new U.S. Space Force. CJ sales and marketing teams continue to execute on their growth plans to further penetrate these two markets as evidenced by their solid bookings growth during the quarter. We have created the industry-leading tools for matching companies with the highest quality tech professionals, and we believe we can capitalize on the millions of new technologist jobs being created over the next several years by selling our subscription software to the companies, government agencies, and staffing and recruiting firms that will be looking to fill these jobs. The success we've had to date with our increased sales and marketing initiatives gives us confidence in our ability to continue to grow revenue at a double-digit growth rate going forward as we further penetrate this large and growing market. With that, let me turn the call over to Kevin, who will take you through our financials, and then we'll take any questions you may have. Kevin?