DHI Group, Inc.

Good afternoon and welcome to DHI Group Inc. Second Quarter 2022 Financial Results. All participants will be in 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 1 on your telephone keypad. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Todd Curley, of NKR Investor Relations. Please go ahead.

Thank you, operator. Good afternoon, and welcome to DHI Group's fiscal 2022 second quarter earnings conference call. With me on today's call are DHI's CEO, Art Zailey, and Chief Financial Officer, Kevin Bostic. 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 2022 second 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, future, 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 they're subject to risks and uncertainties and actual results may differ materially from the outcomes contained in any forward-looking statements. Factors that could cause these forward-looking statements to differ from actual results include delays in development, marketing or sales, the adverse impact of and uncertainty surrounding the COVID-19 pandemic, and other risks and uncertainties discussed 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, and adjusted earnings per share, which are not prepared in accordance with U.S. GAAP. Information about and reconciliation of these non-GAAP measures to the most directly comparable GAAP measures are available in our earnings release and on our website at dhigroupinc.com in the Investor Relations section. I'll now turn the call over to Art Zailey, CEO of DHI Group.

Thank you, Todd. Good afternoon, everyone, and welcome to our fiscal 2022 second quarter earnings conference call. Thank you for joining us today. We are pleased to report another quarter of strong financial results with total bookings growth of 27% year over year, and total revenue growth of 29% as more employers are using our subscription-based offering. While doing this, we maintain an adjusted EBITDA margin of 21% for the quarter, making us once again a Rule of 40-plus company. With the significant supply-demand gap created by the increasing demand for technologists, more employers need access to our growing community of tech candidates, and our sophisticated tool sets to find, attract, engage, and hire the highest quality tech professionals. During the second quarter, US employers posted over 1.6 million IT jobs, up 60% year over year, and 38% from the first quarter, according to information technology trade group CompTIA. And even in this difficult macro environment, this growing demand for technologists showed no signs of slowing down as U.S. employers posted over 500,000 open tech jobs in June alone, up more than 62% year over year. At the same time, the unemployment rate for technologists is near an all-time low of 1.8%, and there are only about 90,000 new computer science graduates entering the workforce each year. With demand for technologists significantly outstripping supply, Employers, especially ones that are not specifically tech companies but have digital initiatives, need our subscription-based offering to find and attract the right tech candidates. For those of you that are new to our story, Dice and Clearance Jobs are our two subscription-based offerings. They are both tech-focused career marketplaces that attract the highest quality tech professionals and enable employers to find and engage these skilled candidates as they look to fill the millions of new technology jobs flowing into the U.S. economy. DICE has over 5 million technologist members, while Clearance Jobs has 1.4 million. And we continue to grow the number of candidates each quarter. Both sites use our proprietary skills mapping technology that was recently granted a patent by the U.S. Patent and Trademark Office. Our skills mapping algorithms allow our subscribers to find and engage the best tech candidates for their open positions, and provides a substantial competitive advantage for both Dice and CJ. Unlike generalist career sites, our marketplaces are solely focused on serving the technology sector where candidates are measured by the technology skills they have acquired over their career and not job titles. With our leading career marketplaces for finding engaging technologists, DHI is well-positioned to grow as we capitalize on the increasing demand for highly qualified tech professionals. Now let me dig into both of our brands' performance during the quarter. Let's start with Dice, which addresses our largest market opportunity. Our bookings for Dice increased 27% year-over-year in the second quarter, and our revenue renewal rate remains strong at 99%. All of this resulted in our Dice revenue for the quarter increasing 30% year over year. Dice has two opportunities for expansion, as it directly serves the growing market demand for technologists. Dice Commercial Accounts is our largest white space opportunity, with over 80,000 companies in the United States meeting our ideal customer criteria. These are companies across every industry vertical, including finance, healthcare, manufacturing, and consulting. JetBlue Airlines, Boston Children's Hospital, and Toyota are all new commercial accounts we signed this quarter that illustrate the breadth of interest in technologists across all sectors of our economy. With approximately 2,500 commercial account clients today, we are just scratching the surface on this large target market. The staffing and recruiting industry is the second 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 in this client segment as well. Combined, we believe that these two client segments have a total addressable market value of over a billion dollars annually. To capitalize on these two large growth opportunities, we continued to add incremental new sales professionals during the second quarter. We also continued to increase our marketing spend to generate more qualified leads to fuel our expanding new business teams. The new business teams were successful in converting these leads into new clients during quarter, and as a result, our day's customer base grew sequentially for the sixth consecutive quarter, adding 137 net new clients. In addition to successfully driving new bookings through our improved sales and marketing efforts, we are expanding our technologist community through our Dice brand advertising campaigns. We have seen a 50% improvement in traffic and candidate registrations from our first campaign launched in September. And at the end of the second quarter, we launched version 2.0 of these campaigns. With these brand awareness campaigns, we are seeing improved reach and engagement metrics on Dice, adding approximately 40,000 new Dice members each month to our community. Adding tech professionals to our marketplaces attracts more and more clients, which in turn makes our platforms more valuable to tech professionals, completing a virtuous cycle. Now let's talk about clearance jobs. Our bookings for CJ increased 27% year-over-year in the second quarter, and our revenue renewal rate remained strong, coming in at 99%. All of this resulted in our CJ revenue for the quarter increasing 26% year-over-year. CJ celebrated its 20th anniversary on July 7th and continued to reach record new candidate registrations, record candidate profiles, record posted jobs, and record messages sent on the platform during the quarter. Similar to Dice, we also have two growth opportunities for CJ. The first is the government contractor market, where we currently have approximately 1,900 contractor clients, but know that there are over 10,000 cleared employers that can use our services. CJ's second growth opportunity is selling its subscription offering directly to the multitude 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 advance our relationships with both government contractors and U.S. government agencies, adding several new clients during the quarter, including Pacific Northwest National Laboratory, Palantir Technologies, and Virginia Tech. CJA sales and marketing teams continue to further penetrate these two market opportunities during the quarter adding 48 net new clients. As we look ahead, we continue to execute on our growth plan by increasing our investment in our proving sales and marketing engine to capitalize on the increasing demand for tech professionals. We have large addressable markets for both dice and clearance jobs. And as I said before, we are just scratching the surface of our outreach to the tens of thousands of prospective clients for each. We will continue to increase our sales team capacity this year as we work to further penetrate these significant target markets. Despite current macroeconomic concerns, the demand for technologists continues to reach record levels. As such, we remain confident in our ability to sustain double digit bookings and revenue growth rates and reconfirm to delivering rule of 40 plus performance for the remainder of this year and into the future. On that note, let me turn the call over to Kevin, who will take you through our financials and increased guidance for the year, and then we'll take any questions you may have. Kevin?