DHI Group, Inc.

Good day, and welcome to the DHI Group, Inc. Third Quarter 2022 Financial Results Conference Call. 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 one on your touchtone phone. To withdraw from the question queue, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Todd Curley of MKR Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon and welcome to DHI Group's Fiscal 2022 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 2022 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, 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 are 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 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 on our website at dhigroupinc.com in the investor relations section. With that, I'll now turn the call over to Art Zaley, CEO of DHI Group.

Thank you, Todd. Good afternoon, everyone, and welcome to our fiscal 2022 third quarter earnings conference call. Thank you for joining us today. First, DHI is proud to be certified by Great Place to Work, a trustworthy authority on workplace culture with a mission to help organizations become great workplaces for all. This prestigious award is based entirely on what our current employees say about their experience working at DHI. 92% of employees said DHI is a great place to work, 35 percentage points higher than the average U.S. company. The passion of our employees shows in our overall success. We are pleased to report another strong quarter with total bookings growth of 19% year-over-year and total revenue growth of 25% as more employers are using our subscription-based offering. We did this while maintaining 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 6 million-plus tech candidates and our sophisticated toolset to find, attract, engage, and hire the highest-quality tech professionals. During the third quarter, U.S. employers posted over 1.1 million tech jobs up 18% year-over-year according to information technology trade group CompTIA. Even in this current macro environment, we continue to see strong demand for technologists. In fact, the unemployment rate for technologists remains near an all-time low of 2.1%. Open tech job postings are about two times the number of tech workers looking for employment. Our two subscription-based offerings, Dice and Clearance Jobs, 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 these hundreds of thousands of open tech job postings. Dice has over 5 million technologist members, while Clearance Jobs has 1.4 million. And we continue to grow the number of candidates for both brands each quarter. Both sites use our proprietary tech skills mapping taxonomy that has recently been granted a patent by the US Patent and Trademark Office. Our search 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. 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. Now let me dig further into our brand's performance during the quarter. Starting with Dice, bookings increased 17% year over year in the third quarter, and revenue renewal and retention rates remained strong at 98% and 110%. resulting in Dice revenue for the quarter increasing 23% year over year. Dice Commercial Accounts continues to be our largest opportunity for growth, with over 80,000 companies in the U.S. meeting our ideal customer criteria. These companies cross every industry vertical, and during the quarter, our new business team signed several new Commercial Accounts customers, including Western Union, Dominion Energy, Boston Scientific, and Scholastic Books. The staffing and recruiting industry also continues to be a large growth opportunity for DICE, with over 18,000 staffing and recruiting firms operating in the United States. Today we service just a fraction of them, leaving us with a significant opportunity for growth as we continue to expand into this market as well. In the third quarter, Our DICE customer base grew sequentially for the seventh consecutive quarter, adding 23 net new clients. While the number of net new customers is lower than last quarter, we added approximately the same number of net new customers with annual recruitment packages of $10,000 or more, as we did last quarter. We saw a lower number of net new customers with annual contracts below 10,000, consistent with our focus of moving up market to increase our average annual contract value. We continue to see strong demand for DICE among new business prospects in both the commercial accounts and SRC market segments, and with their combined total addressable market value of over $1 billion annually, we are just scratching the surface as the demand for technologists continues to grow. Similar to Dice, we also have two substantial growth opportunities for CJ. The first is the government contractor market, where we currently have over 2,000 contractor clients, but know that there are approximately 10,000 cleared employers that can use our services. CJ's second opportunity for growth 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 Teledyne Technologies and Symantec AI. During the third quarter, our bookings for CJ increased 23% year over year, and our revenue renewal and retention rates remain strong, coming in at 97% and 110%. All of this resulted in our CJ revenue for the quarter increasing 32% year over year. CJ continues to reach record new candidate registrations, record candidate profiles, record posted jobs, and record messages sent on the platform. And its sales and marketing teams continue to further penetrate these two market opportunities, adding 54 net new clients during the quarter. Congress has proposed a historic increase to the National Defense Budget for fiscal year 2023, which we believe will have a beneficial impact on CJ as government contractors and agencies look to hire more technologists to staff newly funded federal programs. During our recent Analyst Day presentation, Ari Konofsky, our Chief Revenue Officer, highlighted our five key levers for driving continued double-digit sales growth and operational efficiency in both our brands. Our Analyst Day webcast is available for replay on our IR website. Since profitable revenue growth is our core strategy, I wanted to quickly review these five levers. The first lever is to continue executing on our baseline growth strategy, which includes include selling multi-year contracts that include year-over-year price increases, as well as contracts with auto renewal clauses. Since the launch of this initiative, approximately 19% of our customers have signed contracts for two or more years, and 94% of all customers have accepted a contract with an auto renewal clause with an annual price increase built into it. These automatic price increases are a predictable driver of continued sustainable revenue growth. Our second lever for growth is our increased focus on year one client renewals. Last year, we launched a white glove customer experience team we call our new account special handling team. This team has a singular focus on ensuring our first year customers have an amazing experience with us. This first-year client experience is critical, as we have found that if a customer stays with DHI longer than one year, our renewal rates are significantly higher. With this special handling team, we now have a deeper understanding of our customers' challenges and success criteria, helping us to deliver clear ROI for each and every one of them. As a result of establishing this new team, we have experienced a significant uptick in our customer renewal and retention rates. which lay the foundation for continued revenue growth. Our third lever for growth focuses on our continued evolution to create holistic solutions for our clients. A key additional service we deliver is corporate branding, allowing companies to tell their story of their mission, values, and culture. Our year-to-date branding bookings have increased 87% from last year We are seeing similar momentum with our sourcing services and career events products. This evolution towards solution selling has contributed to growing our average deal size year over year. The fourth lever for growth is to continue to add headcount to the new business teams and target the large amount of prospective customers that sit in the billion-dollar-plus total addressable market I mentioned earlier. During the third quarter, we continued to add new sales reps to our team at a 20% plus annualized rate. And our marketing team continued to deliver high-quality leads to support them. Our last strategic lever for continued growth really ties everything together by providing continuous training and coaching for our sales team. Over the past couple of years, we've built a best-in-class learning and development organization that has a specific focus of making our reps better each and every day. These five levers not only help us deliver the continued strong results we report today, but more importantly, are the foundation for our continued growth in the quarters and years to come. In addition to successfully driving new bookings through our execution of these five levers, we also continue to expand our technologist community through our Dice brand advertising campaigns. With these brand awareness campaigns, we continue to see strong reach and engagement metrics on Dice, adding more than 50,000 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. So in summary, As we have said, despite current macroeconomic concerns, the demand for technologists continues to be strong. As such, we continue to execute on our proven sales and marketing engine to capitalize on this trend. We have large target addressable markets for both Dice and CJ, and as I just spelled out, we have several levers to drive sustained double-digit bookings and revenue growth well into the future. On that note, 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?