Scot Melland Chairman, President & CEO Mike Durney SVP, Finance & CFO · 2015. 10. 16. · State &...
Transcript of Scot Melland Chairman, President & CEO Mike Durney SVP, Finance & CFO · 2015. 10. 16. · State &...
Scot MellandChairman, President & CEO
Mike DurneySVP, Finance & CFO
Look to Dice for Your Staffing SolutionsForward Looking Statement
This presentation contains forward-looking statements. You should not place undue reliance on those
statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Forward-
looking statements include information concerning our possible or assumed future results of operations, including descriptions 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 are based on assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors
could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, competition from existing and future competitors, failure to maintain and develop our reputation and brand recognition, failure to increase or maintain the number of customers who purchase recruitment packages, cyclicality or downturns in the economy or industries we serve, and the failure to attract qualified professionals or grow the number of qualified professionals who use our websites. These factors and others are discussed in more detail in the Company’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2007, under the headings “Risk Factors,”
“Forward-Looking Statements”
and “Management's Discussion and Analysis of Financial Condition and Results of Operations.”
You should keep in mind that any forward-looking statement made by us herein, or elsewhere, speaks only as of the date on which we make it. New risks and uncertainties come up from time to time, and it is impossible for us to predict these events or how they may affect us. We have no
obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws. All statements contained in this presentation are made only as of the date of this presentation.
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.
Look to Dice for Your Staffing Solutions
BUILD
the leading global network of specialized career sites for professional communities
Goal
Look to Dice for Your Staffing Solutions
Technology / Engineering
Capital Markets / Financial Services
Accounting and Finance
Job Fairs, Open Houses
U.S.
U.K. Base 18 Global Markets
U.S.
U.S.
66%
28%
6%
Government Security ClearancesU.S.
Dice Holdings Today
Market% of
Q2 08 Revenue
Look to Dice for Your Staffing Solutions
►
Relevant Job Opportunities
►
Deep Career Information
►
Faster / Easier Search
►
Forum for Peer to Peer Exchange
►
“Filtered”
Talent Pool
►
Unique, Highly-Experienced Candidates
►
Customized Search Tools
►
Industry-Knowledgeable Customer Support
RELEVANCY
and success build loyalty
Advantages of Vertical Focus…
Professionals Recruiters/Employers
Look to Dice for Your Staffing Solutions…Results in an Attractive Business Model
►Employers/recruiters purchase: job postings; resume database access; advertising
►“Subscription-like”
revenue stream
►High operating margins–
User generated content (job postings, resumes, peer-to-peer)–
Vertically-focused marketing–
Strong traffic driven by leading brands
►Network effect: Professionals Postings Professionals
►Critical mass creates barrier to entry
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MARKET OPPORTUNITY
Look to Dice for Your Staffing SolutionsGlobal Online Recruitment Market 2007-2008
Source: Dice Holdings Estimates
*Does not include Africa, South America.
$2.4 $2.5
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2007 2008
($BN) U.S.
$1.8
$2.3
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2007 2008
($BN) INTERNATIONAL*
5%30%
Look to Dice for Your Staffing SolutionsProfessional Verticals Exhibit Tighter Demand
Unemployment Rates: Technology and Finance Verticals Strong
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Jan-04
Apr-04
Jul-04
Oct-04
Jan-05
Apr-05
Jul-05
Oct-05
Jan-06
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
OverallFinancialTechnology
Source: Bureau of Labor Statistics; overall unemployment rates are seasonally adjusted –
Technology and Finance are not seasonally adjusted.
Look to Dice for Your Staffing SolutionsStrong Demand Expected for Professionals
Source: Bureau of Labor Statistics, November 2007
U.S. Employment Growth by Sector 2006 –
2016(in millions)
Professional & Business Services 4.1
Health Care 4.0
Leisure & Hospitality 1.9
State & Local Gov’t 1.4
Financial Activities 1.2
Other Services 0.8
Retail 0.7
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PROFESSIONAL COMMUNITIES
Look to Dice for Your Staffing Solutions
FOCUSED
on technology and engineering professionals for 18 years
Largest Technology Career Site Serving the U.S.
►
Filtered Talent Pool of Unique, Highly Qualified Candidates
►
Customized & Efficient Search Tools
►
Career Content to Enhance Community Loyalty
Look to Dice for Your Staffing Solutions
Critical Mass Highly-Skilled Professionals
► Approximately 1.8 to 2 million unique visitors per month(1)
► 20% of traffic from paid sources
► 450K Job Alerts delivered each day
► 690K searchable resumes
► Experienced professionals: 75% have more than 5 years of experience; almost half have 10+ years
► “Passive” job seekers audience: 64% are currently employed
► Highly compensated: Average Dice candidate earns $74,600
► Well educated: Approximately
70% have bachelor’s degree or higher
Large and Targeted Community
Source: Dice Internal Reports(1)
Based on Omniture reporting initiated September 2007.
Look to Dice for Your Staffing SolutionsLeadership with Tech Professionals
61%
47%41%
36%
6%
24%23%
29%
40%
16%11%
19%
32%
9%6%
19%
7%4%
10%
26%
4%2%6%
11%
Quality of techjobs
The best websitefor tech jobs
The #1 tech jobsite One-stop shop fortech careerresources
Dice Monster Careerbuilder HotJobs Linked In Craigslist
Dice Internal Report done by Harris Interactive; November, 2007
Look to Dice for Your Staffing SolutionsDiverse Customer Base
Look to Dice for Your Staffing Solutions
►
Founded in 2000
►
Site network includes some of the world’s leading financial media companies
►
Infrastructure for global expansion
FOCUSED on capital markets professionalsin 18 markets worldwide
Global Leader in Financial Services
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► Experienced professionals: 55% have more than 6 years of experience; almost 33% have 10+ years(2)
► Well educated: More than 40% have Master’s degree(2)
Highly-Skilled Finance Professionals
Large, Diverse, Valuable Talent Pool
(1)
Includes visitors who visited more than one site in the network during the month.(2)
NORAS 2008 Survey on eFC.co.uk
–
UK eFinancialCareers
Critical Mass
► Approximately 1.6 to 2 million unique visitors per month(1)
►Traffic growth of 42% in 1H 2008 vs. 1H 2007
► Approximately 200K Job Alerts globally
► 450K searchable resumes
Look to Dice for Your Staffing SolutionseFinancialCareers: Diverse Customer Base
Look to Dice for Your Staffing Solutions20 Largest Capital Markets*
*Source: World Bank: Market capitalization of listed companies ($USm
2006)
Note: Regions in yellow were launched in 2008; Regions in Red established prior to 2008.
United States
ChinaFrance
U.K.
Japan
Hong Kong/Singapore
India
Canada
Germany
Russian Federation
Brazil
Scandinavia
Spain
Benelux
Switzerland
Korea
Australia
Italy
Gulf
South Africa
Look to Dice for Your Staffing Solutions
0
5,000
10,000
15,000
20,000
25,000
Feb-06 May-06 Aug-06 Nov-06 Feb-07 May-07 Aug-07 Nov-07 Feb-08 May-08 Aug-080
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
`
Total Number of Live Local JobsTotal Number of Local Applications to Local Jobs
Sites launch
Local office opens
Market Entry Strategy: Hong Kong & Singapore
Look to Dice for Your Staffing SolutionsThree-Pronged Growth Strategy
Maximize customer opportunity
Pursue new verticals and professional communities -
likely through acquisition
Expand core technology and finance verticals globally
Look to Dice for Your Staffing Solutions
FINANCIAL SUMMARY
Look to Dice for Your Staffing SolutionsFinance Update
►Financial Model
►Third Quarter Update
►Cost Structure
►Capital Structure
Look to Dice for Your Staffing Solutions
ROW
NorthAmerica
Dice Holdings Segments
66%
25%
3%
% of Q2 08 Revenue
2%
2%
1%
Other
DCS Online 68%
7%
Note: May not add to 100% due to rounding
Look to Dice for Your Staffing Solutions
$7.5
$21.5
$37.7
$62.5
-$10.0
$5.0
$20.0
$35.0
$50.0
$65.0
$80.0
2004PF 2005PF 2006PF 2007A
$39.1
$67.0
$104.4
$143.9
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
2004PF 2005PF 2006PF 2007A
Revenue Growth Adjusted EBITDA
Growth % — 71% 56% 38% Margin % 19% 32% 36% 44%
Actual eFC pre-acquisition Addback of Deferred Revenue Written Off
($MM) ($MM)
Note: 2006 actual includes 2 months of eFC
Highly Profitable Model to Build On
Look to Dice for Your Staffing Solutions
$26.7
$33.6
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
1H07 1H08
First Half 2008 Results
Actual Addback of Deferred Revenue Written Off
Revenue
$66.0
$79.9
$0.0
$15.0
$30.0
$45.0
$60.0
$75.0
$90.0
1H07 1H08
($MM)
Margin % 40% 42%
($MM) ($MM)
Adjusted EBITDA Cash flow from Operations
$27.4
$37.0
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
1H07 1H08
Look to Dice for Your Staffing Solutions2008 Preliminary Estimates – Third Quarter
Low to Mid
Update
Revenue
($ in millions)
As of July 24, 2008
$ 39.5 –
40.0
Impact of Exchange Rates
DCS Online 68%eFinancialCareers 25%
Look to Dice for Your Staffing Solutions2008 Preliminary Estimates – Third Quarter
Low to Mid
Update
Revenue
($ in millions)
As of July 24, 2008
$ 39.5 –
40.0
Above
Above
Low End
Adjusted EBITDA Margin
Sales & Marketing Expense
Adjusted EBITDA $ 17.0 –
17.5
43 –
44%
14.3 –
14.8
Look to Dice for Your Staffing SolutionsDice.com: Preliminary Customer Metrics
Recruitment Package Customers on September 30, 2008 8,800
Average Length of Contract ~10.4 months
Recruitment Package Customers under Annual Contract 82%
Estimated Average Monthly Revenue per Recruitment PackageCustomer for the quarter ended September 30, 2008 ~$849
Look to Dice for Your Staffing SolutionseFinancialCareers: Preliminary Views
Look to Dice for Your Staffing Solutions2008 Preliminary Estimates – Third Quarter
Low to Mid
Update
Revenue
($ in millions)
As of July 24, 2008
$ 39.5 –
40.0
Above
Above
Low End
Adjusted EBITDA Margin
Sales & Marketing Expense
Adjusted EBITDA $ 17.0 –
17.5
43 –
44%
14.3 –
14.8
►Financial & Business Impacts on 4Q
Look to Dice for Your Staffing SolutionsMargin Expansion with Discretionary Spending
23%
31%
46%
Sales and Marketing Cost of Revenue, Product Development and G&A EBITDA
43%
22%
37%
►2007 Revenue 4x 2004 Level
2004
23%
31%
46%
Look to Dice for Your Staffing SolutionsSales & Marketing Expense
Marketing
–
Salespeople Compensation
–
Other Selling Costs
–
Marketing to Professionals
–
Lead Generation and Marketing to Customers
–
Marketing Personnel
Sales
Look to Dice for Your Staffing SolutionsOther Expenses
–
Customer Support
–
Technology Infrastructure
–
Job Fairs
–
Executive
–
Accounting & Finance
–
Strategic Planning, Investor Relations, Legal, Insurance
–
Office Leases & Support
–
Audit, Sarbanes-Oxley
–
Website Development and Product Enhancement
–
Editorial/Content Development
Cost of Revenue
ProductDevelopment
G&A
Look to Dice for Your Staffing SolutionsCapital Structure
►$200 million Facility (March 2007)–
$125 million Term Loan due March 2012–
$75 million Revolver –
Libor + 325 bps
►$122 million Term Loan Outstanding (June 2008)–
$80 million Hedged ~7.13%–
$90 million in Cash & Cash Equivalents
►Revolver Undrawn
Look to Dice for Your Staffing SolutionsCapital Structure: Net Debt to Adjusted EBITDA
Net Debt (1)
/ Adjusted EBITDA (2)
(1) Net debt is defined as total debt less cash and cash equivalents and marketable securities.(2) Adjusted EBITDA on a trailing 12 months basis.
–
Repaid $21 million of Term Loan in September
–
Estimated Cash & cash equivalents -
$77 million at Sept. 30, 2008
–
Evaluating Further Repayments
1.7x
July 31,2007
1.5x
Sept. 30,2007
1.1x
Dec. 31,2007
0.7x
Mar. 31,2008
0.5x
June 30,2008
0.3x
Sept. 30,2008
Look to Dice for Your Staffing SolutionsCapital Structure: Looking Forward
►Attractive Pricing (in Current Market)
►Value of Hedges on $80 million
►Limitations on Acquisitions–
Size–
Structure–
Geography–
Cash/Stock
►Balance between Debt Repayment and Potential Acquisition Financing Cost
Look to Dice for Your Staffing SolutionsDice Holdings Highlights
►Vertically focused unlike major competitors
►Small share of sizeable global market
►Growth opportunities for key verticals
►Excellent margins coupled with strong cash generation
Scot MellandChairman, President & CEO
Mike DurneySVP, Finance & CFO