Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook...

35
Scot Melland Chairman, President & CEO Mike Durney SVP, Finance & CFO

Transcript of Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook...

Page 1: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Scot MellandChairman, President & CEO

Mike DurneySVP, Finance & CFO

Page 2: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsForward Looking Statement

This presentation and oral statements made from time to time by our representatives contains forward lookingstatements. You should not place undue reliance on those statements because they are subject tonumerous uncertainties and factors relating to our operations and business environment, all of which aredifficult to predict and many of which are beyond our control. Forward-looking statements includeinformation without limitation concerning our possible or assumed future results of operations, includingdescriptions 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 arebased on assumptions that we have made in light of our experience in the industry as well as our perceptionsof historical trends, current conditions, expected future developments and other factors we believe areappropriate under the circumstances. Although we believe that these forward-looking statements are based onreasonable assumptions, you should be aware that many factors could affect our actual financial results orresults of operations and could cause actual results to differ materially from those in the forward-lookingstatements. These factors include, but are not limited to, competition from existing and future competitors inthe highly competitive market in which we operate, failure to adapt our business model to keep pace withrapid changes in the recruiting and career services business, failure to maintain and develop our reputationand brand recognition, failure to increase or maintain the number of customers who purchase recruitmentpackages, cyclicality or downturns in the economy or industries we serve, failure to attract qualifiedprofessionals to our websites or grow the number of qualified professionals who use our websites, failure tosuccessfully identify or integrate acquisitions, U.S. and foreign government regulation of the Internet andtaxation, our ability to borrow funds under our revolving credit facility or refinance our indebtedness andrestrictions on our current and future operations under such indebtedness. These factors and others arediscussed in more detail in the Company's filings with the Securities and Exchange Commission, all of whichare available on the Investor Relations page of our website at www.diceholdingsinc.com, including theCompany's Annual Report on Form 10-K for the fiscal year ended December 31, 2011, under the headings“Risk Factors,” “Forward-Looking Statements” and “Management's Discussion and Analysis of FinancialCondition and Results of Operations.”

You should keep in mind that any forward-looking statement made by the Company or its representativesherein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come upfrom time to time, and it is impossible to predict these events or how they may affect us. We have noobligation to update any forward-looking statements after the date hereof, except as required by federalsecurities laws.

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.

Page 3: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsDice Holdings: Leading Specialty Career Sites

Global OnlineCompany withVertical Focus

TargetedRecruitment

Focused on Large, Diverse

Market

Traffic Rankingfor Key Dice

Brands

#1$4.7B

Page 4: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsLeading Specialty Career Sites

67%

FY 2012GRevenue

Contribution

20%

11%

Technology & Clearance

Finance

Energy

U.S.

U.K. Base 19 Global Markets

U.S. & Dubai Bases

Page 5: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing Solutions

$179.1

$129.0

$110.0

$67.0

$155.0$143.9

$104.4

$52.1$49.6$68.0$62.5

$37.7

$77.6

$21.5

$0 .0

$2 0 .0

$4 0 .0

$6 0 .0

$8 0 .0

$10 0 .0

$12 0 .0

$14 0 .0

$16 0 .0

$18 0 .0

$2 0 0 .0

2 0 0 5PF 2 0 0 6 PF 2 0 0 7 2 0 0 8 2 0 0 9 2 0 10 2 0 11

($mm)

Note: Includes eFinancialCareers pre-acquisition; not adjusted for Energy acquisitions.

Consistently Delivering Strong Profitability

Margin % 32% 36% 44% 45% 45% 40% 43% 41%

Adjusted EBITDARevenues

Page 6: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsToday’s Agenda

Vertical Advantage

Solid Financial Model

Market Dynamics

2012 Initiatives

Page 7: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing Solutions

Post JobsSearch Resumes

AdvertiseNetwork

Recruiters & HR Vertical Focus

High ValueAudience

Pay-off

Strong ROI

Vertical Focus Leads to Superior Results

Efficient Reach

Fast Response

Page 8: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsBuilding an Audience of Actionable Candidates

Tech Talent

Leave-alone contentsVery unlikely to leavecurrent positions

Silver platter passivesLeave if opportunitydropped in their lap

Career managersOpen to new opportunities andmanaging their careersActive seekers

Looking for a job – unfavorablework situation or betweenassignments

33%

13%

29%

30%

25% 27%Dice Sample

National Sample

8%

31%

Page 9: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsToday’s Agenda

Vertical Advantage

Solid Financial Model

Market Dynamics

2012 Initiatives

Page 10: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing Solutions

InternationalNorth AmericaNotes: Dice Estimates; International does not include Africa, Middle East.

Estimate of Global Online Recruiting Market(in billions)

Online Recruitment Market Growing

$1.7 $2.1 $2.1

$1.5 $1.7$2.3 $2.6

$1.8

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

2009 2010 2011 2012

$3.2$3.5 7%

$4.4$4.7

Page 11: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing Solutions27 Months of Private Sector Job Growth

-900

-450

0

450

900

Jan-

01

Jan-

03

Jan-

05

Jan-

07

Jan-

09

Jan-

11

Source: Bureau of Labor Statistics

(in thousands)Monthly Change in U.S. Private Sector Employment

Page 12: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsBest Job Creating Category in Recovery

Source: BLS Employment Situation - Professional and Business Services

(in thousands)Professional and Business Services

Monthly Change in Employment

-200

-100

0

100

200

Jan-

01

Jan-

03

Jan-

05

Jan-

07

Jan-

09

Jan-

11

Page 13: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsBut Turnover is the Driver!

Source: BLS Employment Situation - Professional and Business Services

(in thousands)Professional and Business Services

Monthly Change in Employment

-200

0

200

400

600

Jan-

01

Jan-

03

Jan-

05

Jan-

07

Jan-

09

Jan-

11

Level of Voluntary Quits

and BLS JOLTS Survey – Professional and Business Services Quits

average

Page 14: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsTech & Finance are Tighter Labor Markets

Unemployment Rates

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12

OverallFinancialTechnology

Source: Bureau of Labor Statistics; overall unemployment rate is seasonally adjusted – Technology and Finance are not seasonally adjusted

Page 15: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing Solutions

-100% +100%0%

Change in Dice Job Postings(Yr/Yr)

Tech Recruiting Good, Not Great

Note: Based on percentage change in Dice.com job postings by state measured at June 1, 2012

Seattle+20% yr/yr

Chicago+14% yr/yr

Atlanta+13% yr/yr

Dallas+14% yr/yr

New York-1% yr/yr

D.C.+9% yr/yr

Silicon Valley+15% yr/yr

Page 16: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsFinancial Services Recruiting Slows

eFinancialCareers Job Postings

0

2,000

4,000

6,000

8,000

10,000

12,000S

ep-0

8

Dec

-08

Mar

-09

Jun-

09

Sep

-09

Dec

-09

Mar

-10

Jun-

10

Sep

-10

Dec

-10

Mar

-11

Jun-

11

Sep

-11

Dec

-11

Mar

-12

Jun-

12

Note: eFinancialCareers job postings by region measured 1st day of the month.

UK Continental Europe & Middle East Asia Pacific US

Page 17: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsSolid Hiring in Oil & Gas

Change in U.S. Oil & Gas Employment

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,00020

00

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

YTD

Note: Bureau of Labor Statistics combined categories of oil and gas extraction and support activities for oil and gas operations.

Page 18: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsToday’s Agenda

Vertical Advantage

Solid Financial Model

Market Dynamics

2012 Initiatives

Page 19: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing Solutions2012 Investments by Key Verticals

Expanding AsiaNew Client Platform

Increasing Content, Features & FunctionalityUpdating Mobile

Introducing Talent Communities

Customer Penetration

Customer PenetrationRegional Sales

Editorial Coverage

Regionalizing Platform

Page 20: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsIntroduced Dice Blog Network

~3,800 Articles Posted

Page 21: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsLaunched Mobile Applications

Mobile: 10% of visits

Page 22: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsIntroduced Talent Communities

Page 23: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing Solutions

2012 Actionable Candidates

Note: Rigzone registered users after combination of Rigzone/WorldwideWorker. The percentages may not total 100% due to rounding

11%

27%

27%22%

9%

2%

3%

Globalizing Rigzone: 1.2 mm Oil & Gas Pros

Page 24: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsToday’s Agenda

Vertical Advantage

Solid Financial Model

Market Dynamics

2012 Initiatives

Page 25: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing Solutions

$18.5

$52.1

$0.0

$10.0

$20.0

Q1 2011 Q1 2012

Q1 2012: Solid Growth and Profitability

Revenue

$46.1

$40.1

$0.0

$25.0

$50.0

Q1 2011 Q1 2012

($mm)

Margin % 40% 40%

($mm) ($mm)

Adjusted EBITDA Free Cash Flow

$21.9

$14.1

$0.0

$12.5

$25.0

Q1 2011 Q1 2012

+16% +56%+15%

Page 26: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsQ2: More Uncertain Environment

U.S. Employment Situation

Turnover

Uncertainty

Subpar

Category Indicator Comment

Job Postings Flattening

Resume Database Searches Still Positive

Customer Count Flattening

Revenue per Customer Positive

Page 27: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsQ2: More Uncertain Environment

UK Hanging In

Continental Europe & ME Getting Worse

Asia-Pacific Global Impact

US Getting Worse

Career Center Expanding Globally

Advertising Strong

Page 28: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsTraditional Sales & Marketing Expense: 35 – 40% of Revenue

Marketing

– Salespeople Compensation

– Other Selling Costs

– Marketing to Professionals

– Lead Generation and Marketing to Customers

– Marketing Personnel

Sales

Page 29: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsTraditional Other Expenses: 20 – 25% of Revenue

– Customer Support

– Technology Infrastructure

– Executive

– Accounting & Finance

– Strategic Planning, Investor Relations, Legal, Insurance

– Office Leases & Support

– Audit

– Website/Mobile Development and Product Enhancement

– Editorial/Content Development

Cost of Revenue

ProductDevelopment

G&A

Page 30: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsInvesting in Product Development

37% 37%

32%34%

33%

3% 3% 4%5% 6%

0%

10%

20%

30%

40%

2007 2008 2009 2010 2011

Expenses(% of Revenue)

Sales & Marketing Product Development

Page 31: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing Solutions

Acquisitions

Cash Priorities

Share Repurchase

Investing for Organic Growth

Page 32: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing Solutions

$0.0

$20.0

$40.0

$60.0

2006 2007 2008 2009 2010 2011 2012

Quarterly Free Cash Flow

Strong Free Cash Flow

1Q 2Q 3Q 4Q

$52.1

$38.1

$50.2

$19.8

$42.4

$61.4

$21.9

Page 33: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsGrowth through Acquisitions

AcquisitionStrategy

Other VerticalsHighly Paid

Difficult/Costly to Recruit

Skill/Experience Specificity

Part of a Community

High Velocity of Change

InternationalOpens New Markets

Use Content Sites to Expand into Careers

Content/Information, Services, ToolsDrives Recurring Use for Communities

Service Creates Deeper Relationships

Expands Vertical Expertise

Page 34: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Look to Dice for Your Staffing SolutionsDice Holdings Highlights

Vertical Focus = Strong Competitive Advantage

Small Share of Large Global Market

Sizeable Long-term Growth Opportunities for Technology, Finance and Energy Verticals

Excellent Margins coupled with Strong Cash Generation

Page 35: Scot Melland Chairman, President & CEO Mike Durney SVP ......Financial Services Recruiting SlowsLook to Dice for Your Staffing Solutions eFinancialCareers Job Postings 0 2,000 4,000

Q&AScot Melland

Chairman, President & CEO

Mike DurneySVP, Finance & CFO