DHI Group, Inc. (NYSE: DHX) announced financial results for the first quarter ended March 31, 2023.
First Quarter Financial Highlights
- Total revenue was $38.6 million, up 12% year over year.
- Total bookings were $53.6 million, up 6% year over year.
- Net income was $0.5 million, or $0.01 per diluted share, a net income margin of 1%.
- Adjusted EBITDA was $8.1 million, up 16% year over year, and Adjusted EBITDA Margin was 21%.
- Cash flow from operations was $0.0 million.
- Cash was $5.4 million and total debt was $46.0 million at quarter end.
The company’s revenue growth was driven by strong growth in both total revenue and total bookings. The company’s net income decreased year over year, but this was due to a number of factors, including increased investment in growth initiatives and higher costs. The company’s Adjusted EBITDA margin increased year over year, which is a positive sign. The company’s cash flow from operations was negative, which is a concern. The company’s cash position was strong, but its debt levels were also high.
Art Zeile, President and CEO of DHI Group, said:
“For the first quarter, employers in the U.S. posted job openings for approximately 813,000 tech jobs, and the tech unemployment rate for April remained near all-time lows at 2.3%, with approximately two job openings for every one tech worker looking for employment. Even in this difficult macro environment, there continues to be significant demand for technologists across all industries as companies continue to invest in technology initiatives.
“Our first quarter results highlight the fact that our existing customers continue to find value in our subscription offerings as they rely on our offerings to find, attract and hire the best technologists for their job openings. Our revenue renewal rates for Dice and ClearanceJobs remained strong in the mid-90s, and our retention rates remained over 100% as we continued to expand within existing customers. In fact, our average annual revenue per recruitment package customer for both Dice and ClearanceJobs increased in the first quarter, both sequentially and year over year in the first quarter.
“While our new business teams are still seeing longer sales cycles as a result of the current uncertainty in the U.S. economy, we did sign on several large new customers during the first quarter, including Edward Jones, Bechtel, and the Department of Transportation, highlighting the value proposition for our offering among non-tech companies that are looking to hire tech professionals.