DHI Group, Inc. (NYSE:DHX) Q4 2018 Earnings Conference Call Transcript
Feb 07, 2019 • 08:30 am ET
Good morning. My name is Lisa, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Fourth Quarter and Full Year 2018 DHI Group, Inc. Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. (Operator Instructions) Thank you.
Rachel Ceccarelli, you may begin your conference.
All right. Thank you, Lisa, and good morning to everyone and welcome to our 2018 fourth quarter earnings conference call. With me today are Art Zeile, President and CEO; and Luc Gregoire, our CFO.
(Forward-Looking Cautionary Statements)
During today's call, we will be referring to certain financial measures including adjusted revenues, adjusted EBITDA and adjusted EBITDA margin that are not prepared in accordance with US GAAP. Information about and reconciliations of these non-GAAP measures to which most directly compare to GAAP measures are available on our earnings release, which is posted on our website at www.dhigroupinc.com in the IR section.
With that, I will now turn the call over to Art.
Thanks, Rachel, and good morning to everyone who has joined our call. We appreciate your interest in DHI. We ended 2018 with strong momentum, reaching an important inflection point in our business. We stabilized our remaining tech-focused revenues, which in the fourth quarter were flat year over year for the first time in nearly three years. At that same time, we improved our profitability.
Additionally, for the first time in several years, our Dice client count remained constant on a sequential quarter basis and our average revenue per customer increased. This is a watershed moment for our company. We made significant progress in executing on our tech-first strategy and strengthening several important dimensions of our business. We completed the divestitures of our non-core brands, closed Dice Europe and restructured several offices, streamlining our global footprint. We implemented robust frameworks for delivering excellence in sales, marketing, product management and engineering. We also put in place a strong execution-oriented management team and began implementing a culture of customer-focused innovation.
On the product side, we established a regular delivery rhythm and product roadmap in 2018, supported by a clearer sense of mission. ClearanceJobs is our test bed for product innovation, and we are successfully leveraging that across our other brands. We launched TalentSearch with Intellisearch in Dice in the third quarter as evidence of our commitment to taking the best time tested features from ClearanceJobs and bringing them to Dice and eFinancialCareers. This was the first major Dice upgrade in years with nearly 80% of Dice clients migrated to date. The feedback has been extremely positive, and we're seeing a double digit increase in usage.
Equally important, we launched ClearanceJobs Next Generation platform in the fourth quarter. Next Gen is a substantial leap forward in delivering a true career network where employers engage with candidates on opportunities by leveraging robust personal profiles, live chat, instant messaging and voice over IP communications. Again, the key