Good morning, and welcome to the DHIs First Quarter 2015 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jennifer Milan, Director of Investor Relations. Please go ahead Ma’am.

Thanks, and good morning everyone. With me on the call today is Mike Durney, President and Chief Executive Officer of DHI Group, Inc.; along with John Roberts, our Chief Financial Officer. This morning, we issued a press release describing the company's results for the first quarter. A copy of that release can be viewed on the company's website at dhigroupinc.com. Before I hand the call over to Mike, I'd like to note that today's call includes certain forward-looking statements, particularly statements regarding future financial and operating results of the company and its businesses. These statements are based on management's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in the economic, business, competitive, technological and/or regulatory factors. The principal risks that could cause our results to differ materially from our current expectations are detailed in the company's SEC filings, including our annual report on Form 10-K, in the sections entitled Risk Factors, Forward-looking Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations. The company is under no obligation to update any forward-looking statements, except as required by the federal securities laws. Today's call also includes certain non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin and free cash flow. For details on these measures, including why we use them and reconciliations to the most comparable GAAP measures, please refer to our earnings release and our Form 8-K that has been furnished to the SEC, both of which are available on our website. Now I'll turn the call over to Mike.

Great, thanks Jenny and welcome to our first earnings call as DHI Group Inc. Last week announced that we changed the name of our company from Dice Holding to DHI, which we did for a couple of reasons. First, it was to recognize that the company has evolved from predominantly one brand as it was until several years ago to a multi brand company serving a number of vertical markets across different geographies. Second, we value the organization around focus on providing value to the organizations that use our services to source and recruit professionals and to the professionals who are looking to us for recruit guidance. Our company now embodies delivering higher insights, a tagline that reinforces our focus on providing data, analytics and insights to those organizations and those professionals. Our new name is symbolic of how far we’ve come from being purely a tech focused job board to delivering services that extend beyond the traditional job posting and resume database services that have been the hallmark of our business for almost 25 years. While job postings continue to be one of the most important methods for recruitment advertising and proprietary data bases of resumes remain incredibly valuable from a sourcing standpoint. We recognized early on that there were other methods developing of identifying, engaging with and recruiting professionals. When we look at the company’s opportunities, we see a number of new avenues for growth. For example, we’ve developed sourcing concierge services where we utilize our expertise to source and engage the professionals on behalf of our clients, who either don’t have the domain expertise or don’t have the time to efficiently source candidates on their own. Open Web and the technology behind it also provide capabilities to lead us in new directions. To date Open Web has…

Thanks, Mike. I will review the details of our Q1financial performance and then we’ll open the call to questions. Overall we’re pleased with the continued progress we made on our operations during the first quarter, despite headwinds from currency effects and the negative impacts of declining oil prices on our energy business. Recruitment activity in the first quarter was fairly consistent across our brands, with the exception of energy where the recruitment market has gotten worse compare to what we saw in Q4 and at the beginning of Q1. For the first quarter, I want to highlight a few areas important to our results. First, year-over-year growth in revenues including growth in most of our operating segments; second, higher year-over-year revenue per recruitment package customer at Dice, reflecting the positive impact of Open Web and increased service levels by customers and third, strong cash flows from operations, while we continue to invest in innovation for future growth. First quarter revenues increased 5% year-over-year to $63.5 million, compared to $60.7 million last year. After adding back the $1.2 million of fair value adjustment to differed revenue in Q1 2014, adjusted revenues grew 3% year-over-year in spite of negative currency impacts. The majority of the growth came from our tech and clearance segment, including growth from all brands within that segment. Now for more detail on the specific segments, I will compare Q1 revenues on a segment basis to adjusted revenues in Q1 2014 where appropriate. Adjusted revenues, adds back to differed revenue adjustment to Q1 2014, which effectively has the impact of lowering the year-over-year growth rates. We feel it is appropriate to give this comparison in order to provide a more fair perspective of our relative performance, especially in the healthcare and hospitality verticals given the size of the differed…

[Operator Instructions] And the first question comes from Kara Anderson with B. Riley & Company.

Hi. Good morning. With regards to dice.com recruitment package customers, what's the biggest driver behind getting that number to grow again?

So Kara, this is Mike. I think there’s a couple of things. One, further penetration of Open Web and further adoption of Open Web would be a big driver. I think the amount of business that opens from having the conversations around Open Web with customer prospects has been pretty significant, but that’s a long lead time sale as companies are not used to that type of sourcing, so further adoption of Open Web is a big piece. The other area that we’ve struggled with from a pure account standpoint is, shorter term customers and we’re looking at variety of ways to increase shorter term customers. If we you look at annual customer count, it’s been relatively steady for quite a period of time, but having shorter term customers as a pipeline for upgrading into a longer term is a key initiative for us, that we’re spending time on in terms of packaging, delivery and we’re going to try a couple of things over the course of the next few months.

Okay. And then on Open Web, you added fewer net subscribers for financial services than technology. Is that reflective of sort of where you are in the cycle, or does the use of Open Web differ for financial services than technology?

I think it’s really the fact that the customer base opportunity is for smaller and financial services. If you think of technology as an employment category - an employment vertical and so it reaches lots of potential customers, so the customer prospect pipeline for the tech segment is pretty large. Financial services, you have a relatively defined number of potential customers, that’s the biggest driver plus where we are from the adoption cycle, we’ve only had it launched in financial services for four months.

And did you guys provide - I don't know if I missed it - the total number of Open Web subscribers?

So if you look at the three different businesses where Open Web is currently being sold, so Dice, EFC and IT Job Board. If you look at all the customers there at the end of the quarter, it’s just over 900.

Okay. And then, for the change in guidance for the year, I know you guys commented on that, but is that really just reflective of a weaker energy segment or is there other changes, since you provided initial 2015 guidance in January?

No, the vast majority is energy. So there is some FX in there, as FX has gotten a little bit worse, but the vast majority of it is the energy business.

Great, thank you. That's it for me.

Thank you.

Thank you. And the next question comes from Youssef Squali with Cantor Fitzgerald.

Thank you. Good morning, a couple questions, maybe just starting with one. If I look at the guidance for the second quarter, and then for the year and look at trying to figure out kind of the linearity or the variance versus your prior guidance, it looks like you're basically assuming a worse Q2, but for the year, you're effectively assuming some sort of improvement in the second half. So maybe you can walk us through your thinking there and why that should happen. I think you only called out FX as a kind of a headwind for Q2. And then I have a couple of follow up.

Sure, so there are a couple of pieces to it Youssef. So take FX first, so if you look at where the pound to the dollar was as a trend in 2014. It certainly had more of a negative impact or where we think it’s going to have more of a negative impact on us in Q2 than it did in Q, if you look at where the rates were, that worsening effect will - so would get better for us over the course of the year. They still will have less currency as we move through the course of the year given where the rates were in 2014. So I think that’s certainly a piece of it. I think another piece of it is that as we look at some of the - and Mike talked about some of the new products on the horizon, particularly in healthcare and as we continue to make progress in tech and clearance. As we move through the course of the year, we expect to see some benefits from some of those products, some of the newer ones and some of the existing work we’ve been doing over the course of the last year to 18 months as we move through the rest of 2015. So I think there’s a couple of impacts that you’re seeing reflected in that.

Okay. And then on corp and other, can you just, again, go through what happened to Slashdot. I think you also called out the Google algo change. So, how did that impact the - is that impact in Slashdot, in particular, or is that impact in some other piece of the business?

No, Youssef that’s purely on Slashdot. The SourceForge piece of the business, which is the bigger piece of the Slashdot Media business, it generated revenue at variety of ways, traditional - display advertising , lead generation and there are offers around downloads and given the way Google’s changed the algorithm, it’s had a disproportionate negative impact on the download business and other offers that we have associated with downloads. Not on like what others in our space have seen.

Okay, but, arguably, that's not a one quarter thing. That's probably going to take several quarters to remedy if it's remedied, right?

Yeah, we believe it will have an impact through the rest of this year. Now, when you look at the Slashdot business, there is some seasonality to the Slashdot business, putting aside the impact of the search algorithm. So the display and lead generation tends to ramp up late in the year. So we think, the second half of the year is going to be better than the first half of the year for the overall Slashdot Media business. But the Google algorithm change impacts a portion of the SourceForge business today.

Got it. And lastly, on the clearance revenue growth of 19%, maybe can you, again, just help explain what drove that and how sustainable that is, going forward, I guess at least in Q2 and the rest of the year?

So there’s a couple of things there. One is, the business has rebounded from what happened in 2013 and the 2014 sequestration and the government shut down - maybe it’s related to the presidential cycle, but there’s certainly a lot more money in government contracting business today than it was a year and two years ago. So we’ve seen a steady amount of growth and now we’re seeing a significant growth year-over-year kind of in the core business. The other thing we’ve done is we’ve launched in that business pay-per-view pricing to a number of customers, which to date has been incredibly successful. So it’s driven a fair amount of the revenue growth for a defined set of customers and so we’re expanding it now a little more broadly within clearance jobs, but it’s been - the reception has been great and the impact on revenue has been great.

Okay, thanks a lot.

Thank you. And the next question comes from Jeffrey Silber with BMO.

Hi, good morning. It's Henry Chien, calling in for Jeff. Did you guys give out an organic growth rate for 1Q, if you have it?

We did not, so we gave a growth rate of 5%. So the thing that’s impacting it a little bit is the OilCareers acquisition, it was in Q1 of 2014, but now that’s had business, so the OilCareers business as we discussed is basically integrated within the RIGZONE platform. It’s not a separate standalone business that we track, it’s the part of the energy segment. So while it’s blended in within the Q1 - it’s blended in within the Q1 numbers now. So the other thing we talked about is that without FX the growth was about 3%.

Okay, just 3% and the OilCareers is the only -

Yeah, it increased [ph] at a partial quarter in 2014.

Got it. Okay, thanks. And for your full-year guidance, I know you said its $1.4 million currency impact for 2Q. Do you have an estimate of what that number is for the full year?

It’s going to be closer to about $4 million for the full year.

Thank you. And how shall we think about product development expenses and sales and marketing, going forward? It looks like that - I know you mentioned some investments in new products. I'm just wondering how we should think about that for the rest of the year.

Yeah, I mean I think, you should think about it on a similar trend as to where it’s been over the last I’d say year, year and a half. I mean those are the areas that we’ve continued to make investment in and so we’ve talked about the areas of investment in Dice product, in technology, the WorkDigital team et cetera, as well as some of the sales and marketing initiatives. I think from a percentage of revenue basis you should think about it as continuing on a similar trend to where it’s been in the last number of quarters. We talk a lot about investing further, but as we’ve said through 2014, we did ramp up investments, so when you look out for the rest of the year, I don’t think you’re going to see a tremendous amount of incremental investment over where we are today. We’ve set the level from a resource standpoint, we’ll mix and match a little bit, but you won’t see further ramping.

Got it. Okay, great. Thanks so much.

Thank you. And the next question comes from Randy Reece with Avondale Partners.

Good morning. You had a sequential downtick in the average revenue per Dice recruitment package customer. I was wondering what the dynamics were beneath that change.

I’m not sure if there’s anything in particular Randy, except that if you look at kind of the full adoption and integration of Open Web into the business as well as the other services or sourcing concierge and so forth that have been driving algorithm over the course of the last year. I think what you’re seeing is that, some of that is now in the base as you’re comparing it to Q1 of last year. We’re left within the base as you move backward obviously, given the newness of some of those products.

Yes, I was just a little surprised that, compared with Q4, that it would be lower. I didn't - given that the number of customers was in line with our expectations, it didn't look like that there was necessarily any kind of customer mix shift. Is that accurate?

I think that’s true, I don’t think there was any significant customer mix shift.

Also, on your guidance, it implies a somewhat - like $2 million to $3 million less operating expenses in fiscal ‘15. Is there anything that changed there? Is that any cost control or reflecting recent trends? What's going on?

Yeah, so I think some of it is related to what we talked about it, what I mentioned with the energy business. So we certainly brought down our expectations on revenue, again primarily related to energy and one of the things I mentioned is that we’re going to - I’d say be cautious as we look at shorter term discretionary spending in the energy business. Well, we’re not going through any level of significant cost reduction in the energy business per say. We’re going to make sure that we’re increasingly cautious and aware and taking a look at some of the shorter term discretionary spending. So I think that’s the primary piece.

That looks - is it accurate to say your guidance implies energy could tail down to $5 million to $6 million a quarter in the second half of the year?

Yes.

Very good. Thank you very much.

Thank you.

Thank you. [Operator Instructions] And we do have a question from Tracy Young with Evercore ISI.

Yes, hi. You made a comment about Slashdot and the loss of a client. Did that happen this quarter? And how shall we think about Slashdot for the full year? Thanks.

It did happen this quarter, so it was related to a - one of their largest customers who sold a portion of their business and there was some specific advertising that customer was doing related to that business that they sold. So that business effectively, it was gone for I think Q1, it’s effectively gone moving forward given what the customer did. Now, Slashdot’s off obviously working to try and replace that revenue with other customers, but that discreet of business, you can think about that as not there.

Okay, thank you.

Thank you.

Thank you. And the next question comes from Bill Sutherland with Emerging Growth Equities.

Thanks. Hey, Mike, I wonder if you could help us just, maybe, step back a little bit in terms of the IT market, both here and for IT Job Board. And we've - we all know how tight it is and how tough it is for employers right now and just if you could give us some sense in terms of turnover and the factors that really impact your business? Because it would seem to me that you might be seeing a little more acceleration there than you are in Dice itself. Thanks.

Sure, so turnover is high. We’ve talked about turnover and how significant turnovers to our business for a long period of time, it took a long time coming out of the recession for turnover to bounce back in professional and business services, which now has for a period of time. So generally that’s good for our business. The unemployment rate in tech is now below 2% I believe, it fluctuates between below 2% and above 2%. The unemployment which is full employment were full employment, as much of our economist - an unemployment rate where essentially as people look forward to it, any unemployment in tech is voluntary. So you have to want to not be working now to not have a job in technology. That unemployment rates that low are not ideal for our business because the need for using services like ours declines at a certain point when there’s full employment because you don’t have that rate of activity. Now, the amount of activity on the side continues to be pretty healthy and I think it demonstrates the value that we have as a career management tool, I suppose just place people go to get jobs. But you’re seeing a role in technology in especially in the harder areas, people are getting jobs and employers are finding people offline. So they’re doing through referrals and doing it through other means besides using services like ours. So ideally from a step back standpoint and looking overall, the unemployment rate at the level of this is again not ideal or slightly higher unemployment rate where there’s more need for our services would be a better scenario for us, that’s in the US. In Europe it’s lesser, so it’s mixed obviously through the different market we operate in. We’re in UK, Germany and the Benelux countries and the employment situation is similar although not identical. There from our standpoint, we’ve seen some growth in the tech business outside of North America, but the competition for us is stiffer over there because there are more direct competitors to the IT Job Board. And one of the reasons why we’re relatively focused on rolling out the Dice brand and Dice platform into those to market to supplement what we have in IT Job Board is because we think the user experience will be improved, which should allow us to better compete with those direct competitors over there.

So, when you look at this cycle, compared to past cycles, do you think the turnover, voluntary turnover, is as high as you would expect it to be, given the - just the current status of the market, the IT market? Because it seems that the turnover might overcome this issue, because I understand this unemployment issue, and how that inhibits growth.

Yeah, I think it’s a tale of kind of two ends of the spectrum, alright. So as we describe it, if you’re closer to the customer, the need for you is much greater. So developer is on the front end. The further you are away from the customer, the more risk there is and there’s slightly higher unemployment rate there is. That’s the bulk of technology in the US, there’s about six to seven million technology professionals in the United States and while, what happens in Silicon Valley and Silicon Alley and some of the other hot funding development tech markets gets a lot of press, but the majority of the employment in technology sits farther away from the customer and that’s the one that has most risk to it. As you get more cloud computing and more SAFS and IAS providers - that market doesn’t have quite the velocity that the developer market does.

Right. Okay, that's helpful. I wondered - last thing - if you could give us a little more color on FreshUp? Kind of how it - well, just how it works and the expected impact. Thanks.

Sure, FreshUp, which we’ve talked about in the past is a product that has been developed out of the original Open Web technology infrastructure, essentially what the FreshUp product does is, it takes publically available information, aggregates profiles and can be used to freshen up databases of clients. So as we’ve talked about before and we haven’t talked about it a lot yet because it’s still in my view not a business yet, it’s a little product, which we’re trying to develop into a business. The usage for that would be like customer lists of tech marketers, that could be periodicals or publishers who have customer list that are dated and you can use the publically available that we’ve aggregated into profiles to freshen up your customer lists. And so we’re in the process of building strategic plans around how we make that product into a business. So at this point that’s all we have to say about it, it doesn’t generate much revenue. It does generate some revenue, but not very much, but it is a key initiative for us to determine whether there’s actually a business there. We’re pretty excited about it.

I'm sorry.

Sorry?

It's not a subscription, is it?

It’s not a subscription, it could be overtime, but it is a product that’s sold today on a one off basis to let’s a publisher to freshen up their list.

Right. I get it. Thanks a lot.

Thank you. And as there are no more questions at the present time, I’d like to turn the call back over to Jennifer Milan for any closing remarks.

Thank you for your time this morning and your interest in DHI. Management will be available to answer any follow up questions you may have. Please call investor relations at (212) 448-4181 -