Good morning and welcome to DHIs Third Quarter 2015 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [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.

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 third second quarter 2015. 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 contains 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 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 excluding Slashdot Media, adjusted revenue, adjusted revenues excluding Slashdot Media, net income excluding Slashdot Media, adjusted EBITDA margins, free cash flow and net cash to net debt. 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 Jen. Welcome to the DHI Group second quarter earnings call. This morning we will update you on our progress on improving our operations and further advancement we've made on our strategic plan and at the end of our remarks we'll be happy to take questions. Overall we're pleased with our third quarter performance which reinforces the strength of our diversified business model. We saw continued success with Open Web and a number of our new and emerging products performed well all of which are encouraging signs of the work we've been doing to improve and evolve our products is beginning to yield results. We also made some further operational and structural changes in our organization that continue to strengthen our foundation and align our resources for growth. To date we made real progress against our strategic plan and we continue to work to elevate our business across all of our brands. As we work to strengthen our vertical leadership and our sectors deepening relationships with our customers and the professionals who use our services is a top priority. In this regard we continue to improve our core products in order to deliver challenge to our customers most efficiently and make their equipment process as effective for them as possible. Today we are also providing more ways to engage with professionals in nontraditional ways which has enabled us to expand our relationship with customers and is leading to increased engagement with our services. As we described during our Investor Day and again on our second quarter call, we're focuses strategically on three primary areas where we believe we can play and win; talent acquisition, sourcing management and career management. Within the overall talent acquisition and landscape we continue to believe that sourcing will continue to play an increasingly important…

Great, thanks Mike. I will review the details of our Q3 financial performance and then we will open the call up to questions. As previously mentioned, we are in the process to sell the Slashdot Media business, so where appropriate I will speak to our financials excluding that business. We believe it is important to present our financial results and expected financial performance excluding Slashdot Media operations in order to portray a more accurate picture of the ongoing operations of DHI. Overall we're pleased with the continued progress we made in our operations during the third quarter despite ongoing headwinds within the energy market and from foreign currency translation. For the third quarter I want to highlight a few areas that are important to our results. One, revenue growth in all of our core businesses on a constant currency basis with the exception of energy; two, higher year-over-year revenue per recruitment package customer at Dice reflecting the positive impact of Open Web and other new products as well as increased service levels by customers and three, solid free cash flow generation while we continue to invest in innovation for future growth. During the quarter we used free cash flow to both reduce net debt and return cash to stockholders with the repurchase of approximately 1.2 million shares of our common stock. Overall third-quarter adjusted revenues excluding Slashdot Media decreased 1% year-over-year on a constant currency basis. This reflects growth in most of our operating segments that was offset by the decline in the energy segment. Excluding energy and Slashdot Media revenues increased 6% year-over-year on a constant currency basis. As I discuss the specific segments I will compare Q3 revenues on a segment basis to adjusted revenues from last year where appropriate. As a reminder, adjusted revenue adds back the…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] And our first question today comes from Doug Arthur of Huber Research.

Yes good morning. Two questions, the product development investments sort of accelerated in the quarter to an all around 22% growth. How do you see that playing out through 2016, I know you have a lot of new products in the pipeline through pretty much throughout the portfolio and then any comment on currency expectations for the fourth quarter would be helpful? Thank you.

Sure. So I’ll start Doug and Mike can enhance. So on the product development, I think what you saw on the quarter is that as we continue to build out the product development and technology teams across the organization what we’ve been talking over the course of the year that we’ve been a little bit behind in terms of hiring there. So you saw a little bit of catch up there in the quarter along with some costs related to really integrating the oil careers website into the RIGZONE as we kind of finalized the rebranding of that segment. So that’s really contributing to what you’re seeing in terms of the cost flowing through in the quarter. I think in terms of product development and investments moving forward, what we’ve been saying over the course of this year which is still a case is that we look at the investments we’ve been making certainly in Dice and Open Web, I think moving forward we expect to get some return on those investments. We are kind of guiding exactly where we’re going to be with that on 2016, I think that is generally where we’re moving towards. Second part of the question was related to FX right. So I guess in terms of expectations for Q4, I mean I think we’re still going to have impact related to FX in the quarter if you look at where the rates were in Q4 year-ago versus where they are now and what kind of most forward contracts we’re saying for FX rates moving through Q4, I think we’re still going to be impacted as we move through the fourth quarter.

Okay. Thanks a lot.

And the next question will come from Tracy Young of Evercore.

Yes hi, I was just wondering if you could talk about the market environment in Europe and what you’re seeing – you obviously had some improvement there on the tech side?

Sure. So I think – I think overall the market hasn’t changed very much. I think our performance has been enhanced as we have integrated Dice with the former IT Job Board which is now Dice Europe. So I think our own operating performance in that market – in those markets specifically in the UK and the Netherlands and Germany over the last year we’ve made a number of improvements. So I think the overall environment is probably roughly the same, but I think our operating execution has been on the continued improvement pattern. That is see where you see the growth come from.

Okay. And then looking ahead for Q4 in terms of the energy segment, when do you think are you seeing bottom – what do you see in terms of the market there?

So I would say the market continues to be really rough for us. I don’t think we see any near term improvements as I mentioned earlier. There are a handful of signs and I would say it is more handful, where customers now think that they have cut too much in terms of their recruitment activities and they’re starting to think about leveling off and coming back at a higher level, but those are few and far between. I think from our own operating experience there tends to be a lag both on the downside and the upside and we saw that in the previous downturn in 2007 and 2008 and then the comeback in 2009 through 2010 where there is probably three to six months lag. So if you go back right about a year ago from now is when the steep fall started. So somehow the customer contracts that we put in place in Q4 for calendar year 2015 reflected reduced demand. We’re anticipating that there could be some further reductions from some of those earlier contracts that didn’t fully right-size. But I think then you’ll start to see the year-over-year performance from individual customers will start to level off coming out of the fourth quarter and into 2016. So I think you’re going to see a little bit of a mix, but we don’t believe it’s going to get better in the very near term.

Okay. Thank you.

[Operator Instructions] And our next question comes from Youssef Squali of Cantor Fitzgerald.

Yes thank you. Good morning. Two questions please. Mike, in your prepared remarks you talked about the consumer experience have been improved throughout the year and particularly this quarter because of some things that you’ve done. I was wondering if you can maybe help share some key metrics around maybe usage and retention, again not on the customer side, on the paying customer side, but mostly on the user side? And then on the - you also talked about how you should – we should expect better financial performance in 2016, I was hoping you maybe provide some more clarity just around how you see 2016 meaning is the trend that you’ve seen so far this quarter effects adjusted tech and finance growing mid-single digits is something that should be sustainable into next year. I know you’re not guiding just yet, but just philosophically how you look at the growth and your budgeting for next year? Thanks.

Sure. So on the first one some of it is qualitative and some of it is quantitative and some of it is anecdotal feedback we get from users, professionals who use our services across the broad spectrum. But if you take for instance on the Dice side the number of applications and the rate of applications has been increasing during all of 2016 as we’ve made the process for engaging with job postings and for actually applying job postings easier. So the rate of applications is varied, but it’s been up year-over-year kind of at the 30%, almost 30% range. The number of first time searchable resumes or profiles has increased relatively significantly during this year to the point where at various times it’s almost over 100,000 in the 90-day bucket. So we’ve seen a level of activity and a level of engagement across the board those are specifically on Dice. On RIGZONE there is probably a mix between the overall market conditions and what happens in the downturn from engagement standpoint but we’ve made a number of changes in the service including on RIGZONE launching for the first time, detailed job alerts that users can create on their own, where in the past we did all the searching and sent job notifications from the site, now people can do it on their own. So, we’ve seen an increase in engagement in people doing search alerts, so there is a number of things, both qualitatively and quantitatively from a user experience standpoint. Having said that, there is more to do and we continue to focus on each of the brands with increasing the usability and efficiency with which people interact with our sites.

So Youssef, I will take the second part of the question in terms of looking out to 2016 we’re obviously not guiding towards 2016 as we sit on the call today, but I think as we look at the trends that we see in Q3 we’re starting to see a number of positive signs through a number of different brands and you see that reflected in some of the revenue growth rates, you see that reflected in margin expansion and some of the core segments that we have. I think as we sit here today and as we look out into Q4 and look on 2016 our expectation is that those trends would continue as we move into 2016 and I think we’ve been saying over the course of this year as we move into next year and out past next year that yes margin expansion is certainly something that we have expect based on the investments we were making. I think that certainly improvement in the energy market would help although we're not banking on that in 2016 as Mike said and I think the third broad area, looking out into 2016 is really the broad suite of new products that we have been talking about over the course of the year. So, Mike mentioned a few, today in his remarks we have talked about shift, he mentioned Spotlight. We have talked about Open Web quite a bit. We have talked about some of the other new products at the Investor Day backs a number of months ago. So I think as we start to get more traction from that suite of products, well the revenue contribution probably won’t be huge in the beginning part of 2016. Our expectation is that we will start to see some benefit from those as we move through the year.

And just one follow up if I may, can you comment just broadly speaking on the competitive landscape? There have been some newer entrants in this space that are kind of attacking this market from interesting angles like Glassdoor and a few others. I was wondering if you are seeing increase in the competition out there or do you feel that the space has not really changed all that much?

Yes, I think the competitive of landscape this year or probably the past 12 to 18 months has been really interesting for us. The core traditional competitors are still that core traditional competitors LinkedIn which we always talk about as our most important competitor, that hasn’t changed. They do a fabulous job in some respects. We think we do a fabulous job in other respects and we have a nice place in the market as it relates to them. I think the traditional generalist Monster Crew Builder, StepStone, Totaljobs, Seek all continue on this same path. I think from an aggregator standpoint the aggregators continue to be more and more important in the marketplace although our belief is that they have a more dramatic impact on generalists then they do on specialists and we continue to drive usage within our sites as a destination without the reliance on the pass-through. So I think from a competitor standpoint those are all broadly the same. I think as you pointed out and we've said this before including on Investor Day one of the things that’s happened over the last 12 to 18 months as you have a lot of new start-up competitors that given the availability of financing which has been plenty for over the last 12 to 18 months has given them life and I think given the market there is much more willingness to trial those. So we certainly see that in the tech business. Those startups continue to be relatively small and we think that our size and our historical presence of the market gives us an ongoing advantage, but they have been there and it is been helped by the fact that there is financing and the willingness to trial.

Thank you.

And next we have a follow up question from Doug Arthur of Huber research.

Yes, that was pretty much my question on the competitive landscape. I mean, I think if you look at the - I mean your comment about the traditional job boards sort of maintaining more the same I think they might take exception to that just given the big deal they made about their transformation to sort of the golden SaaS model sort to speak sometime down the road. But do you feel, by they specializing in sort of all these niches that is next word in that, that incremental approach can remain buyable and competitive over a 5-year plus period and where you got some pretty large competitors changing their stripes.

Yes, so Doug it’s a great way to phrase it and thanks for the clarification. I so let me refine a little bit what I said. I think in our core businesses is what I said I think holds, I think from a traditional provider of the services we provide and that Monster and Crew Builder and them Hot Jobs and Seek StepStone, Totaljobs and others as generalists provide, that hasn’t changed very much. I think CareerBuilder specifically has done a great job of expanding its horizons. So they now get into places in the marketplace where we don’t actually compete. So I think you, they would take exception I think would be fine because I think they may take exception because they are expanding their horizons outside of things that we focus on. I think from the core what we focus on I don’t think the competition has changed very much.

Okay.

From them, sorry just to be clear.

Right, right.

[Operator Instructions] Yes and showing no further questions, I would like to turn the conference back over to Jennifer Milan for any closing remarks.

Thank you for your time this morning and for 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 to be placed in the queue. Have a great day everyone.

The conference is now concluded. Thank for attending today’s presentation. You may now disconnect.