Good morning and welcome to DHI’s Fourth Quarter and Full Year 2015 Earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. 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 fourth quarter and full year 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 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 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 revenues, adjusted revenues excluding Slashdot Media, net income excluding Slashdot Media, net income excluding impairment of goodwill, diluted earnings or loss per share excluding impairment of goodwill, adjusted EBITDA margin, 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. So welcome to the DHI Group fourth quarter earnings call. I want to start out with a summary of the areas of human capital management sector, where we compete and where we think we can play a role, and then summarize how we’ve organized ourselves to adjust to those markets. Then I’ll give an update on the progress we’ve made on our strategic goals and where we think our business is today, and then John will provide detail on the fourth quarter financial results and our first look at 2016. At the end of our remarks, we’ll be happy to take questions. As we look back on 2015, a lot was accomplished in building a stronger foundation. We improved our existing products and introduced new ones. We tooled our sales and marketing organizations of some of our brands and enhanced the overall value we provide to customers. We had a lot to do internally to move the organization forward, and we have made progress on that front. I’m excited to look ahead. As I think about 2016 and beyond, I see the foundation laid for the next iteration of our company. As we outlined at investor day, there are three areas where we can compete to win from a strategic perspective. One is talent acquisition, two is sourcing management, and the third is career management. I’ve said many times that there is a shift happening in recruiting and hiring. Customers continue to look to non-traditional ways to find and interact with professionals, and as we start to provide them with innovative tools, they’re responding. In addition, companies realize that they need to do more than just advertise a job listing when the opening become available and expect the best response to be solely applications to that job…

Great, thanks Mike. I’ll review the details of our fourth quarter financial performance and then we’ll open the call up to questions. As we announced last week, we completed the sale of the Slashdot Media business so where appropriate, I will be speaking to our financials excluding that business. Overall, we continue to make progress on our operations during the fourth quarter despite significant declines within the energy market and the negative impact of foreign currency translation. This progress builds on the work we have completed throughout the year and continues to reinforce our foundation as we move into 2016. For the fourth quarter, I want to highlight a few areas that are important to our results: one, revenue growth in all of our core segments, with the exception of energy; two, higher year-over-year revenue for a 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 revenue growth. During the quarter, we again used free cash flow to return cash to stockholders with a repurchase of approximately 1 million shares of our common stock. Overall, fourth quarter adjusted revenues, excluding Slashdot Media, decreased 1% year-over-year on constant currency basis. Additionally excluding energy, revenues increased 5% year-over-year on a constant currency basis. This reflects growth in each of our other operating segments. For the tech and clearance segment, revenues increased 2% year-over-year. Within that segment, Dice U.S. revenues, which comprise 84% of total tech and clearance revenues, were effectively flat. At December 31, Dice recruitment package customers were approximately 7,600, which is slightly lower than the count at the end of the third quarter. About 93% of those 7,600 recruitment…

[Operator instructions] The first question comes from Youssef Squali with Cantor Fitzgerald.

Yes, good morning. Hi guys. Maybe can you just go back to the Open Web comment that you had. I think you mentioned that the Dice Open Web increased 67% on the year, so can you just remind us what the penetration of Dice’s customer base is with that product? And just to be clear, there is no price change - the increase in ARPU is just a mix shift, correct? And then I have a follow-up.

Yes, so Open Web is in the ballpark of 1,000 customers, total customers on our base of 7,600, so you have a penetration of about 15%, somewhere in that range. And I’ll take the revenue just because I’m speaking - the impact to revenue is--you’re right, there’s no pricing change. It’s a combination of customers taking Open Web, right, so that generates between $3,000 and $5,000 and up for the 1,000 customers that have it on an annual basis, together with customers on average buying greater levels of service than they have in the past. Those are the two drivers.

Okay. Any idea over time how--what kind of penetration can you get to, now that you’ve had the product for over a year?

So I think it can be meaningfully higher than the 15% it is today, although there is a significant number of customers if you look out over 12, 24 months who will not spend the time and invest the energy in sourcing. It’s just the nature of how they use the product, so it will never be, I would say, greater than 15% but we think there’s a fair amount of room to run. I think the bigger issue for us is it opens up avenues to get new types of customers, so we can focus on the penetration of the existing 7,600 but I think more importantly over time, it opens avenues to get other types of customers.

Thank you. On the new products, I think you said getTalent will be launched within the next few weeks. Can you maybe just help us understand the value proposition there and how it’s priced?

Sure. So getTalent is a SaaS-based product, and it’s really designed to give companies a place to accumulate and aggregate their sourcing leads from a variety of places, so one of the places obviously is from our seven core talent acquisition brands, also from Open Web, together with other places that may have gotten from other sources online, from job fairs, career fairs, their own website. The value proposition essentially that we provide is to give companies an avenue for marketing their companies from a recruitment and employment standpoint, together with jobs through a variety of channels, and one of the unique value propositions we believe we have is most of the other services, if not all of them, focus on email, and we are focusing on a number of different avenues for communication. The other unique value proposition is using our Fresh Start product where we take the Work Digital data, we can take sourcing leads that companies have from other places that they may have accumulated over a period of years and update those based on having fresher data and provide that value of now having a new way of accumulating skill sets and interests and communication methods with those candidates.

And how is it priced?

So we’re working on the pricing now. This is a product--if you look in the marketplace today, the products that exist go anywhere from $50,000 to $200,000 a year. We are focused initially on a subset of that whole market, so you can think about it in a range of somewhere below $50,000 to $50,000 and above. We’re still working on the pricing - we’ll have introductory pricing, so we don’t want to set any expectations from a revenue standpoint today until we are into the market, but that’s the range that the market is today.

Great, thank you.

Thank you. The next question comes from Doug Arthur with Huber Research.

Yes, just really one question on the guidance. John, you talked about the impact of currency mostly on finance. You had 10% constant currency growth in the fourth quarter. You’re guiding toward down 1 to 2% up for ’16, so any sense of what that would look like on a constant currency basis, because it seems like you’ve got decent momentum there.

Yes, I think we do have decent momentum there, and you see that--as you noted, reflected in a constant currency growth in the fourth quarter. Based on where rates are today and looking out to forward rates, which are a little hard to predict certainly as you move out into the second half of the year, we think the overall FX impact on revenue for the year based on today’s conditions is going to be about $2 million in the year. It could be a little bit higher than that, but around there, and the majority of that is within the finance segment.

Okay, so I guess another way of asking the question is are you--given what’s going on in the market globally, is there a little bit of caution built into those growth rates, or not?

No, I don’t think so. I think what we see now, we expect to continue through 2016. I mean, if you look at the rates and kind of what’s happened just recently in Q4, we saw more of an impact in Q4 due to currency than we expected certainly going into the quarter. Again, the primary rate that’s important to us is the GBP to the dollar, so if you just look at what’s happened there in Q4, you can look at a pretty dramatic impact.

Okay, great. Thank you.

Thank you. The next question comes from Tracy Young with Evercore ISI.

Hi. On that Spotlight branding product that you’ve rolled out for the healthcare sector, could you talk a little bit about that and what you think the proposition is there? Then in terms of the reorg for the global brands, should we expect more reorg on the financial side as well? Thanks.

Sure. So let me answer the second one first. When we talk about the organization, what we’ve essentially done is taken those four brands and put them into one organization, with the head of that group, head of sales and head of marketing, head of client services, head of product and head of technology for those four brands as one unit. So I don’t think you’ll see reorganization specifically in any one of the verticals. I think you’ll see the best people taking on leadership roles that stand before, so that will have a natural impact throughout the organization in terms of people and headcount but I don’t think you’ll see reorganizations. So I’ll leave it at that and see if that answers the question when I go back to the first one. So on the Spotlight product, Spotlight generally speaking is really focused on the concept of recruitment marketing, so we are helping companies in the healthcare sector, which is a sector that historically has been relatively far behind in terms of maturity in digital recruiting, so we’re really pushing that sector forward in promoting hospitals and other medical organizations and recruiters as places to work, places to be recruited for, so there’s different elements of the Spotlight. One is very simply just creating a section on the site that helps companies purely market their organizations as opposed to posting jobs purely. The second I mentioned briefly - employee reviews, and association that we have with the organization Great Places to Work, we can publish on an aggregated basis reviews of companies as a place to work through our association with them. We’re also adding other elements - native advertising elements, videos, blogs, and other things that companies can do in association with us to further promote themselves as a place to work. I hope that answered the question on the first one.

Yes, thank you very much.

Thank you. Once again, to ask a question, please press star then one on your touchtone phone. The next question comes from Randy Reece with Avondale Partners.

Good morning. First of all, I wanted to try to get a handle on what you think the sequential trend in energy is going to be this year, what you’ve assumed in your guidance, if you think it’s going to bottom out at some time in the middle of the year or just continue to taper down.

So Randy, from an overall standpoint, and you can see it in the growth rates that we have in the guidance, from an annual standpoint we expect energy to go down 35% or so roughly again from ’15 to ’16. If you look at the trend through the quarters in terms of what’s implied in the guidance, based on what we have out there for Q1, that would assume some level of relative stability as we move through 2016, but the market is still very tough, as we’ve said. It’s volatile, it’s harder to forecast than the other segments for sure, so it’s hard to sit here and say we’re calling a bottom in the energy market. But the guidance does not assume that it goes down dramatically on a quarterly basis from where it sits right now.

I think just to supplement that, I think from a usage standpoint - again, to build on John’s timing, we’re not trying to predict the timing - there is a point where recruitment activity will bottom, almost no matter what the price of oil is. It went from $100 to $80 to $60 to $40 to $30, it’s been below $30. At $20 and $15, there is still some level of recruitment, so the bottom from an activity level standpoint will come relatively soon - not predicting when. I just want to make that clarification. The size of contracts certainly impacts revenue performance, but there will be some recruitment activity and we believe we’re getting close to the bottom.

For this segment that you’re calling BrightMatter, you’ve identified a $7 million to $8 million drag on adjusted EBITDA this year. Can you give a number for what that was in 2015?

Yes, so it’s about an additional $5 million negative impact to EBITDA in ’16, so think about it as another roughly $5 million of investment in ’16.

So that’s a concerted step-up in spending?

It is.

Yes, and it’s designed around a handful of specific products which we’ll bring to market and evaluate what they do. The getTalent--you know, we’re right on the cusp because we’re ready to bring getTalent to market. I’m optimistic that that product will be a meaningful part of our business in a couple of years - not giving guidance, not saying when because it will take some effort, but there’s a place in the market for that product, and when I look at the business and how the business unfolds over the next couple years in terms of our seven core talent acquisition brands, and then the other things we’re doing, getTalent should be a meaningful part of the overall company, so that’s how we’re thinking about the investment. But we’ll monitor it and we’ll assess the market as we go along.

If you could give us a sense of what the additional spending is going to, how much of it is, let’s say, product development expenses and how much would be building the sales and marketing effort, and are there any other expenses beyond those?

Sure, so most of that is building the product and initially bringing it to market, so the marketing effort and promotion around it. From a sales standpoint, what we’re planning on doing is having a dedicated sales force of a handful of people and leveraging the 200 sales people we have across the talent acquisition brands globally, so we may go to market with them in supplementing what we do in those core brands, and we may use some of those people more, dedicated more full-time to getTalent. It really depends on how the market adapts to the product, but the majority of where we’ve made the investment decision in 2016, coming out of 2015 and into ’16 is to literally build the product.

All right, very good. Thank you.

Thank you. This concludes our question and answer session. I would like to send the call 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.

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