Good morning, and welcome to DHI's Fourth Quarter 2016 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 Brendan Metrano, Vice President of Investor Relations. Please go ahead.

Thank you, Keith, and good morning, everyone. With me on the call today is Mike Durney, President and Chief Executive Officer of DHI Group Inc.; and Luc Grégoire or Chief Financial Officer. This morning, we issued a press release describing the company's results for the fourth quarter of 2016. A copy of that release can be reviewed on the company's Web site 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 in the statements herein due to changes in economics, 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 and quarterly report on Form 10-Q in the sections entitled Risk Factors, Forward-looking Statements, and Management's Discussion and Analysis of the Conditions and Results of Operations. The company is under no obligation to update any forward-looking statements except where it is required by federal securities laws. Today's call also includes certain non-GAAP financial measures, including adjusted EBITDA; adjusted revenues; net income, excluding impairment of goodwill; diluted earnings or loss per share, excluding impairment of goodwill; adjusted EBITDA margin; free cash flow; and 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 Web site. Now I’ll turn the call over to Mike.

Great. Thanks, Brendan and good morning everyone and welcome to DHI Group's fourth quarter earnings call. Today I'll start off with an overview of our performance in the fourth quarter and update on our tech-first strategy, then I'll turn it over to Luc who you may recall joined our company as CFO in November. Luc will provide a financial update and discuss key operational metrics and our outlook for the business. But first a brief update on the strategic alternatives process we announced with our third quarter results. In November we engaged Evercore to explore our strategic alternative for our company. The process is progressing as we had originally planned and we are right in the middle of it now. Of course there is no assurance that it will result in a transaction, but with that said, we remain committed to the interests of our shareholders and believe the tech-first strategy we are embarking on will benefit our shareholders regardless of ownership structure. So turning to our business, 2016 was certainly a challenging year for us as the continued evolution of talent acquisition services, competitive industry dynamics and the few unfavorable macro trends pressured our financial results. At the same time, there were many positive developments going on behind the scenes that made it a critically important and beneficial year for us from a long term strategic perspective. We took a deep assessment of our company and industry and devised our tech focus strategy that we began implementing in the fourth quarter. And so as we enter 2017 we're in a better position from where we stood a year ago. Let me take a few minutes to elaborate on our tech focus strategy. Last quarter we talked about why a tech focus makes sense. In summary, it is a big…

Great, thanks Luc and welcome aboard. It is great to have you as part of the team. Before we turn it over to questions, I just want to recognize and thank our 800 employees around the world. We are a company going through a fair amount of change and we have such a great group working with us and I want to acknowledge the contributions of the entire DHI workforce as we move the company forward. We are all excited about our opportunity and the focus and we're ready to get going. With that, we'll turn it over to questions.

Thank you. We will now begin the question-and-answer session. [Operator Instructions] And the first question comes from Youssef Squali with Cantor Fitzgerald.

Hi good morning guys. This is Kip Paulson on for Youssef. Just a couple from me, first it looks like ARPU at Dice was flat year-over-year in the fourth quarter compared to 2% growth in the third quarter and mid-single digits over the last couple years. Given the adoption of Open Web could you discuss any other impacts or dynamics you're seeing on pricing? And second, how does the Dice Careers app growth of 116% year-on-year impact from revenue growth, how do you think about monetizing this, this positive engagement metric? Thanks.

Sure, so Kip this is Mike, on the ARPU the addition of Open Web which people have to pay separate for with the bundled pricing products we are testing some lower-priced entry-level product. So, that has a slight impact on the overall revenue per customer. So we’ve said for years actually we thought it would flatten and it started to flatten last year and now it actually has flattened. So, it sort of took longer for it to flatten over time, but I think we’re finally there and it’s really about mix of products. The entry level which historically has been 6500 for one user and five job slots where we are playing with that pricing at the bottom level, but a $1100 a month gets you in excess of $12,000 a year on an average, so we finally got there from a flattening standpoint. From a Dice Careers engagement standpoint, right now we don't have plans to monetize directly the engagement on Dice Careers, but it certainly will improve the interaction with the site and some of the elements that we have in the Dice Careers app we plan to bring onto the site itself. And so it’s all about improving the interaction and ongoing relationship with professionals that will improve our service over time from a customer retention standpoint and from a new customer acquisition standpoint. Having said that, we do have an incredible amount of proprietary data based on skills and usage, unemployment and information we get from Open Web which we believe over time we can monetize it’s. It's not the primary focus today.

Okay, great and then just one quick follow up if I could on the Open Web pricing, do you think pricing actually goes down from here?

I don't think pricing goes down. I think as we attempt to get newer customers and new types of customers there may be entry level pricing for new customers, but the pricing level itself we don’t believe will change.

Okay, great. Alright thanks guys.

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

Good morning. I was wondering if I could get a little better idea of the difference in revenue trends just year-over-year comparisons in the domestic Dice versus Dice Europe, trying to get an idea of how much currency might have been a drag versus expectations in the fourth quarter and what the underlying comparisons are looking like in Europe? Luc Grégoire: Yes. Hi Randy. It is Luc Grégoire. The currency really impacted most at eFinancialCareers had about one point of exchange impact on Dice Europe and then and so, very little impact from that exchange standpoint.

Randy, one of the things that Luc pointed our earlier is that we did make a decision towards the end of the third quarter to exit Belgium and the Netherlands. From a Dice Europe standpoint, the revenue impact was relatively small on a broad basis since Dice Europe itself is only about 10% less than 10% of Dice in total, but that did have an impact year-over-year because we exited in the fourth quarter, beginning of the fourth quarter.

And if - we've discussed in the past subscription versus non-subscription revenue in the U.S., has there been any change in the transferred non-subscription revenue?

No, there hasn’t been any change to that trend.

Alright, thank you very much.

Thank you. [Operator Instructions] And the next question comes from Doug Arthur with Huber Research.

Yes, Mike just kind of a big picture question, I mean you guys have been at this a long time, when you sort of pursue this strategic alternative strategy and reposition Dice among other things in the company, what do you think Dice specifically brings uniquely to the marketplace at this point as you look at how the competition has changed over time?

Sure Doug, I think if you blow it down we have a tremendous amount of information, proprietary information about skills and skills specificity. And if you think about the tech market in general so, much of it is based on skills and the evolution of skills which nobody else has. So there is generalist players who certainly have tech pieces of their business, but they don't have the skills specificity that we have. And when you think about recruitment for highly skilled professionals whether they are tech or anything else, efficiency and effectiveness and speed and accuracy, specificity or certainly the elements that they look for and that’s how we compete. So when you, we use examples all the time about somebody looking for a person, a professional with Python what that means if you use a generalist versus a specialist like us or Pig or Chef for laymen in the world they have no idea what those terms mean, but if you are a tech professional, you know exactly what Python and Pig and Chef are. And the efficiency with which we help companies find those individuals, both through the proprietary database and by sourcing others through Open Web is unique in the business. So one of the reasons why we’re so focused on tech-first is because we think that's the place with skill specificity and the ever growing need where we really shine. If you look at the U.S. specifically, today there's roughly half a million or so unfilled tech positions. The BLS estimates by 2020 it will be a million. Now part of that is because just starting our people and part of it's the ever evolving skills specificity that companies and recruiters need. And so that really is where we compete and where we can be effective and then we can leverage that into other services like a recruitment marketing service and employer branding service where you are reaching people as we do to our Lengo service which is built on Open Web where you can reach specifically targeted people with specific skill sets or specific employers and former employers or specific interests. Our ability to combine all those things is unique in the market.

Great. Thank you.

Thank you. And the next question comes from Hamed Khorsand with BWS Financial.

Hi good morning. Just a couple of questions, I'm trying to get familiar here. With the mobile app are you planning to provide any kind of revamp in the product? I mean, I’m looking at reviews and people are saying it's not automated enough and I’m just trying to get an understanding what kind of focus you are putting on the app right now?

Sure. So we, the app has existed for a couple years first in iOS and then Android and originally it was purely a job search app as most employment related apps are. What we've done is started to evolve it and in its early days. We just launched the new version in the spring of last year and we've added certain elements to it, all designed around ongoing engagement. So, clear path, salary information, skills information, so we take the proprietary database we have in terms of relationship skills and we can show an individual, here are the skills you have, this should be your compensation and here are the next set of skills that people like you have and here's what the compensation would be for you to help you chart how you get it. And then eventually we will start to add other elements to how you can develop those skills and refer you to places where you can get those skills or learn those skills, that kind of is in its early stages. So, yes I think from a feedback standpoint, that feedback some of which is quite dated reflects the original app and we're really just in the early stages of developing these new set of services. Having said that, the number of downloads has increased dramatically in the level of engagement as I mentioned earlier has increased almost 80% year-over-year. So we're just getting going and so far we’ve seen tremendous increase in usage.

Okay and then my other question as just I'm trying to understand from your strategy you are putting tech-first right now from the tech job perspective it is a very tight market. I think there was a report saying there are only about 22,000 job openings overall in Silicon Valley. So, I’m trying to understand how you could benefit from that when even employers don't have that many job openings?

Sure, so our overall employment in the tech market has hovered between 2% and 3% for years now, which economists would say is full employment or greater than full employment which by the way is not ideal for us. So, full employment from a marketplace standpoint is not the most ideal sort of circumstances and slightly greater unemployment which creates many more openings, which creates more velocity of change which is what benefits our business would be more ideal for us. But there are a number of openings even if they are not posted and helping companies identify sources of talent over a period of time is how we think we win, not purely when the job is open. And so, one of things that we focus on quite a bit is employer branding and pipelining which is why we created the getTalent product to help companies identify people so, that they have a roster of candidate prospects that they can engage with over time to serve the needs and not purely wait for having a job opening at a specific period of time, at a specific point of time.

Thank you.

Thank you. And as there are no more questions at the present time I would like to return the call to management for any closing comments.

Thanks Keith. Thank you all for your interest in DHI Group Inc. If you have followup questions you can call 212-448-4181 or email ir@dhigroupinc.com.

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