Good morning, and welcome to DHI Group, Inc. first quarter 2017 earnings conference call. [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, Andrew. Good morning, everyone. With me on the call today is Mike Durney, President and Chief Executive Officer of DHI Group, Inc.; and Luc Grégoire, Chief Financial Officer. This morning, we issued a press release describing the Company’s results for the first quarter of 2017. A copy of that release can be reviewed on the Company’s website at dhigroupinc.com. Also a copy of the presentation of today’s call will be available on website after the call has ended. Please note that if you’re listening to call by phone, you may experience a slight delay after the transition of each slide. 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. The 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 here due to changes in economics, business, competitive, technological and/or regulatory factors or our ability to execute our tech-focused strategy and a review of potential dispositions of certain of our businesses and the terms and timing of such transactions. 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 and the sections entitled Risk Factors, Forward-looking Statements, and Management’s Discussion and Analysis of Financial 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; adjusted EBITDA margin; free cash flow; 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 with the SEC, both of which are available on our website. With that, I’ll turn the call over to Mike.

Great. Thanks, Brendan, and welcome and thanks for joining us today. So, on today’s call, I’m going to provide an update on the conclusion of the strategic alternatives process, discuss our tech-focused strategy and give an update on some of our initiatives. Then, I’ll turn the call over to Luc, who will give an update on the financial results. And then we’ll open the call up to questions. First, given the number of developments of our Company over the last six months, I’d like to start with an overview of our recent path and where we stand today. So, let’s start by recapping the strategic alternatives process, which we announced in November 2016, and concluded last month. To put that process and outcome in proper context, it’s important to understand the backdrop around the decision to explore strategic options. Last summer and into fall, while we were engaged in the internal strategic review that ultimately led to our tech-focused strategy, LinkedIn, Monster and CareerBuilder all announced that they had been sold or exploring strategic transaction. Given the significant level of M&A activity in our industry, coupled with our refined focus, the Board determined that it is in the best interest of our shareholders to explore options for on an alternative ownership structure to optimize shareholder value. We and our financial adviser, Evercore, conducted a thorough process that generated interest from a number of strategic and financial parties, and at the same time, validated our tech-focused strategy. Ultimately, the Board’s determined that the Company’s shareholders are best served at this time by remaining as an independent company and continuing to execute the Company’s strategy. For the foreseeable future, we’ll be an independent company, determined to grow the business and enhance shareholder value. Our vision is to be the leading global provider…

Thanks, Luc. So, in summary, we understand the competitive challenges we have and we know what we need to do to turn the business. I think the refined focus will benefit all of our initiatives. Focusing on increasing engagement with professionals and providing them more services is critical for returning the business to growth. But we have a unique set of assets and unique data, and we can capitalize on that to grow the business, but it will take some time. We’re absolutely focused on it as an organization. In closing, I just want to thank all of our employees for their hard work and dedication. We have a passionate group who are committed to turning the business around, and I want to thank them. And with that, we’ll turn it over to questions.

[Operator Instructions] The first question comes from Kip Paulson of Cantor Fitzgerald. Please go ahead.

Good morning. Thanks for taking my questions. Just a couple for me. For guidance, you mentioned, you expect the year-on-year rate of revenue decline to abate later in 2017. But comparing this to prior quarter where you mentioned the rate of decline would be less than half of 2016 loss, do you expect it to be more than half now? Just some additional clarification there would be helpful. And then, second, could you give us a sense of Open Web additions within the existing user base versus new DHI customers that have signed up for Open Web? Have we reached that point where Open Web is the primary value proposition for Dice subscribers? And when does this offset downward pressure in the legacy products? Thanks. Luc Grégoire: So, hi, Kip; it’s Luc. On the guidance, we feel, I guess, with the first quarter and with the experience of that, we see that the business is progressing, but there are some hesitancy that took place. You saw the renewals were at 65% in the quarter. So, we see that growth coming, we still see the progress and it’s going to come but probably a little later than we had anticipated last quarter.

And so, Kip, on the Open Web question, the majority of the -- the vast majority of Open Web customers are sold to existing. But it does help win back customers, who may not have renewed in the past as another offering and another way for them to enter the tech recruiting market. So, there are win backs we get from Open Web, but the vast majority are customers that we already have and have had on Dice. And just, sorry the last question, can you ask again?

Yes, just as far as when we’re thinking about the Open Web value proposition here, when does the addition to the business really offset downward pressure in legacy products? How do you think about Open Web offsetting those more legacy traditional declines?

So, I think one of the things that we’re focused on in Open Web is expanding the opportunities within existing customers. So, we have a number of customers who are new to social recruiting and want to try it. So where we have customers that may have a significant number of users of Dice in the proprietary database; they have fewer users who are subscribed to and have access to Open Web. So, they don’t have the ability to do the search that combines the two, an integrated search. Over time, we expect further penetration of Open Web. I don’t think it’s this year. To literally answer the question, I think it’s into next year.

Okay, great. And then, just one more, if I could. The ClearanceJobs has really been a consistent double-digit grower for you guys for a while. Are there any learnings from the clearance business that you’ve already applied or can apply to the core Dice business?

So, that’s a great question. There is some amount of uniqueness to the security-cleared business as we say often; it has certainly benefited by having supply and demand driven by the same entity, the U.S. government. Although as a reminder, the vast majority of our customers are not the government but are contractors for the government. But, the government certainly aides by slowing down the clearance process and creating a supply issue. There are a handful of things we’ve learned. Certainly, variable pricing and pay-for-performance type products, which we’ve integrated into the Dice offering and more usage-based structures, certainly come from ClearanceJobs. So, there is some learning, but ClearanceJobs is the unique product for the reasons I mentioned.

[Operator Instructions] The next question comes from Jafar Azmayesh from 1776 Holdings. Please go ahead.

Good morning, guys. Thanks for taking my question. It relates to the suspension of your buybacks. Will you help us understand in the past, last year for instance, $30 million was put to buybacks, all from free cash; is the estimate now that there is no free cash or where is that free cash going? You mentioned investing in the technology first, that I’m trying to make the numbers add up here. Help me do that.

Sure. So, we expect to have free cash flow this year. So, there is no change in that view and we had free cash flow in the first quarter. As we refine the strategy and hone in on the tech-focused strategy, we’re focused on investing in that business. And that’s the primary goal. But we will leave open the possibility that there may be buybacks in the future. But it’s not what we’re focused on right now. But to be clear, there is free cash flow.

Okay. So, I guess, I’m still trying to pin down, what is exactly the plan with the free cash flow. You guys came out of the strategic review and we’re new to the name; we just started building your position this quarter. So, maybe there is lot we’re missing. But it’s came out of the strategic review with the conclusion we’re not going to sell ourselves and we’re going to suspend our buybacks, which is the first time we’ve seen a conclusion like that. And from there, you’ve mentioned, we are going to invest in a business, which is great, except I don’t see where this free cash flow is going to be put towards investing in the business. Help us understand, is it going to be debt pay down; is it going to be acquisition; is the track record there has not been terrific? Help an investor get comfortable with where the free cash is going to go?

So for now, we’re leaving it as a fair amount of flexibility, it could be debt paydown. But it could be partnerships or investments where we get access to new products and new services. For instance, we made a small investment in HackerEarth to help accelerate the growth of that business and benefit the partnership we have with them. That’s one example, one tangible example. So, I would view it now as flexibility and we will see as we go through the year, the rate of free cash flow growth, and we will make the decision as we go along.

Okay. So, the idea is maybe an update by the end of the year on that front?

I think you’ll hear periodic updates from us. I don’t think it’s end of year. I think we’ll assess as we go along as we always have, where we have opportunities to expand our offerings, whether we do it organically or through partnership or investment. So, I don’t think -- at the end of the year, I think we’ll give periodic updates. And we’re happy to do it as we go along.

The next question comes from Kara Anderson of B. Riley & Co. Please go ahead.

Hi. Good morning. Just one for me. Given the competitive environment, can you talk about your strategy for pricing at Dice?

Sure. So, we have certainly become more flexible in the types of packages we offer. We have added with the advent of Open Web, we’ve added more view-based pricing as opposed to fixed pricing per user. So, there is a fair amount of flexibility. We’ve created more entry-level packages. But at the end of the day, where we are now is, what we’re yielding per customer the range from the smallest customers to the very biggest customers, is roughly in the range that we’ve been in. So, it’s $1,100 plus, and that’s been relatively consistent for the last year. So, I would say, we’re more flexible on the types and structure. But the yield is roughly the same.

Thank you.

This concludes our question-and-answer session. I would like to turn the conference back over to Brendan Metrano for any closing remarks.

Thank you, Andrew. We appreciate everyone’s interest in DHI Group. If you have any follow-up questions, you call 212-448-4181 or e-mail ir@dhigroupinc.com.

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