Good morning. My name is Lisa and I will be your conference operator today. At this time I would like to welcome everyone to the Fourth Quarter and Full Year 2018 DHI Group Inc Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. Rachel Ceccarelli, you may begin your conference.

All right, thank you, Lisa, and good morning, everyone. And welcome to our 2018 fourth quarter earnings conference call. With me today are Art Zeile, President and Chief Executive Officer; and Luc Grégoire, Chief Financial Officer. Today's call includes certain forward-looking statements, particularly statements regarding future financial and operating results of the company. These are based on management's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may differ possibly materially from those expressed or implied in these forward-looking statements due to changes in economics, business, competitive, technological and/or regulatory factors. For a discussion of these principal risks and factors that could affect the company's future results, please see the description of risk factors in our annual report on Form 10-K for the year ended December, 2018, which will be filed shortly and in sections entitled Risk Factors, Forward-looking Statements and Management's Discussion and Analysis of Financial Conditions and Result of Operations. The company is under no obligation to update any forward-looking statements, except where required by the federal security laws. During today's call, we will be referring to certain financial measures, including adjusted revenues, adjusted EBITDA and adjusted EBITDA margin that are not prepared in accordance with U.S. GAAP. Information about and reconciliations of these non-GAAP measures to which most directly comparable GAAP measure are available in our earnings release, which is posted on our website at www.dhigroupinc.com in the Investor Relations section. With that, I will now turn the call over to Art.

Thanks, Rachel, and good morning to everyone who has joined our call. We appreciate your interest in DHI. We ended 2018 with strong momentum reaching an important inflection point in our business. We stabilized our remaining tech focused revenues, which in the fourth quarter were flat year-over-year for the first time in nearly three years. At that same time, we improved our profitability. Additionally for the first time in several years, our base client count remains constant on a sequential quarter basis in our average revenue per customer increase. This is a watershed moment for our company. We made significant progress in executing on our tech-first strategy and strengthening several important dimensions of our business. We completed the divestitures of our non-core brands, close Dice Europe and restructured several offices, streamlining our global footprint. We implemented robust frameworks for delivering excellence in sales, marketing, product management and engineering. We also put in place a strong execution oriented management team and began implementing a culture of customer focused innovation. On the product side, we established a regular delivery rhythm and product roadmap in 2018, supported by a clear sense of mission. ClearanceJobs is our test bed for product innovation and we are successfully leveraging that across our other brands. We launched TalentSearch with IntelliSearch in Dice in the third quarter as evidence of our commitment to taking the best time tested features from ClearanceJobs and bringing them to Dice and eFinancialCareers. This was the first major Dice upgrade in years with nearly 80% of Dice clients migrated to date. The feedback has been extremely positive and we're seeing a double-digit increase in usage. Equally important, we launched ClearanceJobs next generation platform in the fourth quarter. Next gen is a substantial lead forward in delivering a true career network, where employers engage…

Thanks, Luc. I'd like to close by once again thanking all our employees around the globe for their hard work and dedication over the last quarter and throughout 2018. Without your focus and commitment, we would not have been able to accomplish what we did last year and begin 2019 with such incredible momentum. It is a pleasure to be part of such a great team. With that, we're happy to take your questions.

Thank you. [Operator Instructions] Our first question comes from the line of Kara Anderson from B.Riley FBR. Your line is open.

Hi, good morning guys.

Good morning, Kara. Luc Grégoire: Hey, Kara.

Hey, so I wanted to ask on the new performance based product offerings that you're going to, I guess, offer alongside subscription for Dice. I'm just wondering if you see that at all pulling away customers, who currently are on subscription and I guess potentially cannibalizing some of the revenue there?

Well, that's a great question and one that we have actually been working through for quite some time, a number of different months where we've actually studied our entire customer base and we think that this is a really great solution for a certain sub-segment of customers. So we're going to be rolling that out for those customers that can benefit from it most. But we have done a lot of studies to just prove that the actual trade of subscription to the pay per view model will actually increase the revenue as we believe it rolls out over the course of time associated with those customers. And that's because with – in conjunction with Intellisearch, we believe that there is a larger usage pattern of the actual database itself. And that's what we're selling access to. So think of it as the fact that the Intellisearch capability gives our recruiters a more sophisticated tool to get to the right number of candidates that are looking for. And by studying their usage patterns, we believe that we know how many views they will use for every single search. And we're going to go to those customers that we think are going to benefit from that model, but also have high usage patterns.

Got it. And just for clarification, so it sounds like this may not be offered to everybody, but you've collected those who makes more sense for? Or am I hearing that incorrectly?

That's correct. In fact, you are rolling that out on a Beta basis literally this month in February and we're going to go GA with it by the end of the quarter. But we are basically being very targeted about who we are offering this set of consumption based pricing services too. That is correct.

Got it. Okay. And then, I am just hoping you could expand a little bit on the reception of TalentSearch. I see that you pointed to the double-digit increase in usage. But are you seeing this as a meaningful driver? Or how do you, I guess, expect that usage to translate into revenue growth? And then also when will the remaining 20% rollout?

Well, that's a great question. In fact we have had the advantage of seeing usage trends ramp up from August where we had our first migration. And we're right now at the end of migration number four of our customer base. Approximately 79% of our customers have migrated to TalentSearch 4.0. So we've had the ability to track their usage patterns pre and post [indiscernible] for that period of time. It is double-digit. It's depending upon, which way we’re talking about anywhere between 10% to about 20% in terms of usage patterns. And we believe that by moving to the pay per view model, we actually benefit the company for those customers that are at high usage levels. In other words, right now on a subscription basis, these customers are paying for an infinite number of views basically. But once we go for pay per view as a model for the future for those customers that are seeing really strong benefit from IntelliSearch, we believe that that's going to drive revenue. And we've done a little bit of modeling, but I think it's fair to say that as we rollout, we're going to have a lot more evidence of the actual usage and revenue behavior over the next several quarters.

All right, and then on the restructuring of the sales team, I think if I recall, there were some shifting around in accounts to various sales reps. Just wondering if you've seen any disruption as a result of that?

No, actually, we've seen the opposite. We have been able to essentially expand the sales team itself. So think of it as going through a period in the middle of last year where we stood up an enterprise field sales team that essentially covered 15 regions in the United States. By expanding that team and then creating a commercial accounts team at the end of last year, we actually have taken a certain number of accounts, 6,200 accounts, and spread them over more people. So we believe that those accounts are now able to develop a higher level of interactivity and relationship with the reps that are involved. So we believe that there's – it's been a net positive because there has been the ability to essentially have a more concentrated focus on a smaller number of accounts per rep.

Got it. And then just wondering if you can speak on sort of a high level to the overall propensity or I mean maybe apprehensive for – apprehension for people to act or close on leads at this time in a little bit of an uncertain environment, particularly impacts from Brexit that you might be seeing on eFC and then if there's any risk to ClearanceJobs revenue trajectories with the government shutdown.

Both of those are excellent questions. I'll tell you that we have been monitoring the effects of Brexit very closely as you would suspect within the eFC team. And we believe that there has been a modest effect. What has happened in the past is that when any type of major government regulatory or structural change takes place, a lot of activity slows down, but then it has to speed up once there's clarity. And clearly, I guess nobody really knows if there is going to be any near-term clarity to the Brexit situation. But the good news is that roughly half of our revenue and a growing amount of that revenue is coming from Asia Pacific and we're seeing double-digit growth in bookings in the same period of time that we're seeing some of the negative effects of Brexit. So think of our platform as being one that's global in nature, attending to the major financial hubs of the world and there is no issues and in fact a strong growth rate associated with Asia Pacific, Hong Kong, Singapore specifically. We also work through Paris, Frankfurt and London through the European side of the eFC business. You would say that the London side being one of those just smaller factions of our business is probably slowing or we're not seeing the same amount of growth as the rest of the platform, but it's balanced by higher rates of growth across the rest of eFC. With regard to ClearanceJobs, it's very interesting. Obviously, there is a concern about the government shutdown. We didn't see any negative effect during the period of time. It was shutdown at the end of December, moving into January. We still had strong bookings across ClearanceJobs. When you think about what is that stake here and in fact that there may be a change in some of the, I would say, government military accounts to potentially fund a wall that that really is a small effect on the overall military infrastructure. So there's still going to be a lot of people hiring folks for clearance that – that have clearances across the platform, irrespective of whether or not $5 billion goes to a wall versus the $800 billion military defense budget. Again, we're monitoring the situation very closely and we don't take anything for – we don't dispute that these are issues that we need to monitor closely, but we have not seen any negative effects across both of those two platforms.

Great, thank you so much.

We have no further questions in queue. I'll turn the call back to Rachel Ceccarelli for closing remarks.

All right, thank you all for joining us today. To schedule and email to management, please e-mail ir@dhigroupinc.com or call 212-448-4181. Thank you and have a good day.

Thank you. Luc Grégoire: Thank you.

This concludes today’s conference call. You may now disconnect.