DHI Group, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>DHI Group, Inc. has submitted its 2023 10-K annual report, detailing its financial performance and corporate information.</b>

AI Summary

DHI GROUP, INC. (DHX) filed a Annual Report (10-K) with the SEC on February 8, 2024. DHI Group, Inc. filed its annual report for the fiscal year ended December 31, 2023. The filing is a 10-K, indicating a comprehensive overview of the company's financial performance and condition. The report covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located in Centennial, Colorado. DHI Group, Inc. was formerly known as DICE HOLDINGS, INC. until March 21, 2007.

Why It Matters

For investors and stakeholders tracking DHI GROUP, INC., this filing contains several important signals. This 10-K filing provides investors and stakeholders with a detailed look at DHI Group's financial health, operational results, and strategic positioning for the fiscal year 2023. Understanding the contents of this report is crucial for assessing the company's past performance, identifying potential risks, and making informed investment decisions regarding DHI Group.

Risk Assessment

Risk Level: medium — DHI GROUP, INC. shows moderate risk based on this filing. The company's business is subject to the dynamic nature of the labor market and the technology sector, which can lead to fluctuations in demand for its services.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand DHI Group's performance and outlook for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported period end date)
• 2024-02-08 — Filing Date (Date the 10-K was filed)
• 2023-01-01 — Report Start Date (Beginning of the reporting period)
• 2022-12-31 — Prior Year End (End date of the previous fiscal year)
• 2021-12-31 — Prior Year End (End date of the fiscal year prior to the previous one)
• 2020-12-31 — Prior Year End (End date of the fiscal year three years prior)

Key Players & Entities

• DHI GROUP, INC. (company) — Filer name
• DHX (company) — Ticker symbol
• 20231231 (date) — Fiscal year end
• 20240208 (date) — Filing date
• Centennial, CO (location) — Business address city and state
• DICE HOLDINGS, INC. (company) — Former company name

Forward-Looking Statements

• DHI Group will continue to utilize restricted stock and performance shares as key components of its employee compensation strategy in 2024. (DHI GROUP, INC.) — high confidence, target: 2024-12-31
• The company's additional paid-in capital will see further adjustments in 2024 due to ongoing equity transactions. (DHI GROUP, INC.) — medium confidence, target: 2024-12-31

FAQ

Industry Context

DHI Group operates in the specialized recruitment and staffing industry, focusing on technology and healthcare sectors.

Regulatory Implications

As a publicly traded company, DHI Group is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the annual filing of Form 10-K.

What Investors Should Do

1. Analyze the financial statements for revenue trends, profitability, and cash flow.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into operational performance and strategic initiatives.
3. Examine the risk factors section to understand potential challenges and their impact on the company.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-08: Filing Date — The date DHI Group, Inc. officially submitted its 10-K to the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share DHX New York Stock Exchange
• $0.9 m — l net of tax, and discrete tax items of $0.9 million, or $0.02 per diluted share. Net
• $0.02 — discrete tax items of $0.9 million, or $0.02 per diluted share. Net income and dilut
• $1.9 m — l net of tax, and discrete tax items of $1.9 million, or $0.04 per share. (2) For a d
• $0.04 — discrete tax items of $1.9 million, or $0.04 per share. (2) For a description of th
• $10,000 — lated to smaller clients with less than $10,000 in annual spend. DHI also improved it
• $4.2 million — bt in the current environment. Cash was $4.2 million at the end of 2023 and total debt was $
• $38.0 million — n at the end of 2023 and total debt was $38.0 million under our $100 million facility. Lead
• $100 million — total debt was $38.0 million under our $100 million facility. Leading Engagement for Tech

Filing Documents

• dhx-20231231.htm (10-K) — 1842KB
• a2023q4211subsidiariesofre.htm (EX-21.1) — 4KB
• a2023q4231consentofindepen.htm (EX-23.1) — 2KB
• a2023q4311certificationofc.htm (EX-31.1) — 7KB
• a2023q4312certificationofc.htm (EX-31.2) — 7KB
• a2023q4321certificationofc.htm (EX-32.1) — 5KB
• a2023q4322certificationofc.htm (EX-32.2) — 5KB
• dhigroupincincentivecompen.htm (EX-97.1) — 35KB
• dhx-20231231_g1.jpg (GRAPHIC) — 98KB
• 0001393883-24-000040.txt (&nbsp;) — 9323KB
• dhx-20231231.xsd (EX-101.SCH) — 54KB
• dhx-20231231_cal.xml (EX-101.CAL) — 91KB
• dhx-20231231_def.xml (EX-101.DEF) — 371KB
• dhx-20231231_lab.xml (EX-101.LAB) — 802KB
• dhx-20231231_pre.xml (EX-101.PRE) — 625KB
• dhx-20231231_htm.xml (XML) — 1051KB

Risk Factors

Item 1A. Risk Factors 15

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 29

Cybersecurity

Item 1C. Cybersecurity 29

Properties

Item 2. Properties 30

Legal Proceedings

Item 3. Legal Proceedings 30

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 31 PART II.

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 31

Reserved

Item 6. Reserved 33

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 50

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 51

Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures 79

Controls and Procedures

Item 9A. Controls and Procedures 79

Other Information

Item 9B. Other Information 81

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 81 PART III.

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 82

Executive Compensation

Item 11. Executive Compensation 82

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 82

Certain Relationships and Related Transactions and Director Independence

Item 13. Certain Relationships and Related Transactions and Director Independence 82

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 82 PART IV.

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 83

Form 10-K Summary

Item 16. Form 10-K Summary 87 1 Table of Contents NOTE CONCERNING FORWARD-LOOKING STATEMENTS Information contained herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include information concerning our possible or assumed future financial condition, liquidity and results of operations, including expectations (financial or otherwise), our strategy, plans, objectives, expectations (financial or otherwise) and intentions, and growth potential. These statements often include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. These statements are based on assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to: our ability to execute our tech-focused strategy; write-offs of goodwill, tradename and intangible assets; competition from existing and future competitors; changes in the recruiting and career services business and technologies, and the development of n

Business

Item 1. Business Introduction and Summary This section provides an overview of DHI Group, Inc. ("DHI," the "Company," "we," "us," or "our"). Please see our consolidated financial statements included elsewhere in this report for additional discussion regarding our results of operations for the year ended December 31, 2023. (in thousands) FY 2023 FY 2022 Change Revenues $ 151,878 $ 149,680 1 % Operating income $ 6,288 $ 5,560 13 % Income before income taxes $ 3,622 $ 3,597 1 % Net income (1) $ 3,491 $ 4,176 (16) % Diluted earnings per share (1) $ 0.08 $ 0.09 (11) % Net cash flows from operating activities $ 21,345 $ 36,035 (41) % Adjusted EBITDA (2) $ 36,254 $ 30,950 17 % Adjusted EBITDA Margin (2) 24 % 21 % n.m. (1) For the year ended December 31, 2023, net income and diluted earnings per share includes the net negative impact of impairment of investment, severance and related costs, gain on investment and restructuring, all net of tax, and discrete tax items of $0.9 million, or $0.02 per diluted share. Net income and diluted earnings per share for the year ended December 31, 2022 includes the net positive impact of income from investments, proceeds from settlement, impairments and severance and related costs, all net of tax, and discrete tax items of $1.9 million, or $0.04 per share. (2) For a description of these non-GAAP measures and reasons why management believes they provide useful information to investors, please see Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations, Non-GAAP Financial Measures" located elsewhere in this report. 5 Table of Contents 2023 Highlights In 2023, DHI focused its efforts on operating effectively and efficiently while continuing to strengthen its industry-leading product offerings expertly helping employers find, attract and hire top tech talent, and assisting technology professionals with managing their careers amidst ongoing uncertainty in the economy impacting

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View this 10-K filing on SEC EDGAR