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01/11 03:22
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The company's earnings call presents mixed signals: while there are improvements in Dice's EBITDA and non-GAAP EPS, the revenue guidance has been reduced, and there is a significant net loss due to impairment. The Q&A reveals no major risks, but uncertainties remain, especially with the defense budget timeline. The positive aspects like cost reductions and AI growth are balanced by concerns over revenue decline and margin normalization, leading to a neutral outlook.
Total Revenue $32.1 million, down 9% year-over-year. Reasons for the decline include macroeconomic challenges and a flat performance compared to the second quarter.
Total Bookings $25.4 million, down 12% year-over-year. This decline is attributed to reduced demand and macroeconomic uncertainties.
ClearanceJobs Revenue $13.9 million, up 1% year-over-year and up 2% sequentially. Growth is driven by strong recurring revenue and increased average annual revenue per customer.
ClearanceJobs Bookings $12 million, down 7% year-over-year. The decline is due to the government hiring freeze and eventual shutdown.
Dice Revenue $18.2 million, down 15% year-over-year and down 1% sequentially. The decline is attributed to macroeconomic headwinds, tariffs, and budget uncertainties.
Dice Bookings $13.4 million, down 17% year-over-year. The decline is due to reduced demand and churn among smaller customers.
Adjusted EBITDA $10.3 million, a margin of 32%, up from $8.6 million or a margin of 24% in the prior year. The increase is due to cost savings and operational efficiencies.
ClearanceJobs Adjusted EBITDA $5.9 million, representing a 43% margin, down from $6.3 million or a 46% margin in the prior year. The decline is due to reduced bookings.
Dice Adjusted EBITDA $6.2 million, representing a 34% margin, up from $4.0 million or a 19% margin in the prior year. The increase is due to cost reductions and operational improvements.
Operating Cash Flow $4.8 million, down from $5.5 million in the prior year. The decline is attributed to reduced revenue.
Free Cash Flow $3.2 million, up from $2.3 million in the prior year. The increase is due to reduced capital expenditures.
Capital Expenditures $1.6 million, down 51% from $3.2 million in the prior year. The reduction is due to cost-saving measures.
Net Loss $4.3 million or $0.10 per diluted share, compared to a net loss of $200,000 or $0.00 per diluted share in the prior year. The increase in loss is due to a $9.6 million impairment of intangible assets.
Non-GAAP Earnings Per Share $0.09 per share, up from $0.05 per share in the prior year. The increase is due to operational efficiencies and cost savings.
AgileATS Integration: Integrated AgileATS with ClearanceJobs offering, beta testing premium candidate subscription ahead of Q1 2026 release.
New Dice Platform: Migrated over half of Dice customers to a new platform, enabling online subscription management and reducing operating expenses.
AI Job Postings: AI-related job postings on Dice increased from 10% in early 2024 to over 50% by Q3 2025, indicating growing demand for AI talent.
Defense Budget Growth: U.S. defense budget for fiscal year 2026 increased by 13%, the largest peacetime increase, boosting demand for cleared tech professionals.
Cost Reductions: Reduced annual operating expenses and capitalized development costs by approximately $35 million through restructurings.
Recurring Revenue: 90% of revenue from recurring annual or multiyear contracts, ensuring stability.
Stock Buyback Program: Authorized a new $5 million stock repurchase program starting November 2025.
Focus on AI and Defense: Positioning ClearanceJobs and Dice to capitalize on AI talent demand and increased defense spending.
Government hiring freeze and shutdown: ClearanceJobs experienced a 7% decline in bookings due to the government hiring freeze and eventual shutdown, impacting new business teams and creating uncertainty in the federal budget.
Macro headwinds for Dice: Dice faced challenges from tariffs, budget uncertainty, and higher interest rates, leading to a 17% year-over-year decline in bookings and a reduction in new tech job postings to 70% of normal levels.
Customer churn: Both ClearanceJobs and Dice experienced customer churn, particularly among smaller accounts spending less than $15,000 annually, which were more impacted by the difficult macro environment and uncertainty.
Revenue decline: Total revenue decreased by 9% year-over-year, with Dice revenue down 15% and total bookings down 12%, reflecting ongoing challenges in the hiring environment.
Deferred revenue and backlog reduction: Deferred revenue decreased by 13% year-over-year, and total committed contract backlog declined by 9%, indicating potential future revenue challenges.
Economic uncertainties: Higher interest rates and budget uncertainties continue to create a challenging environment for tech hiring and customer retention.
Defense Budget Impact on ClearanceJobs: The proposed $1.1 trillion U.S. defense budget for fiscal year 2026 represents a 13% increase over the previous year, marking the largest single-year increase in peacetime history. NATO countries are also boosting defense spending, with U.S. contractors likely to secure a significant portion of this incremental spend. This is expected to drive growth for ClearanceJobs, which serves over 10,000 employers of cleared tech professionals.
Product Developments for ClearanceJobs: AgileATS has been integrated with ClearanceJobs, and a premium candidate subscription is being beta tested ahead of its general release in Q1 2026. These developments are expected to create new recurring revenue streams and enhance the platform's value proposition.
Dice Platform Enhancements: The new Dice platform, which allows for monthly subscriptions and self-service capabilities, is expected to reduce churn among smaller accounts and improve affordability. Full migration of customers to the new platform is anticipated by the end of Q1 2026.
AI-Driven Demand for Tech Talent: AI-related job postings on Dice have risen from 10% at the beginning of 2024 to over 50% as of the latest quarter. This trend is expected to drive future demand for tech hiring.
Revenue Guidance: The company reiterated its annual revenue guidance of $126 million to $128 million and expects Q4 revenue to range between $29.5 million and $31.5 million.
Adjusted EBITDA Margin Guidance: Full-year adjusted EBITDA margin guidance has been raised to 27%, reflecting cost management and operational efficiency.
Stock Repurchase Program: During the quarter, the company repurchased 741,000 shares for $2.1 million under its stock repurchase program. For the year, a total of 2.6 million shares were repurchased for $6.2 million. Following the close of the third quarter, the company completed the $5 million plan authorized in January. Additionally, the Board approved a new $5 million stock repurchase program, which will begin this month and run through November 2026.
The company's earnings call presents mixed signals: while there are improvements in Dice's EBITDA and non-GAAP EPS, the revenue guidance has been reduced, and there is a significant net loss due to impairment. The Q&A reveals no major risks, but uncertainties remain, especially with the defense budget timeline. The positive aspects like cost reductions and AI growth are balanced by concerns over revenue decline and margin normalization, leading to a neutral outlook.
The earnings call reflects mixed signals: while there is improvement in margins and strategic acquisitions, there are concerns about declining revenue and cash flow. The Q&A reveals stabilization in some areas, but uncertainty remains in others, like Dice's future performance. The acquisition of AgileATS and improved budget environment are potential positives, but lack of specific guidance tempers optimism. Overall, the sentiment is balanced, with no strong catalyst for significant stock movement in either direction.
The earnings call reveals mixed signals: declining revenue and bookings, but a positive outlook for 2025 and a new stock buyback program. The Q&A highlights stability but also uncertainties, particularly around government changes. The financials show some resilience with improved customer value and reduced debt. Given these factors, the stock is likely to remain stable, resulting in a neutral prediction.
The earnings call summary indicates declining financial performance, particularly with Dice's revenue and bookings. The Q&A highlights concerns over renewals and a conservative outlook, despite some positive trends. The lack of share buybacks and CFO departure add uncertainty. While there is optimism for future growth, current guidance and financial metrics suggest a negative sentiment. The absence of a new partnership or positive shareholder return announcements further supports a negative outlook.
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