DHI Group (formerly Dice Holdings) doesn't think recruiting and hiring or job-seeking should be left to a roll of the dice - unless that means using the company's websites devoted to employee recruiting and career development. Through its flagship website, Dice.com, it provides job postings and career-related resources for technology professionals. DHI also operates ClearanceJobs.com, for people with US government security clearances; eFinancialCareers.com, aimed at financial workers; AllHealthcareJobs.com, targeting health care workers; and WorldwideWorker.com and Rigzone.com, for professionals in the energy sector. It also puts on job fairs. Most of the company's revenue comes from employers, who pay to post job listings and view resumes
DHI slices its business into six categories, five of which are the industries for which it has job listings. Listings for jobs in technology and workers with security clearances accounts for 61% of the company's revenue. The next biggest are financial listings, 16%, and energy, 11%. The other segments are healthcare and hospitality. The corporate segment includes DHI's media properties such as Slashdot.com, SourceForge.net, and Freecode.com, technology news sites supported by advertising.
About 80% of DHI's revenue comes from the US, but it has customers around the world. Besides nine offices in the US and Canada, it has offices in Australia, China, Germany, the Netherlands, Singapore, the United Arab Emirates, and the UK. The company's IT Job Board provides listings for the Belgium, Germany, Netherlands, and the UK for technology jobs as well as news for IT decision makers. The eFinancialCareers website operates in three languages in 19 markets, including Asia, Australia, Continental Europe, the Middle East, North America, and the UK.
Sales and Marketing
DHI has more than 15,000 customers ranging from small businesses to some of the biggest firms in technology, finance, and energy. Customers include
JP Morgan Chase
. DHI markets to job seekers via targeted ads on websites. Its field sales staff approaches companies seeking workers.
DHI rolled to its fourth straight year of revenue growth, hitting $213 million in 2013, up from $195 million in 2012. Acquisitions fueled some of the revenue growth, including $3.2 million from the European-focused The IT Job Board, acquired in mid-2013. Revenue for the finance segment declined 9%, affected by slower hiring at European institutions in the face of a debt crisis and UK recession. Smaller segments such as energy and healthcare had robust growth.
Despite the 9% rise in revenue, the company's net income dropped 57% to $16 million in 2013 from $38 million in 2012. While acquisitions helped raise revenue, they also raised the cost of gaining revenue in the technology and healthcare segments. Technology also spent $1.4 million toward an integrated enterprise platform, which included software, personnel, and consulting services. Cash flow has declined for three straight years, dropping to $49 million in 2013. It stood at about $55 million in 2012 and $64 million in 2011. The decrease was blamed on a slowdown in sales and timing in payments from customers and tax payments.
Mergers and Acquisitions
DHI's longtime strategy is to buy or create job sites that extend its reach in sectors where there is a scarcity of qualified professionals and expand into new ones. In 2014 DHI acquired oilcareers.com, a job site for oil and gas professionals in Europe, for $26 million. In the past two years, DHI has acquired The IT Job Board, onTargetjobs, and FINS.com (now eFinancialCareers.com). To counter the effects of the sluggish economy, the company's growth strategy includes developing career websites tailored for new industry niches. For example, DHI is active in the burgeoning health care industry job search market through its AllHealthcareJobs.com website, which attracts around 300,000 visitors and has about 14,000 job postings. The 2012 acquisition of the online media business of Geeknet, a provider of Web content for open source software developers and other technology enthusiasts, rolled sites such as Slashdot, SourceForge, and Freecode into Dice. The company bets that it can push traffic from these popular sites (which each attract about 1 million unique viewers per month) to its related career sites.