DHI Group Q3 revenue beats estimates on stronger defense, tech sectors
DHX•DHI Group reported Q3 revenue of $32.24 million, beating the $31.13 million consensus estimate, and adjusted EPS of $0.10, up from $0.09 a year earlier. It narrowed full-year revenue guidance to $124 million-$126 million and raised its adjusted EBITDA margin outlook to 26%.
1. Quarterly results
DHI Group's Q3 revenue was $32.24 million, compared with analyst estimates of $31.13 million. Net income was $2.41 million, GAAP EPS was $0.06, adjusted EBITDA was $8.90 million and adjusted EBITDA margin was 28%; adjusted EPS rose to $0.10 from $0.09 a year earlier.
2. Business trends and outlook
The company said revenue and bookings at ClearanceJobs grew on stronger sales execution and increased demand from defense and technology sectors. At Dice, the bookings decline narrowed as new-business sales and demand for specialized tech talent partly offset weak enterprise renewals. DHI Group narrowed full-year revenue guidance to $124 million-$126 million and raised its adjusted EBITDA margin guidance to 26%.
3. Cash and shares
DHI Group attributed strong free cash flow to disciplined expense management and collections, which aided debt reduction and share repurchases. It repurchased 0.9 million shares for $3.8 million in Q3.
