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Mike Durney SVP, Finance & CFO

Mike Durney SVP, Finance & CFO · Source: BLS Employment Situation - Professional and Business Services (in thousands) ... Slide 0 Author: Jennifer Bewley Created Date: 5/7/2012 12:03:18

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Mike DurneySVP, Finance & CFO

Look to Dice for Your Staffing SolutionsForward Looking Statement

This presentation and oral statements made from time to time by our representatives contains forward looking

statements. 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 without limitation concerning our possible or assumed future results of operations, including

descriptions of our business strategy. 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, competition from existing and future competitors in

the highly competitive market in which we operate, failure to adapt our business model to keep pace with

rapid changes in the recruiting and career services business, failure to maintain and develop our reputation

and brand recognition, failure to increase or maintain the number of customers who purchase recruitment

packages, cyclicality or downturns in the economy or industries we serve, failure to attract qualified

professionals to our websites or grow the number of qualified professionals who use our websites, failure to

successfully identify or integrate acquisitions, U.S. and foreign government regulation of the Internet and

taxation, our ability to borrow funds under our revolving credit

facility or refinance our indebtedness and

restrictions on our current and future operations under such indebtedness. These factors and others are

discussed in more detail in the Company's filings with the Securities and Exchange Commission, all of which

are available on the Investor Relations page of our website at www.diceholdingsinc.com, including the

Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011, under the headings

“Risk Factors,”

“Forward-Looking Statements”

and “Management's Discussion and Analysis of Financial

Condition and Results of Operations.”

You should keep in mind that any forward-looking statement made by the Company or its representatives

herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up

from time to time, and it is impossible to predict these events or how they may affect us. We have no

obligation to update any forward-looking statements after the date hereof, except as required by federal

securities laws.

This presentation includes certain "Non-GAAP financial information." A reconciliation of such information to the most directly comparable GAAP data can be found in the Company’s most recent earnings release.

Look to Dice for Your Staffing SolutionsLeading Specialty Career Sites

67%

FY 2012GRevenue

Contribution

20%

11%

Technology & Clearance

Finance

Energy

U.S.

U.K. Base 19 Global Markets

U.S. & Dubai Bases

Look to Dice for Your Staffing Solutions

($mm)

Note: Includes eFinancialCareers pre-acquisition; not adjusted for Energy acquisitions.

Consistent Financial Results & Strong Profitability

Margin % 45% 40% 43% 41%

Adjusted EBITDARevenues Free Cash Flow

$110.0$129.0

$179.1$198.0

$49.

6

$52.

1

$77.

6

$82.

0

$19.

8

$42.

4

$61.

4

$0.0

$50.0

$100.0

$150.0

$200.0

2009 2010 2011 2012G

Look to Dice for Your Staffing SolutionsToday’s Agenda

Financial Model

Economic Dynamics

2012 Initiatives

Value Proposition

Look to Dice for Your Staffing SolutionsValue Proposition Delivers Efficiency

EFFICIENCY

FilteredFocused on Community

ActionableCandidates Ready to Recruit

Skill SpecificSearch AdvantageTalent

Right CommunityRight Context

FAST

Look to Dice for Your Staffing Solutions

Look to Dice for Your Staffing Solutions

Note: These are actual results; identifying characteristics have been changed.

Look to Dice for Your Staffing Solutions

Note: These are actual results; identifying characteristics have been changed.

Look to Dice for Your Staffing Solutions

Note: These are actual results; identifying characteristics have been changed.

Look to Dice for Your Staffing Solutions

Note: These are actual results; identifying characteristics have been changed.

Look to Dice for Your Staffing SolutionsBuilding an Audience of Actionable Candidates

Tech Talent

Leave-alone contentsVery unlikely to leavecurrent positions

Silver platter passivesLeave if opportunitydropped in their lap

Career managersOpen to new opportunities andmanaging their careersActive seekers

Looking for a job –

unfavorablework situation or betweenassignments

33%

13%

29%

30%

25% 27%Dice Sample

National Sample

8%

31%

Look to Dice for Your Staffing SolutionsToday’s Agenda

Financial Model

Economic Dynamics

2012 Initiatives

Value Proposition

Look to Dice for Your Staffing Solutions26 Months of Private Sector Job Growth

-900

-450

0

450

900

Jan-

01

Jan-

03

Jan-

05

Jan-

07

Jan-

09

Jan-

11

Source: Bureau of Labor Statistics

(in thousands)Monthly Change in U.S. Private Sector Employment

Look to Dice for Your Staffing SolutionsBest Job Creating Category in Recovery

Source: BLS Employment Situation -

Professional and Business Services

(in thousands)Professional and Business Services

Monthly Change in Employment

-200

-100

0

100

200

Jan-

01

Jan-

03

Jan-

05

Jan-

07

Jan-

09

Jan-

11

Look to Dice for Your Staffing SolutionsBut Turnover is the Driver!

Source: BLS Employment Situation -

Professional and Business Services

(in thousands)Professional and Business Services

Monthly Change in Employment

-200

0

200

400

600

Jan-

01

Jan-

03

Jan-

05

Jan-

07

Jan-

09

Jan-

11

Level of Voluntary Quits

and BLS JOLTS Survey –

Professional and Business Services Quits

Look to Dice for Your Staffing SolutionsBelow Average Turnover Holds Back Market

Source: BLS JOLTS Survey –

Professional and Business Services Quits

415,000Monthly

10-year average

Key Factors

Economic Confidence

Mobility415,000

10-year avg.

2012 YTD 363,000

Career Opportunities

Look to Dice for Your Staffing Solutions

-100% +100%0%

Change in Dice Job Postings(Yr/Yr)

Tech Recruiting Strong Across Many Markets

Note: Based on percentage change in Dice.com job postings by state measured at May 1, 2012

Seattle+23% yr/yr

St. Louis+38% yr/yr

Atlanta+17% yr/yr

Phoenix+22% yr/yr

New York+1% yr/yr

D.C.+10% yr/yr

Silicon Valley+21% yr/yr

Look to Dice for Your Staffing SolutionsFinancial Services Recruiting Slowing

eFinancialCareers Job Postings

0

2,000

4,000

6,000

8,000

10,000

12,000S

ep-0

8

Dec

-08

Mar

-09

Jun-

09

Sep

-09

Dec

-09

Mar

-10

Jun-

10

Sep

-10

Dec

-10

Mar

-11

Jun-

11

Sep

-11

Dec

-11

Mar

-12

Note: eFinancialCareers job postings by region measured 1st

business day of the month.

UK Continental Europe & Middle East Asia Pacific US

Look to Dice for Your Staffing SolutionsStrong Hiring in Oil & Gas

Change in U.S. Oil & Gas Employment

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,00020

00

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

YTD

Note: Bureau of Labor Statistics combined categories of oil and

gas extraction and support activities for oil and gas operations.

Look to Dice for Your Staffing SolutionsToday’s Agenda

Financial Model

Economic Dynamics

2012 Initiatives

Value Proposition

Look to Dice for Your Staffing Solutions2012 Investments by Key Verticals

Expanding AsiaNew Client Platform

Increasing Content, Features & FunctionalityUpdating Mobile

Introducing Talent Communities

Customer Penetration

Customer PenetrationRegional Sales

Editorial Coverage

Regionalizing Platform

Look to Dice for Your Staffing SolutionsIntroduced Dice Blog Network

3,700 Articles Posted

Look to Dice for Your Staffing SolutionsLaunched Mobile Applications

Mobile: 10% of visits

Look to Dice for Your Staffing SolutionsIntroduced Talent Communities

Look to Dice for Your Staffing Solutions

2012 Actionable Candidates

Note: Rigzone Resume Database after combination of Rigzone/WorldwideWorker. The percentages may not total 100% due to rounding.

11%

27%

27%22%

9%

2%

3%

Globalizing Rigzone: 1.2 mm Oil & Gas Pros

Look to Dice for Your Staffing SolutionsToday’s Agenda

Financial Model

Economic Dynamics

2012 Initiatives

Value Proposition

Look to Dice for Your Staffing Solutions

$18.5

$52.1

$0.0

$10.0

$20.0

Q1 2011 Q1 2012

Good Start in Q1 2012: Solid Growth and Profitability

Revenue

$46.1

$40.1

$0.0

$25.0

$50.0

Q1 2011 Q1 2012

($mm)

Margin % 40% 40%

($mm) ($mm)

Adjusted EBITDA Free Cash Flow

$21.9

$14.1

$0.0

$12.5

$25.0

Q1 2011 Q1 2012

+16% +56%+15%

Look to Dice for Your Staffing SolutionsOur Model

-

~75% of Revenues under contract at the start of a quarter

-

>80% under Annual Contract

-

Matching Marketing Spend to Activity Levels

-

Leverage in Cost of Revenues and G&A

-

40-45% Adjusted EBITDA margin long-term target

-

Low Cap-Ex-

Contracts Generally Paid in Advance

Predictable Revenues

Free Cash Flow

Discretionary Expenses

High Margins

Look to Dice for Your Staffing SolutionsTraditional Sales & Marketing Expense

Marketing

Salespeople Compensation

Other Selling Costs

Marketing to Professionals

Lead Generation and Marketing to Customers

Marketing Personnel

Sales

Look to Dice for Your Staffing SolutionsTraditional Other Expenses

Customer Support

Technology Infrastructure

Executive

Accounting & Finance

Strategic Planning, Investor Relations, Legal, Insurance

Office Leases & Support

Audit

Website/Mobile Development and Product Enhancement

Editorial/Content Development

Cost of Revenue

ProductDevelopment

G&A

Look to Dice for Your Staffing SolutionsInvesting in Product Development

37% 37%

32%34%

33%

3% 3% 4%5% 6%

0%

10%

20%

30%

40%

2007 2008 2009 2010 2011

Expenses(% of Revenue)

Sales & Marketing Product Development

Look to Dice for Your Staffing Solutions

$0.0

$20.0

$40.0

$60.0

2006 2007 2008 2009 2010 2011 2012

Quarterly Free Cash Flow

Strong Free Cash Flow

1Q 2Q 3Q 4Q

$52.1

$38.1

$50.2

$19.8

$42.4

$61.4

$21.9

Look to Dice for Your Staffing Solutions

Acquisitions

Cash Priorities

Share Repurchase

Investing for Organic Growth

Mike DurneySVP, Finance & CFO

Q&A