DHI Group Inc (DHX) 2007 Q2 法說會逐字稿

Good day ladies and gentlemen and welcome to the second-quarter 2007 Dice Holdings Inc. earnings call. My name is Dan and I will be your operator for today. At this time, all participants are in listen-only mode. We will conduct a question-and-answer session toward the end of this conference. (OPERATOR INSTRUCTIONS). As a reminder, this conference is being recorded for replay purposes. I would now like to turn the call over to Mr. [Don Tomma]. Please proceed.

Thanks and good morning everyone. With me the call today is Scot Melland, President and Chief Executive Officer and Chairman of the Board of Dice Holdings, along with Mike Durney, Senior Vice President of Finance and Chief Financial Officer. Please note that earlier this morning, the Company issued a press release describing its results for the second quarter of 2007. A copy of that release can be viewed on the Company's web site at DiceHoldings.com.

Before we begin, I would like to note that today's call includes certain forward-looking statements, particularly statements regarding future financial and operating results of the Company and its businesses. These statements are based on management's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological, and/or regulatory factors. The principal risks that could cause our results to differ materially from our current expectations are detailed in the Company's SEC filings, including our registration statement on Form S-1 as amended in the sections entitled to Risk Factors, Forward-looking Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations. The Company is under no obligation to update any forward-looking statements except as required by the federal securities laws.

Today's call also includes certain non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, free cash flow. For details on these measures, including why we use them and reconciliations to the most comparable GAAP measures, please refer to our earnings release issued today, August 15, 2007, and our Form 8-K that has been furnished to the SEC, both of which are available on our web site at investor.DiceHoldingsInc.com.

With that out of the way, I'd like to turn the call over to Scot.

Thank you, Don. First, let me take this opportunity to welcome everyone to the first quarterly conference call for Dice Holdings, Inc. We're excited to be here today and I hope you are as well. We have a few items we would like to cover this morning.

First, since many of you may not be familiar with our Company, I will begin this morning with a brief overview of our business and strategy, then I will share with you some of the highlights of our second quarter performance. I will then hand it over to Mike Durney, our Chief Financial Officer, to take you through our Q2 financial performance and our guidance for the rest of the year. After Mike, I will make a few closing statements, and we'll open it up for questions.

As many of you know, Dice Holdings is the leading provider of specialty career sites for professionals. Our career web sites or job boards bring together talented professionals with the employers and recruiters that are trying to find them. What makes us different, though, us we take a vertical approach. That means that, unlike the generalist job boards which cover all job categories and appeal to all job seekers, we focus on specific professions and specific industries, and each of our career sites is tailored to the specific needs of the communities they serve.

So for example, if you go to Dice.com, eFinancialCareers or some of our other web sites, what you will see are job postings specific to those verticals, as well as content, community features and job search that have all been customized to the unique needs of those communities. We believe that this approach leads to a better recruiting experience for both the job seeker as well as the recruiter.

Today, we operate career sites in four distinct communities. Let me briefly describe each one for you. Dice.com, it's the leading job board in the tech and engineering space here in the U.S. It has been in operation for over 16 years and is used by millions of tech pros each month. We have experienced significant growth in the Dice business over the past few years. In fact, over the past four years, we have more than doubled the number of job seekers that use the service and more than tripled the number of customers that use the service. If Dice.com were a technology publication today, it would be one of the most widely read tech publications in the world.

eFinancialCareers -- the leading global network of career sites serving the capital markets industry. This was an acquisition that we closed in the fourth quarter of 2006. eFinancialCareers operates career sites in most of the major capital market centers worldwide and is used by over a million capital markets professionals globally each month. We have also experienced significant growth in the eFinancialCareers business. In fact, the growth rate of the EFC business actually exceeds the growth of the Dice.com business.

JobsintheMoney, a leading job site for accounting and corporate finance professionals, it has been around for many years and was acquired as part of our eFinancialCareers acquisition. JobsintheMoney is used by about 200,000 professionals each month. We're currently in a process of repositioning the JobsintheMoney service to better serve its users and its customers. As part of that repositioning, we will be focusing this service exclusively on accounting and corporate finance professionals and developing an entirely new web site, which is currently in beta testing. Although this is a small business for us today, we see significant potential in the accounting and finance vertical and we're excited about what this could become in the future.

Lastly, ClearanceJobs, the leading career site in the highly specialized field of finding people with active government security clearance. We acquired this service from the founders in late 2004 and have since grown the business tenfold. We also produce over 80 job fairs in the U.S. each year through our Targeted Job Fairs service, and we operate a technology job board in India through a local joint venture.

Two important things to note about our Company now. With the acquisition of eFinancialCareers, DiceHoldings now operates in 14 markets around the globe and in five languages. On a combined basis, our two largest services -- Dice and eFinancialCareers -- account for over 90% of our revenues.

We believe that we have a very attractive business model. Our service is free to the professionals, and similar to monster and CareerBuilder, we make money by selling job postings, resume database access and advertising. However, we're different from those players due to our vertical focus and in the way we package our services. Most of what we sell are recruitment packages. A recruitment package is a combination of job postings and resume database access. And the reason we sell that way is because we fundamentally believe that by using both sides of the service, the database as well as the job posting side of the service, customers will have the best slate of candidates, and the service, that type of usage, leads to the highest customer satisfaction. I would also note here that 90% of the revenues of Dice come from the sale of recruitment packages.

Another part of our business model is the subscription-like nature of our customer relationships. Although we will sell our service for one-month, three-month, six-month or even 12-month terms, whatever the customer needs, the majority of our customers buy annual agreements and they pay us upfront. This gives us good visibility into our revenue stream and also provides us attractive -- some attractive cash flow characteristics which Mike will take you through in a few minutes.

Our strategy is fairly straightforward. Our goal as a company is to become the leading global network of career sites serving professional communities. We intend to get there first by ensuring that each of our career sites is the leading specialty career site for its community, also by growing the size of our professional communities and the networks of employers and recruiters that try to reach them. I would note here that we have yet to penetrate the market opportunity for our services either here in the U.S. or globally.

We also plan to grow this business by expanding into additional countries. We operate in the multi-billion dollar global market for online recruiting services, and as many of you know, this market is growing very quickly as employers and recruiters devote more and more of their recruiting budgets to the online services. I would add here that this market is actually growing even faster outside the U.S..

And finally, over the longer-term, we're going to grow our business by serving other attractive professional communities. As you can see from our performance, our Company is growing very quickly and we believe that we have a rich set of growth opportunities ahead of us.

Now let me say a few words about our second quarter performance. First, we're very pleased with the second quarter. During Q2, we experienced significant organic growth in each of our key business segments. Sales performance was solid in the U.S., even in a somewhat more challenging market environment. Despite lower than expected employment growth, we had good customer growth in our business and increased our average revenue per customer. Sales performance outside the U.S. was outstanding, characterized by strong customer growth and increases and yield per customer, especially in some of our newer markets, like the Asia-Pacific region.

Job seeker traffic and activity continue to increase across all of our key career sites. The number of unique visitors to Dice.com continues to steadily increase, rising 16% year-over-year with the job views and job applications increasing at an even greater rate. At eFinancialCareers, the number of unique visitors to the network of sites grew by 70% year-over-year, driven by user growth in the UK and Europe, as well as the addition of new users from many of our newer markets. Job views and applications also grew proportionately.

During the quarter, we also made significant progress in integrating our eFinancialCareers acquisition, including the integration of our U.S. sales teams and systems. And I would note here that, overall, the EFC business continues to exceed our expectations for revenue growth and profitability.

Now let me turn it over to Mike Durney, our Chief Financial Officer, to take you through our second quarter financial performance.

Thanks, Scot, and thanks to everyone for joining us today on our first quarterly conference call. In this morning's call, I'm going to take you through the results for the second quarter on a consolidated basis and then discuss the revenue performance for each of the segments, including on a pro forma basis, given the significance of the eFinancialCareers transaction with the focus on a couple of items. First, how we generate and recognize revenue, and second, the impact of our acquisition-related deferred revenue write-down. But before I review the second quarter, let me take you through some of the details of the recent IPO.

On July 23, we completed the initial public offering of 16.7 million shares of common stock at a price of $13.00 per share. Of those shares, 6.7 million were offered by the Company and our proceeds were approximately $81 million net of underwriting fees and commissions. We expect that we'll incur a little more than $2.5 million in expenses related to that offering.

As of July 31, we have net debt of $87.1 million, and for the short-term, we expect to carry a gross debt load of $125 million, which is the amount of our five-year term loan, and the remainder will be held in cash and marketable securities. In addition, we currently have nothing drawn against a $75 million revolving credit facility that we have.

So with that out of the way, now onto a look at the second quarter and some of the metrics that we use to track our business. On a GAAP basis for the second quarter ended June 30, '07, consolidated revenues were $34.5 million compared to $19.2 million for the same period in '06, an increase of 79%. Of that $15.3 million increase, $7.2 million of it was organic growth from our Dice.com, ClearanceJobs.com and Targeted Job Fairs businesses, and $8.1 million of the increase came as a result of the acquisition of the eFinancialCareers businesses, which included the eFinancialCareers sites and JobsintheMoney. Total revenues on a pro forma basis for the second quarter of '06 if Dice had owned eFinancialCareers for that period would have been $24.6 million.

Operating income for the period totaled $7.5 million, up from $4 million in the comparable period, and this increase resulted from the increase in revenue and operating leverage in the core businesses which I will discuss more in a moment. Net income was $1.6 million in the quarter compared to $1.9 million in the '06 period. This decrease resulted from an increase in interest expense as a result of the eFinancialCareers acquisition and the dividend paid in March of '07, the borrowings for such, and the higher effective tax rate all partially offset by the increase in operating income. And earnings from continuing operations per diluted share were $0.03 in the quarter compared to $0.04 in the year-ago period.

Adjusted EBITDA for the second quarter totaled $14.7 million compared to $8.1 million in the second quarter of '06. We define adjusted EBITDA as operating income, plus amortization of intangible assets and depreciation, plus non-cash stock-based compensation, and the impact of deferred revenue written off in the two acquisitions, which I will describe in a moment.

We amortized a significant amount of intangible assets that resulted from both the Dice Inc. acquisition by DiceHoldings in August of '05 as well as the acquisition of eFinancialCareers in October '06. Non-cash stock-based comp totaled $1.2 million in the second quarter compared to about $200,000 in the '06 period. This increase was primarily due to the payment of dividends in October of '06 and March of '07 to the shareholders and the resulting adjustment of the strike price of the options in order to maintain their economic value. As you can see, this has an impact on operating income in the current period.

So before I get into the specific segments, I want to spend a moment on the impact of deferred revenue write-off. To understand our revenue performance and better draw comparisons between the period, I think it's important to discuss the impact that these past acquisitions have had on our deferred revenue balances, and consequently, on our GAAP recognized revenues. Accounting rules related to purchase price allocation require us to write down a portion of the recorded deferred revenue on the books of the acquired entity at the time of the acquisition. In our case, deferred revenue represents amounts that have been contracted and billed, but not yet recognized as revenue. This treatment applied to the acquisition of Dice, Inc. by Dice Holdings in '05, even though the operations remained exactly the same the day after as they were the day before the transaction. In that transaction, we wrote down about 38% of the $16 million of deferred revenue that had been generated by Dice, Inc. as of the closing date. That write-down served to reduce revenues recognized under GAAP by that $6 million over approximately a one-year period since the majority of the Dice contracts were over a one-year period. Therefore, this has an impact on reported revenues in Q2 '06 and served to reduce the revenues for that period by $650,000.

The same principle holds true for eFinancialCareers, although the impact was smaller with eFinancialCareers because a lower percentage of their revenues are billed in advance. Their contracts are generally billed monthly during the term of the contract. Total deferred revenue for eFinancialCareers on the closing date was $3.6 million and we wrote down $2.4 million of that amount. So $518,000 would have been recognized in Q2 '07. We do believe that adding back these amounts to GAAP revenue to arrive at adjusted revenue makes our year-over-year comparisons much more meaningful.

Therefore, everything I say going forward in these remarks about operating performance will include the impact of adding back these amounts to both revenue and adjusted EBITDA. And in the release from this morning, there's a detailed schedule in the back that lays out by segment the impact by quarter for each of the transactions.

So let's look at the segment performance and review some of the metrics that we use to measure our performance. We operate in two segments -- DCS Online and eFinancialCareers. First, DCS Online consists of Dice.com and ClearanceJobs.com, of which Dice.com contributes about 95% of that segment's revenues. As a whole, DCS Online represented about 72% of our consolidated revenues in the quarter, again, after adding back the deferred revenue written off.

Our second segment is eFinancialCareers, which includes eFinancialCareers revenue outside the U.S. And for the second quarter of '07, this segment represented 19% of our consolidated revenue.

Lastly, everything else is in Other, which consists of the eFinancialCareers business in the U.S., JobsintheMoney, Targeted Job Fairs and the results of our joint venture in India. EFC in the U.S. is included in Other because it shares more of the characteristics of the U.S. business and is currently managed by our U.S. operation. In the second quarter, Other represented about 9% of consolidate revenue.

So let's look at the segments individually on a pro forma basis year-over-year. DCS Online saw revenues increase 32% to $25.2 million from $19.2 million in 2006. This increase came from both Dice.com and ClearanceJobs.com. As Scot mentioned earlier, Dice.com generates about 90% of its revenue from sale of recruitment packages. The minimum package that we sell is for one user and five jobs, and then those packages increase from there both in number of licenses to access the database and in numbers of available job slots.

On June 30, we had 8800 of these customers, up from 8500 on March 31 and 7300 on June 30, 2006. We sell these packages for periods ranging from one month to a year, and sometimes longer than a year in a handful of cases, but the vast majority are one-year contracts. Currently, that number is 75%, but 8800 is under a one-year agreement.

You should note that the period end count can be impacted by a variety of things, including the timing of quarter end. So for instance, the count at the end of June was impacted slightly by having July 4th on a Wednesday, which impacted the entire work week, and therefore, we had fewer one-month contracts sold during the end of June than we would have normally had.

The average length of a contract at June 30, '07 was 10.1 months compared to 9.5 months at June 30, '06. So recruitment package customer count is an important metric to follow over the long run to track our performance in the Dice.com business.

The second metric related to the Dice.com business is average monthly revenue per recruitment package customer. This is the amount of revenue we generate on average for each of the recruitment package customers we have measured on a daily basis. The average over the three months in the second quarter was $830 per customer per month compared to an average per month of three months in the comparable '06 period of $772, an increase of 7.5%. This increase comes from two things -- the impact of historical price increases and the impact of selling larger packages to customers as their needs have increased. Keep in mind that these two metrics impact 90% of the revenue generation at Dice.com. The remaining 10% of Dice.com's revenue comes from traditional classify type job postings, which is about 8%, and advertising, which is the remaining 2%.

The second segment in eFinancialCareers, which generated revenues of $6.8 million in the second quarter, up 70% from the $4 million generated in June '06 before we owned it. This growth comes from a number of fronts. First, a strong showing in its own market, which is the United Kingdom where both the number of customers have increased, and there's been an increase in the amount of revenue we generate from customers on average, including the impact of the starting to charge more customers for database access than was previously done. Second, we generate increases in revenues in newer markets like Hong Kong and Singapore and the Middle East Gulf region, which we entered earlier this year. At this point in its evolution, eFinancialCareers customers tend to be more much under a classified type model, and when we sell packages to those customers, there's more a combination of access to the database and a specified number of classified listings.

In terms of eFinancialCareers' growth year-over-year and the impact of currency fluctuations, the growth in local currency was approximately 59%.

Lastly is Other, where we had revenues of $3 million in Q2 compared to $2.1 million on a pro forma basis in Q2 '06. That increase was driven primarily by increases in the U.S. operation of eFinancialCareers and in the Job Fair business. So on an overall basis, revenue totaled $35.0 million for the second quarter, up 39% from $25.3 million on a pro forma basis in the second quarter of '06. Our international growth rate was 70% year-over-year and our domestic growth rate was 32% year-over-year, both on a pro forma basis.

So now let's turn to adjusted EBITDA which totaled $14.7 million in the quarter compared to $8.5 million on a pro forma basis in the prior period, an increase of 73%. The adjusted EBITDA margin was 42% in Q2 '07 compared to 34% in Q2 '06 and the increase in absolute dollars and on a percentage basis results from the significant operating leverage we have in the business. We continue to invest in sales and marketing, a key driver of the business, and experienced great operating leverage in the remainder of the business. So sales and marketing as a percent of revenue was 41.5% in Q2 '06 and 40% in Q2 '07 while having an overall increase in spending of $3.5 million in sales and marketing. So EBITDA margin increased 800 basis points with 150 basis points of improvement coming from sales and marketing and 650 basis points improvement coming in the rest of the operating infrastructure.

Given that the two periods are not totally comparable with the acquisition of eFinancialCareers and the different stages of development and investment in each of the businesses, I thought I'd outline some specific data that highlights our operating leverage. The DCS online business generated an adjusted EBITDA margin of 46% in Q2 '07, up from 43% in the prior period. This increase comes on the heels of increasing sales and marketing expenditures in that segment by 30%. eFinancialCareers segment, which is the international business, again, generated a 41% adjusted EBITDA margin in Q2 '07 compared to an adjusted EBITDA margin of about 13% in Q2 '06. Note that the corporate costs of the Company are all embedded at this point in the DCS Online business.

Going forward, we're not intending to provide adjusted EBITDA data on the individual segments, but given the transitional pro forma nature of our second-quarter results, we thought it would provide some clarity on the nature of the business.

Quickly rounding out the remainder of the P&L. Depreciation expense for the three months was $700,000 compared to $400,000 in '06. Amortization expense for the second quarter increased $2 million to $4.8 million due to the amortization of intangible assets we acquired as part of the eFinancialCareers transaction. Net interest expense for the quarter was $4.2 million compared to $900,000, an increase of $3.3 million. This was due to the increased debt related to the eFinancialCareers acquisition and borrowings for the two dividends, one in October of '06 and one March of '07. Keep in mind, however, that the capital structures changed as a result of the IPO, so you'll see our interest expense much lower and interest income much higher going forward.

Now let's turn to the balance sheet. Earlier I discussed the status of our cash and debt position in connection with the IPO, so I'll move onto deferred revenue and accounts receivable. Deferred revenue for us represents orders booked that have been billed, but for which revenue has not yet been recognized. In the U.S. operations, it is common for us to enter into a contract for which the entire amount of the contract is billed up front. In fact, most of our customers are billed that way. For recruitment package customers, we recognize revenue ratably by day over the period of the contract, and because about 75% of our contracts are annual, we generally have a large amount of deferred revenue with good short-term visibility.

On the international business, its a little bit different as the majority of the contracts are billed monthly over the term of the contract no matter what the length of the contract. So the eFinancialCareers segment has a lower amount of deferred revenue as a percentage of revenue recognized, but that should not be mistaken for its growth rate. As of June 30, deferred revenue was $44 million compared to $26 million a year ago, an increase of about 67%. About $5.5 million of that increase is related to eFinancialCareers. The quarter end balance is a 28% increase over the deferred revenue balance at the end of '06. We typically have the biggest increase in deferred revenue in the first quarter when we generate the highest number of net new customers and when we sell a lot of annual contracts for which revenue is recognized during the remainder of the year.

In terms of accounts receivable, we typically collect what we bill in the U.S. within 30 days, so our DSO at June 30 '07 is less than 30 days. On the international side, the historical collection practice has not been as stringent, so the DSO is longer, but we're working to change that and have made some progress already. The net result of all of that is that we generated significant amounts of cash in advance of providing the service. Cash flow from operations was $12.9 million for the second quarter, an increase of $2.3 million compared with the '06 period. That's due to an increase in adjusted EBITDA, partially offset by interest payments again which will change, but that totaled $5.1 million in payments in Q2 '07.

So let's move on to our look going forward. For the first time, we're providing an outlook for the third quarter and the remainder of '07. This is the first time we've provided this look. Going forward, we intend to provide an update on the current quarter when we release earnings for the just completed quarter and provide an update on the full year to the extent we have something to say about the full year. When we release earnings for the fourth quarter in January or February of '08, we intend to provide our first look at the upcoming calendar year '08.

In the third quarter of '07, we anticipate generating total revenue of approximately 36 to $37 million and we expect that distribution of revenue to be approximately 71% for DCS Online, 21% for the eFinancialCareers segment and the remaining 8% from Other. We expect to increase our investment in sales and marketing in absolute dollars again, but as a percentage of revenue, we're looking for 38 to 40% of revenue. We anticipate an adjusted EBITDA margin of about 40 to 41%.

On the domestic side, we have excellent visibility into near-term generation. We generally enter a quarter with approximately 55 to 60% of the upcoming quarter's revenue already under contract, which was true again in this third quarter. As of today, we're halfway through the quarter. We have approximately 85% of the domestic revenue either already billed or under contract to be billed. For the international operation, the amount booked is roughly the same, although the visibility is generally less in terms of the nature of billings being on a monthly basis, but we feel pretty good about our look at the international business.

In the release, we provided a look at the fourth quarter to help you round out the year, but in summary for the full year '07, we expect total revenue to be approximately 139 to $140 million, taking into account the add-back of deferred revenue that I've describe before, and that is articulated in the release. For the full year, we expect adjusted EBITDA margin in the range of 41 to 42%. As compared to the second quarter results, the third and fourth quarter will have the impact of being a public company which will increase G&A by about 2% of revenue for Q's 3 and 4.

CapEx for the full year is expected to be in the range of 4 to $5 million, so the second of the year will be in the 2 to $3 million range, depending on the timing of implementing a couple of our initiatives. We expect our interest rate going forward to be 8.8% for both Q3 and Q4 and our tax rate to normalize to a blended 40% rate. Non-cash stock comp is estimated at about $1.25 million for each quarter. And, finally, our share count is expected to be about 62 million with 8.2 million options outstanding at an exercise price on average of $1.90. At this point, we don't see a large number of options being granted nor exercised during the remainder of '07.

So in closing or '07, we have a global business that we think will grow 35% year-over-year with adjusted EBITDA margins of over 40% and generating significant amounts of cash, and we're quite pleased with that. So with that, I will turn it back to Scot.

Thank you, Mike. Let me wrap up our formal presentation with a few closing thoughts.

First, we are very pleased with the second quarter performance. As we mentioned earlier, we experienced strong organic growth across our key businesses, achieving a very healthy year-over-year revenue growth rate of 39%. We also made solid progress on the operating side of the business, including strong job seeker growth in our key career sites, successful integration of the eFinancialCareers acquisition and continued product development efforts across all our product lines.

I would like to thank all of our employees globally for their hard work and dedication. As you know, going public can be a tremendous distraction for a company and we did not lose one ounce of our focus or performance during that process. And I think that is really a testament to the quality of our employees around the world. So, thank you all.

What can you expect from us in the coming quarters? You can expect us to continue to invest in sales and marketing in a measured way with a focus on penetrating our customer opportunity and growing our professional communities. You can expect us to continue to invest in product development, whether it is new content or features for the Dice service or the eFinancialCareer service, or a completely new career site in the case of JobsintheMoney, we will continue to strive to provide more value and ease of use for our professional communities. And, you can expect us to continue to grow our business, both domestically and outside of the U.S. Along with our growth here in the U.S., we see terrific opportunity in Europe and Asia with our current services. So you can expect to see a greater proportion of our revenues from non-U.S. services in the years to come.

So with that, I thank you all for listening and let me open up the call for questions.

(OPERATOR INSTRUCTIONS). Lisa Monaco, Morgan Stanley.

Scot, if you could just elaborate a little bit on your comments, I think it was particularly pertaining to the U.S. employment growth in the second quarter. If you could just elaborate on that and what you're seeing in the third quarter. And then secondly, Mike, in the guidance, can you just give us an idea for how much, if any, investment spending you have for expansion of the Dice outside the U.S.?

Sure. I made a brief comment about there being a somewhat more challenging market environment in the second quarter, and I was really referring to the employment growth rate that the economy as a whole had. It really didn't have much impact at all in our business as you can see in the second-quarter results. As far as the third quarter, I'm not going to make any specific comments about Q3, other than to say that our business continues to grow very nicely and we are very comfortable with our guidance.

On investment spend outside the U.S., as it relates to Dice, there is some continued investment in the operation which we have had since we launched that venture, and there's no new investments spending for the technology group outside the U.S. On the rest of investment spend in the U.S., we are spending some in anticipation of the relaunch of JobsintheMoney. So there is some spending in Q3 for that, although it's not very much.

Heath Terry, Credit Suisse.

You mentioned the macroenvironment that you saw in Q2. I was wondering if you could kind of break out for us what you're seeing specifically within the macroenvironment for tech, and to what degree you feel like the outperformance that you had against the overall jobs market was related to your focus on technology, or simply something that you are doing within -- or something that Dice is doing specifically besides the technology focus?

Sure. You know, if you look at the tech employment market and the financial services employment markets, which are the two largest that we participate in, both are very tight labor markets today as I think everyone knows and continue to be so. I think our focus on those markets definitely benefited our results, but also if you think about our company, we're really in a stage of penetrating the market opportunity. So really what drove the results in the second quarter and what continues to drive our results is really penetrating that opportunity that we have.

Great. And then as you move to relaunch JobsintheMoney, can you talk about just strategically how you're going to position JobsintheMoney versus eFinancialCareers as you start to expand those two businesses into markets where they will overlap more?

Sure. What is interesting is when we got the JobsintheMoney business as part of our acquisition of eFinancialCareers, what we found is that eFinancialCareers has a solid positioning in the capital markets, very well-defined, very solid positioning. The JobsintheMoney service though had a broad kind of financial services orientation. So it was trying to I think be much broader than what we felt was necessary, and was actually hurting us in terms of performance. So as a result, what we're doing is we're refocusing that service exclusively on the accounting profession as well as well we call corporate finance. These are financial professionals that perform duties within corporations and industrial companies across the U.S. So the distinct positioning is eFinancialCareers is the global network serving the capital markets industry globally. JobsintheMoney is a U.S. site serving the accounting and corporate finance profession. And we're very excited about that new positioning and the new site will be up in the coming months.

(OPERATOR INSTRUCTIONS). At this time, there no further questions in the queue. I would now like to turn the call back over to Mr. Scot Melland, CEO. Please proceed for closing remarks.

Thank you. Well, thank you all for joining us this morning. We look forward to speaking with you again with our third quarter results. In the meantime, if you're looking for information about our Company, please visit our corporate Web site. which is DiceHoldingsInc.com.

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect.