Q4 2022 DHI Group Inc Earnings Call
Hello, and welcome to the D. H I agree its fourth quarter and full year 2022 financial results conference call all participants will be in listen only mode.
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I would now like to hand, the conference over to Todd Curly NK or Investor Relations Todd. Please go ahead.
Thank you operator, good afternoon, and welcome to D. H I group's fiscal 2022 fourth quarter and year end earnings conference call.
With me on today's call are due which is C. O R J, Li and Chief Financial Officer, Kevin Boston.
Before I turn the call over to art I'd like to cover a few quick items. This afternoon DH I issued a press release announcing its fiscal 2022 fourth quarter and full year 2022 financial results. The release is available on the company's website at D. H I Group, Inc. Dot Com. This call is being broadcast live over the air.
Net for all interested parties and the webcast will be archived on the Investor Relations page of the company's website.
I wanted to remind everyone that during today's call management will make forward looking statements that involve risks and uncertainties. Please note.
That except for historical information statements on today's call may constitute forward looking statements within the meaning of the federal Securities laws. These forward looking statements reflect management's current views concerning future events and financial performance and are subject to risks and uncertainties and actual results may differ materially from the outcome.
<unk> contained in any forward looking statements.
Factors that could cause these forward looking statements to differ from actual results include the risks and uncertainties discussed in the company's periodic reports on Form 10-K, and 10-Q and other filings with the Securities and Exchange Commission.
<unk> undertakes no obligation to update or revise any forward looking statements lastly, during today's call management will be referring to specific financial measures, including adjusted EBITDA adjusted EBITDA margin and adjusted diluted earnings per share that are not prepared in accordance with U S. GAAP information about.
And reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are available in our earnings release.
Copy of which you can find on our website at D. H I groups Dot com in the Investor Relations section with that I'll now turn the call over to art <unk> CEO of the DHA group.
Thank you Todd good afternoon, everyone and welcome to our fiscal 2022 fourth quarter and year end earnings conference call. Thank you for joining us today.
We are pleased to report that we delivered solid revenue growth in both our fourth quarter and full year as employers continue to use our subscription based offering to fine attract engage and higher the highest quality tech professionals.
With a significant supply demand gap created by the large number of tech job openings more employers need access to our growing community of $6 5 million Tech candidates.
There continues to be strong demand for technologists across all industries, even in this difficult environment as they ramp their technology initiatives.
December represented the 25th consecutive month of Tech employment expansion in the United States and employers posted job openings for over 833000 tech jobs during the fourth quarter. According to information technology trade groups come to you.
Notably this is a deceleration from the $1 6 million posted job openings in the second quarter of the year.
Nevertheless, because of the unemployment rate for technologists dropped in December to 1.8%. There remains two job openings for every one tech worker looking for employment and 72% of all laid off check workers have found new jobs within three months. According to a recent study by <unk>.
Rebel Youll labs, a workforce data provider.
Our two subscription based offerings dice and clearance jobs are both tech focused career marketplaces that attract the highest quality tech professionals.
He has over $5 1 million technologists, well clearance jobs has 1.4 million tech professionals with government clearances, and we continue to grow the number of technologists on both marketplaces each quarter.
Our marketplaces are solely focused on serving the technology work force where candidates are measured by their technology skills that they've acquired over their careers and not their job titles.
Both marketplaces use our proprietary tech skills mapping taxonomy and search algorithms to enable their subscribers to find and engage the best Tech candidates for their open positions based on the specific skills requested.
Providing a competitive advantage for both dice and clearance jobs.
Now, let's dig into the performance of our two brands during the fourth quarter and what we see ahead for each in 2023.
Starting with dice and the later stage of the fourth quarter, we began to see the impact of a lengthening sales cycle on our dice new business bookings as many companies are starting the new year with a very cautious spending outlook.
These headwinds contributed to dice bookings being down 1% year over year during the quarter.
Mmm.
Dice commercial accounts continues to be our most significant growth opportunity with now over 100000 companies in the United States meeting our ideal customer criteria.
The staffing and recruiting industry continues to be a significant growth opportunity for dice as well with approximately 18000 staffing and recruiting firms operating in the United States.
Today, we service just a fraction of them, leaving us with a significant opportunity for growth as we expand into this market.
Dice added several new clients in the fourth quarter, including U P. S. Intelsat in the U S Senate Sergeant at arms.
As we described in last quarter's earnings call. We have made a concentrated effort to focus on larger and more stable clients given the state of the economy.
This focus on larger more stable customers <unk>.
Coupled with the link thinning of new business sales cycles, as well as customer churn resulted in our fourth quarter dice customer account being slightly less than last quarter.
The clients that churned during the quarter, we're almost entirely less than $10000 in annual contract value consistent with our thesis that smaller customers are less stable during times of economic uncertainty.
We are seeing are larger more stable customers renew and increase their contract values as evidenced by our strong revenue renewal and retention rates.
Additionally, our average dice annual contract value increased 11% year over year in the fourth quarter.
Now, let's turn our attention to C. J, we have two substantial growth opportunities with our Clearancejobs brand that are not being impacted by the current state of the economy.
The first is the government contractor market we.
We currently have over 2000 contractor clients and know that there are over 10000 cleared employers that can use our services.
The second growth opportunity is selling C. J subscription offering directly to the multitude of U S. Government agencies that are in need of highly qualified technologists and are competing against private sector for these candidates.
We continue to advance our relationship with government contractors and U S government agencies and added several new clients during the quarter, including the National Reconnaissance office and United launch Alliance.
During the fourth quarter, our bookings for CJ grew 17% year over year, and our revenue renewal and retention rates were excellent coming in at 98% and 117%.
All of this resulted in our C J revenue, increasing 23% year over year for the quarter.
Now, let's look at our expectations for 2023.
As I discussed on last quarter's conference call. We have several levers for driving continued double digit sales growth this year.
The first letter is to continue executing on our baseline growth strategy, which include selling multiyear contracts that include year over your price increases and contracts with auto renewal clauses.
Ending 2022, approximately 20 per cent of our customers had contracts for two or more years, and 94% had a contract with an auto renewal clause, which includes an annual price increase.
These automatic price increases are a predictable driver of continued sustainable revenue growth.
Our second lever to drive growth is our increased focus on your one client renewals, we focus on ensuring new customers received great return on investment in their first year.
This is critical as renewal rates are significantly higher if a customer stays with the H I longer than one year.
During 2022, we created a new account special handling group and generated a large uptick in our first year customer renewal and retention rates, which is laid the foundation for continued revenue growth in 2023.
Our third lever for growth focuses on our continued evolution to create holistic solutions for our clients.
A revenue stream, we expect to grow in 2023 is corporate branding.
Allowing companies to tell the story of their mission values and culture through video images and text.
Because technology candidates are in such high demand they moved for a new opportunity only if it has the right combination of compensation technology stack and culture.
During the quarter, we launched the C. J company page Ah new incremental invoice line item added to a client C. J subscription with an entry list price of $10000 per year.
We have already sold many of these packages despite releasing this capability at the end of the fourth quarter.
We anticipate delivering an equivalent offering for dice by the end of the second quarter.
The fourth lever for growth is the focus on our new business efforts on the specific industry verticals that have the highest tech hiring needs right now.
We use workforce data provider light cast <unk>.
The exact number of new tech job openings by company each month.
We know that the aerospace defense consulting.
Banking finance and health care industries have the highest number of postings currently.
The elevated tech openings in the aerospace defense sector is a clear result of the U S signing the largest defense budget.
Increase in decades late last year.
In order to take advantage of this tailwind we have already transferred several of our dice new business team members to our equivalent clearancejobs team to focus on the significant opportunity.
In addition to growing bookings in revenue in 2023, we will continue to focus on expanding our technologist community through our brand advertising campaigns.
In the fourth quarter. These campaigns drove roughly 44000, new dice members each month to our community and we generated a 43% lift in traffic to our site over the past year.
In the fourth quarter, the dice product team delivered a completely revamped technologist onboarding experience that makes it even easier for a new dice candidate to complete a profile and become a member.
Adding tech professionals for marketplaces attracts more employers, making our platforms and turn more valuable to tech professionals enhancing the two sided marketplace.
In summary, despite the challenging macro economic environment demand for technologists continues to be strong and with our industry, leading offerings and a large target markets for both dice N. C. J, we have several levers to drive continued bookings and revenue growth in 2023 and well into the future.
On that note, let me turn the call over to Kevin who will take you through our financials and then we'll take any questions you may have.
Kevin.
Thank you art and good afternoon, everyone.
Let me go into a bit more detail on our fourth quarter financial results.
We reported a total revenue of $39.8 million, which was up 3% sequentially and 18% year over year.
Total bookings for the quarter with $37.7 million up 4% year over year.
Dice revenue was $28.2 million, which was up three per cent on a sequential basis and 16% year over year.
Dice bookings were $25.7 million down 1% year over year.
We ended the quarter with 6311 dice recruitment package customers, which is down 2% from last quarter and up 5% year over year.
Our average annual revenue per dice recruitment package customer was up 3% sequentially and 11% year over year to $15384.
Approximately 85 per cent of dice revenue is recurrence and comes from annual or multiyear contracts.
Our dice revenue renewal and retention rates remain strong during the quarter with the revenue renewal rate at 94% and the retention rate at 107 per cent.
[noise] metrics continues to demonstrate the value of the dice products and recruiting technology professionals.
[noise] Clearancejobs revenue was $11.6 million up 4% sequentially at 23% year over year book.
Bookings for C, J or $12.1 million up 17% year over year.
We ended the fourth quarter with 2064 C. J recruitment package customers, which is up 2% from the third quarter and 10% year over year.
Our average annual revenue procedure, a recruitment package customers was up 3% over last quarter.
11% year over year to $19872 a <unk>.
Proximately 90 per cent of CJ revenue is recurring and comes from annual contracts.
For the quarter R. C. J revenue renewal rate was 98% and CJS retention rate was strong at 117%. These.
These outstanding renewal metrics demonstrate the continued value C J delivered and the recruitment of cleared professionals.
Turning to operating expenses fourth.
Fourth quarter operating expenses were $39 million compared to $33.6 million in the year ago quarter as we continue to invest in our sales team as well as third party marketing spend to drive increases in marketing qualified leads.
In addition, we continued to invest in our broader brand awareness campaign to drive technologist growth on our platform.
For the quarter, we add income tax expense of $358000 on income before taxes of $2.7 million.
Our tax rate of 13% for the quarter different from our normal expected rate of 25 per cent due to the reversal of liabilities for uncertain tax positions as federal and state statutes expired.
We recorded net income of $2.4 million or five cents per diluted share, which includes the positive impact of $2.1 million of proceeds from a legal settlement associated with a business D. H I divested and 2018.
Net income for the prior year quarter was $232000 or zero cents per diluted share.
Adjusted diluted earnings per share for the quarter was one cent compared to zero cents for the prior year quarter.
Diluted shares outstanding for the quarter or $46.1 million compared to $48.7 million in the prior year quarter.
Adjusted EBITDA for the fourth quarter was $8.1 million a margin of 20 per cent compared to $7.1 million or a margin of 21% in the fourth quarter a year ago.
We generated $7.3 million of operating cash flow in the fourth quarter compared to $3 million in the prior year quarter.
Free cash flow, the fourth quarter, which represents operating cash flow less capital expenditures with $2.8 million compared to negative free cash flow of $642000 in the year ago quarter.
From a liquidity perspective at the end of the quarter, we had $3 million in cash and total debt outstanding of $30 million under our 100 million dollar revolver.
Deferred revenue at the end of the quarter was $50.9 million up 10% from the fourth quarter of last year.
Our total committee contract backlog at the end of the quarter was $117.3 million, which was up 27% from the end of the fourth quarter last year.
Short term backlog was $91.5 million at the end of the fourth quarter, an increase of $12.5 million or 16% year over year.
Longterm backlog that is revenue to be recognized and 13 or more months was $25.8 million at the end of the quarter, an increase of $12.1 million or 88% from the prior year.
During the quarter under our share repurchase program, we repurchased approximately 640000 shares for $3.6 million, an average price of $5.59 per share.
As a reminder, our current share buyback program includes a 15 million dollar authorization, which expires this month of.
Of the $15 million authorize $2.1 million remained available under the program at the end of the quarter.
Looking forward for the full year 2023, we expect our total revenue to grow in the low double digit percentage range for each quarter throughout the year.
From a profitability perspective, we expect to maintain adjusted EBITDA margins at or near 20 per cent with margins expected to expand over the next six to 12 months.
We're not limiting our investment in sales and marketing in the near term, but we'll manage our hiring an expense structure accordingly during this challenging environment.
We remain focused on driving longterm sustainable value creation and want to be well positioned from our customer acquisition perspective, when the economy became to recover.
You wrap up we are very pleased to see our retention metrics remains strong driving our revenue growth in 2023.
Our customers recognize the value of our platform and their need to stay on it to be successful.
Additionally, the fact that we continue to add a significant number of new technologists each quarter to our marketplace. Further validates are offering and adds value to the market places we have built.
And with that let me turn the call back to art.
Thank you Kevin I'd like to close by once again thanking all of our employees for their hard work. This past year. It is a pleasure to be part of such a great team with that we're happy to take your questions.
We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad if.
If you're using a speaker phone please pick up your handset before pressing the keys.
To withdraw from the question can you please <unk>.
At this time, we will pause momentarily to assemble our roster.
The first question today comes from Zac candidates with be Riley Securities. Please.
Please go ahead.
Great <unk> Hi, Kevin Thanks for taking my questions first I just yeah, just just starting off with dice here in terms of new business and I mean it.
Sounds like you are starting to see some extended sales cycle towards the end of December .
I mean can you talk a little bit more about that dynamic and are are a lot of those opportunities completely going away or just put on pause for now as many of these companies figure out there they're hiring plans for the coming year.
So great question and again kind of Big picture Wise, we do have three new business teams. There are two that are associated with dice and that's a team that specifically looks for commercial accounts and another team that works with staffing and recruiting agencies. We have that third team that is new business procedure.
And I just wanted to reiterate that we really didn't see any kind of material change per C. J clearancejobs new business during the quarter, but what we saw were sales cycles that basically linkedin for the purposes of commercial accounts from roughly 35 days during the third.
Third quarter of last year to about 45 days, so approximately a 30% increase in the sales cycle I personally believe that a lot of companies are still trying to figure out their forecast for 2023, given the uncertainty of the economic environment and what that means is they have basically linkedin their budget.
Making process and without having that budget and place our clients are prospective clients for these new business teams are having a hard time figuring out what they're hiring plan is for the year and so I think that those deals that are in the pipeline will get signed eventually if the company.
Believe in the growth prospects they have for 2023 and they need technologists, but that's the reason why we essentially are talking to them in the first place, but it has been a lengthening of that sales cycle that has caused.
Are are dropping.
Drop in bookings.
Understood and and then just talking about the rest of your attention side of it Amy nice to see it holding up pretty well for dice. Despite all the all the layoffs that we've seen in the tech sector, but I mean can you just talk about how that's been trending in recent months if I recall a majority every renewals typically happened in December and January time.
[noise] frame. So just curious of how the overall renewals have been trending and any particular areas of churn that that particularly stand out whether that'd be sector or it sounds like it's at the lower end when it comes to company size.
Yes so.
Just to be clear and you mentioned it in your question, we do have seasonality to this business in the sense that a lot of renewal activity takes place in Q4, and Q1 with a large amount within the quarters themselves that are prescribed to December and January and that's really.
A matter of thinking about that budget cycle for our customers. They have generally in the past at least historically wanted to tie the contracts to their calendar year, because that's where they get their budget authority. So we did see uhm our customers from large.
Part renew at elevated rates and if you think about our two 422 renewal rate for revenue. It was 94% for dice that compares to 91% in the queue for a period of 2021, So I believe that we've made sustainable.
Progress in the way that we essentially manage our accounts we've talked about it in past earnings calls, where we essentially have a health score that dictates. What we think is the right set of metrics that show the health of our relationship with our customers that's really working for us at this point in time.
I would say that the retention rate, which is at 107% for this passport or for dice also compares favorably to the 101% figure that we had for two four of 21. So we're doing a good job of retaining those customers and also up selling them now.
As I pointed out in my remarks, we did see customers Chern and this fourth quarter at what I would consider to be a.
A little bit of an elevated right and what I mean by that is that our renewal rate on count for days was 83 per cent and a quarter that compares to 86% a year ago. So those customers. When you look at the actual customers that left us for the most part almost exclusively we're in the category of $10000 or less.
And ACB bemoaning, the fact that they were really small customers and as we think about it we think that when times are tough when you go into economies that are uncertain. It's those smaller customers that are obviously the ones that are most at risk for going out of business or for cutting back expenditures <unk>.
Lately and including our platform.
Understood. That's that's helpful and just final question for me geared towards Kevin I mean, we were thinking about margins. It sounds like they're expected to kind of hanging around 20 per cent level for maybe the next couple of quarters, but how do you see margins trending towards the back half of the year as as you get more operating leverage to the bottom line.
[noise] sure.
We're expecting that margins will expand a couple of percentage points over the coming quarters. So we thank for Q1 Q2, it'll be as we said on her about that 20 per cent level and then we'll start to see some modest level of expansion.
It's not gonna be material, but it will be a per cent or two as we exit 2023, and that's really based to your point on the economies of scale and we're not gonna shift much of our spending as we think that you know on the sales and marketing side that there continues to be an <unk> value in creating those relationships.
While the sales cycle may be extended that they are still ultimate buyers of our product.
Understood well, thanks for taking my questions and best of luck with the coming quarter.
Really appreciate it thank you.
The next question comes from Eric Martin Easy with Lake Street. Please go ahead.
Yeah I wanted to.
Take a look at a 2023 outlook hair, just first of all clarification the.
Double digit growth are we talking 10% to 12%, 10% to 13% is that we're talking to them.
Yeah, I I think I think the the first time that you made him at 10% to 12% range is is how we think about the low double digit range.
Okay, that's exactly right.
Yeah, and then the bookings assumption bookings growth rate assumption for 2023, obviously.
R Q.
Q for kind of cut you off guard with the 4% bookings grew up but we were at 20 per cent, 20% bookings growth for the year.
It is what is implied in the 2023 growth rate for bookings.
At a given that we're saying 10% each quarter.
Growth rate on revenue it would be a similar type of metric for for bookings. So again that low double digit that is.
As you said, 10% to 12% range.
Okay.
And then your.
As we look at the the sales force productivity.
Have you been is it strictly a macro issue or their execution issues and the and the fourth quarter.
I would describe it is macro issues. It is that swelling of the sales cycle and in the <unk> in particular, two dice not to see J and their new business team.
Mhm.
Yeah, and definitely it's great to see those renewal rates, saying so strong.
Last question for me the the repurchase plan what can you tell us about your pretty close to exhausting that with I think you said.
Two 2 million or so remaining.
Yeah $2.1 million remains to be the end of February what's the intention do you plan to reload there do you plan to pause and take a break.
Well I can tell you that we have consistently had a stock repurchase program in place during the almost five years that I've been on board and I don't perceive changing that this year.
And you're absolutely accurate that we're almost exhausted for the plan itself.
Thanks for taking my question.
Thank you Eric.
The next question comes from Kevin <unk> with Cailloux and company. Please go ahead.
Alright, good afternoon guys.
[laughter] that sounds like you're planning to continue investing significantly and it still doesn't work at least in the near term.
Talk about whether you've seen any sort of changes.
The number of marketing qualified leads or other metrics they pay close attention to and what is giving me that confidence to continue Steven as some of the the sales cycle slow with it on the dice I.
Yes, I would say that we are continuing to invest in sales and marketing that's a very accurate way of looking at the current positioning the company. We believe that there are headwinds that we're facing right now, but we want to make sure that we are in a posture to take advantage of.
The market conditions once they get better and more clear for everybody that's involved and so when I think about our marketing spend what we're doing right. Now is we're trying to make sure that we're much more targeted in terms of those M. Ql's that we are searching for and so our campaigns are looking in those.
Categories those industry verticals that still have an elevated number of tech physicians and I kind of mentioned them in my remarks, Aerospace defense consulting, meaning companies like Deloitte and Accenture and also health care and banking finance, so I'd say that.
And what has transpired due to our experienced in Q4 is we've sharpened our marketing spend to be geared towards those industries that we think are less.
Prone to any kind of a recessionary impact and so again I would say that we're actually expanding the number of M. Ql's Q4 to Q1 that is our plan, but we're much more targeted and more laser focused on those are the areas of the economy that we believe are going to.
Venue the need tech professionals at elevated rates.
And you said and just within the framework of the outlook you laid out for 28 23 here Uhm should we expect that I can choose their bookings go with that more kind of depressed levels at least early in the year, whereas clearancejobs has the potential to accelerate where how're you guys. Just thinking about you know the contribution from from the two market places over the course of the year.
Yeah, I I think you're you're spot on Kevin is that we do expect C. J to continue performing at levels that.
That we have seen over the last several quarters and we will be lower on the dice side and so all in I would say the combined rates will be in those low double digits.
Alright, and then <unk>, what kind of a positive reception center.
The quicker alright barely heard it on C. J. So far is that looks like it says kind of accelerated growth rates over the course of the year is more customers have exposure to that or or how materials.
That's added to get here.
I would say that I believe when you think about the current psychology in the market and particularly for commercial accounts.
They are going to essentially realize one way or another that they have hiring plan and they need to essentially enacted.
Some time in the first quarter second quarter of this year and then we should see what I would consider to be a more normalized pattern of a sales cycle for us for dice and as we've said you know clearancejobs is really unaffected by the current economic situation. In fact, we believe that there is a tailwind that we want to take advantage of because of.
A larger defense budget in fiscal year 2023, and so again, that's our our view is that we should see.
The sales cycle stabilize just because at some point people are going to have their view of the economy to come and they're gonna place their bets by virtue of their budget and then that will open up their hiring plan for.
The remainder of the calendar year.
I appreciate that contact I was actually asking specifically about the corporate spending habits. I was just wondering what sort of reception you had that whether you would expect that to accelerate C. J. So can you even more so.
Oh, I'm, sorry, I missed that aspect of the question. So I will tell you that we have booked roughly about 10 of these company pages.
In the last month or so little bit over a month's we have another dozen that are in the pipeline. So it's pretty early days per clearancejobs and it's the kind of products, where the salesperson needs to be able to show a representative sample. So now we're gonna have.
Two dozen representative samples for our sales team to really point out to the perspective ones that they're trying to talk through the sales cycle with I I do think that it's going to help C. J over the course of the year, but we have not modeled that into any of our.
Budget, our plans are forecast you know the the description that we've just provided.
Yeah, I understand and I appreciate you taking my questions and good luck to Sir of course.
Thank you Kevin.
The next question comes from <unk>. Please go ahead.
Hi, and thank you for taking my questions and.
Nah, that's Sharon you're talking about that thing a smaller customers.
<unk> on on potential projects are in among those.
But for the existing smaller customers and quarters to come is that what you're asking about one.
Yeah.
I think that go ahead, Kevin Yeah, I was gonna say.
It could be clear as we saw churned from our smaller customers it wasn't necessarily significantly different than what we had seen maybe up a little bit what we did not see was churn from the larger customers or as big of an addition of larger customers because of the new business kind of extended sales.
[noise] cycles, so wow, our our customer account came down and it was heavily heavily driven by those customers with $10000 or less and contracts. It was not materially different than what we had seen in previous quarters. So it is when you think.
About what is driving a reduction in customer account. It is the turn of the smaller customers, but it's not it's not significantly different than we had seen previously they're they're definitely whether it's customer size it whether they're smaller larger they do get treated the same way by the Nash team, which is that new account special handling.
And they also do work with our clients access organization in the way of <unk> et cetera, but I would say it wasn't as if the chern and smaller customers spiked.
You know significantly more than we had seen previously.
Okay. Thank you and then and <unk> and <unk>.
And and then nice about around <unk>, how do you think that may affect your business is definitely can.
<unk>.
That's a really great question actually so our chief Technology Officer, Paul Farnsworth actually is investigating a number of different a I technologies that are available right now on the market, including chat G. B T. We think that they could be additive to our platform in other words, we can essentially create a better especially technol.
<unk> experienced by using the open a P I to chat G. P T to essentially enable a much more.
Kind of personalized content, meaning if a technologist comes to the site and is a cyber security professional they could essentially entering questions that are focused on their area of specialization and get content that is proprietary to our site because it's written by our editorial team.
As well as other content that is available through chat GPT to answer a specialized questions about their careers. So it's an area that we are investigating but there's nothing that's on the product road roadmap right now, but great question and I can tell you that big a percentage of our engineering team is very fascinated with the opportunities that.
[noise] available by chat G B T N and the number of different kind of variance of AI that are emerging in the market.
Okay that sounds exciting and just the last one for me have you seen any changes in the competitive landscape.
No in fact, I would say that the competitive landscape has been very stable over the last year or so I would say that the last competitor that left the market was stack overflow and there really hasn't been any new additions to the competitive.
Landscape for technology workers or people that have dropped out it has been kind of roughly the same for the last year.
Okay. Thank you that was not for me.
Thank you on Ya.
This concludes our question and answer session I would like to turn the conference back over to D. H I agree with C. E L. Alright daily for any closing remarks.
Well. Thank you operator, and thank you all for joining US today as always if you have any questions about our company or would like to speak with management. Please reach out to Todd Curly and he will help arrange a meeting and thanks, everyone for your interest in D. H I groups and have a wonderful day.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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