Robert Half International (RHI) 21 Oct 222022 Q3 Earnings call transcript

Hello, and welcome to the Robert Half Third Quarter 2022 Conference Call. Today's conference call is being recorded. [Operator Instructions] Our hosts for today's call are Mr. Keith Waddell, President and Chief Executive Officer of Robert Half; and Mr. Michael Buckley, Chief Financial Officer.

everyone. Hello, time your today. appreciate We

our we I'd of that including what to statements about you the future started, comments Before predictions our made judgment estimates statements, like the forward-looking on remind contain These get today's current performance. future holds. and represent call

in that press uncertainties materially no most However, forward-looking from SEC. our uncertainties risks statements. they release, are actual XX-Q these These the today's the the to cause are and call. described obligation statements the today's in results and subject risks and with XX-K and could to update recent on to differ made filed assume We

this to these are release. these During measures measures mention adjusted. our financial in explanations non-GAAP and figures supplemental a earnings of we included reference press schedule presentation, Reconciliations may some as and further

the presentation this for rates in intersegment from related services of provided XXXX. specializations and and is these each of with also revenues blended disclosed. the for businesses revenues intersegment combined Protiviti includes of Our contract functional also amount is schedule Protiviti through with consulting operations. supplemental we revenues Company's growth manage revenue showing a schedules to XXXX This talent solutions and just The how our connection include internally. mentioned The measure information separately

of Investor your roberthalf.com. For are call convenience, our prepared our website, Center today's in the remarks available for

highs. or XX% X% year. XX% strong XX% are and for quarter XX% pleased of last the same revenue over or new the revenues quarter reached currency led for Permanent way, adjusted We and to third all-time Protiviti the in report currency adjusted growth placement above growing very year-over-year

demonstrate as in third reported share flow teams total and in the our third on global the In per year's an their $X.XX, up our a which billion $XX quarter cash income basis, our $X.XXX XXXX, Companywide record, outlay revenues quarter Cash testament same quarter adjusted strength Our Net makes as from the on results X% last quarter quarter and as a cash a we possible. XX% to success operations agility September, of up are were was persistence, per-share of they million. was million. from $X.XX the the the for of basis. ago. shareholders third dividend to third of during year distributed in a $XXX a

annually Our since XX.X% The has inception XXXX XXXX. XX.X% September per-share grown dividend than in dividend in XXXX. higher was

Robert Half We $XX also the million. shares quarter million acquired approximately for X.X during

Return the million third X.X have available plan. company under capital invested repurchase repurchase XX% shares We in was for board-approved on for the stock our quarter.

Now Buckley. I'll over our Mike to turn call the CFO,

Thank you, Keith, hello, everyone. and

billion, in the $X.XXX noted, $XXX as quarter. million, third up global XX% an revenues were an third U.S. billion basis. as talent talent solutions talent year-over-year. year-over-year revenues prior were solutions XX% adjusted adjusted Keith revenues revenues As Non-U.S. year. were the basis, XX% up on $X.XXX On from solutions quarter up were

billing United one days year-ago. XX.X third The including have has fourth talent were to XX.X billing In same XX.X compared year-ago. days quarter, one billing worldwide, We solutions billing there XX in compared days current States. XX locations in countries the days outside the to XX.X locations the quarter XXX quarter

our second quarter country. to XX.X of adjusted million year-over-year rates of This $XX increased one the third for For decreasing in specialization, by during had XX.X movements the by XXXX, negatively currency Currency by million, be points impacted $XX growth by for XX.X, X.X revenues of Protiviti. and X.X%. talent X% million for quarter solutions effect for for revenues days talent will Protiviti. total X.X solutions billing Contract reported XX.X, X.X functional overall for XXX.X. was mix and talent rate compared year-over-year points, revenue quarter year-ago, percentage and total and This for bill percentage exchange quarter percentage points $XX solutions rate the a for the changes

let's reported were firms from a within and revenues and its Now look XX outside million, X% were take operations up basis, revenues had from versus the Protiviti of Global in were revenues quarter X%. $XXX third up $XX revenues closer of States clients United is business XX reported adjusted year-over-year States. were Currency million that of public quarter decreasing period, is balance network million public by year-ago as the the $XXX the United the Protiviti an quarter an revenues at $XX Companywide revenues Protiviti. up as million. On $XX Non-U.S. by in the results talent million third member sector global serve of U.S. were adjusted a X% for $X through independently solutions. on million, Protiviti approximately effect locations by Protiviti and countries. rates basis. which exchange owned of third sector with

sector which XXXX quarter $XX million, adjusted revenues public million X% result full-year fourth or $XX to will X% in down currency. approximately being to be expect revenues for We

quarter. quarter talent in XX.X% Turning quarter one X.X% third were In applicable revenues solutions, now the of margin: gross of gross XX% applicable or revenues was to contract-to-hire of revenues margin revenues in third contract compared year-ago. to the Conversion

with was same solutions consolidated XX.X% quarter the year-ago. When Our one quarter margin talent in talent the to of were permanent gross year-ago. talent the applicable talent gross solutions revenues XX.X% placement in revenues versus in compared revenues of consolidated third revenues margin, XX.X% solutions contract overall combined one solutions of third XX.X% quarter

for was compared ended impacts, one For Protiviti, XX.X% revenues for Adjusted just XX% XX.X% to for of Protiviti margin compared revenues Protiviti gross the was classification of margin gross quarter to XX.X% one year-ago. deferred-compensation-related Protiviti year-ago.

were Enterprise costs quarter of in permanent XX.X% SG&A in were placement in for of deferred-compensation-related third had SG&A to classification XX% year-ago. impacts, ended quarter X.X revenues SG&A Talent quarter quarter effect versus just for costs were the ratio. costs mix XX.X% higher global were compared classification deferred-compensation-related third XX.X% compared for in enterprise of SG&A. one quarter solutions revenues to XX.X% quarter to on year-ago year-ago. impacts, talent one SG&A of to XX% the ended Moving for Adjusted the same of Adjusted solutions revenues talent third XXXX. year-ago. the one the the solutions this to The SG&A versus quarter's adjusted points XX.X% one percentage adding just quarter the XX.X% compared the

third the Third segment impacts, of income income levels. more million. costs period XX.X% XX% XX.X%. $XXX to for of was operating was Protiviti quarter Operating the the Combined returned $XXX margin segment million revenues to quarter SG&A were revenues normal combined deferred-compensation-related for year-ago Protiviti expenditures classification as compared was for Adjusted quarter. in in

$XX with income divisions a $XXX a income solutions for margin segment talent of the our quarter million, million, Segment of quarter Third XX.X%. from third in with was segment was XX%. segment margin Protiviti

were Our third quarter was end receivable quarter, XX%, accounts days. year-ago. implied the outstanding, tax billion, up At XX days quarter one of third from was sales or the rate and in XX% the $X.XXX same DSO,

year-ago. quarter the Before days. the review move the September first monthly This so of the XX% saw to billing Revenues revenues the we of adjusted versus versus the prior were exited quarter we for October, currency talent quarter. compared Permanent were XX% to revenues quarter. in of revenue the let's some XXXX. up a with compares and to October X% up third XX% increase September an full full fourth for all Contract placement trends week guidance, September increase period compared solutions and the X% far to third year for in up in one for same quarter

XXX to one capitalized up All solutions, as that we the today's solutions, these our compensation overall, classification to guidance: flat up provide XX% costs: permanent into mind, SEC this XX% brief the to overall, $X.XXX to of XX% contract up We this October, to talent Protiviti, an XX% revenues, as risks you are revenues same to we to weeks of X% placement fourth some into quarter growth, expenditures Protiviti, period X% XX%; as overall, for adjusted of filings. XX%; compared underlying and assumptions $X.XX year-over-year, XX% subject $XX know, midpoint XX%; to during basis: the as are two XXX XXXX in X%; to press of are in same For capital insight XX%. Protiviti, XX%. excluding XX% release our trends The in them. periods. billion major talent basis. to so XX%; revenues the the XX% to for million quarter. Fourth to higher and and $X.XXX to on offer information Gross X.X% are XX%; cloud we saw margin per XX%. you share first down rate, But Segment that revenues, percentages: Revenue million the these an the up talent, financial income: than estimates XX%; overall, shares, to as to up $X.XXX in $X.XX. XXXX. call income provide XX%; talent guidance XX% X% billion mentioned quarter Protiviti, Midpoint Tax solutions, October. on to much too in against limit billion; and quarter have deferred a third We percent computing impacts: X%; $XX reading to We million. into estimates X%. XX% and caution to very to time were on the follows. of to XX% period adjusted million. following With SG&A

over I'll to Now, call the turn Keith. back

filled. and a stands low, talent representative had and could economic half candidates modestly remote labor the candidate has candidates a to selective uncertain to Business, to business Mike. States, of qualified open hiring and no be trying Many Demand quit to United base, those of clients for and are The X.X%, more requesting who a hire. more hire, persist. structural openings becoming hiring time, Independent remain the take at markets owners onsite openings adding Many albeit They continue recently few and remain. business is prefer job that's remains their unemployment the elevated rates conservative our In levels local same more off degree, had processes a XX-year more although at longer steps small National the tight models, that expected the candidates at of Global clients see shift hybrid you, high, more notwithstanding small not to highs. Federation sales for while pace. At hybrid of or for X.X%. remain owners that, all or are to or rate although cycle applicants, at job that increasingly their positions. hire to lengthened. talent outlook, their rate The Thank shortages XX% prioritizing continue working and with XX% reported college NFIB,

numerous strengths, office demand larger headwinds network, by year-ago, achieved a record Many to conditions. the XX% our Protiviti AI-driven our over quarter times, talent to in compliance same a this very solutions, is basis. comparables, technologies. project revenues for client current on available strong, plays robust from including of global wind-down sector combined and risk financial very growth remains overcome the internal pipeline of Sourcing in little and particularly and advanced only very quarter. still demand talent services the specialized much shift impacted pool a large clients' public a candidate and economic has successfully practices. Protiviti audit in database the brand, are needs and remains regulatory remote Protiviti's the and

environment, higher our many peaks. macroeconomic talent uncertain short-term about outlook. navigated results optimistic each successfully impacted remain time cycles, by solutions While achieving we more overall economic maybe We've a

peaks Our recovery was COVID-XX recent our fastest from the to new history. downturn the in

cost by diversified This also downturn. cycle. its to from our demonstrated also benefit Protiviti's advancements, be which our technology offerings Protiviti's AI-driven resiliency, tied grow the is solutions stems are aided ability ability with the from our nimble last less to to economic much continue. demonstrated that through which by We've We structure,

with technology, to purpose, our As connect compete grow. people, subject need work our strength to clients and success talent always, our model. in focus the provide meaningful We confidently and our steadfast expertise they our to to people driven matter brand business the of is by and on remain our our and

Finally, the Robert Employers. new be has Forbes accolades awards we to received We are our months, the been and Workplaces The were dedication a this by of World's of possible None quarter. for one for named proud Women of five including across Gold by as as would one Half have the receiving this innovation Best its and Best in of App excellence Mobile in recognition Stevie. several globe. employees recent FORTUNE recognized the commitment without

questions. you your Please happy Now, would just and to If ask there to Mike time, one as come a is back for additional be and follow-up, we'll I single questions. answer question needed.

the Mark First Baird & Marcon comes [Operator with line from Instructions] you. Company. W. question Thank Robert of

a is during can and Good may to talk about it With we One read the admin afternoon, quarter that of and have and factors Protiviti. of bit impacted the should questions. on solutions and couple business, Keith and is Mike. you ahead? I into on talent current have what one a regards talent the looking solutions, customer some specifically, that support little

past. Sure. Admin and it they've projects number see open impacted Also, most customer they processing. related has relates by the enrollment wind to claims didn't sector, as quite public in to been service unemployment of the a down seen larger that

relative been So impacted disproportionately practice they to groups. other our have

was an much open as that? Got underlying And it. for not regards with enrollment, reason to there

also days. it's and early know, to Hard

fourth get to third. the than of tend quarter the in in You that more

open we fact, just In period. internally, opened enrollment our

overread And their wouldn't some typically. of projects are that, so those but larger I

fourth is jury out the So for quarter. the

much I regards – what And public broadly of guidance challenging just we about also to but a go-forward what – of or wondering then ahead, are could you being the basis? much thinking Okay. off can year with fell how sector? public sector the tied how little the speaking. to M&A how up, to next I'm environment, a just that about gave I'm Obviously, about that wondering the has either that bit Protiviti – headwind as You then claims. was you IPOs. end for of quarter, going the for I'm the if that exposure assuming was talk Protiviti, the the up cost fourth with think work capital on thinking And portion a

And generally so specifically. let's talk and

the for those the large rates, XX%. exist two about First then it the public at of half in of growth year, double-digit the is Protiviti's XX next factors that quarter. of look wind impact forward and all. growth year in or cuts mid-single year, down their you And to sector will points second And in But the rate all, the quarter, XX% how the as from fourth runoff reported stay the impact to project percentage digits. half starting half the wouldn't first into

so And that full-year single-digit essentially, a number. drag, the it's for XXXX, very small

public Yes. built impactful how let those coming some is impact the played part comments. worst and two be specifically impact me sector – of a essentially it the that – it this public processing On make We've them, the the client And so most sector, with last of – relationships. work, with claims on time, should quarter runoff be on rates. wind-downs has the pleased of unemployment the will behind fourth double-digit general their other all replaced We're has just out. new growth

elevated Protiviti management, win talent well housing. Protiviti projects, side. and as needs for on Some a with high financial of as the on the deal rate helping and these clients very new is their has work solutions new project some controls. Talent the shortages side, talent solution education

size the somewhat build. that is continues pipeline project to expected, than Although smaller

about we've – and million also So the us two-year sector you we a ago. has since with new we producing we didn't more people in very have revenue in of new largely solutions say almost since from joint one been have. can this work step are business about model – in take when it's $XXX jointly as back engagements industry got years And that for one our that approaching our space. frankly, we'd million from performed and we're of entire this public exist a this now by unique that would that from in say, together. And relationships, win And revenue three now most view, group talent given Protiviti, confidence we organization $XXX

So new sector industry have our of in a claims managed public now the group. of two that we've assessment very We is runoff nicely. unemployment years

this confirmed further have strategy. We to gather go-to-market

backlog about rates good Protiviti public a quite about had. part growth M&A, ever Adjusted talk a it's they've two remain their high. of, IPO, rates, small of core feel not their the when does. Then what factors largest I for we you just So spoke that growth has part, Protiviti sector. these large

So Protiviti. great we feel about

That's done? large on thing that one button terrific. completely And services is up wound the just project then to that financial down,

completely We relatively that a and It's for things large, do project thing hope, of It's And amount But we not that we are. at the done. we're by it's revenue very, client. It's from client. close, only that where on client. that but a for not down did very, we large small project. to to build do frankly, other we very

Thank you. Great.

comes of line Andrew Your the question JPMorgan. from Steinerman next with

wanted for I And of And put solutions to for obviously, seems contract Keith, talking frame X%, contract I fourth you and ask you to the about revenues helped up up when guide, fourth guide the the talked for talent October in up like talent room perm built at wondering, when I to Hi. that and know company do look was did it you've some they're early and quarter dynamic solutions that you was I I X% just other for trends talent quarter about deceleration labels Or you sake trends. both down But was perm. X%. the together, October, be conservatism? just from revenue what the the X%. just solutions, guide? in those the about

correct be that a typically significantly very big quarter what less we start, full that environment to We've discount it's traditionally conservative, that prudent discounted becoming the it our forecast. more Clearly, our much the each quarter there than we're delta. a we uncertain. but – their economic than is would guide given conservative. field And So being pretty more be forecast that clearly and wouldn't simply more uncertainty, more we in is thought you're get

definitely about prepared changed. just if comments. supply for And ask labor I question more your It I could heard your seems market supply. then labor addressable the meaningfully hasn't one like

measured, tight. source at the less you like easily? a Do supply might demand might feel of of to you be still little persistently more is outlook is shortages and talent become kind that able but more So looking kind of where an talent kind persistent like you be

quite assessment the I that's another think it's not acquisition reluctance changing that, a tight of some as and is softening has to tight. said it would side relative candidates fair which I seeing candidate yet that the is conversation, we're also as is say jobs, been. in talent Having from indication bit. that a still

That's fair. Thank you.

Securities. Your Truist from of the line comes next Sommer with question Tobey

Hey, on My Jasper This good for just afternoon. question Protiviti. was Tobey. is Bibb on first

to full last contract On hiring accelerate and resources. contract bit hiring mix you mentioned the just where getting stands today? heavy Could too time is you a us the call, the on mix on update versus working those as efforts

They culture-related reinforces them to say that that which win very still and simply awards, their adding aggressively with all to I'd in well kind headcount compete helps recruiting. they're continue of the marketplace.

the mix to the more of work. the to mix, nature is As tied

engagement, be So work Protiviti certain types full-time of audit good XX% engagements of the other XX% Whereas projects, that public typical sector XX%, internal contractors, XX%, XX% of that the only mix being and total. might example. more from was employees. a

reason one just-in-time the loves So access talent they access for solution to much solutions. having with work. of the And being driven of together its it's is every offerings resources of by Protiviti very the by to nature have

third say as midpoint And bill it Or sounds of like kind on similarly pressure from guidance, a the taking you gross the contract looking case margins Are down revenue of incremental pay Thanks. on kind was you you're any conservative the it approach imply the [temp] gross then at seeing guidance? your would margin spreads? quarter. would

in We're and impacts they'll than project expecting some spreads. compression claims We've are that The third have They're stay our still medical certainly bit. Spreads strong. good. more the fringes up quarter, not we any a on estimates. strong. We anticipated creeped full-year had

rate fringe it So are to Conversions higher in nicely. than it's anything hanging principally also there is due else.

medical to probably certainly claims, about repeat more is not i.e., which into unusual correct which XXXX. expected things fringes, themselves, it's are related that these So and large to

Appreciate Thanks the detail there. questions. taking the for

question next Credit with Kevin Your comes the from Suisse. McVeigh line of

kind like Hey, [ask bit guidance revenue tax just that the of similar just tax? all point are Thanks it want looks of looks you] Great. like what is similar. much. The EPS for little to the I clarification. one a but Is the about It is rate to because so margins higher. and QX, it $X.XX. pretty looks range

mostly delta the is there So tax?

than different. a Well, The talent you've that, six pennies the margins normalized of a just currency is short as that about it we tax cost. fourth gross talked year-on-year because on we little about. exchange – and still days. impacts they quarter less lighter, that. Protiviti talked they've year-ago margins are billing the than got it's Other quarter The still were are make always of And a margin because that their

And is so you always get leverage of bit a quarter because short the a fourth the negative quarter because little holidays. of

that you then it. more Got solution prepared drove was in What I it mentioned think Protiviti? what kind of of opposed does that work the shift talent just in tuned was shift? to talent Protiviti scope that on kind remarks as solutions. some of Was the of And the saw to you

a – whereas given of related the government need local a claims. where Yes. processing It's year-ago, unemployment to

is they're that the more staff, but and at wheelhouse of Again the understaffed, right which be for talent they additional table. relationship, it's in talent solutions. – Now need wouldn't solutions

we Enterprise-wide, and that a claims what be into benefits unemployment we're we're flat X% year-ago, started with more as broad that So therefore, very adjusted pleased going leveraged nicely something down for that to we've solutions. transition much essentially currency. processing talent

processing-centric unemployment very feel claims broader. to much So transformation we of this about being good being whole

you much. Understood. Thank very

line comes George Goldman Tong question the next with from Sachs. of Your

afternoon. Hi, thanks. Good

third your upside what solutions in Protiviti quarter, downside you to factors you surprised As the to relative look most and across the expectations? and internal talent

in for the for – I'd in headlines expected, say, – that matter. to as the both record that the Germany impacted would upside, as would have and not Europe UK we was

positive that say surprise. a I'd so was And

in our the their a little more clients hiring On conservative small business expected. downside, we than got

psychology, Given as that Remember companies news costs their to to rates, the nimble impacts all barrage negative of as inflation, confidence, larger sentiment. SMB more our interest than clients are. to are as that economic forecast, managing

that a than their more hiring quickly And nimbleness, what more as pace expected. have, so I more little given we I'd than adjusted bigger adjusted they they companies soon as and say, say they're that that, I just on also remind more like the they're recently nimble where that upside. would on more And most demonstrated during also COVID nimble we everyone the downside, our fastest add further recovery as and start And years. forget last saw our in experienced clients in XX they labor don't growth we we've tight cycle was part been as the and And history. a start in I'd our peak-to-peak about to so the quickly, a which say they every quickly things we've better, staff of just that market. achieved to do soon get

But good balanced So our nimble. and it's nimble, they client in more a are but We base, where let's more we feel keep SMB mind. about love we're positioned. that

discuss your you Can intentions hiring for and what And your are helpful. That's it. internal hiring? have how internal evolved? sales outlook Got factors influencing for recruiters

conditions, downturn our about but much our even We've manage three results say downside. This the we're last too not. of forecast, to make going ahead upside way headcount to negative consistent heads at market timing and to on in in past, more and the of would adjust appropriately uncertainty the our where basis, look to kind our make Also, with cost have There's largely the environment, current we against in call, same major we the hire make we the conditions, and not years that attempt reductions look and cost we're structure at very we'll we we'll we of which but we revenues. will growing, near-term where a to five forever. is I'd any we look than more targeted headcount structure nimble We'll continue been extent the with self-fulfilling. our at our the balance on managed history. both

that during our I we look were meaning our for bought leverage headcount – well. you the XXXX, not SG&A, did were X%. much If year, margins managed in at think have negative We over they

managing nimble business. argue would businesses, I are as we've very ourselves nimble very clients our targeted. our costs manage So in their headcount just and also our our we made Very and as

the standard their based We the We know everybody that's have adjusted tenure. data down how performs individual. to also relative to on

objectively very we headcount. manage our So

Thank Great. you.

of question next Heather with BofA Global Research. comes the from Our Balsky line

Thanks. Hi. Thanks thinking well, I curious you're been hearing cost your thoughts in question. costs. investing about your your year was businesses what right – for curious you're control next taking you I'm ability light spend year? of around your the I into businesses. talked this and how you've customers manage to into know And especially now, from as about investment into

And so our headcount, talked I just about is which largest cost.

We will be nimble.

based adjust will We on what's happening topline. the in

ahead just about. talked way I of will get as not We it,

innovation. I there. couple of in got Our investment other comments is a major

had candidate. By definition, do them? new the very perform? our respect them? given component to a a is just Did learnings to of we we our Did our proprietary vet where AI, first place and to they we So leverages quarter added recruiters us. additional full How we far? this How with it

we that the for identify It testimonials we've more Adoption capacity in model, to candidates. improved come branches are our that workforce. spreadsheets AI creates this. of candidate updated identification. the transformed candidate from part our totally this It's had discovery, increasing for because pilot have rapidly Essentially, using exclusively rates on many So have technology metrics almost we've meaningfully. most rely across ever successful we had many

your meaningful way. more invest specifically AI to and a innovation to So continue we paying will in in very question, because off it's

and to client interact us. continue enhance as with We digital candidates' experiences will they

matching also as prospects well clients, candidate-driven positively AI to on to AI, our staff continue react their internal most our outreach. which likely better will make said We before, focused And I've identify which we're client-facing helping better. are to as

we headcount recently about, especially talked from the we forever. invest continue in payback getting managed as as this we'll and this So nimble same real we're quarter, way more headcount it's quarter. because We're ever. to Innovation, than

much. you Thank very

Patnaik Manav of with line the go from comes Barclays. ahead. question next Your Please

how for wondering – there. if SMB are you my This addition could was just your and Kennedy some is be you would and downturn? visibility conservatism nimbleness selectivity indicators for question. leading would in you? of within you those hiring elaborate Hi, what on are to taking the other seeing confirm seeing say, that Thank May spoke I indicators the in you of and you and potential on leading into what see I the Manav. Ronan and a the indicators

of our contract as visibility, visibility, clients business staff their more to structure. have we use lot Well, of nature the to flexibility in is and a with part have cost don't

think with with And I any have nimble still the to great But we at visibility where our just we interactions have ahead trends. we because never anecdotal at and judgmental cost had so visibility. and of said, We a can headed. be it. extent, look of we've it, is subjective our as and don't it's We weekly pace get clients, structure, with We look don't can be assessment to our way business so keep we fine. we'll

I was in lengthening you think slow? was set you. the there the customer line? administrative to and with Thank caused then driver the that call, of the I but regards mentioned a in on that skill what to sales And cycle, may anything Okay. support ask, business it sequential particular decline

as And Well, larger which open. had many admin, unemployment disproportionately been years But it's enrollment. still of claims. by public sector, wind-down enrollment in is open hasn't related open earlier, we also customer impacted to much projects season past, service, it many as very said as

book yet. that completely So been hasn't written

Okay. Thank you.

Capital the Markets. Your line comes Silber with Jeff next question of BMO from

Thanks so much.

line comps more to Just the excuse wanted If on? from a versus growth you're year-over-year contract we slowed segment question. going XQ basis Thanks. that of the But year. tough business, to what on I or were anything know was segment? one me, I else solutions focus there XQ. within that just know technology just on in slip last specific wondering seeing I'm XQ

And in the our the across change is as and because that is all Well, that's growth pointed as just the aren't client entirely solutions groups, the comps. in change base you talent And the for explained accounting. trends by it true SMB out, different. finance the is as rate year-ago practice technology and

client two the So different. And largely also is any between SMB. the differential the isn't base

seeing ending specific there going what's earlier? market? the just on projects slowdown potentially And – you end Is are are to any any in

SMB between on been that want, got and distinction remote the during be clients, I'd what much quarter. want what it's in not technology i.e., the much the rate entirely me, noted but that that's clients by say It's many of worse, a explained times growth how comps. discussion point, to to gap to it's hard acute is in how in change But change impact point. bigger most the the – and still certainly candidates quantify better the seems only site had,

for Thanks so enough. much color, the Keith. Fair Okay.

question & comes Your Robert W. next Baird Company. line from the with Mark Marcon of

a rate inflation? are taking of assumptions questions. the for a go-forward bill about on and how couple Thanks What And follow-up thinking bill rate QX? inflation are wage for rate basis you

Well, up. you broke

They've essentially on topline it to it inflation bit would while a pass gross the from the higher I through rates. you'll And what bill have less, might additional of currently impact one margin the subsides assumptions. we're haven't rates. much been as that seeing. wage pay think I we and bill say hurt rate that not from changed I'll said pass-through materially higher say well shouldn't this gotten But they're somewhat, margin. a much of And you extent

Are you seeing wage more inflation becoming signs subdued? any of

a clients in is also having factor my more. They're pay is having Well, less we're to the point was. it more certainly hiring what But pace a margin of pay than impact. more, pushing seeing of to it's it's not why back signs on and their

been so then many And cycles. it. through you've Got

by this prior aren't history, during downturns? that behave XXXX. as a You who economists think you relative was excited to If survey cycle? what then published there with for think for differently investors you of occurs, Wall familiar is and how are you half Street Journal are RHI do seeing The do up recession your most you week And a – about first in who probably up next expecting of the this ended the going basically how it downturn to shallow

two cost of more had, cycle, peak-to-peak. kind ever peak-to-peak. range. was a got a the of to Point grow that third economic we ever not Point in lasted about did now Protiviti. report I'd only interestingly, ago. of has me. best XXXX X% and our is year wheelhouse. we've talent was longer. for XXXX. right, tied X% current actually they've they in now is has And financial Protiviti's a revenue think COVID of in XX by resiliency half revenue differently, suite size have It dot-com less significant just It than and again is than that I CAGR-ed Its and we offerings. more Protiviti the the we less the XX% The business. peak-to-peak we've But two cycle, years peak-to-peak. solution much have to our grew we've the is Happy around of the CAGR-ed not – structure been years has but of we crisis In nature is, while, It's most that, had. the grown Said directed its three, pipeline versus closer point cycle, diversified cycle. first the is make you're decline, to every solutions we nimble a we Protiviti proved point the So it one earnings. half consolidated talent it's solutions,

as we that's difference large a past and that have cycles talent between as something this half there's resilient. solutions cycle quite So huge now and

Thank great. you. That's

Okay.

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