Robert Half International (RHI) 30 Jan 242023 Q4 Earnings call transcript

Hello, and welcome to the Robert Half Fourth Quarter 2023 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. Mr. begin. may you Waddell,

appreciate today. We your everyone. time Hello,

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

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

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

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

both We brand, and improving and quarter business continues the climate results are hiring on model people, built continued enter above line current for point. staffing the our to approaching encouraged XXXX weekly industry-leading ability as into peaks, consensus delivered includes in navigate modestly in services. be positive about unique revenue below the and resilient fourth new candidate a confident technology trends third to business and Global starts. growth the inflection our consulting we're top way. and project quarter persist, that and and began that are fourth quarter uncertainty optimistic as talent to confidence their the and although prospects We professional impact our continues economic shortages activity well our leading both bottom labor that Protiviti ongoing Nevertheless, with client demand

$X.XXX XX% quarter quarter in $X.XX fourth to quarter record in and a For operations income In down $XX one the last during company-wide $X.XX the basis. to quarter distributed the fourth flow compared share cash a for both a $X.XX as-adjusted our of was of of Cash outlay per dividend share the million. billion, from from $XXX fourth reported we was year's million. cash year on total revenues were Net ago. December, quarter XXXX, fourth per shareholders

annually Our dividend XXXX in than its has inception share per prior grown dividend XX.X% the year. since XX.X% December XXXX, the higher was

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

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

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

everyone. Thank Hello, you, Keith.

fourth U.S. from XX% were $XXX $X.XXX were just global noted, were Solutions XX% basis, were down fourth the quarter. revenues revenues Non-U.S. Keith year's prior revenues in Talent Talent as-adjusted XX% Solutions billion quarter. fourth $XXX down million, year-over-year. As revenues year-over-year. Talent the On million, quarter an Solutions down

We have locations States. solutions United XX in worldwide, outside XXX the locations talent including of XX countries

the quarter quarter, XX.X billing fourth days year same in one days compared ago. In there billing XX.X the were to

functional revenues for X.X% increased Protiviti. was for total million, mix rates $X Talent the year-over-year quarter fourth for of quarter adjusted country. This compared the remaining and exchange Currency billing Solutions quarter had ago, during for in million quarters rate XXXX $X effect fluctuations currency XX.X, billing the third for by by XXX XXXX. bill Contract billing Talent The X days of XX.X, rate changes has $XX in X year days and to during XX.X fourth the first to Solutions days Billing for a XXXX be specialization, the reported total of XX.X quarter compared of the increasing year. and revenues X.X%. the will first of million for XX.X of days quarter the

$XXX million, of On Global an Protiviti. Now quarter United States. outside the quarter that were United from at States the and as-adjusted look is revenues global million from the closer $XXX of down $XX let's X%. for revenues clients and is member million results basis, fourth down while Protiviti period. revenues a a XX fourth ago take were X% the locations countries. through in revenues were owned down Protiviti of were Protiviti its non-U.S. independently X% year firms in XX U.S. Protiviti versus serve network the

gross for hire the the Talent quarter gross X.X% Solutions, now margin. compared fourth of were XX.X% ago. revenues revenues revenues in X.X% quarter the year ago. Turning was revenues quarter XX.X% X to X In margin in versus contract Contract to Fourth applicable of year in to of quarter Conversion

permanent fourth year. the in gross XX% year Talent Solutions Solutions with revenues quarter ago. Talent margin, contract Solutions overall quarter revenues revenues the Our for fourth were margin compared in XX.X% combined same quarter X XX.X% consolidated Talent last gross XX.X% of to was applicable in of placement the versus When

margin was gross year Protiviti XX.X% of to ago. Protiviti, For compared XX.X% X revenues Protiviti revenues of

margin impacts, X.X% the ended was XX.X% just year. full-time down gross classification for to from last the quarter for with XX% ended compared year. XXXX employees We compensation-related Protiviti contractors, Adjusted and for prior XX,XXX deferred Protiviti

deferred selling, quarter compensation XX.X% quarter SG&A just Talent revenues down last lower had the were year. quarter Talent quarter XXXX We for revenues points. Protiviti year were quarter ended revenues XX.X% classification revenues ended percentage deferred Fourth quarter in X.X revenues SG&A costs. prior to costs X,XXX of impacts, year the X year. were XX.X% of compared impacts, Talent ago the from Solutions for full-time the quarter fourth in Talent in Moving and were SG&A compensation-related adjusted to Solutions XX.X% XXXX. our XX.X% costs XX.X% of employees related administrative of by The on of ratios the ended fourth versus with global the classification one compared XX.X% this permanent year. in in internal to Solutions last same divisions Protiviti effect the SG&A quarter's costs to of last costs decreasing the the just general placement were Enterprise XX.X% Enterprise Adjusted year. costs ago. of mix to in quarter for compared Adjusted Solutions XX.X% versus XX.X% SG&A compared XX.X% SG&A fourth for

Solutions million, from for Operating income divisions $XX our of Adjusted in impacts, was the million a million. income for related combined income of quarter fourth fourth deferred $XXX margin segment segment XX.X%. a million with in for the X.X%. Talent segment Protiviti quarter $XX segment Segment Fourth classification was quarter. compensation margin segment quarter margin was the was income X.X%. Combined $XX was with fourth

or the days. tax $XXX sales quarter X as quarter, was accounts fourth year end At same was million DSO, were rate XX.X Our the the implied days of outstanding, fourth receivable XX%, ago. and

all Revenues to the on the review year we for were for same reviewed quarter. billing of fourth fourth first revenues quarter saw XX% let's the guidance, to the versus far with year. move Talent the we full compared quarter so the Contract Before days. monthly Solutions an the and three December decrease in January, in compared some and currency exited January revenue adjusted weeks prior down period quarter of first last for XX% to XX% down trends

XX% the versus a began for a revenues during sequential December to down placement a December narrow decline XX% This XXXX. quarter. that last full to continued On rates of quarter. decrease in compares basis, Permanent pattern the were quarter, week-on-week the

too to of you X so information We the the some and into But quarter provide periods. same we XX% caution against are these January. reading We first permanent in much of brief placement trends this insight the very into period saw For as revenues fourth January, weeks the into XXXX. you have were compared during time down know, them.

down overall, billion; revenues, to With as on million down to period that underlying XX% with offer Talent following X% deferred $XXX an XX% Segment major as-adjusted we XX%. guidance: margin to X% percentage of Talent X% compensation a XX%; to as to as-adjusted XXXX XXXX are financial estimates Protiviti, The Solutions, $XXX and on impacts, shares, excluding for to XX%; XX%; per to the to of to XX%. to midpoint midpoint talent, assumptions expenditures revenue to $XXX income lower $X.XX XX%; XX% year-over-year X%. growth million million $X.XX for to classification million the $XX to same to XX%; in XX%; to in Solutions, X% X%; basis. overall, capital million. million XX% contract Gross $X.XX XX% billion than quarter XX% XX% follows: down these Talent to overall, first Protiviti, quarter. $X.XX mind, costs, to $X.XX; XX% $XX basis. Income Tax in billion rate, capitalized percentage X%; the X%; Solutions, first $XX cloud Protiviti, are computing XX% revenues overall, of an Protiviti, in SG&A XX% XX%. share, the revenues, to

with on risks provide and filings. on become are estimated margin sequential seasonal in impact We the the release of all first this to SEC to call income X-point produces to promotions estimates we XX our X. experienced January mentioned quarter compensation a is This which press X- segment X years. annual segment most includes which limit effective increases, the last midpoint quarter, in of and guidance points, consistent Protiviti's in X decline of percentage in staff fully of all decline subject the guidance today's our

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

Mike. you, Thank

resignation is is in job impacted XX days continues has COVID ago. to following remains employee said, newly factors positive attrition the the rate the force. globe. interest to than a supply down saw favorable the predictions levels we a client given in the of from churn inflation, discussions across recession a to more to remains and levels The contribute resulting of tight, tone pending hiring candidate the the staffing significantly improved labor These some above policy, cycle. historical approved and more big great lower While be combination heading budget XXXX backdrop of opening has demand annual year last there fewer velocity way into and due That and of less stay

more ahead, and typically confidence our in when growth prospects from focus velocity churn Solutions candidate skilled with the We're year Protiviti. also to starting of on optimistic the talent by about and the for reacceleration related hiring continued client and higher that the Talent margin our labor encouraged We're the and both opportunities follows improved. normalized services in

and to significant cycle many and declines half are were of assignment compared more the economic X cumulative rates benefit financial full-time during investment the engagement higher margins, bill our links, has higher in to declines trough professionals the peak Our skilled about services carry they advantages: what to less already crisis as sequential This openness revenue and talent, gross investments quarters last increased provided current downturns. of in sensitivity. client remote longer dot-com

continue. shift to expect positive We this mix

specialized our We including and our we digital to for include use tools candidates our discover, providing a for professional invest AI. effectively AI is data tools assets continue the Also, areas continue to the focus recruiters. clients to Major in to proprietary for use our our and innovation, leverage seamlessly that world-class technology our to additional select experience target clients, recruiters leads recruiters talent enhance and AI to connected revenue. assess and

pleased by again risk solutions Protiviti's for the areas again led practice. continues with modestly compliance grow. impacted measures. quarter Other pipeline client the regulatory Protiviti's were We're budget results to and by

size of practices. at and is global industry. very to expands as access the and the Although Protiviti solutions contract continues effectively scalable offerings contracts share it takes begin compete but and Protiviti nimble annual talent deal it skill priority segment our including in levels average its income, to to of its consulting XX% economic which growing market conditions expected talent through all marketplace, solutions now increase focused the depth differentiated growing small continue and to represents benefiting resources, close to the from new breadth impact engagements. time its and and our

to achieve tailwinds in structural consulting demographics with costs continue weathered economic to workforce they the that come. compete expected years and corporate expertise variable for and We our connect many exciting clients to clients' the aging emerging desire resources each began confidently work We've to to by are provide flexible and energized to higher for time many and peaks, cycles past, are grow. need the people and year time-tested new talent and purpose: meaningful

Street recognition thank Great Newsweek, to to and globe named the quarter like on XXXX for by America's Best Best Managed by Fourth Wall people our Companies of being Parents also Most new the made included in possible a Workplaces We'd by number of a Responsible whose Work, commitment to across Company Places one of success accolades The XXXX. Journal.

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

Baird. comes Mark Marcon question line first Your from Instructions] of with [Operator the

on with focus easier trends, a not necessarily to to Protiviti. the midpoint and wanted your comp. obviously against against of you're guidance, It regards looks inflection I assuming -- revenue like the at positive basically an

you So there? weekly practice I'm areas the or wondering seeing visibility? made the And strongest of about improving level Are Protiviti? or what geographies that within how the comments is areas are consistent trends growth

-- are what assumes the that a QX guidance. It which trend you of Well, it above-trend the look growth, happens first let's -- at facts Protiviti, for is look assumes if years last XX sequentially at good thing. above our

to level As Solutions. and their already strong. more their has visibility, forecast of that Protiviti They backlog case is percent is the Talent scheduled is know certainly of what resource than in for system,

as forecast. was I before, similar we as we to good And a QX move trend, very into which into QX, QX, as traditional And as beat basis, so Protiviti. QX slightly look is projected, on for above said sequential same-day better, at we slightly QX,

where We about Protiviti feel is. good

First the wide years happened on quarter. begins audits Protiviti. revenue Utilization happened that modestly internal their is always which in usually a something firm further, work side, crowds and at for getting done, their all once because They, contract hand, quarter declines and client cycle globally. out That's that's on audit. one seasonally on January audit. they've or tougher quarter their for raises And sequentially got external on their clients first the the internal focus And promotions years. X, on

of those so over And recover the costs began to the they higher year. course

made far. gross from progress of first to We again very expect look would expect the we at at margin look look XXXX, across XXXX. to quarter they see progress to quarter. have the -- they fourth that don't You kind as Look

or are better, would So and we little feel to the same same thing conditions same business better. Talent we good about Protiviti. little a Solutions, If anything, in a say

X offset they or regards than base? you within talk seeing And There perhaps excess potentially more and the little a you're been can about have to a have usually that terms number cost discounting in pricing? to reports of Are Big and terms contractors have. about then seeing competition Protiviti the in having you terms with some bit of of some that? And what professionals little of the with in reduction regards you to what degree a capacity

locations levels. new, based quarters, the for and price that's competition a in we on not as X quarter, last has So talked that's their Big own utilization that's have tough of but aggressive gotten into that's well something And certain the been given. something couple built guidance we've

Protiviti's versus reduction. cost lever the to with own in environment significant standpoint environments. control cost talked remarks as measures. year-on-year. we certainly made As prepared from helps have a contractors a variable fact, it's deal they all virtually in And this reduction a nice cost is they more And about normal They that the have

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

to does to led improved client think that XX It's do And last apply days? and Protiviti? of you Andrew. the in Talent both has discussions What the tone Solutions

there's mentioned, no more Well, and are rate rate there's or in of combination of inflation, recession. economists fact, fears a for we it's decreases, less really the fewer hopes calling increases, as

Protiviti all cumulative Solutions There's tone. that's side. impact So concern our into were both slightly than less it a it's true Talent a we're those. by year and recession of clients say positive ago. the more that going sets on And a I'd there a of

quarters better for I better on The on what me side. been same somewhat. mean it saying same wrong. where it's the better several that's isn't side, But the huge, declining we've than to environment don't is get Solutions been Protiviti to Talent

of line of Your Balsky next with the question Bank America. Heather comes from

on your the might what what if XXXX? And variable how goes? increase? are for us, environment help of I the in CapEx be just driving on question could you Kind of can a depending spend. investments the kind had just that guess, much be And I of how nature

Okay.

So first have our as for row. to commitment technology of we a AI, all, in continue innovation, years several we

of and in attributed space. almost that, change downsizing The Park Services little innovation, significantly are entirely we relates very Pleasanton/San Corporate technology Ramon, piece in to in is our to increase there's So the AI. that Menlo

requires rent we're about turn, actually savings magnitude, a million $X Ramon, San that and is investment, moving of improvements, million in of $XX year. fixtures. furniture And which in orders that in tenant But results

see pays in Ramon, So And can years. quickly. of is the itself for that San you XX terms lease

of for savings million. for million $X so And spend years, XX $XX you

So we're going about to reduce X/X. our footprint by

rate just that the future $XX And that. to quick as your run CapEx, of think out a about to follow-up take is If we years? million in way

Sure.

corporate it this And savings. if look But as that's revenue. would but because a XXXX. move of see, again driving you so And cost $XX about spent be downsize, period, is you X.X% CapEx over the for in essentially it's where services our well at we spending million money can XX-year -- averages

Trevor question the comes Blair. Your with next line William Romeo from of

kind one, of your First I just a inflection about point. commentary to positive wanted follow on up approaching

I may see it X could improvement starting weekly that's two, think, does better? grow of off. you becoming define have a this just this. getting positive leveled questions again? declines you comps One, I demand like clearly, you And then to guess, more underlying whether or exactly on guess mean revenue be do by inflection, what I year-over-year seem the factor easier slightly

Okay.

not And getting year-on-year so comps easier. talking we're about

think As in sequential prior we talked And much quarters, we more this to it's about in trends. weekly within that, at trends. look important environment, sequential

last our beginning X% weekly about negative end. the beginning revenue the talked from from to about quarter we were quarter sequential So end trends of the to

before through same the of December the middle holidays number that you X%. is about impacted, If that compare statistic

X%. XX only to mid-December, weeks to prior by so beginning And endpoint changed the

a trends than impacts, look results do doesn't the do which to year-on-year, is only XX mean down which include we it's XX beginning by XX year-on-year. saying, holiday to X% in weekly you third better for quarter, the positive. inflection And negative getting in at very the got to nothing got nothing ending being point. weekly which going to with X%. harder is sequential that about the quarter. with comps what was better It's mid-December, from or we easier to than the if getting weeks were That's It's so And weeks, quarter that's to end, weeks close second

the we've couple So is of very have will, of sequential narrowing where a positive you And we're improved. even, going about talked we've for the to than rather what of the talking trends. declines, couple trends if got quarters, to about close weekly which weekly quarters having last point

maybe just that, wondering then in And give of count. maybe balance head you us the on versus quarter, contractors how utilization utilization and one count Protiviti. the if balance within was just kind on you're thinking about I head versus trends full-time of of an could update

of led utilization that in utilization thing. first it expected Well, our and quarter. audit by in about is a about. the better, about the decline as Generally, than seasonal a always again, expected, But performed we In dynamics That's there's the first is seasonal always, be for impact, what slightly quarter. expect. and what see internal risk modest because we to was Protiviti we I earlier, guidance, quarter we we've talked the traditionally what talked compliance, better fourth as

you've But impacts sequential the expect. quarter projecting above have past, at by X to just would several to on you still focus Protiviti's line on seasonally, basis. we want results, that first we Protiviti trend is sequential in current sequentially think actually first quarter quarters quarter that. So the relative that results, top years. about is about first a would you had what last been is if forecasted are impacted than year-on-year about because it, expect we what argue softer Year-on-year, however sequentially,

question with Your Stephanie the next of from Jefferies. line Moore comes

I just follow up. wanted to

kind a clearly you've what think I you're of week-over-week on seeing basis. explained

would need started maybe if what making start inflection the my maybe in you what question a ramping see those -- see or adjust done or recruiters so, haven't you to of trend So to would is, adjustments? improvement for standpoint to have to a market? potential from need maybe you you Or to sequential preparing or

head because commensurate counts as Well, conditions revenue we declines, business have do powder dry reduced we recruiter with have our capacity improve.

not the would likely headcount. continued add be we to begin it we see, begin to weekly So we to improvement headcount, look immediately that more add sequential the to would more but would

have capacity by we is So some which speak design. we as

been We better. haven't get been trough as looking things to powder we've looking dry have to optimize margins,

We said rely to or of can then add quarter probably quickly everything to that get the on have offices out for there of pent-up branch so to demand I've count. is on I begin And that, head in our a today. far X, assure things we how to for you better, us depending would understatement can That's plenty we headcount. add

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

XXX midpoint, Can from to basis the step step elaborate what's in At in point down you're XQ XQ. driving on EBIT guiding a margins you down to about the margins?

think reverse talking and got all I typical Again, that I during then chargeability step prior out basis audit, seasonal the down, about. something Well, did lag sequential the line get and those is of we over external And year. line, raises impact virtually recovered year -- you've internal revenue at the cost for crowd just you're typical that that that's on And over of of impact down the XXXX promotions Protiviti. the audit course utilization at the all step in a of impact years. and the seasonal course we talked that the sequential as very that and less

Protiviti. with sticking And

how are maybe in that contracts. and close elongated? sales those developments have much average takes terms may elaborate You deal long Can mentioned deal economic time to of have you impact providing changed metrics some it on the and cycles the and conditions some continuing how size sizes to of

gotten granular. haven't we that Well,

it The the focus and they they when have are they're As seeing a extent that's pull takes on grow. X news the X get to continues they're And or they demand, is to has more cost, project longer -- take been the more longer then the tentative conservative, to they But Protiviti the good once for aggregate to decide, clients to minimum. pipeline get at decide started. environment contract trigger. the then last an and

with. convert those But overall contracts convert revenues continues we're the grow, it pipeline very because and to their to takes something new. longer not dealing those Protiviti, to actual project are with pretty for which It's the longer not consulting to then impacted. and phenomenon. they've However, still much starts, And just It's at X pleased to X been optimistic a last, we're very it's quarters. least industry-wide or it's

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

the sequentially, Just this It I has I I margins. if a the what the there? But help you us think we you for the of year. back rest something on year, could there mean, every bit bigger than with understand guess, just this little thought see, all year? cadence and a is perhaps catch-up is lower else I feels

Well, sequential decline about. we talked is line, the in as

talked how look from QX the you range points. I X. that as at I've level, get the the if or to when down greater last apply past. has of And to XX think about Protiviti of sequential income the issue fact, impact X years it's than far to in segment And we to at X But is before. the you're than decline percentage operating the in sequentially, about, been is no you talked that income a sequential have you starting that it lower as years, about seasonality QX

the points. was sequential at percentage that that bit range, last end little of X.X a decline it's maybe higher year, while same So

to improvement an anything, year it's So a relative ago. if

not no, nothing something So there There's is else. else.

and there? anything between just particular just to -- the you staffing then if kind of rate in cross-sell and terms there's Protiviti And and can of the in seeing talk success out again call about the you're

having Talent team. Solutions under from roof We Protiviti and clients one sales available and by continue to our compete resources to effectively one with delivery

together. on to optimism, of went are, as we're are Protiviti pretty and Solutions that the fact, we've Some a couple significant Talent that of above guidance of trend reason in why had wins recently wins where market combined the QX the some

that. by So we're encouraged

about If where larger the that heavy, at employees I public due as because those for resources, it XX% even of for of than Protiviti -- But resources more the XXXX that revenues, you nature of from full-time post revenues contractor hourly of for of of were, peaked come average than comes resources their XX% rate contractor contractors less were We the showing When from is it That would look from Protiviti. XX% be contractors with talent XX% Talent it's think sourced about some has Protiviti's We to COVID. but about think works. that plus staff their Solutions. at from sector that's hours just Protiviti's roof competitive they wonderful. are revenues mean, solutions. engagements, that Nobody model advantage. over else grow under business X-level professional a time. one will resources. And a level together Big consulting revenues, with

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

headcount the things the in just Or the the is you're adjustments is starting the function employee function the step count, awards, some around Congratulations AI, that especially Well like that? management. just to the business? in Or Protiviti revenue? see head deleveraging of The in that that deserved. on a purely of technological efficiencies the is Gen

an That single-digit of of were advance with they percentage months Well, basis, taking Not anticipated Protiviti's recruiting that. impacts. points. a couple annual on said, and were revenues it down And higher when in revenue XX XXXX revenues, started they a only lot. had

those employees protected coming and lives frankly, it's contractors. cost revenues do Big they of more other that, have came matching variable they large, any variable by board X full-time flattening given firm, they and it's of either. had lever news have by not they're this Protiviti technology-driven in adjustment/reductions large, impact And had the adjust firms that full-time nor cost all from they on for that the employees. they revenues. But their their have is, tranche And to good using lever AI So to and a the on X that as side, Big their didn't of some prior

the last have use wonderful cost what they XX a thing need which in months. of when that they that variable tranche to, that have So can they they

to make to I it to I you're just maybe vary, back if dollar accrual, just margins back the go when I'm clear you annual even a don't give just I then guiding to look we the printed kind I'm of I the the how -- And levels to missing think guidance, at understand I seasonal revenue can think but there and comp over billion does go 'XX -- is of of but I at it. $X.X want workers' just start step is just of and and midpoint, on And want revenue, about mean, Because because if way function. seems I'm that? because absolute the again, like -- But else? to you you've the you reconcile typically I EPS, missing I been there the know relative the way, year know is something sure something. Just there I at $X.XX. clear, any any course year? look scale that

Well, top the Solutions commensurate head some side, got line with haven't leverage we count on Talent negative our cut declines. because you've

for get trough about we've talked we margins. instead, But better. tried optimize when I things earlier, haven't As to kept capacity

got leverage you've negative there. So some

now we've side, Protiviti the times. talked on then about And many

X.X% audit. of the beginning the year Protiviti internal beginning operating course first went and first beginning the quarter. year, the went year of the as you then for seasonal a reasons between to went You've fourth you've it margin got segment to and of its was to in if XX.X% an X.X% last over example, utilization year, quarter salary year got promotions, of contraction increases, and XX.X% quarter, But or it and margin look started

mix. top higher better the full-time the rates, at contractor contracts also line employee recovering with that's bill that's so And managing with

negative margins. there year, be Talent I some of in first true the side, got XXXX just so But out you've piece. missing our every the the leverage margins they in on the Protiviti with gate as improved course you've the and of And But always got Sure, would that's over Solutions year, expectation that's true said, quarter. their as well. no smaller there's and virtually

Mehta next Kartik of comes with Northcoast the Research. line question Your from

some aggressive And recover cost geographies. -- X Big with a you're talked ability some I'm how and Keith, play I out little increases your the raises of dynamics seeing ask, wanted promotions that maybe maybe play and year. wondering would the those in some of to as backdrop, you about to bit a pricing throughout because and the being

rate versus of one are the and the meaning a consultant raises/promotions; managing lower higher-level level is Protiviti's is level mix increases; of pyramid, the is several function the gross of ratio contractors one bill the of directors factors: the shape margins Xs one to one contractors. the the time; are full

the rate with can might you part extent And much to multiple gross an levers deal that contractor increases, to be mix versus that. so to not there tweak you manage as that from And margin. example bill your as in are get adjusted can employee

in margins So well segment XX.X% margins them, actively year. a very the those which there managed is during and from beginning income They and levers of fantastic. significantly blend the end of did levers bring Protiviti multiple good their of fourth have job had are each up knows the levers those quarter, managing to to XXXX

on a just question spending. And bank

You've maybe the other from any the and has spending. need or banks seen part side? on on talked I'm Protiviti consulting of about, pressure kind banking compliance wondering, any on the risk for part obviously, technology

-- consultant cases, and and the things remediation, on thanks the I'd many compliance the regulators to say require in a regulatory have at happen those third-party table.

And and from primarily growth in had that's XXXX, institutions. financial banks very double-digit resilient. been revenue big And Protiviti so

in banks, So put package by the cost convert that parties of includes some was them to staff, internal when to nicely. The and that services audit, together, their internal that Protiviti measures. however, that: But one at third banks the risk by put of done was that as for of a different all bank cost industry and as well compliance it grew and But piece included. consulting of the big you single was nicely, firms, X there of regulatory work financial somewhat was pieces big internal grew one the audit as expense Protiviti pressured was grew still piece position big measures impacted digits.

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

] Ryan for on This is [ Jeff.

you for fee for or rates Just about bill your talk can placements assumptions XXXX?

spread expect now rates the gross down there's time. bill margins was come the and our basis factor side, down change accordingly biggest smaller margin those over as And were converting the intact. our the continue moderate. Frankly, quarter, points to like of seen has would rates margin just pass-through therefore, remain year-on-year. down, XX would course contractors in for that's but And bill should that to conversions, you've biggest XXXX, many we been inflation of full about look would or percentage the as our rate so gross we have the much increases quarters, on wage And pretty the well. swing wage come a year-on-year, factor, year-on-year gross As that in swing moderate fourth

percentage our expect be top would would some line because less but moderation at margin be whatever So the rates are, shouldn't our we accordingly. but bill down pay our gross rates impacted --

tech on related those you the and between a audit can businesses and just compliance? underlying prior to some then us consulting question, breakdown of Protiviti the the give And internal and risk

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Okay.

very Thank was us. our for much you question. that last So joining

teleconference. This concludes today's

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