Kelly Services (KELYA) 7 Nov 242024 Q3 Earnings call transcript

Good morning and welcome to Kelly Services third quarter earnings conference call. [Operator Instructions] Today's call is being recorded at the request of Kelly Services. If anyone has any objections, you may disconnect at this time.

The third quarter webcast presentation is also available on Kelly's website for this morning's call. I would now like to turn the meeting over to your host, Mr. Peter Quigley, President and CEO. ahead. go Please

Hello, conference Brad. welcome Kelly's to Thank everyone, quarter call. third you, and

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As influence our statements made Q&A, comments could differ future a call, those results reminder, the suggested from including by performance. during Actual for have the may and factors refer to our about this forward-looking Please no this on call. risk performance. future obligation materially we actual expectations the SEC company's to a comments, for include filings made that of update could the any statements description our

In to an the certain adjusted give trends in insight discussed non-GAAP an be on of addition, Discussion are during on into items certain data a will operations. basis. adjusted our and designed call, measures reported basis on financial

presentation a on available website. Finally, results financial information Kelly's quarter with in is the our about

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managing maintained were market navigate cautious approach We not in that to deferring cases, conditions choosing through hiring decisions, share these existing This market attrition, backfill can the managing both what a focus control, continue to consistent temporary their to some Large and to dynamics, with capturing quarter. open our broadly count workforces, we more staffing enterprises uncertain prior solutions. business mix to permanent shifting persistent continued toward higher-margin, demand and we roles. for impact on services. Notwithstanding resilient continue and head

analysts' double-digit revenue net the in of strong contributed actions rates and our we to growth year-over-year stabilizing progress quarter revenue on our drove strategic Education Kelly's achieved another and business, businesses. In second K-XX our for each in new Our consecutive of organic quarter fill #X of firms the reflected growth staffing K-XX largest which once market, in education specialty. in wins customer staffing Kelly's again in The this share specialty on is staffing industry U.S. the list ongoing ranked of latest

therapy expanding specialty. also focused remain our higher-margin We on

network the staffing enabled app, stabilization sequential within omnichannel as semiconductors third our traction. our commercial underpinned scaling the branch talent a our by physical markets end mobile capacity attraction for priorities strategy, gain specialty as share remained demand locations our P&I business, sequential business the they second in ongoing quarter of therapy to we quarter staffing way greater and and our in to improvement This the retention industrial P&I are Kelly meet revenue of near-term and talent. In markets, is the P&I strategy gave the improvement attractive in achieved this our to pressure. business a of of improving and Our continued additional clients outcome-based where expansion under market renewables. into capture and business driving continued the the in and are and Now Also including in

AI-enabled higher-margin for a improving to expanding year-over-year RPO on focus as of the of Powered spending statement as delivered by Process our for efficiencies through basis. continues solutions upgrade into employers Our services offering its through driven works our growth reflect results among business offering market seek decelerated from OCG's advanced new technology more management. before Outsourcing a Helix without for seeking optimize which to maintained months in ongoing MSP generate the capabilities, summer talent interest Payroll demand year-over-year stabilized solid demand solutions. to the began on innovative revenue quarter drove processes total opportunities. In market business pipeline our continue OCG our to SET solution. increased sequentially head of uncertainty. with macroeconomic MSP primarily we Revenue the by drive SET adding This market September business addition suite amid during intelligence business, the platform, dynamic clients technology steady and increase the Its companies higher-margin projects. strong while continuing SAW-based outpace to on to count this

Together, first SET. quarter reported and we're Recruitment synergies to realize clear solutions The enable results underway, Motion third currently I'm whose since acquired highly Kelly will transformational deal. collaborative a pleased are talent integration achieve company, that cost planning approach of of the our this full the value teams full complementary to revenue our quarter part Partners, have also pathway well specialty with as With Kelly to creating marked taken the businesses. combining

the our the turn to in over more results details quarter, third on Olivier. For I'll call

everybody. Peter, you, morning, Thank good and

lower of $X.X XXXX acquisition MRP organic MRP. compared provide the basis. organic and of and of in of include our third visibility Sanbor into of Recruitment September Kelly operating built business. In European results, half over QX. starting by but into the XX for on year-over-year changes our business, XXXX, business basis, As quarter. I with XX% XXXX will $X.XX second the year-over-year revenue This results exited revenue practices, is sale reported billion staffing much is an in on and a we up results flat fill on basis. acquisition our ] Organic X.X%. were revenue the K-XX staffing the a slightly the was [ in from an quarter from on Partners of reminder, included to staffing than essentially to is Motion weaker business quarter billion net in References January some XXXX. Revenue the for the reported and X% reflect trends resulting our a a to resulting results results results on growth included continues revenue quarter. in was the impact XX% European SET totaled down segment, sustained rate organic an the in because greater our sold what in basis, of to growth, discuss year-over-year our the improving date. To up in down as full existing European offset Education. QX On new partially since Revenue XXXX primarily of an down organic acquisition was outlook. Reviewing at but acquisition excludes for XXXX, was X.X%, improved on also customer X, information XXXX we have months Markit, trends continued the that Education of May in season we This double-digit low our segment, by deliver wins which

reflect our primarily the quarter, certain lower For telecom. outcome-based our solutions driven well demand staffing by demand organic total down in in lower in with verticals year-over-year X% market as as specialties industry staffing like trends revenue

both seeing continue moving We innovate. Permanent which where X% In & stabilization outcome-based Industrial QX of growing RPO are talent were outcome-based work year-over-year. including whole portion and P&I sets MSP continue but we our focused more MRP, to direct the specialties products organically doubled to of XX% to market a in strong segment, revenue a placement ]. Revenue see improved but hire the of are revenue positioned staffing OCG and across revenue has business Revenue the a declined [ MSP to our quarter. Consistent when as fees variety statement results our than year-over-year meet of X% the turned in to growth from strong clients' sectors, business. continues revenues in sequentially. And lower-margin declines revenue our driven gross solutions And product our demand QX on as sales put OCG revenue margin line pressure in in revenue be specialty. the with higher-margin flat was again product for slower our are skill Year-over-year SET, from positive with for to Adding in of customers' market momentum by declined benefit RPO people innovative labor MSP declined due this segment X%. increase certain declined PPO we some X% and contingent year-over-year. The to Professional P&I. into hiring demand. in XXXX. segment needs a quarter, sequential stable in in is the in sequential well revenues in in pipeline

basis. reported for contact an the gross segment's or solutions. Overall, demand P&I outcome-based as profit declined, diversified was X% has of on As portfolio successfully has specialty organic its center down X.X%

third the XXXX. gross XX.X% was of reported Our rate compared quarter to XX.X% in profit

Our and reflects from additional basis a improvement quarter. European GP from points an MRP of rate XXX operations for a point the our sale inclusion XXX basis staffing of the full

to for aligning $X.X million of $X.X as and XX reflect X.X% down the our of perm processes in rate million with XXX points and of and XX the The continued MRP. SG&A charges. million transaction include specialties. SG&A organic basis, the of on restructuring XXX of favorable Expenses points XXXX expenses in of have reported includes Excluding transition $XX.X trend on million includes point business fees, well MRP; from mix offset finally, basis company; of sale further acquisition of GP the technology growth third integrating QX. European as XXX to year-over-year business those an by operations; in from $X.X related consistent expenses rate were across basis. quarter mix costs staffing points -- of costs a impact and trends QX, the to basis partially costs. employee-related with basis declined impacts XXXX we expenses associated lower the Drivers seen also lower basis related the GP in

adjusted So basis, X%. declined on SG&A organic an expense

lower points a [ volume compared year line a well of management's levels from acquisition quarter million were of resource on EBITDA performance-related top as expenses in XXXX. On XX XXXX of added to QX with in improved improvement basis $XX.X million offset organic in partially basis, from organic MRP, of $X.X operations, the align operations ago incentive to like-for-like million staffing compensation MRP expenses. On by of margin. XXXX, $X from to earnings as in XXXX. point earnings ]. effort reflecting Adjusted a So third basis points X.X%, reported points consolidated margin million variable of XX the our to from million QX XX EBITDA decline reflecting The the were our the from in inclusion QX third operations our operations basis compared adjusted sale European basis were trends impact the XX and $X.X basis, earnings $XX.X quarter an

net, the was XXXX of acquisition to year-over-year share expense XXXX. is benefit share compared $X.X has quarter as Income $X.XX the $X.XX benefit reported earnings million And of tax of third integration income, quarter a for Earnings of share restructuring net third million $X.XX of and a expense costs related million interest QX. component which borrowings the charges MRP, per net interest include $X.X transaction to to in in net of in $X.X tax. $X.XX per costs share increased in of for per in compared income $X.XX the other net was Following and XXXX. Earnings of finally, reported of tax. XXXX per tax included of

income include -- change in the basis, $X.XX XXXX expensive share in allowance XXXX expenses QX QX per of the release $X.XX was of valuation of share XXXX. $X.XX a of following an on deferred of interest impact and additional $X.XX MRP earnings adjusted The in to compared acquisition EPS in onetime tax XXXX. So May per

our of end available available comprised quarter, cash and sheet. on Borrowings was the on totaled $XXX $XXX credit At liquidity balance million. the in million million, the of reflecting at total $XX facility. million of capacity Now $XXX

and for to ratio is additional receivables the quarter us credit $X.X and in XX.X% experienced X investment flow days, QX organic the billion, sheet including strong market quarter the Our million the XX from the making of MRP. accounts flexibility we cash to DSO the we environment. At period sequential end at inorganic navigate comparisons totaled leveraged DSO was of quarter debt-to-capital $XX prior Education seasonal growth MRP. less generated acquire which we And balance QX, Global free up as compared comparable financial business, in facilities pronounced million uncertain our the in our an give our third day With pattern ongoing XXXX. and receivable period. continued -- a lowest to of in DSO highest is more have year in meaningful Year-to-date, past. $X than end, in

OCG in with and in that we conditions quarter. Now have looking fourth ahead segments. what and remain continued revenue staffing QX stabilizing the results We believe for P&I, in to our relatively operating experienced SET market consistent will expect

of us, And to will will from double-digit year-over-year both revenue and continue improvement produce deliver Education metrics. start to further also the behind MRP the our acquisition will growth ramp revenue growth. and year value QX sequentially in segment the With of school QX finally, our

quarter, of $X.XXX an no with X.X% significant basis, we FX on midpoint an the X.X% expectation to be on in up resulting billion For expect a organic to revenue organic revenue impact, basis. first

MRP expect to addition, the ] quarter. In million we revenue of in $XXX an add additional [

is to growth. to higher-margin business of current to significant QX. points XX.X% gross for mix, in reflecting add segment expected margin profile expected its We rate our additional specialty to the Education is because an our expect the organic XXX continuation continue about with be in a rate primarily basis revenue our deliver MRP to GP QX, change

resources to improvements that our over the year gained segment. past QX in, each all managing So are trends is and XX.X%. Reflecting sustain be GP expected revenue with rate our expect SG&A, about line transformation-related in we actively to efficiency we the from on in in actions

organic we a expect that will quarter. fourth excluding ago $XX $XX MRP quarter. amortization, million the amortization adjusted in, the be about add of expenses in on SG&A, and basis, than expect depreciation year X.X% in to an We depreciation will X.X% lower All and approximately and of million

a the adjusted expect tax to including X.X%, low teens. And MRP. basis in points Peter. margin about now year-over-year, EBITDA of XX to XX we the from our point of effective rate up We And back you, an acquisition basis be expect X.X% finally, improvement to

in markets. company. Within clear: revenue account attractive growth the a pursue likely more market near-term enterprise insights, Education, end the conditions for expansion Thanks year, and also continue by to capturing the in our higher-margin, and Olivier. to business on remain move to top wins we'll our more and of strong for our are services MRP into unique initiatives focused acquisition staffing our on market These new SOW in for on with strengths trends those And With existing Kelly develop a large driving our contributing initiatives, ahead inorganic resilient SET drive capture maintaining We'll our and of each end we'll healthy actively our OCG share about enabling that opportunistically, align organic continue we'll SET, fourth will with of sharing pipeline uncertain call full OCG. we to stabilizing thoughtful K-XX whom partner Education, and forward of progress of the strategy. omnichannel and to outcome-based strategy both our SET, P&I greater including staffing to more further net sales earnings integration our and in control, persist what are high-quality conference aggressive continue priorities continue of to fill specialty teams that quarter strategic pipeline. We'll targets with P&I strategy through approach journey. customer our harnesses execute can and the growth delivering a results growth investments. rates while our year to remains pursuit through look priority our value I a on creation our business. inorganic to through growth approach February. We'll business on

that profitable competitors staffing demand rebounds. line Finally, includes to top growth helped have demand resources EBITDA This disciplined improving our historical our management to achieve significant our the on to base on of to formula our line our cost growth. our a from apart structural in driving recent bottom enabled to a this sustaining set SG&A with has to convert margin aligns we'll growth challenging us has approach progress and share us accelerate from while and laser-focused environment that ability journey, remain average maintaining specialty trends. This Kelly expansion greater uniquely positioned when it significant improvements

success of by the united propel purpose, professional strength and management our energized confident and market staffing, growth. Brad, leader. why and call into our as strategic over can and questions. and services we open to and commitment you the the member Kelly's on people. competitive our each win industrial a procurement evolving contingent priorities, team Peak excellence continue several Team recognized dedication recognition this Kelly reasons solutions, their we'll which MSP, to categories. are to that and recognized the talent. relentless Of recently key the term. With named Everest This long underscores outperform us offerings was compete to era which our deliver of XXXX advantage Their staff, grateful of engineering is clients a pursuit business Kelly and and performer; to innovation Among greatest our the needs of are our Kelly to staffing for star among course, Group's by positioned Matrix the of of an Assessment was and the front in I'm our them in journey noble now Kelly I'm to contingent meeting on in opportunity Kelly new are workforce across

of Joe question And Noble today [Operator our line with the Gomes Capital. Instructions] comes first from

cost. rest you've know of the integration I the that operating separately is Kelly. past of on quick MRP the one said real the So kind planning in you're of things from on

integration do any? much here you in the these we're couple of next how of costs more think if So quarters, to see going

previously Joe, we part earn-out thanks. as -- transaction. regarding as integration, -- the is of there an so It's discussed, the

And the the will agreed bottom synergies MRP. and of quarter that integration the when we've in some companies so period Olivier brand on midst are significant the of let is to period, during first maintain we of comment through operating and cost. earn-out top integration the for the both which earn-out But planning capture runs line XXXX, over. I'll

mean as Sure. going soon on Peter the I QX behind saying, that in the to mean, of CapEx we the technology to integration. to majority are are of -- was to the up OpEx. we going the we are XXXX as are next of as because so earn-out It's planning going But Yes. I of cost a end earn-out. plan trigger have now to year, us, related QX mode we year. The is next of and incur be the

be IT usually year. evaluating cost, we in it's with still every are I investment say the line are but would type this single We going of in to

in have should as quick be are a OpEx, visible more big to of going a would say, little integration. in probably next it significantly go overall and QX limited course impact, QX, technology I It's So on term of XXXX. overall, to CapEx and of the year this going in bit we

like segments. X profit to in that. the release, exception about the I year-over-year rate, bit segments, be everything little of the Okay. looks you And able other And wondered break it a with if just you through in SET, gross out then when fell looking talk might the

the organic, it best I excluding transaction the related excluding -- Yes. is you EMEA probably way to look staffing. at mean and When at right, look MRP to and

far. a trend at much with so ago look P&I, pretty have at XX.X, you and year in the we line if we're So seen

a a local We from now fee a costs. the little to start bit branch-based our see we got business see staffing overall fluctuation, mix is some continuing our see And we where for fee to linked continue business. staffing, within we providing is on little business our in overall, higher business of margin our on margin outcome-based the we Education. factor at the to related We focus yes, also maintain our a start now, growing margin the us coming of of margin, positive continue for mix have But some business we impact to pace overall which I business. see that and we pressure than staffing faster better first we to attention gross challenges of gross the that pressure downs, the business. In gross see pressure. despite also say, on would so quarters seen our to rate top have some our see ups rate. And we employee-related because a is have quarter helping to P&I, bit Education, centralized QX

it's a low basically would education, than because because see a to quarter, But we mix carefully necessarily year. we the the for not look is QX more are yes, judgment type definitive margin and the But sometimes overall of Education. mix. product not line offset see. down, to need seasonality. OCG, the It continue some of low explanation make again, does reflect rate by is mix we top in seasonal clear right? GP growth You continue we on I in the see necessarily And pressure the to

MSP, the pressure statement business high RPO The working mix, we pipeline still got knowing side. basically, P&I to XX% outcome-based versus significantly. rate, growth again, that doing have. because stabilizing. look we when OCG. In the expect in GP growing are on staffing it our on maintaining MSP on overall is you about put we are business we on we history at now job a and fees, the the despite other overall near of in work PPO a SET, side especially of rest future you now on main the by MRP, similar have reason of a payroll healthy the versus and of the of of the kind GP And some in business, XX% course, the much of at hopefully lower Our that's why is But rate,

the EBITDA think up And you could year-over-year. you said points again, walk that you -- just if said margin. X% for X.X% was that. in think the you basis I last about one, through quarter, a adjusted was And mentioned us looking margin XX last quarter, you were adjusted But EBITDA wondering I

Yes.

I maybe to you QX, little to think picture. what briefly back QX -- give if the a I'm to bit go going full

So were you contributor, of in XXX at points. In total majority QX, XXX might pure remember Organically, XXX, basis in so are at we're up we The the it, of an basis QX, points. out year biggest basis X.X% organic. ago, of X.X%, XX XXX points points. QX, at the again, we're was versus basis X.X% X.X%. a we improvement

expecting of something in are last year. to X%, X.X% We QX closer

basis the XX minus basically, is about are and for you exclude basis you But organic points. XX only, So improvement go points. if we

or dollar digit. absolute I were say, half mentioning, in -- seen, we is QX I growth would I at the of that So growth to course, pressure, is first has course, Peter of But as mean, of of still Education know some our double is the because revenue what of have the all, on impact contribution than overall, first and Education smaller much in healthy in we course, business. an SET year. And the QX

were for revenue, low a in was months first and terms us. The X of pretty surprise QX that of

of year. The side the at the you minus positive peers our at of rate, little that meaning market and when the QX is of seen organic for We month the have challenging at September, in basically than X.X% bit conditions they quarter. exit revenue X% more a minus versus being a beginning in we're SET, look were also

how and the of if it see dynamic I next a see are to Kelly which in if our for bit X% excluding comfort being Education is to on So growth, us an was OCG, and good we to X.X%. But organic P&I news; we a rate have think understand in QX. giving that a could overall, to about in wait in seen improvements September, think a little QX September, little final But like dynamic exit That we mean X.X%. does September. to need to exit for the wait of SET trends with in on weeks look at the our coming next in to weeks very rate is QX. are some the almost closer we more the good basis, little need XX.X%; beyond I look X.X% is some have continue see the SET assessment QX, what about of seen going rate at to again, bit to We is how and turning bit at the trend coming to dynamics exit going which potential have current

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

think a I I said quarter, last bit Olivier, early. to you goodbye little

wish you So want correct best forward. that I going and the to

Thank you.

been been the see time, kind and a just on thoughts might hasn't on kind has what that acquired expectations how you that look but you characterize would long it based I early Peter, as on of performing you better kind early business, this your expectations at and business you And when your the MRP the of performance the now business? it business than know of is business? of maybe look how at

of our in expectations. current we has what certainly its similar industry from immune is Yes. met business. The affected the business my market in by are And The MRP that SET see are to results business the is conditions, sectors that. and not

So in I current terms industry very headwinds they're, the of well. managing think, performance,

RPO staffing at they solutions. well as their And our they're we term, business, complement options I and really least is business, meeting their solutions the complementary our the how Sevenstep expectations, -- MRP like if think existing deliver not when really for is both exceeding that of our significant as nature for expectations. demand includes think which long the rebounds. We will MSP MRP practices. that And positioned

quarter. some little the trends maybe And a better than wondering SET the even months if talked if of monthly you at things Olivier, business and trend was the the about saw of September you I'm just look the and or previous in the X similar the then, talked at how the X throughout you where a fairly rest And overall about business businesses, quarter. months

mean, total trends. think, if the I quarter, if I average the better Overall, the say exit look rate it's you area would No, again, overall to you a type at it the sales in linked is specific SET, same than No. of of business?

X and the but of similar have better a And beginning as then we of that Recruitment none We in have to month seen SET. September, months was trends area well. at QX in linked in seen specific challenging very Motion a

what on on top a QX. market EBITDA and for But Peter top amongst Although fees, is the for is X% interestingly, which excellent the we in region QX MRP trend but pressure it's fee perm knowing I our we of of by interestingly, things. on we is are at despite up expectation the line now our continue the the X.X%, expecting, MRP. potentially on margin lower to meeting little X.X%, the follow in other saying, the now some see the see And the pressure GP was XX%, in in line the mainly think business, driven pressure pressure rate, bit still than we have see we to

stay at margins at I stable look margins trends were business a if costs, you question. the of out -- that improve kind taken as revenues where stay is kind can stable. XXXX, to stay in final you the point and of XXXX, or similar can you just were And seeing last you've the you a know Olivier,

And going in good. No, when the need we plus a you we the QX. There exit and are a be you I'm weeks the see we are to SET overall confident have see look I about where, know this momentum, line look MRP, to we is to is think probably if at on I how which even think question being are outlook not But something extrapolate. positive things that now confirmed on again, still going going can QX, but wait the back organic -- now for think track. I top might rate bit that get September turning I like, to little are to coming

expansion margin I addition the MRP, margin continue. -- grow So soon and our start as expansion we net as our should course, to of organically, of with think

You that going that's position QX, of is to have think, enter that's and XXXX. well, be achievable, outlook to X.X we an to into are providing I to seen think for X.X. us I going something that

terms short-term better So even near hope I going capabilities think small really high is now through to But not I I of we not we to say, have challenging in us leverage though margin a be think would leverage net our still to our transformation a or small. lead equipped progress environment, expansion with, the the growth, should XXXX. growth I think which continue line may have proven top to we I year in are even well future, leverage beyond now which

with Kevin And line comes Barrington of Steinke Research. our from question next the

the there about you of So that It of mentioned third couple of with that bit quarter like a sounds some months in a talked the think you improvement first softness in September. the SET -- in softness. I surprise,

in you that seeing led the the into trends dig of could bit dynamics what throughout you're a market kind you third segment? quarter? And So saw to the little just more

as and than in September. steeper Kevin, August. were It but July mentioned, by expected, in the the was encouraged also we Well, surprised deceleration we by Olivier were rebound

As necessarily ease but that's, improving. of think, I noticeably customers of rate I first not Olivier couple improvement on keeping or quarter. of say, the among large reflective considerable close technology And the showed We're respect mentioned, a continued it. The caution enterprise eye with to industry months over would that continued When projects. the the of be of of CapEx SET sense as the practices, exit will as seen. is, large happens, stabilizing big business -- spending in to other return terms our MRP and like, engineering companies our science both remains well that the and Kelly we're well But in habits normal course, positioned and when and to technology acquisition. deployments will

makes Okay. sense. That

of bit when what and in we so growth below it's with quarter at organic outlook And fourth the look combine a growth, you're this for that looking organic your terms the of I quarter flattish previously. for kind think third in

fair bit that's change in expectations? that attributable of So in primarily to a is to of it terms say a SET

SET see But say we to organic still because to a is cautiousness are have things our again, bit wait need moving. on question some level for outlook based would revenue of is that we I little a -- how where mark.

X%, a also to P&I QX thought the we in a or versus side, revenue see we X% is turning ago. now to bit, flip are really starting 'XX, have we XX% rate improvement QX year-over-year, the positive. to and QX I start -- is about the X% of improvement. On from exit positive significant to what QX September And that showing months minus the P&I that little QX sequential revenue total you mean, think a knowing minus because when market we improving total probably at moving fact QX year versus X then that now an minus of

to course, the months, clear that the is OCG, expected -- segments. -- includes that Kevin, relatively we it's revenue and flat as the of continue while of our P&I very flat mentioned, take all market business of because slightly SET share you Education. in of what And well as across below couple we as And first SET

been SET, where So share. quarters taking it's -- been now X been we've in it's

That's Okay. there of saw leading of Olivier, terms my in discussing sequential P&I P&I. growth I that really revenue you a great. question guess, in was into next nice kind

market you factors other the maybe getting I little mentioned place. better, any some if a you bit in just dig I'm sequential think organic initiatives that could but have driving you I improvement. wondering know into

new like market renewables. you areas couple and of think a mentioned moving I into semiconductor

So that any if more you you on sequentially. color revenue rebound could give maybe saw

Yes.

using P&I what performance growth, of light rates, and local with our, customers, from omnichannel pleased signing seeing result. -- a I'll results and high delivery up industrial enterprise Olivier improved resulting cycle where which improved employees and reassignment let we the to we the our the We're for focus on on centralized call improved times demand that But well, Now very sort see it. mobile of which number large is is really and a improvement strategy, markets app, the it, that our commercial think our who And I renewed solutions. we're comment are for in are Kelly as fill rates as Kevin.

take really that, that type and a have it's off going share. for to we improvement expectations we'll continue beginning And combination of number pay of forward, to strategy of that will So a quarters. continue

X/X Yes. P&I outcome-based business center year a of times, bit mean, is discussing under -- is front in dynamics, our total, on flat I mean which example the situation. speak, semiconductor just ago. in is difficult a is up as a And versus I pressure. Whilst But one outcome-based, digit. call is in good to of our And business the X/X it mean the revenue center X/X us call add, Peter is revenue from probably is is hiding little is several meaning of P&I, now that that's what in growth. call I it center was for this a This business I away a that of about this P&I double which diversification the business. in again, really outcome-based mean high is we now business. nice outcome-based. historically, was revenue like

combining with on only in industry the specialties verticals. X/X together outcome-based, very, because it's Now specialty P&I very we or some our outcome-based around in delivering grew fast especially

Okay.

Sounds great.

couple taking market. couple of outpacing a So And actually your comment SET mentioned you've and P&I. about the a about or in release in there stable of the share had times times organic market alluded year-over-year a actually earnings you revenue

you to feel trend like what the going of and if market continue are you that forward. and and share the outperforming factors that speak to taking just maybe think take share competitive that, can you So the enabling you dynamics are market

think districts do we of no value really one Kevin, couple can to a else dynamics. we're point possible. leader. I Yes. Education, just would And have that think And we match. school the I it's a clearly proposition for

why, why, to Olivier the knows we're Who mentioned growth, that's expect think solutions how focus I omnichannel MSP our P&I, works science, particularly in continue because statement that of we're our share least P&I traction both of strategy I recognize differentiator. fair we leader and there. to bringing Olivier space. solution, suite gaining outcome-based we're telecom the that And to our technology we're mentioned than a our within it's more Helix so Education, because our P&I be see In develop think, is double-digit differentiator particularly we that. And the in mentioned, a going also the it's -- are continue taking market. business. MSP at share of competitive term. sustained we to comps. But the and And think to engineering, in is on in can long difficult staffing. given OCG, that taking solution for we share competitive SET. as just near practice, more in but that's SET, the And the solutions, technology-driven and large we're Customers that the of winning

result GP think 'XX, set but create We implementation half of a have number programs the we've won But in to large a pipeline, -- very so have and an we we of apart. it's 'XX. that again, more and the that deliver a also will are healthy back in begin a of of very Kelly solutions set

$XXX.X appreciate from that. we MRP, sequentially just I helpful the of when just really were third that's the quarter, lastly, about by $XXX million, SG&A think Great. they Is expenses, insight. inclusion million. And that I Yes, up adjusted Olivier, assume? the for driven

of provided we QX. a This well. we year. in going to and Peter seen is for mean every This I are when we change adding clearly, for that Yes. we can excluding start of After next what the synergies $XX course, are was QX. that, see have, things are few starting minutes we the in impact whenever going is QX to what what because mean, QX expense, integration outlook going discussing at to I something right? million look quarter, would in as have of ago, in depreciation you you the is, MRP MRP of amortization and say, is I about use

believe Olivier, on call, add your wishes. Okay. my helpful. And earnings is what I I last Yes. will best That's now

Thank you. Thank very appreciate Thank you. much. you I very much.

And from with that, next of Riddick our the Sidoti. with Marc line comes question

hear me? you Can

Yes.

Yes, we can, Marc.

sentiments pleasure as working you. with a you and Just well, been want everything certainly Thank Olivier. to for echo my

Marc. you, Thank

the bit I guys sort you some -- the about to to as as a some with curious thoughts curious marketing. not of technology or things of far as play innovation that opportunities the bit you you talk quite maybe a the of initial sort maybe or or of could covered as was that out I might that and potential some sort whether integration see was little investment as of already. spend to how

we talent. includes of think customers how the I to Kelly of and focus, other best well enterprise Marc, now takes practices MRP. and the that to the plan Well, And of That really create is is its work and that advantage each includes go unique it underway. right capabilities bringing our a to market, both

period. not going beginning year, brings we I we're But technology QX during opportunities for the some integrations. MRP to to earn-out the to equation Kelly. said, anything begin next do really As of implement those will exciting

We at going we're sort very technology our to business be we point scale SET walls include also a of to the X think create the exciting opportunity and so Kelly some that's MRP. -- to And on how of enterprise. the value focused not potentially very but the beyond only

earn-out doing we're lot And the a but we're to preparatory make ready work to eager again, And -- get so but we're go. period. sure started -- the to of we're respecting

we I Motion energies I line this talking have to integration, in technology I have business the think is are shared, earn-out soon July we integration, we us. on Yes. synergies, as when back-office ready. behind The mean ready June or term in a -- was as top saying, planning course, be some Peter and because achieve we we I think that now And are targets to need integration -- about as of have think, acquisition. we're we plan of

are year. initiatives feel next we able of So as QX going soon to those execute we as to be that comfortable

had And what but feedback the is that. customer I early there, not to the too feedback, for gain if opportunity the early, might be -- client as to little curious operations may as was night a little it this maybe you combined a hearing and you've it's to be where

Marc, it's been universally positive.

X combining a of potential. outstanding that organizations creates recognize lot people ours think like I

leader known Motion that in space. are very high-quality Sevenstep I The talent brand in to as think Kelly's the the excited really recruit customers well place. for is RPO recognized is about a being able

customer about So complementary Motion the to bring business our government RPO excellent telecom practice to Kelly's a is an and very TG that business. to is will Kelly customers Kelly's practices telco set the excited again, practice. The Federal a Sevenstep formidable practice. OCG government is complementary that, are has best And leader highly

their opportunities the new bring recognize the and workforces. see that to So customers an for very solutions, to new opportunity again, best and talent technology,

Instructions] [Operator no appear And time, it does further the phone lines. at from are this there questions

all again, me thanks contributions let him my Well, final -- my add to to the Kelly, wish and for Brad. Okay, best. Olivier his tremendous

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you, all Thank set. Olivier. I think Brad, we're

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