Korn Ferry (KFY) 7 Sep 222023 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry First Quarter Fiscal Year 2023 Conference Call. [Operator instructions] As a reminder, this call is being recorded for replay purposes.

We have also made available in the Investor Relations section of our website at kornferry.com, a copy of the financial presentation that we will be reviewing with you today.

Before I turn the conference over to your host, Mr. Gary Burnison, let me first read the cautionary statement to investors. Securities the plans such statements and meaning the in to those within made of of performance, Act future goals Private statements call as today, relating the XXXX. Certain Reform Litigation constitute forward-looking

of materially Although or Actual forward-looking are number the are periods results a are not in based such reliance desired undue differ investors statements to assumptions, future company place control. and expectations from reasonable on risks in expected uncertainties, the the cautioned beyond believes because those reflected currently on such of may statements. which company's

the Additional amounts, and year uncertainties and the report Also, for the in XX, in July such with soon reference filed information non-GAAP presentation such and XXXX company's quarter release annual filed periodic company financial comments concerning may to including XXXX. reports the other risks for can be SEC, quarterly today the this EBITDA fiscal in by and measures relating company's adjusted to constant-currency and the EBITDA. found the report ended some the of be as

go and information release call these are Additional the the company's in to With I'll Mr. financial over presentation www.kornferry.com. measure to that, ahead, including Please the relating is Burnison. the turn concerning call contained reconciliations relations both financial the Mr. of comparable sections of direct the in most measures, which investor GAAP posted earnings Burnison. website at to

us. you, Toni. everybody, Thank for afternoon, thanks Good and joining

$XXX fee And has good. XX% were about pleased First, performance XX% our They in also constant with currency, revenue. about actual to I'm in up long-term been first results. quarter our dollars very million

most more place, is you significant while dramatic feet landscape to about XX%. that These taking mention since done. CAGR is workscape reset is a look where CAGR the how our revolution. under not are tectonic organizations our shifts is industrial XX-year XX-year at imbalances XX%, significant and in there labor today, the get arguably experiencing a When big changes and about our broadly work Our the

Ferry, climate fight a months. we've relevancy. over tomorrow's different As result, offerings growth, undoubtedly the confident a in And in in profitability, the of organizations, year relevant including Korn I'm we've and a and built a environment. next today's will seen be last for XX Clients than face that will business over IP portfolio are that

of relentlessly. most change, the times them numerous initiatives, easy execute impactful great During it's identify companies to potential and but choose

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Secondly, strategy, we're delivers of driving Korn business XX% Ferry, crossline one revenue almost our referrals. integrated from which go-to-market of

really $XXX about last rate basis. run family. most Korn in Infinity investment our Ferry interim business million with And that Consulting we're Then invest also XX% new to consulting of suite of firm. the And digital our and expand of digital going to technological our these of on includes a March. current recent excited represent we capabilities the them annual continue Solutions to areas Our to and We're capabilities. in about potential welcome our

trend, the people we as the frequently, jobs imbalances our to interim exist more toward to pivot that career Given capabilities market. nomad change labor and continue bringing

upskill is focus digital in on on sales the technology upskilling platform a working And see the professionals. ICS also effectiveness growth bolstering opportunities marketplace. to in technologists. tech focus firm has a We around heavy our on

continue to to to capital approach disciplined allocation. going execute we're Lastly, balanced, a

the will times, remain to these while our organizational includes development involving to components Now strategy, offerings all cycles great needed on and talent helpless Gregg and Ferry joined meeting that clients I'll their hopeless. synchronizing and our opportunity. turn success. morning leadership specialized continually they bring people to as – relentlessly Bob, their without long-term premium Rozek. can I'm strategy, needs Korn professional a endures. learning over great their going of on for and talent drive clients We're This talent change Kvochak aspects focused the the drive Strategy you. times it change rethink we're of in helps is Bob organization, without their is performance people. strategy this through is firm by and

be the to thanks drive work today's in world. morning, you forward. economic depending environment, and and our Secular seek Gary. afternoon labor finding, reshaping skill by really where to drives challenged And good innovative continue ways world uncertain dislocated and it to are talent, Even of developing, new retaining workforce. of markets business or shortages drivers are global their the of Great, good engaging, continue and in companies

of labor aligned than interim talent, set of drivers. Today our talent into spoke Gary proprietary today's times are property a collection both the with integrated solutions the in these more for on clients in management intellectual quality diversification market. We're solutions is our which shortages with this of broad of perfectly common positions. permanent our ever is of example anchored and Our interim just An needs increased need timely finding talent helping that about. strategy their capitalize

of issues. us the come to solutions relevance I've in. said past, business that's positions Now, the times company we today's through no ever talent people. partner has difficult in to ever-growing with this uncertain sticky And issue to a our Remember, clients bonafide or solved as navigated where without most uniquely help find business

their solutions and Our exceed people potential. organizations enable to and services

up in first results to which was the up or first continue quarter illustrate a year-over-year XX% was first grew in the our for fiscal was Every the and up of XX% the strategy consulting, fee of & to In execution. focus year-over-year. which quarter XXXX revenue today's $XXX and Search RPO, million, And million XX% Professional quarter and thrive We XX%. up business constant line grows economy led XXX%; currency. $XXX our that power was which up was on by Interim, which at our of relentless

Now our business that's Consolidated to exceptionally contracts. first but was month line of remain at with growth business which and July. RPO business new By followed the by acquisitions the good another includes search strong. synergies quarter with interim, of nearly other in $XXX obviously professional slower of with was business our remained new continues all interesting strong first of quarter in currency. An between year-over-year business. lines was note, new recent million our also strong every June; new excluding in up in RPO in May; a constant

cross business As new almost the increased interim the quarter. referrals business line by the of actually and professional for XX% search

lighter than was Now our digital new expected. business

prior quarters, $X about eight the deals $XX digital per defined in million large million. quarter with large For average, those over as being

EBITDA $XXX to Higher $X digital grew a to revenue deals discipline The but large an of cost historical and deal of of to $XX remains XX%. EBITDA earnings X% we levels control very and in large only million quarter, had in the year-over-year closings. pipeline drive closed return or the margin quarter. with continue growth. million expect strong adjusted deals, million strong to into Going Adjusted large pipeline for deals

important pay in impacted motivated. our growth quarter our profitability hires, raises. colleagues both new investments drive engaged are the keep spending and in to and investment as were These by to as for first colleagues future earnings promotion Our well and

earnings outsized which capture Our impacted but $X.XX in rates continued our businesses, to slightly significant finally, really per adjusted of were investment offer margins adjusted post-synergy year-over-year EBITDA revenue grew a us also And opportunities or lower X% $X.XX. to share by a fee growth. diluted interim adjusted carry margin, our EBITDA

and position $XXX million. securities total quarter. the at strong of Our investible the cash about first remains end marketable Cash

amounts deferred our bonuses, end was balance comp accrued approximately the quarter excluding cash $XXX for Now reserved of investible first global at and the arrangements million.

well was deployment, capital first of our digital million And In dividend development that, Solutions, with $X review Infinity in the a to about approximately of our that the about about how towards more $XX repurchased second for of And on million Gregg balanced. funded about be X, our August we capital and which million segments talk cash using as of Gary capital of call paid $XX heard $XXX turn to our to most directed ICS. that shares expenditures, acquisition our I'm of Consulting announced, going quarter. continues With in business. we did XXX,XXX stock we initiatives day we about quarter, deployed million, we over first or to operating previously the the You detail.

is up million revenue Digital adjusted Bob. with the total million, In EBITDA initiatives. the subscription approximately of The for profitability product which impacted KF constant sales first of and investments million, was was development in million, for the XX% both digital's margin. Digital and XX% quarter. representatives Global business subscription and reaching year-over-year for at continued EBITDA slightly approximately and approximately of Thanks, from KF with and digital were grow, adjusted by of Starting quarter Digital. with year-over-year Earnings license currency. component was fee fee the which in sales. XX% $XX commercial $XX quarter, new up million, $XX.X generated coming $XX a Global to $XX.X XX% X% license revenue was and approximately KF revenue

regionally all growth $XX with in million quarter, was margin XX% were $XX.X and Consulting new Growth demand grew first up at In and million, placement $XX turning steady in which skilled to or was which and year-over-year. EBITDA revenue recently EBITDA first year-over-year America, Group XX.X%. and business year-over-year Consulting. Now in Fee Fee $XXX.X up $X.X Interim up XX% constant market XX% X% adjusted based capabilities for from also Patina. constant currency. currency. across strongest Lucas professionals which by XX%, was permanent Fee Search aided continued XX% and for or revenue solution million, up areas be and Professional respectively, grew currency. strong adjusted X% and to for revenue Consulting by supported both million, of million broad was approximately the to new acquired XX% enhanced to quarter, approximately was North at EMEA constant at and and the an

interim by project professional provides of growth Patina, talent with Our on and senior quarter executive a grew driven million, to fee sequential level which part $XX recent basis. our revenue in acquisition

also year-over-year scale $XXX outsourcing new quarter. another RPO was XX% $X.X the million approximately million in This Our quarter revenue and and XX% first of with $XX remained for million, currency. the at interim EBITDA revenue up under $X.X up or consisting up quarter, adjusted was strong or of of business strong, first brings was business year-over-year at was work to XX% million to Adjusted $XX.X the margin constant per $XX.X million to contract year-over-year our EBITDA $XXX approximately rate – $XXX.X and client EBITDA process recruitment margin. and $XX bill adjusted a growing was XX.X% approximately was EBITDA or awarded of an XX% million extensions. with at revenue, business million of million which renewals $XXX Fundamentals million average of new adjusted total with in or hour. $XXX per first million. continued $XXX which end the RPO XX.X%. Earnings million, with Fee the

currency. Finally, EMEA year-over-year first was approximately quarter, fee Executive respectively, strongest up the business at new revenue strong in to Global for XX% at constant up Search and was also America, up which North quarter, currency. X% Executive and were and X% in XX% Growth the constant first XX%, year-over-year $XXX at constant grew approximately in global currency. and Search for XX% million, was which

hires the promotions. $XX.X Search up We the additions the quarter XXX, sequentially. adjusted per consultant worldwide X% assignments which was margin XX.X%. Executive quarter strong production new dedicated number continue X,XXX. an revenue first remained team The fee with Search the consultant to XX total year-over-year XX first million, in up quarter up net Global of which down in million, the year-over-year reaching of new Annualized XX consultants, at XX of and In and adjusted EBITDA expand consultants quarter, end first at EBITDA of year-over-year, consists with a of our opened approximately first XX the search X% to was to was quarter grew Executive worldwide number $X.XX the in and of

second for Now fiscal I'll quarter our call discuss back turn Bob to of to the the outlook XXXX. over

number Great. considered. a were Thanks, of guidance, setting factors Gregg. there we In

and wide uncertainty this the inflation let's a big escalating chain outcomes. landscape all potential revisit First, economic Increasing the that seen the of haven't and to XXXXs, interest range of reset broader rising since mentioned. rates, that like factors supply contributes geopolitical Gary we tensions, disruptions,

the in business nearly new all consolidated that with growth quarter fact first the was consider we Second, of year-over-year, across lines up business.

constant at XX% our June of without seasonally XX% XX% basis and new currency, a in and season. to is grew July then May, At consolidated vacation approximately summer on business without year-over-year the constant currency, business historically monthly decelerated slower, measured RPO year-over-year. beginning X% our August RPO, Now new at in up in which was the

we would peak the sequentially our historical expect difficult of to holds. it if Third, quarter we play, over they to August at is a business. seasonal the repeat, looked and business new we in what And October. to grow were at while of patterns future then know September new high understand last, current state And

and markets or exchange guidance, further we purposes economic changes determining of any assuming So our pandemic-related rates. for worldwide major geopolitical conditions, financial are lockdowns conditions, in foreign new no

broke patterns business have that month monthly above, the September will mid-single par on historical in be sequential quarter, will digits. second from did increase considering the we a in August, we in and of Now we those business October with what new all and new factors assumed be

So we $X.XX our and million to expect per per consolidated revenue $X.XX $X.XX. earnings adjusted to for fiscal from to share range range quarter, range second from GAAP million our and to $XXX to earnings our $XXX to from share fee diluted XXXX diluted $X.XX year

approximately includes accounting. XXXX, our an million from legal fee XX% finance IT ICS ICS, interim provides recent like technology, generated interim year of quarter ICS generated primarily revenue, compliance Now specialties information in acquisition. high-demand of for professional and with addition $XX the calendar the basis services. guidance about and second and In being talent on our

skilled talent uncertainty. begin will and to even backdrop global Now headwinds economic against of in executive of postings moderate, if persist job and closing, to accelerate elevated believe professional the begin we shortages

finding clients workforce transformation their management relevant number a an help more to and partner integrated long-term essential. digitization; a initiatives is retention as employee inclusion. issues, critical is Additionally, than equity other development; talent in revenue ever, realize today, in Accelerated our of talent them that ESG, diversity, including with to and strategy success such and growth complex

positioned content, With helps any have. core to the questions collection one, that have, that we integrated we you their data, the solutions, exceed uniquely to are industry and of people potential. and we an of assets may answer be would With IP, that, organizations glad partner be

Goldman line Instructions] Thank come you. first George ahead. Sachs. will of go Our Please [Operator question the from Tong with

Thanks. Hi. Good morning.

George. Hi,

discussed you – XX% and being to XQ Can EPS fiscal in In assumptions normalized hi, margins guide? normalized included the fiscal your the margin in in range what you’ve past expect within EBITDA XX% range. to you XXXX EBITDA whether that discuss are land

margin. a that the with but that We growth given interim more the we’re with don’t those have higher of trends I would revenue, labor search a it we professional lower quarter, around out a increasing opportunities in at say seeing pursuit but enormous potential marketplace than And RPO. comes that guide and and that

right increasing XX and impact it business that’s we if business the at assume the RPO what about would long-term traction you talked so we now, marketplace, where that’s with basis are the that currently terms had look on getting Interim we in margins. And of least at were a in point to

business Now, has really Interim still RPO a towards the side if runway. on companies optimization even we pivot cost the labor more imbalance, even and successful are and greater there’s particularly if

to those had a we’re with last talked pressure clearly whether it so growth in terms on of depends two be those on longer-term opportunities. quarter And about really But there margins. we capitalize things, our on could able what

George, the second…

Go ahead.

George. ahead, go No,

your up, fiscal guide? margin embedded follow XQ to in so are what assumptions Just

that just about XX%. we and was talked going right in I say it’s the XX% so range to Yes,

XX% on term then and in growth? fee of fiscal currency translate new Okay, should reasonable And business XQ, perfect. basis. XX% business? constant was growth, revenue a follow-up question quarterly And fiscal to medium it on sustainable near year-over-year in for that new growth XQ rate how into a What’s

Well, and CAGR business CAGR of has year life back would point our to our XX% I XX%. cycles XX is is and of full XX is year cycles. been full

has our are performance. the the cycles of So through been pandemic, actual kinds we shutdown of complete Clearly coming levels that different those the out sustainable. saw that not

and actual at constant X%, August in more X% kind July look business and in you line probably so, up X% currency, that’s CAGRs. XX months both was and new – with our And year of those XX that’s and

Got it. Very helpful. Thank you.

Thank you.

Our is from next Blair. question William Tim ahead. with Please go Mulrooney

I afternoon, Yes. morning guess. or Good good

is build read keep the of how in the year-over-year. And number So you like executive engagements of engagements look tight how labor new number we about still it’s it is search, sequentially market, today. hearing tight down and these leadership all relative deceleration search. in But roles. six you’d the to how numbers, given for right three market months say now state the characterize the ago of gap the about skills labor in curious executive articles to recent the I’m for And

we would level we and that professional would terms ago few say not at look, what a saw in around Well, demand on to people. search I look you’re would side, the executive And escalated at opportunity we workers, the the knowledge there. that months see of bigger look then of level executive going

not we now. unit So, probably you our is the above about But the much XX%. fees, but were it’s labor a higher, the inflation. at And no and and When slightly broader take search And taking The I substantially the and labor to look productivity, growth talking XX the go it I’m wage – fees workforce. an there’s are look example, July in our and unit there’s interim, know, is rate today, of you the I’m really participation comes executive professional three count, search. last just landscape August as growth. reflects quarter, workforce years, as first not to you U.S. running, pre-pandemic the X.X there’s think the above imbalance. I average count years which significant back on where

central on demand comes are don’t know demand if to and it labor. focused the is problem when tamping supply is supply – I banks it – as much So so demand. I down clearly

nomads So I towards the think over such big professionals what what and we’re you’re made why is reading search. interim a months and we’ve career last push XX today exactly professional seeing and

on quarter of the in maybe That’s in have some and you $XX Patina professional Bob, last Search would out stay But you basis acquired point we of if this it. But, don’t this don’t I do massive I helpful. the from and know first year. one’s reflected Got being but for believe Professional stronger acquired this there’s the quarter? there, in I if on you number handy, you. have If that. that million professional that in $XX and I that and were performed revenue But maybe about for to Infinity, the in search, an revenue, I did Thank maybe Lucas strip shortage kind quarter organic that million have interim business know. search and think the you how

Yes. we basis, organic would’ve single low seen digit the an of kind The first business Pro on Search quarter. in growth

very Thank much. Okay. you

And strategy. as remember just about at part digital into – opportunities, when a at grow M&A, our business M&A. inorganic, huge we and than organic a talks we And in. and at the look M&A M&A like capital we that view all and to were putting different but questions CAGRs, George’s look as it no Tim, what to even CAGRs XX% it’s investment And so includes that of know look people XX% Gary think about things I is

expect assets a of mean, and there. just a acquisitions is for Should a then So acquired you you to fiscal follow-up or take in M&A still more your integrate pursuing more bit one three environment? this little here these recently as maybe that I’ll you pause appetite this comfortable ask we more I year? what

appetite. we approach, We’re to have capital pursuing a deployment. And a balanced approach an on absolutely systematic do yes,

to we’re it do to shareholders. to to balance We with returns And going that make to continue are going we’re investments, also cautiously going our carefully.

so Thanks Understood. much.

Thank you.

go ahead. Marcon question Our Baird. Mark next with from Please is

on an down let the me mean, be it hiring. you internal we’ve last to I would expand a that be Fed pace you’ve going be So hard been that last be cycles what tempered? bargaining my little to apply like been through to regards also Are you’d Or or given going willing bit cycle of Or to the the The peaking here? stay working was pay Tim’s pace together. that over would kind you months? a is same more on what tamp to to question. – acquisition perspective question first XX with from as demand. multiple looks But you maybe would is Gary, more obviously price

economic and I do certainly very Well, I it’s issue, the context chain real. a labor supply I we’re hope this it. is doubt issue, a But not there’s of No take supply we supply latter. issue see account And hope absolutely but smart. about imbalance a valuation. talent. I And would into think the only

interim. And And is pro high and so see seeing in to the we search that we’ve opportunity alluded what to businesses referrals of levels cross do incredibly we’re on capitalize acquired. Bob here as an on

absolutely consistent, valuation So we’ll economic we’ll context and I of but steady think be mindful we’ll be the levels. be

hires like go we you basis? consulting I or headcount think to thinking executive what lines, areas about on and internal those with regards a in about Along How particularly should forward mean, are search?

Number the increasing the one we we but we cautiously, digital capacity people are on commercial there have. in area, that are sales the

been area for we’ve that pursuing an actively is that months. now several So

to going continue We’re that. to do

and but the about one We’re be is going other. to it, consulting careful clearly that’s

level of So bringing I those viewpoint changed had terms past a – the as in of we our promotions in well year. but we promoting haven’t also of both talent mean, just and record talent. areas,

was Bob. digital in – add business. the Mark, the going to – And is to this the just Great. on I

the bit We We’re on contractors little were also folks. development reliant in maybe a adding product over past.

so resources And shifting we’re those to of in-house. bring more

door the contractor out to leave. when walking knowledge have don’t you a So decides

are – EMEA, challenges that that’s over to of attribute surprisingly there. given it’s been the some side, Great. to? on occurring do executive that you the strong search then with What And regards

Well, look July look, what at EMEA constant and a and said we an August, mean, increased We’ve we when outstanding I kind And on the of globally in have footprint. you both July in got currency great August. with team. line basis, it business a about

fairly The impact around – July So that zero policy based clearly our EMEA. the the only area The Pacific the showed big manufacturing, not had has is that across and region. August. driver been And in tolerance very we XX% It’s and region the the absolutely in on Mark was Asia broad good an saw business tempered it’s to is levels but China weakness, And business driver Asia. certainly new that world, of July August. in of new see. business broader is a of world’s a the China that

say every a level mild margins, which think you last kind you’ve two, of what like XX, flexibility at could this think you were do terms go along around? where we the If into But margins margin not a you [ph] better a how of XX, extraordinary. little recession cycle other lines one, with just we in words, of Yes. time the should the or currently about a keep it done that In have. protection, bit

performance peak-to-peak, at different that’s I cycles, sure. topped previous the a topped for company’s Bob but I’ll let during the mean, details, you point. no, cycles. when these look you’re Yes, trough-to-trough good we’ve answer right. We’ve

good of framework a to a be kind way Bob, that? lay what so would around And

Yes.

operating And have Mark, recession, place, burned if you following our call go the $XX troughed, – great million approximately So back boundaries. the what cash. in we during through in what we we XX months we to when what

we we operating the so pandemic, the were dealing $XXX the at cash. to we and a And maintain our is going through trough, do cash to boundaries generated months neutrality. said, pandemic of we the following what million look with XX about actually took want And we when want flow for

look at better our scenario as And to cash planning, so flow obviously, neutral. now, than do want we’d we

margin that our increased and as EBITDA so done And using operating we’ve is the we’ve boundary. really what

Now million EBITDA a that basis, we’re us, probably on that And flow million, make cash want it we adjusted below in X% would $XXX saying a trailing period. go to $XXX would not XX margin. be would positive

modeled today, double XX%, Now still given is the a cost we’ve out margins, XX place X% be adjusted trailing down today. XX% on no kind for we’re less we margin we’d than and we digit looking in different have basis. given, would if EBITDA structure But couple a business be of EBITDA and scenarios where everything of the low a

Perfect. Thank you.

next line of ahead. comes Marc from question Sidoti. Our Please with go the Riddick

Hey, good everyone. afternoon,

Hey, Marc.

I the that pricing could by what share first may mentioned of RPO – breakout the you do and there. thoughts I anything have have appreciate you that on seeing wanted way, to the of touch any all, dynamic that the regarding various you’re for in segments. And should searching and we saw

It needed clients to room are feel drivers some be operate? would about be maybe there you and bit see. seems there by there bill sort world. if talk around little and what you the sort may about of pricing where sort there and currently, you of of demand what’s given, wondering But though on rates a as to I that’s nice was So how the room

ago, place a protocols in we increase we to Well, And about in out year numbers. certainly ago, put nine that our months the burn is pricing. certainly

regulator And executive search at look so a natural which there’s wage there businesses, around kind professional revolves the search of when inflation. you and

up that. today, since pandemic. In in so our if Certainly led continues. at average no up our been pre you it’s we’ve continue on consulting wage clearly to seen when to see fees our that pressure rates, XX% and And business, have there’s look we’ll that hourly average

we hour. I $XXX about think, were an

of big sequentially, didn’t as see Now we’re we this at $XXX. In quarter, increase. a

something I that. think like we’re around $XXX, $XXX,

is pricing. But for So pandemic see room also landscape. we’re sure around XX% room But the around the continuing us I months. to over next Yes, we there’s the in to don’t few from put we where there to grow? were pre of grow. to that discipline uplift competitive environment cautious have be

bit I to about far something priorities amongst recent much way the as then that targeted differentiation And in the completely among a if of and activity some you’re regard? in you little switching of seen if much their maybe wondering as great. seeing changes you’ve different. Okay, in verticals industry customers way was if of talk over that

emphasis development. which home. business. And do segment change hybrid working do the really That’s are of that companies from learning into our on macro we with career you grow? sort dealing plays of then people? Well, from you so How putting increased code clearly development that’s one. is mentor and But is working the nomads why How professional

of page, would that at the down you expect a just if broadly you saw our in at off certainly to a compared look speaking. screaming you quarter, fourth technology. the take first slight we quarter kind would When as draft, come sequentially, So the industries look

You appreciate. read financial a as particularly and capital you services, in downdraft can we markets around it saw about

things, numbers. the So, in out those two we those saw things pencil

offering. other quarter even On in almost continued seen the year-over-year, quarter industrial of is first It’s sequentially we’ve both the growth strength and XX%, to then fourth saw in we flagship side, our firm. industrial fourth And XX% quarter. XX%, the

very you Great. much. Thank

Thank you.

Securities. next Tobey Please ahead. is go Sommer from question Our with Truist

those What’s over over CAGR to following XX or want start the I on Thanks. CAGR periods? up the years. your years last XX by organic

do and Gregg you have Bob, that?

at the holistically. just the of at our really strategy. look at and such just view We of capital that a look again, we given that is deployment don’t part We growth as way. We that look critical M&A –

Okay.

areas of five of to different aiming on it time, or target what think you’re the of having that some if that’s end maybe look push of does the exposure are focal you What could flesh for? sales, a like you the most years that if sort interim, the in to? amount bones the Within percent you’ll you company, as the a pick a like you up reasonable one, and can put

inorganic out to have make done certainly piece on in math, company's that level. And haven't And Tobey, whatever to least the I strategy and it's be data, back that to when we you as answer almost in make we look see we in don’t our very because when line hold basis. inorganic when we those that cross which of investment, if your would going of it Gregg you that that's we think of gearing wouldn’t an said first thing revenue XX% look strategic XX% be Bob typically The XX%, and we at companies. born was. our me the And I is – XX% probably quite presume hard growth that numbers that on around the XX% come measure business integrated do this referrals surprised an is at but is the to an that's plan, significant. investments is on question, XX%, would to

on that part it’s actually out looking that's But the said; $X that. of be So hard for approach part least the our – business interim as Bob to around The disciplined that do at basis a as Bob long-term billion to us mathematics capital. business. should

we professional is even be that search, again accounting, areas areas, not supply your And do wouldn't do call would see on – is on other and around saying are talking finance HR, key. basis technologists two we could you $X the focal And and – we to chain. a – those I'm do could those We but things, do lot there those and the – about but an two this million, see we not legal, a a run two rate today point of way so billion? broadly could areas. you you so – two $XXX that

five-fold four at approach proven track we part where If and disciplined that strategy. kind part from trying dependent this business not as a only into said capital get on that one be of make growth investments or it of of is you look would a today, is Bob we've the But allocation around, would be around. that it got go-to-market that record Ferry Korn to

maybe Thanks could split give you better sort in uncertain us services how you the a between would versus better businesses you those In well And up-cycle expansion in business, for sell couple of sell examples that uncertain that that the sell services that an of that. times? of in of consulting characterize times? like ones

that uncertain you this the because this of with recall. is than I wild exists. think one – labor different that kind the I don't there's Well, of a in see substantially kind just I time, imbalance environment can big card

a not demand necessarily And so think issue. it's I again,

particularly I think there's around an issue supply supply labor. of

that side I consulting opportunity and go a DE&I. There's for think around There's that's don't where there there around putting ago going digital on revenue we be I demand lot around focus could going a fully effectiveness had That's example, growth the be us think to an So sales years could ESG. development. think to that's for what could professional record emphasis. around Two away. we're interesting of be we away. phenomenal significant and I don't go accelerated just up-cycle. call track a

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you year digital over next might Salesforce that minus We most over about interested a or sale about and to in ago. you going In be year or plus talked pretty what talk two I we're we next a in most you are about the business are Thanks. promising most two? substantial remember or what's year the What talking because – things the had the effectiveness.

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effectiveness, the areas learning and think that longer but I And So term around particularly again, I are something that I the area a hope around we're about. think is And talking and the you term all licensing but to that is digital so so channel endeavor, partners I'll see. those professional license say development or is licensing, the shouldn't it I primarily, at the to, look today, our use company. XX% primarily using business sales you when IP around of

steady you hard historically, world medium good really There's development. another that's quarters, quarter learning another around alone, XX Then sales and XX a half that business. pivot an consistent million around the part United growth developing XX%, million we're top this should of quarters of the couple professionals. a again we're there's XX%, There's it. it and digital A That's like sales tech that are is be next – and XX% those quarter States one in is to So really of technologists. won't is been necessarily part the professional but in on professionals, technologists our that for of of that's of anchored see better it we and in can term, pivoting offerings technologists. upscale at least towards in going our the

in XXX, people, going the the to within than we're pull I investment sales about we're – even that. is end XXX the sales about that and on We ecosystem, now made right piece XXX is, sales hope be we we've this hope final our continued an So that get think commercial I running we're I at there consulting. talking talking people. that around And capability the commercial of have. traction think push about quarter. own more number's business commercial we we're – particularly we're hope that I digital in would

So those successfully. things I talking hope the that are we're about

as the versus sort guidance comparison the the sequential but I could historical flat last I you would the embed increase new just to the normal what and/or normal understand understand a August, of September. in in be? If business ask what's numbers guidance Thanks. question or change revenue it described

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Yes.

digit single and to over I then characterized XX% going on it high to you again be September. October in increase high-single-digit very, think accurately. to pretty sequential basis, Gary. close pretty another over September August a It's close

you much. Thank very

Mr. Thank further there appears no you. are Burnison. It questions,

despite can Okay. the imbalance their to labor pretty the what there taking interest all colleagues read for and you about our Thank we're do and to help shareholders. dramatic and what first we're I that do foremost we an you we you. companies climate, stuff doing. exceed optimistic how to in really can potential. our this about and economic continues be our Thank Thank you believe

you and look for today thank again. Thank forward So to speaking the time you.

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