Korn Ferry (KFY) 7 Aug 232024 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry First Quarter Fiscal Year 2024 Conference Call. At this time, all participants are in a listen-only mode.

Following the prepared remarks, we will conduct a question-and-answer session.

As a reminder, this conference 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.

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

forward-looking such are the to cautioned Although such place believes statements. on based undue expectations the are Company on not reasonable in reliance reflected statements assumptions, investors

desired or of Actual are from future those of results and a periods materially risks expected in number differ beyond may currently the because uncertainties, which Company’s control.

Company’s risks report uncertainties by report relating filed XX, the for XXXX year such quarterly concerning information Company’s for the and XXXX. July and in periodic be the release Company Additional to fiscal this in annual presentation be the and filed the and the can with reports found soon ended the other quarter to including SEC,

comments EBITDA, some EBITDA. today amounts, currency may the financial as constant non-GAAP reference and Also of measures adjusted such

Additional and Relations information is website financial in which Investor including the posted most the the of to in contained financial to presentation comparable are reconciliations GAAP at release call, directly www.kornferry.com. both measure relating the this of concerning Company’s section earnings these measures,

the With ahead, Mr. Mr. that, Burnison. I’ll call Burnison. turn to over Please go

Okay. afternoon, and joining everybody, good Thank Greg, us. you, and thanks for

that portfolio positively shifts, numbers over businesses market tomorrow’s results. going proud placement And second, of has as but it is never shortages, would but a colleagues. to about influence skill the continued to incredibly strategy right into I in digital of how been the proud perm out to mean, meaningful, the and highs, our I I economy, all am, I the post-pandemic softened have Our the you the team when for of get when our think mean, be diversification from performed acquisition point going is want say our demographic I designed. continues absolutely more clearly especially rest consulting our to one. our talent first has globe. demand there’s firm,

Korn Google of only I step the midst two also transitory optimize; cyclical three, period really -- I is bring a going I reset, with and the Ferry, business get we’re consolidate. seen more I interest and in think, think to to that a how a going haven’t two, of Bob’s multi-quarter adapting is almost change world we in work, for innovate; importantly, And going This remarks. that in one, rate his significant not number Earth, strategy: back that much about, bit and an opportunity to seize opportunity in to and environment decades. but three-point more, we as tap little into

we’re to saying, want and the to conclude people just than. would where we’re to to be on the road we be, while be, organizations by more firm enables used I And definitely not certainly where we that

Bob, I’ll to over you. turn it

you’re in Great. morning, Thanks good afternoon on good Gary. calling or from. depending where And

the first from slower seasonably comments as of remain as revenue earnings profitability we’re well quarter our results fee backdrop the macroeconomic and quarter. despite Listen, pleased a stable with I fiscal Gary’s echo the that challenging the as in year sequentially

labor the our in put workforce world pressure strategy, to portfolio with we around transformation, that context, client as year-over-year their results such revenue as contract pleased on are we’ve expected solutions as acquisition. offset employment company to line. moderation an demand a talent companies a relevant demonstration respect We’ve in our line, other back executed in I synergistic and as As interim permanent flat continue core capital human was that integrated are the step placement and quarter top strategy. both In are our clear services environment today, fee well as of downward the our where execute a essentially with I’m that assessment highly built solutions top succession, also seeing successfully

our consolidate. Gary forward, Now optimize, focus speak strategic and innovate, about going you heard

me are going leveraging productivity base. optimize we to with by first. let continue So, And drive start cost to our

employee In FYXX also you that’s XX%. fee and take fact, pandemic, quarter of the compare QX revenue We’ll QX right that if continue of to FYXX, our the before up per is with to our that and our of in referrals. are business regional infrastructure accounts, human capital pursue governments growing economies, driving with with across marquee faster opportunities line economic and and initiatives,

let me innovate. turn Now to

ensuring organizational fit-for-purpose IP the future. at the data We forefront talent be is foreseeable of for our will that and

continue We data. as our are in technologies, and digital monetize as drive emerge client such AI, going our to with new intellectual We’ll greater our proprietary emphasis impact. our to through business, investment continue they and property our to investment increase generative and expansive to leverage

strategically addressable upon larger and Last, cyclical, touch our aligned, I’ll in are to growing consolidate, be efforts markets. continuing faster where investment going focused less on, our

We’re out expanding to going to a And business, our and development, we’ll in consulting. opportunities explore well executive strategic business leadership and as interim focus professional capabilities continue building global professional as leadership in continue to and in outsourcing. on operational our development

take turn Now the overall with highlights. financial that, to Gregg you call who through let some me is over company to the going of

services. currency. in revenue up placement down was from fee services $XX down and was foreign revenue at permanent rates measured acquisitions for In offset flat revenue constant currency, placement, line at year-over-year fee In for down XX% by for was was from was our search Salo, permanent continued measured and X% stable contrast, search, consulting, fee by constant million. our and XX% exchange of up highs for revenue for of $XXX at year-over-year both, talent RPO. ICS for and post-pandemic consulting fee actual the revenue acquisition executive businesses first up global Bob. in at digital business and to professional aided Thanks, growth Fee X% recent for XX% recent revenue constant and revenue By digital, quarter, and interim million, investments moderate our year-over-year currency interim

at X% Consistent business rates most with moderated quarter year-over-year the business RPO, new executive X% professional first Consolidated in first new currency. up up actual search the in revenue, fee in constant placement and search. was and excluding at permanent quarter,

line impacted the of were capacity, fee shift in Consistent year-over-year generating profitability digital. the quarter. EBITDA quarter Adjusted adjusted measured and also first EBITDA and by the development for earnings first profitability recent million Earnings investments product specifically headcount an execution in business, to revenue initiatives moderated first with in fee XX.X%. quarters, $XX in in was margin by and the preserve mix of quarter with and

be implemented Additionally, XX adjusted sequentially, by in that basis-point the EBITDA two quarters. first the margin, was control measures essentially should noted in also flat cost last over primarily it improvement driven quarter with a

approximately adjusted earnings earnings Adjusted diluted exclude per well year-over-year. our our reduction costs, share $X.XX XX% of fully related in incremental as million Finally, estate acquisition per share the per an real primarily in first fully or and as share restructuring, acquisitions, diluted $X.XX or were quarter down $X to footprint. $X.XX, integration our

million expenditures, $XXX cash for deployed first $X position million for first cash, quarter for was million $X and quarter, million. $XX at million the repurchases, Our capital In million for the of debt $X of share we end the $XX service. dividends, investable

Now, more in over detail. our call Tiffany turn segments the to review operating to

for the year-over-year revenue million, sale increase solutions was quarter. investing was global Gregg. assessment tools Digital, the with Digital with in fee XX% to first and a X% in continued of currency. up Starting The on strategy the constant and was license development. license actual longer approximately quarter the was $XX from fee which to subscription industry term subscription $XX again fee focus revenue Thanks, our execution as first which quarter at and leadership technology also sales, increase and move was primarily revenue KF of at point the an due to began in million,

$XX new $XX million for with Global total the sales. KF license was of subscription or XX% tied Digital to and business million

$XXX succession, For currency. XX% which and at fee was X% in both approximately increased growth strongest revenue the in year-over-year. quarter up which consulting, was was million, and assessment actual revenue constant Fee first

an hourly bill to close hour, ago. continued up rates year is Average $XXX from one over now hour to an $XX climb, which just

time the search year, year-over-year constant Latin versus last Total period. EMEA with business fee quarter at The XX% currency double-digit in for the quarter in new or North in and aided by and interim million, X% currency by over first first double-digit professional million in and increased America same year current at driven $XXX business up global Additionally, was America. $XX up the growth strength constant revenue consulting acquisitions. the XX% was

from million prior the fee acquisitions. enough segment. Breaking primarily more in to driven interim quarter revenue by of down the quarter, the $XX the portion same permanent offset million was placement business services Interim of recent to than grew in the the moderation $XX in the year, growth

million to Permanent placement at currency. fee $XX actual and year-over-year, constant million down XX% revenue at down declined by $XX XX%

Moving quarter totaled the $XX year-over-year begin $XXX and million, by positioned normalized at million, transitory new down the recruitment was for XX% Fee hiring approximately the for down fee converting under end and We backlog. of first XX% to more impacted the total more quarter constant revenue. the to currency. Fee $XX believe well recent see was approximately when process moderation $XX on volume revenue larger, RPO and benefit the was business at to contract outsourcing, a in as wins million the hiring million. and revenue revenue is which base in was base slowdown and returns or in levels

new our win pipeline the IP recruiting offering business, at which includes upon to Although business RPO differentiated uses unique that in -- that quarterly new strong draws Nimble, can data-driven the new times, our data, choppy talent marketplace, as expertise. and the technology, the continues management be remains service

followed $XXX during executive fee as at year-over-year a XX% and first revenue Demand for last rates actual North America, for in recovery and of pandemic XX% year. the at APAC. was of EMEA was the currency notably quarter by quarter quarter to business search high growth and in expected, to constant first the global in constant decline America currency. new down the and year-over-year search Global million, Latin first moderate, at the enjoyed continued executive in experienced most Finally, compared

to outlook the for ‘XX. second I call discuss over the our to of quarter back will Bob now fiscal turn

Great. Thanks, Tiffany.

conditions, our million, adjusted XX.X% we EBITDA or ‘XX financial to to Now, and $X.X. exchange from and range the assuming geopolitical economic earnings markets, fee foreign conditions, to XX%, be worldwide $X.XX margin rates, changes per fiscal no to expect million to revenue major range our from of second $XXX consolidated lockdowns quarter pandemic-related to adjusted in new diluted $XXX share in further

earnings expect to to we our share per diluted Finally, $X.XX. GAAP $X.XX from range

business their amassed property, unique solve of we really that aligned and a science capital have closing, issues. collection human helping and in to intellectual Now, content data, is companies

are assets, these an synergistic really helping we partner that of their potential well-positioned touch continue or clients, With the with come without through every every day. to aspect which to build of with her solved company help we been No ever long-term working employee’s where needs of that’s them business strategies continue employees. and growth. people. the talent individuals in, exactly balance problem employer, and with the we top issue will to We and or line drive exceed his has with growth involvement with engagement Also, people, assets, organizations

to answer any would have. may questions we that, be glad you With

comes Your [Operator from from first of question Goldman Tong the Sachs. line George Instructions]

and provide data beyond particularly and your past an you search In traction provided marquee on interim with include across cross-selling regional business you’ve cross-selling lines interim, Can various your update within accounts? on the segments.

Then to one, cross-referral into We to look cross-referrals accounts are regional at into overall marquee find see continues the or in quarter the global higher referrals, XX%. of you digital, about you for almost number portfolio. search any that into be platform, when find they’re pro very, XX% sure. the and good. It very be cross you typically XX% it’s for RPO, percentage so. would When to XX% And the the

for the continues is to clients. to that talk be that have huge more So, working, overall, reasons firm. we to to And demonstrate stretch the opportunity a that it continues

then XX% to your new seeing would year-over-year the talk $XX to within a Got when million trends you quarter. and bit first are helpful. it. RPO RPO, little new you within That’s business you approximately about fiscal expect improve? Can business in fell And what business,

almost this it overnight. the broader think, happening a consider would what is long reset one demand ago, I in really when given labor had drastic wasn’t to be Then ago years I that’s call cyclical had of uplift companies what and multi-quarter hoarding that trends you what’s Well, to incredible pretty happening take COVID. I with in measures X.X

the And really great positions talent. And action the CEOs many to resignation mad switching dash XX% recruit had actually that was And I workforce. been their the have You reluctant of salary recruiters. resignation. and a one you getting jobs, think for great XX%, bumps, drastic during people saw on to take was hardest there

I XXth And at -- so, this which just typically don’t that in-sourcing, it earnings HR call, hoarding. staffs. companies I seen, think cycle. And now I robust built what I see is you’re call And is in my up fairly you haven’t think that is labor seeing I and this would a point something

business. And at very, so, new lumpy. does our that’s very look And when tend business, RPO to you definitely impacted it be

$XX did business years, $XXX we’ve each the last in quarter the maybe $XXX years. here. be the I that substantially or quarter, like number expect would that In second we million so new higher, of million. of in $XXX to those about will So, couple done million million first

I to would the is good. looks impact And having would again million, million? in labor No business it. new year? expect clearly, Yes, -- backlog on a But wouldn’t. look, and RPO $XXX very million $XXX be absolutely that’s it I about be hoarding No, $XXX pipeline, business. good. an Now, reasonable estimate. that as I this said, question but think But, looks The Tiffany very, in-sourcing

Gary, Bob. is Hey And this George, Bob. this

Just in to little weigh a bit.

we see always without business, because business. you If it do of talk that when notice, new about choppiness we that the we in RPO

new is up down. that or quarter So, and in say really isolation look at business you one can’t

I think some to you time at look over it horizon. have

back and million $XXX like $XXX was $XX last it fact, in in go in you million in in million million year it In it if FYXX, was QX; QX. $XXX was QX; QX;

in you businesses. don’t you the other So, that do perhaps in smooth linear the see sort RPO of pattern

and in the as mind good the So, RPO of you about just in you we to that business. new about as said, pipeline keep have very strength And that pipeline. very, Gary think feel the

Your line comes the Please next go from Mark Baird. question from Marcon of ahead.

little this for to talked a rates. I reset you particularly Gary, few bit was the a used and higher lasting wondering, longer about quarters interest getting and

the that labor those. you hoarding from that advantage that thinking mentioned other thinking perspective? And you’re to are factors be about what some might from What of take of observing, about? you you Aside able you are

are consulting companies advantage somewhat to our business that positioned think, ours. Well, perfectly a to continue I I think take mirrors strategy -- is execute, of going to

I think to you have optimize what you have.

in have innovate some You new look have at to or I and you they’re wins optimizing to consolidate. And the absolutely companies when consulting restructuring. reorganizing business, the around of and

the interest at of We shrink than quarters we’ve we’re haven’t are absolutely seen to of that of would they the has to longer it. governments all -- thought this their way mean, the had, really. of of can they businesses, consumer starting that raise have that. higher been States, their their savings what a -- the the organizational structure, impact -- and what the companies bit ago. higher much. the people, you I pricing and consulting so And and little cost particularly turning rates, six on least organizations think us And United lasted how I people packaging rethink But talent, of seen in that’s carry level a see, can only

platform great continue have and well opportunity a the that’s within we to think drive I to as So, for use change digital us to that organizations.

long is you sense some some I business this accounts, like they’re for talking lot about high-level I last? mean, to your how to of what a is when of the discussions. mean I going thinking how your leaders And Great. of at mean, have you’re Marquee

Well, it varies.

low more others. and -- optimistic over and you you robust, And are of pessimistic in a is out a think to, they depend world I reset just adapt three next does being have see to quarters. used decades, That where things been geography norm. cheap that reality being to companies the what And think, of it’s are to look, where I don’t are world this really to summarizes it back you to just is than much Some And reset. very, But parts there’s the I interest money changing few more others going two historical and step the all has that have mood. the more over rates. environment. and very going

for And look, I economies going and Now, invest that work a at for business that And concept around the opportunity in $X you that’s and multi-quarter. business longer real side, chain, market, demographic to think consulting force the not challenges and around business skill us grown. but think that that that’s only really flexibility supply and for that’s I finance for western the that this that out Korn hasn’t to for billion to wanting the have. technologists, a living positive most extraordinarily term, us. think longer market is Ferry. the we’re on and look our look be And say interim And accounting, in, if I positions, labor should people and business. contribute, personally big particularly we’re I continue what that there’s

kind environment I -- now, for this disaster, think think this we’re I bit we’re some I in think that little a it’s barring here. in that of

What the that of Salo to the was with Agreed. business, the are just that organic seeing growth you organic terms Gary, you components with interim the different total bought? to us within business? growth revenue regards in and gave What numbers. you’ve regard

business, is in new down business not go that look new dollars new would in sales, me okay? take four or X% take same-store interim so, actual down X%. I’ll -- say trailing be about just let just would revenue. -- Yes. the at business, months When So I trailing to let’s I

down is X%. organic about sales same-store So,

pretty considering holding a Actually Is it it has environment. bit little month worse steady? good the by getting been or

No, exactly I executive by mean it’s kind about search XX%. take new business. no, it’s no. the trailing four like the business, This is I consulting, months. the Yes. up steady. No, months, of same. And It’s and trailing way, revenue. XX%, it’s not four is XX% down

So, out. is bearing the absolutely strategy

talk bit about… Can a Great. you little

than to what’s IT in executive I more that you or we’re to similar when The look Mark. that add interim at thing feeling only businesses, business. would vertical industry the the the -- in in the areas F&A Hey, happening in in is the

little But the IT Bob? softer, a bit is

area feeling predominant the where we’re the That’s that’s decline. Yes.

Yes. with resilient. a constant lots of resilience EMEA, And fairly UK issues. What’s then, the having the also into reports in on decline a search EMEA portion margins executive then The despite recession. regards the in that? basis. can significantly because margins, to would on currency was of explain Germany resilient? There’s the business drill about you is going you being bit that revenue down driving And like What little did relatively

Bob was are sight quite extraordinarily that probably I’ll not well, case. comment are margins. let parts of other then growing you EMEA, time. parts that’s on that quite because there you of as guess EMEA good country have there that There I line could do are the into the for mentioned I some such the

think number we’ve our be out have in we’ve think account one, to -- working made I and think exactly and that has global working positioned regional that it’s certainly turned look that right. the the EMEA. And to strategy. there it’s is I And I I how investment and marquee at globally portfolio think, you

have world-class cross-referral people. are very, We very The rates healthy.

But size of and you this labor at demographic not continues -- look I not step be, more be look, look, than are There is to you there challenged to it’s labor -- does grown. There shortages, couple have and markets of think all going there I And back shortages, right. you’re continues are despite combination a those. certainly hoarding. at skill all. too. of talked to about, what and say, But look be there’s again, you fit one it’s mean, that just not a I others. countries So,

I’d So, margins? growth. then, the to those the point And EMEA factors on for Bob,

and at past side, rebalancing, And of very one say, a as is opportunities, do Mark, that in right? talked are readjusting higher couple bit the of you is levels we’ve staffing the cost aware, on of across the nowadays margin the things the any things workforce, workforce And I’m rebalancing have of about a would taking where is sure over we where when it the than look globe. the calls doing is our one so, doing accordingly. we’re Europe, sort the of capacity do rest you’re the of I consistently

at of search going there us the in business through output what workforce is you’re rebalancing? kind from So the Europe looking with and seeing the

and environment it this you shaping for environment to that think when up? are it. get what of think the about if Got occur normal I like this environment Great. think projecting and but thinking little the know in you’re how we’re quarter up or of the -- things -- of you end range if about a this or the that downside basing, sense -- don’t worse will that the could is lasting get seasonality, bottom towards like the or there’s for then, outside based kind bit longer, on just and we’re And Bob, for trying think more while do end a you a could if that when Gary think you for you you current about feel do margins

-- a that’s very look, Mark, Well, that’s question. difficult

go the huge guess. in to they’re now demographic That to I world’s of to another There And there’s to this is have shortages. was East, -- the a really quarters think Middle in in another out is big The how long that are you reset variables optimize this happening, be to are predict. every those adjust person mean, on mean, new and is manufacturing. the for we’re to XX, for to some in that eye-opening. going and going wildcard. hard that’s oil a and big definitely companies with cutting baseline tremendous transform production my respect is I that one. over China impact United term one huge In I to EMEA mean, is try reality. is it’s a the today, I what kind person war that’s third to wildcard. only Ukraine whereas energy find is X:X. war there’s of I that working, reorganize you’d States

-- so, huge that a at and really plateau are search And you it’s certainly appear this not we’ve look that have about going pro it those last running only that’s done I And wildcards. say and search on would digital go huge well, few executive around and got are months, the if would basis. And opportunity interim consulting away. very to

Your of next ahead. Please question Trevor comes from go the Romeo. line

can so much you for having some connection hear I’ve Hi. Hopefully, the taking been me. issues. Thanks questions.

I kind But already. ask of wondering down apologize if for segment. I your -- just any you break on I the to this guidance, if expectations missed I maybe of was wanted each kind about So of could

in would seasonality sequentially of an QX. normal your indicate think I uptick kind

further if seasonal any off be So just normal the wondering patterns maybe segments the of would others. than

Bob, that. do I’ll let you

Sure.

So I Trevor, search indicated, perm the sort seeing and at this of exec search placement as pro we’re Gary think, point. plateauing

think quarter for each flattish sequential guidance, basis thinking So, as a from we those kind we’re of about businesses. the of about

talking slightly up sequentially quarter. On that for up the looking slightly an normally first we’re from QX us, QX. up being Same as digital, thing the is consulting again, with from I’m at side, from and I -- up think quarter

the as what’s a to business consulting And on up we a interim with and little with, as plateauing, down slightly perm the then, going side, down up maybe portion vertical. look interim little the a then midpoint bit suggest well we’re flat bit, the when would flat a digital of again, of at being IT it the think being guidance, But you bit. on about bit that as placement kind that

maybe there the Thanks. solid you then the consulting great. if Okay, about and consulting, within on in performance areas nice was the wondering to reception of among each kind it business and trends. kind segment, positive talk clients? And what’s the I’m just quarter of new the the see some of driving could just helpful. business was performance That

the I the here part clearly adapt it, definitely that a infrastructure the that’s having whether one, I are driving act think governments, terms that’s in companies in this the we’ve of think reset that I’ve number That’s the a talked got it’s engagements of it’s United we -- consulting -- to big environment megatrend in see. whether about. States, it’s to

and consulting seeing not actually entire of side. integrated more more just We’re engagements, across assessment succession, solution but the

XXX opportunity one monetize and us think well. of XX,XXX around opportunity to an enormous world, to robust we The benefits, companies. consulting data, people. both as and on on we’ve digital That’s And and for IP, data just and is the both assessments monetize I That’s an done have have sure. opportunity million so million another for continue have out this the we people data consulting rewards, compensation assessment digital. that that have, we around the XX to that we comped

Your go comes from ahead. Securities. Please from of line the Truist Tobey next question Sommer

for did and year, your predominantly fall interim. interim, we’re responses wanted the you is this declining Is to at I having sort that on of of Thanks. dig point, year-over-year or in it sequentially into there is that said weakness what declines that IT one still earlier basis? on and

Bob. it. that you to I we that there’s large -- of Yes. the on the that had was defined particularly One a that had life decline side. would a think Tobey, contract a see well, it’s things couple I say interim

get of a I And of we absolutely to this because point. -- the and at the the on project expect say to that past once away. as QX kind concluded well. seeing on kind level sequentially, IT And of little of it terms decelerating activity bit sequential side, caused decline is so the we’re would what would say, that today, everything we I based went the of in would plateau that the sort we’re seeing QX

market normalization just reset. a bit a the I this and if on in on as been this of landing And But kind this sort change in discussed the other slowdowns side. I by labor unemployment side, the significantly? Thanks. tales of of haven’t we the we, have doesn’t we -- could Okay. a had What sort a rise had on we’ve rapid more. negative an classic all stick little a here, more call, of look think what soft like couple recession really U.S. it is followed the and can of growth. growth Prior economy

depends and we well, first actual all numbers. inorganic. XX%, me go I can XX%, do Ferry’s our what both That’s in. correct But on to, Gregg look back Korn on what’s XX-year probably and it What Well, and -- XX XX% like? think CAGR? are CAGRs organic -- I would okay, these And

So organization any you, reasons reason even I done okay, ago. one, to believe number what this there than have years say going that historically? think why better positioned forward? of I there’s say, today And host is whole a is to was And XX it think in this has company

I you have that as think baseline. So to at of look kind a

-- we’ve there. span that’s And us, labor. million of that a business And have got of a new flexibility in going companies people you then And go new from market want we And life. new relatively you’ve flexible out employ kind a around -- $XXX a new XX, business. a months, And created in $XXX for that XX million, business. to want the that certainly their

easily multibillion is -- there So, I $X I business market The opportunity consulting mean, is be dollars. the that could think billion.

referrals cross go-to-market account drive We’ve XX%. We’ve we that’s a demonstrated regional got at can global strategy XX%, that XX%. We’ve got marquee integrated strategy. an

truth the States it’s concept the experience -- look I that’s that really and United honestly. of people tremendously several modest. And efficient. and you points Markets labor I fairly to hoarding, for labor last a do shortages. think reason. of to just absolutely the moved the to the baseline labor force. see going are be out market over years. market hasn’t more, everything fairly, it’s to is the that think And further, is late And huge you mean, don’t entering a continue going I number labor So,

very at look monetize we around find $XX ability is business continue profitable. for all to It’s million and our solutions. incredibly to us. $XX across IP million. And that -- embed that of important It’s The to to it’s have IP $XX still scalable. our incredibly And ways million, today is

so, how at would And organization. this I look that’s

be. I think of the at it’s what think it’s it can -- beginning I really

Okay. And I this struggled something with. is

use As part there. idea kind the if among to market, available, the your bill tight be to the target, that up of us TAM those going as I able have that. on does increase addressable like? you And a that and that associated out and to at $X you business highest those we of market focus continue readily billion, the sizes help could But but hold with are established as you’re the and aren’t rates grow a of to in look what you’re to total the or to interim maybe know IT, numbers F&A look might going

sure. for I art to definitely to -- it’s try for triangulate that’s Well, definitely to that. more mean, it is sure work

stick think to do we getting think that market. But need hard I end to that very, of do I exact upper the is to do. percentage very

global I most the have synergy for regional think ability our and and ability accounts. we the to referrals marquee that’s cross feed into the revenue where and

be, We XX%, firm. the Korn one, that total Ferry for look development addressable today, of $XXX learning, that’s for big XX%, would $XXX at market two around number of training, billion, at Ferry, the XX% pieces probably And Korn the billion.

that undersized a be. develop over We X year. completely million I what think in can professionals we’re

think a opportunity. I that’s big

referred that The of other big would part be to market staffing. as generally what’s

that. end of at high to we I need think, would stick very, very the

I you I percentage if I. sure. the the for of Korn know relatively But still of think small So a $XXX than just rough you that end is better be market, that addressable would I think high billion. market Ferry that numbers, for $X market billion billion, mean, mean $XXX the

But but down. enjoy We we -- get and at to the -- the end. Tobey, just I we we revenue high -- stick have we don’t us going revenue not see uplift. the synergy don’t do that

HR. our you it’s and And interim that So, to look at technology, view when chain predominantly with States. and United finance now supply the accounting, in business today, is stick operations,

sure. and to question, have really the other should need places clearly one good mindful there. would and very for you playing And seriously, Korn where It’s insight, to that where of looking implication we that so, world say and good opportunity. question a But be pretty it’s also be in consider Ferry would we’re there’s at we certainly the

sort any could impacting, business aspects impacting think do the about sneak Thank trend recruiting, you do high or I your evolve? How And it your If it you one. to of -- there in-sourcing on comment may to RPO. evidence last in And you is reaction one other resignation, is in-sourcing like I’d the you. market? of the a expand will an that of think and there great is --

when it’s think talent, really think for hardest organizations into I resignation, great within we’re -- was the great And recruit companies. to were -- this mad there seeing people where it rush, that really RPO. No, recruiters this dash in I and this do

stories I the no -- rather organizations downsizing, the growth particularly down area, on RPO it for them, in pick but technology there’s back. what’s seen about is companies. been up that think than not clearly think other filling demand than -- scale. that there that landscape. technology staffed And reduced the that HR You’ve have for an change to reduced I in I’m companies sure, And they’re pulled And really And -- for clearly example, taking rather that’s as internally. sourcing, happening. and in reduced that, capacity, And example, and

new years, as -- million we’ve of earlier, done the I last I business. $XXX so, of And said couple

million. year? I $XXX it’s out, expect $XXX this $XXX pointed would But Bob million? wouldn’t No, expect quarter-to-quarter. lumpy $XXX Would As I very I Yes, very, million expect million. expect I’d

questions. are there appears it further Burnison, Mr. no And

to to time. we few the again. Bye-bye. forward thanks for Everybody, look thanks the days. you taking next Greg. speaking And And Okay, over

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