Korn Ferry (KFY) 5 Dec 242025 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry Second Quarter Fiscal Year 2025 Conference Call. [Operator Instructions].

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.

Before I turn the call over to your host, Mr. first cautionary me to let Burnison, read statement a investors. Gary within today, made and those statements the in of statements Reform such Securities goals meaning Litigation Private the forward-looking plans Certain XXXX. performance, call as Act of future relating constitute the to based to the are place on statements. believes undue forward-looking company investors assumptions, although expectations reflected reliance reasonable -- such are in the statements on cautioned not such the future periods control. or may differ of those which from uncertainties, expected of company's in materially desired currently are because results number the and risks Actual beyond

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

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

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

of business consecutive and over the in results get say outstanding. for the sequentially Thank would EBITDA Okay. quarter to was has XX% sixth us been evident the and our more profitability joining margin overall, our Thank and again diversification into over margin screenings. Earnings everybody. seasoned team you, you improvement and Good of execution the going profitability the increased Leah. The is detail. our is year-over-year quarter. afternoon, -- I in But

investments on proprietary people talent made talent have million XX,XXX enables And last the we data example, consulting. organizations. quarters, business, at and assessments we've million invest and in XX and IP their data performance continue rewards to trends that performance Stability productize improving also profiles, several organizational for our including covering over we to business digital And scale. the maximize significant steady clients new of acquisition assets $XXX to our XX,XXX our in success -- all

part highly clients in data, all HR And reflects was talent that software investment suite allowing solutions which our launched their Ferry in subscription a talent in the our reimagining differentiated the new talent our to data-driven power and decades of of proprietary of intelligence Korn expertise, our integrated reward invest IP developing expand assessment commitment we our management products. and to and quarter to agreements platform, brings via decisions. data, The together license and development capabilities, our insights suite,

approach more America. parts is the that market actually to with and solutions. connected organization, pivotal made our presence I'm move And for about a EMEA impactful excited our The professional offerings expands International, investment interim which we in quarter Trilogy substantially really also and of North all stronger an

at our large focus our addressable and regional operates digital for almost portfolio We're of forefront That of to lines market focus, offerings. continuing and at in a of all With its XX% marquee our marketing the strategy. us. Trilogy represents X on technology our also change account of service use and least

be and operate the begins our And to enable ] organization, and actualize to with strategy organizations additional talent also while own to the people it's develop finally, with [ And colleagues finally, we at levels, than. high more our Korrn attract Ferry, why. the performance for journey global for why's And who continue to strategy. people any required

take have Bob, little we'd more happy bit detail and Gregg to them Tiffany, obviously, by today here, be get then questions. a joined and I'm I'll into your

Bob, over to you.

morning. good Gary. Thanks, afternoon, Great. Good

with pleased the we're second quarter said, our FY Gary of results for 'XX. As

to unique in and managing our uncertainty, capitalizing business successfully X focusing delivering for what continue can execute growth operating sets we consecutive our now business on on control improvements has carefully and to our of we've greater We investment profitability cost continued period this quarters. through guide In positioned going discipline which solution our productivity, with for while capacity forward. strategic plan, and much short,

to and our XXX up bill remained and now rates X margin productivity have improve. as said, has I for As EBITDA points employee is year-over-year adjusted increased basis consecutive continues strong quarters

by at Our $XXX bill XX%, interim consulting was rate year-over-year an almost and our bill rates steady hour. grew

pre-pandemic Our now XX% overall levels. fee is productivity, as measured revenue per higher employee by than

trends of sequentially. about of stability. growth all second was quarter quarter than up or showing line growth lines Consolidated new in sequential with year-over-year, signs but consolidated top also growth show continue business improvement second $XXX the and X% million revenue with improved business early X% less down to Our fee of

Executive Search for XX% up and digital the respectively. year-over-year, business New in second and X% were strong quarter,

capital shares. dividend per effectively us. of shareholders. to addition, we $XX It's priority or of the repurchased in XXX,XXX and includes And a In we it continue to quarter, a share. capital paid of stock second about deploy We also for return $X.XX million a quarterly

remain the capturing that investing Gary growth we we of confident that while can investments referred maintain well Now level in at capital both current additions to. as consultant our as future profitability targeted

take us some the highlights. return financial company call can who overall me through Gregg, back to the let of over Now

year-over-year, second but Okay. business revenue the in consulting down was by in By business, of sequentially, up Thanks, part at new driven fee fiscal million. strong second of X% X% was stabilizing Bob. revenue down by $XXX Consolidated digital flat down flat year-over-year sequentially, fee was line year-over-year, 'XX X% X% sequentially quarter. but in and quarter while the

talent in in and line essentially year-over-year. permanent continued to the industry sequentially show of flat quarter, flat. search second second fee Executive with interim professional trends. X% challenging Market was revenue while year-over-year placement down in our stability at demand professional solutions essentially overall placement the quarter. stabilized was remain Search services acquisition year-over-year, for RPO permanent signs Our revenue X% fee grew

in in quarter. Interim second was fee Consolidated growth year-over-year, XX% quarter but second down sequentially. approximately flat the the trends new business revenue improved

was business first the down in quarter of compared X% year-over-year to down second new in X% quarter RPO, Excluding fiscal the 'XX. year-over-year only

quarter, was New quarter business down business by were up down year-over-year down X% strongest year-over-year the was of 'XX, and and respectively. year-over-year in from for compared and the which by down search XX% X% interim the was line search, improving year-over-year mixed Consulting digital business XX% fiscal of first first and X%, and executive growth in business year-over-year of stable while professional to new fiscal XX% second in quarter new 'XX.

trends the second business permanent for growth interim stable Like than quarter solutions for search both were placement, sequentially. professional fee new in measured revenue, better year-over-year with

million share diluted business and and business. Consolidated to XX% share quarter GAAP EBITDA to RPO were with adjusted renewals by in second fully grew of $XX all or awards, New the were quarter $XX per $X.XX the assignments. the year-over-year. profitability for in million second the of Adjusted XX.X%. improving $X.XX by $X.XX, in quarter second staff strong of EBITDA consultant disciplined second the grow with per for measured and of new million or adjusted consecutive margin both cost up diluted earnings sixth earnings was for lines in Fully XX% year-over-year, extensions second management $XXX quarter. which includes across quarter, greater continued logo and driven Earnings $XX and the quarter productivity new million execution

$XXX Our fiscal or of to million $XX cash using to was was at in in cash our the million million 'XX, quarter position $X million and operating of of over deployed investable the which dividends XXX,XXX detail. quarter $XXX year-over-year. Through shareholders the expenditures, turn we capital up second million of end call end million, debt review segments returning $XX $XX the in more second investing $XX repurchasing to million XX% shares. That back million service and for I'll approximately Tiffany $XX the

Digital, revenue in XX% KF was million, Thanks, was fee up Craig. license $XX second X% second was million X% Digital was the the year-over-year fee The quarter of quarter, which in the subscription X% and for $XX Starting and accounted approximately but for up revenue fee revenue year-over-year, down sequentially. quarter. which with

we with The for subscription New coming business at was KF XX% which pipeline $XXX as XX% Digital digital million fee revenue remains sequential the healthy also year. was fiscal in margin licenses. adjusted driven of about cost from was year-over-year $XX and up for and half XX.X%, the overall strong strong head EBITDA disciplined million, by Digital to growth management. second the into or quarter, growing

greater the in year-over-year fee by second contracts quarter, average revenue consulting, and flat million, was was rate the longer, our backlog which mix a due per slower $XXX $X assignment bill million-plus delivery Consulting's X% of of down consulting $XX primarily growing basis overall was sequentially, million was the backlog XX.X%, $XXX by and disciplined X% in to $XXX and For our quarter hour Total productivity and stable sequential. fee and larger points year-over-year remained cost which driven clients. quarter up in in second search bill and margin XXX interim sequentially XX% million, EBITDA quarter professional for rate, down the execution management. was increased consultant to or staff for year-over-year. Adjusted flat revenue driven year-over-year and second higher

for XX% million to for in sequentially. year-over-year, for increased X% revenue the XX% million Consultant $XX or $XXX,XXX permanent productivity flat professional placement industry, up in flat trends quarter was the with also but XX% second the fee down with second and quarter, search search line continued stabilize to quarter annualized professional measured the $XX contracting fee was essentially Fee in but year-over-year. broader year-over-year, which Interim revenue revenue sequentially. to was second

and rate the from driven of part management. up Despite margin Professional being to second sequentially by XX.X% bill of ago per ecosystem. increased Adjusted both hour, primarily interim for Korn X year demand, interim's added in improved the $XXX reflective EBITDA is is and quarter Ferry value Search of year-over-year and slowdown disciplined broader average the to cost the industry in which XX%

Total stable revenue process outsourcing. $XX year-over-year million, to quarters. at within be for approximately and second second the contract at remained which Moving end on under of recognized or to million the flat sequential. in quarter was quarter XX% million, $XXX RPO next quarter the the X Fee with $XXX revenue was recruitment

the quarter, business second of return disciplined and In to by cost million greater The XX.X% new improved a to form in again coming the the of with in both we the in clients. management. EBITDA productivity saw execution adjusted staff driven new quarter, RPO experience for second historical $XXX margin XX%

flat X% EBITDA XX%, for Search X% was global X% and second essentially XX% margin year-over-year respectively, revenue Search steady at number consultant annualized. $XX.XX year-over-year while and up increased and and $XXX per of fee to the million, Finally, EBITDA materially, Executive assignments in quarter Executive were year-over-year. sequential. sequentially Adjusted productivity up million up $X.X by consultant adjusted remained both The quarter new

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

Great. Thanks, Tiffany.

line with all the in the the last weak Over in been year, having normal of with fiscal the X% you consultants seasonally November than reflects for within trends days this have several choppy quarterly in most new guidance the Exiting year-end October. seen quarters, clients quarter. stabilizing. given was third, billing would is that was middle And year-over-year despite and business a of business see little quarter month new our expectations. entering overall the are and essentially year. second week, the fewer December trends but days have the seasonality. In working fewer our we our up a our month-to-month holidays

and conditions, geopolitical the foreign to revenue from worldwide in conditions, of to economic changes markets fiscal exchange range rates, 'XX quarter further fee in $XXX we million financial $XXX million. no third expect Assuming

margin adjusted $X.XX. $X.XX to remain from to adjusted approximately our diluted consolidated range and Our per XX.X% earnings to to share XX.X%, EBITDA

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

tremendously we're the 'XX. half proud fiscal we've closing, accomplished what first In of for of

many us, still we have in environment. operating current the contingencies election U.S. behind the While presidential there are

I As is deal manage to will uncertainties to we and with proficiently in started, what continue our continue these control.

fit fit services unique the war continued Our for for consultancy, leading solutions forward. purpose for best makes positioning for unique talent, helping solutions success capital portfolio companies us us organizational human the and built science-backed and on navigate our of organization going the

And be to I I always I'll my remarks, at conclude best game, very come. the say, and to is we're long believe beginning with ball our of is truly going normal a yet as what

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

for the Blair. One to we And Romeo Trevor please with Instructions]. moment go first William [Operator question.

Trevor for This is [ Melissa on ] McMann Romeo today.

third you're I segment decline you revenue in that expectations but color typically the that the for see in how are guidance to get acquisition. Now And much Trilogy by trends be third it'd from quarter, guidance know a for revenue the including quarter. in any great on seasonal just more your additionally, assuming you

New as the million think addressable be way including for you're quarter, particularly holidays $XX look the I sure. revenue consulting we as Chinese the quarter which think and see going markets, X interim we I get short the X deepen $XX to third the larger into think Year, this Well, that there's to for into to cyclicality probably and the seasonality, do in translates we quarter. pointed out, we're fall, going impact million, days, Bob probably at

So guidance. that's reflected in our

think and the quarter, second that's last interim we're what the And X% X%. it in or we businesses. would you and and the couple additional the the when in the going third you look down see guidance years, consulting quarter, reflecting we in lose the at that particularly And reflects would of to between we're days be clearly

think quarter like year. And maybe in XX USD will of and something terms that quarter. that, brings Trilogy, In million, this about excited we it million, for we'll we're contribute the really that for the see USD what XX it

a Great. and the I area. it'd be that, talk maybe And Europe. revenue just And business more could that in still you interim interim you're piggyback color. acquisition you great about in off confidence bit the of invest Trilogy appreciate trend opportunity gave that seeing of the kind see if just that when in challenging really you to for a of what to then

in But long it's been fire, a some mean very has it, cycle. history. last for, seen temp cut where market months. point, slow declining slow turn. penetration long, rate a we're mean been have I going you'd back this quite a it's Yes, haven't to something time, that mean I for been has you seen hire to XX X for a workers have the sure. unusual has been -- labor could ordinarily, at And unusual Well, years. this temporary recession. it's call on and to I the that's been cycle over companies we

and with Having earnings of. don't that market Ferry we've presence think continued market. us, And and a to And the TAP, in about it said gives a which Korn is highly for brand it what structural the that, I is it's shown large we synergistic do change it. addressable there's a can us this in of didn't addressable And have a a large And piece EMEA to market. speak EMEA. to arguably trajectory. largest is we interim Trilogy really foundation that is

use to for long could we we term. years do that that caliber the and around people of looking been we've X and we So business a partner found with EMEA, can and I'm with have in and what one, happy we the in really

we're bad to that And we're Gary, times, doing deeply to or times over on would I the that to strategy, The good we're Bob. I what start in, continuing cycles believe what that focused cycles you in this thing which is executing stop drive strategy would execution see only the given add our we're so is and we terms don't us going -- that is are in. through think do of

the to Truist line go we of Sommer Securities. Tobey Next, with

Jasper This for Tobey. on is Bibb

it next few a revenue million be basis the the months? representation Just seems the metrology wanted I generally like for effectively flat stable. seeing of is comments. the what some down Is or about adjust sequentially like of And is of you earlier It contribution, clarify comparable that headwind, you're guide. sequentially in maybe if talked couple day going to to is fair demand working the sounds message a a on in that

end think the It it of doesn't the November. way it fell week. I third feel, like at in usually falls Yes. the Thanksgiving, really

going Chinese interim going us and the Year. impact business. got our It's and You to New it's impact to consulting

business November, to in of new think million see The we is is I logos. would green was $XX was and business. shift more of actually the as to RPO, the so. better. essentially all point said, saw business number that thing XX% like but was seen, of new out, quarter, in new new Tiffany or did And even it I and We similar a it And that though, that about we've in logos, November shoot flash was a in what RPO the

we shoot an that's head So into interesting green 'XX. as calendar

picking then front you That how right. could makes benefit would the between potentially in and maybe sense. you your And correlation 'XX of up All that some demand and us things refresh streams think -- do business? on your M&A on if

means. We historically we piece that we there's track going there's to and looks is XX-year 'XX. see systematic. synergistic that tend tend We're good make going that organization fit that is to inorganic And of say think we've with a market forward done, the We a at here. would very what M&A that you brand. from -- want inorganic. a if And or in record got so come we've to would look the like we'll it what back is XX% that culture sure

continue to any we tap that think don't to we there. we But opportunities. robust a investment And shift be there's into. I carefully base going very, can do very dramatic capital have evaluate

Sachs. to go with we Next, Tong George Goldman

is like to decline in wanted constant On the year. quarter the currency a the bit basis, saw revenues first fell business. dive a year. quarter in we into I a digital X% a a over little and believe I while, this year-over-year

side? year-over-year expect that can when seeing inflect to could the trends little growth? to might some a talk and driving inflection demand on positive you you're a the decline What of decline that So you be bit about to

business Well, the new was strong. very

new up the quarter, in our the move agreements. XX% was point but XX% that was revenue when I will. is it something business or subscription I think subscription quarter, one, And I absolutely of to towards impact it will is going on that new to inflect? this quarter, was number of the inflect the agreements. It business And think the it so. don't that. because So next would In like

integrated very a products the to that the we under big other from we're And KF that an List is clients have enable largest of sure our Advance And HCM integrated the we to we've different all Sell. in easily that seamlessly Korn a access to to into going world. there pretty platform we investment thing the call completing providers Talent make is done ] And the on what is are technology Suite. [ Ferry that working on KF to KF couple of that, that's

So that, we're on sure is easily to continuing make it into to that HCM providers. work integrated

We're also looking at partnerships.

work one to continue the there's offering. on our in then that. in largest active on world the And side go-to-market what very one integrating of that and we're IP into with, they're X of terms the We

So happen it But confidence. this have won't like quarter. I total

CapEx We've The into team got compare the leadership made investments new place. a to got investments, technology new a good compared ago. business significant in year the quarter. in quarter the We've was in We've tough platform. third a

So far, a so not bullish I'm this feel I race. marathon. it. But it's a good that, It's -- but pretty on is very, about very

Bob. this George, is

do you referring pretty If he's Gary we as what probably just And sign-on about of is period is of platform but single the think XX-month to. everything one the of that that essential laid he was that next sort kind a being conference, your remember at of were to Gary It's growth talked levers big looking out. somewhere we're time. I when undertaking, we're was at of up lift Mathias' completed single to in it

about perhaps slightly And saw larger little demand the characterize very currency Can X% bit you result, might to side, then you and the seeing to you're to for on you That's contract mentioned sort expect similar Yes. larger decline on impact And it. basis on color. helpful side, implementation environment the you to digital elaborate a the constant begin contributed that away? year-over-year. that consulting? how And Got you when more longer times a would the that contracts. the a as of consulting taper

shrinking elusive, couple the of and look, at the of overall, down. There's pandemic, up the in cost States has coming I costs, can packaging the were of Growth been same gone kind was for prices. people beginning going playbook, you think all raise years I followed only And companies. it's out Well, cutting of companies prices, raising XX%. mean a of now the has of everybody's of and environment so right? the living United volume long become

environment so mix have operating was And There our cost on been the our in. consulting been change absolutely years. a has for of that the companies brutal -- that been in business side. significant we've a that's of the couple by design. And

us that, at it's some deals give over last couple that's behind the think a to of for $X over quarters compared I still ago, new just million, quarter you in -- this you business million, business that look to numbers get for really to our today for level. take to And when to of XX% But backlog the backlog. you going at normalized $X some deals years look doubled. when new X to

take that's a And down been obvious reality the business. those consulting longer big so the that change that have environment been in bigger drawing that that definitely the companies is for to And they've And engagements macro reasons. implement. made on commitments slower given big,

numbers macro environment. in the sure for that seeing as you're So as the well

would of Bob. would that consumption. George. pace color just what one we're a is deals. clients add on I we it's breakage of It's call The to not seeing slower cancel Gary, bit those

go to UBS. we of line Josh Chan with Next, the

you're in for that business Getting labor labor staying Or the the seats meaning slowdown? kind you less related are longer offering? less for there's and of for think not as that it's this perhaps turnover, services to you Do by their need some that do a here. minute impacted think of turnover people is

very unusual cycle. this Well, Look, a is

a fall you temp were so-called indications, unusual. produce payroll penetration X see dial XXX,XXX, hiring. XXX,XXX by U.S. the been know, going and almost now to great is most slashed cycle and different The would this market definitely world XXX,XXX and a and This how quarters time To the back And jobs. recession jobs massive of a then have people all numbers there rate revised there by as bringing probably, for now. of I and resignation labor is -- labor times, XX see at you it's by years down stopped. So is clock that, the the they've pretty month different would the U.S. the a one few basically couple next it for think To look the months.

really number that changing. X the I don't is workforce. of see Peak XX that people X turning the million XX is are hitting to States leaving to million the going in contribute where or United people

environment. So but United in every is positive. years if the can been It's just going XXXX. I part -- clients, -- of company's it look, optimism, think States a unusual it's see particularly X our you the that's results. very into of some on been And There in

we've recently, big green was for when almost is good. that a RPO positive the it's negative think of seen we've business, would look The the seen business. in is business, the there's don't structural a in that any changes at good industrial I for shoots our which us, part trends news and impact Ferry, which us also industrial Korn on I is have sector XX%, that real

I the think same. it's of more been

see shoots in interim think the happening first kind to unusual. maybe normally, guess RPO because really challenged you business definitely the would the of on I will green that now. shoots green it up business first, is want make I follow the you it And most what of but actually that's comment because Yes. do

do bit? how kind being -- you upside of everything make of do So a you turned little what down

recruiters. the positions what is in great saw The fill hardest to were hardest. actually the Yes. resignation Well, we

in and what couple including business. of outsourcing predicted everywhere And shared hoarding. ago, something HR. increase And was less years such I was that labor service in hadn't fill called so the And what when you as I mandates areas saw that's to a were it a was, happened there exactly hiring massive happened

mandates, cost filled people environment the staff. would an the while in with and business internal think conscious, it would where that flourish outsourcing they companies are HR reduced it You took actually didn't, like and

only to is, you do higher fire, slow slow reality so think can the Well, to in long I this there's environment. that

And so positive. I think that's

I in a days. of temp I is structural going use market think is quarter, X just I change -- what some in executives this see X going not given But fractional is point, that. change, to see the to at change. interim think particularly or less I I executives. don't the business don't that don't

So bullish yes, now. we is the with We're see think And pretty what continues. have that do we we'll pipeline good. can RPO it that I on do right if that

is And Bob Gary, this again.

of the that Just a color we're past is little in the large of about heard the as November in expansion care health add bit into what I see RPO talking would Josh, market. opportunities vertical. month And Gary and to you into that, investing we that's what seeing in

comes with final question Baird. Mark Marcon from Our

little improvement, terms about some a in talk profitability Wondering sources bit areas and a you've wondering if in different dynamics. the job about holidays. the can you Bob of of bit of can the a seen particularly Happy the you great little if whole couple a you've margin team, more talk keeping where done up. revenue of I'm the declines. One,

look an So if at I and take a search interim. as example professional

I nature? you think down. is to of travel in office absolute Or terms of functions, functions? it is to extent you and a profitability that do what just while I'm the that's that and some that trick your is ability relative are back-office are of to improve things that? driving front to an efficiency And it -- real estate what revenue you've basis, -- And sources been able on neat the it's really wondering,

clearly ago thought I played we it's we well but a made what environment all it's wanted XX, September, months a not Well, over year of real year is travel out above, the of exactly we that XX but conscious a a ago, ago. it's as the estate, ago, very but decision couple -- the months

a profitability. on made we decision would we focus And that

profitable more made year some a tough And we towards pivoted And and portfolio it in work. so mix. the ago, we decisions you see the

it per hour gone in for $XXX it's -- You side, an see interim to the the up on rate like example, the hour.

will sure, for that is part the a that Now all that, Trilogy it almost of of bring large given down EMEA. in

regional So that of and compensation of it's in third to will levels. our marquee made we've trying But come down penetrate candidly, really to also decisions because different the because pivot and those quarter businesses the accounts.

been about question XX decisions months seeing No that to it. it's are you're we for right -- So what ago, now made sure.

And Mark, is Bob. this

to margins digit. of add and kind be would plug been remember, EBITDA our And we are has mid- I again, their to thing to built other The as businesses, high play. these buy single company

we integrate it's driver, as it contributes our not business. as and ability does these that create costs that we're in, well but And earnings as to huge able more a -- mean, contribute businesses to in to so shed I

the in. decide it's in terms that or them as that Right. that producers to I related primarily things if to you office at don't -- of back to interested of was terms the areas up end about may that they're costs, you basically shedding the you just functions wondering talked some extent particularly the it levels to in we not and want -- what be being aren't targeting you're

the the count down X/X X/X would But consultants, like across appear across is Yes, you or consultant on flat. contrarary. office XX almost quarter, it's entire in it -- when we everything, the look and is of brought like platform, say will I all at front

So the business, managing we're the actively workforce. actively managing

of I travel a real in very very, it. estate the very, is very, the think So small piece honestly,

talking also And office the much Bob that in as But things we that's for not -- money. integrate. sure, said, about you're back

we strategy X/X the resources clients. and where of around those the think allocate towards and which I people is really it

things come better seeing much a our of we of our one in the we've we're where something just at And out recovery, is workforce, doing the the a As managing are. that's rebalancing of some sure that of pandemic been been it, needs you're that now, making proactively job productivity. years number got demand for at nowadays increased we've client resources and

interim anybody they're in about that is whichever thing Ferry and going of to as of Lucas criticize it's The that level powerful? there's really -- same -- the -- being not clients mean, it -- I is or lift expected have they terms wondering I terms as mean, therefore, was margin one I'm seeing just wondering, I that because can out. well responsive improvement. under would not now of whether more are Yes. also to as Patina, higher is, I Or corn on was you was both spectacular. been way in retention, stands the the recruits? That's and the terms brand or in you no of a side clients trying command

face with Mark. from let's don't Ferry. No. And XX%. about level Absolutely, it's It's powerful. most excited it referrals, the In our of a I across down very to It's talking anywhere cross down XX% at it's you're I powerful, term I but I'm use that market, but pick you really it very with of Trilogy. at platform it, the we're be staffing starting competitors, that is seeing all recent -- hundreds look but market to the you're And resulted investment, could of look from mean, see even that. the -- sales, absolutely it. That engagements Korn have when

And where you and thing landscape, look market, down at you the to it's XX%. a was look market that at competitive RPO XX%

for a pivot couple years. And of we growth. towards been have brutal environment really it's a to So

that market We join talking about. is we you're and colleagues have that's increasing there That larger lift to pivot true. when towards is see those And synergistic. earnings a that addressable us,

just focus year. last $XXX, bit mean rate. hourly of that's ecosystem, our $XXX year right? more would part I that. Mark, -- It by was And of that's driven on on color being part this one I of the

have part really and Gary and last you come know, been that been see impressive. I space. That the this living like clear. Bob, been And environment Really very into I've and is I XX have these companies, I cover and all has during of years that different a than it clearly think it's clearly

does being greater a okay. take then larger business when I the in if you those talk business the So how basis? of new constant and little on everything trends? -- unfold, terms a just the new to -- decline that but little side, longer a the talk about And hear you bit bit about you consulting engagements on Because trends currency can the impact

that probably we And the softness DE&I imagine that you're seeing are at I some bit for it particular in? Like, look would that's if than practices take previously. any there softer example, a practice, a little was

the Just side? expect And there? start to inflection would consulting anything you to pinpoint that seeing can you on when an

think next will quarter, this don't happen it Mark. I

days the I -- see to falling. are particularly seasonality do going decline X you'll believe for you're I think think things to which a given extra X see just I way is the sure, really

You're right.

a I You're absolutely DE&I. XXXX XXXX. of fall the the We've on half seen and mean back right big back big, from there.

least business. You're probably that at talking annually million decline in $XX

to $XX are workforce leadership it an think We assignment, see fast progress we as million and the on one development for transforming move of us, wants front. could $XX development move. to engagement leadership million, as I continuing can -- that entire can good only client be that

revenue in And thing of thought year backlog so than have but moving that a potential, sitting multiyear we ago. that slower kind would that's have And assignment. is I a in

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more make have today. And sure We working what that, optimal that. we're bit than that is then a on is to it little

the and the terms what like together. revenue perspective, in just Great. And of and And you that ends up talking business Can new they in how bringing started talent about see. terms then add would your impacting off -- margins? you a think from color suite of can you by more just you -- client Gary, then

need the the -- -- and our able able IP to able what heard per dessert IP was one I problem. make order and to that we they the order had appetizer paying biggest menu. and between is people those entree, off think be to that the is be thing choose and they products to the separate is And thing our in a products. to do then heard that -- people off those stand-alone to item the were have want other that that. menu weren't products We we've and and per And able be drink

arguably the that's second one the is that, that and what we're is hard biggest piece them working time. big that into get this And we'll those providers. -- are -- all about. think some We're it'll on totally And changes changing the be see. so X will practical it's the takes biggest it's of we X that's of X integrated. the that And It HCM sure then third very integrated or probably clients But calendar XXXX. quarter to make done.

whatever for per you subscription and of this And drink go have so or would all buying you still -- interface -- basically you be to individual is. would for the would And Or solution? then solution the able an user solutions? to to the the annual be

where We hope hope latter. market. we're though. ambition. it's latter We're the yet, it's not there headed. That's We the That's the

is to it. to I And cycles through a up positive U.S. spirits recent end Great. and Okay. unleashing you assuming but the do how of regulatory wondering it's you in How be the I'm then, animal of that things? are and see lots been Gary, burdens, you've of think the people impacting think most going going elections. terms in different change

Yes.

probably that's true. think I

take it. that see a Although actually years will couple of to

because -- -- you're cost trillion not $XX the losing year $X of And is lot think a room to trillion you've living. debt load. got problem bigger I a there's of got you've maneuver here a

think just is a I maneuverability. of don't lot there

don't and of I don't just the probably I a that impact I maneuverability. quarters, see I'm around things I'm "regulatory do the that, there's that the changing. there materially I looking think think optimism at saying, that's out. the But over to of see In is don't just think next I I So years labor there is it. X -- couple level it what is of some think, see But hearing burden. market, "

the all margins. of in terms That's the Appreciate Great. Okay. fantastic. comments. congrats And

We Burnison. have no further Mr. questions,

happy think demonstrated Ferry, a it [indiscernible] the the think results in sustainable Leah, our our Korn environment colleagues in day, seasoned less Okay. XX listen we've incredibly balanced I of holidays. end a this over I is and provides greetings, of which I'm at success. It proud almost think and cyclical, more months. and and for organization I rough

with Talk Holidays, So conclude. next time. I'll everybody. to you that, Happy

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access enter dial and Playback International access XXX-XXXX. XXXX-XXX. the service the participants may You code AT&T Executive dialing by XXX-XXX-XXXX may (XXX)

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