FTI Consulting (FCN) 27 Apr 232023 Q1 Earnings call transcript

Good morning. Welcome to the FTI Consulting conference call to discuss the company's first quarter 2023 earnings results as reported this morning. Management will begin with formal remarks, after which they will take your questions.

Before we begin, I would like to remind everyone that this conference call may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21 of the Securities Exchange Act of 1934 that involve risks and uncertainties.

Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to financial performance, acquisitions, share repurchases, business trends, ESG-related matters and other information or other matters that are not historical, including statements regarding estimates of our future financial results and other matters.

the risks events quarter factors Information the ended contemplated issued in annual Form to other statements, in as XX, should of the Risk actual may by this of discussion with in our investors well XX-Q or statement website of results differ review available our morning, heading a a for XX, SEC. XXXX, filings disclosures Form and March under press which the quarterly XXXX, that other report cause our XX-K and forward-looking the year as copy reports for and For earnings on Forward-Looking ended harbor is other release on Factors on our the safe from www.fticonsulting.com, those at December

Investors updated. place not speak will to reliance the forward-looking call any of to not only on and statements, this earnings which date be are cautioned undue

certain the as discuss During per measures operating flow. adjusted adjusted adjusted EBITDA, adjusted diluted we segment EBITDA adjusted earnings share, such free net total call, EBITDA, cash and segment income, total will non-GAAP margin financial income,

most of For measures as reconciliations include reconciliation. financial accompanying non-GAAP issued a morning, other measures we investors this non-GAAP review GAAP comparable financial which financial the release of to our as discussion and the measures, well these the should directly press and the tables that

will earnings section posted Investor and Relations a operating there of our during have Of quarterly quarter Lastly, first the Excel to to historical, and the posted our for the Relations today's website. presentation quarterly include results. presentation to updated been an our directly PDF have our prepared financial of management remarks, that speak your which are X note, These Investor section earnings items not data, website to XXXX of reference. and include been

section of on same Officer; provide our our Steven Relations the our Gunby, they I'm Chief of by as and those formalities Chief President disclosures are To said, available slides and ensure these Officer. With consistent, the and details out I've Sabherwal, our Financial the as way, are today Ajay Investor historically, have joined website. Executive

At call President Steve the Officer, turn our I this over Executive Chief and Gunby. time, will to

Welcome, am everyone, this we growth reported to we for reported say Thank all fact, revenues revenue joining this in you, us thank once morning. and quarter. you year-over-year pleased Molly. record again. yet again I And double-digit that

despite this we Ajay FX As talk of the about had and will revenue was that quarter, that deferrals. revenue some headwinds we level growth fact had

of each revenues you when I'll But growth. segments levels. reasons segments, only mid-single performance, once each revenue headwinds. FX year-over-year. reported modest headwinds, Comm's adjust segments rest later, Strat And double-digit at grew describe double-digit again our some levels. of of our -- all our FX digits for grew for that Econ, grew Disaggregating despite significant the revenue of revenues strong

we sort revenue and story, some elaboration, can might that more to the of Ajay go going terrific to I'm it enormous some if share to of numbers imagine, details further of during Below stories. are them depth like success you'd leave into as Q&A. or you

like this in top-level move to the the fact, want discuss I'd reasons line some from will strong substantially. our bottom depth, performance, that Ajay I revenue those few story today, a give of but our to because line, story But to notwithstanding the you underperformed bottom top-line expectations for reasons. so and shortfalls the in did quarter,

come me to Econ. let back First,

our as incredibly knows call our think is Econ that business, shareholders clients. for years, Our this everybody least importantly, and on an many business has, for I delivered strong powerful as for results at

that adjusted many, years, many at EBITDA annual business XX% about averaged least for XX. last We've margins average in the

year, the in quarter. of the some we this -- beginning number some revenue margin other happen EBITDA including to few a parts EBITDA an in slowness deliver adjusted in a X% factors, deferrals, For of business things, the

we do of EBITDA Econ discuss adjusted year. at will we not margins the As expect that later, for level in to the rest remain

The talked lot past. in one happen that we've a way any are or there cut that given about factors quarter, the is of lot to one second factor a can another. In

debt one bad as another, about of the any factor, timing talked FX second given in of The a transaction like lot there -- to events losses a or we've the a lot past. factors that amount the of can quarter. in happen one In or quarter, lot about are the we've way talked in cut or is marketing client or that the

reason, they quarter, items cut on to to I third though want the This some which in often happened is those than total more spend different. do. time negatively

our high up as was compensation this higher for ourselves growth and and we quarter, we actually an revenue of terms billable revenue delivered. growth nonbillable As associated than of that even in staffed the with level headcount

actually that growth. revenue those exceeded That resulted expense terrific growth in

that thing happens that In that how totally because me happened the talk that places, little of let and random. sort quarter. a not few It's So about random. every a is it's

Solutions exactly our and of the any with Asia and parts world. growth in Strat area shortfalls quarter, this can't much business in some particular revenue predict In businesses around of we growth had in EMEA You how you'll FLC in Comm, our Pacific. revenue have Health

every happens places. pretty quarter, It But typical. that is some

bit can't consider even where. lower quarter, just we was even we exactly quarters. this recent predict employee though our systemically, of lower And don't trend, any long-term that part of variations. be than it in to than quarter-to-quarter turnover We expected it You More expected. was ever normal a a lower,

and is factors, we advantage we important took and terrific looking that also of to in find that talent we which top to join something have us, happen, however, continue and of else building On those including continue Hong Continental jurisdictions businesses to the those multiple key add elsewhere markets, we support Middle headcount. Australia, the Kong, we're nonbillable Europe in elsewhere, and to East,

up delivered. an ourselves actually revenues, though even staffed higher growth we revenue we of for So we level record than had

expense we gradually discuss, to between do on. gap growth As that growth revenue as and Ajay normalize year goes the expect will

me find I Let important. something talk to very that

this we but our the typically nonbillable not reduce all, the we go moderate bottom-line give other my some cut the they headcount way or this about the and year. FX in attrition get deferrals, shortfall of pause company for When quarters, can growth of some lower, If Revenue to we to issues quarters, for way. billable even confidence to growth. I not future our recognized. any they be quarter, look at gently outlook my the respect typically with headcount against course, match powerful in the do bases me can hiring, continues

line unable we quarter this they wanted and because things what to any to negatively to of this majority result quarter. a a or the allow will things continue happened the grow with ideally or more is, that strong we coupled had Rather, bottom fundamentally is bets is build making growth we've us we not being chose suddenly hit series to time. over stopped top-level enterprise point that The us shortfall believe us we'd Important of we do the working. of series of revenues, attractive to the a what though been not quarter, in want that

little of of us, demand. possibility. and it defect invest a sentence. a focus to the me great decide is ahead we continue more talent looking that Is we to choice possible to bit That prior let have close, I on always Before that part to

the me, we a this of quarters? following that course, it But as of advantage been it took great it, making have to be hurt company terrific by been But would sorts to it's thing. been those almost we've who those decade. Of could know, could. If you for now trajectory years multiyear now we've able been bets company that this on on for of a get

of people time. in People when talked of this examples our We have businesses businesses some have helped quarters joined the firm. transform were those hired about over slow. in best some they We've the

announced that us my for data know I I reasonable knew must during them were quarter. first unprecedented excited that is our this XX, amount script has combination this and in talent I of to quarter, us, excited know, I'm joining extraordinarily quarter, say am the some and we I about about which now joined quarter. of this slipped professionals first right some think and senior the this Molly hiring company. want Apparently, for XX I SMDs hearing join apparently we I'm great those MDs, people. into I hires a

Let me reiterate point. important me the to most

be to over trajectory volatile. X ask issues powerful sustainable building that on will not that impacted that by reducing engines focus I demonstrate multiyear And be volatility. X of None ask business growth always don't trajectory. about multiyear on the our year. this time quarter that short-term volatility, this but me them or never can and even I powerful give to results can company in focus here management Quarterly pause our this

focus our where develop we attract, and where by bold on build to shown on and those teams needs, day client believe have forward commitment that business any people maintain on support time, to our and believe now we that extended they when them look journey. promote every a that the that needs, stores, do continuing can that right and to of as have and I still ensuring professionals we soar. we businesses. those great And we having making I they deliver develop period great and who needs win our we are bets over us focus

details turn on let quarter. that, this With to the Ajay? some Ajay for me over

Thank and my for results remarks, you, through prepared everybody. guidance segment year. In and company-wide Steve. will I you Good full morning, discuss our take the

yet activities strengthened all record Steve note, today, Of reported As segments our we with quarter. revenues another year-over-year. in growing of restructuring mentioned, the quarter of

increased X Conversely, making our in quarterly QX In lowest the Bloomberg that Global, M&A declined volume several M&A-related fact, years. last bankruptcies we quarter anticipated. for for was in consecutive than in slower nearly monthly in of XX% third services through the XXXX, year-over-year of reported global have pace according the months. deal to the it segments March, XX U.S. S&P sequentially

tax not did growth to SG&A, a sufficiently year prior FX revenue compared direct the and losses cost, quarter. increase rate the higher Strong offset transaction in

a expectations. quarter and Overall, below As declined our EPS were our year-over-year. result, first adjusted EBITDA results

Now the details for turning quarter. to the

of year-over-year. revenues or up million XXXX million, of First quarter XX.X% $XXX.X were $XX.X

compared prior in impact $XX.X in the $X.XX the increase prior XX.X%. quarter. the $X.XX income primarily million year in due $XX.X per of compared $XX.X was of million negative The estimated increased in of Excluding net to an FX, compensation. share million to decrease Earnings quarter. income revenues Net to year or

to which travel increased headcount, included bad and revenues XXXX. entertainment in due of higher in in and SG&A XX.X% XX% Including losses. SG&A the impact of million XX.X% billable and compares of expenses to $XXX and or FX SG&A was headcount, the increase remeasurement SG&A in debt. a The of million increase nonbillable was revenues expenses increase $XXX.X first higher higher quarter compensation, primarily an of XX.X% of

XXXX quarter EBITDA prior in First decreased the $XX.X million compared million year $XX.X to adjusted of quarter. XX.X%

Our in from XXXX first rate vesting. share-based primarily was taxes, quarter higher a tax tax fewer XX.X% increase quarter The and related compensation adjustment foreign an the tax effective prior this due lower quarter. in to XX% to compared shares discrete of to rate year

XXXX, balance to so expect of to tax year be prior and For are to average outstanding we in quarter. for shares XX%. compared QX shares XX% Weighted of the way continue effective XX.X between million shares the our rate million XX.X

WASO. the had a on shares approximately dilutive in For our impact X.X convertible notes quarter, EPS potential million of

As was price past $XXX.XX quarter conversion $XXX.X the this threshold. share average our of on above

year-over-year. or Nonbillable headcount headcount finance headcount marketing. or X%. America of as count support employees X.X%. head professionals, such to a business, added by by North increased increased We outside nonbillable increased billable XXX larger and Sequentially, year-over-year. XX% in areas especially Sequentially, XXX increased professionals Billable XX.X% or HR, professionals by XX by recruiting, non-billable

performance primarily higher the to offset lower The XX.X% Now business $XXX revenues revenues our segment restructuring which by demand was Restructuring, transaction for increased in compared at In to prior turning & increase and year for Finance to million demand transformation the services, record Corporate partially level. of was quarter. due services.

transformation and represented Year-over-year, in while for Adjusted This a of split or XX%, Business of the year as of quarter. revenues to transformation airlines. for revenues $XX XX% segment helped restructuring segment restructuring and revenues, to or million transactions of year revenues quarter. XX.X% prior including and of prior we XX.X% quarter. verticals, $XX.X financial variety revenues compares segment XX% XX% represented in successfully the business of restructuring clients compared XX% EBITDA transactions grew retail, segment and of in segment health in million the care, a institutions

business and The was development including due activity. which includes higher increase increase to revenues, higher by higher expenses, increased impact SG&A in of billable partially headcount primarily was adjusted segment in compensation, offset a EBITDA XX.X% the which

data Turning year analytics, revenues to increased The million increase FLC. solutions primarily demand for to investigations Revenues Forensic and to Litigation quarter. Consulting prior higher of health was due compared in or services. $XXX.X the and XX.X% and

XX.X% to increase Adjusted year adjusted primarily the compared due to segment segment which XX.X% or higher in in was outside revenues revenues the or as of EBITDA SG&A of of segment billable $XX.X in million $XX.X quarter. was of segment and increase prior million compensation, impact The revenues partially contractors needed an expenses as X.X% a in well head as higher in count, increase which offset by includes increase expenses. an EBITDA

for the In antitrust antitrust million higher increase year $XXX.X services antitrust related by services, which in primarily quarter. demand Economic revenues for X.X% Consulting, The M&A-related was of realization due partially was lower services. and prior demand non-M&A-related for revenues offset compared non-M&A to increased to higher

million million The $XX.X includes segment segment prior year X.X% in segment adjusted in of the expenses. of decrease or of due and SG&A impact revenues count which XX.X% primarily higher to higher in EBITDA of to Adjusted billable or X.X% revenues quarter. an was EBITDA head $XX.X compensation, compared the segment increase

in in in of and later recognize Economic million. We segment variations positively Consulting. be to to this performed. on This is continue revenues to that work met revenues resulted conditions EBITDA had expected revenue these believe $X EBITDA could part may and deferrals impact result by will timing We segment and higher have due adjusted approximately revenue in adjusted in year recognized that already the

services. and prior million compared increased higher due year offset to partially investigations services, revenues to Technology by for The and quarter. in governance, information increase the XX.X% security for primarily $XX.X which was demand litigation of lower was demand revenues privacy

to increase XX% of count. compared Adjusted expenses in was of segment or which segment to The which $XX.X of EBITDA segment revenues offset primarily in year was in increase million revenues and quarter. prior of head increase impact revenues, adjusted includes the segment by an higher the due EBITDA in or XX.X% $XX.X SG&A compensation, partially billable million higher a XX.X%

crisis Communications prior due particularly was million in revenues revenues quarter. corporate to increased services, higher demand supporting Strategic communication $XX.X reputation compared of the primarily The and for engagements. to increase year X.X% cybersecurity-related

The EBITDA million $X.X a an million compared compensation, in the decrease margin increase revenues includes of year primarily of adjusted XX.X% gross due lower to $XX.X EBITDA segment which higher segment in more than increase resulting Adjusted or in billable segment XX.X% from or segment revenues expenses of to in and headcount. was the prior of increase the SG&A That impact XX.X% offset in revenues. quarter.

discuss now items. and few me Let cash flow a balance sheet

increase expenses used year-over-year largely by cash of we an operating million an in of higher the offset operating payments, bonuses salaries cash $XXX.X quarter. in growth, net annual due Net which prior in and primarily was headcount our to activities in an operating quarter. increase the was to increase annual million bonus used in to is partially related As collections. in typical, the in cash bulk year activities in $XXX.X pay The increase first compared

$XX.X the per million at During $XXX.XX. an share price shares repurchase spent we XXX,XXX to quarter, of average

$XXX.X As end million of net debt, repurchase current of due used XXXX. stock in authorization. annual cash cash compared negative included the March and Total activities, XXXX, XX, stock of remained for March at operating approximately million $XXX.X XX, increase total in of bonus debt sequential net under $XX.X million increase The an to payments. primarily was the to repurchases which December XX, million at XXXX, $XXX.X of cash, in at quarter, available our

guidance. to Turning

changes warranted. the have changing are belt, As results guidance. re-evaluate under in to we at we the quarter if will the is are see our end of weaker-than-expected Despite not we typical, QX, second any our quarter once another guidance

impact in second, are Our XXXX compared than remain over activity expectations the XQ and Finance; slower would quarters; recognize for reflected restructuring the X% increase several the we to United year expect from Economic following: restructuring was the in in M&A to momentum a to consulting transactions revenue Corporate expect activity XXXX, fourth, shaped in first, both in in build the revenues which near continues by our Consulting a expect to to assumptions, and litigation including and in low our pickup States we business overseas, positively third, QX quarters, coming Technology certain strengthen, and XXXX; in we segments deferrals in economic to coming in seen levels which continue while sequential record the consulting our we expect forensic business.

Finally, expenses we the each of QX. expect at remain a level SG&A SG&A to quarter year to for in similar in balance the

headcount headcount nonbillable the QX both in in half which year. growth, lower billable expect second and be of growth exceeded the growth to We revenue

I the I I that themes want attractiveness underscore of close, Before to believe X business. our reiterate

ones; when business the second, First, any while sheet growing the world. we ability organic boost strong demonstrated flexibility and allows believe strongest the on of long buybacks we and the anywhere we to right shareholder our we generate share focused to mindful of growth, have third, and balance the headcount acquisitions being provider restructuring the also duality value term are through see growth to are cycle, we antitrust continue utilization; for in of us in services revenue our the strong

your With with and prices other grow key businesses also while We continue ESG, business those many in practices, transformation, emerging assets capabilities communications questions. and for call growing the cybersecurity, let's open to including digital that, technology globally. data up

[Operator Instructions].

William question Blair. Our Nicholas with comes first from Andrew

restructuring to and you're sequential step-up strength, environment. U.S. like quarter-over-quarter. some both revenue pleased in in just you're the It It start with seeing seems the wanted the overseas. with I like sounds

talking time the maybe next or you more maybe developed bit about about about that little thinking were quarters a spend just it could to of relative several you're thinking a how you couple how over years months back. how hoping was and business I that's So

So picking and said U.K., no is that's And both talk the that a and and is remarks is why to is restructuring we U.S. we guidance. in pickup. our -- about of up, Germany, What a overseas difficult line our question, But prepared slope up. places there's project range when that is explicitly Andrew, Australia, the exactly there picking definitely guidance. in it like in

call out and that Understood. know, items timing in that of other that rest the only it prepared I sizable factors that there of the the Or of you'd remarks revenue cognizant that of out we were any Steve, make quarter. in you deferral that should cut combination combination that a as the your I mentioned as of then Were this think, year? factors? kind we be through And called move you of a there's kind was potential we reversals about negatively economic think consulting. X Ajay,

terms Ajay thinks reversals, in anything I else. don't see I I'll reversals. know if So of of of mean

quarter any bad the way cut lower. quarters, think bad amount that quarter I -- we in we expect think I another sometimes like have bad In FX, I we factors than some factors quarters, had any debt. in have is And of in other debt, higher one we happen the some or debt. mean some

Some quarters, favor. cuts our in the FX

something negatively. quarters, the seems against cuts the factors, like having cut bad quarter for whenever -- we're sometimes else, it Some a also factors short-term It all us.

cut that's sure feels quarter, case. negative But some not It we of that those had I'm way. the just also. this

reverse. they're going to can't sure be You

no going the be have bad goes because that as is can't never was it's Andrew? first seen the in correlation reverse to bad going -- respond, second. there's You the a quarter, on. that Does But we says FX that be it to in sure year

Should then level that comments more at your in absolutely. similar dollar SG&A just squeeze on SG&A. absolute of Or QX revenue to X -- percentage? your be a expect could just if of question. we And in No, to to on Ajay, Yes. And I terms terms? kind clarify is

Absolute dollar terms.

Yaro next from with The James Sachs. question is Goldman

guess subsegment, over performance was In business think scenario. would positive. a do we then Finance are, I and in be to impacted trying adversely transformation with we which of is subsegment, weaker about the in Corporate understand, transactions slightly do do side, it And any and through start And despite business that those a adverse recession effects potential very if backdrop. just still specifically transactions time? by quarter-on-quarter, that that pullback the sponsors, in X And X within Restructuring. businesses, M&A by macro transformation I'm subsegment. a then growth they corporates how enter in Just you the you obviously terms a the think could perform the backdrop, should recession? on outgrow weaker would how a up spending & questions And headcount

in here's actually Not facts. So was transactions down grew transactions year-over-year. transformation the year-over-year. Combined that and business X% X.X%

out cycle, or the So even transformation in this us. business there. industry whole transformation, to small there grew We're out for the relative market business

cyclical, I cycles. for So experienced the transformation there's grow transaction to continue scope enormous we business The to us despite and is think side same.

the Okay. revenue That's very in opportunity if you the just you see do within And across that? opportunity? clear. see you And are you speak investing which could to where crypto your Maybe segments then business.

mean, Yes. crypto, fact, have, litigation for obviously, there's in make today. that. dynamic our a involved our space. in number bankruptcies we of Look, Technology it's litigation difference have segments opportunities a e-discovery. of and a There's been mean, in And can in get I multiple crypto. can segments I in obviously

there's up You can investigations. with you If witnesses. can end disputes expert with end and up litigation,

-- area talk specifically -- an we're we focused we obviously cases, don't individual it's I that So I but have Does serious we're think think progress. respond? and that about making on --

X which had hiring is just on other one, the just opportunity. I Absolutely.

has opportunity big so whether with happening consulting has robust hiring, -- such do U.S., to of you're especially to seeing whether you loose? shaking and And You've that? firm Maybe remained the you obviously high-quality talent to anything why as to why with X alluded outside just continued before. the could speak what's robust conduct the that

Yes.

rest with to of of has some do I with think it us do -- us the has the then has to of it it some world. and

X good last seen X of X, changed Australia, although being now the are things winning player seen as had in people player. the in in multiple say the years I would we we has is winning as globe. around were that we not places in the think a that I

for in Europe. You could places true many Continental say that's

now player practice a many be we best part in X win can businesses, I London, you don't but had the has then we And guess We the practitioners like a ago, Lehman mean, won years That places don't seen -- X That most the are you in were. changed. though to real has important Europe. bulk good winning globalize, in want global as And you names, some of U.S. the XX globalize weren't think public. even assignments, as We strong which of a that I I as won people of. be to part just big those team. Brothers changed. of

forth. the bankruptcy name of that people and cases global last Two biggest working in so on cases the X like the years. And

world. multiple our changed the we've position around places in So

And The second hard often, to world. are issue their very leave firms. dislocations it's there to people is around competitors and the best the get

referred I've a to. a who people little experience. lot there when experience. I ago, And firms, it's is people then some been boutique other XX said at firms, been I around. that some would there's you they people disruptions look at around, have great of from in And from us from to of And the say It's the us. larger us. come today, years looking of weren't happened a places But think when are great looking disruption, many was firms that's thing the a

on That's around. not and that we're gets people, for businesses. but best actually that we growing people And supporting deliver perfect, that's their word attractive

to loop because through the to virtuous keep it's I to -- it's it So is in every day able that a key grow being us us work cycles.

And well. far, going we're that respond. pretty not Does perfect, so it's but

question with next is Tobey Truist Sommer The Securities. from

start in from -- variability has the conditions some opportunity that a mind terms hire maybe on headcount intrinsically the competitor? in laterally growth company do keep unpredictable, well, group sort year? should larger of a there for there to Just for change we out this of company to think about Anything in and/or of been

dramatic that Look, been there's some I don't precipitous know change.

at those, last laterally pretty I think, without been doing as know, attracting the growth people But we of while. shown over the rate. well a also record at last we've couldn't while. We've you the we've have promoting met both been for

this. is have that there always and leave. So a in you instead of means competitor event disruptive a actively we a who of is, group are twosies, want mass monitoring The onesies to question people

that that The smart Anderson -- conversion don't of we to it's we're you all or not And Consulting we we sure do business. here a which and that talent. was we equivalent hurts to a Does how wish grow right that, supportive some are them lot We're the very constantly that this. that's it question. make We But that precipitate those going monitor are sign respond? door X there sure there of willing people and But we're like to a try want that if today, of firms, tomorrow, because looking of fine add quarter, world we my a the make out of that. knows it other well. to if are things then happen, on if deal to lining a

What's Sure. your FLC. that, And answering utilization boosting space the that what you the has been of in projects for stubbornly of segment. low outlook that and for and context give could in in for the perspective persistent market maybe large kind in us

of quite we a in over bit FLC last while. progress the I actually Look, have Yes. made think

year, we aggressive important, recognized got it's front slowed masked of that things more management certain some some are going and last made pretty of in that team we by Some assignments. segment. were other we on hiring. sure the in potential But that But commercially

revenue So there. had growth very look, we've substantial

would that just our many point, or we for of I it's not not growing. even your at utilization overall but business. to because would like, their growth other think we're It's not actually, like was like still parts the faster actually it's they that expectations

want. that we I we're going going heads. your it's if XX question? may we're than to your we're What to may and than are, in little you you the levels utilization have in you to shape comes better think you do growth And hoping think not taper fast have get cut the like you the people all respond much of we're or not the We shrinking we're headcount. you Does I have we're X hiring. to that you're and we that a is, taper revenue less were -- on I can to -- to So get just either are ago. to months mean think growing business

lines there perceive in was current you business, could crisis of emerged. in Steve, various and demand and sort banking the when SVB occurred of segments your any change

any in Just wondering pockets. diminishment if demand opportunity there was various in or

So to events maybe to clients, multiple levels. can't provide. to so can sort I talk talk of can things X that our Obviously, either that demand segments if forth, those -- let and are sorts specific like going there disruptive but me services to for at lead often can banks bankrupt of lead

our general is, that third there's The so parts more point okay, that and some so you're for consequences order business. making specific. second of And the for

you know of them sort okay. right, I I -- into that's how that about forecast getting read of the don't today, I mean read macroeconomic now many

by that the -- X.X% increase to So is a equivalent Fed.

point that. And nuts So yourself will market Fed I you more only X.XX that mean less. raise can the housing now a will actually on affect the do at drive they'll where

we front sixth experience order your things. a and is figure enough little the propositions focus the of need out order and the hiring. And exuberant my on effect adjust periodically aggressive our commercially what on or taper overexuberant, hard we're on we have and and effects right is second think in And headcount sure making I growth. we're stock then take out macro if too it's you to to

at -- that's the let least respond know, know. So me a but Tobey. at you Does you give can and if call least I take me that and call.

recurring of Sure. this expand. year? the some that year, and or occurring talk not growth the infrastructure of year you Right. opportunities ability to Right. of risk GA the Last risks sap Could margins it this about growth, for

results higher also in cost. it we when So interesting do things,

new your and well, put If does locations, entering new want experience as practitioners best the it you adjacencies countries, to your new you're that. for and you the want give presentation require best to markets, clients new

have need up Otherwise, a money. hired, do example, as outside we you'd for paying have to So as end hire companies of we you lot people recruiters. -- many

provide in good need experience you those people. country To service in people people for country, that a a to different dedicated

explicitly in are a we of count. was part -- nonbillable Now growth the and head big that

sure we in later innings. not in the innings one, later are in a We that. I'm are which but

second half so taper off And the year. the that of in should

Nice phrase knows guy baseball. barely a for who

This Q&A session. concludes our

we really And I thank what exactly the you this moving time. mean all the is confidence quarter for still over wasn't company line feeling taking that. enormous good are time. Well, me this the of revenue about demonstrates let company leaves and with it wanted, the we but about bottom just reiterate, very obviously, where us

you Looking forward to all. much. to continue you engage with very Thank

presentation. you concluded. for Thank now today's The attending conference has

disconnect. now may You