ASGN (ASGN) 24 Apr 242024 Q1 Earnings call transcript

Greetings. Welcome to the ASGN Inc.

First Quarter 2024 Earnings Call. [Operator Instructions].I will now turn the conference over to your host, Kimberly Esterkin, Vice President of Investor Relations.

You may begin.

afternoon. Good joining ASGN's for Conference Quarter today Call. us you First for XXXX Thank Ted Officer; Chief and me Hanson, With are Executive Chief Officer. Marie Financial Rand Perry, President; Blazer,

that would Before started, like our commentary to we contains I remind get statements. forward-looking everyone

our reasonable, statements. statements and as risks filings. described obligation uncertainties Certain SEC actual of believe our subject differ could in and are release are are these we made not to they today's and do Although materially assume such, update results to these risks on uncertainties, from in call. press We this those and any statements

These this your in we certain referencing release. measures, remarks cash GAAP the For measures website will are income Executive and such press found section non-GAAP today's measures. EBITDA, flow. adjusted as Relations now can Ted Officer over Hansen, on between Chief of to our to comparable be also are GAAP Reconciliations prepared and net non-GAAP call, our and non-GAAP turn the Investor I supplement Please in the call at be supplemental convenience, measures investors.asgn.com. adjusted materials free that will note included intended

market last evident isle thank Commercial segment were QX, end year-over-year would Call. of Kim, billion which our achieve from segment our revenue guidance the top continue in of segment It's you ASGN's you, detail When predicted. XXXX review EBITDA joining while line in results, expected quarter, we of spoke government Earnings adjusted and that and fee Thank our quarter. growth. Revenues shortly, Quarter both I'll top were ASGN comparable the Federal near conditions First trends QX for with our to to results $X.XX solid for first of $XX.X we million range.

cautious continue where clients acutely be commercial spend. to and they when focused will on and Our

increased both slow capabilities, to our year-over-year our revenues budgets be high-end consulting and clients IT so leverage commercial to Importantly, our sequentially. consulting executed, despite being continue

end quarter government began of the the in of of passage improved business, and March. towards our side bill the revenues year-over-year with late visibility appropriations On the to build the

not direction. release approval budget right spend automatically, happen the is a and the step a While in Federal of will the

in direction, to of our continued proactively growth. business shape our Speaking right continue evolve we the and to position moving operations for

Our only us more industry in a times, also difficult large diverse, macro account condition. portfolio served not well but good

government support balance Federal out X services Our provided verticals. our cyclical diverse commercial to industry

longer higher-margin the revenues on that the consulting stickier, business providing consulting, focusing are market of right quarterly XX% our and client as cycles. value, stability higher to enhanced where compared year period. of prior also revenues are visibility our with and XX% of IT We IT roughly QX XXXX highlight services results, relationships are in type approximately projects of The comprised across

customer addition, In develop margin. further And the from adjusted great driven XXXX to government clients. with continuing in market, has and made by for our This be benefits opportunities vast right strides ASGN consulting the higher in consulting foster part relationships growing there business. with commercial many EBITDA and will more the are growth growth. addressable IT Fortune

long-standing clients services continue will trusted IT Our are progression our pull us what up client the into consulting, and to pyramid. relationships drove these IT

stay developments, our cybersecurity, we our spending, customers' to upskilling we AI, are as the data such key Importantly, and training in this essential ahead Technology that at right teams as our including need await and increased competitive. we in technological the it change investments all is rapid with cloud analytics, people, shifting and of areas pace, a making mine. latest remain is to

it capital comes strategic the on allocation. We are decisions executing right when our to also

stockholders a value this week, to our time in our new Loan on ASGN's free pleased background, X-year deliver segment This to right Directors that by Marie buy million that approved using our reflecting ready turn with repurchase largest announce solid $XXX Term I same ensuring shortly, performance Board refinancing commitment While commercial. our let's at cash With execute recent just B history, to the our to remain strategic share the will we acquisitions. our while that authorization flow am revenue as beginning of segment authorization. discuss is back to shares a by to largest our the

on cloud and even as X.Xx revenues considered assignment a first declined increased segment and renewals for sequentially. this low Commercial cybersecurity, compared working quarter accounts precursor be X.X% are softness prioritized continue of XXXX XX-month by are areas again continued data Commercial were in investments and digits and areas for we analytics. That customers a of our actively trailing approximately quarter. to of said, cloud actively benefited are services Our book-to-bill managed, consulting segment our quarter double budgets of business, IT spending segment from a the million in more our clients Fortune with year-over-year. companies. and were the large AI bookings Consulting by Revenues offset growth revenues in in mid-market solidify Commercial the ago in the the infrastructure we the the often our their year to period, up weighted consulting basis. also to $XXX.X business. Commercial to Investments data translated in to foundations. cyclical AI X% space, for and Bookings towards the

a stabilizing on said, X Account. X and year-over-year industry appear to vertical business adjusted basis. sequential to and be a government X our Health all verticals, TMT, in saw we commercial services growth Turning That year-over-year. verticals sub verticals: day same billable Telecom Utilities, declined basis, providers including performance, On Care

subverticals on same We defense banks, care count. and a regional staples sequential aerospace adjusted day media, in consumer several saw including energy, growth payers, also basis, billable health telecom, and

only solid. it's And point across teams remained have bookings during of Cybersecurity continues yet area our this not in with sequential services added our segment to we IT work commercial an an areas. commercial growth first last see And collaboration multiple to segment. for these on our Nevertheless, our quarter, the encouraging be strength. has While to discussed consulting government seen as quarter, cybersecurity Federal spending. service improvements, won inflection

During delivering contract won insurance client. advisory a to XXX technical quarter, Fortune and remediation we services a the

helped risk Our our mature security their organization. compliance and comprehensive become and governance, focused solutions clients oversight governance operations improved and an

commercial cybersecurity, application global quarter, more leader be current clients with efficiency Beyond in resonating are clients center having delivered our are in with were become scale is our our world-class following we've difficulties they transportation medical and for nearshore opportunities their product to the a One and to way provider. services first looking efficient. delivery In Mexico. team offshore that approached

that working from Our Mexico more a are in to delivery testers extensive then offer experience team stepped time convenient of for to much clients. a have together our in experts to developers

they the Our base, environment. projects and performing they also nearshore consultants enjoying our impressing are their are but are client not only work

and fact, the pleased an ASGN earlier career women the career award Systems intellectual places Mexico belief core In commitment in to data multicultural Apex a development internal this best investments one of to and development, is is second was segment continued practice testament the our systems environment providing and training. as that lines work being talent, corporate and inclusive very to I'm technology for property for to commercial a of growing supported in report recognized month, our AI to partnerships, row, brand in is this year all. Along for policies, by our

We in are proactively workforce latest in our training the and Mexico U.S. the GenAI technology.

us sets world's providers, a example, enabled the to win skill our AI for of development one consulting program. engagement supporting application telecommunications largest a XX-month For GenAI

unified scalable with the training. and and Fortune XX client of AI. and oil that implementation amongst Databricks an XXX, to In layer governance instance, for offers our language data large access the providing catalog, gas leadership technical we for are of are platform cloud-based Unity enterprise the We ranks talent, a that another an top company leading model a

client Our related develop these team a helping allocation structure in Databricks for deployments tasked cost our and instability, with security our is workspaces. XXX governance the cloud around over clients the project of has and posture workspaces

ease Databricks our to collaborating automation consultants clients' currently IT is with of internal onboard repeatability. Our to with workspaces and team build these Databricks and team

to Our use as and we own work data developing cases AI they and on focus pipeline preparation, continues our platforms. supporting forward their to implementing of data clients ultimately and grow, look AI

of Now Department end the Intelligence trailing let's Agencies. Federal to revenues. first ratio turn to first quarter and year-over-year. our the a of coverage Civilian XX-month Federal at solutions segment's Defense, Federal X.Xx the government the the which were solidly provides $X.X quarter Contract segment, for billion revenues mission-critical the of backlog was or up Community segment

trailing to contract awards a book-to-bill of were basis. million, $XXX.X X.Xx XX-month translating approximately on a New

to work way the deferred procurement of With by continuing previously the the resolution beginning budget, Federal the awards are passage system. through recent their

increased and and awaiting throughout recent in segment new cybersecurity will submitted The contract Under Services. team $XXX areas process been The Federal allocates will health Medicaid contract, recomplete leadership services, X-year the of pursuit forensics appropriations the an have Department now with responsible this comprehensive hope advanced awards We budgeting In at towards one presence, funds proposal with analytics million of of funds Government direct area for marketplace. AI bill, cybersecurity won Medicare data that government convert our the to intelligence, a which a managed allocates to of several Human recently and and quarter, newly higher Federal to is service begin their first velocity. centers Health which also approved established provide in the services key cybersecurity. budget passed our and Federal budget our and teams have the our the award applications. care

our to AI and In both of to AI contractors one IT. side government the business, enterprise commercial the segment of on U.S. as growing mission remains Federal in government addition recognized presence our leading our

national and its in funding the DoD the capabilities. quarter, During developing, business our intelligence deploying AI to received Next-Gen security and first support additional integrating

will support won a new solutions also support. our open which to contract team for intelligence provide source AI-enabled training extensive and program We

technology solutions X more decades transformation as We win focused services. than partner Azure. Microsoft in continue the emerging of experience on to Leveraging digital contracts and leading

contract quarter, our IRS operations, digital expanded with services. and ceiling IT provide During engineering the management we transformation the services, application to first

broadened our work also Executive We instrumentation. Program training Army's and Office for with the simulation,

I technology full forward ranging XXXX modeling logistics turn services and support. over With Army project cycle and our to life particular results that, For office, we first the provide quarter project will Marie call emerging guidance. second and from this simulation discuss to the to integration quarter management,

to everyone It's Ted. speak Thanks afternoon. great this with

billion were our compared and commercial down and government were segment $X.XX our Federal of of million, near segment XX.X% year. up business. X.X% X% totaled government stream and sequentially. $XXX.X Commercial revenues prior revenue from $XXX.X end in our high-margin quarter from year-over-year. up the million, the the reflects of First Revenues from the million, growth up $XXX consulting top largest year-over-year were Revenues guidance our range to Revenues commercial consulting, X% Federal

$XXX.X revenues. XX.X%, last to margin from for the mix basis first from for the expense points of XX% SG&A basis volume expenses of guidance was expense segment, included margins. lower integration quarter that prior up segment basis million in in margin prior segment a fixed the due points also our in for ramping due to our to of estimates. due the Gross XX.X% segment the Turning up have gross margin or to year Gross or were a acquisition, were quarter a the XXXX the XX%, higher well growth in down as $X.X revenues consulting revenues higher year, XX firm XXX year. contract our which and government points Gross margin Commercial a planning million creating of revenues. included was projects that year-over-year mix Federal year-over-year, comp. government than was not compared XX.X%, first XX of revenues to price commercial primarily down of commercial was SG&A million quarter difficult strategic for as Federal $XXX.X in

to expense expected, increased As this past related interest interest rates refinancing rising year-over-year August. and our

March expense. year price we XX rate This and the at our XX plus successfully In a to first our interest XXX was basis in B. mid-March, prior the closed Term however, repricing a of reduction Loan spread. on high-yield we SOFR refinancing Going basis point reduction refinanced points, see our will forward, from

of of million, of savings result for approximately repricing, of full per savings by year net $X.X year interest followed million a we fees, anticipate thereafter. interest the As this $X.X cash cash transaction XXXX,

$XXX.X was was For quarter, Adjusted adjusted margin was income the EBITDA net $XX.X EBITDA million. million XX.X%. and

end, we quarter reflects secured net impact full EBITDA adjusted million had senior and million, fourth as every beginning approximate our X.Xx. revolver margin At ratio the occurs leverage move calendar reset, at and downward point to tax payroll under equivalents Our we the first and year XXX cash basis quarter. has the of which was from an our and cash were $XXX $XXX.X availability the

and per was cash ASG the increase market Board a given Free our dry In make approximately price our share. We the and we We flow generate $XX.XX With of improves. expect our million for full meantime, attractive powder prior as of flow free the cash have week, optimization. our indicates XXX,XXX flow to ample of free their revolver, average continue Also, statement. $XX.X availability cash size $XX.X the when upsizing valuation. Turning acquisitions repurchase cash Ted to program Directors M&A shares at under in the we earlier, to million. this to believe in deployed repurchase shares repurchase quarter $XXX to new million solid share noted this and strategic X-year confidence repurchase plan, million replacing flow. continued to our generation share $XXX approved ability an cash our and

Turning to guidance.

Our of financial on the conditions. quarter estimates current supplemental XXXX are our are earnings and release forth market in materials. for based estimates These set second

billable second Our XXXX. estimate assumes days is days in period year-ago and days billable billable more than of quarter, the X.XX QX X.XX XX.X which than more the

With $X.XXX segment relatively demand We Federal of to our the $X.XXX we be we while background, services second second commercial year-over-year. will remain revenues will consistent be conditions In quarter similar quarter. and to that for steady to to are billion at expect this the revenues anticipate the market QX, in billion estimating segment, first. government the for the revenues IT

for $XXX We and are I'll to the to turn XX.X%. EBITDA adjusted Ted estimating back $XX.X call million $XXX XX% and adjusted remarks. net of income of $XX.X closing Thank to million to million million margin now EBITDA of some you.

Thanks, Marie.

macro for it's and today's with continue as from discussion, we shape for solid evolving To and match that our mind, grateful spend accelerates. ensure a our capabilities I'm hard the to current of be offerings be our performance in service IT proactively our to client industries, essential clients quarter. to of support. as entire clear market and look a they our backdrop. over cautious business your we for against spend remain certainty in is our challenging their As more clients ready as the needs IT in model operating With foundation that when Nevertheless, resilient work commitment the maintain team our past well

of Your efforts are a client-focused deeply appreciated. I am honored to talented be such part team. and

talent the IT marketplace. on basis just-in-time differentiates one IT exceptional in is Sourcing in itself the ways a many of ASGN which

pricing flexible a skill of A when model flow. permanent tailor acting sets Our talent labor, clients the project a that a force with our force our recruiting review relies rely aspect or apart diverse our that structure for stabilizer with our verticals integration. flexes provide margin and they a contingent if pivotal margins data revenue, soften. solution solid and provides ASGN from model contingent that SG&A need, along industry short-term traditional a longer-term whether as and Leveraging deliver contingent companies a labor across allows offering variable consulting exact on onshore cost to cash revenues us platform and is industry-based This, gross and differentiated on scalable, with bench. Azure to X us that sets enables labor our for

quarter not seasonal typically and have growing, that As in our is right described, in more just pipeline evident from quarter. historically releases projects discussed, anticipate in do the second to lack are has our go-to-market I spend our longer Nevertheless, That ASGN as seen in winning are due see IT the consulting and uptick building said solid the we part place. strategy IT revenues in Marie remain and we in ramp we of is first bookings during the consultative. the and large budget we duration the blocks

phases technological cycles that and clients throughout call economic our IT the teams to joining be spend begins weathered again I'm Operator, at to quarter company's forefront productivity have and first open their XXXX the call. innovation, our history, will to next Thank for our you We questions. of growth. many to accelerate, our lead when please confident

[Operator Instructions].

question William first with Our from Romeo of Trevor Blair. line the comes

if could It was I message quarter. the good one, throughout speak trends First degree seemed demand just last you maybe stability. wondering of quarter, the maybe a to like was

typically sound this doesn't think I likely that's at as you point. you a It in uptick QX. revenue said, see like

just past could and you forward. how was outlook going if how client the that conversations in I comment demand months evolved So informs have on few wondering your and

in the just seen really have into tone seasonality and it quarter, I'll from now weeks the In the steady adjusted first the the would , say a and commercial, steady. or conversations remains real days fourth more of here say fourth change and second quarter X billing the in into I just We're trend, no but third just here client same. the first of for

of steadiness. seasonality So the will. the move are see We that now. into a some of where don't second, little and a volumes out just norm, if right first is the you your you ramping out but we see up, typically it's There when here,

On really the quarter Federal first side, growth quarter. we the solid in a had

an that procurement action I to now here awards. officials begin and submitted going see weighting some have as we're that on these things hopefully to think our of take we

here the muted pace while were hoping of the first into so up will and little that a in second third. pick in the And bookings quarter, we're the

a those projects was continue could trend there? of any toward demand. case prep of they for as for trying your evolved wondering demand cloud way of how any that closer some clients in starting stage the trying even or to move to the work for use through changed Just Have Have new quarters. get on along? one ASGN next drive I business just for just then sense moved the data foundational And to AI. several clients AI

way it I'll like start. right. worded I And you you the the exactly have question Trevor, because

a the side it among of that of discussion going in in a use contemplation, of continues. mode, First cloud of The case terms staffing and of data on highest and consulting place. even business. in all, side structures in are work lot solutions our is the their we the a you have data of That do will, that if Those setting their question taking cases that's just that. them They policies, and way sets And mind not yet, data off. they're but the would they're of appropriately. eventually I think setting think, use prepping I because support in governance a

in think the there's progress, and There it's a first script think, Ted one in I more read slow engagements was featured of those I'd We steady, in say AI but while our robust. slow. of ago nothing engagements definitely, clients. but that one to I And So telecommunications had short you he quarter.

So we're but of data, that in that to see, cloud, certainly doing cybersecurity, those scale it's work areas. would was any nice a of outreach not the the thing it

from question next Jefferies. with Thind Surinder of Our the comes line

maybe in going the in that some color projects question, started are like few be the that Because to large that can provide the a Were subsequent it first stable. around quarter looks For relatively the things was you there quarter? revenue quarter-over-quarter? commercial consulting growth you

So consulting trying segment. trends understand to the the just within commercial

rate, to I some growth booking seeing unit. we're would X.X, in elongation also Well, of And lead you're that you we're projects. you bookings consistent think look, while at go back, if those seeing Surinder, which

So of those there's bookings. a slower burn

mentioned also it to than weighted renewals it's is new work. more We to that heavily

with things on think I mission-critical so working clients that on. were they And continue

or see were one back started question, this that things that's I your thing maker? part think was any got here big why original extensions But to X the No. And that difference big there of so we work. of

assignment contingent some Circle math then Creative the additional maybe color subsegments the And placement. of in labor business, on part the within perm specifically versus the like maybe business

we the or you what revenue beyond are gave growth number how doing --? specifically, assignment And they

you last understand Beyond to the in that us understand stabilize things are can help additional if just any quarter? Just that color to started number trying of provide that top we have relative line where to maybe terms in can trends, maybe cycle. the there's

I that they're that's continues. totally it say new, here. would I don't stabilizing think but think quarter-to-quarter I

as the not at performance here business foreign the and into you first you the the there's metrics part If well. and the inflection that look piece for second quarter but business, you just for a that, of the some first week-to-week, telling up, slope of steady they're tells month-to-month throughout assignment is

with Our next comes the Markets. Silber Capital line Jeff from question of BMO

This with automatic how margin on throughout stabilizers, for coming the you was in what of just I strength relate move defense? does Jeff. from we Federal is government the negative aside terms year, as to mix really the levers have do And that curious in quarters? pull of Ryan element the the

see last I in of as business of not think growing as you're long on in effect Federal we're commercial, the and growing the piece out. to that, going play mix

variable think to you that is cost a I levers the first business have about your part we mostly our question model. If pull, mean of to model look,

more commissions, is So of those compensation, of our XX% things. incentives, in type than bonuses, SG&A

So things itself, cost bench and cost with its resetting not a the of on move kind And will of we not see of seeing this levers natural attrition. is something their dealing now, stable. moving play are we're incentives side sales margin that only goods, we the continue different gross the year and be out revenues to for big lower and if also the are

it say areas areas where certain in letting have demand, attrition continues a see may backfilling and be would to week-to-week don't those I it resources, we be So replacing we demand, just thing work. we other We're not monitor. that we're that

like started there see Is leg and that seems bit have you'd consulting It anything divergence X? And larger over the stable. service on your relatively last a the down of just like is to It more weakness a couple little between a of months. some follow-up. business IT call the there providers like to seems out

clients heard offering me and think continue rate real lower way many projects before, to you've for it and some productive say a versus initiatives the look, to a really to critical consulting Well, our of times big theirs, traditional spend keep maybe their done firms. to I get at as relates than

So you're play here. that I out think seeing

Now while count business first quarters the here, I there's think to and I fastest was 'XX the in stability will tell lag it some a in the trail part peer of to us the not latter think seen And that's say we 'XX, that. you've that, the as natural, during group until the for but you, assignment the consulting did expect lead I fall well. for just

So very I'll important them. say done. have client go solution just that order in areas for critical back and most we these very price a in We a get the capable to to these at high-end things are productive and point come

they're lever, what that's so playing will, think order see with you And you our it. in out can And to stay in numbers. pulling the if I

worth mentioning it in not Ryan, overweighed that is any also, Ted we're one industry.

us are that as the of in others, X be consulting talked well. So certain we're or the about. those more by And industries you in weighted much industries. while that well to as spending in we some as spread the pretty in We're industries. There are And across sometimes industries that IT affected other area. I X they helps businesses still X heavily may weighted thought aren't up

the next question Kevin with Our UBS. McVeigh comes line from of

around earlier, sounds Any it the M&A know I isn't the thought. maybe think I over I the sequencing like appealing the the on congratulations comments it thoughts as you any I wonder, that, if just X And years, buyback. on replaced buyback? as XXX. sense the buyback? then of heard And on sequencing again, market And it's

was in $XXX So a of can just you help questions today? step that. $XXX couple in net So up? it the So it million is was replace us rather the the there's what So million?

To we your really that was and question your with it's $XXX X-year period. $XXX what was Mc? million, for But a original point, authorization million, the are replacing

have to $XXX down million. We about

about And $XXX so the million [Indiscernible]? replaced

always have of at is a least not on to the intention year, book. authorization more, if our And

increase point, higher we actually do. at it. we time, what typically, see So your did some us it this would increase To typically you than would

did And Or normal year? then you macro? just of new? something terms of the anything the is that? is And a lack Or going that that uptick, into in that the that is drove seasonal that function of expect

And Kevin, the you're and what? uptick, saying

some that heard You anything hasn't right you you right, that in now? QX, said driving that is there if macro? seasonal surfaced yet. see normally, Or and uptick I the else Is the

you it's you I Kevin. when get things reset Look, projects holidays, macro, across No, the this, naturally you know come think as restarted. and a as end

surpass that start in weeks through you're of spent before to time And couple the January, you moving holidays first maybe January And the December. the that volumes and in get level end higher. you You by lower of to the out second at finished of the volume on you the recouping where of the were quarter. quarter, grow

any holding My as seasonal to we that and business spend, to the here and budgets they're close. I [indiscernible] their where client is they business outlook the think performance mean interest go. their have what but trying spending. IT does headed that you're take not is trend normal them seeing for and to in own and that back here gain They're tight confidence acceleration very are in rates is just not the steadiness because and in what

little So for is to all play issue. of ready this bit on watch macro spending a we Certainly, are as a game a line waiting just we're I macro had a those the underpinnings go. start on here out. And the more think there. things IT Everybody's

scope early, you could. relatively way been Gen the the what Gen related, of it's little percentage but any whether to work's of much dimensionalize And revenue? just through much Can been think the I just it's of more how AI one how bookings still or about work if AI? has I know

see the cloud, need in at it no while those material there's see does or We activity. on stuff, things. conversation conversation around get kind going. projects started to to of where that conversations in look spend Very little. But bookings or small be some of of about think data We real Kevin, lot going there's a

a very it's is that. good think small which that around to real fast, the thing. push bookings but have It's that a yet is come number. We And I growing on very

think false just go. and I is is a ready teed to everybody not this getting promise. This up

of comes Our with line the next Heather Bank question Balsky from of America.

challenges I'm just cash also as about use the of about curious, you and term the think on especially your of thinking midterm, for near of And buybacks. question how are the you strategy, back portfolio? does like? in your especially given your the what where out would still want to there, are pipeline that that fill And environment M&A you some in of look the

pull and M&A return it highest do our into Well, is bring we There can across better game. where certain still and tuck-ins we're and account deploy we capital acquisition. that. business the look, Heather, the this capability, we we're the on There the places to portfolio that name areas an organically very other build are are when where really best doing are capabilities we that we clients can strategic off of important believe our is making way

terms think GlideFast of go of a through a I partner what's insights lot have that. that point acquisition Our into we get of the in confidence really because is to we done. example North work by their the are in what of decision to we clients our time become And a area in when American get the premier pipeline ServiceNow thinking great good about exercise; we have to

sell. have And begin we immediately so that that, from backwards we we measure and know that work you opportunities we and to can, certain could will, if

as is So go will the and premise remains premise, we forward. that that important remain it the

a just it's in here we're seeing here a of commercial think assets in real where IT especially you're to for market. kinds spending moment many, large come reasons. in And the There's any a to degree. where, quality all if not I pause market,

I little expectations their longer. reset where market to here those on think It's all a not valuation while in are. They're companies are will. not of It's combination to hang willing for these of things, thing. able a with down one you if terms valuations just maybe

to attractive continue So do. M&A sized of cash meantime, worth a quarterly to dedicate there's in years. cash not repurchases we valuation it meaningful Marie repurchase like now, very X authorization. And because resetting is right And this -- head free It's as flow. years' is to point. free the our to X any while We our flow about looked normally mentioned, we share opportunities out is

more same, where in been few the so will, if from the you And we've quarters. of last

Tobey line of with Truist comes Securities. next from question Our the Sommer

at look across or guidance or business for or X the it's the could regard? your example, And ago? it easier comment harder that in forecasting sort you you maybe than If business, was segments X months

room wouldn't look, I'm was months say more than or I here looking X X it's around Well, difficult ago. Tobey, the it any

on certainty in have back you when win difficult as XX years. But you're If have down really in really that consulting, and you're consulting to you a several volumes have comes certainty of good win the of in that. to XX would you be you up And move was it it ago, increments, when little a footprint IT didn't going when work could forecast commercial, more next booking business, large that for going a you federal, over I side staffing we shorter working on in you. next months; to to X say in go quickly and years the things the the because in good kind

business forecasting over improved. of gotten visibility and the think long the better I We've haul, So transparency. has

backlog. confidence in bookings more in have that the We are our

And And out like few incremental in edges, X mean much around less of little too been so in Federal the last solution will. or hasn't only we about we gotten played we've a more one that area than commercial. in if in out. expected came X more I stuff that's say change. just little quarters there, itself a or another. has played are we that in million the I part a But one you that's it thought. maybe the expected we our sometimes quarter variable and And really licenses get would

what us the where the are. heavily stand full-time company to respect lean of know and how or IT mix that With X versus the commercial today? let more in the to you is today flexible And the sit of one from does reference choose strategies on points past labor the because compare consumer, of maybe way flexible X you

XX% experience subject in-house with our XX IT So we're about industry we've expertise at delivery time about nearshore any that that of capabilities as XX% Mexico. staffing matter consistently our of is we at working labor plus to it Guadalajara, the consulting to in that commercial is seen projects business, pretty from have contingent our IT XX said within one center

you is meaning up have opportunities, wanted dry announced little share IT to than see the more to to the guys the on cash too follow doesn't repurchase. improves if make a share more it do a It you environment speak in I And not environment, it analysis can a those you How is lethargic last repurchase the stock, allocation capital through question and the quarters to that go more. and down you And commitment slow husbanding a subtle? you of just much to repurchase little? could is when spending acquisitions that powder more longer, market to down consequence

pipeline we I purchasing what with toggle is you've part of noticed, spend programmatic a just still see time except cash last to to had we're we've doing think the key, because got in a there, to way. quarter we're And that standpoint. you if repurchase although evaluate, When the a the of time opportunities share also, if will, hard we Tobey. on plenty a quarter, desire we've flow, very in last getting free M&A

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leaves counting with EBITDA are that X turns that's about contribute. might really now, they their And beyond so where even and without we ship beyond that

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Marcon Our Baird. with next question comes from of the Mark line

and So talk like terms varies probably had so consistent are there, specific to but perspective going they're your to they're waiting. clients, you make hearing that ceiling forecast? for? yet, Rand, Is message that, of a to client waiting got budgets yield same inverted concern the interest would Ted budget their across to It what I'm wondering something level Is the and with rates? that's confidence a the occur? in lead we've specific curious, just curve, and confidence what from but when we we're haven't a to improvement could space their the are for some I'm regards still it to an of hey, that something the recession and would by elements. you they're Is there by trigger sense be a exactly getting it perhaps macro spend. the that company But about

me start. Let

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the the get what same what behavior that they're go On trigger can know coming. a we commercial side, you okay? through buyer It's that do coming, but comes thing, down, don't that sense

our watching all IT X matter. spend I those and Mark, of this would people one own who's say moderating As

a We're for the just IT. economy I our But certainly we in going to the all at that on ambition the at expect have our continuing critical worried said. may performing we're about worried be in finding reasons own to terms harder to that think as line where do of level of about bottom job things. a and we invest you would balance invest We're here versus good an going bottom most a line. the we

I so think you all said that things And X matter. the of

that that -- starting thing to wondering bit end the things you sort those of And becoming. was about was little a then How oil hearing for talk the around a a that what we're up. premium interesting of gas sort one able project obviously really company. I'm could of those how just you Databricks are big large lot about attractive up like practice you're pricing sorts had and discussion Can get?

over providers, talked Salesforce. about a think, year, with Snowflake, technology, and if we've the Google I our we've at past Databricks ServiceNow Mark, Microsoft with things both made you and cloud and the look certainly Amazon play hefty

These care. We where in fine are demand health And are the and up world, are it's maybe quarter doing So we're watching baby our they They of or need that like by putting that part quarter. technologies. of care a is that after reported is because be those on technologies system. play to their quarter health boomers greater is to technologies. the want in easy. position Well, industries We seem certain after it care hottest some business in necessity is support be money health flowing technology. our to them the

they're at be So for through things going fight positioning position the streaming work services we a between see interesting you services know streaming that there. It's they're greater and in the to the work see have can in mentioned how There's up telecommunications that we certain which ago, what cable and unfolding. and There's into be this and bit. volume. huge commented And of even have a in led year them, them to And problem Ted coming I technology volumes we've and tech. telecommunications pricing. us our now a it pick certain out with to they seem little featured and over

So banks different question a different story. is

cases same the data technologies, That's AI, is watching, right game game. to as in whole mapping are now. trying which just and So the important you to some structure these of give to potential we And else. what the sense know Mark, data I'm of the everybody we're to critically use

tough. And did is the still discussion on earlier mention in side. that of consulting follows assignment some trends then that assignment the you you see the Obviously,

that actually momentum that anticipate this some at you? the that year, your end point consulting wouldn't you're you things, reconfiguring declining way there, Given up relationships, have the you would would

us we're in significant quarter a year-over-year to flat Mark, not it wouldn't our that it's slightly look, Well, growing trend declines. going that bookings Could does couldn't, or have but digits. I low that tell to really single vary negative? in promise

down, that well, really and slow us really completed Could that slow indication something just on XX of in the over gives now. that's bookings where then but they don't so they it it But I down right because to into really ramp number months. and visibility up, work that world sure. we it on no back think that happen rely be there's do the have to you that And going to XX rely next good

the worth and past is X.X year, placement. said many years, in is Ted go mentioning, Ted, perm to times it Mark, first has the

to that would thing. you're what's reverse second of of to go to about sort think as discretionary consulting. Well, things The be like it, creative, IT to The start would that. we next go to of spend seeing The happen out world staffing. if be going IT last go you going the thing the HR, probably or come around see

start equated perm placement. seeing then IT areas work to up, ultimately going all You'll consulting staffing, then the discretionary and to

down, believe presumably it unfolds you reverses If going the going that's up. when way it that back we're

the gives So another consulting mentioned, as Ted in confidence bookings, that that's side. us evidence besides

to And we I'll now over back the call the have turn Ted reached of for end remarks. the Hanson question-and-answer closing session.

Great. to evening this X X. to thank about quarter with you here want We look I great for for Well, speaking a soon Have everyone release conversation. forward being our quarter earnings evening. and

Thank this concludes today's at for lines conference, and time. you disconnect may this your your you participation. And