ASGN (ASGN) 23 Oct 242024 Q3 Earnings call transcript

Greetings, and welcome to the ASGN Incorporated Third Quarter 2024 Earnings Call. [Operator Instructions]

It is now my pleasure to introduce your [indiscernible] Kimberly Esterkin, Investor Relations. Thank you.

You may begin.

afternoon. Good joining ASGN's for Conference Quarter today Call. us you Third 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

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

within for ASGN's guidance in revenues Thank thank and you Call. Market for our range. billion were remained the $X.XXX of second services Quarter you, and XXXX the Earnings joining demand quarter third quarter. Kim, XXXX ASGN stable Third QX to similar

of in year top commercial the and solutions. of of terms guidance margin third our XX.X% In ago at XX.X% consulting period. Despite now higher-end, global XXXX XX.X%, and government midpoint of towards uncertainty high-value line We is economic results, in from consistent revenues. remains. IT approaching revenues our total had of EBITDA reflects relatively consulting, of up profitability, the continued business revenues adjusted quarter range was consulting the XX% evolution of

road clients and federal we that in have is government however, IT enterprise a to our digital their spending. not our long-term imply meant to increase see meaningful transformation deviated their pent-up our the their client crucial from quarter base. the yet a need This commercial ASGN's commercial As sign that a maintaining of result, Rather, within have is bookings services caution, are customers in path. continued demonstrate and for the and map demand know IT to third advancing services advantage. Strong customer IT competitive government

the early improved interest As federal we of IT an of continue progress government on capabilities we develop solutions, cloud, and data for through analytics, XXXX Fortune applications. our final prepare our spending AI and and and year environment, clients, cybersecurity quarter core to in the areas to including

bringing adopters while We our solution new ASGN's quarter are of by time these differentiating business capabilities across of to being performance. same segment the we will provide best some verticals, third examples I bear efforts as technologies. unique review at industry

with by begin our So let's revenue, largest Commercial. segment

X.Xx on XXXX segment $XXX.X and were of Commercial by services mid-market business. book-to-bill large in our a year-over-year Commercial also growth sequentially. for X.X% our Our Commercial Fortune at segment driven ] XX-month Consulting Consulting [ revenues Commercial improved companies. revenues Consulting X.X% million, bookings and the up basis. were trailing quarter Commercial

than weighted new Although new each remain work growing towards more renewals consulting is bookings work, quarter. our

double-digit modest X growth [ quarter year-over-year of Total commercial are by single Consumer Consumer growth in industrial modest and and we also third industry led the digits saw digits and from year-over-year, industrial utilities commercial sequentially. a improved double-digit growth was accounts mid-single revenues which saw and This to X digits in also as materials. On and an as we quarter. The was e-commerce. high sequentially banks returning accounts verticals. growth industry sequential basis, banks, Services growth improved at Software with X prior improved were high after which services, EMT compared from low of improved energy X materials, staples and utilities Services consecutive flat driven which growth Looking of in and the second in well XX.X%, our segment, quarter-over-quarter by single which big in single the digits perspective, Financial improved driven quarters verticals. within insurance slight XXXX, digits mid-single Commercial by growth by that saw ] quarter. driven regional decline. Services, Notably, were quarter-over-quarter Financial improvement in from vertical consumer the a up

the payers second within Although digits the were down mid-single vertical and health industry care quarter. up year-over-year from care remained vertical, the sequentially, health

including high-end to our mature continue and opportunity sets lengths solution work practice, capabilities to we strengthen our vertical these project to architects. contract sizes described. us industry adding teams, select Adding improve enhance expand the skill the our provides performance new and our solution I As our margins, and consulting selectively thereby, we just are with

aligning are interest of architects We our clients. our with services solutions greatest to

the products and are most modernization, are cloud These services and seeing of AI. development platforms to the traction data and realizing that all advisory cybersecurity value Solutions application generative migration and foundational and late of support. include modernization,

is AI, completed there beginning clients to are, that and deploy work they data before While can infrastructure however, leveraging ASGN's core enterprise-wide data implement analytics specific their capabilities. to still by portions and models needs applications be in organizations AI readiness much of of Gen

examples. Let me few provide a

our model can team improve team by our using data. store, real-time compared and series significantly staffing labor way that built centers. the manual forecasting clients' AI to AI more distribution a clients, one came looking the a to XX-week learning time at of data, and utilization our XXX and cost a industry-wide department analyze internal third This historical to and demands multinational our its Fortune staff client's legacy forecast to Leveraging model labor accurately for global reduces a data machine During produce model. quarter, new

brought address manual [ utility, predictive client, a team intervention. The another an customer in our limited with and solution For was analytics built focus solution system to on to satisfaction of ]. customer by for nearshore, scalability, way enhanced providing is entire a data a that and develop process, and accolades smoother need reducing One earning large verify needs. XX% top key manual and process a AI With the our intervention data sets decision-making, logistics our automated with them would Midwest team is automated customer addresses we onshore to shop, from technical their one-stop thereby new clients public always better satisfaction. Achieving by validation enabling are and automation mind.

to and provide that as integrity. facing our and cross-border data development, client This and team cybersecurity accuracy U.S., our the engagement systems complications, deepen large combines systems a saturation within other years and out increasing in offers technical expertise financial a clients' Mexico brought from advisory strategies to the improve we integrity opportunity For cross-segment of commercial along reporting consultants assess of with all application client while our of security work team will engineers center together government solutions. This delivery to their multiple as well data qualification. expansion GAAP data analytics our

practice a data practice advisory strength In commercial Speaking our major of joining strategic offered technical fortify financial qualifications, government of commercial talent we've recent resources the and cybersecurity to and strengthened or engagement, we our to clients. and help industry its engineering risk GRC GRC our commercial defenses. security our by institution compliance governance, support

the closely country health public cybersecurity We hospital to the a their entire with health enhance consultants also industry, the in to the a our turn working client, largest instance comply at of to key reimplement of care partnership systems care regulation. Also framework with renewed to multiyear one in [indiscernible] ServiceNow. industry

provider reinforces vision that's progresses. Each shared consulting the system's continued and prior ability deliver success. our Azure [indiscernible] [ illustrates clients' one and to come. our offering currents of over IT, an organizations, years IT solutions vital of ServiceNow technological with a we every these of project We positions clients' by fast aforementioned our opportunity And GlideFast team, such and ], to across installation the address projects ServiceNow ASGN's elite by now unique Our AWS and restraints highly leaders, team Databricks competitive additional the decades a as the Microsoft and is being and with the phase integrate others, client has This understanding implementing client strategically matures the [indiscernible], as as we're move challenges latest win to pursued modules knowing expand partnering and comprehensive for of within the to project. partnership by our the complement amongst our technology our internal relationships enabling capabilities ServiceNow, grow advancement to needs. positioning ourselves adopter value as of Salesforce, that fast industry us

the which awards advanced The provides basis. trailing our now to Contract community solutions intelligence were the revenues. of revenues the was IT civilian or improved turn ratio new X% agent. at quarter, and Let's sequentially. book-to-bill Defense, our quarter a Department for Net and on the federal $X.X Federal X.Xx the a XX-month government segment quarter, federal contract $XXX.X third XX-month billion segment, for end million, the putting X.Xx trailing of over X.Xx of the segment's third coverage at backlog to

from the reached quarterly increasing second At at as this market several our [indiscernible] trend under began and our and our this time deal won recompete quarter QX win in we for were By which ] size. time, is a rate July, expanded boosted same we task volume work the see As [ our previously including call, same contracts, quarter. quarter past to average awarded focus our IDIQs. has increased. rigor, the increased pace book-to-bill XXX% evident win of orders continued of We the earnings throughout and rate,

September, of $XXX a as infrastructure that team [indiscernible]. team's new was included as and third branch award and Department dozens with of team award exceptional portion IDIQ agency. cybersecurity of is our testament in example, institutional which data a single across in X-year the knowledge the bookings, This well agency our civilian [indiscernible]. our government federal million, will our quarter true long-standing Securities, For executive deliver cybersecurity qualifications standardize Under with a and this Homeland design, relationship develop is integration cybersecurity will of award, data security awarded of to federal solutions services our

having compete our of this [ and service generation advantage key cybersecurity [indiscernible] with national allow agencies, critical use a prototype CISA on threat passed other of being partnership increase Threat large civilian with of deliver is infrastructure against [indiscernible] important ], intelligence companies has to to other prototype, platform [indiscernible] Intelligent governments intelligence prerequisite a the and our By contract will the sharing steps, platform. Enterprise part cybersecurity of a threat the to future and assume resiliencies team program. ECS Given U.S. This a local and state asked to with opportunity security. streamline to along

we secured a IDIQs. the During quarters of past number and also third contracts of previously quarter, won

orders, law operation task domain. first providing for expanded premier our engineering agency, agency's architecture X which current and enforcement For awarded work, important we the our were advanced cybersecurity

to orders care multiple enhanced for task patient-centric several won for accessing Affairs task ], to applications we orders solutions Veterans Health, supporting we and key information. of including health support experience, veterans won Institutes National the For [ used provide veterans

orders took some it through. time to see task flow While

As gaining we in predicted, we pipeline and are new of recompetes work continues to grow. our traction

our customer pose. with government mitigates IT diversified business accounts our national to focus portfolio or risk Importantly, potential upcoming along conditions, on may priority, impact conditions our mission-enabling with geopolitical that election for of critical the the macroeconomic presidential solutions,

Before AIML in our did work results detail, more about growing for quarter our be community. Marie defense the if not speak and I'd intelligence remiss discusses third I

year training years, AI-enabled and X ] Intelligence example, quarter, AI-enabled top by algorithm with the ECS autonomous a exercises, funding and [ software row. operations kits available work and was Deltek government for deployment one in division Security National in a deployment, named to for As for and systems related many AIML the for and in us information AI tool has top August, and the publicly contractor federal provided third provider AIML a the programs. ASGN been third

to provide to results turn call fourth third discuss ahead talented team growth that our qualifications Marie While the AI, AI industry, architecture, quarter engineering I'll that, being core the and in quarter development to our expand of solution the certainly we to forth. With ensure stay and now recognized over of practitioners guidance. and business the to our continue by and latest Gen professionals are we

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

the revenues the year. Commercial X.X% year-over-year, quarter $X.XXX as decrease flat a were compared Third but to of billion, the $XXX.X X.X% essentially to were million, second Revenues from prior a segment decrease of quarter.

governance the from revenues As million, sequentially. segment streams, but sequentially. year-over-year and Ted noted, federal X.X% from a up revenue X% $XXX totaled largest $XXX.X Revenues Consulting, million, X.X% X.X% up of decrease up our our year-over-year, of high-margin were Commercial

year. fewer can noted attributed to revenues license federal the in decline As our call, we compared the to second quarter year-over-year prior segment in largely be revenues

licenses, these year-over-year. revenues low segment Federal Excluding improved single digits

the guidance to last increase points year-over-year, range third the integration was of settlement planning and third in quarter an due of the XX.X%, accrual, year for quarter million the margins. margin compared the margin up labor XX basis third higher Gross SG&A for $X.X for of higher for primarily along not in segment the for to of expense from in end of were our was XXXX and XXXX. mix is with and XX million, consulting at Turning year-over-year, quarter. strategic XX acquisition, mentioned XX.X%, both expansion $XXX.X was higher up the a Gross million quarter Gross to segment margin lower reflecting which of $XXX expense as revenues of XX.X%, license margin guidance quarter also was Commercial of points our well federal included in legal basis these revenues basis million $X.X which estimates. previously. SG&A a mix as margin direct points expenses a also revenues. included the government top work,

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

a cash net ratio flow. under had and secured million, to for $XXX.X million, quarter $XXX.X $XXX adjusted of EBITDA. of availability or X.Xx. approximately Free leverage At quarter we XXX% and the rate flow cash were senior our our conversion was Turning cash end, free equivalents million revolver and full cash was

to disciplined driving allocation, initiatives stockholders, find strategic opportunistically long-term invest a capital to free sustainable approach enables sheet. healthy a shares high-return following to our value a balance balanced value leverage, robust By manage to that key can maintaining cash Our return and growth resilient and ASGN provides while flow prudently repurchase our advantage to stockholders. and in and we opportunities

we shares of roughly market million X deployed $XX.X. the price the million $XX.X for an repurchase Given average opportunity, at of

our our We ample $XXX repurchase available. readily have to availability have make share total powder dry when under solid With million revolver, free [ approximately opportunities ] $XXX more flow under and million cash remaining authorization. generation acquisitions strategic we become

Turning to guidance.

a billable quarter, Our the estimates assumes in headwind day year materials. and fourth fourth X and the X% supplemental set more quarter. our quarter the days market third are X.X of financial equates and based about on XX forth days XXXX period conditions billable that estimates fewer is than the for than in ago These fewer earnings in current generates days fourth are The sequential to revenue. which release quarter of the

We quarter and expect our market for similar conditions quarter. demand third the be that to services fourth of in to the

million the seasonal fewer a While third spend client quarter our and quarter along in a IT EBITDA clients' of pipeline income quarter. With margin, in to some the background, not regards now EBITDA XXXX, million bookings estimating work, decrease of fourth call Ted for to placement closing this net sees to $XXX of $XXX adjusted sequentially are in XX.X%. Thank we $XX.X do adjusted billion, EBITDA perm million margins of with furloughs the uptick $X.XX margin million revenues. indicate $XXX in With fourth I'll $XX.X due billable typically QX and to to back days traditional XX.X% you. to revenues an to solid remarks. we turn anticipate of for softness million,

to large moved Last our values, and clients. sector Marie. government ASGN's industry-diverse, belief core on the our by our focus in quarter, become are IT services discussion enterprise and Thanks, consultative including I federal ended reviewing supporting more commercial

competitively fast on services technologies market on clients. leading and hinted our spending company's agencies Another being adopter represent X% call, anticipates AI increase A alike, bring value to differentiator of the priority of maps will by sources XX% of by global of and strategically that the Gen at intelligence in year-end. road our core a map drive is same the that as list is and of clients' include pivots to top that sector, new AI of integration start the of today's spend of corporate business. our our IT can Gen IT enterprises road we global central federal ISG total our that a own IT and one XXXX while technology upwards of AI, investment a IT to Index, on undoubtedly the business ASGN focus positioning business for of making advances, clients. The model,

fully capabilities across work companies their will modernizing up enhancing While must lot automation be and data unlock enable in cybersecurity a leverage that can infrastructures cloud frameworks, be AI for leveraging their ensuring stacks value, to to and value and and tech needs as to driving as mind, remains and company in our need foundational cybersecurity enterprises. With of realized, data management the lakes increased to completed data Businesses enhance to benefits compliance. of there before that order that be well Gen cleaning AI regulatory improved.

are joining support service to us deep strong All forefront the questions. and is to come. That this bookings at concludes dedication extend areas IT years differentiated diverse now no places base a at to support our client XXXX prepared doubt for across you our remarks. call call. Operator, past of my clients' is I to the opportunities IT open positioned offerings your of industry. heartfelt truly your of gratitude advantage commendable to ASGN take Thank industry the relationships verticals, third many these the fostering to and long-standing client everyone core maps road ASGN key our to again to quarter for quarter, for please X want ASGN's and and with

Jeff comes first from line of Silber the with Markets. Capital Instructions] BMO [Operator our And question

This on Jeff. for is Ryan

you spending the make and the would you ahead? what you monitoring bullish IT see digital trends and transformation curious need environment environment more to that are Just what on

we're bullish. underpinnings mean, IT their to to the drive think as to there term, period I a for of of the clients road the here be of are back the drivers that a in business help question. lot There's I time. over of our look, going long we our thanks Ryan, remarks end maps

think again, normal clients have confidence I term, confidence, this is in to needs. to our here -- in watching we're IT invest near is just so that their levels what more begin the at

a things of two that's here. so And balance

we're economy making like some in the are like there's interest cycle, rate overall, I the elections. things -- I There the think think progress.

move and but the confidence investment of business in otherwise, road that Some of remaining come with create we'll things them. going to IT that's those cautious, be clients hopefully, some confidence, to other and heavier things, maps on and going and to inflation beginning pass serve are have a right there will through and in business their

Do assignment Great. commercial think couple I troughed that in at kind relative the just just comps trend you're And core from now then you consulting the last year? expect over the was to the point the how growth tougher to past curious follow-up, for trend has this of of quarters? that you next

It that things. a days if kind -- and at stable are the we're billing those Well, place in we adjust I think other you past over at growth single-digit few of low quarter-to-quarter, for we're seems quarters rates here.

bookings here that remained very portends also [ and forward. going So think, solid. We last ], I quarter, at XX the in growth were

goes and customers higher just and rates. them again, performance quarters at you at a we've -- more we're able they we the grow what to the you up to consistently for fully want I around look growth that, our be that at where look to metrics all several accomplish. the place book-to-bill, things to where open put past discussed begin up single around But think and of back invest So if kind here single-digit low over to at in can we

tells tells us good the there's demand. demand and So book-to-bill pipeline, us good our

a not So more of I it's it's win. think if,

comes with the Maggie question next of Our William line Nolan from Blair.

different additions? what architect projects? elaborate may strategy you your emphasize representing shift terms when Is the you how this manage and you on a in go-to-market of talent or Can your be for secure solution in

take would of Rand an call I else, enhancement, Maggie, that. more Well, it right Rand? I'll than let anything

the our accounts evolves features, needs go-to-market the solution and we and on that change, the in as the accounts There's technology focus portfolio intimacy growth that and is absolutely an strength account. with of of the clients Supporting and evolution the our the Maggie. our

requirements. building security we're So for example, as algorithms. saw today, security and was you around actually searches more Ted's into remarks, quarters algorithms for more past AI, featured getting we're governance forecasting, -- updates, And and in in better

account just requires that that we support solution But be first, definitely at second, continued it's in solution and have good both. So of accounts strength to portfolio.

first That's spending with maybe kind for XXXX share helpful. us some I'll set And this, of you you perceive about you maybe XXXX environment anything just the of ask alluded expectations then the to explicitly that your questions, sentiment of how to IT client about can budgets? and but on build on in terms that of current

IT really rates of comment on good first in is both can Yes. demand, what in I questions the that Well, XXXX. in and you back tell was, I can't spending set bookings. to pipeline [indiscernible] But our there our

it growth the in So portend future. stronger would

that. to or we what higher pipeline, is little is expect, we the I'll we think question to what we'll at can I here in begin early rates. the our I spending But it's we does and And have bookings, call, and see what to this normal more and just keep like see we like to tell that news develop? when in when monitoring positive how that think see a really

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

there you provide business the Circle? or maybe the Can just it's business, Any additional on that some within of just the or assignment seeing might maybe color IT whether trends you [indiscernible] any be stabilization there, signs Creative

year. the mean, kind a gotten I we're It's generally That's perm it bit little billing not placement. first carried adjusted It's would in Surinder, the weaker. here saw through quarter-to-quarter. Yes. part stability seeing days, I develop new. We of for say of

into a year of gotten weaker. we've little gotten part the has as that bit So business, the deeper assignment

that fourth where levels. part that's primary business again, their we're they the expect in the the go strong to place for of just I be customers seeing spending We control consignment the is, what look, quarter it the same because that's in to for think not business. But a

a they've signs break we're piece. anything than business And And so the both while foot we're and else, Again, assignment in about for seeing they IT consulting up open of here. their stability, more want the for to spending. on continued this in keep there is that looking the the spending part bit to some

following of helpful. the are the area then context on Gen AI productivity staffing That's is And for historical How an improvements? Is assignment there offset perspective forward the less a look risk to up meaning I going -- this that count there that idea a the maybe thinking in need is guess, for clients to more you relative about model some head clients aggressively look from for solutions where, business cost, the support levels? efficiencies. of

I change I as they need, and the change, skill mean that always, clients, evolve. technologies think the you'll see sets Surinder,

Some some inside Other us to ourselves things make modern there. Opportunity is you to to the talent more will. legacy. own will doing these in will clients in more for today demand, to be opportunities go we're But is going become if order AI which of deploy and things productive. of still for already need our think next-generation I business,

all that I still technical going so our needs address of to business great also those to of great opportunities. their customers customers. going need need to to both And solutions on we'll think talent and they're behalf are be doing But our

of question Canaccord with from Our next Joseph the Genuity. Vafi comes line

that demand the Was more incrementally assigned there. is terms in anything and like of [indiscernible] -- maybe flip better bit drivers? or there Nice we to down [indiscernible] I little Or consulting services see vertical in ] it any financial of [ or is [indiscernible] [indiscernible] the a results. sort thought drill

Yes.

takes financial asking Rand is in Rand, to So color one. this business. assignment Joe, consulting performance going there on part the I'm the take both and and and services in puts Joe about let or of

for you Yes. spend. there just a breaking Joe, But little big important bit. up is yes, as a us, but notwithstanding, and know, IT sector, this and for you were not

results. So that recently we're Regional Bank good the banks the which by Ted improving. fact reported some was the ] pretty buoyed segment, big happy featured have that We're [

think that thesis the have -- Ted opportunities, we we'll of in like said function well, we're these the I want tip side money, a spending the, now staffing our just mean the and you The segments. capture and we've penetrating is to I staffing of which these I comments, that like the the side down. We're some higher is I of they think thing, can the and we and I the see resulting with we're year-over-year regional banking. But except into these on to cracked many the that watching they know will, now numbers of of sequential business still in carefully. important is more accounts in it accounts ends, consulting spear. staffing at very we for -- doorstep fact us, both the that too. if we're start the think, we're consulting feel that

can budget on next year? kind for then have does the you the or them, year? year based do on it that and just But with any of think some year-end about they're budget anything? they Or a left there's think how chance any for your kind kind of in down better. with thinking you can feel this Hopefully, just the of road like Or year hear Great. do me -- the flush budget over what's also little kick of remaining discussions you do for enterprises

to you Yes. up that want Rand, one? do finish

some the -- growth. some emergence our Well, we're seeing and and of bookings spending our listen, in hence, government,

the from months of to think now press have don't that hear last side, I of Joe, commercial in you year. maybe, it's don't X the Ted, we year, to clients you, feel our what the On know like some -- I listen, I the but tell anything other X.X have months thoughts,

and things is page. the election, I there's we X think a on kind of in assuming January new off everybody going turns some go.

you they're our comments. at ] [ think -- character in look I bit, featured little AI spend, for example, and work if featured the doing the we Joe, I of which Ted's changed a has

what for up also where want with in that better I of not Gen the they think using but Kind productivity do, ROI big-ticket position they're they're is AI. call themselves of AI, that just coming part getting the drill I they're rather what associated a feel getting now. a through desktop to going with

data data So data a of also us data they're data all work. are data, mind. side, of the in work which and of that's -- public not our to on bulk internal where quality, processing mention tremendous accessibility validity, is of still their seeing is prep data mixing data, the with That's faster data, benchmark doing the preparation, information

there's I So lot you add been Ted, turned necessarily don't [ ] their would think on to on. to that? a the I has think mind. spend spicket

I No, that's think perfect.

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

quarter could you hoping services book-to-bill there. expand This booked on separately, seasonal the then you some rates? And maybe you what benefit is [indiscernible] bookings, data you've just but mentioned clarify much [indiscernible] on could for done quarter? to of $XXX million north how of And third win the boost the third for was in quarter, in get you obviously, of Tobey. kind Good ECS Xx

Yes.

we've some here. and opportunities, spadework So on were had Jasper good has client really coming knew slower task contracts, I focus ] been and we just on [ be up, we this wins on intimacy the think We ], the [ out Those 'XX. had been pick that. at contract would ] nice end of where to IDIQ orders but on that hard [ working good, the accounts

good which develop began maybe that, expectation. We was middle a see. year, net contracts. was the share winning this our you little to high the took quarter life it and of of of Obviously, -- probability you third net we're over to don't the all that It working drop, those to gross is contract, think which and through Finally into here the way on a or road longer but on the you have of basis, a conservative to book talk about on of we're that. our

through, amount get then you that's well. you or get part of might And net off that there's of And a in small certain falling the all that so contract always that to be value that something have total booked. have spent of way a a if that didn't the realize as doesn't situations, certain the contract

done all that. So we've

net bookings basis. here the on presented Our are

And on so I about say all that's that. can

Okay. That makes sense.

there. capacity maybe full time of managing your kind growth that the temp of offshore [ sellers in ] moderated of curious, based quarters? change consulting you've business guess, has as your out versus the personnel of couple been Just has delivery or in last I are levels really mix

IT to you on of of consulting unit. Rand, to up since resources here profitability ], our staffing Rand, in about order our of business thing highlight that Yes. as want maintaining or either productivity do with that? our one the do the capabilities us slips that I to you advantage come all slips gives I'll take say, model this that an back the our Casper that? and mean want work in [ is most down do deal on the talk

says I on all. Jasper using ], we're think, Remember, Ted, work. that's contingent that and for consulting [ -- labor arms legs it

and and match are of that and have our pretty we team that bench overblown mix much leadership and an intact. have if don't to teams our The our SMEs, developers methodology reallocate professional you architects, the are in people will. our we So

On the all quarters. Mexican side, we've throughout growing these been

-- growth towards which offshore So and ServiceNow, directly been come as than that we've pointed and know, also we've Indian some into, more it's in is started mode now, capability a you not. a

you use working our point of hallmark have this [indiscernible] this labor contingent We right. is When think a model. of view, I well. our model, from it's very and So

on following prior up here Maybe slip could I in more question. one If the end. a at

stratify could what and [indiscernible] demand you're Circle in for to you hoping relative assignment? Just seeing Creative

Jasper fairly that this consistent. [ I'll has and just say been go Yes. Again, back ],

first stable it's most our quarters. because been few the It's spend. if was the 'XX assignment sensitive go creative over to you kind digital to business discretionary fall marketing Although as previous here as of of into the rest back unit, the our

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

any about repurchased The thoughts the Great. in congratulations Or that, just or that that the way think a X of quarter, should just is cadence the shares on quarterly on by look million way. kind to like? what

Yes.

is cash show we in the So free really our to [indiscernible] the share repurchase, quarter flow around about to think strategy our generate use M&A. to

to is about the way think probably that right So it.

that have been Kevin, we that go. kind opportunities less. M&A of we as call think, I Look,

things [indiscernible], just kind posture if diligently So working we'll keep and of approach. quarter our our changes obviously, we've as see But at our have through our free on each develop cash been that's flow that on all. to obviously eyes

[indiscernible] been it's that know You long a time that for

to vary mentioned Just That's traditional as through just, you to you process? around And assignment Ted the helpful. of then thoughts And commercial just opportunity any follow up. that that? more as side federal where The does kind opposed opposed this earlier, on kind of the to but it Gen internally, are business? AI

you that want Yes. to take Rand, one? do

Or Well, our to inside business? our deployment internal are just our providing AI asking base? an client Kevin, AI talking generally solution you about are you of

Internal, internal. [indiscernible]

Well, deployment commercial federal it we both benefit will the internal both our can, AI in sides. happening is where and the -- and

our internally ASGN. So cybersecurity entire ECS is the AI, for for to example, which provided of be by enhanced continues

commercial supports it business. the So the government and both

being use new capability, by support by candidates used have our but more teams and spearheaded we is benefited matching area, different [indiscernible]. on pipeline We mixing will and bases right recruiting used searches our our AI being which commercial predominantly for proposal the being and team, be creation of side, commercial is skill which development qualification government at teams. In used being to that's our the building

those So examples. are just

about whether again, where and to it's center is, or questions as them, being or employee things other respond Our across shared. help commercial technology government, to respond and shared use can AI we anticipate benefits

a you give that does sense? So

expense bit may that little a philosophically, any I Very be then, does early, shareholders? in go mean but business savings, to the around that? I helpful. And thoughts or just to that reinvestment guess, just the back

as a our higher drive Yes. and productive I a our that we're Kevin, just growth as more we higher mean business rate, think EBITDA This we I business, margin evolve both strategy gross is as higher right? part, be -- profile. obviously, to a profile trying margin is of consultative, being more to

the the And in to to down we from value come proposition work others that of has being more productive. of do come some will the [indiscernible] EBITDA line

a think that these learning providing things internally so contribute foundation And these of constituent is to services go and able translate together to to the being some it. can customer but all productivity having AI to to yes, of our rest we to better in then and AI our those of I then areas, to whoever bottom with savings in the translate line

meet we So our these We're with lot but things. things, of trying there's a are to here, are customers where where piloting. ends

data and We're Some think to things the our to other security into all having we're through going they different having further. own about production, work things things and are are.

So in would say I they right ways, we're where many are.

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

the balance look reasonable mean, you be are Have On -- your opportunities flow more of seeing? Or strong. a a Free we reasonable? you about how cash M&A, thinking how point? Is leverage pricing controlled. little really this bit that? I is well more are sort at are continues getting you prices at what sheet, become the to take

a things but to note to going don't say, Mark, on to focused, bit But generally, on there's in data think, of fewer transactions a Well, what becoming sellers the there's there's assets there we're there's reasonable. more come They non-U.S. there's going we're we is valuations say more seeing small small be looking on seeing are pricing and that about the be some for. type going nothing are may be there's really Most that market. enough say we points delivery. new some flow of enough little There's things. -- getting I pipeline. to probably are little a on. Look, the not may willing through out would They done. of point here off things more and that points M&A data pickup there data

with balance the you, shape, And where addition ] got sheet on in [ so that some to basis. we'll sheet great in -- we modestly on we is be continue balance to the cash work through those. We agree leveraged

so and we're exactly And for. what looking we -- also know

So through for But things. -- we're lack bit for opportunities it's those little process a we're better a in the market word. just a it's calling of of -- here a

revenue? terms the Appreciate who's what win, would the would about to exactly Obviously, of the think the convert to to think How government wins we advise right. you mean, recompete. When government perform on to election? should on XXX% And And that. over business but going the federal and wins then you about about side, think on investors how how is investors the knows next just congratulations All in nobody going year? do should that? these I think the

questions, So two Mark. good

in one, here but fourth wouldn't the to [ are say revenue I on these think I wins the contributing first materially. slowly ],

third we the from contribution on bigger impact I than quarter the the have a that most they So the quarter. wins in XXXX expect will various of announced to on fourth

in in slow mean think relates and in But everybody the down it commercial. enterprise anything the is that As thing election, watching, see to quarter. I I didn't its you customers especially the federal, it federal can during

like in up on the I I third enterprise commercial think and to customers to around IT initiatives. are strong on environment think is while posture the is the overall customer don't -- spending. the where pent-up think think on the have quarter election. And really going a other, things bookings definitely focused there's to space, regulatory M&A industry spending in and one leading going the key a to our is demand policy I it's going IT be, don't change or party where And we environment

as these some So are begin lot offer more our a of are go of year, among water while better I these on through slow customers unknowns we key here it's when end confidence, this and that bridge, that initiatives. there's you'll the the a spend little under bit them see expect confidence to things of

but the still side how you're preparation in I then IT, the it's And consulting quantify how data cleanup, days, order clean have know like in about side point? -- actual AI bigger early regards on way doing on lot be data with great. data to much either the doing to at you're in what of take to you're and in restructuring consulting -- this any data up That's advantage initiatives. Is a there you then AI that of actually in assignments clients much talked AI on relatively helping commercial terms for doing would

Yes.

AI data in that. category, take We're but to releasing and some Rand let I'll Rand? or specifically, bookings not AI-enabled or give So revenue color us can Rand the speak

call I'm AI We Mark, good it AI into or a question. two we and pure what kind extended. smiling. -- It's AI categories, of break Yes, we definitely

we're The So to we will, revenues. if come future, can revenues. the between what a you we stock we -- watch and the percent AI applications we in still and featured know as I today. We, and opening call ] a the total effective both, side when not ] work get our data seeing that small it actually data pure as in difference of that is our of bridge AI that remarks, [ applications know definitely but data, much to [ ourselves use qualify we're sure the Ted need we the just tour and we're implementation the doing think, supports make we AI work larger in. on for But AI part doing prepare data, client data side

the of mindful asked. question So we're very you

in of of moving a measuring terms have ]. -- shouldn't [indiscernible] way revenue slowly [ it's it We that the way we're and

turn Q&A Ted the session. the closing would the reached end floor Hansen to for I to back now of have We remarks. like

results. Great. We fourth look day. Have quarter to and thank for being you you, first quarter today. great everyone, of operator, you, participating the talk with our to Well, in forward thank a XXXX about

Thank does teleconference. conclude This today's you.

time. you You Thank for this your participation. disconnect lines may at your