RHI - Earnings call transcript Q2 2018 | Robert Half International Inc.

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Operator

Hello, and welcome to the Robert Half Second Quarter 2018 Conference Call.

Our hosts for today's call are Mr. Max Messmer, Chairman and CEO of Robert Half; and Mr. Keith Waddell, Vice Chairman, President and Chief Financial Officer. Mr. begin. may you Messmer,

Max Messmer

current statements estimates estimate, good the to We with forecast, first future made contain of that and us. These a you these reasonable. believe, expect, guidance I'd include comments statements. predictions, call today's like expressions. judgment preface such remarks We be and believe words what on other afternoon, our represent you, as project, forward-looking appreciate everyone. joining holds reminder and and Thank similar our to remarks

However, subject actual are statements. from to they that risks could results the and cause materially uncertainties to differ forward-looking

Some update of XX-Qs risks uncertainties statements call. today's the XX-Ks, assume and our in today's are described We these made release on and press our and filings, today's to including obligation SEC X-K. in no

our For on page, home also of the remarks From on page. the left are click roberthalf.com. at our bottom prepared your convenience, website the Investor at Center available

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were $XX the year's quarter total cost in our quarter Now share This in is financial during reported Cash $X.XXX and million. income to same-day, wide. company attention this was at constant-currency stockholders million. of a to on results billion XX% the XX% quarter Net paid XX% from second $XXX in We quarter dividend compared basis flow let's on Revenues up quarter second to to the the basis up a expenditures XXXX. turn second $X.XX, second capital of a the XXXX. were for Half's and per operations up compared Robert $X second of a quarter June was year. of $X.XX million, last

second a million million. shares in of quarter also repurchased $XX Robert Half We at X.X cost the

market operations plan. global robust quarter. and We have our Protiviti for among quarter. our international base as trends, U.S. small stock accelerated positive year-over-year XX.X and shares under saw staffing client economic and repurchase strong first repurchase job sentiment growth and the available during versus second strength Board-approved the across-the-board We in the midsize a quarter our Favorable rates business to contributed million

quarter, on return XX%. call results. now closer the invested for look During capital I'll Half's our at a turn Keith to second was over the Robert

Keith Waddell

out the Thank in on revenues up designed The on basis. broken period XX% This and were the operations. in term, constant-currency $X.XXX billing removal operations. inter-company up both operations. earnings Global adjustments you, to second a non-GAAP into and on as-adjusted a schedule and quarter. our same-day, international growth XX% Max. release the the reported billion showing revenue fluctuations rates from insight days, basis provide financial a trends reflects Accompanying revenue measure and is further in year-over-year are a certain a supplemental is our year-ago U.S. by figures certain non-U.S. our These is as-adjusted, of basis. impact This of currency reported

as-adjusted basis. X% staffing basis, Second $XXX XX% an $XXX on X% revenues were were revenues revenues same-day were million, U.S. an staffing basis. on a quarter staffing up while as-adjusted up million, non-U.S. up on

outside States. staffing XX including United have countries XXX We in locations XX worldwide, locations the

quarter compared days quarter second in Second had year ago. one XX.X to XX.X billing days the

$XX and Currency reported compared of the billing by year-over-year movements second quarter The effect days by year the third exchange prior the third increasing to year-over-year boosted staffing million had revenue were favorable staffing XX.X growth days X.X%. quarter, the quarter which in revenues XX.X had XXXX. rates versus reported in rate of

on States. basis. up $XXX $XXX from were million, an Protiviti from XX% were Protiviti outside within United as-adjusted for with revenues million global the year-over-year coming operations business million States United and quarter Second $XX the revenues

the in Member rate growth countries. through effect were independently serve by million Protiviti Protiviti 'XX quarter X.X%. on while a quarter revenues same-day clients year-over-year and rates a revenues and increasing quarter owned the up non-U.S. its XX second reported Second locations the of $X basis, Firms had in Protiviti U.S. XX% year-over-year from up XX%. revenues by the network were Exchange increasing second of XX

turn cost. gross margin we to Higher second of and year Gross the expanding operations the offset to staffing and fringe our in quarter. temporary period spreads in let's ago. applicable was revenues Now that bill/pay fees in conversion temp-to-hire achieved same XX.X% revenues higher compared applicable benefit consulting a of margin XX.X%

gross placement gross versus to consulting Second of consolidated operations permanent of XX with ago revenues year staffing overall temporary a When quarter consolidated combined XX.X% were XX% increased revenues staffing margin QX XXXX. revenues for compared points to margin, staffing and our in basis XX.X%.

XX.X% margin gross margin of or Protiviti or revenues. was Protiviti XX.X% gross Protiviti Protiviti revenues. quarter ago, year for $XX million was of $XX million One Second

of XX.X% Turning versus to and basis revenues The SG&A to XX In staffing permanent quarter's added year's costs SG&A in this revenues ago XX.X% second of to in in year for Protiviti ratio. the revenues Protiviti quarter versus year points last second the costs of general were XX.X% staffing of mix selling, period. comparable were period. administrative compared quarter costs. placement Protiviti quarter, SG&A the the this the higher revenues XX.X% ago

Operating million, ago. from a Second period up was operating income our year divisions quarter the from XX% staffing margin XX.X%. $XXX was same

the $XX profit Operating in increase the operating XX% increase operating period was days. an operating second consulting was outstanding, second reported At an the year's same placement was This and second prior division $XX income, prior and operating the $XXX in X.X%. resulted the XX.X quarter. our from permanent This the prior of an Protiviti of accounts in for were up implied margin the producing income days of DSO, end margin XX% an was year, quarter. quarter, from XX% produced and X.X%. margin XX.X%. $XXX Operating from the of of million in divisions sales staffing million million, of Our million quarter, temporary an second for in receivable year

monthly third XXXX to days. we Before of in review currency the of the we saw for trends quarter July, all second in so some far move and quarter and let's revenue guidance, billing adjusted

revenues divisions same the year quarter two up second versus growing X.X% staffing the July June with prior temporary period and full weeks XX.X% for first compared to the the XXXX. in exited the of consulting for compared to were Our Revenues quarter. X%

For our an permanent placement division, June compared increase full the to up XX.X% quarter. revenues were versus year last for XX.X%

share, We including income billion; of release the third revenues, Protiviti, much The the first billion the quarter said, some following guidance: $X.XXX XX%. on we a saw SEC one risks against $X.XX our to growth to same-day, guidance year. implies in is to during For of they as and quarter. second year-over-year third period as-adjusted three today's quarter in and filings. $X.XXX far placement guidance the on highlight midpoint offer them. mentioned last the know, information you XX% represent to we and $X.XX. of up estimates trends basis, revenue per compared in permanent designed reading weeks were of EPS of our provide revenues are subject July, periods into XX.X% quarter press All This same limit to our and That the too in to but the time July, brief call we growth so caution we

to back call the Max. over turn I'll Now

Max Messmer

business pleased tightening and operations during business staffing the Improving were remained across all second higher We and International for our markets globally demand lines services. staffing Keith. Protiviti the in resulting Protiviti the growth solid, to are economies gain broad-based with how quarter. quarter. you, and momentum. of continued and Thank results performed was Revenue in U.S. labor

clients. said business very most hiring problem business small follow optimism June as owners small finding the we qualified NFIB report, historical The up In single index make companies know, near is our you staffing and important of remains business closely highs. As business midsize their workers. small small the majority

available like their I these look resource companies as a are to quarter. they to We also highlight for would teams. grow Protiviti's

data the with array and Protiviti pleased demand how business right they our in now. positioned its internal Half solutions control compliance, is internal business performance between in Robert and staffing seeing are this improvement. of partnership are makes solutions, in regarded for growing Protiviti for our their and analytics highly consulting audit and broad is business The risk and technology, industry. and We marketplace unique

can of nature project. clients and the will client's In touch and multiple continue meantime, a of the highly and on quickly consulting For draw staffing offerings ways need have of regarded technologies, also online, with during enhancing hands-on service digital expertise to Protiviti candidates the life our not its business to the we side us more Already, to are future. can major which skills, only necessary considerably offer interact expand initiatives, digital our innovations our and bring in the of but client for the more in and points. fluctuate the customer our

happy and Keith questions. Now [Operator your I'd answer be Instructions] to

Operator

from line first from Marcon Your comes question Instructions] R.W. Baird. the [Operator Mark of

Your line is open.

Mark Marcon

could And little bit afternoon. Those materially, strong you bit Technology. was congratulations a Good seeing both accelerated the Thank as of talk if than on a a stronger you. I wondering were in I little RH well expecting? about Protiviti. that quarter. in you're trends That some as was

Keith Waddell

Sure.

So Cyber hot speaking, higher are in our technology, tech of and levels middle-market I would cloud say business generally areas. mean particularly budgets. larger clients confidence among

app well. go and deployments, key more continue I it's FSI people think but Again, about, is enterprise-wise changes. the more being recruit. the blended that continue little roll-outs, and candidates we not speaking, the with strong. particularly the complete We're talked we're to area, are going A the more quarter to developers as technology business that in very consulting, to expanding we're very apps, people expect strong. into only We projects third functions DevOps second collaboration more solutions of the cyber, we Protiviti, proud up see Generally of thoughtful the particularly cloud have began staffing, bit stack. we into quite improvement more with more the demand, matrix the to jointly happy joint projects the other in in target together; patches, quarter we last there's down quarter that improve in direction. well. pipeline

particularly. deal FSI, with margin procurement pleased growth We nicely we're but with is in rate U.S. net-net, rates having are very some Pressure something that. seeing clearly, Protiviti, ramped and and larger from from to non-U.S., compression up we're the have that our and clients

Mark Marcon

experienced you the conversions? Can as the little bit pay you bill a terrific. spread temp-to-perm That's well about that as talk

Keith Waddell

Sure.

X.X% ago increased X.X%. year-on-year, of rates bill X.X% just when X.X% basis points are Temp-to-hire all, from a of they That's from up and up XX quarter. that's revenue. last first So were conversions year

We've given doing the of that, - which close that need such those. or cover expanded cost, we So we've the very worked to bottom to We're to to spreads. our falls benefit time most some spreads of conversion improvement higher conversions. of all expand our fringe continue, expanded We've that the backdrop the line.

progress we've conversions. generally bill the with as specifically, pleased spreads made on well very as temp we're So margins, pay

Mark Marcon

I’ll back the jump queue. you. Terrific. in Thank

Operator

next Your from question comes Dan Dolev Nomura. from

is line open. Your

Dan Dolev

the It where assume maybe guys. driven, congrats. the Quickly I a be color, the I bill that Thanks, little And acceleration can some seems rates. but -- fastest I much pretty have remember. it's back and bit Can to from? give a you talk U.S. you coming it's would to follow-up.

Keith Waddell

clearly, the pay look is by you if rates, period in driven. less virtually we're were XXXX, higher X.X%, And that. through U.S. Well, than up driven all slightly rises while were rates X% to XXXX perspective, at consistently acceleration X% getting the we which for bill just

to we gaining were rate where near nowhere last still what standpoint consistently experienced in the we're X% we while a from year-on-year, bill seeing expansion they're X%. So

Dan Dolev

it, about understood. something cycle. were to April, that an of I you Got that, early you in talking of reminded kind think And related

earlier we think. I on Thank in earlier you It inning than think you. you on think - going] have And like view it a comment of that. a an temp. lot maybe people was are. we're sounds [ph] maybe where perm-[not Maybe

Keith Waddell

at Well, objective we rate the wage mentioned, you I look were. reason at just and and bill if we're data nowhere increases for look you would where just near inflation

hardly that it time, running this by ran has optimism so during we're hot And it's of hardly gives that period - not us legs. as as some measure, which - it's that

lot a do we we're visibility business to not of of the have it's where So the extent you that optimistic. said, visibility. a But very have,

are Our people in extremely the optimistic. field

Dan Dolev

so Thanks. we. Congrats, Excellent, are again.

Operator

And your from next comes question Barclays. from Manav Patnaik

open. is line Your

Unidentified Analyst

for on Ryan is This Hi. Manav.

investment second a in up and more margin Historically, leverage. question margin you've just operating a of putting talk Can the are bit headcount seen been that you around maybe the there's like about you're going any rates when leverage. movements line? Just below the -- here little what quarter, on growth some mix

Keith Waddell

staying growth our ramping revenue acceleration is accelerating are to do As we growth than with temp rates, in as rates more a accelerating we're back commensurate to Because and that. staffing continue we versus of term, the heads of margins revenues. of we little we'll but will for by off calls, a moment. we're of mentioned the being bit the a on And SG&A last adding the we're on focused couple the our while on growth short it's even. doing but Ultimately, our is they headcount too perm, are growth percent that than is few degree rates to err of as at are Not to growth, are, kind dilutive we're line from the up business, better standpoint pretty our thought what with revenue too few. having the many recruiters/salespeople a margin

and are the thought there. want we in is feed the be past, running, As fish hot to want to we've the the hand, we said

Unidentified Analyst

and guess, but I talking mean, any I And end? have then we you I policy? early their don't of heard And sense. about have clients any know hesitation a on fairly lot it's Makes tariff detail,

Keith Waddell

think specific specific I or we've having we're got concerns don't discussions tariffs se. yet per about

I think and at more. sentiment any, there's this if very that impacts second impact But to that. point, it's the concern on optimism least potentially on order little, us

Unidentified Analyst

Thank you.

Operator

Andrew comes from from Your next JPMorgan. Steinerman question

line open. Your is

Andrew Steinerman

the Hi. tight? for then bill Robert to recruit in next get workers a finance you but accounting you positions end Could good you volume you hotter temp when tell higher you rates related is return? tight is think Keith. have us for if Half And market to labor recruit for that is, that considering labor question and my

Keith Waddell

say I'd for tight. that professionals no finance accounting is the there's market labor and question

labor think combination Robert standing have for these are we're continue We discussion that have are We're Half. the kind technology and the we the market. Further, having our with an so. good can well. We're the I of it's to tighter a optimistic. do that more. recruiters market to pay realities markets through experienced we developed as the because managing expand There's to says typically the in client demand. more margins of opportunity of Net,

to out their higher rates. kind that's X.X% speed rates a versus first there's decision pay largely why to assignment. have you want frankly, more client your of see on year-on-year That's nothing driven on then get and and by making beginning to what's that their that's X.X%. increasing like You'll the choice you candidates to And happen losing wage bill thereafter,

Andrew Steinerman

you. thank Okay,

Operator

Your next question comes from Tim McHugh from William Blair.

open. is line Your

Tim McHugh

Thanks.

question on ask in such to is I now? want that business kicked little Just Protiviti. basically, guess, why what the a that I more guess, in drove acceleration a recently? further

Keith Waddell

technology consulting. Well, say now? why I'd

hot. with particularly States in focused You've has regulatory gotten got And United only those in areas. FSI the cloud are United then very together to as the cyber staffing areas. increasingly traction, the strong. this more States and added go-to-market rates that outside but were this those quarter. where not be on area staff added We've resources growth continues in that We've we've high

re-accelerated with that to internally. headcount or done we've of combination pretty demand a continued it's addition So aggressive

to we're impact, clients, seeing FSI, a Protiviti's to as to the coming aggressively some will have as headcount. of as margin said That I some quarter, there earlier, larger compression well. for continue well those going the As we're projects, the larger compression add

offset while points operating a comes on quarter staffing to going the just few to So we by two - mentioned. from to side for of overall, that's degree three, reasons we're degree lot the basis quarter I the will to large our expand see believe, a expansion Protiviti the margins, dilution a some

Tim McHugh

assumed to Protiviti of guess the of you lines, also Okay. Along be statement. sounds are in down there we I terms for just aware some what versus... it guess need I like those you income things locked

Keith Waddell

into midpoint, assumes Gross side, as a currency margins, momentum from in improvement sales X%. the the recruiters to drag a On On the midpoint, slightly, to it's SG&A, third quarter. XX grow quarter X% revenues year-on-year continue from and accelerates we accelerating the to spoke, staffing, the basis, rate constant that continues second staffing we the growth to flat at just guidance basis of reported growth. on The gives XX same-day support sequentially add which of turns the reported around actually currency X%. a basis, a And up temp XX%. the points. to

perm improvement If dilutes rate with two alone, to points. perspective, and basis temp a year-on-year. so higher of ratios you the XX%. temp improvement gross reason. look Protiviti to a From of pretty you together, XXX your overall alone but is our an overall but because the But it bit, rises of good perm for basis margin the of perm combined XX basis constant goes rises year-on-year little maybe from year-on-year see a the actually at that standpoint, XX XX higher income SG&A ratio maybe XX SG&A operating Tax put mix, XX% a that like higher down XX data, they're points margin when there's temp XX basis margins, you mix, points to points more range to the

in third in We expect the repurchases. goes tax the XXX,XXX some count the foreign didn't share down or XXX,XXX And we on credits have second. quarter additional

On double good. Go-to-market lease accounting sequentially, margin Tech, will side, margins, staffing line, digit, Protiviti, rates remain we is gross think the At good. the growth Protiviti the be continued strong. gross flat. with remain FSI,

points year-on-year, they'll be for talked about. the However, down reasons percentage to X X.X I've

payroll On upstairs in are the ramp-up headcount, gross training. again, you've costs in SG&A margin, aggressive while side, with the got the

recruiting. got You've

in costs SG&A. All travel. that got are the related You've infrastructure to

X while basis points point up year-on-year. So be XX sequentially, be about down it SG&A, will will it

X.X down points. about an will XX both the net-net, X to standpoint, basis the great We from business, feel our and XXX to be that. great temp, non-U.S., be up about they'll feel Protiviti's -- but we margins operating so perm But year-on-year, Protiviti, sequentially, And sides and in U.S. of points, income reflects business we of where and guidance the Protiviti. tone staffing are in percentage

Tim McHugh

follow-up. And just one

about Or talked As like the Protiviti's something of the now. much or of fall-through you how this about, this just we for margins, margin is demand about You've temporary? beyond that? -- to guess I is this going ahead we think size -- guess, pressure think at revenue as the hired how given quarter, need I third this

Keith Waddell

think there some each, Well, Tim. I are of

of Some investment revenue. ahead aggressive it's of

Some clients. of it's with rate compression FSI the some

that away as to two. rate clearly, doesn't will with or the a quarter in We work go but forward, hard very we go some compression FSI deal of

Tim McHugh

Thank you.

Operator

question next Bisbee from Lynch. Gary of from Your comes Bank Merrill America

Your line is open.

Gary Bisbee

results. Hi, congratulations strong on the guys

Just as has thinking business to it about the is the mix years parts cycle? transition growth any is changed? give of of thinking how part you is put directionally, Protiviti, us look how it, in on end you does doing much don't or you're I'm And mix X how in change years want the of in happening that terms are during -- markets to today versus about the or changes And potential sure that, business the going in but the And last ago? where you'd it numbers a can say important meaningful forward? other of the there few mix that a sense

Keith Waddell

say the Well, change meaningfully increased. a staffing we view, X-year you together. had two has success the with And take Protiviti to revenue joint have therefore, in the going market if it's between the is biggest I'd

the I internal out flares but And growth in most had if Protiviti, audit I FSI that is within two we've would call say second the consulting the well call go-to-market hasn't at business privacy, in would not not you and hasn't technology. then joint I the well, security, highest would and which continuity. to that look first done consistent out group, and Second, had technology largely done

Gary Bisbee

beyond that do? the been looking mix Okay. it stable of of in what much safe is Protiviti, to of rest the has reasonably business assume And you

Keith Waddell

is than X, perm That's has for although say That's has X U.S U.S. X, great I'd for, temp up. than margins. growing catching faster Well, dilutive been to slightly margins. grown don't I know, Non-U.S. faster quarters.

temp. of staffing side of line temp the it's the than is business, within business perm about within it versus more So

Gary Bisbee

digital then Fair question, innovations customer in follow-up enough. investments experience about talked points. And and or a improving you've the and making you're the touch lot enhancing

productive? over and As experience headcount either more to an we the you this improve the think become be or you the that by about on term, stickier reducing profitability opportunity share? more have just making Or is headcount longer so the dependency about gain customer this is there enhancing

Keith Waddell

or rates the as to about get the marketing quite so years whole micro-targeting -- important. area integrated a click-through traditionally using about and AI micro-target In AI talked that seamlessly is dramatically prospects. AI clients ML leveraging you we personalize mentioned, and micro-target of lot, we person using rates, down to to talked have that long of our Well XX use we We're digital ML, the it candidates and you with increasingly therefore, And or also personalization. our candidates and to what the haven't and the we to do and we've ML. off-line improves the on message experience and experience. important, clients, is the response placement marketing based that Furthermore, individualize our very

we benefits as in to forward time, benefits AIML line. as standpoint, Further fill from helps candidates AIML. that a for from our we requirements from jobs. searching candidates Matching top So move recruiting

still closing argue, enhanced discovery gets I there's So would of the while portion. by technology, portion recruiting, the

You still need a the human being candidate. to close

couldn't recruiting, well revenue-enhancing being clearly that's a discovery. which, that's professionalism, see college investments we're is business And and nicely. human clients, combination as investments clients as the attitude, south argue don't and candidate technology in investments need leverage growing moment would of therefore, grad standpoint our from the the in as still their I demeanor. notwithstanding it's than disciplines, X% at that skills, least as we headcount. short as unemployment more the our assess that And their standpoint, with fact the without closing existing harder a these new term, soft we of happen still well cost our but from see it the them is to their And frankly, from the in You at their at a SG&A part

Gary Bisbee

you. that’s great Thank color. And

Operator

Jeff comes question next Your from BMO Capital from Markets. Silber

Your line is open.

Jeff Silber

much. Thanks so

the Your international if bit board. business more in that Thanks. was strong of country color a specific terms we wondering outperformed> I little may have was across can get

Keith Waddell

And order. that across by generally But we so strong in led in in U.K., countries. in were Germany, we by In speaking, board. staffing, Belgium, strong Germany, We the were we order. were led just Protiviti, were Australia, Canada, that particularly those

Jeff Silber

And I anything them? country special I'm if specific different, there's just going was there know driving on. is each anything but curious,

Keith Waddell

a in true enough Well, Belgium's things a a to juggernaut. can't for continue good results, We expectations. say outperform their staffing, market. about strong very prior Belgium, been our and that's They time. It's long

Protiviti strong it's Australia particularly that's there. done Germany, well. have as government We tech Protiviti is only FSI, experienced particularly in in and technology but been there. Germany investments late. outsized capabilities heavily people we've invested also headcount. principally our not well we've of has making FSI, U.K.

Jeff Silber

new Great. quarter Protiviti locations And last I'm open more if I if quarter. up I wrong, could quarter? count was past just did thought sneak -- in It but this was in this forgive one you XX. the XX me and

Keith Waddell

And so in -- we past. in during had -- the been internationally we moved to Protiviti. from quarter, accounts of the joint with accounts some Protiviti, staffing in Many these MR

the those schedule rates. consistency Our distort adjusted prior supplemental didn't year so growth the for comparisons rate growth that

locations Protiviti accounts essentially where show So up the are the we resources. for additional locations management those seeing transferred for you're

Jeff Silber

I clarity. the appreciate great. much. Thanks Okay, so

Operator

Your next from Goldman from question comes Tong Sachs. George

open, is line Your

Jean Song

George. for on Song Jean is This there. Hi,

noted cross-selling temps with traction between in Protiviti. So you last account quarter, recent

compare how number the cross-selling or much of the color wins any growth this XQ? contributed how in to quarter on joint quarter So

Keith Waddell

We're as out. advantage continue clearly clearly, The we wins, cost-effective one a competitive problems. about can organization wins for under We We the the staffing, business can on break enterprise particularly The have staff the alternatives side, the to to traction more manage the wins. don't roof than of more it consulting our to significant provide of get. have. are excited up. supplemental that But as gotten that solution clients the the it well and to see It's working somebody the number We a go size do well. we've complex together. a deliverables augmentation, market very can as joint both world-class tend client

Jean Song

the a just as the you over Great. in down pace slow mentioned maybe And in pick-up the can quarter-to-quarter expect the the And follow-up, next quarter. year? some we hiring starting little? internal acceleration growth quarter, Could just pace that you detail a on when of healthy to a maybe of likely give next given hiring

Keith Waddell

thought Well, we're staffing proportionate short to in least to near revenue to continue term we add the side, is on the to at the growth going headcount anticipate. the

On the that side, been aggressive term. even short more than Protiviti we've

we the that quarter revenue the two, its think should acceleration outpace the headcount in see, you term, that next Protiviti growth. For moderate will or in but short

Jean Song

Great. Thank you so much.

Operator

question [Operator Credit Instructions] McVeigh next Kevin Your from comes Suisse. from

Your open. is line

Kevin McVeigh

I'm us Max, or Keith if could you. Thank you wondering Great. give thoughts.

college go And is more it to need you kind recruiters unemployment point hire Given candidates get from where where educated? to where we business? bid are at given as does source more having kind of of to and you opposed candidates, source out in the cycle a the candidate are even perspective, what for

Keith Waddell

and recruiting the years. of we've over our learned many Well, recruiting is combat perfected and technology many, a using tools techniques combination hand-to-hand

they that in need So we do gives There's internally, that, rates offers from question counteroffer our the as we're because opportunities, multiple both will that that -- us have growth heads candidates, on technology have given comfortable fund rates add to their them. employer those to closing so. what multiple outside. as They existing an no growth invest well

data, with the choice skills, or history people because our Furthermore, say little based labor experience perform well clients, to engagements. we're consultants with becoming longer. extent clearly understand candidates it's on closing a takes first their still on So costs less hard people based adjacent that source, more with to on we can our their them help

Kevin McVeigh

benefit just That's kind XX, function? in about independent did the then, from IT recruiting guess, the too been that that to Keith, or of about you helpful. And primarily the -- system Has is ago. months it's XX of conversion process any I investment sourcing helping the

Keith Waddell

our on parties into which seamlessly fact sales a I going years with said on, As the think of gives platform it now, think our we've all important. force we initiatives, ago what's that that based transparency is couple did digital everything we

made up that know the of for something a follows recruiters us, prospect reach but to years If, out couldn't a like recruiter, saw to internally experience, ago. very in prospect that If to our we to with internal online what efforts, and a ought we see and see in frankly, recruiter have And marketing and you online. salespeople our with you targeted ought that message targeted couple was. given we and investment integrated you what be that Salesforce you exactly external, a able

Kevin McVeigh

you. Thank

Operator

Hamzah your Mazari from question And next Macquarie. from comes

Your open. line is

Hamzah Mazari

afternoon. Good

The rates. first question on was just bill

mentioned you of this gone you but quarters sort last had also expansion, of couple to ago, were clients had it up being have X%. seems got X% rates You bill like A frugal, sort mentioned now. of

cycle? So rate? structural maybe X% to any just the the market not there is change on thoughts the any color as whereby back bill to getting any this Or in X% realistic -- is level as of conviction

Keith Waddell

we're pay that supply reluctantly as think think like with matter with and their a somewhat time it's actions a first of this I it and more expect I their us rise, one as the And what that's tight that overheated out have one inflation what nothing the labor their expansions, in to said demand. it's to so would missing you does That expansion, prior to but give falling more and would they candidate. generally past. experienced rates. in more unemployment bill we've would willing clients that some client relative our and through would it the we've seem present pressed them a seen more. in thing far said, they're market, And reasonable to And I about wage there's rates continue acknowledge next that not therefore, choice optimism Well, underperformed pay earlier, on words

Hamzah Mazari

tech color competing other just you in in sort the and Are the And you're you're Great. for in and follow-up, of Protiviti? strength of that. seeing environment mentioned a you some consulting gain? change who But areas. on against? any know share change I Any seeing competitive any cyber

Keith Waddell

across X service fight there Big other X is it frankly, feature their offerings. but competitors, as to Big relates Well, non-Big that are Protiviti's the changed. And principal competitor hasn't is Protiviti the I the mean, X.

Hamzah Mazari

you. Thank Great.

Operator

question Marcon from And Baird. from comes next R.W. Mark your

open. is line Your

Mark Marcon

follow-ups. it you term, we the you about to headcount how two how profile margin regards -- for When Protiviti, Just clearly do you're should about addition. think think the longer With accelerating Protiviti?

Keith Waddell

Well, we've think from or Protiviti a varied strayed at and all. haven't we performer, that long double-digit said is we margin that

have double-digit a lower long margins. for were cautiously sustain past. in quarter we than we're growth or can versus rate optimistic So we operating the term, solid very that and But two, that

Mark Marcon

How And the shouldn't regards like same. RH the the to ultimately Technology Technology, size assuming with regards stays towards you could seeing environment of reasons growth the acceleration are started shouldn't market, we RH Great. this just growth. any in that where why, given you do then far to with the along be there It sounds go continue your think progression to?

Keith Waddell

clearly get market the has the Frankly, we've at to to Technology easiest together they from just the and going and from participate say has tougher. finance moment, that our would with doing where RH early. I with it also learned playbook perspective. but Over same accounting compares. how time, begun quite we're up particularly good. thing early. It's in we're technology. and finance we very behind the are and in And Protiviti, frankly, signs quite It's early accounting, are that's ramping pleased

Mark Marcon

talk think think regards in terms with the the way are those the And of innovations actually the incremental with really business? That's innovation, can to you're in, we some interacting clients you're in Or then impacting stage a just revenue? contributions about that of of about seeing should we what bit great. terms from driving little you that how you

Keith Waddell

candidates, air we early. message will. how we digital about our it's than market Consider talked that by believe more is if you before. dramatically impacted initiatives. prospects to targeted clients, think way attack, much been with We ever being directed a we've I We're more the

said, but do. rates. measure it specifically That We can Quantifying what response but and is speaks we as we technology is of to the are for measure then? You as be traction. candidate experienced hard going we question would that discovery view technology for unemployment We doing well fact getting can clearly click-through All what to we there's is of certainly traction. combination rates, on all-time are, notwithstanding powerful. as rates. can well measure The that then these point candidate from part couple would -- to on me measure have candidates very sources, side low we a the no what's visibility attack the with recruiting harder that to what we're air getting attack, is what's happened but ground with have, know to we're certainly that the has is

Mark Marcon

early. like sounds Congrats, thanks. it And still it's

Max Messmer

digital just you reasons Mark, I'd optimism a and with years on XX and people the lot our if U.S. top sometimes average Half. they isn't of innovations. the about people our Keith at looked one the in talked over that technology internationally, front, add XXX is which Robert recognized, the for

a they've job very have doing. proud very very, club We good of and I'm been ball the

Max Messmer

final We question. With you that, your that was very today. Thank interest appreciate much. our

Operator

This concludes today's teleconference.

at it format part If will of of the Robert Half's the you be Investor website call, in any audio missed www.roberthalf.com. archived Center in

You the the release conference today. can also are press and call in ID contained dial Dial-in issued details conference company's earlier the replay.

Robert Half International (RHI) 24 Jul 182018 Q2 Earnings call transcript