RHI - Earnings call transcript Q2 2019 | Robert Half International Inc.

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Operator

Hello, and welcome to the Robert Half Second Quarter 2019 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

hello, thank and today's for call. everyone, you you and joining Thank

the today’s guidance our made estimates a estimate, and comments As reminder, as such on expressions. what future forward-looking forecast, These include words of expect, and statements. call similar statements judgment represent believe, current project, the holds and other predictions, contain

from cause however, risks and to consider We actual to are results they these statements. remarks to subject the differ materially that be could forward-looking reasonable; uncertainties

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

website convenience, today's of home remarks for the our Investor in page, call click your on the link page. prepared left roberthalf.com. of bottom at at the the From available For our Center the are Investor Center

an revenues a last quarter. company basis let's currency were for the a on on increase Now second and billion, basis. of constant financial results reported an Robert of for the review second quarter increase X% Global same-day X% Half's $X.XXX year's from

XX% ago. quarter is in the year versus income an per $X.XX Second period one increase share $X.XX same net was year-over-year. of This

shareholders in $XX record Cash we of $XX our and million. cash for flow distributed share outlay the In a cash million. a $XXX from of operations capital was to million dividend June, quarter total second expenditures were $X.XX per

million. million X approximately repurchased shares the for also Half We during quarter Robert $XX

Board-approved repurchase million We plan. available our shares have stock for under repurchase X.X

quarter. value services. Global low. near our where persist our This staffing the unemployment XX-year and remains saw services professional enhances United for the in across Protiviti We shortages our the solid second States, during of talent a disciplines, particularly demand

the quarter XX%. the invested was on for During capital company second return

Keith to detailed over discussion. call more for a the turn I'll

Keith Waddell

Thank you, Max.

growth period. on a U.S. both figures global year-ago basis This currency reported second same-day a as year's up is revenue X% and and noted, a and the rates from on quarter reported release by on showing second billion. quarter $X.XXX year-over-year basis broken is from These in operations. were non-U.S. earnings the our a up revenues out the basis. As Accompanying today are further X% supplemental schedule, prior constant adjusted

of The adjusted and billing our into impact reflects of our as a term operations. operations. the non-GAAP certain insight removal financial to currency designed This the adjustments fluctuations measure, days, certain is international in provide trends revenue in intercompany

basis. up quarter staffing revenues On a on an same-day year-over-year year-over-year. revenues basis. as were on $XXX up X% million, X% basis, up adjusted Non-U.S. were $XXX were staffing as second staffing million, U.S. revenues adjusted an X%

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

the quarter billing quarter The were in compared XX.X versus XX.X second billing days year There to XX.X has days the one current one XX.X ago. third quarter the quarter same and ago. in days year

movements revenues points. quarter by exchange year-over-year the year-over-year had of million. staffing rate the Currency effect reported during X.X our reduced by rate $XX reported growth percentage This revenue decreasing staffing

the as were quarter a the adjusted prior versus were U.S. On the outside United revenues XX% On $XXX for up period. and million that the X% in XX% up adjusted same-day is operations States $XXX on from Protiviti million business revenues non-U.S. within basis, revenues Global revenues ago year, Protiviti Protiviti United of were as $XX million, basis, of were year is basis. from an the States. second from up an

XX XX growth the a rates network year-over-year X.X year-over-year countries. reported Exchange serve revenues rate million Protiviti effect independently its Protiviti through Member $X decreasing in and locations of Firms had and percentage decreasing points. of the by owned by clients

in revenues compared the look consulting second operations, XX.X% rates applicable revenues staffing and margin. gross year payroll the lower bill/pay increase. of temporary XX.X% let's to tax largest margin at was contributors one gross were spreads Now, the quarter our ago. applicable Expanding a of take and In to

XX.X% same with Permanent gross temporary ago, margin, were ago. points consolidated to revenues was one the placement When rose compared quarter in for revenues. Protiviti revenues. XX.X%. year compared margin the of period during gross revenues the second $XX basis the Protiviti was One staffing Protiviti year ago quarter and XX.X% gross second to consulting of of or million combined $XX overall XX.X% period to in staffing XX margin million Protiviti XX.X% or margin year gross the

XX costs revenues mix staffing year's higher second in revenues this second last permanent were to in versus were XX.X% ago in year ago quarter in the of SG&A XX.X% versus SG&A SG&A XX.X% quarter Staffing second ratio. the placement to points to Protiviti of quarter's year the of XX.X% period. added The revenues for quarter. the quarter basis revenues of Protiviti one costs compared

from income our XX.X%. operating divisions Operating staffing quarter Second million. margin was $XXX was

operating X.X%. and income Our margin an temporary staffing in divisions of million operating produced reported and consulting $XXX

placement second was permanent million our quarter in for income and of the division margin operating an produced Operating $XX XX.X%.

resulting quarter of operating profit Second for $XX XX.X%. an was Protiviti in operating million margin

of sales million outstanding accounts implied XX.X was At second and quarter, the DSO days days. end the receivable $XXX were

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

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

versus X.X% in increase ago. to the X.X% June revenues This Permanent year placement full for up compares a quarter. June one were

weeks placement to last compared July, same three permanent down the the X.X%, revenues period year. in first were For

trends during that information know, this these But, so periods. very too provided July. We as and caution have brief quarter into We second them. insight of are against the some reading you the into in we saw time much you

third growth The per guidance; $X.XXX third and billion growth midpoint of our tax quarter of income revenue as X%. a which $X.XXX revenues EPS X% provide subject mentioned is on of basis, We to the projected adjusted limit press year-over-year With risks call guidance the ago. our rate following compared filings. our to to implies $X.XX. that quarter on in guidance billion; we the mind, estimates year the a includes today's in The All release XX.X% same-day are we to one $X.XX SEC offer to quarter. XX.X% in Protiviti for and share

Now I'll it over Max. turn to

Max Messmer

see with our for operations. quarter Protiviti skilled pleased shortages The anytime Skill soon. Thank quarter. demand results you, in particularly and don't is something a were Keith. both non-U.S. U.S. the strong risk talent We the specialize. our we expertise remained second in improvement, work had demand performance for compliance, diminishing in and pronounced analytics, professional occupations, efforts. professionals companies most on of strong Protiviti which in and they technology-related data with and are our as we Likewise consulting the

is major staffing work on to Half's initiatives. Protiviti with Robert divisions Increasingly client collaborating

us staffing Our company's and a continuum. and solutions us. Protiviti needs consulting key the blended this staffing differentiator point We to for is in allow meet believe the at every

expertise. we Access of basis our to consulting full a for right this talent and talent and Protiviti on hard-to-find and premium resource full-time, project spectrum now a reliable are solutions, a is staffing and with at

surveys historically talked up of This confidence reported base lion's about midsized little had activity business levels, we we've businesses our the the follow client business of slightly this share still high impact small make small a many has in optimism As lower call, few recent in times have at while and on is hiring months. however.

June these As optimism the problem among most finding survey, for the index, of remain small growth workers companies. consecutive firms. In of NFIB, employment the single business small June business months reported XX qualified important

at which sign workforce Looking as in workers is a The a positive also the estimates. that job positive, feel outlook analyst growth confident slightly, whole, the was job June exceeding rate their prospects. rose with participation labor U.S. employment

these other about For our opportunities. growth are we optimistic and reasons,

to that deliver personalized invest complements years to experience perfected world-class in and we continue staffing a that technologies recruitment service will the industry. in XX digital We over us have the enable

new track The on for jobs, and this their recommends match app allows search real-time a that status instantly a to of applications. mobile candidates Earlier jobs a introduced that a preferences. new we also the and candidate's full-time app basis temporary apply month,

I as that and questions. we'll as certainly and you usual, ask have question, try Now, to permits, time would you to return to additional If We Thank one limit follow-up needed. please questions. happy Keith your you be single if a to yourself you. respond to

Operator

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

is open. go line Your Please ahead.

Mark Marcon

color acceleration you -- bit seeing where not and the but with to wondering in a regards also I into geographic little in in just within Good potentially from a give seeing afternoon, make up the ended up I you much which you that Max trends, segments on additional of seems to, slowing? was seeing wondering color in trying relative of and give know, ended we're staffing which bit it too what perspective, terms specific to of Europe, a Keith. to us are be if you to relative could July. June month-to-month you a continuing could U.S. if little

continues with how the between division, much collaboration basically staffing to seeing that how benefit to then, and you're And which comment would extremely regards the is Protiviti coming you the of perform well? from

Max Messmer

little better of our improvement start on quarter. see U.S. better July than lines got and our month. the than In June, month than a our year-on-year May is acceleration, temp trends during progressively every of lines was business U. better U.S., the the across was So businesses did June in -- we each S. better actually the across April. so May.

International results were different.

Europe and trends macros We those slowing the somewhat. they in are U.K. offset and seeing the in

trends U.S., growth be talked in it that QX, additional what year-over-year on will by globally the the assumes in to Europe, the to, is the U.K. guidance some a offset just firming softening in according which some Our basis, essentially for about, quarter was we close

As go collaboration, to to continues well. the very it

reported before, not get about As talked those results in we've staffing. Protiviti, in

growing not the trends, business So talked what we're were managed just the significant the I about, from, services, benefits additional do technology segment and consider Protiviti. in call, which services, fastest managed we staffing

Mark Marcon

you may to staffing there? up and and little going SG&A? talk as SG& over And of relates mix in just between bit you just just just EBITDA A little a the Is just a can seen terms staffing And terrific. the bit? the to mix deleveraging about Europe it the due have That's the partially U.S. margin that on the

Max Messmer

We of in a few weeks matching pretty new and ago on word, app learning, mobile on more a we staff. quarters. your use what prioritizing marketing, We've the to the much is we continue released about We've AI, for deleveraging, our last and earlier we we talked candidate-focused. couple SG&A call principally unabated prior investment calls talked about about continued that about initiatives. our had leads machine tech in the Frankly, from that's engine, talked micro-targeting continue

happy we're candidate is we're spending guidance, make. the and as It's excited revenue. revenues. of particularly initiatives we of percent a payback reason irrespective going We well. getting of about the in kind that the believe expect why have to we to on SG&A area. continue up guidance the that's continues spending tech We're runway in And additional the So, already the as to principal

Mark Marcon

Appreciate Terrific. the color.

Operator

from Our comes from next question Steinerman JPMorgan. Andrew

Your please go line is ahead. open,

Michael Cho

this in question evening, driving least had on think good made the July? quarter. on -- Andrew. at Keith is business Michael staffing about a just is you Hi, the Cho acceleration do all quarter every into you month U.S. that for lines I in and of acceleration comment across the in What the

Keith Waddell

trade did our seem that six were a months they and I be ago. speaking they the at Fed. is intense services, while clients got still more it's PMI tensions you've would about personal think around measures you a that don't sentiment as my friendly to than as six look the primarily generally have Fed sentiment at friendlier months measures ago belief say can NFIB, referenced But you if high the look stayed today we

Michael Cho

was a What just Got the growth in bill rate the Thanks. then And quarter? it. Understood. quick follow-up.

Keith Waddell

So, it's quarter. was from X.X% bill growth in last neighborhood. the That's rate not fluctuations X.X% down that slightly unusual But year-on-year. see to

Michael Cho

Thanks.

Operator

Dan comes Dolev question Nomura. from next from Our

please ahead. go is line open, Your

Dan Dolev

Hey, you question. my for taking Thank good evening.

would happen billable to X.X% X.X% about hours currency. Following imply right, weakest billable getting been to positive That's up quarter to I of same-day third for the implicitly in -- back your Thanks. components? third trend you And modeling head for are if versus rates my since it's is bill X.X% what into hours, the gas quarter what needs to number constant on probably for math that XXXX. two the the that negative get guess, those territory? And

Max Messmer

Well, similar quarter is our the second to third very quarter actual. modeling

So an that one ones easy answer. to

would that at provide sentiment needs better continue to to will we will be get get least the place and and nice permanent pressure and what the attracting I'd off to assignment sales take the to candidates turn As no it the on more help cycle, with placement, of worse happen to which and around? for and/or extent improve we U.S. ours. retaining say needs to macro then better

prior As not and hours of for we've A, cycle unusable work a replace B, to it's assignment them, recruit pressured leave talked you staff. about in additional because; of all it's candidates harder our calls, on for have to which an to part this candidates; in is be more

of which to ultimately will pressure All hours. lead on

quarters As in you also feel we is which get the over pressure X% the candidate, like the to rates of need ours, on also said eligible we've paid calls and range a because we few have why when bill has we now. increasing on see the

Dan Dolev

staffing third quarter is that you're saying? growth with rescinding were what basically X.X% this you to And roughly the about it. guidance, Got clarify, implying similar said you components organic Keith just

Keith Waddell

QX is which any versus overall, isn't we second overall notably slowing we improving same wiggle looks ourselves the rate, guidance did the trend is the to room the part temp. in line, growth, expected just it line because of some the We and quarter. as Staffing grow leave what roughly in But between growth showed trend about. staffing by perm which the talked growth QX same the

Dan Dolev

appreciate you. results. Got it. I it. Thank Nice

Operator

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

Your line open. go Please ahead. is

Jeff Silber

bit. to Thanks so a wanted I and Protiviti gears much. talk shift little about

both margin margins? operating you about Thanks. your XQ Could talk gross some if color in Protiviti more that? a had you us the and give expansion both embedded line also what could drove little line. You revenues what's And bit margin margin nice of guidance and in for

Keith Waddell

double-digit a So was their was audit audit one good had had The all consulting growth. strongest managed strong. the and Internal be then part Every the was year-over-year IT major within technology to very services, very the segments broad-based. revenue Protiviti that; strong of news of quarter. tech strong; was cloud, strong; is where cyber, digital, services strongest continues strong; was FSI, regulatory business managed pipeline it

I We have modernization, user together. back processing material resolving go their experience, shared projects traditional already we're types model Protiviti where we keeps continues scalable side it's centers, well. include But from our just addition up in have staffing of said, well. matter Examples staff improvements. Protiviti very backlogs, subject interface remediating in standing weaknesses, staffing office work also service to doing various the expertise to as Again, for user segments

We did see margin expansion on SG&A.

pricing, at You got slightly gross the better line. slightly better margin better leveraging had of cost utilization. They

happy, We double-digit. ago. than is a X%, the are -- below margin just operating margin still very for which year their X.X% better they're Year-to-date, at quarter double-digit, was

our margins, the last is talked the and that expectation double-digit time. double-digit the of Our two quarters margins end will they'll of year year with which have we've for being some about goal

some But wasn't slowing still, all U.S. performance, saw Protiviti also considered, year a non-U.S. strong they and outstanding. comps Europe, bad, non-U.S, was in Protiviti U.S. revenue very things had non-U.S. So from very ago, high although U.K.

Jeff Silber

And I is a your EPS tax least for embedded fourth we helpful. as numbers That's that then guidance, guidance? you're well? rate XQ XX.X% use should the not XQ in count know questions. from perspective, Okay. at giving What but quick couple And a quarter just share

Keith Waddell

it's XX.X%. to call XX.X%, normalize quarter than is for higher $XXX.X four should So ago, had Tax is count. we're accounts. QX our XX% your taxes return the a given you guidance We your foreign year when a QX the we our A is reconcile non-recurring accounts. fourth in our expect with year to tax to for always core quarter this out rate, although tax credits tax We points rate using some repeat, that for return ago. don't reconciled share pointed noisy which that those to credits we

Jeff Silber

color. the for much so Thanks Okay.

Operator

Our next from Credit Suisse. question comes Kevin from McVeigh

line Your go Please is ahead. open.

Kevin McVeigh

then, particularly the the decision Hey, Thanks. just just Keith what's picky? side? hiring fees kind thoughts, any out less quarter? And Or any Max, at perm the been margin, clients? on all? in of of and pushing at sense came Great. Do Just they conversion of the the how tenor become in,

Keith Waddell

So X.X% side, on is with revenue conversions quarter. consistent last were the temp which of

in clients outside getting client were, view, they're point candidates As when down to offers it's business looking. which of picky going down. are slowed go slows them they're tone counteroffers perm, from us as leave. are of known tell just further multiple further We're from that they a get by, when as their employers existing particularly they They to

many through we offer works. in have we have or entire they to a So, times another or to over to in and company the B they go got hour, to the decide XXth their process with Plan take B start Plan the with we've and candidate existing stay to extent go we an a

they're still more point demand. are is so selective them makes They still opportunities But selective. and selective. both tight. more picky, the got still you sides in they're more still picky, clients are demanding, being Candidates have counterintuitively which They're many

Kevin McVeigh

it. step in reason the just just tax was that then mix? Got particular And that? any for Or any up the rate

Keith Waddell

tax than -- ago about. that's talked fourth be had had there should But the Tax in in quarter. are of what rate to those I rate and we We see certain just and year new are more Act. under as a credits costs normal the more a we got The XX%, year absence that we the last of this non-deductible the hope XX.X%

Kevin McVeigh

Great. Thank you.

Operator

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

please open, line Your go is ahead.

Gary Bisbee

the is company that in fairly I still Hey, success using having numbers. to given I staffing grand scheme the guys, But of just realize of and small Protiviti good you're going with ask that's some market to the temp wanted on impact afternoon. guess candidates of at issue is business, that's I an an and for those that you engagements? exacerbating that engagement? all? then -- at having Or any the presumably ability thus the own prioritize sort any to Or of growth? Or for Protiviti your find scale not the

Max Messmer

we don't Protiviti clients so problem cherry-pick candidate it's for candidate our But have have Well, our to like best the clients, a pool. of of the each that it. staffing impact very like to the they largest to Protiviti. candidates -- we think provide frankly is some high-class available of we and clearly and benefit we more But

believe the third-party particularly to tech But tight. with say Protiviti I we the in meaningful success ability that that but of place impact have that our pool to client. that and them client the would clients the to I question there's is a whether deliver client So, candidate third-party is is is with on having success detriment to recruit or initiatives no is Protiviti a clients, candidates whether

the people our way. same staffing the either on paid they Frankly, get side internally

So, on whether agnostic. third-party. neutral of Protiviti they're clients ambivalent. whether clients a They're they're the They're of or

Gary Bisbee

couple a candidates. get an candidates? Okay. then campaign? times Are marketing -- the do is you to to with you campaign follow-up mentioned Thanks. measure the introduce advertising concept the you to or do are How it guess that the technology And Are just having with of out investments I there currently working how you've you do people helping are you? And of and that? who

Max Messmer

if released weeks get the will of our ago, app. new an do you're will our every inventory. things. mobile that to But that match in opportunity candidate We And real-time new against lot example, you we pushed get on order, a a two app time we you mobile as we

or be you're by want not mobile and you've told to e-mail we'll communicate If with. us you with our communicated approximately, you however

then for match first matches ask get to that immediately new in inventory the point of time position. the everybody we Robert when is them that Half to the apply But we reach and to a that it our order out and history we order, for

years we XX So, that's years than proactive much were ago, ago. just example. more It's five one much less

Gary Bisbee

Okay. Thank you.

Operator

Blair. Our from next question comes William from Timothy McHugh

Your line is open. Please go ahead.

Timothy McHugh

Thanks.

the question certain to anything one broad-based? maybe parts specific is guess. can you Internationally, softening Is I two there countries? but Just --

ones practice rate And any then that broad-based Thanks. well was than trends? in it of pronounced lines the the other more -- that was in terms June, of broad-based? or the U.S. secondly, the is improving trends as In

Max Messmer

International softening the In and principally Europe Zone, was U.K. the

it a we and single will we on Belgium a had Although Belgium, while But a lot, Germany, environment digit good. which say slowing high it slowed France base -- Germany thought was slowed it given a the year-on-year, U.K. was growth generally solid pretty number still and speaking, lot

by it June while of to are business. line any trends, there by throughout It of differences It was line was broad. some business, broad broad of in line business. was wasn't and As isolated it quarter one the

Timothy McHugh

Okay, you. Thank great.

Operator

Barclays. Patnaik comes next from question Our Manav from

Your open. go Please is line ahead.

Ryan Leonard

on this Hi, Manav. for is Ryan

out curious July call the Just of Is timing, there Xth specific in on like that? perm there, July. declines anything anything

Max Messmer

more post-quarter of quarter. the A, is Perm less always; volatile; is B, the predictive full

time volatile have period of holiday. over the I of of July is think the year the entire the most we Xth around course

And the quarter month. start the so studied post-quarter Xth relative hindsight with respect to the is least post-quarter full post-quarter with July predictive long the all looked hindsight. we With start year And period. period we've the full to at the

perm, So, impacts we to of aren't but wouldn't perm, for disproportionately stronger? our it. which fact have been to like I on while be we per to grain particularly in add continue about somewhat in very also Absolutely, we salt, heads And SG&A. it bullish concerned continue say certainly would

Ryan Leonard

of Got I placed, couple the looking track years, app of we progress or I if kind mean, roles of as what some it. Thanks. the in of, guess, of terms candidates mobile And the of initiative? milestones then kind app, new your out you're are we think number should of on on that either next itself, this the of

Max Messmer

idea not the think, ours. their we I candidates want is, communicate to terms, on just with Well,

to be our their they'd like they them, if If to jobs to. they to pull can pushed, and up that. push what set do we they we website, match e-mail We can based come agents can they do them fine. themselves, fine, prefer If that. jobs on they if So own prefer can to instead,

they everywhere want be to The are. point is, we

functionality we are not a in any I'm no critical. ever just, channel So we've And channel user-friendliness there's have. we more metrics upgraded live on other any one hours. the question, of the us to what a XX point mobile way, the paid website. a within the not you the of companies lot can world But and by major we your new over on mobile-centric the And on if is, website than say sure that app, time get of report And in provide our way, or that. you

Ryan Leonard

Interesting. Thanks a lot.

Operator

next comes Sommer from question SunTrust. Our from Tobey

line open. Your Please ahead. is go

Tobey Sommer

was wondering bill/pay I could you're seeing context demand spreads about comment if bill historical Thanks. you slightly and in rates, improved in expectations the trends. for and the pricing of

Max Messmer

say, if pay We X% our at around look as consistently period, rate increases our was that, virtually and it is it low unemployment then while would XXXX-XXXX increases that we expanded case, gross got bill you slow, every exceeded margins. such wasn't in quite slightly we now, rate as

We we So history, significantly range not on we've that expectation our lower. now spot, go range. that that significantly based be wage in nor few It stay X% been it. for as of we is what giving inflation sweet to see higher quarters. would a in kind seems, the be It

Tobey Sommer

margin on for And in kind that could frame did us whatever Thanks. could refreshing the this If be the that also of social you -- costs What may that period in incorporating there the gross still last in of cycle? you five-year you margin? in gross of don't mind have us expansion alleviated terms from be expansion? kind

Max Messmer

with most the rates And each have cost, one we unemployment. at So unemployment state state are, that referring to, significant is the presume, I fewer social of the XX-year of you're positives claims. has the lows,

the claims fewer charged have charged each state were in against our declines. to payroll at We rate account turn current and

-- XX this or of relates And unemployment would of lowering come was points a it benefits think I the or to an quarter as our unemployment year-on-year the tax continue continue rates improvement from be to improvement that. So, see down, we'll expectation decline basis to the XX of rate. state

to guess, margin of of I As I front five history me. gross the don't in expansion, years have

versus the our competitors largely against regional. weigh are market our constantly to have and that spreads versus local We

market. I anybody price and don't to we aware certainly of that industry-leading dispute want margins. think we're the we And don't that out would ourselves therefore have of

here So, gross while gross one supplier we from which is markets wage through already our at local inflation in believe we most is local understanding to and objective doing; margins expand objective to our the competition. modestly we to are relative highest can expand we're pass margins two modestly margin

Tobey Sommer

Thank you much. very

Operator

question [Operator Our next from Weber RBC from Markets. Seth comes Instructions] Capital

open, ahead. line go please is Your

Seth Weber

Hey, growth good afternoon. put wanted your kind up to strength relative to back Can to that's commentary and to in pretty us I Germany. go Europe position remind enabling you in you. unique of just there a Thank the numbers you soft what's the positive market?

Max Messmer

significant start less a really team in much we made good investments in I'd with for years consistently experienced have many a Germany. quarters many We've headcount row.

more be more the Half Robert or resilient impacted Technology. Our and Management Half project-based Resources businesses to seem Management more OfficeTeam than are than is are They Europe that Accountemps transactional. Resources and Robert Technology generally in speaking macro

combination of So, mix and investment, our the consistent positioning team, experience I toward think revenue it's of of lines level the the past higher project-oriented quality businesses. a our and of

Seth Weber

-- sorry if I'm it, you. operating should… staffing missed just then -- quarter a you or margin guidance did but target third you that give -- I double-digits, Thank know helpful. we that's a And I but XQ anything gave Okay, Protiviti

Max Messmer

basis investments, up outsized heads. growth. to higher points up down XXX XX from SG&A utilization. points. a P&L. just margins Higher guidance about. So, rates Protiviti our points to Staffing staffing margins talked up let's Protiviti basis brief lower we and basis tech as gross More XX more SG&A leveraged suite XX their XX perm the to with XX to spreads taxes little basis tour gross XX down XX just points. do

to XXX basis is basis gross Operating more SG&A increase Protiviti income up points. XX the to than staffing points margin. down XXX the XX in as

and the SG&A. higher You've double got less margin gross benefit of

the bad get news rate, away is However, year benefit described. just tax down the we when points over it's to last four takes up the of you and some

Seth Weber

Perfect. very you good a much night. Thank guys. Have It’s very helpful.

Operator

from comes question Our Sachs. Goldman from next Tong George

Please open. is line go Your ahead.

Blake Johnson

for Thanks taking my Hi, this for on question. George. is Blake

XX driven staffing Given tax this how that spreads temp margin by expansion change points of versus much the bill rates quarter, rates? in gross of increasing in payroll X.X% bill/pay was expanded basis the

Keith Waddell

Okay.

about as ago, state rates is and XX rates. to bill the So spreads difference our and basis balances and and unemployment in the down a points we principally added increase came somewhere between pay the second rates talked between they XX

Blake Johnson

are it. you. this have back Or And to Got hiring, Thank pared your regarding you grow quarter? headcount? then continuing hiring you

Max Messmer

on we perm. ahead a hiring still still as as perm. perm. expectations hiring top objective We're bullish in is growth. gotten Our consistent can We're little with our with to in stay line We've on

So bit we'll still ahead. a stay little

the perm You'll consistent all long. what in line commensurate XX% we we growth see but be. Generally speaking, continue -- day with hire we'll to -- take XX%, with operating the expect XX% or top to margins margins running

Blake Johnson

That’s you. Thank Great. helpful.

Operator

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

Your Please line is open. go ahead.

Jeff Silber

so Thanks much.

Just you a that ended guidance year? that to or the prior just compared margin that gave quarter, quick follow-up Keith. was prior one the The the

Keith Waddell

Prior year.

Jeff Silber

Okay.

Just wanted Thanks much. to clarify that. so

Keith Waddell

XQ XQ year. Prior of XXXX. --

Jeff Silber

Thanks Great. XXXX? so XQ, much.

Max Messmer

today question. thank joining us call. on for last everyone our was the like That to We'd

Operator

teleconference. concludes This today's

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

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

Robert Half International (RHI) 23 Jul 192019 Q2 Earnings call transcript