RHI - Earnings call transcript Q1 2021 | Robert Half International Inc.

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Operator

Hello. And welcome to the Robert Half First Quarter 2021 Conference Call.

Our hosts for today’s call are Mr. Keith Waddell, President and Chief Executive Officer of Robert Half; and Mr. Michael Buckley, Chief Financial Officer. Mr. begin. may you Waddell,

Keith Waddell

appreciate today. We your everyone. time Hello,

performance. Before that call the started, what I’d the our contain judgment our remind you like to future about comments estimates statements, future predictions we statements of including represent current get forward-looking and These made holds. on today’s

XX-K are risks and uncertainties from These statements. today’s the could are XX-Q described today’s actual release, cause and uncertainties press in they recent the call. update However, assume and results with subject most forward-looking obligation risks to no on that the SEC. to materially filed and differ made statements We to

this adjusted. in schedule to During measures as Reconciliations financial and non-GAAP our earnings further a supplemental press these mention we included presentation, release. explanations some are figures and reference these of may measures

schedule connection of from presentation Technology Half their Robert Our rates growth and provided This staffing related services XXXX measure manage just divisional also this these OfficeTeam, of to the The intersegment amount revenues for Resources Protiviti combined Robert with Accountemps, a revenues in for intersegment and consulting disclosed. Half with include how and include revenue also The information revenues company’s supplemental separately solutions. Management blended is mentioned through divisions schedules and XXXX. their Protiviti internally. we showing is

the available For our roberthalf.com. for your remarks convenience, Investor Center of in prepared call are today’s at our website

staffing. wide Protiviti’s reflecting service Protiviti’s exceeded momentum quarter quarter year-on-year is including XX% high array its broad-based grew guidance first We of our solutions strong that’s reflect revenue managed offerings results the consecutive recovery revenues are pleased of continuing with very underway. extremely that This year-on-year, across XXth of a gains. and end well our

them March a the outperformed share permanent from which with Our down Net flow first a Cash from their and grow, candidates, and to with of businesses, $X.XX, first $X.XX the $X.XXX navigating led the XX% medium-sized remote the XXXX, to sequential our year the basis Companywide new and revenues $X.XX were $XX small X% be ago. quarter in to year’s during our in adjusted per grew find share work billion total increasing income on sequentially. X% of outlay reported and first on clients work. placement, impressed and continue last adaptability quarter basis. shareholders teams in models was historical staffing we trends XX%, of hybrid, a meaningful helping and the I as cash per In by was quarter of record significantly million. quarter million. operations $XX an quarter compared operations our for down in a dividend cash distributed first

We $XX also acquired XXX,XXX Half for quarter shares million. the approximately during Robert

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

on company return for in the invested Our was capital XX% quarter. the first

turn over I call to Mike our Now CFO, the will Buckley.

Michael Buckley

Thank hello, and you, Keith, everyone.

revenues. with start Let’s

XX% quarter. As staffing Keith first from basis. revenues year-over-year. staffing down XX% the basis $XXX were the billion as adjusted year-over-year was revenues $XXX in down $X.XXX adjusted year. noted, revenues as U.S. XX% On first million, quarter revenues were an on staffing prior Non-U.S. an down million, were global

growth current XX.X reported percentage effect rate one of rate ago. the quarter XX increasing States. outside worldwide, by quarter points. second billing The staffing one there days year-over-year XX.X United We in including have the days, during by had exchange equivalent movements have year-over-year to $XX first X.X million. billing the reported impacted days revenues staffing the first the locations first This year second our quarter billing Currency revenue compared to year locations XX XX.X XXX quarter ago. in staffing In were countries quarter the

of with were quarter results outside the through by for at and the growth reported increasing its operations $XX percentage from its that first Now million from adjusted SG&A. XX%. that business is in the adjusted look $X firms Protiviti revenues within United assets on to of first related Protiviti as the take independently classified period a On you and versus basis Exchange revenues U.S. an effect serve United both completely basis. cost year-over-year offsetting $XXX in below let’s global year-over-year as XX% of Protiviti were million increasing of locations the Non-U.S. Previously companies classified have the the owned changes deferred quarter We up remind compensation Protiviti XX classified in points. Global in in were were SG&A. as up revenues up States changes $XXX States. closer by an of the ago XX or X year separately clients revenues with million, Protiviti million case a SG&A as Protiviti. is the rate investment rates services obligations revenues network are member they trust XX% countries. and

consolidated and of Our with has assets. is measures income operating intangible income. amortization the of consolidated of calculated historical discussion before This taxes non-GAAP income as segment for adjusted been combined income replaced interest income

is the convenience, to a GAAP. have the summary for non-GAAP so seven, deferred operations included the of compensation XXXX release we page supplemental show your we quarter highlighting the This of schedule XXXX. disclosure, earnings impact a For a changes of also accounts, and today’s to on first in to reconciliation

consultant Turning to was compared quarter operations, XX.X% temporary one now applicable revenues and quarter of gross our gross in to revenues, ago. the first first of margin applicable XX.X% In staffing margin. year

gross revenues compared revenues XX.X% the ago. When staffing one quarter consultant year of first consolidated staffing same the in points and combined Our the quarter with temporary gross margin to margins, versus overall permanent first placement revenues consolidated staffing year were XXX basis ago XX.X%. in of X.X% increased quarter to

in as XX.X% first gross for X% related underlying adjusted quarter When QX were changes, one for SG&A adjusted of to gross XX.X% Protiviti in to compared year mentioned, compensation the one investment Protiviti assets for the income compared changes X% just just changes, versus -- in XX.X% Protiviti was the XX.X% SG&A to Companywide investment deferred year of XX.X% just SG&A the costs revenues was first ago. to in compared to costs one for were obligations ago. increases related related the the for SG&A by assets the When XXXX. one the as one revenues staffing in first SG&A the trust the For QX ago. in to revenues, of staffing staffing in Changes the investments compensation to global compared margin the of compared quarter, percent of quarter companywide compared Protiviti ago. was ended, trust margin year Staffing ago. same trust had XX.X% XX.X% decreases one ago. were in to Adjusted of same assets effect year SG&A year ended, quarter of to expense XX.X% in year previously these ago. revenue ended, investment the by underlying for the trust XX.X% in quarter Included deferred quarter the of costs impact XX.X% costs underlying related quarter compensation in in year underlying XX.X% for quarter, to these expense XX.X% X.X% in increasing quarter same of decreasing increases deferred in the X.X% in one were revenues and quarter first costs SG&A

in Protiviti quarter $XXX XX.X% million increases of for XX.X% year expense to First to therefore Operating the the compensation related includes segment income trust assets. quarter. Protiviti segment quarter revenues were ago was the margin million SG&A compared $XXX million. in costs investment of was deferred the XX.X%. Combined Combined This revenues, income first period. of in for was $XX underlying

of income was segment Protiviti million XX.X%. the for income First with our Segment first $XX segment $XX from million a X.X%. divisions with quarter margin was quarter Staffing segment in of a margin

ago. was Our XX% compared upon XXXX was estimated first XX%, items lower non-deductible based revenues. to of elevated year pandemic coverage tax tax impacted the quarter lower rate The to rate due a

accounts outstanding $XXX and accounts receivable. XX.X end of receivable DSO day At was days. quarter on first the to sales or the was million implied Moving

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

to compared X% versus March divisions for of for full up with year decrease XX.X% to ago. revenues year, revenues in consultant compared compares same XX.X% the were March period versus X.X% prior placement Permanent quarter. up two were the down This Our the Temporary quarter to full an decrease April quarter. one staffing of XX.X% weeks March the first first XXXX. and Revenues an the exited the for

time the overall seen have XX% period some to have information permanent the weeks to first and The quarter up would three up of on year-over-year caution we as as are growth of so estimates April, quarter share assumptions to very these XXXX. up year-over-year on Protiviti to $X.XXX all-time the company. following you of follows. to an periods midpoint midpoint but compared offer we For guidance. basis, Protiviti. an XX%, these you XX%, mind of second of $X.XX. in placement increase billion, them. $X $X.XX high XXX% into billion first in revenues into $X.XXX insight implies of XX% same trends income for against too as guidance financial Staffing EPS major are We reading Revenues Revenue the provide much XX%. we the The this per and the were the that represent revenue With to a underlying XX% our know, including into April, that up a during Midpoint adjusted XX% basis brief

to impact, temporary expenditures to XX% compensation SG&A $XX percentages, percent XX%. cloud And overall costs $XX XX% XX% XX% overall to to margin consultant XX%. gross XX% Protiviti segment investment Protiviti Staffing million $XX to capitalized revenues the XX% quarter. and XX%, XX% in income, into second Protiviti XX% deferred a XX%, Staffing of to to capital excluding million On XX% XX% million, year with and and and XX%. to the staffing X% to as XX%, Full overall XX%, computing

our provide million. one XX% to to our filings. this on rate risks XX% in call the estimates tax at We and shares are mentioned and guidance SEC All Our quarter. we press -- in to subject release XX% $XXX today’s limit

back the I Keith. turn over to Now will call

Keith Waddell

Mike. you, Thank

past. seen recovery experienced client-size business, Our and This the staffing a results levels. faster we early geographies, than was of broad-based the have in of very across lines during cycle skill and accelerated indicating pace quarter

of for and bodes led us. impacted after record way which businesses This As level. peak had the openings could XX% NFIB during the negatively small job being recently they I a mentioned more small was well earlier, of businesses the that pandemic. The medium-sized not fill reported

enable technologies quickly allowed become solutions adapt meet these in commonplace. client remote a investments us across new is across work with the to find solution hybrid us Our Protiviti needs marketplace, broader consulting resource to pipeline has to advanced technologies with where to our to Together AI have clients and highly our and multiyear pools. segments. both continues offerings and diversified and double-digit critical growth of that talent people, thrive, a

nimble contract extremely complementing to in solutions this talent, blended us we and Protiviti’s our to Our needs going be increasing cost to and of expect effective allows part offering be offerings with client business an forward. response

current Work and about and Forbes’ employees the recognition XXXX. to and few model. for We buoyed days. our business are people, and FORTUNE’s we balance received our our for prospects thank to professional our the momentum beyond, are last Best just of for like would two of also in strength XXXX our We Diversity XXXX by Employers for XXX technology brands, in Best our These awards our the possible excited Companies making

I’d is Mike there needed. your happy as be one to back ask question just up to Please time, for Now, a answer and additional follow we questions. come will If single questions. and you

Operator

Instructions] the comes Andrew Your of [Operator with line JPMorgan. question first from Steinerman

Andrew Steinerman

if It’s the has growth of brand there Robert really terms for XXXX growth of Keith, I ongoing you recessions you expansion, revenue us revenue wanted something where U.S. particularly the entered past Hi. economic new a Half? strong recession on were about years kind really at economy, in of which supported XXXX was our ask which Andrew. bodes to is than felt for mid single-digit only the Robert and different in we lands that basis just Half? it more Or

Keith Waddell

we the would And XX%. little that temp peak post-trough Well, perm it temp pretty first example, post-trough, the that, to for look up very After financial the those the this quantify XX%, up Further, first recovery bit, consistent recoverypost.com, traditional up cycles. an up perm for XX%, up three XX% quarters those perm recent. the XX%. for we crisis across the time declines temp three cycle and at the up you time, crisis, and post-financial side to trough feels Andrew, say if a at three just looked early on and X%, quarters are temp as decline,

tell would clients feels demand got cut dimensions there people very as always, lean I Our that recovery broadly you across improving is all that deep, staff. that that talked have they classic, the the about,

As many we into it improve, they times well they for spoken we projects more a feels believe workforce, under need very are got have volumes their we as about. classical. so need we to as five-year to three-year us, restore transaction restart, we once have Traditionally, way upskill, and nice get runway, recovery, which help,

Andrew Steinerman

you. Thank Perfect.

Operator

from Your Robert Mark next is question with Baird. Marcon W.

Mark Marcon

Good afternoon, Michael. and Keith

on results. like congratulations I’d about stellar the First talk to of Protiviti. all,

into ended also give color the having, what’s with little talk here share? public are did and of really about little just us you am the was uplift gaining speaking quarters, for say you what give the you But growth. eliminated well. more intersegment continues but XX% bit win improvement you a the you of opportunities, because just color sector then are some could can IT dimensionalize, we they obviously, Specifically, you more stellar look versus can so And it go if revenue, of to you how some staffing terms bit rate obviously straight SPACs of the the as an if going can what drivers, the take can XX in that at broad-based, mentioned, wondering regards second a in -- that us terms can getting quarter, in If the up work, wondering I being a are the if work, broadly results terms of and there? the to forecasting is wondering you more see some results give adept you much on we more commentary

Keith Waddell

Sure.

said, you -- I it the adding core and totally as growth and proud so, solutions, with what points risk sector compliance, between splits rate And we rate. Blended XX% grew and exclusive internal solutions blended which XXX%, XX% call year-on-year, growth XX of audit, very public to pretty then evenly the the solutions. core are will tech, grew

And the have between then So you XX growth blended blended have from got sector public of growth non-public core, by points those the points solutions coming XX XX-XX split sector. and got rate you rate from coming of solutions. about the way,

So public contribution that sizes if you will the to sector.

are which their cyber, and practice If you picking then have look they privacy, at their about about core at solutions, levels strategic been been are they as to transformation, including hires in senior the right so right areas, have the in they strategic very digital levels are making shots tech, they in analytics. in data very very they

preparation, some our they from it’s the it’s internal also have thing Internal during and blended not benefiting SPACs. lead the to regulatory with Protiviti. cut audit, about, is guidance. we IPOs public I very of for solutions and with consumer year clients regulator as reinstating which the about conservatively contributing. have which you solution As staffing U.S. consulting laundering, before, our generally, very budget call sizable the strong, aggressive exam last anti-money now now -- outside budgets spoke lending and Risk -- interesting talked sector aggressive for QX would enforcement, clearly we area The very the are Further, have have U.S., all in the pandemic, just for engagements got been is audit their compliance that tech largest core good. remains

pleased very So with we are that.

for assistance. and going a before is that accounting funding, education. going and we K those college A opportunity have higher lot new distributing help level, a we funds. and XX need are around the to get funding talked in sector of to institutions engagements of unemployment, seeing There’s large lot are those that going are housing public As through level to are

opportunity. pleased We advantage the or where as already gotten and are we we we about organizing this we take that speak education have have been of are to renewals mobilizing

solution non-public times XX%. in got for guide we we where of revenue it’s as additional the up blended virtually getting every from those sector only but as sector as well, for So well work solutions, one are from that have so the not core public QX Protiviti area,

Mark Marcon

you Thank the great. for That’s color.

the Big on to wanted Just to sounds because be getting to the mean they win but are things the Well, the relative your are another more, then XXX% the for to public hear it on one clear, just we just are I fade, a on all sector, here you different pushback two, little bit suspect like those to be number rate sorts that obviously only is they what’s confirm year of to are just you going that, of you senses. Can number And a I are temporary, and few to one? sometimes months comment going Four, opportunities. win continuing sense?

Keith Waddell

are that Four Big compete them. Big frenemies. one On win hand, with on rates, understand Four Well, the we

On the are audit the external their of engagements, Big other party refer they conflicted with we hand when first we external other because they on audit don’t like to, compete the them Four. because are

of rate consistent don’t simply in that we solutions win use. have where the sector, likes a I’d on I rising, word Chairman guess, that blended area Fed Reserve say is capabilities So sustainability and And have. they transitory with the this particularly issue our public our is to

their to modernize we we are they there as building been improve as processes, are transaction transparent that leverage new that bulge that very their also But we their helping improve clearly relationships clear technology. we been is we the have as dimension believe have controls, volumes We a they with. they can

are going intense there very certainly window school and we that are very hard are time relationship local extend these working those. government with have of local and aware a to a and even is state where districts, we we So to

We extensions pleased sometimes we surprised work are seeing, third that quarter we have been and with the are second the or already doing. very quarter with positively into this

bulge but and make there’s public sector, excluding the point is it’s tried by and So an going element clearly still there I only to it, way, a Protiviti’s think opportunity. is totally in what’s have XX%. to the not And bulge growing oh, we

can of term, think growing longer that number. big leverage XX growth it and is for their and that’s we points other so we core a it in And business love XX%, gravy we but

Mark Marcon

Thank you. agreed. Totally

Operator

is Jeff Capital with from question next BMO Your Silber Markets.

Jeff Silber

I Thanks clients the in? the expected. so discussion to good the could or type they little either better really of seeing type really than color quarter place perm trade much. wanted shift much a Can of a we over to had segment, most I are think where you jobs get the which in that people

Keith Waddell

than The are the great is clients. more is perm news, side that would it’s and temporary Jeff, say, I SMB cross our And placement we overall.

almost But so by general by perm finance creative. payroll, So accounting the senior as if technology referred and it’s it’s SMB. well accounting meaning accounts and as as receivable, people, and to and higher It’s it’s by functional it’s skill and it’s for accounts marketing it’s level, transactional definition, I it’s controllers. area, legal accountants, managers, earlier, level it’s payable, the ledger

for only getting make being at confidentially them It’s more broad. candidates are outside very changes, it our United to across recruiters. home geographies the it’s the job United So with confident States to interview as news frankly easier within is but makes plus Good well. broad States not

So Very robust, were which growth. we that’s you our got broad, have post-quarter triple-digit momentum numbers, gave the We perm. quarter. into going huge good very for

as white-hot say, So our would the people is at perm, moment.

Jeff Silber

little your give we business? shift any country color Okay. piece Mexico? a Can by you That’s exposure have and you of over to international bit the hear. Thanks. us to do Can also just in of great

Keith Waddell

do the U.K. have out But our I quarters. part latter country-by-country Asia, across frankly, and the exposure nice particularly we and geographies a Well, call and had that in of not is would Europe lot don’t in good so... Mexico recovery to easy. there was We Germany do discussion.

Jeff Silber

Okay.

Keith Waddell

All right.

Jeff Silber

hear. That’s much. so Thanks to great

Operator

from Manav is Barclays. with Your Patnaik next question

Manav Patnaik

to than The is, thinking could piece looks get I to just guess, cycle recovery more to about the of is of just if an was like? up I it But, catching am levels. seen. left faster you early idea how what much bit what guess, have terms has a of trying start I before you growth I pre-pandemic pure in compare curious the been we just XXXX future

Keith Waddell

Right. A good question.

we perm are So we about to rather fully the below XXXX blow XXXX than expect for our by we current XXXX sooner about XX% just the XX% below later. And are and over at side. temp on pace, side

Manav Patnaik

competition, it and of just big any -- was I seeing quickly competitive the behavior Okay. dynamics just catch-up you if if obviously things the same other going I And is have are are terms wondering question changes in the or had on am changed? in given this

Keith Waddell

on our question staff? internal your or is employees engagements contract regarding And put our we

Manav Patnaik

No. I and on-assignment meant just more other from competition with well? as vendors the

Keith Waddell

on on-assignment specific competitor we our mid- in even companies, focus of in Well, well. focus since SMBs a large-cap a is small on a I’d tech as lot they very and business, and particularly say, relatively part

apples not vis-à-vis at a pricing lot there. say, the much our there’s competitive and hasn’t as apples landscape changed to generally all. I’d But competitors So of

Manav Patnaik

you. Thank it. Got

Operator

McVeigh is Suisse. Credit next Your Kevin question with from

Kevin McVeigh

you on results. all-time among think your is thinking earnings, are internally? inability the to are business trajectory the high things with much may about about Great. margins is to Thanks some geared, the business congratulations you the you where it high for staffing Keith, be structurally talked the excess staff? are you that. or and of or the positioned How capacity so way margin Do hire like relative levels

Keith Waddell

and and as traditionally this downturn, profitability, were have start with have we trough we XXX. are in Well, we XXX when time down we points, to peak down margins, a about so basis before, only those talked discussions to talk gross

to pay have recovered. bill now are back We spreads pre-pandemic levels,

And payroll more isn’t of fringe Temp make lower hire got as got in have we we talked tranche well. our as this have We the of were higher contractors XXXX. to that’s XXXX, divisions been mix, tax. X% more because our up have to of they They X.X%. subject as got X%. rates also that margins growing full-time payroll high rate to X.X% higher currently about meaning conversions pay -- and have have They

the because -- So like points, upside there is so are some in we there’s to temporary some that, pay if to for We margin have short-term for got we short-term, projecting XX to hopefully in sequential and our from off their QX, staff transitory up to contract vaccine QX, there. recover an off caution temp or or would up time basis get gross time needed. reduction But that’s a thing.

got particularly SG&A rapid well. That from there with it’s because internal growth the perm rates, as past. said, we I given staff front, begin to On staff, the on level, more XXXX, are as are just add think have even than its replacement a going to slowly very to in is which average be we and been below on existing are we said, of fringent -- headcount still we we still capacity going

Kevin McVeigh

Super helpful. Is candidates or sourcing it a -- candidate And are -- from like Keith, there no you is perspective? that issue from that there. right how is is it sounds

Keith Waddell

they the On commute opportunities also outside either COVID, opportunity in unemployment if like have don’t have having but they are out I’d live move without to there. they say because nuanced their as got hand, many a opportunities, opportunities, have as don’t children, they even city, to have big of don’t about they well one local meets the times, than They is got care, candidate resistant for get are they market more got live they big the and big times, a got uncertainty school pay of supply city now an they child onsite eye. for they have benefits. city, concerned

to So add good their themselves a it’s But allows very is, markets. complicated it the nuanced value, to more news candidates, source us more local outside situation for because it’s particularly candidates. with clients

to these value. us in of experienced So way candidate give way we new and the because opportunity an the an technology I have and add combination nuances. argue, developed of in our would that increased all a recruiters

do market clients doing It’s themselves try relative as to add a think different -- our on have as particularly It’s of own. they are is anything, it degree, to I relative such just that world. world. positioning are some think better And regional traditional the and relationships, don’t capabilities, their our to have don’t the which understanding competitive they than complicated competitors, local recruiter if a they ever. clients firms, more I always they people out

Kevin McVeigh

Yes. much. Thanks so

Operator

question with next Your Bisbee is BofA from Securities. Gary

Gary Bisbee

afternoon. Good Hey.

the gross in any discernible So external is or have. the to those staffing it are success have people are relatively of impact that tremendous when what one first blended they temp generally you staffing, down continue Does or on you margins on business out the staffing either up representative to an client?

Keith Waddell

that, to because margins we impacted not by over pushed Protiviti. at it’s Well, so temp been report first of all, all gross are staffing the

been on are gross a If our margins, they by both say with you the to serviced at the maybe clients are general asking I’d itself fantastic some to how going those pressure -- margin that’s with have base much typically staffing margins that given by the normal our skews that’s business or gross little to Protiviti. would larger clients above, by avoided together market compares is which and larger client going

Gary Bisbee

But say, Protiviti. gross hey, points safe margin above is it temp to roughly XX so then

Protiviti because helping revenue that So way growth delta that you price margins, there or it? the of the is is

Keith Waddell

there’s pitch in and working and margins Protiviti because because people or large accretive they Well, reduction, in by when these blended I reported utilized. large. part, the no Protiviti’s say, time They are paid are are XXX% utilization so, solutions to would only are

portion So their full them has of the because large impact differential workforce margin, that huge Protiviti’s time a gross management structure. utilization margin and makes is for utilization accretive Protiviti’s on

Gary Bisbee

Even And back quarters, guess, even Yeah. then non-public even several sector, it gave gained the sector. we out like feels sense I public if public really in year, of the a the solutions Got blended but sector it. last what... portion you last momentum of have versus tremendous

Keith Waddell

Right. Absolutely.

blended take of away… You total half solutions

Gary Bisbee

Right.

Keith Waddell

are that sector. solutions And what is blended you non-public have left

Gary Bisbee

Right.

Keith Waddell

those And quite… are doing

Gary Bisbee

They are half...

Keith Waddell

too. well …quite

Gary Bisbee

Half of think. I growth year-to-year

similar would few of So quarters. that it’s be you rest a... The to million what $XX last the traditional. it Is said or

Keith Waddell

Correct. very The rest well. of it’s doing

Gary Bisbee

aggressively picked And clients the why it momentum more think is selling and has drivers you momentum? the of just are durability or the the it about of up, that Thanks. trying just are to responding

Keith Waddell

it say, more I’d we aggressively. are Well, selling

We that are just selling service. to consciously adding focus that on developers

Protiviti are to had, so success and subject-matter manages to We the get adding the we on with those success projects success. expertise that have side

really it’s thing. great. said now is It’s just U.S. international, which gone earlier, As I not a

wonderful the some of We U.S. have outside wins got

globally on people also has it. the nobody they the just that and else side, it So see they Protiviti and staffing that side works see

Gary Bisbee

Right.

Okay. great. That Thank you. sounds

Operator

next with Truist Your is Tobey question from Securities. Sommer

Tobey Sommer

you. Thank

Given of the bill decline to-date, this do rates and in cycle? compensation sort nature of the odd think you of sort rebound inflation robust and about how

Michael Buckley

It’s a traditionally side our -- already an wage usually widen that, also doing rate, is and the to friend which opportunity bit. candidate and us it to is the pass-through inflation spread expected would not further we say, as only pay gives also our I tightens, do it’s but higher

the look our So and back is inflation XX you can years wage can see you friend.

as going things would that I wage to project think any improve. there’s be reasonable inflation person some

Tobey Sommer

Thanks.

different? and dampen On for perhaps margins the gross that how cycle of subsequent recession nice tailwind is a social costs this exiting years recovery, then typically provide

Keith Waddell

Well, to or interesting the than charge staffing but what downturns I pool. pool claims increases all to unemployment around, across working lot claims general them state’s had one by temporary be case individual federal could subsidies the been agree to to forever benefit general our years the of increase employees rates. argued is be I account. get company that claims that a not states the on it’s the keep charged the less file the and likely us during the state not stay their have to make time we going in mean that to for would industry with had that And a into been the the could the accounts, this because be that, case to are years previously to instead will to unemployment three as average five the

day, it every that the only that. will because that by us haven’t one and I know pool but claims accounts large hurt I don’t we than the benefit about to am tell, elevated concept us, been So optimistic charged will more that will read time individual our cautiously

Tobey Sommer

Thank you.

Operator

question from next Jefferies. Mazari Your Hamzah is with

Hamzah Mazari

want it capacity about and your it that differently, been on business. the you trends in in slightly given seeing the just ask guess, bit few I the there’s business calls mentioned you capacity call the about little levels the having are a and the current just guess, maybe Over at earlier past I capacity to that in at having questions remaining or you you would should right like long we point to, are cycle can the little expect a or overall think now, business, the hiring? to in It internally? I how you perm bit go ramp you ramp without sounds guess to expect doing in when hire do but in what

Keith Waddell

or going benefit larger productivity be remote that more demands. share of office office is, resources no in is one we than there But forward areas. staff. assisted can by work, we Well, have the been anyway will clearly they should can remotely side, office got internal we point the staff office to couple temp peak existing understand we on think longer have neighboring a distant because demand. for just we our a us And past with we have that every we a be peak efficient to when single have quarters a internal be instead because with My across fine

levels number prior need productivity because given of matter not So a it’s X just of are recovering, we we staff.

much I impacts to our the talked also hire. also average longer tenure existing As is normal, which about, need than staff our have of

So short, internally. hire long as to referenced, are we you story beginning

four might quarters. even tools at couple But we than slower we benefit pace seen or a it will a our have got the we have got remote temp. last in pay quarters of for because the starting there be of that from probably it work, us are otherwise of off the really We benefits have have technology been, three from

Hamzah Mazari

I over. one more just have will and Thank Great. I turn it you.

there we XXXX? throughout Just guys looking that to currently? chunkier deals I or deals Protiviti know there within done any the smaller Protiviti. Is you expect remainder you should smaller anything on any deals M&A, some of have are Are specific at

Keith Waddell

with always quarter. Management they solution for Protiviti what to areas culturally that last strategically say for do. are is groups and that I’d practice fit the looking deal did Identity trying They

stay the they they tuned, that background I’d for of smaller say business that Big areas, -- so, consulting just ordinary of that practice it’s have but of cultural looking part it’s And course times have. are many firms, same Four the kind

Hamzah Mazari

Great. Thank you much. very

Operator

George Tong Sachs. Goldman Your next with question from is

George Tong

Good Hi. Thanks. afternoon.

growth by? much staffing in Protiviti benefit it sector growth public by XX% quarter. that temp lifted the How mentioned did work You

Keith Waddell

of very Virtually it public zero The question. lines I it gets point in asked glad eliminated. starts and the on a while and the it’s work, you sector am important business staffing,

eliminates intersegment of that work. you all elimination see line that So

public of rates mentioned, impacted ex-public mentioned, half public is their growth on a growth over really temp sector And not rate, the it’s it’s sector is for the you work, Protiviti about the but are just still side. The I sector. by So staffing just of half number. XX% as big

George Tong

performance you Very business then Europe. compare temp Got to various of you And recovery? that would in and the trajectories the How staffing it. the at compare the in if helpful. U.S. look

Keith Waddell

consistent. Amazingly

you If non-U.S., and consistent. I consistent. disclose temp say amazingly It’s look perm, versus they amazingly we and are would U.S. at

George Tong

helpful. Got it. you. Very Thank

Keith Waddell

Okay.

question. last our Thanks for everyone that’s joining. think I

Operator

today’s This concludes teleconference.

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

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

Robert Half International (RHI) 22 Apr 212021 Q1 Earnings call transcript