RHI - Earnings call transcript Q4 2021 | Robert Half International Inc.

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Operator

Hello. And welcome to the Robert Half Fourth 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

everyone. your Hello, today. We you. time appreciate Thank

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

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

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

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

broad-based the extraordinary our our XXXX all an today's grew revenues and available results staffing businesses. exceeding high-end the in quarter XX% business was of and record are across website, sustained remarks guidance consulting call net your grew convenience, and our roberthalf.com. for of income Fourth reflecting prepared For Investor Center we XX%, demand organically. our and annual year, achieved

show operations year-on-year Our continued results and XX% very placement growing permanent XX% respectively. Protiviti strong and by revenues to

$XXX also XXXX were income fourth enthusiasm impressed in success with continue $X.XX billion XX%. XXXX, higher in fourth corporate XX% per up from were operations of adjusted basis. a including to of higher distributed drive year flow income million. and quarter and one energy, of possible. would was and grew the a and our quarter XXXX. of December, was our In year's with growth of outlay cash on during XX% cash XX% fourth in global share XX% to quarter fourth without fourth quarter dividend and be quarter Cash resources, a by $X.XX in consulting we ago. year-on-year well not workforce, compared per revenues be revenues management the net record $XX reported quarter the last Company-wide compared million. $X.XX $X.XX, to share the particular Our temporary whom professionals of Protiviti pre-pandemic strength had I shareholders the revenue entire services staffing from which operations total with performed the for increasing staffing, Net our and was XX% by both

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

was XX% shares on Board-approved company quarter. the capital repurchase in repurchase stock We our available plan. have for Return million X.X fourth invested for the under

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

Mike Buckley

Keith. And you, Thank hello, everyone.

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

increased effect the XX.X days from XX.X has quarter, there XXXX. rate XX.X XX We movements In were billing the of year-over-year exchange of countries third locations billing have reported revenues United points. the quarter locations the revenues mix rate rates X.X%. of staffing fourth days from first including to changes Temporary in currency worldwide, during outside by million. quarter the the Currency line XXX decreasing and consultant same adjusted to compared quarter quarter revenue for X.X was the quarter current business, unchanged This days, year and ago. for impacted by quarter bill compared had the $X staffing country. of for fourth in billing The percentage year-over-year our growth This one X.X% by XX States. rate first reported year staffing XXXX one of ago, the

$XXX Now XX% million results business XX% revenues United locations States. the global in and through adjusted versus Protiviti in fourth for X.X percentage as effect Protiviti year million points. the network $XXX on up had is Protiviti. revenues from On a $XXX were decreasing let's quarter of a XX Global closer reported clients fourth Protiviti as-adjusted within revenues United firms Non-U.S. an revenues of the outside from year-over-year $X XX%. million by look U.S. an at States rates growth take Exchange the up and decreasing quarter and ago were member basis, the of that by is up XX revenues operations million, were independently countries. rates its owned serve year-over-year its basis. with Protiviti period,

which spreads and same were quarter the quarter the temporary fourth quarter Turning margin of pay positively now year impacted consultant higher XX.X% to year staffing bill of gross gross was X.X% conversion operations, ago. compared revenues margin. quarter in by the and X.X% in XX.X% revenues In revenues in Gross revenues were of revenue one margins applicable and one our of expanding ago. fourth to applicable

combined points year XX.X% compared and placement of gross the to an X.X% Our fourth percentage X.X ago. fourth overall the were consolidated consolidated increase in quarter. margin, ago with consultant permanent of staffing year in was revenues quarter XX.X%, temporary margin staffing quarter revenues staffing versus revenues gross When the of same one

for ago. due revenue increased year deferred the divisions, XX.X% from revenues XX% in of the Protiviti up Protiviti staffing is XXXX. and one margin revenues In for of classification Protiviti, quarter XX.X% XX.X% had compared ago This the of versus related X,XXX margin of SG&A improved had compensation mix the services. in just an quarter year. and the prior higher internal deferred year ago adjusted For for our margin quarter's hours. billable overall gross just XX.X% to employees year year Adjusted one revenues XX.X% Company-wide XXXX, SG&A compared gross year the XX.X% prior revenues in company-wide deferred quarter classification costs compensation Fourth staffing the SG&A compared ago. margins XX% classification costs versus the quarter mix the higher SG&A ago. ended permanent year of Protiviti's was gross points quarter one quarter contractors. to global consistent placement quarter impacts, with primarily up to ago. ago. XX.X% of Protiviti related same Protiviti full-time XX.X% XX.X% XX.X% Protiviti's staffing revenues from costs of XX.X% one year related costs effect X.X we XX,XXX this XX% to in percentage were period. of compared to the We in The ended in for costs SG&A fourth was impacts, compared XXXX impacts, were Protiviti the year compared were is one Protiviti Staffing Adjusted for quarter Adjusted were in for to ended ended employees fourth increase fourth of were SG&A one revenue quarter the XX% for to XX.X% just adding for full-time ratio. with compensation to of

staffing therefore segment was classification income. $XXX million from $XXX Moving of impacts, of the XX.X%. income fourth Combined segment $XXX with in quarter million income million. on XX.X%. the income XX.X%. segment the a our deferred with compensation to Fourth fourth million for combined divisions Operating segment quarter. for segment was margin segment quarter $XX was related was income Segment was Adjusted Protiviti margin a quarter for in margin

The stock XX% fourth one in tax outstanding coverage and quarter, expenses tax in to be for to At compared XXXX end due sales can implied higher better $XXX Our due was rise the receivable XXXX fourth ago. attributed rate were million stock well quarter to non-deductible rate income the compensation price. lower DSO of XX% company's days. the days as was accounts of to higher XX the deductions as year

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

quarter year the of X Our divisions XX% fourth December up ago. Permanent December exited compared XX% versus XX.X% temporary the up year compared January with the revenues in in the December compares prior one to revenues placement the were and versus full increase XX% full quarter. quarter. for consultant This increase period XXXX. same for up were weeks the XX% staffing to Revenues first to

$XX the as on are first capitalized to income outstanding XX% January, release major For Revenue permanent to staffing We some Tax the XX%. know, saw are million and the have XX%. and basis; we million. in were XX% XXXX. to our to quarter. on compensation the guidance $X.XX trends year-over-year quarter staffing to to today's midpoint periods. quarter estimates to as to $XXX so up information up overall, $XX than expenditures XX% during million revenues same provide overall, in a temporary EPS the XX%; Segment XX% into XX% SG&A midpoint up for one growth XX% compared XX%, first for Protiviti, in capital XX% XXX the overall, guidance: of this XX% and We financial to same XX% adjusted margin filings. these a XX%; deferred weeks in Shares classification you of is Revenues, against underlying placement XX%. staffing, on to per our of and $X.XX; XX% period them. Gross assumptions reading revenues to Protiviti, following of overall, XXXX midpoint with XX%; up period SEC XX%; estimates XXX costs, share XX% insight cloud XXXX. XX% provide the Protiviti, risks we to very staffing you mind, XX.X% fourth million an The follows: are to excluding revenues, But limit first brief $X.XX computing X higher this into to to time as million percent $XX We that XX%; All the these January. rate, call basis, billion; consultant XX%. XX%; press XX% to much to offer are With to during XX%, income in into percentages; Protiviti, XX%. too caution mentioned million $X.XXX billion $X.XXX XXXX than $X.XXX impacts: higher to billion XX% XX% quarter. of we to to subject as

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

Keith Waddell

here strengthens technologies clients a than gaining no from may not at at our jobs Business, and not is recovering positions those that The remotely. our lower competitive significant talent labor have creates qualified lines to ability trying or applicants our across continuing Mike. together XX% continue office past. at change candidates points continues clients network, also models recruit database, This well for have change is locally. find hiring It our working price owners small firms since faster for these demand our our geography global out to undergoing numerous needed preference to record willing analytics for and data The to scale brand, Many hybrid working This extraordinary remote And work the candidates Thank access levels. global gain they global stay for be us. brings recruitment and and AI-driven than strong excel and you, our are and market at benefit deeper all business. of increases strengths, our regional Federation market placements. candidate Remote and able levels, job we and pool be our toughest pace traction do to a for advanced remote staffing including as are recently arrangements. and to experienced opportunity a increasingly to in embrace recruit by outside few National Clients their filled. business us demand XX% open to client to that simply geographies competitors, capabilities. our to Independent very and see NFIB, in services broad as could had This of traditionally basis, the we've contributed or on hire of our staffing and a coupled has openings of reported for had industries, a bode of with local significantly spanning skill results robust successfully size, professionals position

of highly quarters strong consecutive XXX% and achieved and Growth growth dot-com of Similar business since and XX%, across and be continues with and XX% the XX%, respectively. and the group the Our company numbers is Protiviti privacy recoveries temporary segments XX% permanent offerings. and and performance with placement the applications internal differentiator respectively, blended were during solution staffing years remains solution and particular the consulting for strong pandemic improvement. including XX% to for base X crisis and consulting, a consulting growth Protiviti solutions strength solutions and as cumulative sequential consulting have technology a and of enterprise financial Technology compliance audit, with multiple data diversified well suite analytics. cybersecurity risk client as in largest and trough.

quarter revenues the and consulting to created new governmental its to client Protiviti, the scalability XX% rate million sector were several continue collaboration credentials in accretive the the whose and work as skills with also are provide programs. relationships applicable $XX for new Protiviti's relationships sector Fourth see remarkable staffing sector growth has last public various project deep million, providing cost as of commercial benefited solution pairs with to on needs. in with commercial candidates operational between base a effective We deep Public core and from $XXX with and stimulus skills which growth from engagements. work to resources world-class results well the has from strong public Protiviti both resulting a Protiviti component quarter. client to quarters talent staffing's

finance other we're and As and significant stimulus projects. moderate, opportunities, a transformation square to pipeline continues modernization IT building including of

sector flat to quarter be the revenues first XXXX. XX% public We to up quarter to XXXX first compared expect of

and to our New the earnings and for was professionals began technology, a We before. laser-focused brands focus steadfast The our support for provides and Year brand There's our recovery candidates, formerly QX, by from Robert multiyear separately. we flexibility to when We disclosures Robert The experienced process business administrative meaningful of customer Half. contract and single reported a sector with Half the go-to-market the optimism and purpose temporary and mid-XXXX, and and will clients Accountemps need we've to the for family will reduces for finance and business operations digital on people XXXX, change brands public a and based for Talent the our Protiviti, organization. expand remain our staffing matter unify new allows our talent model. and We they our functional number we our clients awareness of This and of on combines to accounting, Finance greater Robert year substantial be to revenues completed was our our operations divisions. continue to commercial to onto also specialized are Half operations subject now placement confidently and endorsed leverage new revenues XXXX brand professionals. engagements. name, expect brand, from redeployment need simplifies on now with and the Also, of or anything our administrative candidates technology one be existing people, referred work call In as rather a staffing divisional structure fragmentation Technology. former an expertise and with and extraordinary Robert corporate previously Solutions Beginning compete specializations and to Management customer Half. support unlike functional time-tested without a than practice branded deep connect permanent groups financial and previously technology. pace record no accounting Resources, contract was our and tremendous our operations and staffing grow. brands. exciting and be to will expertise for OfficeTeam future underlying Protiviti distinguishing momentum operations provide

we'd world Equality Best Rights XX XXX% earning Finally, the Work Place thank a around once and company Equality last were our Campaign to like of again we the number by to Bloomberg making on accolades. to rating named LGBTQ+ as the Human new employees Equality Corporate In recognized Index. for the Index possible the for its a Gender also hours, just

for to proud are efforts. equity continue commitment we the and of diversity, receive We to our recognition particularly inclusion

just Mike and I question Please happy needed. would If Now follow to ask there's your single to you. answer one a as time, come we'll and be up back questions.

Operator

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

Mark Marcon

versus great I And expectations afternoon. year. congratulations could a regards was on the Protiviti, a talk about the Good side. more particularly bit if side wondering with government the on you little commercial to

growth the is? opportunities. seems you do like think sustainable there certainly how commercial are It digital more Just transformation

area. being You're now your that focused, biggest practice obviously technologically

can growth wondering that internationally. brand the wondering getting how spreading it's that growth itself commercial what So Protiviti So is? pretty of seeing within a you distinguishing also that really and think internationally? you're then And as recognition. name U.S., sustainable of extent sort is you discuss I'm lot a that the just do clear to that's

Keith Waddell

we'll expect frankly, up Well, sector Protiviti improvement continues several about see flat to an expand XX questions being significantly talked which, expectations commercially. is days public our the versus XX%, to to ago. We there.

where backdrop side, success fourth commercial the some all particular sector. staff. would in well going The employee There growth that not very of staff versus brands by name recruiting Germany, consider experienced quarter, We've public country to you the in ex expectation It's additional the and is on SG&A the Protiviti the additional remain first they're The U.S., board. in the IZ, also aggressively cost are there. the IZ Australia, to speak. UK, are issue XX% had well. and fact, better. -- training dilution adding the on contemplate the up flat recognized doing also hires On quarter for quarter. Protiviti's bring sector, many the intact be the has and we as internal never to demand through first The which assumptions is business would been for significant XX% the is public additional

now XX% business U.S. of with Fortune I we do the think in the XXXX

brand recognition increasing we is so get those penetration from And as accounts. better

Mark Marcon

That's great.

how juxtapose work like ask like cost the follow-up, that level a bill seems arbitrage. And X.X% you As being a there's labor the It about I'd virtual rate expansion. done. that's to with increased of

the a can if is like-for-like on basis seeing I'm so you And wondering X.X% comment that. on interesting. increase

Keith Waddell

tend than X%. range to X.X% to certainly we've recoveries where X% cycle in higher is the would be seen Well, prior early the

So it's hugely remote of not mix. That any X.X% limited irrespective a practice its to little on-premise is high. group It's not versus high.

So The the inflation areas. portion of a margins percentage a I wouldn't the we're the little pass just time. just firmness labor work. necessarily place expand attribute rate the while across higher practice news of instead, is at gross our and good It's good bill skill able elevated, across be levels, higher through But to same to the markets board, across to is wage certainly that a in. remote

Mark Marcon

again. Absolutely. Congratulations

Operator

Your with next question Andrew Steinerman JPMorgan. of from comes the line

Andrew Steinerman

if versus experienced focus how often. you've to professionals, about too generally I staff. hear supply you in is, the when just the just more labor and accounting professionals F&A that finance we we are you now My is could of of you past? us to could which you wanted both really other answer mentioned bit, you the just even Protiviti, a ask question tight professionals in for States, aggressively adding it Protiviti tight, But on supply. and kind if little tell you accounting And United times and And Keith. feel look maybe at finance hear

Keith Waddell

their true, and Generally, used get the tight. not candidates want before, counter people go levels to would it they're degree, historical get They Well, on offers. rate paid and been engagements again, site. unemployment a though current to be I want say, offers. manageably past. X.X. remote and lows. the at are multiple College with low, That's premium in It's Even they is unemployment we've a currently use college I'll sub-X term

proprietary professionals recoveries significantly Further, assignment, They work science. use that that our Remote that access recruiting. very in the database the not from. a which to bench are our they supply Our available can staff and got equation. the passed. side also pool proprietary they've are had have a we've also tool AI expands is recruit at of This skilled for of full-time addresses data

of given this. manage talking all of to given on you're been all able those the tools and to and for of experience traditional access So which the practice continue be the the expect workers reasons, able people that supply the we've we'll depending remote have, group And ability workers, our XX% given from to through we to range XX% to about. we side remote use to manage the

Andrew Steinerman

there professionals professionals, Maybe Like positions a F&A F&A. little availability again, specific recruiting position just versus a for be to little you're you you're more do like IT that for for about when of more feel when example? be compared recruiting F&A might IT

Keith Waddell

people it both at they're -- more remote to want levels. tend to work higher probably F&A clients say where to on operational I'd be than on the at is the side Well, tighter is than conducive tend levels the tight site. operational level higher levels The

So case to the as it's could I guess tight. IT, make not relative that you

I tight, But way it's again, think we this. think tight. fair, manage can that's but we our through manageably

Andrew Steinerman

so Got much. it. Appreciate you it. Thank

Operator

Hamzah next with is Your question Jefferies. from Mazari

Hans Hoffman

is for Hans This filling Hamzah in Hi. Hoffman Mazari.

staffing in some just provide slowed it there? is, like Could and drivers temp question technology color you first QX. looks my So the on

Keith Waddell

divisions, XX%, our well, Well, the some different fared better pandemic again, technology other of did. than of others grew fared during the than technology some

frankly, So was internal pleased were generally and fourth technology the speaking, for But they're that the it going above are. own of to we some forecast comps in others have period. than with tougher quarter our

Hans Hoffman

terms business people? recruiters, go hire and is availability right. next out Or in becoming all can just of you your have outlook? kind you then give of question issue labor you. capacity sense much And your you demand at have given my All an And is, you? of do how current more us within there for a Great. Thank to

Keith Waddell

we That staff we are add do to capacity the recruiter side of the capacity. on I'd said, beginning the there. say have business, side, on to contract

adding given tenure is they staff with growth capacity give in rates. that more here add And its requisition approval deliver. to on to count that you think I elevated one placement aggressively less much my always But can have when our we're the thing there. people staff, to permanent We you

If day for they you it, about think a living. all recruit

And ultimately working us, up others. end some of recruiters place as people, for those placing they looking to are

And so here sit the as able I with. don't any have. I today, issue internally that number recruit to have we be We'll

very this if at staff seen. Another point turnover we talk at lack all Robert resignation, of there, are look the with actually There's the Half, we're pleased great about internal attrition of we've But very is the great down, you our reshuffle. that. and our proud

Hans Hoffman

Great. Thank you so much.

Operator

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

Jeff Silber

discussion much. so to continue headcount. your the Thanks Wanted on internal

of Protiviti, a or averaging? for I want year-end gave that something. that just is annual numbers number, all, clarify to The number First you an

Keith Waddell

whereas the Well, it's portion full But of fourth that's we'll average it enter effect have the as quarter average an the XXXX that, of cost back year, only that. right. therefore, over we the full ended. was had the somewhat And

Jeff Silber

Got know it. And you given just sure a of in was the Because I or average an prior give Protiviti. years, you wasn't for always staffing year-end. year-end? I it did

Keith Waddell

full-time quarter, Protiviti employees. for contractors way, equivalents explain rather were worked Protiviti disclosed. by the Protiviti, of hours than of what combined This the the by is consistent fourth the its at about own that during contractor XX% contractors worked a And to we for get employee counts least for versus changed. methodology but we confusing, little The inclusive the hasn't try at the headcount

Jeff Silber

Okay. Great.

Sorry to the get there. in weeds

bigger my picture ask me Let question.

Staffing, in I some but looks I all-time know is about to an of headcount it much productivity you Protiviti the back like revenues. is your lower. your past So internal at seem are mean pre-pandemic high, be talked levels, tools. you've so the headcount at

mentioned to productivity going going that forward? up should to be continue ramping improve expect you're to You levels firms. these briefly But hiring we

Keith Waddell

are introduced of tools say B, level past. the of, the I'd talk our area recruiters. than for is minutes, in you'd of larger technology productive. productivity a fill we if it been these spread about can means to reflection internal a XX workload of we've that it's working like making that people average a, proud I'd which to them Further, who our higher listen. next we we be when experience We're levels. now se, remotely, has more orders per all Therefore, have happy across own the

those We we going And so that stay. We've business we hiring we focused levels think are think begun have on upside for And productivity are. us. we've where to aggressively perm. to do got already we We're all But begin here We from of hiring. in productivity. need begin do that I've these about work time our that will that times couple part adding contract us to We're a on of well we the talked the that assignment. for side. to aggressively on as full staff of well. people that as place manages internal

Jeff Silber

Thanks Fantastic. Okay. so much for the color.

Operator

of line next Credit Suisse. Kevin comes the with from question Your McVeigh

Kevin McVeigh

of XX%. a are Is Keith, back you and But the my there? in up about, since it's are close, guess, each but to we segments cycle? results. the of Great. obviously, about the think forward about and temp, I think think of a any way from been it's thinking just Protiviti I and so a perspective, I how demand within to one tricky a you're where as workforce start? of cycle is down is up XXXX pull X%, to almost of much. wide that How demand we're there on where versus of at the up you opposed in. wanted revenue went consulting, structural as result such X.X%, so kind remote Is then some I is there if the look mean any numbers kind I Congratulations overall X.X%. is way to unprecedented. Perm delta Thanks And are pretty Protiviti thinking is about

understand to and the trying Just across puts segments. three any takes

Keith Waddell

into much that or This in call than cycle recovered have projects. clearly, in early recover now transaction of we were unemployment who of done and recovery orders they've clients larger from more talent for different we the quickly pool solutions unemployment rates stay Well business past. the feel staffing high volumes the has get been and lean small that with whose people they it. elevated Typically rates that

prior And are sooner so than in labor markets stronger the they've tighter clearly, been recoveries.

As pandemic. go the to Protiviti, down Protiviti didn't during

So uninterrupted it growth. had

a public work as So point because contractor Solutions commercial in work, a easily benefit it but not down. and when higher and Protiviti of time credit been work XXXX, never -- on. for -- could its both place it's you look it's a as time point work went just give versus -- at that sector in contractor it the only you primary It's blended operations beneficiary, you now that our at never given would as sector they Talent that well had

is between other distinction versus degree. some the So blurred to one the

we in XXXX, quarter I our higher the is As incredible. fourth and revenues are which Overall comments, for or your we point. XX% earnings are think, almost talked XX% to as reference higher, was prepared said pretty relative

Kevin McVeigh

And you then on you just just the it, commercial within work, the project the but versus could in missed the repeat them, and I clear work public were Protiviti quarter?

Keith Waddell

Right.

-- took to commercial so the $XX number, about quarter, overall growth talked its XX% million gave of public We XX%. growth the And the rate for Protiviti the you core sector. we of rate

XX%. grew public sector So without XX%, grew it public sector, with

the that's of impact public So sector.

still the first into to built we're large be XXXX to guidance. intact what in year-on-year, of for public been at will degree, slows, in notwithstanding expect claims so We unemployment which than some quarter, XXXX, the XX% sector moderation processing, part though the XXXX and late-XXXX. that's year full that a happened work that or into the Even remain is optimistic the better

staff about. expected to public growth, not biggest XX% I commercial very strong, talked sector adds very Protiviti, core strong. again as core It's hiring be And from issue from XX% getting was in for QX. So at doing firms, that or consulting which primarily Underlying firms demand. then very other successful not subtracts experienced QX, Protiviti's internal they're just staff getting demand, they're that they're and other aggressively, accounting getting it. they're

Kevin McVeigh

Thank you.

Operator

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

Tobey Sommer

Thank you.

long was historical of How a not you in it's with the could delve had earlier is, it consecutive that XXXXs this we normal some growth X% period I see bill characterized wage it's We where on at could low, the there high-single growth bit lows. years. and but If you unemployment above rate put kind or context. call? you said of historic growth, X in digit, rate into little a it X believe the band maybe

Keith Waddell

in between just Well, where X look last recovery, had bill we is which had if X sustained you correct, rate X%. growth years as you said, we or and the X%

call I'd So that normal.

rates we we're it So X% whether a lower do pass X%, at can sustained it's And as a we're can is add to through you We when friend still -- recoveries. they're than mentioned because is margin Again, be our speak. an also is bit as normal it we're that going similar environment can point not inflation historical prior believe with a at enhancement. higher to our than lows, current that there's but in Unemployment we where margins. wage well. or little enhance we

Tobey Sommer

and where Right. embedded contribute And Or the a that in recovery margins cost expansion? is given of so if already a about from statement to sort at the we those add we this taxes, perspective that of cetera. the Do much could gross has runway different this been pace margin social gross has think of have point? payroll income et

Keith Waddell

our that to against to downturn. better a X prior this expect roughly on they Well, than in higher were dramatically percentage XXXX. talked state costs where for be X as years account recoveries flat claims the report that's with we about quarter. last elevated unemployment based during to little the a And for our happy they're I'm we filed what XXXX bit

if we're so I again. on So cost social the bore to seeing for we've not time from cycle, reasons And higher going seen last everybody call. far explained anything, I'm not historical the drag this early

social we not toward mix for rising news robust, going full-time cost the talk good conversions they social you in cost, more And margins. same the front. there's good recoveries, gross Mix good going for if management there's contractors, full-time gross resources, pace for got fact, lot of as to about generally good margins, for margins; had higher gross at in margin. prior you've improvement. more think gross for on mix A, gross So good hiring a going towards margins; stays room

mention, also for than faster gross got good perm line, we've margin grows margins. contract, to a not At as going gross lot us. the that's for So

Operator

George line [Operator with Sachs. from of Tong next question the Instructions] comes Your Goldman

George Tong

afternoon. Hi, thanks. Good

You you provide that the would provided guidance look Protiviti around on public over Can line thoughts expect on COVID-related XQ. public like How sector would normalize? Protiviti when work you sector demand to quarters? relief for several time next

Keith Waddell

George, believe or unemployment. XXXX. for we notwithstanding, on that were we in headwinds Well, above And what full we'll year XXXX, at have be we

education. on tailwinds have We

on finance significantly. which We backlog is we housing have and IT projects tailwinds growing assistance, and for on tailwinds the modernization have

forward, with is think sector over that we different confusing actually of public XX% as course think is centric. modernization nature grow, ramp recorded is just because Solution is flat It XXXX quarter flat not Protiviti for centric. the And And ramped be just or move that the we'll XXXX year, normalize Protiviti. XXXX. Solutions little is as XXXX is unemployment we alone, year. we'll we earlier, part said public this more blended. But the for Talent ramp IT sector, as Public full we And sector those measurement said will we the modernization, accounting recorded we projects component more of to be as assistance housing part and the So will as educational Talent public expect be to the sector. And portion first the it of The up it with down. of and up ramp. than gets that a

both in And be so it places. will

pieces flat days rate, numbers. And we XXXX, ago, look the pieces the positive this high. projects; and or actually has than So in But new think for of outlook to will we which the the a XX b, increase number, a, be you to pipeline had our an and very a that's come all which together a of to little at you when the stitch together confusing pieces when you for stitch have together stitch is in you XXXX all the overall more dramatic success pretty been of, function up. is which

George Tong

And Got perspective which Omicron end at demand you of it. the impact then a Half. have would impact say sectors to Robert with from the helpful. staffing temp and from Very seen most COVID, respect markets,

Keith Waddell

an XXXX. disclosed so grew exited acceleration right gate contract during for out teeth the of weeks is the side the that our And first X of we from we where XX% Omicron, which

impact. to it some of while a viewed I we But it's like so notwithstanding numbers thing professional and But a year-on-year, we quarter, due full acceleration, higher. a would from a And again, XX% out or came fairly of clearly, which Omicron, that's an also scheme a not small in hot saw say, as the was from contract huge X gate the absenteeism the week up was short-lived, saw short-term absenteeism even Omicron. have Protiviti drag been Omicron.

George Tong

you. Thank Great.

Operator

comes Kevin Credit line the Suisse. question of next Your with from McVeigh

Kevin McVeigh

And in I on this. advance apologize

we're government So just up comments to overall Protiviti. the up that and Protiviti flat so commercial clear, on or just Was that Was or? work? flat the

Keith Waddell

XX%. first right? Flat guidance XX%, to first our XX% Protiviti's up, So call of in all, quarter, it, would to grow so all said for the revenues we let's

up. said about sector just would if look revenues, Protiviti. at which that's public of the impact piece So XX% to Then we that flat their be you Protiviti, overall is on

means call growing will our has flat to part then be the that up XX%. XX%. growing XX%, that the Protiviti overall, So commercial it of is And guidance XX%. be will But balance Protiviti what

Kevin McVeigh

talked flat to the I for full want I year. up Keith, 'XX I about apologize. clarify I thought overall, to you said that. thought you just

Keith Waddell

the sector Well, expect flat we up. to overall, do to okay. That's year, for full public be

expect For up to we XX%. flat it the be to quarter, first

but explanations than frankly, year, whether less of the the in for the talking or XX% that's only, piece total. public So of same, the you're the quarter the sector

need slowing The they isn't other is growing XX% the the XX% issue, and not Demand down. staff.

Kevin McVeigh

Thank you.

Operator

line Marcon Baird. the with Your Mark W. Robert of next question comes from

Mark Marcon

of it's is for XX%? Protiviti my You question, work was answered XX% all of XXXX or basically, just was it public which

Keith Waddell

So public we're The quarter, and commercial saying everything. Protiviti guidance first consolidated has XX%, for everything. everything, grows the sector,

focus to If the of be on than Protiviti's which flat sector total, public you XX%. less will it XX% just piece, is up

commercial will public the first than quarter. side side grow So sector for the the faster

Mark Marcon

of a Keith, XXXX sector was reference XX% full in sector all reference. quarter fourth on all I that. I for that I or number if precision trying came of got Protiviti the public is to the XXXX from that the was a just What get wasn't percentage public that year. revenue sure was

Keith Waddell

It here I front right calculated don't the $XXX of was was those on It in a million. That's fourth $XX quarter. have me. XX%. million same numbers

it the first would third and have the to My But It started the XXXX. don't for I'm me. where second So year we in that had XX% in of XX% -- to numbers probably ended more quarter ramped. It that ramped front it in less full of is up. I guess than be than quarter. guessing,

Mark Marcon

for the which the of parts are which even growth in tailing that faster, jobless other public ultimately year then sector for growing regardless, to But end up up you've is the notwithstanding conceivably, being and going that's calculation, as means be work you through XXXX, Okay. it's expect the see full should gone off, means that the full -- And would well. some for it year, we fact of will XXXX. claims that the area the

Keith Waddell

public the year and somewhat grow additional grow component for will believe was for total. year The Public now notwithstanding XXXX, source I'm will beyond. the revenue Protiviti Protiviti XX% public for XXXX. more be absolutely permanent full a XXXX sector sector told that will we believe We of the full XXXX, sector nice, And being slowly. for nicely

Mark Marcon

Perfect. you. Thank

Operator

back no this There at questions for Keith remarks. turn further I'll are queue call in over the closing to time.

Keith Waddell

Okay. Thanks, much. today. everybody, joining Thank for very you

Operator

This concludes teleconference. today's

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

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

Robert Half International (RHI) 28 Jan 222021 Q4 Earnings call transcript