RHI - Earnings call transcript Q1 2022 | Robert Half International Inc.

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Operator

Hello, and welcome to the Robert Half First Quarter 2022 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

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

previously to are to business operations underlying resources. operations accounting, previously and and administrative as support, Finance referred referred now previously management like financial technology. accounting no customer our measures our rather During consulting our the these are Half this based to permanent staffing and this our on temporary as specializations continue disclosures former for further We'd adjusted. was press and temps our some non-GAAP we divisions. these support organization. and beginning be combines a as was mention you specialization and release. and to figures change placement formerly remind solutions. reported technology included separately. OfficeTeam. operations, account schedule formerly supplemental financial are are measures Protiviti we finance staffing earnings branded And quarter, in Also, and Robert customer functional to and is may The and Reconciliations reference Administrative operations functional that of to presentation, what talent or Technology. contract explanations than There's

services this is of and related blended to growth Protiviti amount a solutions The and revenues also with intersegment provided talent Company's intersegment supplemental of Protiviti consulting schedules from our revenues just XXXX. information and each The is operations. XXXX these presentation Our connection mentioned of businesses revenues in also through the measure specializations functional includes manage schedule with contract for separately internally. rates for we the include showing combined disclosed. how revenue This

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

pleased very strong quarter the very globe. report demand a to environment are robust We by another driven across

First income XX% quarter a basis. grew revenues XX% and grew net on year-over-year

led Our the revenue again way, of year-over-year permanent growth talent placement XX%. achieving solutions

year-over-year Our and contract growing Protiviti also to strong talent XX%, continued solutions revenues post XX% and very respectively. by results,

$XX global Protiviti basis million. success first revenues basis. to would last quarter first $X.XX billion Our from in be entire Net operations and the an the quarter in talent quarter the $XX and on the total of including without increasing XX% cash outlay a XX% XX% income our share quarter distributed up a per services not for our shareholders compared flow from reported year continued professionals. corporate solutions, up dividend of first record one commitment XXXX, on in share workforce, $X.XX possible million. first during $X.XX, Company-wide quarter of to March, a cash adjusted of was the dedicated we In ago. per year's $X.XXX was were Cash

dividend has inception XXXX. annually grown in dividend in The higher XX share per XX.X% than Our since March XX.X% XXXX. was

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

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

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

Mike Buckley

hello, and everyone. Keith, Thank you,

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

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

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

to were quarter revenues pay of positively applicable Turning to margin. by year revenues gross to or XX.X% revenues were contract the same contract XX% ago. of as year Gross which bill the revenues in of gross one X% quarter applicable quarter ago. first spreads now to the margins talent compared hire, higher one impacted In expanding and conversion solutions, first margin in compared in was revenues quarter of X.X%

of talent quarter year ago the When an ago. consolidated were Our solutions X.X contract with of talent solutions gross increase combined in the overall margin, revenues compared XX.X% solutions percentage margin talent in talent revenues XX.X% the consolidated points first to year versus permanent one same placement quarter. gross solutions of was quarter revenues XX.X%, first

to to ratio. Enterprise for talent XXXX. mix costs compensation resource in related quarter was versus the XX.X% costs year year deferred XX.X% quarter Protiviti, one margin of XX.X% impacted permanent a in XX.X% enterprise quarter same period ago. of Protiviti global and higher headcount Protiviti the impacts, one adjusted in staff one classification expansion had quarter The to points SG&A compared solutions classification of XX.X% were significant SG&A quarter's effect administrative of revenues placement ago. including margin one impacts, current compensation-related XX.X% year margin solutions were was just quarter. were the XX.X% Talent the ago. first higher revenues talent ended solutions general percentage to the revenues related gross quarter ago of XX.X% costs the XX.X% during compensation of XX.X% ended SG&A the adding quarter revenues for compared just Adjusted costs Gross For the the revenues first this by classification of quarter were Protiviti one for of compared in quarter impacts, compared for year XX.X% for ago. for SG&A Adjusted X.X first selling, compared deferred the ago. versus year one to Adjusted costs, gross was XX.X% for ended to deferred just the year in

million. to First for in quarter million income quarter combined was deferred for the SG&A revenues compared year for XX.X% Combined ago XX.X%. income Adjusted $XXX were Protiviti first Operating of $XXX in was margin costs Protiviti revenues related XX.X% the impacts, compensation quarter. segment classification was the of period. segment

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

one Our as XX XX%, first the ago. the quarter, rate same and was sales $X.XXX of DSO, days were end was outstanding, receivable billion was or first the days. accounts At year quarter tax implied it

the to XX% so move for adjusted quarter on with April full weeks far compared same let's revenues quarter. the in talent revenues versus we were to guidance, period up of increase currency XXXX. the for March in increase revenue March Revenue the were monthly all solutions and of April, the first up in one prior full versus up a trends XX% second XX% days. we for Contract billing the quarter review to placement to first the Permanent saw first exited year some a three of and XX% Before compares quarter March XX% quarter. the compared ago. year This for

placement permanent We of margin XXX%, first into XXXX in brief assumptions EPS same XX% $X.XX $X.XX to too midpoint impacts, quarter. strong rates in period XXX% very to comparative four in XX% compensation provide QX the of X% and We talent into the XX%; to on are to revenues solutions, the $X.XXX percentages, talent, same revenues, is insight XX% remind you that of revenues, the revenues time the than the the a to offer as-adjusted April major against trends on year-over-year overall, periods. Note experienced growth to XX%. percent XX% underlying the up of permanent compared income second But XXXX excluding these information Protiviti, XX%; estimates and for following up are guidance: of of of we revenues of the the to Protiviti, three are solutions, were basis, placement April, Midpoint weeks XX%. and these XXXX XXXX. We and that SG& in in XX% growth follows: Gross percentage period on up the had full revenue $X.XXX XXXX. financial XX% deferred the that billion year-over-year growth first XX% XX%; period XXXX this XX% XX%; extraordinary XX with you classification higher XX% that EPS so in XX%. For rates weeks to achieving $X.XXX billion as With higher much $X.XX. overall, basis. and Protiviti, XX%; quarter have into XX% first than month during XX% to share, overall, to The XX%; to quarter contract you year, to up saw XX% prior in talent growth very respectively. an as Midpoint some mind, know, caution per reading April. that. billion; we

to segment XX%; XX% solutions, income, Protiviti, to talent XX% XX%. overall, XX% For XX%; to

to shares million rate, to $XXX Our tax outstanding $XXX million. XX% XX%;

computing guidance filings. estimates capitalized in capital our press are SEC quarter our Second subject the mentioned costs on this and $XX call to million. risks We to and All $XX cloud release limit to quarter. provide one million expenditures in today's we

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

Keith Waddell

that the increased Thank to recovery region services. wider significantly the talent across and be hybrid strengths work and models ever an willing from demand the you, pools a and geographic and capitalize of from clients remote labor and More to increasingly price talent. our evolve opportunity how are candidates to jobs Mike. also This as engagements. for recruit remote benefit Future available access our points locally. continues before, structural wider Job than their and from lower of swift deeper plays markets global gain work companies source to derived environment broader selection to shift work on acceptance may has experiences presents unparalleled outside out-of-market in

network, claims us our Global Additionally, hiring or of as filled. owners no applicants struggle recently had the turnover. trying is Federation the as to open college recruit to had a and jobs could amid to of rate unemployment or be positions this few Businesses, as In low those technologies NFIB, hire small professionals clients the markets AI-driven for Independent of and X% at is elevated all continue navigate remain low labor the in particularly unprecedented XX% levels very change the job for and talent and for businesses. record globe to with where grow our of The well rates seen XX% rate brand, reshuffle those quits candidate successfully office and that small business employee not database, initial to a advanced that levels openings global job U.S., robust. across the thrive great and necessary qualified allow unemployment openings degree National companies reported

talent than environment, As hard-to-find coupled ability in the a continue results see successfully at to our we for solutions clients, to very pace our secure faster experienced a result demand recovering strong unique our past. we've of with candidates this

recovers XX% with the and solutions double-digit placement permanent XXX% Our numbers included achieved strongest and XX%, wind sequential regulatory growth talent and solutions achieved solutions four years. growth talent by were similar large during cumulative again for contract blended and and blended dot-com solutions and audit very of segments, was revenue solutions Protiviti gains, XX% Protiviti, and contract pandemic seven financial the in down and which reported trough, it The XX% respectively, XX%, last the impacted quarters, reported of the crisis have since the risk compliance during technology the Internal with consulting of has remediation each quarter. project and for a growth. respectively. the

While second start will wind also of anticipated as the very completes already quarter resource replacement the impacted additional on new first been and strong have the requirements. that in secured, projects took a basis. was and projects down to staggered Protiviti's continues pipeline during support be quarter place the largely aggressive hiring the be

talent reported by by year-over-year solutions. of to public and a million, First which total balance was $XX the of quarter sector grew reported million Protiviti exceeded $XX expectations, revenues XX%

as work programs we've revenues work to credentials and quarter, and at new needs that talent the institutions in levels As managed leverages directly stimulus talent, client with moderated this services and provide are we Educational deep relationships contract government experiencing to solutions from began the expected, and dictate. their was new consulting related realize developed shortage entities all to their for structures, opportunities base. creating us organizational across

revenues aid be section quarterly quarter to included on million. for flat comparisons, full $XX XX% website continue public Investor expect year for the public revenues sector We table to a showing be in up least we to with second the sector at XXXX. XXXX year. To to year our prior Supplemental we've expect revenues Financial sector public to Center million XXXX And the Information of our $XXX

with and technology, For time-tested to draw meaningful optimistic to and model. work and people our year steadfastly confidently our brands we're very Protiviti, purpose our matter our provide expertise as need focused deep to business talent corporate strength both ahead and and talent exciting We solutions the about clients on the and compete our remain we subject they from connect people, grow.

be We XX for few Company named a to proud Admired consecutive are only years. a of by as companies Fortune one recently select Most

the of addition In This possible of Sustainable Forbes the annual XXX Employers would employees America's to be list across the without making dedication not recognition for Companies globe. Most of and Best efforts Barron's our list Diversity. and exemplary

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

Operator

from first Your Steinerman Instructions] will [Operator Andrew JPMorgan. question come with

Andrew Steinerman

how see XX-plus year revenue would going question this Keith, think is going that I Obviously, long percent I'm Protiviti? think be about the were also ask -- this have you year for Protiviti Protiviti. you, it public that do how growth this quarter years. specific meaning second to you will surely you to at very I okay. Is sector XX% hope that do could growth? be And within achieved the you sustain emphasized a double-digit double-digit, for is for about calling midpoint. you

Keith Waddell

right. Well,

started quarter we year the projecting that talked XXXX would digits for grow we XX% expect we're the about that to second short-term challenges up XX%, some for fact for of up with we the the Protiviti Andrew, double mid-double full So up digits. on even would

market were So, good Protiviti large if going redeployed that which got client just of already engagement has happen The decided It's a timing. there's we're news in-house, on because better we of it's matter happen, than one bullish to quickly to the to we've a that expected. more people. requirements is in take not ended this the many essentially to that

view you of notwithstanding some about Protiviti sector, enterprise work, public we has that, as when take alone the when an quite headwinds -- put sector that level you bullish. we're talked So of public notwithstanding with

feel time even for we in public fact, we think, the growth. best we sector, In revenue Protiviti a about on you its long prospects. But focus felt the if get double-digit can just still year, we

Operator

Your next from Baird. with question come will Marcon Mark

Your line is open.

Mark Marcon

jour, be slowing. out the topic some potential for which with Keith the to would and basically One regards questions. couple de obviously, there's is, Mike, there of cyclical concerns

business to of slowing book of your would those from any there you belie any signs chatter far All are some anywhere along suggest lines? or your of thus results signs your seem any seeing that within of Are clients that. that

Keith Waddell

answer, globally we not demand environment slowing. remains The simple but strong, very, is the as not Mark, well. The of have very only signs U.S., seen no, in

And so as we ago, as sit here optimistic today XX in just even we fact, days maybe were more.

Mark Marcon

That's terms in technology. follow-up great. and tools And the you've a investments lot of made then is of

coming the the if be and in about side opportunity to a this as the the work how but that you've margin continue well what systems your the side be bit wondering efficiency to struck talent AI process and seeing You of to share. and you're by discuss as of improve more on done you've little work improvement actually that could and on that's to efficiency done taking margins can't gain on to terms helped through. efficient, take virtual all both make and the reach perm the you that you're advantage I'm your like

Keith Waddell

have adding And by we dimension month. excited dimensions job contract now did we're well the basis with AI how up in they to their they how for as firms are vetted Does indicate in we ladder basis. they've AI a proven we candidate on to us firm, that already them vetting it? Have nature make some placed how placed our as We're given at next exciting likelihood activities So, our a candidates. candidate a in about well seen the to from to client's to active are how our them candidate previous evaluating our all requirements elite respond I'm very compare investments the We're standpoint leverage contract how likely a about in to apply We is engagement, of meaningful of how from a resume given they to with benefit database technology. to a we on of they the profile determine AI compare prediction to on bunch getting that use a of candidates. other been on what's based We've request We're before? jobs another improving them working to have those. engagements respond. looking to proven standpoint made also our before? a the And ecosystem that the from market. very activities far that. in of We again, adding to view how of our a candidate's make by contract based

So a dimension to profile-based we AI. have our

We have we And better an from candidates even you this to candidate to job are apply our which market, side proven reach interaction are to to active candidate getting our matching with proactively enables very have everything. whether dimensioned AI. an get every very where have we Further, respond is every in use you us program our successful. been effective you'll we to we a, this how that our the in and three labor in tight to those I'm how those when recruiters, our market you're which technology apply order, important app time make marketing placements market. highest to recommendations and out we our all our today's in market, requirements to app. We've happy AI our placement to And of rate apply report jobs. that mobile of database, outreach, we via the trying match our in are them ask them to mobile source any the have that embedded in predict

where most lease That's very when our out people because of productive average, more had. letting and is We've They're that decide because well completely very people of of out been us. considered, we've turnover worked with flexible them. that's got are with worked well they've the we've them all pleased they very work. very that. ever That's the and for from So Part they're our Part on been. experienced. ever that

together effective many are our make to all people which sharing I anything. be money. So That's key managing them all candidate I productive our comes our making dimensions as which, broadly equation, and the They're I We're know make and whether a of us continue of for reasons, with the don't side across as missed just more more the said, we speak. long-winded many of success more productive. portion employees, to answer.

Mark Marcon

talked, about No. that. The mentioned time had you you you last we somebody wish asked

like pretty how do Or to it's up. how had you're raising bring and mean, that with the to long done -- further effective improvements in is that being optimization? much the is journey terms I have you you're it in of margins productivity up. going I But of very So seems and the those go? terms not clear It

Keith Waddell

rates upside. of Well, all, adoption has, already has first I well, of what just -- we the

and it's You about, improvements talked put so on I best. at top of further that that the mid-innings just that's upside,

Operator

will Bank Your come with Heather next Balsky America. from of question

Heather Balsky

was and you the and take talk Protiviti about the could I margin give the some headcount. commentary quarter during margins, regarding EBIT hoping the was There there.

Just was there? mentioned the also, And margins the that that customer. if curious quarter? large wondering, I earlier was what's to during lost you headwind you on a going one had

Keith Waddell

Okay.

did And digits high promotion-wise. annual headcount, to quarter. and single in was so aggressively also do the just salary-wise, it reviews, They we their add

those on was our do go embedded direct the exceeded That guidance that one guidance. are people new to And were and was than plan. we get our and costs had to more totally cost. different was audit so, there because every those significantly of Both What utilized, in that, hand, front-ended year. work. are our And contractors effectively internal planned

On no I down. But there people, regulatory But biggest internal we the that get. on was other our costs were savings. didn't streams But ones they wind winding below take wound There's the the in-house, accelerated The client it. for because cost decided revenues. to work down. remediation large were down work confident which hand, were other slowly. lose we'll the function this plan we're client, the sector, the mean full-time

together, at internal plan. the revenue revenues put revenue regulatory came you with when will above compliance audit the So out below

manage got that costs and compliance quarter you've cost compression. the this or resulted internal plan, one a headwind in we above is think as take news audit margin But just that risk is, of end said consulting I some challenge, earlier, at have to of contractors these your the you're replace. because large sometimes going got said, plan, can that time around. you again, It's I your -- as then we largely you've have However, already that projects to good been that two nature business any The replaced. that

will So several a sequential we impacted, much is trend the in about. as improve. are large impacted. on the look up margins good about the fact, just basis, feel notwithstanding talked the on the first margins if And not quarter by for for on way, project margins you I that. the which a X%, were And for Protiviti's that basis, And But revenues be X%, years the second back quarter pretty but sequential will much.

that's good. So

Heather Balsky

That's really helpful. One follow-up on the hiring piece.

grow recruiter guess, are from what's I the your rest curious do base. -- you recent continue you And just it feel how curious, hiring, here, going especially on you I about how for the given there. expect -- to the of year? Just Or you about feel to guess,

Keith Waddell

assume say talking talent solutions you when than we're say I'll base, recruiter I Protiviti. rather about now

Heather Balsky

correct. Yes,

Sorry that. about

Keith Waddell

still low we've very kind but actively the permanent growth, the been adding top on double of line so talent low to And less digits placement double digits. solutions than side, headcount,

talent the growth as rates solutions, Cumulatively, placement. haven't the more robust we've capacity. permanent On contract had as been

Demand we've recruiters, the as for we're sourcing in but strong. as more We've very and but placement experienced well. as got been getting It's explained to I environment side talent. we contract job to We're hasn't order do obvious reasons, continue earlier, hiring permanent technology. talent rapid, flow adding all aggressively the very add our remains the to bullish. got heads talent. about And So heads plan the on

that full-time larger We the prior professionals have talked we access on about had to these And people, that as gives a never also engagements a this remote to that offered that to already continuity and the contractor full-time i.e., happen provide pool. we done basis replace. a challenges engage doesn't we've when candidates have bench access clients. model, requires assignments full-time Protiviti's across employed. applying the out that full-time engagement And allows us calls, one very of broadens the they on that contractors effectively we've for we've which jobs clients leave of to will, to successfully. pool also taking have it on so engagement us with Half. us our put professional get fully and our them to if in is contracts it to is access then Well, we because Robert It's market to you and It talent

Operator

Credit from come will question next Kevin Your with McVeigh Suisse.

Kevin McVeigh

the I Or when any know a pretty just make about of Protiviti on-boarded. so there Protiviti a clear between contract? utilization can You've And of that way get flexibility but mismatch to that, been a are typically you QX think timing on coming don't know we is delivery. is I that bit maybe in little what and I is people terms the of is? the always of in of this. delta utilization just margins increased timing give sense that because capacity in there's want to sure. the Like QX, in anticipation demand that's

Keith Waddell

there so be of some will Well, both.

to group in the with enormous heads we And so in later first of the clearly, the quarter, have summer. addition in interns come a that

completely in hiring Protiviti So haven't we either. stopped

great ago, eight the a QX. in top large contract that to impact. some it And been the chargeable five was year to of way, impact that the there's line And in large been so talked QX of shouldn't higher. addition, frame But as or this just in client. has growth be by an as QX utilized. that there's the as get they If kind versus impact also large client would in we margin have flat And would have dilution points about,

meaningful. it's So

Kevin McVeigh

what client pretty I went sure. to as it shifted Any seems funding or it For drove they Any abruptly. like decision? that seems mean mean, Was I -- like the it thoughts you. just... literally on XXX

Keith Waddell

thing. no. it's to as for accelerated compliance It's But your still going work to consulting Clearly, that was It a a reasons four or portfolio in the said been years. less condition project project. it remediate, and wind we're in-house project quite business that's standing than decision of recent the there's client. the it. that just rather three was no, so outsource we're their remediation part streams we're financial not on gets co-source with bring savings work function good the are Also, And client better -- project. It's they decided earlier, proposing you on various optimistic. remediation But down or as No, still the it's on, a in been do. latter there And very changes. the that part for and I of it

your ordinary sometimes, large at a to that's were of deal going end happen better as projects to environment. with. to I But it and replace business, couldn't always if had said, time that's have And given course something And underlying the demand they happen, them. you it

Operator

Instructions] [Operator

Keith Waddell

me preempt so sector that typically me that. been one say just And hasn't but public let thing yet asked about asked, that we're let

our expectations. XX% did grew Public enterprise sector on And an QX so exceed basis.

only was sequentially, where XX%. is below which year, up QX Our last it X% guide quarter is a

wins. many is contract QX standpoint, We year. public businesses toughest comp So usual from had of a the the sector as

dealing of that and As it's wheelhouse, script, commercial given institutions clients with state in tackling and requirements to for has you've educational governments blocking and said in great rise same right that are a we which our local the got us. our are, lot reshuffle

build the done from matter XX on public pipeline We because all vast which accounting And enterprise in that contractors rates the of point as toward work Putting talked lot that keep to together project continue solutions. solutions. quarter, doing becoming better view than look talent talked last look if win IT if The credit, look the contract good. if housing entity we've reports so the sector we of is we enterprise-wide days majority of all sourcing specific at expected and profile, an we're tends does more at pipeline even modernization, management. you no talent focus at also, with are the that -- is and to risk requirements, ago. in work about because past you project the The about by talent you The frankly, the builds, a solution-centric from it. mind, assistance,

degree, arbitrariness the some two. some to between there's So

at even it how And very relationships. pleased another new leveraged that so dimension there's we've these we're better. makes And

$XX the rolled on, on side, them million sector not solutions, redeployed during where solutions immediately people engagements. talent in we quarter, contract them when talent commercial public so put the revenues had those we almost And on assignments, off

we from on did only not talent of a also looking even enterprise if we have so better. an we at that you sector, had solutions view, we public for wouldn't just that public better but that And credit had, candidates placed sector point it's do

or last So be same where grow. playing net-net, up would with to talked up, thought pleased more we how we for is long-winded, We out. we're time, ever. public full extremely sector even would convicted we the year that We're than

question that to my was So myself.

Operator

next question Tobey from your will come And Truist from Sommer Securities.

Your open. line is

Tobey Sommer

you Are see do strong, to coming just wage rate rates? digit. at growth, and strong pretty get was comments It close Where that I do be to you to was How in going evolving on a see that then the peak going? inflation. we high single quarters? hoping bill your

Keith Waddell

Well, long country There openings million of standards. XX.X don't versus I this year-on-year historical mean, high period X% know. are lasts? and in X% and unemployed X% is an job say, up to as Usually, extended than of people. that time. for half being over it fewer up it's you I How

has the to X.X% very growth. margin the labor to from what which contract economy that X% To I down market during impacts about it, We talked quarter. I extent the slow can't would higher So, remains to. that say expansion come from conversion went tight. our more rates rising speak

higher expansion more full-time engagement from margin get these where we a professionals from than came core adding get contractor margin base. Our we our

is So, top put We're X%, not we're getting on are get being more and wages the full-time pay spread there harder margin on engagement that that. to X% wrong. we than Don't pay spreads, are are but up We're about or wages it's expansion because conversions diluted. bill margin bill if me when up of margin expanding slightly X% putting than more the big on professionals. X%, expansion and margin

Tobey Sommer

that. appreciate I

of substantial exposure. still kind still get see a if could questions wanted your the softening you about you're European As on my war, countries. It's follow-up, the comment any a player I impact We in but on -- representation, it's to several there? small

Keith Waddell

Yes.

So And the very had Continental and good. would Germany, of first best in impact Europe X%; their arguably X%; Belgium, quarter. countries of hasn't potentially, fact, it's outlook certainly probably any say, is would France, XX%. And is U.S., quarter Germany we're our been Germany, the had XX%, XX% a impacted. QX quarter, good XX% international. that to-date, of most for I be another one. X%, at non-U.S. in the an least But there

Operator

next Capital Jeff with question will BMO Markets. Your Silber come from

Your open. line is

Jeff Silber

technology forward? it's that looking solutions, sustainable accelerated to late, prior the just revenues talk In quarter. that talent compared I'll know and within Can is your one. drove you growth what year-over-year at I ask how going about

Keith Waddell

better say I'd about Well, execution. it's

the pretty king. other I the go think quarters. candidate-based went two as I is XX% also earlier, similar We've optimistic talked have and to we're And from talent Again, to a results, lot we we've extend focus technology. candidate time. been of good that The it solutions forward. some for about initiatives, initiatives were XX%. had in technology a the comps But focused

Keith Waddell

Okay. Well, I that is question. last believe our

everyone much. the very call you appreciate we So, Thank joining today.

Operator

This concludes today's teleconference.

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

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

may You now disconnect.

Robert Half International (RHI) 26 Apr 222022 Q1 Earnings call transcript