Earnings call transcript Q1 2023

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Operator

Hello, and welcome to the Robert Half First Quarter 2023 Conference Call. Today's conference call is being recorded. [Operator Instructions].

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

M. Keith Waddell

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

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

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

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

related company's and businesses from intersegment for of how the with internally. to the with of presentation and amount intersegment provided Protiviti disclosed. consulting and The we includes revenues services growth Our specializations also measure is contract of these revenues This manage operations. our blended separately solutions rates is talent connection functional in combined revenues each Protiviti

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

macro and environment expectations. the benefit First well uncertain global performed against its with results labor of quarter well-positioned navigate our landscape and the were way We growth. largely client are to ability markets. optimistic Talent solutions about a caution Protiviti with year-over-year hiring the led tight in-line macroeconomic remain as XXnd to of revenue consecutive improves. very quarter backdrop

per share and $X.XXX reported the of X% first year was quarter in ago. to down share first last from compared X% income adjusted We $XX distributed an $X.XX quarter first quarter operations for XXXX, For as of $X.XX million. basis million record total on $XX Cash of a quarter per from March. Net billion the basis. on the our a quarter shareholders outlay $X.XX to revenues in was year's in company-wide flow were cash the a down one first cash during dividend

Our was growth since XXXX. dividend per its XX.X% in inception share annually

in dividend was XX.X% The higher than March XXXX. XXXX

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

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

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

Michael C. Buckley

you, Thank and Keith, hello everyone.

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

United outside the We solutions XX including XX States. locations have XXX talent countries locations of in worldwide,

compared billing In ago. days quarter, the days billing there first the one year XX.X in to XX.X were same quarter

The XXXX has days compared during XX.X second to XX.X of of second quarter XXXX. the days quarter billing billing

$X Currency solutions, talent total percentage for $XX quarter million for talent year-over-year X.X overall X.X of points for rate by movements revenue and revenues the exchange X.X had percentage and effect during This $XX percentage points, million, our the year-over-year solutions Protiviti. decreasing rate points for impacted million by negatively Protiviti. first growth reported

The for by quarter X.X%. fourth and bill quarter ago, solutions functional mix changes country. specialization, compared in talent currency to rate year revenues X.X% adjusted the Contract for rates one for the the increased of was

X%. On the adjusted $XXX the Protivity operations that outside while from look a an for XX of million take million let's quarter ago global business XX period, serve quarter within revenues revenues X% Global as U.S. independently were with is in network of number from its year non-U.S. up a basis, versus countries. in and were Protiviti down owned locations $XXX first a closer States. United up million, $XX X% were clients the Protiviti Protiviti United first Now, Protiviti. the firms revenues through of results at States revenues in is

gross XX% quarter now first revenues quarter of the quarter applicable to solutions, year one was margin. ago. quarter in revenues X% contract of margin In applicable ago. revenues to of compared revenues X.X% of gross year hire the to XX.X% one first in talent Turning contract or revenues in Conversion to the were compared

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

of revenues ended Protiviti XX.X% one compensation For for Protiviti ago. year Protiviti, just ago. deferred Adjusted to impacts, XX.X% to one gross margin classification year compared XX.X% revenues margin was related for quarter of compared was gross the XX.X% Protiviti for

XX.X% of to SG&A selling compared in to the year one for ago. or global compared same were XX.X% Adjusted first in related enterprise compensation one costs ago. Enterprise impact quarter revenues the XX.X% classification and the for ended the XX.X% general just SG&A year in deferred quarter costs quarter were administrative quarter

first period placement SG&A compensation quarter the the Talent of adjusted increase for decreasing the in in mix primarily SG&A ago had impacts, of costs. revenues SG&A to X.X XX.X% XX.X% versus as was deferred classification effect solutions solutions compared cost The points. ended one related percentage staff talent percent year of driven the internal year revenues SG&A permanent one The quarter's solutions’ a quarter just of revenue were by in talent ratio talent for current by this of costs in XX% the XXXX. lower first were versus the compensation ago. quarter quarter XX.X% solutions Adjusted

to period for as in SG&A cost levels. XX.X% of quarter normal First pre-pandemic ago revenues of to Protiviti expenditures Protiviti revenues compared were the operating year returned XX.X% more percent

in the related Combined the $XXX million was segment was $XXX Operating segment combined quarter quarter. for first deferred was Adjusted compensation margin million. impacts, income for X.X%. classification income

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

up tax the from quarter one to or price. deductions lower to well XX% end At and due The for first higher company's credits of XX% XX.X ago. tax rate the implied the quarter, same as lower was rate $X.XXX stock dollars stock were outstanding attributed primarily year billion tax compensation Our the receivable days. be quarter day as XXXX can first sales accounts for DSO was

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

full with of solutions quarter X% versus the Contract the for the March an revenues quarter. two first weeks decrease to full down year prior first April XX% XX% for This down same exited the Permanent the Revenues compared decrease to period talent X% for of compares were March were year March one revenues compared ago. versus to placement down XXXX. the quarter. in XX%

first in three the For XX% revenues XXXX. weeks down to of same placement permanent period were compared the April,

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

Income share an than as financial the second X% XXXX the major following are estimates the billion. midpoint offer quarter of period basis. on to $X.XX, $X.XXX $X.XXX assumptions billion of dollars as guidance. same in billion $X.XX lower follows. we adjusted mind, in revenues that per Revenues these The to underlying $X.XXX With are midpoint

Protivity down X% adjusted Revenue up to to a SG&A growth XX% basis, XX% X%. year-over-year down talent, on down XX% XX%. to as as up X% classification down overall revenues Overall, percentage excluding compensation solutions contract margin to percentage to XX%. of an talent for XX%, deferred to XX% Protivity XX% impacts. XX%. Gross

XX%. to XX% XX%. XX% overall to XX% Protiviti, XX% solutions, Talent to

income, segment talent X% solutions, to XX%. X% overall, XX%, XX% to Protivity For X% to

For to shares $XXX outstanding million. the tax rate, XX% $XXX to million XX%,

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

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

M. Keith Waddell

pace Global their lengthens their hiring time sales you, decision continue impacts added our Thank steps hire have labor a tight and at Mike. and are and selective more cycle. clients which processes, to many markets to frames measured remain albeit more

had had off job historical Independent Businesses of levels small applicants peaks, above shortages remain job while The rate openings reported and recently trying hiring of and National or their business openings modestly Talent quit filled. United XX% hire few at that to qualified the no and owners well cannot States, all continue, X.X% owners Federation unemployment stands year rates FIB the be business an low. in of XX% XX a are small that

and solutions. risk another solid Protiviti an strong by have growth continues pipeline well of compliance technology as very revenue regulatory quarter consulting. as to diverse increasingly Protivity practice the offering of a led across achieved

in need our to judgment clients invest specialized We professionals. the the we our expertise artificial top talent technologies skills, by of the recruiting and intelligence proven of power continue based our combining for to tools with secure

The both following It to us higher apart sets is time in in most our powerful unique weathered COVID-XX the fastest We've company's marketplace. emerging and each peaks. our recovery history cycles includes many of that achieve past combination the downturn. in the recent the economic

work tested to to committed from to connect to We resiliency need they purpose Protiviti's greater and confidently grow. remain stemming and clients expertise exciting from people diversified talent the to compete and provide with and also benefit its meaningful We solutions time offerings. our corporate consulting

possible we For were a from across awards employees the to Employer consecutive in number for a yesterday. first Work Companies the as The just Diversity proud Our the Inaugural are Admired Innovative the globe XXX three Most Best of America's Companies. the year, XXth accolades have recognized earned prestigious Forbes also to Best Fortune, We Most quarter by and Companies, made

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

Operator

Thank Instructions]. you. [Operator

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

Andrew Steinerman

Hi, Keith.

to that back second consider the My it's economy higher question you the same X%. the be you on about growth would quarter at Protiviti, we saw quarter just as to what's revenues when guide So at X% growth X% holding up here? is Protiviti Protiviti's first weighing

M. Keith Waddell

Protiviti Well, first growing. say still all, is of I'd

normal frankly, a had had quarter normal seasonal than quarter. seasonal better a quarter, we somewhat it First expected

were they quarter expectation first the a because the expectation is part little second trend. in the the the little below for quarter, in second a light quarter, For

first projects. X% some technology Protiviti's XX% FSI a impact demand audit its consulting, was there. delaying so was say a then below more are They're also is compliance, clearly are little about they banks to for I'd is of trend, clients and extremely If a XX% regulatory very expectation above regional little There to regional second going information but small banks and quarter growing, well. trend. regional constrained or across the So, total, quarter internal a with was translated yet still of there to constrained only most is little XX% talent well, about of risk if look bit areas, slower you whereas expectation going anything, they're solution a revenues X% Protiviti relate but was sign contracts. from FSI softness Protiviti's banks, practice impacted

very replace quite be there rates. they which that project And a larger should impacted immediately is with abruptly almost good size, their even that project further a good was Europe, of The an QX. downsized in news that for large

said, impacts stronger. guidance from than grows year-on-year and and sequentially in was guidance. Internal even QX bit a still client’s the and conservative more in with Protiviti that growth consulting, That some is is audit I QX technology an that slowness/delays. expectation be compliance regulatory it both think seeing there's So,

good end fact the feel about So where about environment. notwithstanding it growing hopefully, up overall, we being conservative. the that is, we guidance will And more feel Protiviti's good QX it's pipeline,

Andrew Steinerman

Thank That sounds good. you.

Operator

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

Mark Marcon

on about just for, a materially can if and some bench not and bit margins worse year. bit Keith that afternoon, should little a during mentioned. QX how Protivity Protivity you had But the the for little just good as think downturn, thinking did I gets that long if investment of client grew guidance How of QX the margin. in recognize worse slightly you changed quarter, to a about decremental to more if the and Hey, about COVID with was talk last think Revenue Mike. the sequentially margins the about you regards was margin But fully profile. which you've all as us to Wondering what basis, from potentially wondering, the just get gross continue should extent second expected, European that impacts than forward it the to term. but given just go economy we up things because ended we for I'm strength declining you operating relative margin

M. Keith Waddell

Okay.

some let's typical are their on surveys they've crowded given So audits with working Seasonally time period because separate some that. audit always January degree margins always Seasonally, QX clients external of and recover margin to because it to are impacts. some raises degree compressed out lower external seasonal revenues internal are Xst, takes annual actually auditors. they're compliance and to their

always So some seasonal sequential basis. the compression on is case a

normal It was audit because that their utilization that and this the their running time little levels pressures aggressive staff than also of being at with attrition softer about forecast revenues is a utilization. had internal a utilization larger bit impact, staff of a and one-half further

down operating in turn which So or the two income. margin, together impacted fell segment gross to

quite expect points contractor do to we basis. be of will lower and basis XXX expect will because for adjust get was was on a employee points on forward, they improvement they'll they year. rate it plus sequential second the utilization a rest the experienced won't in the XXX in help be And quarter it first better mix to it hires from it will the year adjust of but the over the hiring their progress continue basis what those, just They for utilization Looking quarter utilization/profitability attrition. ago, make will what of still

environment as economic would little to And that the regulatory forward. good there rather regulation anything, that less banking more sensitivity, move than news to the you is current we As no be and tell risk compliance if economic will has sensitivity.

continue audit to -- source some their discretion have is internal to the even still audit respect Protiviti. firms data it than internal audit, to would the pace. own be co the Technology So, even including ability a clients to will internal future will impacted consulting, the analytics, that that. of growth at the like will use argue I for But brighter internal by slower grow, still expectation be still cyber future will with be just that staff rather is to bright,

growth the It's start had to very velocity we growth. we've good. year-on-year we're rather pleased said, But their that than again, just decide, As clients has Protiviti a with pipeline take revenue it's and of years longer is uninterrupted pipeline that about very take net-net, now longer six slowed So very future, we're almost to growth negative the of bit projects. as optimistic slowing creating

Mark Marcon

of And One, talk then that a are opportunity That's the done dynamics great. some in that And can and two language you sort do to regards provide? on market. E&Y and a what perspective little you've location take what bit in extent then To practice have AI that a from occurring already what your at out to within Protivity. build dislocations the opportunities consulting of does AI you are about implications modules. large with an just Generative occurring these

M. Keith Waddell

Okay.

deal Generative have called press. for of in a you been past AI, what the with numerous Accounting on So jobs the lot times so read in out let's disruption. first

of careers, jobs jobs fact the that. Forum, the reduction today's Generative period what each We today's can During blockchain. new million due that be Street you which then XX AI, sheets. in be there And another can there World processing think the ones, net the press, lost payroll accounting, that in while story reinforces number might about Journal, accounting there read Wall in was press. to are to so manual we came notwithstanding million said to then software a the think in had XX will the was in our no And be, of about there was there case, RPA, software, spread Economic

days. And It's routine And about might while might they're automation our from others, very some for which upside streamline very often Generative AI persuasively, already it. optimistic and potential AI, very the confidently of companies task, kind early wrong. including while And you the referenced. that have services the of potential accounting we're virtually consulting accounting while right ChatGPT, all lessen automated Generative

be the ultimately to trustworthy, output to accurate, accounting, has subject audit. And in

And so on impact impact will that AI that Generative also accounting. the has

kind of with potential that's of downside the Generative dealing So AI.

be as involved you AI, of there use will prompt talked example On even and in clearly consumer But a as a routinely say, consulting say, friendly ChatGPT about the Protiviti that Generative I'd uses an upside, who that's prompt even how set there's heard skill opportunities clients you skills as some ago today with engineers about produces. pretty skill clearly year now.

has services they it consulting lot have happen didn't they going they financial services more would already they by talked end and that thought end even external compete been it Ernst since to it. been they strongest external where to to with necessarily consulting, before extensive happen, never of from but were been As to we don't they there in they weren't already that have they thought interest separation don't through, of had uncertainty was concerning partners going went audit practice had going practice to in it or pleased more and because up the Young, but then up because compete just this were up how while about if financial it have their we and freed

because So, hand Arthur there are went Protiviti audit that talent I not Anderson it Accenture you some first appears think the Consulting But opportunities as through to alums people separation. are many we know, going have Anderson it's that will they happen.

wasn't be from and do. knew So was there easy to the heavy to lifting done thing some they beginning that an there

Mark Marcon

Thank you. Perfect.

Operator

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

Jasper Bibb

give quarter? standpoint. of which or Tobey. of from curious, the positively for maybe talent I guidance bit was solutions finance accounting contract practice additional second on is IT, segments weaker group I’m This afternoon. more the you in Bibb just sub could on are trending for our a or Good color Hey. some Jasper hoping the

M. Keith Waddell

Well, going absolute engagement standpoint, from are strongest we a we what thing the full have contract and on deploy time professionals where we a then trend call full-time employ our basis. we

clients we've Our employment love sourced that the clients love continuity, the the from full-time them pool.

very have to that from quarter continues. in double guidance strong shortcut QX FTEP for first our digit We that growth and assumes we the very,

We management finance very higher solid the with there also the first side, accounting quarter growth. a resources skilled levels had positive on

quarter. into expect second that the We to continue

F&A level we challenged staff operational both that were into more in Our quarter continue positions expect to the would the or in and first during and more technology second.

on is talked function the we've administrative and would by As customer prior economic conditions support guidance calls, assume and most the that continues. our impacted also

So in the but a maybe pretty bit, second, the saw not to macro little much what the softened quarter softer because dramatically. has first little you translated a

Jasper Bibb

Thanks.

reducing something on to how areas so where you what of And seeing you staff be light side. might could internal manage demand aggressively in most intending Are internal levels investing capacity in you're today on there you're in comment the are you and where growth?

M. Keith Waddell

we've capacity, an the quarter, we continued quietly SG&A actions that We've $XX spend an on year, internal many performance to basis. that that on do said, in and times headcount background. relative related to to primarily performance talked of taken we've last That our reduced again, individual individual already about manage per As basis. second by million we headcount do quarter the

report that that first the quarter expectation There's of in just couple quarter. adhere the a of Our to to probably There's did the that the pennies bit taking we a quarter. would be, a approach. the about applicable that not benefit strategy would I we second reductions would third talked lag always continue into

also have we that tax offsets quarter higher that. much rate pretty the a second in That said,

the performance. the background past, So quietly to on capacity done very very done similar individually, based individual in management

to. it's the places As same just referred to investing, are we I where

hottest professionals Our full- resources things going. we the time got engagement are management

Jasper Bibb

questions. Got it. the taking Thanks for

Operator

with Your America. next Balsky question line from the Bank comes Heather of of

Heather Balsky

In Hi. business? staffing I'm your that tougher for as your at right how material Thanks sales you're touch a it's question. work revenue know, whether curious, into business pretty where from, when there that a may revenues I taking and is the potential trending look on to played between was for have consulting. you tech in hoping But those macro, know my that's environment that come was benefit And from sector now. segments you or growth? of side to a Thanks. I public the quarter, Protiviti's their the there agnostic the shift

M. Keith Waddell

to in were and bit we announced both a public a ironic. encouraged quarter. that had and longer several very behold, in happened talent shift Protiviti out wasn't and this And to in that end had other, bottomed both sequentially, of in sector. but the it's it one talent sector. there in going We Protiviti public the and we digit What's low solutions we that year first now the sequential quarter we last solutions last break big So appears growth a we've we and quarters sector no in sequential were public out growth in mid-single

Heather Balsky

That's really helpful. Thank you.

Operator

Your next question comes Tong of line from with Sachs. Goldman George the

George Tong

Hi, thanks. afternoon. Good

sales compared that you're cycle hiring can and Robert What the moderating out of are similarities some Half's playing and are is is differences client mentioned history? cycles in that how You other seeing? you compare cycles to elongating, this

M. Keith Waddell

a cycle stronger a Well, I'd hadn't is that's thing the the part of say early labor seen we're is would the the a and National certainly most you recession in were of And this cycle, so in be if – if less in for months. know, market we of every that continues part kind early than We next different the we proper. still debated of impacts. see XX% Association call recession as day that to XX revenue the in Economist Business

that. So we're forecast, full far impacts is many out we and seen recession so not certainly the on revenue base believe haven't going but jury to on their on

We we're and sooner saw the cautious is quarter. first is and get there. that impact, is more that well. out our the of there on companies always about contract And the business is what permanent contracts hiring extent see as that do basis that perm there's you hiring the some the double that happens for guess on an similar that impact year-on-year on placement seeing I than in to So a they shift

the Our guidance for second the quarter assumes same.

George Tong

are And it. about That's through there you being to past line can the helpful. quarter trends before reflect to based cost do you the takeout one the costs FTEs Where size on flow lag two margins. expect talked additional accurately revenue today? in your right Got trends and you and that cost to top seeing on how in or of trends, takeout and then journey taking many the heads out you're

M. Keith Waddell

so well. a quarter lag and Well, fall just of higher into But rate second pennies of because couple somewhat the quarter. as got the quarter there benefit by first as said, side, additional was otherwise of on we've not that recorded would a the in tax lag I second that offset that's

As top number have don't or targets to I tend but our we track we instead FTEs we to individual as and FTEs, overall calling performance to closely as headcounts manage manage line. goals to basis out it just on pretty an of By and headcounts, described. large,

headcounts follow are your a whatever assumptions maybe closely. top typically bit line our a with so relatively And of lag

George Tong

it. Got Thank you.

M. Keith Waddell

of And I for that million solutions also base quarter the of taken if on second to cost we've just of $XX a you talent compare last out year. million our $XXX said

George Tong

you. Thank helpful. Very

Operator

Manav comes Your the line Barclays. Patnaik question with from of next

Manav Patnaik

insights that were Thank there, And to just Do ground know, harder of was to have is maybe been I adding I outside small the wanted access you much it you zero regional you your there's you. since any Keith, and just know you impacts that. bank press get to the finding close if I wondering businesses, if loans. around, And seeing follow-up. Protiviti? there, base exposure customer know, to of, you pretty bank, I terms in know

some insights you'd hoping give just there. I'm So us

M. Keith Waddell

banking that of one talent regional been rather I pretty And other revenues, it's of I'd on as thing earlier less cumulative specifically months. many that being say Yes. material impacted regional talked have crisis, one the more the of top the I’d Protiviti, as just than banking so It's out say, insignificant. the not far to all. even at uncertainty many, X% there side, more just now about impacts about about. exposure clients worry uncertainties on me, for level solution

either say just So the macro uncertainty. of has but adds Protiviti impacted solutions, generally specifically it to talent I it wouldn't overall or level

Manav Patnaik

your that businesses specific quarter Okay. rest you're relative thinking last be And on to on? Protiviti, to I maybe some you the bit you to color trying that conservative, a maybe was the about just the gave more on know, to comments of guidance think but how

M. Keith Waddell

to say we by trend, our side. I'd the trends say is quarter talent solution relative the quarter to second relative I'd first look trend and years to at consistent, quarter, pretty last on several guidance

field last that surprise our case, the and a usually is quarter so optimistic over We did more people quarter we've trend, As to quarter. we that. the relative me. midpoint in and applied we last similar are above than were little But discounted doesn't this discounts what to

Manav Patnaik

much, very you Thank Keith. it. Got

Operator

Stephanie Jefferies. of Your afternoon. Hi. comes the with question Good line Moore from next

Stephanie Moore

afternoon. Thank good you. Hi,

your areas than where a know, markets the most or is like verticals seeing Could you strength? You in of what business talk business stronger it or looks maybe about you're U.S. what bit your the you're seeing international

M. Keith Waddell

many now well. quarters States more was is is on Germany very standout the continue many, Europe for to solution country, has projecting Germany. did Germany than to Sure. been the well. case solid The generally the which talent United do side.

Protivity one a replaced. Germany, Europe I a major that’s there across stronger generally quarter. UK in had particularly talked been speaking, board, the But side, good also little project was already about On that the

Stephanie Moore

bit bill rates. touch you. just to Great. wanted a I then Thank And on

little quarter, in you think in, than I seen what they so. we've or lower a You know, the came the for know, quarters bit last several

little incremental of bill kind to take rates should and Thanks what much. be how level ability about market bit the maybe as your so. so an ease to or about you at the could they on thinking do a So you're talk able dynamics those company spread

M. Keith Waddell

given we've growth accretive X% in see us that go currently bill a to to that And don't range. we say high This Xs, as we're X% conditions, a more Frankly, that X%. not to the come would through. pass X%, so margin from -- I X-ish that to I passed current be being much macro pretty trend. So wouldn't or wouldn't goes X%, been through. to let's X% much expect accretive the it declines, margin pretty the rates is X.X% than It's expect, surprise for that

Stephanie Moore

so Thanks Understood. Okay. much.

Operator

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

Kevin McVeigh

in Great. just to follow-up Keith, implied rate guidance you. the that? you QX What's Thank Hey, can percentage? bill the

M. Keith Waddell

what I'm the that embedded quarter in not But of sure we specific ago. kind I would line X-ish to impact much there's we’re less three number. from in first the trend along quarters a something we two argue be again, if little not a that than margin. that probably had or saw the

Core which professionals got are accretive time margin management mix a higher So actually also of And looked the we've skilled core, a in if also relative and accretive very full question to at prior very are for of well. strongest prior our one what's to pleased would these on things would and margins the margins range beautifully going that that's because margins did now, up resources, margins just well engagement have because and very are about are story margins doing held ended, And expected argue margin. about QX. the comparing I our it going But a for and you QX a in continue downturns, was our are quarter our good to which to to our story, differ part part we are strong first into back true about higher

Kevin McVeigh

can kind On the mix what's to that Protiviti fixed just of of net versus us point, today variable? remind you

M. Keith Waddell

versus the very contract time, the versus in worked their of Well, of projects. fixed by hours are the contractors That's much XX%-ish full by done range full they’re time. nature driven versus

of use income manage at their But utilization growing expect be more how effective their strong, to susceptible projected. are is higher slightly to our trying back also thing. smaller them therefore great of being to the XX% good for in manage double-digit number, down utilization would contractors, rate somewhat would part attrition lower a levels. it's quarter. audit utilization relative projects do them. they that a very XX% It public of number than XX% they to one segment good That's and to because looks profitability, they're to second a tries their their to sector in way to a expectations, in early had to be a Some internal still because but as We their come bring part Protiviti expect still

Kevin McVeigh

Thank Understood. you.

Operator

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

Jeffrey Silber

know I just ask much. so Thanks one. it's late. I'll

your from work interest been financial You potentially even talked a you crisis. what's positive just risk of services little your seeing more bank bit practice? a in do curious the about happening any Are regional because consulting some perspective in beyond what you of I'm

M. Keith Waddell

specific have relate Well, there we crisis. clients, never talk We do opportunities that but that new to about new opportunities. are

opportunity I Protiviti's going be easier, banks. think new a also particularly it's in banks that not and get to the not to will sized to for think start tougher If relates negative anything, regulatory and with. it it's was FSI the so exposure environment relatively as smaller I to that all limited regional

Jeffrey Silber

so Thanks much. All right. That's helpful.

M. Keith Waddell

last question. the were we that told was operator, So

very So thanks much. joining everyone Thank us you for today.

Operator

This concludes today's teleconference.

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

also log the company's to conference issued contained earlier the are You call in details can replay today. press release in

Robert Half International (RHI) 26 Apr 232023 Q1 Earnings call transcript