RHI - Earnings call 3 2023 | Robert Half International Inc.

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Operator

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

M. 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

most are the and and materially These statements. from that are XX-K described today's cause release could recent uncertainties press in they our filed However, SEC. risks actual XX-Q subject in forward-looking risks to uncertainties with results differ and and to the

on obligation call. We update assume no to the statements made today's

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

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

website, your top benefit margins lengthens services. rising both the skilled Gross to and strong remained We the client from For prepared today's the our from expectations. and revenues for are delivered job in exceeded uncertainty due that third macroeconomic our ongoing ongoing the results candidate discipline decision Solutions of Center above cycles. remarks Both available consensus for mix line and Protiviti Investor notwithstanding bottom call the Talent convenience, higher roberthalf.com. quarter, pricing of and

in ability climate to align the from remain to benefited weather our actions landscape costs confident growth and also as future in taken We current base prospects the improves. we've cost operating Our the with revenues. our macro both targeted

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

per has in its in XX.X% dividend was The XXXX higher XXXX dividend Our share than grown annually inception since September [ XXXX. XX.X% ].

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

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

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

Michael Buckley

Thank you, Keith, and hello, everyone.

As Talent the U.S. third Keith $XXX were on were an billion Talent On down Solutions XX% from the down Non-U.S. third prior year's Solutions Talent revenues XX% $X.XXX quarter. Third an noted, as were revenues revenues as-adjusted adjusted global were quarter basis, million, year-over-year million, in Solutions X% revenues $XXX quarter. year-over-year. basis. down

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

quarter billing specialization, In increased exchange billing the bill currency changes during of million billing year quarter the for third to adjusted ago. movements X XX.X quarter XXXX third compared same had year XX.X third country. rate were year-over-year for reported fourth during $X quarter total the by in effect Contract functional XX.X Currency days there XXXX. compared quarter and of Protiviti. Solutions the $XX the X.X% X mix for rates XX.X The fourth quarter, increasing the revenues of to for and compared million of $XX days Solutions by Talent has revenues million, billing days in Talent ago, the to days

quarter second the X%. for rate This was

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

gross or hire, the the Talent ago. third gross X.X% Solutions, now margin. -- third of were XX.X% ago. revenues revenues Compared in quarter the quarter X.X% in the Turning was revenues of XX.X% revenues to X year In X margin to versus contract Contract to third applicable of year in in quarter. quarter Conversion

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

Protiviti of gross year was Protiviti, ago. of For revenues. revenues Compared Protiviti margin to X XX.X% XX.X%

margin classification quarter to gross for Protiviti compensation for deferred compared year. for impacts, the last XX.X% ended Adjusted related just XX% was

XX.X% of the XXXX. the ratio in third Talent XX.X% ended X by year. revenues compared last versus Moving global quarter's revenues for compared Solutions for of were the ago. XX.X% costs percentage SG&A ago SG&A this The year. Solutions for XX.X% decreasing the compared quarter the lower XX.X% year classification on revenues to SG&A Enterprise X.X costs to permanent third X Solutions the in Adjusted quarter quarter compensation-related quarter of quarter Talent the just Adjusted in Talent placement ended deferred to related points. were compensation versus XX.X% XX.X% deferred of just were adjusted had for costs SG&A to impacts, SG&A in mix effect impact, quarter, third enterprise XX.X% of were classification SG&A. last costs the quarter year

Protiviti for was for in was Third $XXX last revenues income $XXX quarter classification for revenues quarter Operating X.X%. the related were impacts, third combined income segment segment of compared Combined deferred was XX% SG&A million, million margin to XX.X% cost year. Protiviti the of adjusted compensation quarter.

from quarter with million, segment $XX was Talent segment a Third in of income segment a million our margin of $XX income margin Segment divisions X.X%. was Solutions the XX.X%. quarter for Protiviti with third

Our same higher XX%, for nondeductible an was rate The can from and tax X tax up attributed credits. for from increased third XXXX impact quarter fewer the quarter expenses to XX% rate be year tax ago.

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

the sequential prior versus let's versus Revenues revenues compared year XX% and third in full revenues September the decline exited were Before of quarter fourth XX% for so we trends billing X XX% the for guidance, monthly Talent the compared far quarter. first the last some in On a move October quarter in over the same October, and Solutions of saw decrease the all we narrowed with to have weeks the a currency of to Permanent adjusted down for Contract XX revenue September days. quarter week-on-week the down were year. XX% to past placement September to weeks. rates basis, down XXXX. XX review period

compares decrease to quarter. XX% the a This for [ ] full

permanent on this trends fourth With same XXXX. are estimates income know, have Midpoint XXXX of growth of third the compared the underlying talent, follows: into billion; $X.XXX as-adjusted into an these productivity, For overall, offer year-over-year you placement brief revenue $X.XX X But so that revenues October. XX% or we to October, provide XX% the time information major XX% the same first to mind, following than weeks down guidance: caution The as to the $X.XXX period XX% revenues percentage XX%, Solutions, some as to billion insight are in were XX% per adjusted that to We lower XX%, to reading period to financial quarter assumptions midpoint during we $X.XX. share, too X% overall, We contract XX% down periods. Gross in XX% XX%. And as saw billion of down XX%. the very $X.XXX in XX%, against to these basis. you for margin count into Revenues, and them. quarter to down much of productivity XX% the

for Solutions, percentage deferred to overall to SG&A, as and excluding classification XX% XX% XX% XX% Protiviti, impacts XX% Talent XX%. revenues, a to For compensation of

to $XX XX% We X%. SEC X% in filings. are call million. our and And million $XXX.X million capitalized X%, quarter. capital million [ to computing costs fourth ] $XXX.X quarter. X for release limit and productivity, in in overall to this income, XXXX X% mentioned All estimates million rate, and the $XX shares with the $XX expenditures to Talent Solutions, to guidance our XX%, cloud today's X% $XX press segment Tax risks provide to on to XX% subject we to to

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

M. Waddell

are their internal approval based selective Many and finding mixed, and hiring in including activities, head maintaining funded are low hiring Mike. elevated replacements. this you, gains in their clients' unemployment and remained at staff. many is with of healthy. Consistent anticipated remain times, reflected counts on a suitable difficulty sensitive with Thank their forecasts quarters, projects. caution. the in job very reduction Macroeconomic are remain prior this monthly job is Clients contract budget the continuing new openings rates Also,

their same ] skilled current of what in candidates this gross significant many The or we improvement labor rates skilled first in of openness advantages: our are margins, first the less practice downturns. the market. were addition, professionals higher in half strategically continue relative moves, and Solutions, the full-time and periods positions they sensitivity. churn across less services. the financial resiliency during new career out fearing downturn Talent roles. remote assignment the dot-com net revenue they services bill In carries cumulative become links, higher client involving This A the of greater to may longer increased economic in . The to to less are than job is X factor crisis reluctant result and compared and engagement the is last [ more invest to In quarters and groups. declines talent make sequential higher

dot-com scale of the is [ Our higher positions percentage current double mix revenues XX%, during the from downturn. over contract ] nearly

and to and Protiviti's to double-digit for continues lesser the Protiviti's budget be revenue internal ] regulatory technology and this extent, positive practice pipeline expect growth mix posted be modestly audit to consulting by continue. pressures. significant We are [ compliance quarter, client to continues new a effectively impacted it risk past, shift being contracts strong prospects its peaks. although downturns are engagements. begin average impacting strong, positive. economic deal to size the in takes Protiviti emerging time weathered to are the close and higher and continues in We've marketplace conditions each and time very compete achieve many very to economic the the again

compete With solutions, exciting consulting and and work grow. even and provide to we more confidently remain portfolio about the connect and talent corporate talent committed meaningful with time-tested future. clients to Protiviti are and they We purpose our our of to current confident need people expertise to the

employees made Finally, we'd employers. our possible their new Magazine for Robert as Half best one accolades women. prestigious honored Time of Forbes one world's in and like recognized thank world's for efforts, to of the quarter. as which today, the across the again one best by were best by companies was just we third globe workplaces And as Fortune's of the

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

Operator

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

Andrew Steinerman

you revenues a Keith, here, Obviously, recession. question. but like quite I'm to kind down give of are tough going a not our

recovery this what that to this does be Like do the like describe could So next you a has step would more feel as? pre-recessionary you? like feel slowdown mid-cycle follows? really Or environment that you

M. Waddell

of an financial are where as sequential X environment that is in great we've quarters it's the what sequential and in about just cumulative factual had crisis now? slowing dot-com environment half that And as said as far slowing. What We're we we of impact.

better aside, job with margin. margins we've SG&A operating over same better done a we've job with done a an X better a quarters. We've done those gross and with As job

what's to say. to hard As next,

time, recession, there Clearly, that's on XX-XX. a like but the more Wall was ], won't one to maybe Journal somewhat XX-XX getting close still hand, Street week are positive economists be [ last last

on we've that focused when we how -- our still to characterization kind manage bit. the we trough current a We're the downturn dry get there's in of the The relative will powder always lag line. uncertainty of same than a been right margins. lot remain costs. not a optimizing of They taken environment. long anticipate more stance top has our true to here. things better So having

economists have Andrew, I think for months XX now, struggled.

Most was happen. about times what wrong have been to going

a said on quarter than have the ago. to last As rate that XX are call, during we we our weeks, weekly XX encouraged same declined that the less revenues

recent was most our Cumulatively, X% example, that to finish to quarter X% or weekly quarter, an down from revenues start this As XX%. statistic down X%. same are last

that. improved field given assessment. We're rate the is an in we guess including not encouraged has But really clearly, -- of bad So make professionals to narrowed inclined next by how significantly. everybody's overall decline how what's assess and/or the overall

Operator

question our And will next from come Baird. Marcon with Mark

Mark Marcon

Protiviti. focus on want to I

on You some practice. how mentioned characterize compliance size there? weakness, of I'm and you areas seeing strength wondering regulatory the the that? And big And were risk you're is areas would where then trying how -- at to the the a terms be but in that of are anticipating. A continued narrow here guidance in doesn't revenues. Protiviti much to for environment seem worse, faster decline getting rate we

to those trying pieces and just part together put I'm to that So think through?

M. Waddell

Okay.

process improvement. solution regulatory major risk to internal Protiviti technology business consulting audit, compliance, and has As and basically areas, size, X

Technology little risk they're in orders being orders fairly all exactly the of equal. equal. little consulting ballpark While compliance magnitude, they're and of smaller. a a approximately But magnitude regulatory they're larger of not equal

the far that's close or the projected take frankly, X% the to a midpoint in you and you not that that many shorter for third quarter guidance, average to in are fourth around precisely revenues daily only monthly at of as quarter the As because but has fewer fourth you quarter apply the soft have holidays, because holidays, the if days billings Protiviti the decline. X% what the the or clients get and quarter,

even quarter. the quarter the than of And the days ] the revenues it's It's an daily see a basis, impact. shorter because stable a pretty you quarter. intention if extend of will, Tale soft in shorter And we [ for so just is that closes solutions fourth of on number

Mark Marcon

would to give portend is us at And does year what regards And this up. Great. a along shape the is from year you summer? ago? of wondering class relative going the if with And next then lines, you the the additions what color offers mentioned compare any you the this going recruiting for And campuses new of that campus of that how year, pipeline year sort out to, size to people will coming can How next next up time time is pipeline doing strong. year of for is and the this start those how summer. ended in when say, to recruiting extent you the are up

M. Waddell

was First, larger growing. it is year on a the It's pipeline, it than ago.

pipeline opportunities close However, slowed. project the has contracts velocity of and converting to starts

from Arguably, they're a matter high of per staff, of single, not it's in with next the project it's attrition, very started recruiting. XX%. gets are the well double-digit year. market first XXXX over about with on that's operating quarter urgency became given for into pay back We margins put se less Which typically demand speed the to their quite the to converted X% demand high this then of which to well. having half how their pressure it's . They've competitive now think they segues So given portends was result low Protiviti which they've experience, start. conditions. to good where those which what quickly raises a with positive utilization, the which managed through that than that journey that to which taken they campus a feels to in

so. months coming They'll but in Given their they via still of that employees just the intern They many which with still a they're somewhat sizable more they're be now -- than the conservative less campus traditionally, have seeing. become class finished hires attrition campus. pretty significantly had they doing

that's which true campus, on in extent internally employers, seen the given across significant what also recruiting the attrition, churn to not this in what quite to gets before, the marketplace less ourselves. is but decline still but have So they

Operator

will Joshua And come our Chan next question with from UBS.

Joshua Chan

kind Keith, to can could Solutions at going whether margin? been kind forward pricing I you guess, despite about you sustain just the of stable in it's I on contract thoughts of levels? Talent softening these a I guess that gross mix. want talk mentioned environment. your the very resilience and get know I

M. Waddell

the discounting And labor see so reason tightness given we be pricing. the why of no should we market,

give qualified solid, a have you talent, away. you If shouldn't it

And so there. pricing is our up held

the Our pricing. for that tight, assumption is and bodes market relatively remains that labor well

groups more with move and level senior As versus a operational journey skills receivable, And accounting level up level will practice the there in skills across to mix, payable, our gross to we've start the the payroll, been meaningful on skills to the up. curve. operational margin et skills benefit long-term is would this be higher general accounts ledger, accounts skill level while higher accountants cetera, move

now, curve march and skill way, years higher which the to at And full-time continue more engagement several by skill professionals so than which are levels up that our in direction, has the levels. we the at skill been migration operational ongoing planned that includes, prevalent

margins, about gross both done as and great to we've as feel to We what outlook. the

Joshua Chan

color. That's good

my follow-up, For comparisons. could the revenue about I ask

I the in of gave expect Xst, would the go as you stable given the revenue lessen would through year, deceleration that that November this December, You somewhat fact a if that and October saw declines last you quarter? weeks you the fourth X guess, October. there's environment

M. Waddell

progressing Well, the for to how moving best complicated. this now, believe sequential versus many on to basis. we year-over-year, weekly parts, whole thing is it's look how weekly we're has sequential performing That's versus our understand a at why right us quarterly revenues sequential and are

ago. but year-on-year of you're still starting down recently, the have the have sequential in to a issue they So than of declines, X year been have most year-on-year you're that's you've out that flattened quarters the we've hole. certainly less a rates on the the you past helpful effect were basis, going negative But what that growth quarters to by fact had definition, because X

of happened a obviously. And including lot year a moving parts, so has ago, what year-on-year,

we indicative market on most is basis is sequentially what now weekly what right doing of we're a think conditions. how But are

Operator

And question Jefferies. come our with from will Stephanie next Moore

Stephanie Benjamin Moore

question. Got it. question. I continuing appreciate last Thank the you Maybe the much. so on

the As trends ] and hearing financial to get about? of or I think we see you fourth it's are elsewhere heads around trying ended started lot to whether from over -- a [ cycle. the of where or third year. you think you've the September we're any feedback maybe weakness, to the quarter end a I October, think the had just your cycle quarter been maybe any of in And in this all about, customers, where I'm seasonality pockets institutions sorry, you the at is the think tech our clients last

can So you maybe end into color quarter would and particularly that the the fourth far be so any that the customer point quarter of helpful? to, going towards you've third seen

M. Waddell

Well, lot still the end, said, I it's beginning numbers, much, that's average The described, not customers a I'd just numbers ago. are it XX days stabilize. cautious. to was our better by and That feels only than like from that's weekly to say are it beginning as X%, changed

Customers there signs consistent have with openings are the U.S. so in still stabilization. still of are And requirements, high. the job demands fact still that have

they're look in and person along for do ago. perfect So news they better But weeks you they feel to for the than and time to it patient week they selective. so. by did us, days come XX people, looks much row, week when can waiting very several the a have it still is to need just They're good like be they

Stephanie Benjamin Moore

investments? gears of just a of you call bit talk into some can investments about clear. of crystal mix, you kind in a lot of XXXX? spent you've some tech your opportunities of those done within work control, other bit quickly. and that's enhance this I Maybe talk your digital about No, appreciate some it. some of little the your of terms to tech you and talking think a switching the kind the of Absolutely. I Could maybe about actions but little

M. Waddell

X response a our was which accurate past talking gave AI process back the our our scores presume news we we in news that years, higher about to the our XX,XXX of tested it of AI, chose Well, we predicting did And last selection quarter, and and so been even AI. you're and in I X-year we which loyalty interesting did effectiveness over and major done pleased randomly of model test We better candidates the did good we is candidates placed the over about what had recruiting prediction. we've And accurate than in part involve the this kind very how clients rates where AI was highly higher where is making not. not. we model that us in has

what our in as in just which the that we're last will so process about we think said AI. it as model a AI reinforced already quarter, of large further recruiting, customizing the we believed And use we improve language we

for And so it's excited about side. the what done we're us recruiting on

of people order they We their current to to most previous in which are customers, call. continue the them prospects as customers, to path when down outreach our the which likely an using give with AI help

So that's on on than horizon, recruiting that less an developed are effort that's much ongoing. that's we There are but the side. some positive signs candidate

So about investment. our excited our we're AI,

before well Now it's very that the AI And AI have. leverages in was in data we It only the practical. paper every we day. were

across we We and AI performance information, have work assignments it's our it. for us. candidate know leverage portion of now that of that key We as they a millions data

Stephanie Benjamin Moore

you [indiscernible]. didn't want AI, but didn't say I to

Operator

Patnaik And we'll Manav from Barclays. with a take question

Unknown Analyst

thanks Can and sector for from exposure any strikes talk Manav. the and the question. Half? you Okay, Thomas for other This about public on UAW Robert for Princy labor impacts is

M. Waddell

Yes.

either UAW needle. enough or the impacts, certainly LA from So strikes there's mean not I to on the very, labor very Half Robert entertainment-based. very, small impact little but move

Unknown Analyst

Got your hiring? you that you. for outlook are Can gears. talk any switching about internal influencing And factors

M. Waddell

based dry individual we've where that our staff. and That so. We've Well, continue we're hiring, through in performing staff experienced the point environment, current talented, But a weren't productivity look on always performance, at the always environment. is, are productivity for oriented. would to to powder, powder given lookout to dry the skill We recruiting feel sales-oriented highly of people. the the and internal have the people we're like best great We adding the good said, that capacity those for we expectation. certainly we're which this not environment, reduced both the that the is in always are this staff. way. staff best the decent market for feel And people in some had got internal in performing and But we've aggressively that we're are on looking pretty set the been of the existing have those process about

Operator

our And next come with William Blair. Romeo Trevor will question from

Unknown Analyst

you on Are the maybe up better are or holding business. Talent any maybe One others there this Solutions talk Could about versa? demand vice types than by vertical? in client industry clients that environment of

M. Waddell

Talent the XX% on Well, Solutions we're side, SMB.

the And we there there. Financial the that, industry Services on clients. is there are holding and and But cap have real major larger heavy, it's little because big no there's so that but by more it's digits mid-single many broad-based, tech no pretty certainly stories Protiviti outside year-on-year. well, in mid-cap reasonably down don't story large is se probably side maybe impacted but of California per geography both by industry. a on

Unknown Analyst

then And on Understood. Okay. Protiviti. one

and think mentioned budget the on the tech audit practices. pressure you I consulting internal some

detail companies? year-end could wondering the budget for consulting those lot maybe since what projects kind with of you in are Just particular, clients we some on of look conversations if give like more on a cycle approaching

M. Waddell

more does Protiviti in We've particularly talked in is they split their clients internal happened, responsibilities FSI co-sourcing program. internal of allocate the Well, more third clients. where large get clients they about part of of what's to as internal their the with that budget-conscious, and And audit work as what staff past, audit Protiviti. to less a their the such with work parties, lot as the

feels But stable pretty we as about feel the expected as that the earlier, services marketplace Protiviti is speak their in relates is where the cycle they I to year. pretty including are, continue. coming it to think for budget environment as I said like good and

for big audit signing new internal about quarter that. bullish relatively first The contracts, is a they're and quarter

So we feel good. .

Operator

to on moving Mehta Research. Northcoast Kartik And with

Kartik Mehta

your competitive from be pricing. there's about And or maintain ability to if talked at pricing doing? you a any competition your might standpoint, wondering, what I'm seen you've Keith, any all change, competitors

M. Waddell

Talent local on on But of labor to side, our compete typically price compete given positioning regional talent are firms. the also or tight given the that aided in always never competition. price. operated the Well, That by quality of there's AI try a competition. she brand, of about. absence how always effectively Solutions part market in They is based every cycle, our can the can is, We've has on provide, best quite candidate frankly, he I given talked which wins the and we just price

it's undercut day quality we as say not to more Canada local that's than price, but a So about get every price. don't by competitor to

On big campus how side, X, I'd the been heavily has the their were what based to on say Protiviti position coming, hires the which that relative hired deferred. they some of have been

X big a that competitive operating, and as has quarters. for locations quite just have those that in to been the parcel and couple get X And Some locations, But been to have way capacity. firms those Protiviti certain that's will of price. them part excess of it's environment.

Kartik Mehta

Or Is now you And help Robert it they've hurt? Do just on E&Y, another is go Half? for decided neutral? to think direction. that that Keith, just

M. Waddell

a firsthand that external help all directors given weren't didn't a We fact The to with neutral happy little thought say seeing of partners, bit. services. I'd wasn't it managing had conflicted to clients of already financial Consulting providing didn't Anderson MDs there. challenges consulting have The split Young they're audit a where Protiviti are what lot the services the that surprise happen when how the were Anderson Ernst thing shake was they about they that going out. & knowledge and

is in industry freed group, largest to which major a to way going be So they provide in up weren't Protiviti's consulting [indiscernible].

for to reason. So business it was the it huge fact But a as it's usual. that expected didn't that happen, already kind of have negative impact not

many directors activity some little thing X managing very retirement young of have their partners, limit. and is there because I'd that X productive Protiviti. more partners that the a say across I big big those past of Nothing beneficiary the their say be generally XX, would new, left many be most interested the of with a I many, is have practice. careers. would years But in early with but their that other I'm about early retired we're the

Operator

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

Unknown Analyst

This is Ryan Jeff. for on

strength between Over been U.S. larger if international there where I a the seeing quarters, curious internationally? was of you're you explain the business. just past and couple can relative delta the has

M. Waddell

Your been been within U.K., always Europe, us, quarters. perhaps, solid. outperformed Most zone, negative been has a in has lately. U.K. the which the amount U.S. correct. Europe. the And is has even of good. good international It's for that's generally And for Germany observation has the of been gets strongest. speaking, several fair been Belgium

to than great. continue in year-on-year sequentially we quarter a is So outside the and U.S. U.S., which better have the

Unknown Analyst

And the talked the actions then the and sure know during cost you of that's quarter, I reflected I'm SG&A it. in about some Got guidance.

Just where on thoughts any from look going forward? expense more you broadly, can you are offer

M. Waddell

And savings our our gone productivity gone capabilities But of that is but get said and the quarters. through to on are based our last through process staff. a optimize SG&A. process. things as several the is We've and not in goal Those right have better. based on I reflected to individually we've kind to overarching rightsize when earlier, trough capacity margins. instead rightsize

million $XX Talent think in saved quarter ago to a I alone, we relative this quarter per year Solutions.

But take further go resources. going get things view capability what's actions in magical looking capacity, on we'll relative need out And great better to to not things prior downturn calls, want also as we for as we're their And the better, and again, adjustments below. we'll margin, trough a to So when of the have need capacity do with that. our to during plays have reduced better, their to the at to clients watch the we've revenues. we're many not they based to capacity. for some which to internal having instead, that source right own thing what as internal we get as own extent things soon them get said continue there's be a scale But make we a

Operator

Tobey next come with our And question will from Truist. Sommer

Tobey Sommer

mid-cycle down a like should as cycle kind the what wondering slowdown recession form expect other on [ on side? that the what deep up difference look been the we Does other Thank Is if a growth ] is the you a other of would side? as the side, very I'm if prior in half period. this on in has decline much.

M. Waddell

absolute Well, say job would to is, me, to the are only reason in no the past. openings the that I much, much than level higher of

it's as speed half negative been velocity there. downside, which which for future when hires openings, things they're the are does though better, those get even job up on the So

as be of it's at down, it confidence So negative would down huge that gives positive typically as out almost to going double is now up. going because openings be that Look going only coming half it's been number, that half cycle. what me just job which a

Tobey Sommer

is low think aggressive with of propel do these even more you of sort filled that unemployment in can at upturn a levels, -- those And level as typical jobs high or be [indiscernible]?

M. Waddell

got that them. supply of of candidate You not source million levers. pinpoint upturn, remote because during We've which years about of were of was an growth got really near right our of typically never where viable, so candidates have to base. But just the the those work, X the heard people. supply over X XX as remains the with candidates understand database expands the candidate skills, us to there we upper at AI concerned a fewer talking And can We've fill during in positions the they was tight, last constrained because that I short several particularly list are those clearly, that of a early jobs we're And between major because as peak unemployed labor downturn. part us are for the are that about

were more just And said, everything important professionals this engagement there full-time from I've maybe a that already recruiting full-time job. than people have

And time Robert job so that's during displaced from a having people work relying full be for were that downturn. contractor. their current a to people That's as switch and deployed not full-time on Half

on the as we if that though get for things tranche So years. even won't better, we just unemployed alternatives have be supply bullish supply, rely that better, of there last traditional I'm to of the very people couple side for are as demonstrated not as us the on good,

Tobey Sommer

looking 'XX [ compare you a trended of 'XX, for year-to-date? in at does And has sort job are in, have to proportion one sneak might clients that of those to [indiscernible]? how How ] remote your that when jobs have opportunities? could the I fill it its as been how

M. Waddell

we it's higher skills. firm giving at say and lower without skill. higher so would statistics, And skills certainly different at much prevalent We're more

than has on to Next, the been it site. fully has more and totally between we been movement say would hybrid remote

it if saying add between fair the been together, way hybrid lot there in That that day. the but just fairly skills. for site a project I remote particularly a hasn't not work. clients of come skills, and higher movement has and accept to skills, stable, still of And remote so totally But on hybrid. you flexibility said At very others, remote is another particularly between to And changed. movement amount what of every higher still at and that's want much not

high do They I their so, There skills high they argue, are remote that very very that staffed where remain a would those a They they more are. special willing be pinpointed project. need with basis. have That's Even staff. than skills on own that, for that project. full-time

Operator

Our Tong with George next question come Sachs. Goldman will from

Unknown Analyst

quarter, [indiscernible] Solutions down the XX%. Your in and does full supply what XX%, relatively markets the which your exited to To revenue to assume Talent with respect guide demand? down third contract end various XQ quarter stabilization your extent was

M. Waddell

typical discounted sequential over significantly line last that our -- of we the in quarters. reflected we've improved, the that QX the line, experience trends based said, we've still trend And guide on quarter Our improvement for at looks this quarter, we the discount the guide. what many fourth That decide budget. would the And the of traditional volatile number the go next due until month always line to clients is the for shorter Clients for trend year. hiring fourth run the defer and quarter, way, December out given holiday, clients be quarter. by placement, of perm on holidays a XQ years. recent trend of most fourth few to days Since

the is variable Said for we've the guide of the by of sequential always placement just perm sequentially for it's changes. certainly some quarter, but that's quarter quarter. improvement reflected. December conservatism the partially and we we hiring perform. and reflected fourth fourth in And in into we stabilization, as weekly perm it. QX, fourth In totally demand our holiday it's how third that Right, all large, that saw quarter because But So because differently, and impacts not reflected quarter for not conservatism. change fourth

Unknown Analyst

quarter, and revenue the for numbers in delivered above profitability. consensus then you And

what business metrics, quarter? upside? the would be downside. you And of the That in you would the surprised think you internal As to about you areas to call out areas what surprises the saw

M. Waddell

in our positive the improvement sequential Which practice across pretty surprise was the say the broad-based performance. was I'd weekly groups.

there the major side, the way. in negative is news On that that negatives good no were

wouldn't And so anything negative That being out relative consequence. was a I call as to our of expectation.

that that the The other [ not course the mentioned X a in for made positive total significant segment their Protiviti quarters. ] I was surprise over improvements income of first

hires resource full-time kind the campus coming, of of in management third attrition, dynamics ] staff. the quarter the quarter, Xs contractors [ given and First and again less digit the the between double

their the and is between and quarter, XXX they were and did they hand than hell third second fantastic, maintaining better I segment basis think little up of a expected. a went with the dealt points improving given we think a the margins I that's which job,

But I think it's fantastic.

our joining. Okay, for last everyone. Thank you That question. was

Operator

teleconference. This you. concludes today's Thank

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

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

Robert Half International (RHI) 24 Oct 232023 Q3 Earnings call transcript