RHI - Earnings call transcript Q2 2024 | Robert Half International Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the Robert Half Second Quarter 2024 Conference Call. Today's conference call 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. Officer. Financial Chief Buckley, Michael Mr. Waddell, you begin. may

M. Waddell

Hi, We appreciate your today. time everyone.

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

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

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

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

XXXX, last Net second share billion, the adjusted basis. the $X.XXX income quarter quarter of reported as Company-wide a to and second second both year's in revenues were $X.XX persists. and quarter activity caution For from new per XX% quarter down hiring a as to compared Client uncertainty and was the candidate in year continues starts project and interest impact $X rate macroeconomic ago. second on

basis. and includes and technology staffing growth year-on-year business and revenues unique and and within built our people, on current professional quarter posted ability both and services. our prospects, remain to our that model industry-leading the U.S. optimistic a were led consulting about growth earnings climate our sequential navigate business brand, both by in Second strong segment revenues guidance confident range. results Protiviti on in income We

$XXX million. shareholders the record distributed for cash total Cash quarter June, our share $XX per a million. from we flow outlay of cash dividend to in In operations $X.XX of a was

prior higher dividend since 'XX share Our inception is XX.X% the The was XXXX. per than dividend year. June annually XX.X% in

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

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

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

Michael Buckley

hello, everyone. and Keith, Thanks,

Keith billion down Solutions adjusted year-over-year. from XX% in On Solutions We Non-U.S. down Talent $X.XXX year-over-year. second as million, were conduct XX% Solutions quarter. through XX% countries. prior $XXX an basis, year's Talent offices As were million, revenues quarter U.S. foreign revenues global the operations revenues Solutions were noted, the were United second the Talent quarter. down second in in revenues XX Talent States $XXX

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

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

effect for fluctuations Contract and rate for also rate the the Protiviti. functional in for quarter quarter decreasing Solutions ago, first $X reported the solution second was quarter This talent million, year-over-year the by mix by Talent for had country. changes of revenues during for increased X.X% adjusted total revenues currency and X.X%. compared to specialization, X of year $X exchange second million rates million $X bill Currency the

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

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

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

trusts Protiviti, deferred For investment margin for for compensation X investment XX.X% gross was Protiviti to income offset compensation by is deferred of the offset, year. of last XX.X% ago. just to XX% Protiviti Protiviti income deferred ended compared compared to revenues of employee year quarter that Adjusted amount completely margin revenues or compensation the XX.X% was for gross related the

global in selling, X year. ended costs in quarter year to investment Enterprise general on second the costs Talent quarter ago. deferred compensation to of second the to the XX.X% deferred just last for administrative year. XXXX. revenues SG&A SG&A quarter were compared XX.X% for compared income compared quarter ended Talent the costs. were second the offset. for Solutions the Enterprise Adjusted the XX.X% the costs offset, same Solutions of compensation of Moving in XX.X% last were quarter quarter Solutions were SG&A XX% income costs revenues just XX.X% XX.X% Talent investment for XX.X% SG&A Adjusted versus to in

last quarter. revenues for quarter XX.X% million, the quarter second the Second for compared Seeing SG&A margin investment costs Protiviti the same combined adjusted million income was income for Combined XX.X% quarter compensation of X.X%. for segment to deferred were year. in was income $XX offset, $XX segment Protiviti the was of revenues

$XX a division quarter Second X.X%. a Solutions of million quarter the was our for X.X%. margin with Talent margin segment $XX million segment of income segment second income Segment with in from was Protiviti

from equal expenses includes held quarter and offset compensation amount reflected This million investments completely an additional employee statement in costs. are compensation deferred trust. by income XXXX is deferred direct SG&A income as which $XX in second Our employee of costs,

no effect income. reported has such, net As on

$XXX or XX.X million, quarter At and were outstanding, was tax receivable compared the implied to XX% end year days quarter, Our was XX% second sales the days. X accounts second of rate ago. DSO,

and quarter some Solutions third to review so Contract and for billing July, days. revenue the let's move of the exited we quarter we trends the all monthly guidance, Talent currency quarter in in saw second adjusted down revenues far Before prior Revenues XX% of quarter. versus XX% the down to full compared period decrease last X XX% July second for the were the for the compared weeks a June first year to year. with

revenues down XXXX. X% versus quarter. Permanent June a placement full to in compares were June XX% for This the decrease of

compared But into you brief X as July, are we caution periods. second the the to so saw weeks placement down you For trends XXXX. of same time some have reading the these into provide the much too revenues this of very first We into during know, were in period insight XX% permanent July. We quarter them. and information against

quarter guidance: $X.XX billion. mind, that share $X.XX to With billion to following the we in $X.XX Income revenues, third $X.XX. per offer

to to information Our share includes million. on charged QX EPS estimate International. $X.X $X.XX of a a million related Protiviti moment. and tax includes This provide $X.X charges per restructuring this of income in SG&A charge additional will Keith

$X.X these adjusted. revenue major revenues period XXXX same as of billion of financial adjusted as growth, basis. the are the lower are than midpoint follows: year-over-year The underlying X% estimates as Midpoint in assumptions an on

to up XX%. Solutions, to down down X%. Overall, was XX% Talent X% down Protiviti For X% XX%. to

of Overall, Protiviti, to offset. deferred to as adjusted contract XX% talent, a for XX%. percentage adjusted compensation income percentage compensation income revenues, SG&A offset deferred the as to investment investment XX%. XX% margin for for XX%. Contract XX%

For Talent to income to to XX% for XX%, XX% to XX%. Talent Solutions, X% XX% Protiviti overall XX% Solutions, Segment X%.

For to million to X%. to to XXX XXX XX%. million. Protiviti, X%, Shares overall X% X% XX% Tax rate,

the cloud costs capitalized the and risks and our million we SEC in $XXX computing expenditures million provide capital XXXX $XX million estimates press in $XX filings. million mentioned today's call on subject quarter. this third All with to in are $XX to release to

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

M. Waddell

told lines. a going sound little scratchy. to we're to We're So as switch

jobs. So reluctant give and second. Client sales subdued demand one are elongate just and change cycles. constrained, remain This short-term candidates budgets us to

However, job are future above openings pickup of historical demand. highs and indicative well

As returns, and growth pressure and This cycles. creates that labor and that urgency in and to initiatives churn leads the of us demand reprioritized hiring for resources are backlogs business early often consulting accelerates, strong confidence improves, deferred are project gains growth stretched normalizes. already very demand client on puts part traditionally hiring

this economic forward. stalled second progress higher which positive more While should inflation sentiment conducive momentum be quarter on trends going the quarter, for year, in during overall reemerged of first the and business and levels confidence

proprietary invest expertise to in which business, to technology continue and our of professionals our assets. fuel with We and solution data our core tools judgment leverage innovation the that talent skills, world-class AI specialized combines

strategy, interacted candidate industry-first our the for recruiters recently AI plus which display placed that ratings our discovery matched we've previously benefits is on demonstrates experience of with. the of transparently to highly combined recruiters the AI This our upgraded website clients candidates our all an value. tangibly or We

strength both exceeded quarter. areas. with for growing income broad pleased results Protiviti's It's solution very in its each the We're on basis segment margin of XXX and based points than sequentially. more expectations,

improvement revenue in third market. and its a competitive resource strong, a utilization staff rates. share quarter. pipeline close The combined remain result is prospects continued testament Additional Protiviti's costs strength of ability very in consulting the expected control gain over with to to and increasingly

past, and to higher benefit aging confidence will This to future desire during each portfolio are many us quarter, $X.XX a local charge peaks, confident achieve Member revenue flexible share. weathered of years about owned As for current will our third resources costs independently including in expected talent We've business China for our state-owned solutions its to Protiviti cycles emerging result time previously, variable even to with to Firm in enterprises. clients' transition an and the opportunities, and Mainland more demographics optimize as the workforce economic noted restructuring returns. operations of macro we're per consulting, come

our to subject-matter in ability technology, strengthen they work invest our and to model talent our with meaningful grow. connect a continue our confidently business to to and candidates compete and and We'll provide clients our to need people, expertise brand

people-first to to list on America's like for for made new success one across our for employees Diversity. accolades, And commitment #X a thank ranked and again, Best Women. whose just the best firms, Half, of possible Best recruiting selection our number we'd Fortune's Workplaces Best our Forbes' reflected culture professional Forbes Robert Employers Employers of millennials, yesterday, as in was Forbes' Finally, of globe

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

Operator

And Mark your [Operator from the comes Marcon first Instructions]. of with line Baird. question

Mark Marcon

continue obviously, trends when job take look elevated, We know to openings continue the Firm soft. be a at that but relatively Member to be we

that ended what one COVID just that lot to we're of that but some kind of concerned play you how hiring in great just too do the and you concerns? macro potentially that's And overstaffed is like basically people relative to at as seeing do difficult extent high think concerns to snapback so of they're over a in their flows, do to the of of quality are asking companies And And a start everything just it's therefore, and might dynamic them a staffing we how a and about but subjective if is thing much think to during resignation. investors precedent go so part midst about certain with that up using hire they're flexibility. it's a once through it, we up long question, not that that ended holding us of temps level, to cases, on is I'm basically permanent they it the before a macro this bit pickup? that's wondering, big pathway think the to take

M. Waddell

those Well, extent, X There's no the of Mark, cost, that's played question down again, into that, certainly signs by contractors. that. we're we're of But factors, were early such seeing using post-COVID, say that, project that get are a into to clients variable X we're but quarters using quarters deferrals. would large which now they I sequential quarters lever clearly

as they in of our they made shopping analogy, They've button clients pre-earnings but an the speak. have our on we put retail interesting like call said, indicative hit don't of, cart, demand people their done deferred comment, something our feels there's submit using diligence. it One due

no that an post-COVID we're that had clue And But quarters into as impact. early said, so X this. accelerated there's did hiring I've

relates In period. all the that period back and sequential way down dot-com longest of quarters to the had fact, we've the was XX,

coming given and are down, So looked down we've of talk have XXXX, you this of if was a been half industry-wide contractors particularly been temps, like, at us to down rate at will, interest you second lot tells cuts. of if while, a inflation

X look performance, first mid-single you our If we at were XXXX, sequential the digits. quarters couple down of

declines improved -- quarter of quarter, that those On fourth down low the rate less digits. to inflation the the prospect cuts sequential first single

quarter, moved digits. on we've this given efficient mid-single is the sequentially. of Again, back interest to This down fewer cuts, stalling the rate

down sequentially, rate what cuts, half we're extent we lag, and see but speak is improvement how in QX in a given year. early the cautiously last it of a we we much optimistic we're mid-single existed that the that for that will optimistic pretty it's happened of overhang as in to numbers. business we stay guidance X inflation with But last speak. in second as its Our And and talk reacted progress out way our bit our to digits more of we it quarters, over-hiring the existed, played as see of

Mark Marcon

with Keith. you. I And color, great agree That's

strength you about bit additional Protiviti -- improvement. And we're But areas The how what on in of quarter. of us that much other talk question amount out? guidance the there? is really when I'm you nice terms just that that the And is, gave within you saw China? can stripping little the wondering we What's is a the U.S., the Protiviti for

M. Waddell

So compliance. across the major very business and its and Every the process risk of broad-based. on we're sequentially, X internal Very U.S., good one balanced very areas: consulting, them news grew improvement solution technology audit, solution strength is was regulatory by. pleased which Protiviti

to As million. of small it annual $XX revenues, China, less impact was than the

it's EPS to under principally in small. while well I'd this we impact X% of conversion Kong, just from is there's revenues. Hong what's owned for, impact the of so is an have say revenue which Member the that And as left China, quite And Firm,

Operator

And will Andrew from the JPMorgan. next come with question Steinerman

Andrew Steinerman

a word gaining you Protiviti. competitive? X? market? feel I consulting bench its peer know you word you the Protiviti's color how for of look I market like is like right little be utilization staff could full-time kind mean used that do like firms used center share Protiviti And give the more Big Keith, in, on you consulting And the out the you of know But like market does I bottomed a the the what at here feel might do and plays now? utilization

M. Waddell

does I'd competitive, market Well, consulting on say market-by-market a particularly remain the basis.

capacity. that is how That's of impacted that the including excess own Protiviti through with new judicious aggressive quarter, have particularly They firms utilization in pricing. part through they by not this use talent quite contractors get managed their large Some well, but manage solutions.

jointly close little strength. have Their and year-on-year QX -- a will luck. sponsorships to that's QX. market-facing They've of a has in Globally, So very was sure in their Protiviti feel solutions They it local across activities to Solutions. events. year-on-year about our their go staying making conference market We growth growth focused on starting with understanding by business problems, great clients, webinars, They're are mind. They capabilities strong, Protiviti. close pipeline balanced high. to Talent is kept do top aggressively, with their current

I argue that don't So gaining marketplace. And with share. we're very this particularly anybody performing think they're Protiviti consulting very competitive is pleased in how would

Operator

with Manav question the come Patnaik from And Barclays. next will

Princy Thomas

on same One expectations also managing you question you've And demand Manav. in that noticed changes Thomas year, have with seeing remainder clients, hoarding? your their then been the you labor for how Can the for of conversations mentioned. talk Princy level recent is separately, about you recruiter of your about any This the with hiring level?

M. Waddell

our but you, as their a based internal about little think of as asked levels on Well, I trouble conversation hearing I own resource I heard, you with had well needs. about levels clients what recruiter

policy As hasn't recruiters, changed. our to our internal own

career underperform. proven somewhere we we hand, how the just by with have else, headcount We have as performance person be by those that better we On counsel approach management the their they'd same always performers. like that token, a manage one and to

somewhat keeping powder While productivity to given dry having them, might their to that conditions. be better. get down things market We're or committed and capacity

we subject certainly additional shape grow to need XX% that's have. We've like all we XX-plus high-class somewhere we a that problem we how but we to to and much estimated adding revenue capacity that's could see heads, time, the recovery but how feel internally the at without to percent

demand as focus with remarks with about subdued we conversations as most was make that That are tomorrow's is demand many demand clients projects and about their in see those backfill trying is were we related, to point as talks demand impacts and everybody getting deferred, a of today's to demand. source before, including we that future companies ROI. the on Churn only That's prepared deferred There project definitely that As needs, of are subdued today projects projects speak. are growth short-term again. other deferred. the

get be there deal backfill that So plus to improvement, business. demand their as capacity you confidence with will client that Stacy, more churn, in improves, impacts candidate from

a the impact So many in unusual, through impacts many on of does which entire conditions management are why well much in there's been not typically a in the turn pushed the few and we seen cycles early of and of churn frankly, forward the cycles, see deferred is current we that's impact. through growth the of they cycles. and of we've very demand There's several that and the that times are softness there that see one these industry demand around, constrained teams part we, industry

demand. a our individual that turnover, everybody is less the industry. that as impacts for are that, of contract good that down being conversation resources all labor churn no job there's else's in question openings level, The backdrop attrition, there's to as and at also but believe level, We individual less deferred deferred projects there's demand less client well

Operator

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

Heather Balsky

out this making quarter, are cost ongoing every changes? you've the when keeping is amid anomaly, how recovery? the an are you thinking are thinking your about in any of given you're but how mind for And talking just just sort backdrop update positioning yourself given you of a there that about you Keith, about, business

M. Waddell

do first the broke up cost Well, last part how the but see side on the we of was you business. part, our

our Our always medium- for committed to their success. periods they productivity largest our policy payroll those during is manage those staff what of our performance as have underperforming, even are a cost we long-term we We're levels record headcount, and them aren't had, normal changed I cost that to track haven't in a said, as cycle. we for though

leverage, down X% ended, just the a So management, said year Having is that, ago. there services, cost, administrative branches although reduction, $XX not our cost a fixed leverage, a negative we our reduced was side particularly we million. That's different. for of that million quarter SG&A our our versus for but $XX our the negative year-on-year corporate the headquarters, have quarter, compensation for have some SG&A

Heather Balsky

would And was If where cut about see from are where guess you term, I I you thinking to an got we about staffing in asking be you a and Keith, are a perspective? staffing near recovery like off, perspective. where from I the the inflection

M. Waddell

with good where talked recovery veteran be an reasons. about, grow plus the of it being, be to how XX% feel XX% staff. would add and just are without if we subject evaluation right was would to heads. about We some productive adding we want sooner. could that But the robust we all just we think our did, may for to we We to But

Operator

on moving Capital Jeff And with Markets. Silber to BMO

Jeffrey Silber

we than at it third to quarter? increase But number. we quarter, For I to least, margins. cetera. is on question, Was our going bit margins, timing, to least into specifically guide I'd going contract thought. the anything solution don't that my there on sequentially to you at first that know there talent Should specific like estimates, number specifically focus compared a lower expect et this

M. Waddell

say I components. Jeff, X would

of that we're insurance, pieces the talking which that or On points, of our individually XX year-on-year, And the other derivative hiring about basis taxes, large. bunch a that half was which a permanent placement, et conversions, little not of essentially to down were was one a if is is a surprise. little piece gross there, due fringes, payroll over margins of cetera, full-time none of payroll hand,

fixed on line we're on the just as that committed other negative got leverage the the to costs, long-term And leverage the costs plus recruiters by saying you've a proven contraction to is which you piece holding our sequentially. the bit have negative SG&A revenues I your on fall of internal margin addressed fixed medium-

guidance of that that. mid-single-digit assuming of we quarter purposes contract recent As that And I given first fourth we're inflation, cuts what price side, come on our half kind which were and hope hope for see interest said, than beyond, down performance the sequential better talent sequentially, for and XXXX. is we'll seeing is rate

Jeffrey Silber

line. helpful. If up switch could revenue That's the back I to Okay.

and On don't sometimes, and But slightly it quarter, expect you support anything worse. I customer step slight second leading should decline there historically, onetime What administrative a small. trends talk about was the much, been going indicators, have is there it Was Again, know segment, on back this took the the relatively in issue? forward? year-over-year the specifically a there? got we going we

M. Waddell

see that So groups, to most results more you the we as internally. is size they the about X similar. right some clients. practice kind happening are leads And also of we on at results or potentially, observe look firming would quarters, them thing a of We that now. what were and enterprise ago comparables year-on-year Protiviti pretty I'd mention focuses strategic accounts. The refer last year call for than enterprise in what's on this, versus small business are X enterprise the accounts. we say near-term one we And our them

by a the generally encouraged strength that leaves we're bit. more always, so but we're seeing And somewhat generally, level internally, to enterprise not at SMB

And Protiviti. And the little. looking a we by of enterprises leaves and of we're SMB and that doing shoots in Talent small SMB Solutions in optimism, generally to point clearly if would for both so better than past, green kind in

Operator

next Mehta Research. the come question from Kartik will And Northcoast with

Kartik Mehta

Or seeing price saw the the that to you this about same pricing gotten level I'm year? a of at back know you the and about go last worse are wondering, competition were since Protiviti. to I of bit wanted compensation saying what you beginning I but very term, has quarter? the little is And short

M. Waddell

national the X resource levels, super it's a utilization It's not thing. a It's utilization that location, of get offices same-ish. local but might and a not And thing. its It's nationwide depending levels low firm, because local levels, accounting thing. on aggressive given in Big

gross It being that into And of seeing to pricing expected for managing margin of through at pyramid, it's component, the component so -- the points which they're type they continued the now. into for third, continue basis top are quarter. competition other quarters and leverage It's it's bottom. components at improved the they're of end, a but in Protiviti's cost something directors several XXX shape contractors kind of the it's through and the variable that but the managing a managing

They've been they've managing that of employees. their utilization the aggressively mix. So aggressively full-time been managing

And that together, impressive, sequential they're the the when bill mentioned. particularly reasons that think, you rate for they're I making, the put notwithstanding it's you so the that that revenue, making they're progress piece seeing competition

Kartik Mehta

if been keeping about your what employees, And and of through I retention then people rate to you've there's just because industry? stuff been been I'm retain happening you lead. I'm want wondering and where if But talked the company like movement the in any what's employees the of same the or that less going kind if successful? good is other every you of that has you've are wondering, just, you're kind imagine

M. Waddell

that because that say, more think regard, compensation every its XXX say industry, switch of States what dispute in I I'd strongest was. retention continue. just that tenure anybody don't certainly company, also they the it anybody X opportunity have of been in rates Robert would people, that raised the top our virtually not the higher has I'd comp and attrition rates the in speaking, instead lower is Half to generally amongst United always seeing

But retention continues. ours everybody's my best our that of virtually But it's And reasons, success. is our it the part included. typically than are rate rates point retention for in a economic now industry the long-term is, better and is,

Operator

come next Stephanie Moore Jefferies. The with question will from

Unknown Analyst

Harold Moore. for Stephanie on is on This

the finance solutions talent on on comment. touch to wanted within that Just

know I guys one said, of time, higher So in you a point are at job. you seeing high-caliber mix

a sense com,how in is just finance I there? looking get So breakdown the job want to the

M. Waddell

now prior our economically on sensitive. higher higher margins. have that half positions gotten we've over contract calls said as They're are where we've of Well, skilled. to not They

and that And long skill migration up a on journey so we're we've time. curve, the for been pleased that

well often together we We because It in that that continue and fit on Protiviti to journey. the Talent higher it's have best projects skills in Protiviti. Solutions with market with also those joint plays going

So love accounting departments. skilled, that of most away high-volume walking strategically, shape are in positions higher we the this any higher which in from mix skills, form we're operational or more the not

Operator

George Goldman And the next Tong question will come with from Sachs.

Keen Fai Tong

Can you staffing in contrast that and the perm environment? put seeing compare the trends macro and you're and placement that with with some context broader

M. Waddell

interesting, it's Well, George.

and perm years the that they're rate highly more Perm And from website go couple performance time. contractor of if where largely volatile, growth placement. highs between you'll correlated. our So always same we've slides, the a our to our at peaks beginnings, what you got is temp investor lower lows, see the XX, XX higher we've The troughs, got happen placement a that relative for show standpoint.

at less you staffing contrast, most XX%. declines whereas staffing the look of X probably if in both the And in I would in thing certainly were what recession, recessions. prior placement downturns, in peak I'd than the call and other a contract trough is over quarters been that to say permanent by we past perm down have placement, staffing

we're In in the so time, I trough, quarters, down XX%. X these to past this peak think far

it's in fundamentally than but placement downturns, staffing case downturn today faring full-time still better different about peak jobs. but are the as perms it's is contract, differently, because prior staffing than this as contract in more it in in benign So has perm Said not better firm more in impacted placement.

Keen Fai Tong

which about Got well behaviors. enterprise seeing markets you end verticals, different a Earlier, faring particularly some you you're are bit verticals provided what end it. less and doing customer well. comparisons That's SMB between which Can helpful. are talk across and markets

M. Waddell

pack practice current a different. about and the talk would the administrative groups. current about sequential they're put where SMB-focused, customer are technology big And it the And differences accounting, practice isn't group they to all I more year-on-year basis. we performance one principally performance. than because support, other finance that sequential our Well, comps are And on are

call wouldn't than way. I out that So any more practice grew another so in

Operator

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

Trevor Romeo

quick for Europe. of couple a ones on me. One Just

weakened from particularly companies few side. think solutions the months, few that we the Europe, the on heard perm other a bit demand talent incrementally, past of of kind I in a

talk you Europe, many Germany, Just would notable well. if your just be about saw other markets of curious demand in you And could that Belgium, kind of if that great. as the environment in

M. Waddell

say would change. I not much

at supplemental revenue schedules, you operations quarter quarter very you'll see performance If X different. isn't the year-on-year versus for non-U.S. X look our

And say more would so I the same. of

QX well. for forecast as Our similar is

notable change. collection led coming of our as talked quarter, Brazil on, countries So no but Belgium, I not last Germany, much international in by change

Trevor Romeo

And Okay. Protiviti. on That's helpful. then a just quick follow-up

strength out budget I tech quarters, called the you seeing pressures. think was the hear. consulting last to and I think all audit some across internal areas, solution But broad nice which talked several about you

see ease some on started pressure past in the of few particular solutions that those you X have So to in months?

M. Waddell

internal institutions, audit. we're particularly seeing financial audit, particularly internal some say, I life in audit, with IT internal would

large positive with particularly financial more And about internal we be so would institutions. audit,

industry. As Protiviti's services revenues about financial in the XX% know, you are of

see to optimism of is So there some signs great.

work. out again. to see more quarter, lift we I'd other a Sarbanes-Oxley see thing typically third the in lift going point that from The We're is sequentially

of a couple projects by past ended quarter. However, large it's this that masked

that guidance margin And on in the progress margin giving we sequential quarter such at so you're line, to typically got organization the third sequentially improvements. the would segment improvement such going top more offset flat see you've gross is and they're that the essentially

Operator

Summer from Truist with come Securities. will question next Tobey the And

Unknown Analyst

This saw in of little Can optimism trended dig maybe you more of something Jack NFIB bit it sort for Tobey. on March like that at the into you is Wilson all? Is dynamics a small June, June. looks up to business

M. Waddell

are confidence for are of them, generally, the below which about still of improved still out to seem see has helpful don't would normal trying we're for of say, months which I NFIB, applicants. part whether XX% business in if year our some I second index numbers we #X look this X year. we but no encouraged hire, know average, was Well, a few progress, first the you're specifically their at talking their those It's half into sequentially, is at XX% row. a still generally, least X you or to months, coming last encouraged. Inflation qualified problem of the or that

It's And little so better. better, confidence It's little NFIB a small a included. hiring. June business

Unknown Analyst

Maybe in a we step as of to think sentiment sort you following inauguration? Do change could election a the that. customer see follow-up

M. Waddell

or here know. the is that a there boy, in one swings other. I elections bit huge is My Oh been been the is having answer haven't recollection way don't

Operator

And the with next question will come from King. David CL Silver

David Silver

Yes.

I think the quarter. be my first this on blended question performance solutions would

was grew was eliminations firstly, if you the of Talent while for guess, on intersegment Solutions where, contract guess wondering just placements? I the I could is So accounting comment share larger number contract weaker trend I And board. talent across a blended that your solutions

for the guess, I Protiviti route non-Protiviti another economic you. non about via sorry, say, if a say, the secondly, then solutions internally, remind be that me oh -- candidate effects -- you with placed candidate versus, will when, with a Robert Thank let's let's Half blended is client. project could And

M. Waddell

Okay.

So that's have going market full-time where But blended its grown. levels thing. we now or staff, now row we're a We're utilization which than in with X quarters the you're to done managing expense we Protiviti for right, that to some sequentially. extent ever. of and using together The prior good that, its and to row where in Protiviti a That's at X better solutions happy contractors. have was aggressively have was blended a grown solutions, X quarters X

an than point on way a look impacts, we a through of if at for to candidate to enterprise gross As Protiviti, view client accounts by or a were different. place Talent Solutions, margins that from third-party directly those effectively gross Protiviti economic otherwise rather through enterprise from Protiviti, directly if that's to SMB third-party clear. that going margins or third-party whether aren't One we get enterprise via it clients to client is getting we wouldn't going the

David Silver

element have in comment great. that that's from sure on it. approach grow will importance. recruiters will a be certain greater through Or then that basis? that or speaking the your impact will if and I'm about year on But lines? note No, plus of for review did I that thank in strategy your now And I walk should AI Okay. for will But you to there. business we're success -- reflected results look you suspect, a is overall develops where staffing as broader your we your of

M. Waddell

it be would broad. I think

recruiters more want the at client more AI. the They recruiters. they they're back end, if want when want have there. capabilities not tell primarily we but clients versus They They to they digital. digital-only benefit of the front both. true end, And is world-class they're choose you for of both us the go typically is which competitors, Our out point at want the benefit will, digitally focused, the different. recruiter And is every clearly

they want they with to want with internal digital, job passes. and want to AI recruiters, on do we'll and lead they our on do today, better So to job And when systems their lead a and terms and they recruiters, a our they as our expect their choose timetable time want and between up which seamless both. decent when connection a AI

capability, new our happy We're this go to website, roberthalf.com. about

today, recruiters we can you X our and for anybody, rate You to how doing, candidate. search stars, have and that that see in X we so you specifications system, star those a show will candidates matches in who will

David Silver

the there's that trend happening perm sequentially and operations? continued of Got and while over out noticed temp staffing Is has project-based particular, call leading contract it. you whatnot, one I But risen couple the perm have there and your too relative in would last that from in versus the quarters of decline. really strength side describe maybe often with haven't temp. perm explain staffing my actually your anything with last divergence, to or And where brief revenues trend, sequentially, temp just models to And I and one. a guess, your just then maybe

M. Waddell

quarters. so And the then XXXX, similar I'm sitting quarter. stronger. second X here was And looking pretty during they every at in the were quarter XXXX, And last

say a up even a would was rise sequential them quarter is normal for that though second for The for sequentially, I it quarter always And was seasonal perm. stronger reasons. still seasonally

seasonality. would in I similar. differential they're second to attribute typical And other the so And pretty than the that, quarter

Operator

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

Mark Marcon

follow-up answered. My was

M. Waddell

was much. That very our Okay. Thank us you last question. Thank joining you for today.

Operator

Thank teleconference. you. today's This concludes

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

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

Robert Half International (RHI) 24 Jul 242024 Q2 Earnings call transcript