RHI - Earnings call transcript Q3 2024 | Robert Half International Inc.

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Operator

Hello, and welcome to the Robert Half Third Quarter 2024 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

our uncertainties the release and materially statements. forward-looking statements from that are recent are in call. cause press could most and today's described they in XX-Q on made no However, the risks actual and subject and the We These to today's SEC. the uncertainties obligation filed results differ XX-K risks to update to with 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, exceeded which compared last the expectations, an third strong Net billion, the revenue X% on per the $X.XXX as-adjusted quarter quarter of basis down to quarter company-wide as-reported in $X.XX share quarter one third by an quarter ago. driven year's income gains. revenues were and posted Protiviti, sequential $X.XX earnings and the results third third from Revenues very and for For from was third year basis. X% down in our on year-on-year

to results, improving, levels is which beginning sequential While weeks. and by decision of client confidence This most rate-cutting extended, progress are past global for cycle. the stable our been reflected recent aided budgets on remain and XX consistent and a constrained XX continuing have business in inflation weekly the cycles

well and in prospects our of confident, climate positioned per our brand, be a staffing of a million. our million. to flow weather emerging operations future industry-leading both to business and distributed initiatives on remain that landscape support shareholders dividend both the from total clients' was unique as growth to our cash to model opportunities with and business improves. technology current ability We growth during strength outlay macro continue $X.XX capitalize consulting We the share in includes for the the and professional cash we of $XX people, $XXX September record our quarter services. Cash In

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

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

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

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

Michael Buckley

and you, hello, Thank everyone. Keith,

of to minimis same currency specialization, during fluctuations ago. adjusted increased exchange Talent the mix one X.X% revenues days Solutions functional by year second the third and compared days Talent revenues were as-adjusted for were down quarter quarter were third billing third $XXX X.X%. million, to ago, Keith XX XX.X $XXX In revenues the XX% had rates and the the Solutions quarter, conduct for Talent quarter. the third As compared changes We Talent noted, during billing global quarter the XX% has quarter for was fourth days the This rate down quarter quarter. the operations $X.XXX million, quarter currency on other rate XXXX. country. down countries. Solutions through year-over-year. quarter third prior in compared revenues the Contract Solutions there Solutions XX.X offices one in XX.X also in billing States were a days The The of XXXX XX.X third United reported Talent revenues an U.S. Non-U.S. billion from year-over-year. in de of revenues. to fourth bill year's were XX% billing basis, year On impact

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

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

Our the applicable third revenues XX.X% the gross margin, and Talent combined of When XX.X% quarter for consolidated Solutions were permanent Solutions quarter both of revenues Talent Talent gross current overall was contract in XX.X% year. placement compared XXXX. quarter margin the with last Solutions to third of revenues in

just the for the SG&A investment compared to XX.X% third investment ago. XX.X% just XX.X% compared XX.X% were Protiviti year ended margin compensation the to one global for amount the ago. to XX.X% Solutions compared third the by same of costs costs Talent revenues XX.X% quarter offset, year the quarter to the offset, third quarter SG&A deferred ] XX.X% compensation Solutions the year. Talent just for in gross XX.X% ended XX.X% offset deferred costs of related SG&A deferred income compared compensation quarter that quarter for Adjusted were revenues of completely last the offset, SG&A year. last For were were XXXX. compensation XX.X% Talent in employee income for [ for was revenues costs last year. deferred in Enterprise versus investment Protiviti income income Protiviti gross ended to or of the was of Protiviti, to of quarter XX.X% quarter Adjusted Solutions deferred one is compared for Adjusted compensation investment trusts XX.X% Enterprise in the margin revenues

compared income third for $XX XX.X% X.X%. year. Operating $XX last in was same SG&A quarter deferred ] million compensation [ Adjusted for for segment was the Combining offset, combined quarter. for Protiviti was segment the quarter income to revenues income the the costs of million. Third margin quarter of investment revenues Protiviti were XX.X%

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

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

on income. no net As effect has such, our reported it

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

to $X.XX XX% provide Segment review XX% for XX% to two the that in Permanent insight three were were XX%. to versus period revenues the of an prior XX%; XX%, overall, XX% and XX% SEC X% XXXX. Contract we the third to offset September of in full the $XXX XX% on investment compared XX%; rate, the press compared ]. exited in as-adjusted to you X%. we saw assumptions XX%, a Talent the Solutions quarter monthly $XX full X%. some to The in capital October, the move estimates SG&A into the with Talent decrease are as revenue have X% down on deferred basis. [ for quarter mind, XXXX. We information Solutions, million to weeks on October for year million major X% XX% compensation X%; our we placement quarter. income third The of are saw Protiviti, income $XXX we Talent into the Revenues the income compared $XX offset, this deferred X%, as-adjusted year-over-year down to compensation a into you XX% Contract XX%, billion; these are down versus know, period period brief capitalized XX% and risks that. same XX% Talent filings. shares midpoint as million basis, the this for the Protiviti, revenues XX% $X.XX Contract in expenditures to of far same placement Talent, the to and very Revenue, an decrease income so to XX% to adjusted million in to X% lower But quarter up that to investment we $X.XX Solutions first of XXXX for to estimates let's down fourth revenues much as and overall, reading trends [indiscernible] to XX% to margin the growth trends to to on for too and billing overall, million. Protiviti, to during weeks financial periods. costs were compares overall, follows. Revenue XX%; than revenues $XX X% so share, quarter. With for year. of midpoint underlying in down last down Before Tax all the basis some This XX% XX%. fourth X% to adjusted fourth September a currency are in in Solutions, guidance: to the up quarter X% of Protiviti following to quarter. today's computing as-adjusted call subject September with permanent of XXXX guidance, time offer percentage third October, for same provide revenues a October. percentage these million $XX quarter All billion cloud release to We billion per caution $X.XX $X.XX. the the

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

M. Waddell

Thank you, Mike.

and accelerates, at the for macro revisions overall get resources consulting creates demand churn are gains and the reprioritized elections. Many elections, for stage backlogs environment in and economists returns, the all-time U.S. client unemployment demand up cycles. are stretched the thin the part should hiring still averages with making Although is early labor forecasts. to That that normalizes. The are This upward pent-up remain and positions further rate has the indicating sales Optimism tightness a for Index months. finance lower college many is degree somewhat, above the been of Small accounting, while demand eased of supply NFIB's cuts. index ] in over lower due for uncertainty pressure in highs to as even openings of sets past with urgency that and deferred NFIB's puts the improve already expectations still are with last those their labor cycles improves, strong Business begin has the as project IT growth traditionally growth part confidence often the X rate talent, very initiatives hiring the widespread And substantial and upcoming historical [ said, on X rates elongated, for business in-demand States X.X% only we significantly United job us inflation to

participation our prospects growing solutions We the We've directly increasing regulatory in reported Talent our demographics proprietary audit peaks. strategy strong similar invest clients. revenue growth technology to points achieve income strong play of Protiviti's basis and areas total continue each enterprise-wide sequentially value solutions preference expectations, hours our into innovation in by Solutions. Aging Protiviti, we of business. service collaboration clients. broad continued margin in core which internal on Talent fuel offers represent for fourth very and time performed last quarter, quarter award-winning than the Each results leverage exceeded includes This significant for of client more the and well, Protiviti the key management. over for and reflecting AI to resources to major strengths. solutions plus emerging the resource revenue to remain its our with both competitive very and weathered expect higher advantage. and financial with the ongoing growth sequential year-on-year and of growth. XXX its achieving with pipeline across a risk and segment many cycles year-over-year XX% particularly and economic recruiters compliance and the quarter added billed Solutions contractors industry workforce our industries flexible growing part efficient of Gross top past,

more even of our positions portfolio about are talent and as well solutions future confidence returns. services We as unique market confident our as consulting

and our subject industry-leading the As continue technology, they need connect our people meaningful confidently ability our and work historically, talent business provide and with model we've to clients and in our expertise grow. done to the we invest to to compete matter to brand unique people, our strengthen

Care services, thank a Companies and by to best one our globe, one one whose like number possible professional the efforts Best Robert People's that of Half Finally, in new World's we'd people made of most accolades, workplaces was Employers and across recently. of of have consulting Forbes. named Fortune's the

Interactive recent Awards Visual mobile Half Arts received made WX of highlighting innovation. for commitment app our We ongoing and Robert to enhancements our to Academy also five prestigious

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

Operator

Andrew Our from Instructions] first comes Steinerman with question [Operator JPMorgan.

Andrew Steinerman

Keith, U.S. in few orders Half? particularly surveyed surely, at about business times, I recent up talk weeks Have your at and new more picked Robert staffing generally. contract confidence you heard a clients for

M. Waddell

Well, we've that weeks, said very longest consistent we've years. the for last weekly flatness and the and that's in consecutive we've stable had last results XX two had period the of

which duration say, seen, the was better it's week-on-week been. been, And modest. so has given is yes, nice month-over-month. see of drifting it's the it better where it than that again, it's that, flatness I that's But we've down would than and to

Andrew Steinerman

area contract you your business will staffing one which contract Or will do it think is rebound together? think of you sooner? professional And rebound

M. Waddell

now, skilled continue. relative trend our look you would piece that, and that would at if Well, are somewhat resources that our Robert better Technology, management it'd be I the of expectation at our Half business doing say higher higher

Operator

next W. with Marcon Our Baird. Mark from question Robert comes

Mark Marcon

but acceleration easier like about acceleration Internationally, Wondering, went bit the a the Protiviti? XX.X% they nice would take to growth about we quarter. the the a talk the And basically sounds bit really growth. more U.S. not you little at X.X% X.X% see Protiviti, in for we to quarter, we're negative to going saw look the third little X.X%. a little from guidance a comps third relative negative some bit that quarter It from went revenue fourth if are were can to we suggest actually than you

you're So why on see the what internal compliance, including commentary side? the in terms of I'm audit particularly on risk that financial wouldn't wondering, given seeing, services all and the Protiviti continued positives acceleration and we're the we doing

M. Waddell

take off. shortest uncertain, have a large rate, the is projects top choice Talent off. quarter, take of the lot quarter. that of soft are down you than Their answer the little full-time that always that the They they in estimated of see winding through even fourth clients their conservatively and impact but the very wind principally the a of and wind-down close So on it's Christmas down the Protiviti and impact Solutions, holiday more simple. couple a a of has pace go week so staff a entire time is

due combination the solution have winding more recent think It's replace takes their very major areas. so pipeline couple areas. upbeat. I been in the optimistic build certainly They're a solution their wind the their projects you've bit positive, breadth always hasn't solid. because is up they're for It of in a that that of but can't it's time, are very They I in part little mean, projects And very down of of backlog. not the very shorter strength that [ holidays, a to down. of of Protiviti ] past, all a that strong to quarter got those and a

AML, start As backlog and we've up very other. by projects. do XXXX some and you'd said, the so bit think quite that, -- numbers. to noise complete need are they They've for Protiviti little one to of laundering internal financial got the have require led be with they optimistic. a projects wind which very large down audit projects regulators I other anti-money understaffed plans, they the typical pleased services, this there's But and relative to Many what of their

Mark Marcon

a that's made or to that at of having go mean gain an the should U.S. heard more impact just the should year next We've like Big just seem being seems like as X. growth that's deny think into have investments we you're confirm relative perhaps the of then having we how about share bit you've and some other Big margins that, it to and there? but that to on stay Protiviti It could competing doesn't you think price. if you, from given I'm half overcapacity on first impact the the of about X.X%, players on I how any and with And some continuing Protiviti, we sort wondering X the little are

M. Waddell

new. competition X of Again, not certainly generally. anything, that from as It the management price some and/or is acute If resources Big overcapacity during leveled the off. the get more period didn't to

done has I excellent an think Protiviti job.

XXX their on basis. accretion, that margin a sequential basis gross another points in see You

for contractors. But growth other at the And think so held have fewer you've some revenues using And hoarding. the they and also up line, But that that time, intersegment level, the you contractors. rates a at what grew their line call staff. by grew have attrition they internal staff, in contractor usage, overall some bit see that their significantly full-time much you'll XX.X%. but at contractors, added capacity like their reduced use with they that to Protiviti, resource reduce cut the it and is Protiviti X.X% companies on as was high in fact, generally their softened hand, significantly pretty demand ] back look year-on-year, Since at good which such things many looked the post-COVID, improved that they XX% instructive the is the the I news, staffed when half, quarter, [ if their

there hoarding whether level now point cost-cutting your they think even to staff, full any think people contractors, I when I contractors. those for shows back. And upside line or X% believe X% because and if those they're they're contractors first in or up upside my conflict that which case, were But overall, the they've yet full-time added though is study, somehow down you industry-wide X%. X% will, it's there's to many of at back because -- Protiviti is nonfarm in is add who've temporary the is of first between holding instructive that health higher add case So there's on they in COVID, times if reduced mode, fact, plenty a reduced you it that are contractors, true frankly that payrolls look post

have better, our funded full as restoring that in our in because with times", in has though situation that with been contractors and fewer upside would "Hoarded generally contractors capacity-constrained their argue things they're past. I it the get they part, clients So is even a just as their

Operator

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

Princy Thomas

I Thomas are seeing anything temp is Princy This risk AI Gen positions around tests? on for Manav. the and see, to a wanted of and you these finance lot from accounting fulfilling

M. Waddell

very short currently The AI. we're relates little as Gen to answer seeing it is

As I we those we've our bookkeeping, aggregate. all from point, such cycles effectively automated we've all comparison more talked the of all pales to we of there Gen that seen of in of calls, have about, in significant to to And also where about manual went and and we even what virtually through were individually, the think past, smallest finance, preparation, relative each impact grew on clients, you tax today, I talked and areas starting in that accounting have of technology prior AI otherwise. payroll, automated automation of which in much when systems mentioned the to grew more the ERP, been those through spreadsheets many much cycles accounting impactful was the

Princy Thomas

from shifts client terms have seeing further are of around for opportunities? clients? roles in Are office reinforcing hybrid that any hiring to remote from you impacting you then still seen return And demand and headlines mandate,

M. Waddell

and those level, clearly to higher their alive otherwise is level, the to demand on levels, their for commute clients for premium much people have very and site. and but at at compensate hybrid remote on-site. come very their by But out-of-pocket well and still operational skill I'd they transactional roles time, Frankly, at operational there parking, hybrid preference say for on more at more higher pay transactional site. costs the it's work for remote a to there's skills, a is

Operator

question comes ] the with Trevor line Romeo Your next [ of Blair. from William

Unknown Analyst

the election. a one, question First had just two-part on I

you I uncertainty in of the some think prepared mentioned your remarks.

change seen what then wondering administration. the wondering that your uncertainty just we side, clients side, in are telling you on-demand past the it? And I could about now with was move of Solutions on Protiviti in if just that decreases Talent conversations the increases any demand you've how historically change On from or and impact as a

potentially people For that the changes, example, demand risk the compliance manage if for and regulatory internal practices to or change? that could expect regulatory audit drive

M. Waddell

to more I'd quickly you any than impacted. it's quite if that's uncertainty extent at will. the wouldn't financial outcome other. a regulation, is say a on the we Solutions. Protiviti, different as election emphasized get not passed. And something other outcome side having just to position but the There's not regulation Talent lesser And significantly it greater side is on frankly, think laundering about the that's Talent that or usually least But clearly I Solutions immediately the or or event, more one particularly past and be more impact. or services anxiety, in one had other it's the anti-money or the one less issue by particularly expected, something, hopefully, get side, that's

generally is there's But huge impact Protiviti. So a regulation regulation and driver a demand enforcement of clearly, not for expected.

Unknown Analyst

count just the internal levels. ask head to then And I for on wanted follow-up,

about meaningful still if say. recruiter demand in the right uptick is or think adding quarter, year, to range XX- a grow you percent heads. think I Is that could rebound? And line considering it your going line you without count? last next anything, then still on XX-plus we you change demand the about high, would said kind a of macro in top on on if see to uncertainty the into holding take, the let's didn't approach for pretty What

M. Waddell

how based says we're there's Well, advance if standpoint. are. get to ahead they that to no the performance so to productivity much we productivity get individual in how what's performance But an pure XX% headcounts but can't adding from of are we've same that that kind again, of levels it that what we a saw our in [indiscernible] we of we recovery. XX% math backdrop that to years basis, can our good to levels reason and in we prospects. But stand by would be thing on heads when those a we're And as about particularly that back it, manage on we struggling productivity upside, proven ago. would same There's strong we started XX% continue to a a strong had again, given signal on based because the want XX% be bullish than that's higher drive same are. is But economic to would But question expectation just which our backdrop, currently beyond of math. economic also what the that, couple

Operator

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

Tobey Sommer

update your us I could business the in wonder if last you of several government years. book on

today? expanded even you'd that kind us like prospects that you going taper over project of was time the And You you to refresh looks thought though what pandemic. that have that good on vertical. during off, in Could

M. Waddell

state, during was projects, you converted how And that federal We negative that of ongoing for some and to report that And There happen. we those has event that stimulus-related Happy ended, government built concern pandemic didn't we're are We on done we're correct. significant a when to up us in. Sure. the have cliff projects. those would with government level. generally at sectors other into both pleased the relative local

history short to So there would I no argue the we And nothing given have. report. news is major news good

Tobey Sommer

about is own lines and customers trends -- of of business? you're from seeing business, that hearing bill versus rate way tech In what in you're the there other your difference terms in and a of placement staffing the the terms

M. Waddell

And to I this alluded earlier.

the and F&A we look And of a are we're to rates so data, And some And software and better, and infrastructure this you'll strength. reasons. we growth seeing cloud, applications, you seeing and administrative, if end result quarter, were software more on little high in at is what was see those it on operational so a our tech, security, and and technology when the privacy, we between end. and compared think the strength split of operations applications directly

Operator

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

Keen Fai Tong

seeing Can you are collar that discuss with you're earlier trends any there? white sequential you slowdown And of you stable. weekly mentioned sort know noticing were that if trends hiring. I broader

to you're second are trying hiring trends And guide? white any derivative what if XQ So see assuming changes. then collar you in seeing your

M. Waddell

so is collar that white we everything. is all given Well, do collar, white

period we stability of we or flatness. said As longest the that now have

we consecutive last have flatness that otherwise been two and sequentially. the the of down duration We over seen which kind haven't of XX years, drifting we've weeks was period

So the trend is the than referenced. better it's we And white collar seeing. been we a trend that trend had overall

out, have more it's or than start it's than long somewhere. time, X it's week We weeks. You it's X flattened weeks, two, to a a more or X or straight XX

we're get given So out optimism optimistic. time. for quickly, And election we're encouraged we relatively through that of that we NFIB uncertainty index that we've flattened period the the improvements see from given hope the

as even guidance. more that flatness we've I we're into our described, guidance, than conservative that that though as our built what's Now far got in

their We they're clients stickier on get always placement of the budget, their the in quarter. candidates going Perm for to a hopes a also have kind because low single-digit holiday, not hiring through even on uncertainty. are go run down lot of displace that they're There's waiting Clients they included holiday, sequential around quarter. one. for fourth bonus only in

in the than always the in for weeks that that other notice direction, there's much better is the further full volatility few after ended principal time. But demonstrates first cycles. prior the we the quarter perm, short volatility of compare it over particularly profitability periods a standpoint, issue put it's to to we a how perspective, from guidance short we're quarter. has our for doing perm us, the all But and go to only which more quarter you'll today So come for

And down time. Financial so was for were Solutions. quarters, crisis XX talked margins for trough but as margins And of about steeper that dot-com quarters, period during X.X%. during had period was we've Talent X trough dot-com, the but it shorter X.X% in sequential we about. steeper, crisis, Similarly, financial

improve, of for composition guidance you more X% X prior We're to real believe, the reduced of, we this. situation a on little cycle. prospects far, But you capacity that your of such quarters they're cycles. negative they're The the Virtually of because businesses because company more approve that before this your full-time our the that always described, X.X%. cumulative have two are the pressure will focus similar. But as the on interestingly, sequential at will a very cycle, of kind us, And for down a to a our QX, but SG&A this need good less So to path are clients during I But if isn't going we're every what view that trough constrained perm trough contractors is their standpoint, at down They're out than look of margins? least different, coming example as last mix addition time. And contractors full of resistance little of I the right more the quickly they is Protiviti a back how inflation hire if resources. into midpoint entire talent. contractors. than cycle from margin versus in over instead, gave their

that the financial in Trough margins. what upside, focus margin cycles on the trough on XX.X% XX.X% the became are trough in margins past. bullish on by remain way, X.X% they've dot-com, what on upside, this we notwithstanding upside. that And of our very been X.X% consistent So the crisis came

macro Talent get margins as improves. operating optimistic as Solutions we'll double-digit to back ever as the So we're in

Keen Fai Tong

And line of thought continuing the margins. on

factors XQ seasonality, to may of be discuss can the operating down causing step at from compared the that margins in you midpoint to XQ? Aside some

M. Waddell

Well, it's shorter the all about quarter.

least leverage X.X don't your you fixed so cost because at And it's shorter. days

all But margins about, just lose fourth more in short days. of close, about recovery. the that's one of in like Protiviti's, on the X.X as talked what upside we forgotten which piece in this says, because quarter than its again, client But saw cycle, quickly focus the quarter. get you it's As they look a trough history

Operator

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

Stephanie Benjamin Moore

And came I the was questions of kind a ability standpoint that actually very of one, you importantly, appreciate it think your step last answered comparing thorough. But to two. the of further, in taking I five that reach this you as probably out cycle from to my a guess, margin really color highs the prior cycle. I new so

about you bit to little you you a those again, margin, double-digit could essentially give what from high you and in you place today examples about confidence the recovery prior drivers more maybe back get but to, the importantly, maybe have standpoint reach this that cycle, operating As that gave? that think compared that new the margin talk a on

M. Waddell

cost strides from lever to they've sequentially all leverage and we reduced the tools fixed first the capacity We to to revenues pace productivity from producers. participate; our B, we've have wanted better improving the count at standpoint downside. at had, a because that We've foremost, continues speak. technology had ever a than recruiter as which given we to we the top of on extent upside, standpoint because staff, made Well, the declined our head the significant and improve negative did retained haven't we least on same our we've

well I if have steps, that Protiviti end very have extremely together, improvement is across our we audit, retrace no the broadly X, that than we we've we internal its you solution upside from well, positioned taking in package will, technology, you sight, argue reverses, performing ever share compliance, would put regulatory more areas, had. as Big process So business that

Stephanie Benjamin Moore

then And front. to the switching margin gears maybe gross

held as trended has pricing in well ] well. well you've and [ think the pretty very I

that? margin can seeing talk suggest potential little you're pressure the could So any you bit anything about that for or here a maybe gross that

M. Waddell

is to on get margin And do skill than to gross the higher even positions margin we our move positions. we've skilled biggest a which there's a And higher, curve, do. alone. continue we And higher we that believe gross I years been therefore, mix. we I on skill mix gross operational on expect think journey upside many to up for for take this upside on margin mix as

Operator

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

Unknown Analyst

Does EPS [indiscernible] from today's restructuring This quarter, report number account on actual expenses to so, McVeigh. structuring in is and Last guided related Mark for QX. you Kevin if restructuring? to impact was the $X.XX what to in Protiviti their

M. Waddell

provision. impact $X.XX forecast, it's in be. And and you it's of right $X.X it tax the thought million embedded, SG&A, that So exactly it we what $X.X embedded guidance. our we was the to It would and gets was it's in million

we what converted an operation difference it's it from because our independently to to China-owned firm. owned no So to Mainland guided relates there's we as that. member And

Operator

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

Mark Marcon

I just had a quick follow-up.

and about the you impact of this the if impacts fourth to sequential QX of patterns normal very Three to as You're QX? first how should was quarter. people going margin for quarter. some the quarter remind margin from the it be just seasonal wanted about just talking I think clear about people kind months kind we'll now, to relates from the of And wondering first

M. Waddell

perm, fourth for the it on typically basis, step-up comparing in shorter, and to typically, quarter, more a because you're has pretty in the volatile that is say, I'd perm mid-single-digit quarter contract a first flat seasonally same-day the first reason. quarter

scene, right? holiday you days. days, pick same-day about have those So the but more You contract up

have and have So days day, you per whereas more overall, same you days more and in per you perm, day. more get

Mark Marcon

Anything on seen years. be to the then last pattern? time Protiviti, typical pattern over few that relative we've around And different that would the this

M. Waddell

We've thing. through remember, and too, pattern all prior a that again, is in because Protiviti, raises does discussed crowded per same-day X. from on seasonal that standpoint, January their audit in seasonal basis. effective step Protiviti mid-single clients And on out by that's their audit, digits quarters a day down increase it's compensation a Well, we've gets profitability their focusing there's a internal typically external gone

costs the So go the seasonally, talked and revenues double in impact, a day you sequentially all down about. the I up go reasons have where for one

Protiviti's had quarter third to profitability margins QX lowest a Protiviti profitability the but that from double-digit in quarter. is so report happy And standpoint, operating

can't back there. Big and to enough of see a resource how level manage base, that So it's contractor they base, it's I X their about high them that base, that managing have they to contractor bullet by mean well don't nice their that. the effectively relative have keeping I say full-time very employees

effectively very their they resources. managed have So

those row. basis margins XXX gross at a up look Just points sequentially two quarters in

Michael Buckley

XXX.X. second so of year, them, just for for quarter, XX.X; Mark, And total XX.X; by the you quarter, XX.X; fourth next third have quarter, that quarter, quarter, a XX.X, first days

M. Waddell

So for Thank our joining question. today. all you was last that us

long. So

Operator

today's concludes teleconference. This

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

call the company's The can into contained also press the in [ release You look issued details replay. conference ] are earlier today.

Robert Half International (RHI) 22 Oct 242024 Q3 Earnings call transcript