RHI - Earnings call transcript Q4 2024 | Robert Half International Inc.

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Operator

Hello, and welcome to the Robert Half Fourth 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. 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, schedule these measures press of this measures these may "as to financial release. included further non-GAAP and figures a in our explanations During are reference earnings supplemental mention adjusted." we some as reconciliations and

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

line the fourth quarter compared earnings second the quarter X% share $X.XX X% were and year as-adjusted were of by for which expectations, fourth and our revenues $X.XX ago. revenue to largely Revenues down one Net XXXX, quarter on enterprise growth year's For was for quarter an the led basis on per income last the quarter the basis. from fourth as-reported in global in Protiviti, down with in year-on-year fourth reported an billion, straight $X.XXX fourth quarter.

sustaining throughout early prior for quarter, quarter stable the consecutive remained to the revenues Contract weeks third XX holidays. levels

We're the our business opportunities and and our model capitalize unique that both followed talent staffing significant consulting support we're very encouraged people, services. and elections. the confidence in industry-leading the business clients' needs rise U.S. year, new As technology, recent to and business of includes through consulting on well that positioned into professional strength brand, very we move emerging the by

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

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

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

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

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

Michael Buckley

Hello, Thank you, Keith. everyone.

$XXX As Keith down talent basis, quarter. U.S. down prior in XX% On States talent $X.XXX million, fourth from quarter. fourth solutions were conduct in talent revenues fourth the operations global We XX% other talent noted, $XXX through were solutions revenues year-over-year. year's were an revenues the and were as-adjusted revenues opposites quarter down solutions Non-U.S. million, United XX% countries. billion year-over-year. XX solutions the

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

The first for compared XX.X days the had quarter days a days billing total quarters XX.X billing XXX.X million, quarter and for of XX.X remaining during to days XX.X the XXXX. year. of first of Billing for billing will XXXX the million be XXXX XX.X million three of

quarter was third and adjusted million, fourth quarter mix the X.X% Sequential for dual decreasing and total $X Contract fluctuations had for million by ago, the revenues that's fourth revenues currency the reported Currency during rates by reduced for $X in million, amount changes million and Protiviti. the effect currency of for solutions exchange talent rate movements negligible specialization, solutions talent rate increased for quarter year compared a to country. Protiviti. for $X for of This and by functional revenues one X.X%. solutions talent $X the year-over-year million quarter $X

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

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

in XX.X% of revenues gross placement quarter fourth revenues of combined fourth ago. overall solutions revenues margins, When margin for compared gross XXXX. one current year Our quarter was solutions consolidated solutions talent the XX.X% with to applicable talent were both XX.X% talent permanent quarter the in of and the contract

deferred with the XX.X% deferred of was deferred Protiviti to one revenues the investment ended for of gross related For Protiviti XX.X% contractors, Protiviti compared up and prior employees last income trusts XX,XXX quarter year compensation by to investment from was completely Protiviti, is to for that gross full-time Protiviti just the We margin offset the for year. amount XX.X% X.X% XX.X% offset, for income compensation ago. Adjusted year. compared employee compensation margin ended XXXX of revenues

XX.X% solutions the versus were the one investment XX.X% compensation of compared quarter for the quarter prior division, SG&A deferred XX.X% to SG&A. X.X% fourth same enterprise talent to in deferred the of quarter the from We quarter quarter year. XX.X% fourth the the global SG&A SG&A offset, ended on just Talent Adjusted investment ago. XX.X% with XX.X% Moving year one costs full-time compensation compared were were Enterprise our Adjusted fourth just year. revenues talent for for down income ended SG&A last for to offset, XXXX in compared income year to were in solutions internal quarter the ago. costs XX.X% XXXX. of solutions costs employees talent in ended revenues in XX.X% solutions the costs X,XXX

compared in for the were revenues deferred quarter segment segment revenues the the with a income Protiviti productivity talent divisions margin was X.X%. was Operating quarter of our $XX income income fourth for million, for Adjusted costs million. income quarter solutions XX.X% Fourth Combined segment to of segment year from million, $XX the a of in million Segment margin income fourth compensation SG&A one investment segment X.X%. was for $XX same offset, of quarter quarter. $XX combined XX.X% ago. X.X%. was quarter was Fourth margin Protiviti for the with

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

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

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

of January, billing weeks to first let's review some fourth last with all XX% we the same the quarter Revenues to quarter. down December monthly the currency in XX% first compared versus solutions far period the XX% for full adjusted quarter prior compared to the for January quarter move three were of a trends we days. revenues guidance, contract year. saw for talent and Before fourth exited the the so revenue in and decrease down year

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

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

With midpoint revenue year-over-year X%. $X.XX. mind, Midpoint are overall, down per billion; revenues, of guidance: X% basis. revenues quarter $X.XX than same an to major down on in in estimates basis, X% billion we first XX%; an to Protiviti, financial XXXX to XX%; of following $X.X that these underlying $X.XX assumptions share, X% up lower the as are as-adjusted X% offer the on period solutions, down follows: growth income $X.XX billion to The talent as-adjusted to the

margin SG&A Protiviti, to deferred a of as solutions, talent XX% compensation offsets: revenues, to contract for deferred investment offset, compensation the to XX%; for overall, XX%; XX% adjusted talent, adjusted to XX% XX%; XX% as to XX%; Contract investment income income percentage overall, XX%. to XX%. for percentages Protiviti, the XX% XX%

X%; X% for X% X%; X% X%. to to talent Protiviti, solutions, income to Segment overall,

million, Our with $XX rate, cloud $XX range quarter. a XX%; $XX to XXX XXX $XX and expenditures million to tax of shares, capital million XX% the million. to million computing first in million costs to capitalized XXXX

percentage points, in which sequential X- X. midpoint-estimated guidance of the all seasonal is the first to with This in consistent includes fully increase, and of decline years. segment Protiviti's last a promotions experienced of become annual compensation segment most margin X.X staff quarter X-point decline of on January effective income produces the which impact XX

midpoint, at filings. provide this and first today's Protiviti's quarter estimates basis, are and our press XX%, a call On we year-over-year revenues X% to subject mentioned by in release All are expected the grow on respectively. and risks to in the SEC earnings

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

M. Waddell

clear labor openings substantial for Mike. you, averages, resilient, indicator Global Thank talents. markets demand job pent-up of significantly remain above historical U.S. a with

accounting, graduates the with only for While lower in IT the rate a finance the X.X%, United at skills. slight even we've labor seen with States college tightness supply, of stands easing unemployment and those in the overall in-demand rates and

the Index recently posted the growth demand owners of hiring conducive history, X-month also its The business reaching reprioritization X seen of economy confidence to increase and percent Optimism The XX-year to improve is XX%, years. in largest NFIB's XXXX. deferred initiatives. Business accelerated levels the than more Small Rising to in not urgency, better rose project since highest expecting

conditions stages hiring creates turn, for the set growth robust generate and in pressure historically of that client consulting gains on have in early and resources demand, stage cycles. the significant This,

periods low We similar current which even business downturns. each from the recovery great openings, strong are more and than dot-com unemployment favorable of elevated job is financial encouraged and combination following by metrics the crisis early the confidence, of

risk significant key enterprise-wide sourced solution, and contract component to for Protiviti's of year-over-year a very of contributor through regulatory broad-based our solutions, major solution A use been includes the for with reported quarter second strength revenue a standout its growth quarter of achieving compliance talent each the the again professionals results in advantage. performer. areas, a This has competitive again, once row. is and Protiviti the expanded strong success

come. a pipeline for year-on-year recognized was and and very Work Company list Women. achieve are on for Executive costs variable propel workforce prospects Places structural past, as each to to continued clients' quarter. us Top many first a honored economic to Protiviti's weathered in Best revenue We've and to that and higher year resources Glassdoor's in tailwinds emerging we peaks. demographics expected and flexible Seramount the strong, Aging growth remain the desire time cycles in the forward consecutive Protiviti for by second years are recently expect

We begin with connect time-tested need and they XXXX and to to and consulting grow. energized work, purpose: the talent people clients corporate expertise by confidently our and to compete exciting provide meaningful

a our Finally, accolades. extend we'd our like for gratitude global number to of new workforce making to possible

as Admired our honored the this consecutive Responsible Half We nearly as America's named Companies. the one was awarded distinction chosen of Most year. proud only position by the unique were Robert Parents also be for World's one today, to industry by for our Workplaces recently Just Newsweek Fortune's XXth Companies decades. Fortune one of X as and in Best for Most of of We're company

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

Operator

our question first from with Mark Marcon today Baird. comes And Instructions] [Operator

Mark Marcon

to margins the ask you to How X%, a a up is the timing for I'm probably Clearly, the wanted around pickup. some significant seeing? guiding quarter, nice And the impacting first of about regards little you're quarter. just a to wondering, with which growth impact, that? I up reacceleration. is did that start. FX visible But and midpoint slight basically probably are bit. what ended the that's a a holidays Because We have ended revenue Protiviti in and to the fourth deceleration having

M. Waddell

solution logistics true is Their closes. took soft impact. that of a had holidays from So said, quarter. And and to holidays contracts momentum client impacted They had holidays the that for on an larger-than-expected to ability It the continue is expected. further, their broad, impact revenue the holiday strong. than expected their the first was the into of before signed get the That was end the it fourth the quarter, had and they more growth recognition staff quarter.

increases cost Whereas, and and on promotions. annual the of they clients a have pressures crowd quarter first audit external audit, basis, sequential always focused on their their out of compensation with internal

are, So there anti-money holidays, good before, piece impact consulting. as and first we've momentum, And feels clearly where like they a about led very strong good from pipeline, laundering, very noise that, it about by guidance. was Protiviti fourth. very big talked good the the quarter, risk doesn't of did that A which fourth quarter the the feels

Mark Marcon

different? Obviously, bit and still businesses, happen that's been we've hiring a I'm of do great both be the gets NFIB picking could much has business then, what you Keith, is not displacement. think but a picking people lot noise terms many through the potential as sure in news before. going And attention wondering there. talk I'm lot AI potentially cycles up about it with small precursor to of up. to a a little as Historically, of out small is

think in you're And terms and relative in for short is margins of confidence? this would little how to that And term you're what making different retain influencing internal internal up willing pickup staff? that big you it Just longer be to in of anything is terms bit that around doing how wondering, the much term? time staff there NFIB driving but a the lower

M. Waddell

as and look currently referenced, financial if you recovery. $X and so they what's we first, $X if job crisis, are that great million million. million, early across and dot-com look you different, Well, $X.X were at openings at

double recoveries rate as at openings So Unemployment began. X.X%. what than more were they those currently

If X.X%. you look at dot-com,

financial If you crisis, look great X.X%. at

own their did they prior in to tighter, much making cycles. find on So much for talent than harder clients labor, it

we're by as XXX%. you NFIB, And optimism. currently So that. then SMB encouraged mentioned,

great crisis, financial was Following it XX%.

was Following dot-com, XX%. it

all we downturns. X better so two on place were a And measures, in those we're than out coming of

the to talked business, impact we're and we've on as for seeing before, as that. SMBs of staff, internal impact for essentially impact otherwise. performance to plan our we've we And or with But on As several would line. any held we to not AI, now, continue management meaningful quarters speak

thereafter, Our very And margins of dot-com again. significantly great crisis. we expect those consistent would which trough with financial margins are recovered happen and to margins

Operator

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

Andrew Steinerman

questions. Keith, X

clear, kind intrigued So for confidence? you NFIB be picking up yet? contract just business wanted there yes, But Or to obviously, the especially figures I down, some delay picked about new you January orders Robert up. by revenues do to expect I'm of as business contract have NFIB the being talked Half be from

than question, let that IT me or confidence think growth up, will trajectory? F&A Half. When contract a too. Half you second or And ask was revenues, others. down at of just Robert looking different be revenues when then the business picks contract my Again, within revenue tech F&A overall a business lot trajectory recovery for your Do less Robert contract

M. Waddell

holiday. first holiday two as noisy with And so early the well were January, Jimmy impacts the Carter very as

about are definitely expected, our meetings. The would is calls, request third week better, early to more they're of client have it's tone their are addition and is still in about talking of clients placements. conversations which we projects talking our for to And in must-have talking better, January and for picked their more like-to-have actual Sentiment clearly taking requirements, in starts what good. also needs. their but while an the backlog back -- of about They're uptick up too

relative during did we're is at that is there first tone quarter the about guidance, million or the number that Our $XX the say impact that to the in for question we about currency year. that I'll there's stay there. impacts our we But fewer days this, the rise better, flat just also the quarter from prior level that conservative and revenue And being first consistent Hopefully, quarter. FX of the assumes we talked with Andrew, guidance confidence fourth no about. a

the when guidance, days have look but had our guidance number currency and at -- so you our higher. not for And we $XX been of changed, million had same had revenue would

tech in it Microsoft. be Workday, it has side, SAP, data then it tech in it be analytics, modernization, better true ERP be principally platform that hygiene; it governance, be Oracle, lately, area, is the On the performed and

the been together. have those and positive, both on working side, of solutions side sometimes the Protiviti and All on talent

the me wouldn't as so we're said, F&A That And cycle. tech over very well. outperforms next it surprise F&A optimistic if a about bit

Operator

Trevor will William Our come question Blair. from next with Romeo

Trevor Romeo

business business, few one next First again, environment your the just and talent of I was international think, expect of I'm demand the kind the solutions international the had in in you both the, lot I guess, across softer Could with Protiviti? uncertainty what a quarters for compared kind of I just political on Europe. kind U.S. business. board talk thinking And of there? for you'd about

M. Waddell

modestly in as dramatic. everything that But are they surprise us that softer, dramatically these Many both drastic Protiviti. I'd again, economic that, and as the growth rates you of just on But nothing you for dramatic It much hear continue notwithstanding our a results, or see comps not and it's in solutions we falloff international quarters. see softer, don't in are say, changes certainly read. talent a few impacted actual by current performance. wouldn't

Trevor Romeo

Okay. a do impact in the with That's helpful. Protiviti, the that on And I for then know, margins salary you specifically Protiviti. seasonal QX, increases. operating have on follow-up

some year. I the that of typically think you throughout recapture

you of XXXX of pipeline kind year get Is next possible quarter? the year the pretty range beyond back kind here? on there. seemingly for a how talk full double-digit Protiviti about thinking margins So it that kind about to with could Could you're demand about basis we full of strong thinking

M. Waddell

to digits operating they and have revenue operating their is And goal we full by they versus not a a have year their flat. double-digit margin. double, doubles. double stay year, like double, prior growth margins be expectation just would increase Protiviti's where increase double, the that would The stated And

Operator

from come Patnaik will Barclays. with Manav question next The

Manav Patnaik

on they a First, outlook see staffing, you least. Keith, that of -- leading just growth the just at Can should that that kind think guess. there, kind usage your of your staffing, there -- correlation? are I how remind indicator? the Protiviti, improved about is and temp I given we us just user largest of of The the you How think

M. Waddell

Whether would talent Protiviti's can't contractors collaboration, use to. solutions. say speak indicator, the it's I from of leading a I go-to-market,

up just the solutions X.X%. ended, call sourced overall quarter revenues Their XX%. fourth revenues generated from were by through it, For contractors grew, talent Protiviti's

usage is worked well that their It's indicates So that the XX% Protiviti. on not clearly of hours rising, above still following.

collaboration and never enterprise competitive share. And solutions Protiviti growing. from big with particularly and to the continues has So to better clearly, talent which an the been relative is X advantage, Protiviti take

Manav Patnaik

rates, optimism about Got confidence, kind lot I high how engage positive those longer. really the talked it. think as I your of will clients kinds why the But generally didn't of past, you high of the guys. reason around interest business you index like It sounds And be as those because sticking understand being in dynamics. for inflation, of for much a

I a that of optimism So wondering index? tug this just Or that in still has war if factored into been is discussion? was there

M. Waddell

pro-growth So initiatives includes the umbrella tariffs, expectation policy I the think immigration. of rates, of tax regulation,

one a not just has inclusive confidence mentioned, surged I everything way in I in seen think net-net, And decades. it's of big package. the

the factors net all clearly, all so out, But And on which when get you is of are positive. get, them very you what you those table.

just to ground, them. It activity. converted have more willing are day, to yet And starts changed. to to things talk hasn't placements. people every clients talking I There's Clients on the our and their said, more

for Tone We conservative. per But day conservatively our expect first flat quarter. that's clearly But stay better. clearly we guidance that different. things it is are is that Hopefully, the will.

Operator

Stephanie with And we'll from Moore Jefferies. take a question

Harold Antor

Antor Stephanie for This is Harold on Moore.

also you hiring want I said you the to it's to make understand, now. Earlier, I just too line orders. held know on right you early I new sure. bit said So a But receive

recruiters? to guess, from I recruiters? I orders I you expect start start those then guess, in, to up, you to receive I from hiring guess, to be hiring So would ramp guess, would Or ramp as starts then anticipate, incrementally -- you as optimism incremental as up, orders come you just you as when see

M. Waddell

amount starts as today On than lower per said, paper, we by it catch adding paper, grow productivity about rather in would heads. the without more said person On quarters, up. XX% that whole likely That prior placements, and to our wait therefore, XX% to increasing that we've has get been. than get for we we thing confident is ahead the could, of

got know, do we up workforce. could we would. more might more not And the on heads, with the it person steam picked as how to same immediately so we we past, while in the much begin per add done we we've based confident, and But

Harold Antor

of Are candidate guess clients work? same crews the comments they know does to I your hybrid but all Any in? are how are helpful. coming I as when around have pricing jobs? on to be this expect I I with clients, change you've willingness side, do clients, requesting that the spoken they speaking for to high guess you impact -- guess, And remote or start that would degree

M. Waddell

improves. would the -- There's reduces days as candidates in macro employers frustrated candidate observe particularly caution it relates eliminated is pent-up there as turnover current are from hybrid/remote, office. their We in X some somewhat which positions, are in to of question, favor typically no that that

confident to changing first fearful not But be as in one upcycle part traditionally, because And last seems there also candidates years, in, they'll they're high and it so unusually positions particularly a turnover more one means of out. the the the candidate couple given of last point as over work. X of from therefore, remote relates frustration, pent-up view, circumstances potentially to special be

Harold Antor

then, rate on I bill the about Any, growth. pricing guess, bill I point guess, just and we how should that? -- be And growth thinking it. Got

M. Waddell

That pretty mirrors rate quarters. the now a in much Xs been increases. for It's low pay few

we the change in big don't near any future. so see And

now. a to where for low reasonable, mid-Xs few which is feels So been we've quarters

Operator

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

Keen Fai Tong

Can in in staffing this perm placement? decline, revenues exit on rates performance? the your that could you What's discuss specifically decline. causing on quarter, but the perm rate appears more temp of weighing of temp Based revenues in so than separation are it widening the be are what in rate placement staffing narrowing

M. Waddell

It's December period than We're Well, post-quarter of contract to is more contract time. as more were technically, say, too, the less contract been. And perm day-to-day, week short full the widened and I the for than about perm rate a a significantly. the volatile quarter. I'd think, exit differential talking was both where holiday less week. perm very has impacted

first noise earlier about, would the weeks third lot noise. contract, was has By holiday of our where expected. week, way, talked to We there in gone that we for two the a holiday and it back was have

had conversations we weeks. so should is, those our get we of third-week-only seeing with contract feel shown all than good clients. picture very we where a And it results, different X But about

numbers multiple X of the to you And the a it's quarter they're quarter, over weeks X that if because of contract. perm time. those coming post-quarter even I And you versus be post-quarter periods versus tend than full a holidays, think less is amplified analysis perm such even differences would But less contract predictive a long a see month when you period include an month, short period versus saw time, do of post-quarter predictive.

Keen Fai Tong

well, a Got XX it. yet doing solid weeks. economic sounds are market past We've The bigger seen flat the That's over and helpful. like is pretty question. consecutive contract revenues labor And it growth. then quite

labor the what could about you than markets economy when are can talk contract causing or relatively keeping healthy. is growing and revenues be when rather the flat So growing broader

M. Waddell

last same quarters. statement about said XX could that Well, be the

sectors Half XX XX around for And past in are generally. lot of big of Robert industry than past no are government, a staffing hospitality been the big aren't health industries: the market the quarters. there's different sectors leisure been discussion X care, has labor that that concentrated the weeks growth so And for plenty

you a that picture. get take market, labor you So from overall the away very different

churn middle the over COVID. -- of that churn period significantly the which of Further, reduced time, had has the labor

argue, so So would down, the improvement, of the drifting last seeing. was seeing expectations weeks had business And since improved of that. election what I we than slowly tone the saw better had been XX last small an been quarters, what where we because the in last are over And XX weeks again had because and we certainly, yet then and we been XX the has

Operator

And McVeigh on UBS. Kevin moving to with

Kevin McVeigh

it it at optimism. I like you seems think think it Because and like they're what there's like not highs, couple the all-time the and ways, of But but guess, seems client sounds are a a lot they've is I of think engaging. indicators been I still asked hesitancy? do

So just any thoughts higher trigger the at to around And kind that going what's trigger? that's to a the them level? pull get of just

M. Waddell

the staffing not their a rather clients. for optimistic. But about is that's everybody the unusual Clearly, with their And clients. show-me wants businesses just a particularly to talk own it is see Presumably, decisions. state. is than it. small little to a have show-me hesitancy toward bit attitude having having in everybody more Well, everybody more environment, discussions discussions We're they're more with our

we've It tone clearly, levels lead better. interactions It as overnight. activity of elevated happen past, and to more placements, back starts hasn't the yet as with so but our doesn't is said, And typically looking these and of into the happened starts to placements. clients

Kevin McVeigh

looks it QX just is tax then like little bit higher a guidance. And in the rate Helpful. the

that? terms driving Just anything to QX, in of -- that's relative

M. Waddell

Yes.

a and, So And to -- rate that our on relative incentive a for the therefore, ago. our results stock because tax expense rate shares share tax deduction rate. restricted get tax book the our be basis charge tax higher in $X.XX annually. EPS vesting we'll a That an will vest year of below price, about lower the

Operator

from And question next comes Markets. BMO Silber the with Capital Jeff

Jeffrey Silber

you DOGE, policies, Department a I federal been either Can of do specifically to of know on directly community there's remind you some us, the lot indirectly of concern any regarding revenues? exposure Government investment government-driven in Trump's the or Efficiency. have

M. Waddell

-- government all, exposure the work, local, In at Well, work is to it's federal state extent very our and local federal. we sector our do substantially public low. government not to

so don't have while we it's a And zero number. exposure, very small

Jeffrey Silber

And and it's work, the from government, moneys include state work, come like local the and where would state local federal instance, Medicare but for that driven?

M. Waddell

of open But amount no. large fourth open than quarter, with that, Medicare Medicaid don't are Maybe have work. We part enrollment, Medicare, as interdependencies other there a enrollment. of during the No.

Jeffrey Silber

Okay. tax using the last rate. rate question tax to Appreciate it year? down it that. we'd for And on just a where be rest something should quick come the the the was year? XQ Or would of

M. Waddell

No, come down. definitely no, would no. It

that pretty should that the first a Our of quarter vest. grant those last a event. come grants according all down. much It Again, And vesting valued X first back pieces dates to event. quarter got you've is years' are

Operator

question comes next Mehta Our from Kartik Northcoast with Research.

Kartik Mehta

Obviously, be the the on to that you staff? for grows how and But stand on as business just capacity prepared as business capacity. want people in of terms confidence you would today, are Protiviti the Keith, measure you grows.

M. Waddell

there's their Well, I very of be advantages using scaled full-time through clearly by contractors staff. talent one can think their is can that scale solutions how But sourced competitive quickly for they quickly. utilization capacity

capacity And about. so onto optimistic I'm one of having very And the can combination of the solutions. the they talent just-in-time that's that beauties this two, of field whistle via the

Kartik Mehta

so, playing second first what's FX, that in the part in fewer to then, that get quarter. the quarter? And of the just days FX if get obviously, -- does And outside a up of Mike, FX? Does and understand, impact outside made

M. Waddell

up. several out made what pennies it -- going is million. average share. to get you're margins, not day margin a margins to of does I incremental because works And one up billings on so talking impact depending days mean, you're to $XX.X on And it have and So the type assumption

Kartik Mehta

that's No, helpful. thanks,

pretty So guys. it's impact you a for big

M. Waddell

Yes.

generally, industry day. the essentially a it's full For

Operator

question Sommer from with next And Tobey Truist the comes Securities.

Tobey Sommer

at Half? on new to contributing the action improved small catalyze into the business think deliver administration optimism to do you KPIs hiring Of optimism, changes expected most that for is Robert important the what improved to

M. Waddell

some less part tax current of not a more least continuation then rates, combination that, be It'd at friendliness M&A as of and if ones. lower of regulation,

those the... think I are

Tobey Sommer

Would you in order? that rank them

M. Waddell

Hard to say.

I think significant what they're be a is both perceived pro-business of administration. drivers to

Tobey Sommer

also. even financial Okay. then in to have into to seeing double-clicking M&A, are sense. kind those they the And segment, topics staffing any what and of vertical Protiviti the makes and capital markets of maybe about extent That Protiviti? a services maybe respect with comment you the exposure, in on one for And

M. Waddell

exits say integration. to beneficiary controls, by uptick, clearly, Protiviti has Protiviti the times X M&A to they Private as is But of will an some little where directly a lot improve, years. in as or a if that past not seen most M&A believe they've and That's like a of be big work create to of little Protiviti I'd M&A/IPO, an IPO were last the X that. equity will, of Well, enjoyed bit internal a lot. impacted for very via or had they've

exits, would pick M&A IPO very M&A up in if, positive equity So it a up. development or private picks and be fact,

At very the Protiviti doing financial services across solutions. well vertical,

work it's year, So internal the you audit have demand also only a have in as do to to well don't of staff they case internal is space, anti-money to times, completed, next enough they financial degree, which you it's some And complete roll many not but not part internal year. audit, get internal commercial the because over that where, given they just the your laundering, the in by the audit actually where, is to them necessarily if institutions, regulated they frankly, even at do. regulators didn't

industry say, I it's XX% So largest revenues, their bounds, strong. services leaps and the very market would is look financial good. things as by generally of focus their and Protiviti,

Okay.

last So us thank question, for you and that was joining our today.

long. So

Operator

this teleconference. And today's you. Thank concludes

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

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

Robert Half International (RHI) 29 Jan 252024 Q4 Earnings call transcript