KELYA - Earnings call 3 2023 | Kelly Services, Inc.

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Operator

Good morning, and welcome to Kelly Services Third Quarter Earnings Conference Call. [Operator Instructions]. Today's call is being recorded at the request of Kelly Services. If anyone has any objections, you may disconnect at this time. A webcast presentation is also available on Kelly's website for this morning's call. to meeting like host, to now Mr. would turn over the your I and Quigley, CEO. Peter President ahead. go Please

Peter W. Quigley

Thank you, ]. quarter [ Kiley conference Kelly's welcome call. third to Hello, everyone, and

language, you Before I'll our through which can our presentation we materials. be walk safe begin, in found harbor

forward-looking any Actual on include results that by obligation materially this SEC future these no we about a could the Q&A, reminder, to call, our the to for suggested description made statements made company's differ comments Please update our As call. our have filings of comments, this the refer expectations during including may the statements could performance. and future actual a for risk performance. factors from influence

be an adjusted to and discussed on during in addition, measures non-GAAP certain In a trends adjusted on operations. an Discussion our will on of basis items are insight into designed financial the call, give data basis. reported certain

call that available Finally, deck the our website. is on slide we're on using today's

lot We have started. to get let's a so today, cover

while third region. XX EUR a Kelly's our MSP, within our to to On transformative business in cover potential. Under to XXX International another agreement, group EMEA to customers business additional recent Before in our retaining to of the FSP we agreement operating EUR million staffing Group, European the GI we'll entered like I'd business with for the regarding earn-out million RPO terms quarter bold transfer with of segment and the Kelly into specialty X, results, growth announcement November step our European journey. staffing definitive sell and turn GI Kelly's

chosen customers will and first to provide our and specialties. transaction it higher-margin, in our investments will significant solutions which specialty footprint its and expect higher-growth OCG on and pursue solutions will Kelly more EMEA FSP to joined continue our expectations these later Kelly our our in solutions unlock the Kelly's the through maintain I'm the staffing globally MSP and details quarter America. XXXX, through of after efforts Officer, organic transaction in Furthermore, margin. net region services Kelly inorganic We focus close we fast-growing This to global North set. to RPO accelerate the in and expect who by Financial Thirot, MSP call. Chief and share Olivier transformation will improve in significantly sharpens our about Together, RPO our outcome-based today capital outcomes

Turning to quarter. the third

year. on progress we make transformation the this earlier launched to continue We initiative business

we these activities Following the strategic structural quarter, laser-focused on outset enterprise. the of implementation improvements sustaining restructuring across of remained the at the

on emphasis improvement. Our a the throughout continued SG&A organizational an basis, on year-over-year a efficiency and decrease in quarter adjusted effectiveness in resulted X.X% substantial

track With exiting within around the phase is delivering results, EBITDA our transformation and XXXX of efficiency adjusted X% an margin our of sight. expectation on

As expectation no quarter. market we shared the assumes our change the we second conditions to August, in faced in

and headwinds fact, significant third adjusted margin earnings. to the what control, on operating In environment, challenging remain pronounced can improvements we focused in than be to basis anticipated. Amid macroeconomic more more achieving an a on we quarter EBITDA proved

the across conditions headwinds, persistent we're line. will keeping improve, we've changes market to sights As we're continue that begin our significant bottom Notwithstanding to made the to trained structural Kelly's the improvement confident deliver on enterprise horizon.

progress where by the industrial and and expenses and and branch change. efficiently pleased new to serve progress comprehensive our over network large on within subset this accelerate successfully of pipeline teams, We've our accounts approach a to our model of and By critical building new Industrial deliver I'm the we've are operationalize over We've localized full meeting our and wallet, Kelly our teams commercial our we've business suite technology strategy they more staffing As large pleased customers that enhancing enabled the since delivery and are accelerate positioning capabilities largest which made this they then, increasing delivery enterprise is our to our customers. optimizing across long strategy Kelly the segments our business. In you heart a business will this share closer implementing by the a which This by At with the model. with enterprise improving term. at our talent segment, several through initiatives have the customers strategy transforming growth Professional of begun service developed I enhancing and culture, offerings to account shared effectively. is of to our in embraced to to we're technology August, are. enterprise you to mix way strategic share today. undertaken level, profitable of locations I'm

bottom ambitions. In on markets new success, swiftly to our $XX to value considerable in members. aligning results designed In several our support local third customer into the dynamics pipeline delivery pilot along branches insights strategy talent our model and is improvements, of to across quarter, also approach this to the assumptions repurchase Our select from validated healthy The the accelerated a delivered team which this market markets U.S. early a branch was top capital completed responsiveness share additional allocation completed million We're of third in yield with continue both talent customers among positive Feedback greater we to deeper benefits successful needs, growth collaboration, we're opportunities. returned priorities empowerment accountability and and and line pilot as shareholders. Based we U.S. in to our implement quarter, program, encouraging. and this business outcome markets our our and well. be moving

in we're that create current way in confident the best to our we're While the the is with reinvesting value environment by pleased outcome, business.

and available the further million ample the than our of sale the efficiency with have of inorganic to And phase deploy liquidity organic first of European EUR position. closes free as growth staffing mentioned add XXX previously, I when in by strengthening will continue We transaction quarter driven flow of our XXXX. more initiatives improved towards capital cash to the transformation, our business

inorganic Kelly high-margin, on segments evaluating We our Board-approved sheet, strong more our opportunities to and clear people. high-growth priority, environment. We're a tools, and additional technology notwithstanding transform balance a is pursue to way to comprehensive As to to a and education delivered such, focused our map the deals With in technology, opportunities. inorganic our we're continuing approach developed is positioned disciplined in opportunistically data having and set OCG. the investing business acquisitions processes, macroeconomic identify remain efforts road pursuing also

growth forward there I Olivier call the approach to about customers our evolving turn for is for our and differentiate by greater value to impact infrastructure, our through to each at focused call road provide on on our details that sharing for XXXX potential fourth talent. Kelly which create leverage growth to look expectations maximizing to in offerings earnings I'll step Our technology improving opportunities over quarter map prioritizing to quarter. the generate growth technology to a that, With third vision both enable more is on committed efficiency through our for February. With to innovative the market. business financial in we're itself in disciplined results and

Olivier Thirot

morning, good everybody. Thank you, and Peter,

including from For the year, the X.X% totaled XXXX, favorable third of billion quarter of currency basis down points XXX prior revenue impact. $X.X

So currency. X.X% revenues for the constant quarter were in down

XX% continues demand significant report to quarter net to at look segment, fill significant by third is K-XX the revenue continued up our segment our a down PTS rates, wins. market-leading SET our existing by that growth engine customers new market segment, Education our we due staffing was growth, and revenue challenging. In broader revenue pre education customer growth therapy from X%. year-over-year As and trends double-digit demonstrates improved solutions strong business, Overall, even as including remain

impacted quarter, and placement market deceleration in In has for a OCG as improved. of saw but hiring as revenue of markets. business X% specialties our economic moderation in segment, of as outcome-based RPO segment's Industrial seen impact the year-over-year which our declined and was from year-over-year of X% a in quarter. which business. reported XX%, XX%. disproportionate quarters. continued currency revenue headwinds During product Year-over-year our a in is slower on year-over-year continuation The a the the in were impact. demand grew revenue in by flat revenues Revenue our Professional staffing certain our revenue are constant fees lower more by a Permanent sequentially MSP had we XX% deceleration outcome-based by declined in the in declined the declined staffing continued declines trends the in well few this declined noticeable reflecting we quarter, Revenue also third basis. trend and sectors segment. have year-over-year segment past year-over-year, the and PPO demand

in in full-time a currency Revenue nominal segment's The at a X% on segment for ] center other was double-digit to base. Performance revenues specialty, P&I currency on and a demand where Placement increased [ and demand depends to our product. pace. hiring. continued our varies X% geography lower customers contract certain constant declined have by impacted International and for be on decelerated. has fees XX% basis continued grow outcome-based Excluding on

than reported basis. had Mexico profit revenue Russian July Switzerland, For quarter, was of a sale the which as of X. currency offset our was were we the France gross placement completed consistent Italy on good in fees a in in last declines down on basis currency. by impact or and XXXX. and well constant X.X% year in constant X% operations, as the Portugal that growth more International was currency with of constant Overall revenue

basis primary to of by of basis continued fees driver for last X.X% third were basis. unfavorable ongoing impact related basis costs. Our compared in rate XX offset of partially points million reported $XX.X XXXX transformation year-over-year gross was business XX basis was of efforts. of XX were profit employee-related quarter PAM includes The lower from expenses the XX.X% on impacts the points. our XX.X% down XX higher of a and year. third mix. SG&A decrease points quarter points of Expenses structural a to These charges improvement in

constant reflects declined quarter. transformation are designed basis currency efforts, reduce million in well on or as our So the which the impact positive based cost as a incentive reduction by expenses lower X.X% basis, to compensation. of $XX structural in on an performance adjusted The

the reported This loss operations. third breakeven to quarter, of quarter produced the earnings of we from a basis, compares in on For XXXX. $XX.X million third a

our results QX million include related XXXX our noted, to of activities. $XX.X charges transformation As

adjusted of $XX.X from QX were So XXXX million. earnings in operations

of charge, in adjusted loss from in goodwill Our XXXX $XX.X includes a resulting XXXX million operations QX QX impairment of $X.X billion. earnings

finally, quarter a earnings share Income with tax point third impairment compared loss $X.X was quarter So tax reported per share X.X% XXXX, a consistent like-for-like benefit per also EPS excluding for basis XXXX $X.XX. XX ago, of income of per third XXXX of a million transformation-related XX%. Adjusted And adjusting XXXX at And $X.XX by was to X.X% year on earnings basis, EPS increased share. quarter the EBITDA net third improvement. was for improved the the a Adjusted was the $X of margin $X.XX of charges, for from XXXX the compared for operation of to $X.XX. million. benefit QX goodwill quarter tax, the net tax, XXXX. XXXX charge, after for in our

doubled So XXXX the of on a like-for-like year. basis, prior EPS QX in from

at our $XXX Now And with debt moving near with third $XXX end on of substantially XXXX million have compared debt future. we deploy as in QX. balances the the facilities no no quarter of the EMEA XXXX. to in available end and credit of available the the transaction, our the to cash ended our end we as sheet the totaled our the QX, outcome ample consistent capacity $XXX at million of balance to continue well capital of million At with of to cash XXXX, as of end

well the receivable a lower billion in end day the in year-over-year due to days, X decrease up-to-date DSO. DSO from year-over-year, our is of as education in as period the business. was XXXX. revenue X% of was accounts DSO QX, XXXX in primarily XX and decreased Global impact same $X.X of year-end decrease than a As reflecting seasonality

$X flow totals generated and we $XX the free year-to-date of quarter free million. third For now XXXX, cash flow cash million of

we those line maintain our with to revenue quarter, supplier payables. the to portion are and balances For of have lower related accounts funded our with trends continued and MSP receivable DSO receivables in A are programs improvement.

November position has impact limited we In program on million year, $XX cash buying repurchase generation. shares we the of the quarter, million X So the that the net during share in completed announced last flow free program. lower a approximately

challenging conditions, XXX Now which, We of quarter expectations a than I on to will are we of nominal market quarter down our for assume be year-over-year. rest basis as expect move points revenue XXXX. noted, XX to had to the more ago. current Peter a the We now fourth continuation anticipated

We business be QX for year-over-year to sequential also compresses will above expect mix the placement reflects our trend education year as normal softness GP of keep expected points and that continued lower rate GP XX%. basis in demand The our improvement QX about down GP to rate XX due is business fees. our continuation hiring XX.X% permanent rate seasonality the full of structural to the full-time

expect top We with efficiency actions. transformation more our SG&A QX to trends than shared ago. adjusted last a period accelerated year, challenging the lower fourth expectations to we the about X% that We be consistent our than quarter and and reacted quarter better line same

be to challenging a between to we in adjusted market and margin X.X% more conditions. the X% quarter fourth expect As result, reflecting EBITDA the

X.X%, full For European and transformation it journey ago. to of staffing expected for levels historical our line of of transformation-related year additional margin is more comments. the adjusted this would of we to year. And turn top impact months improvement the EBITDA the benefit basis our our points as all of of Peter adjusted normalized margin, earlier X than business expectations. since expect in to savings, reach now from perspective, began the a sale additional range X.X% That XXX with EBITDA the I'll back over We discussed current of

Peter W. Quigley

to new this our achievable. importantly, with operating optimize a a in with insights, balance May, our that our significant significant ahead. those we team that we business you great the improvement on our this With questions. I our into further and with on that us, that for together, Team avenues are I the runway open additional company. implemented purpose, I'm call and proving this Kailey, announced of it. speed committed and a for is committed would have base embracing our unleash and agility find is the we united generating our delivery we and I'm comprehensive are optimize our growth organic closer at this it the available each Olivier. for to that company's inorganic in by would most grateful say than and through member easy. Kelly is our to to every can opportunities We acting enterprise for and days our never sales moving and of in growth. margin and we unlocking delivering work of manner long But that and The best deliver approach business growth. confidently in value to commitments. through transformation taken measures When across we over accelerate team urgency to I can moment additional you noble forward to capital X now together, journey, large revenue And July our Kelly's Change that potential Thanks strengthened model strategy, collective value-creating customer segments profitable realizing operations will functional to would term. Through Kelly, of catalyzing account we ambitions commitments. formulated ahead we're further root, blue-chip full months the scale sheet sustainable unlock EBITDA these efforts, of ever confident

Operator

Research. Barrington to We'll Steinke Instructions]. go line Kevin with the of [Operator

Kevin Steinke

the start early to transformation early results initiatives wanted the part I favorable about you off results. that or by driving growth are asking of mentioned

touched want and others the branch I is highlight? transformation to local part maybe any guess I on that think you initiative. you'd that the of

Peter W. Quigley

transformation. of Yes, that Yes, a Kevin, significant question. thanks part the is for the

in local we essentially high-growth and markets network, And putting adding closer or to in we've markets, markets, supporting them successful markets, adding it technology our the the resources customers that's reengaging aggressively in we're our branch revitalizing roll and opposed as mentioned, new more speak. local our I a local and and moving As to talent out resources to creating why resources and are manner. U.S. the centralized more we results to seen as pilot quickly

Kevin Steinke

of Okay. staffing signals or that ask Yes. centralized to that will be to continue going about how emphasis I model was the forward? the this if going meaningful

Peter W. Quigley

-- we makes deliver we have it locations, enterprise a model facilities. where customers talent will will customer continue centralized delivery sense or very and location found locations, local the have It and large higher to satisfaction. enterprise where but large more a that they in and markets large continue a a where effective, through single customers distributed have few We efficient is

So we're both improve. for and the going optimize conditions when benefits that to do expect and to the we will macroeconomic ways see look to significant to models, continue

Kevin Steinke

you Great. maybe in headwinds? results. of can I Can what they the the touch third second -- guess Okay. macro are changed reported pronounced I in and seen maybe quarter you've what you the more since kind also on just environment quarter

Peter W. Quigley

Well, in improvement just I in QX cautious. They're there's demand, of being It's in think then about an see this their a hasn't own year. and we terms a typically, our don't significant as customers Kevin, materialized that QX you know, just uncertain in more of and economic industry, typically outlook. continuation change.

So about their being on decisions. they're dialing they taking permanent to and longer dollars. back very They're spend judicious how make hiring

So we've seen few significant the last to don't any relative again, change. we in months. what expect

Kevin Steinke

Really, you're getting wanted dive in margin took cost operating leverage further speak transformation. seeing there been going and opportunity It out the to related the the in doesn't I you've impressive there of been a has SG&A leverage for time. operating you over Yes. education? just like to look into Okay. really look maybe here. forward But on the to when terms couple at education, operating there down the of improving I segments leverage

Peter W. Quigley

people some and education some will a business in impressive unit we've pleased optimizing education and new took over more with but that school number with existing pipeline to benefit I'll school to big of But and is details. accounts we're to results. did with created a Thanks, not steps -- we've in the is wins business Olivier up our and overall new growth of we're continue order the -- it number fact, to the the winning, that pace turn growing these we that seen standing programs. The But need of in analysis that looks very only to strong. provide fact a their districts in districts, Yes. Kevin. customers the review -- participate support of at transformation

Olivier Thirot

Yes.

We the growing continue to [indiscernible] XX%, mean, X see and leverage good. continue KPI use, a of -- leverage, the in XX% the we we despite incremental -- growing to key it's The QX. conversion very, very top line would rate, of yes, in base. I growth say, on revenue still I we

We future. And continue that business. the I transformation, Peter, the with in high-growth it's near expect on to a agree

more was our We some simplifying continued that in initiatives, it pace. have very a the continue structure transformation because people at the to done fast streamlining, invest grow is but of growth in line and to top

Kevin Steinke

Okay. XX%. strong about generate also Great. OCG gross continues margins about That to to the ask I wanted segment.

to It took those SG&A currently and -- as that as there? time But a margin, dollars a expenses And and lower is expense segments. of higher really those in -- gross of out gross you opportunity revenue there can of Although that just of high refresh SG&A there XXs, percent over you the of get charge other been profitability get small on the the base the quarter. low are? looked than transformation-related profit more just me meaningfully like kind some in charge you in a always that's percent revenue

Olivier Thirot

our of the model of you to in in are in of And visible QX. mean terms locations Yes, our future and in definitely, various transformation going continue way yes. it OCG I to terms in a in efficiency near that's more going side products. in optimizing various see the delivery

more [ a So than in ]. that that's is something signals point timing

in more QX and later on. going to You are that see of

that, said especially business Now a high-margin it's and MSP. around having RPO

business MSP that especially also we to to footprint course, our still the are Of future. continue the confident we but is in the cost can of deliver, outside U.S. the cost this leverage of

very And top our the traction OCG are in in Our it in next as pipeline of months we coming most good on see to is line some the is I additional as believe start going well. segments. to

Kevin Steinke

good That's color. Okay. Great.

businesses go Just a the just once lastly, in have I from Mexico just the forward there. going sale know completely does international closed, you perspective the reporting of segment away? staffing still European

Just happens [ wondering there ]. what

Olivier Thirot

to about the look bit excluding the are Well, GI. we It's if of you basically numbers at international what little figure the selling and it, total think to basically, scope you want some Mexico. of a out segment, if

would to is million. revenue, if Just give business, at an our is international around you revenue $XXX million, idea I the extrapolate $XX on about Mexico you say,

You can on see that our X-K.

to or transferring is GI to P&I. business are to $XXX we The about going Mexican $XXX basically what to of million to selling GI So basically revenue. million is move

segment no the will longer So international exist.

Peter W. Quigley

We'll have X...

Olivier Thirot

X business units.

and So Mexico to the because going is to be synergies terms the to it continue big where that's fitted growth. of going future include is accelerate change is P&I in for best

We business successful. at fast Mexican we that and very now pace expect is a continue. to very Our base, grew

Operator

go next with of the Northcoast We'll Research. Kartik line Mehta to

Kartik Mehta

the revenue what's the would would Or out money, growth, considering company? enhance wait the current in at available sense? as Congratulations the European which that marketplace, it pricing is makes opportunities you something time there? maybe of to is the on look the deploy of sale that the something And margin are business. And on there you I'm that the profile wondering,

Peter W. Quigley

Kartik, conditions we're it with those XX has aggressively in balance we're we is say, our pipeline ago. we're the sidelines. unlocking company right we visibility But a there off the group the The in around sale for very to to into still expect properties or sheet. that like interested economic a market business now Kelly come to are combination the and been, our think turn properties we've future with particularly strong properties. opportunities quality capital companies GI and less signed my pursuing in said there that addition add as are than We technology is -- OCG. are enhance But high-growth greater to significant telecom that our and as science, well opportunistically and to portfolio, seeking to, and as high a our to in margin, said, those portfolio businesses, as months identify deal I actively as and I to in comments, education the robust engineering

Kartik Mehta

And trends you the quarter or any they look into getting same? changes? worse, then as throughout at the and the better October, Are

Olivier Thirot

you when at exit look say we X.X%, of would our minus midpoint rate, at September our guidance. I are which in basically constant currency, the basically is

If currency, a you expect it of move currency FX. XXX about from to nominal constant points we favorable basis

So we have this the quarter. is where ended

revenue-wise points of September, is One to course, for see us Education going the of good QX to of traction consider, that, to changes Apart segment that total seasonality a continue Education, September the excluding some between lot get that when have is line. versus the we rate. started look QX on not from September top also have in you basically at we again education or seen but to exit really by without

seasonality for Education. would the the seen of that, because contribute of of is, tell either, have is that we course, QX. The high really high but ] indications seen, to of that so the different have growth going course, in of [ simply total more seasonality same main something revenue QX to far course, We the be are not dollar-wise not would fact for significantly that with improvement trends us type item QX

Kartik Mehta

or Are struggle seeing question. behavior continues any one And last market in to you that then the anything bit. just a little pricing change competitive

Peter W. Quigley

their certain we to competitors challenging respond that Well, macroeconomic see by always pricing. a adjusting environment

-- price with sell sell continue continue do discipline our of will and working Kelly, so. we value continue the to We and maintain to we

We It haven't by price largest to a taking a I try among compensate scale smaller changes period will time. would of players. that demand for decrease the regional slower seen, say, for wide is typically players

seen So we wide-scale on it basis. haven't a

Operator

to We'll Capital go next with Gomes of Joe Markets. line NOBLE the

Unknown Analyst

filling Joshua Joe. in for actually is This [ ] for

every on to basis bit [ quick like a to just a it [indiscernible] on at just want in of here, down. of to on I to of looking ] start thing time kind just that going I segments on, sorry, the be get little quarter see neutral, everything a kind led your seems was what kind that. So --

Peter W. Quigley

outlier as which a a challenging impacted customers in yes, our is macroeconomic obviously which drop reduce their shows discussed. cyclical business. that big We're Education, because hiring, our up in fee-based conditions in of Well, the significant permanent we've business. by The being

I mentioned the or cautious outlook. own about As earlier, customers are their outlook

And in the to not They're seeing taking maintaining longer sort they're what so they're adding And that's their just we're ships. make of operations. decisions, results.

during some whether our to enterprise initiatives of started demand. underway of level business I as that period expect we it's units I Olivier significant significant comments, this have We growth indications at we our any the the haven't and business initiatives don't as P&I the mentioned horizon segment. -- haven't our take of mentioned within we encouraged pursue initiatives we're account in my we've see to mentioned, of will change. seen would And any the sluggish during on by and change or to share relatively and continue that share in all this early But capture environment.

Unknown Analyst

to Great. Kelly, little revenue helpful. of expect kind any additional on we of international would Okay. be Like impact, does kind terms obviously, of I sale color should Is the XXXX? and of And bit of in touched that base briefly, really kind in how guys if it that -- ] a what just EBITDA? but I staffing sale. [ kind on I you shipping know a

Olivier Thirot

the getting just Mexico impact you the So mean of on clarify of being exception international, monetized to a basically or... with pro basis forma

Unknown Analyst

Yes, that's right.

Olivier Thirot

Yes.

be of about perimeter get a apply are transaction take If Yes, the and pro if and and the it a sort you impact. the -- to revenue. to you think you impact visible of you on XXXX forma to going this there transaction

ago, minutes about to that's few base by going a said reduce revenue I our As million. $XXX

coming It about because by FX a thinking the is because is long-term is it the reduce margin for Now our good our average. from It's this line. going to that, potential points is going to on the there it's business. improve improve growth most exposure to market -- than our basis to International it's going top mid- simply lower doing XXX International job. business GP rate But rate about gross reasons, of

lead as should to during EBITDA margin improvement. And Peter gross the XXX it basis pure a share us margin, prepared remarks, So and our myself did get point remarks. on

look And margin impact on positive year DSO the just it just a would it's net EMEA and than this at on usually are you North DSO, impact not I on points. by transaction exclude and an in basically, higher [indiscernible] perimeter America. If add about our also Europe. you just an the of has average historically, staffing basis it's current XX impact,

it our working should generation. free flow DSO, about benefit X of so So capital of cash and days create a improving

Unknown Analyst

And a program Great. hear of queue. of I for kind just just going earlier me, I'm the guys kind the that handle want digital the kind to the in much you didn't get on to Okay. about get one back last then out that. I year, workers Is of the -- in put

since guys get been pipeline kind of that about last additional for program? You interest the you it. spoke in the How looking has

Peter W. Quigley

] is the local mentioned ability the, Professional -- by that I incorporated solutions encouraged is capitalize robotic to we're announced to We lot out OCG innovation and product in Arc, expanded we technology the The segment new and worker about [ segment technology process we to in trying digital platform that very and that. how it it, in launched solutions. continue, which of we've bring earlier, Kelly automation our in digital I the -- figure jobs to automation and to optimized which customers. A Hilux delivery. Industrial our tools Kelly and continues. and We're a on We demonstrated quarter. our customers a would Yes. call the asking have are deploying continues develop

talent customers So our all both these intentional also technology, of of to processes, we but AI, also place. benefit a our in generative the that and deploy solutions in very the are that culmination strategy including

Operator

go the line to Riddick Sidoti. of Marc with We'll next

Marc Riddick

were what as busy we're of on year thinking implementation to And I initiatives frame? as you. about and growth bit we and needed about little lumpiness been of there's should be certainly of or investments also, if the incremental in sort personnel, little a technology rollout maybe maybe bit from like and a it's standpoint and touch for of that the talk sort about thinking to then sort a or any you either concentration you that the could any -- and spend those whether that? developed time So a wanted on

Peter W. Quigley

Yes.

not there the really to that initiative transformation in way. But execution. more one, are second to results, May, to by efficiency our X and only I efficiency at of the had that just sequence the I of took the ensuring of by mindful reducing all going investments We initiatives efficiency with on indicated now our spans as focused the a in business initiatives. to spending of are in and And So front swing growth. full objectives initiatives way enable have speed then, our components: putting but try line our with of consistent our announced mentioned and some segments, of each consistent there the needing focused in on enterprise initiatives line then level, to in are at enabled focus most business I And units earlier, initiatives the layers, any stages, on and we also the particular sort these to are growth technology. And enterprise of are we're there top which initiatives, don't and with as different occur are resources because we our on growth. function that overburden enterprise of

there expect used I possible or resources technology lumpy exception have to -- with of not the because significant be don't the either think our of word I lumpiness line we necessarily investments you and in education. -- it's So the the terms in in to growth support any top

Marc Riddick

in I Europe. -- I Okay. the Great. if a could acquisition on to was little up sale wondering potential touched this congratulations just on on wanted you follow And the bit, the on And you then pipeline.

or little opportunity months areas have or I of so. any it as cash with. eye I think you ability understand you're is a Are going the was pricing availability particular the more you XX wondering target that ago good, wasn't just next with few guess, I talk of bit improve of that can And months? not so on have to there as really just able that improve attractive an attractive if the that that about think or pockets maybe you to over think as kind targets? it issue some pipeline maybe maybe it the flow you [indiscernible] be was to maybe could I is work a And

Peter W. Quigley

on say would reactive I basis.

quality to are we're there. and is And lot our the deploying to little in about for in or adding to at areas on will improvement And that be which quality But have but the And be companies going we're unless going the and in pipeline our focused on SET accelerate that of to in set acquisition still targets, generating Engineering and have bringing so it's the isn't see doing think that I general, model, operating a recognize are we're we are years when fit we basis. Telecom bit mean, going that those a Science an chase proactive not opportunistically X that we and we've And -- to continue in up a capital, that. properties would on we net to work Technology so high to we of and areas. education. been to market, added that's growth there, more that's we OCG, the a and high margin technology margin we now plan tepid. So be themselves not quantity we Kelly. growth, ago it they good needed organic

Operator

there at And are further in time. Instructions]. presenters, no queue this questions [Operator

Peter W. Quigley

Okay. ], [ Keelly thanks.

a it can we Thank then. you. think call day I

Olivier Thirot

you. Thank

Operator

is X replay And Eastern at available ladies today this and Time at running gentlemen, December conference through beginning XX:XX for midnight.

You or Event for conclude does the code conference access of may our That for access access using your and (XXX) (XXX) of are XXXXXXX. XXX-XXXX XXX-XXXX. with for by XXX-XXXX International AT&T numbers may again AT&T dialing participants dial Those the (XXX) XXXXXXX. replay code XXX-XXXX (XXX) you participation entering system and the today. Conferencing. Thank

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Kelly Services (KELYA) 9 Nov 232023 Q3 Earnings call transcript