KELYA - Earnings call 4 2023 | Kelly Services, Inc.

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Operator

Good morning, and welcome to Kelly Services Fourth 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 fourth quarter webcast presentation is also available on Kelly's website for this morning's call. I would now like to turn the meeting over to your host, Mr. CEO. and President Quigley, Peter Please go ahead.

Peter W. Quigley

Hello, Thank fourth welcome Kelly's and conference you, call. Kailey. quarter to everyone,

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

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

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

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

get Officer, a then rapid objectives. let's reflections our that, defined quarter. on started. I'll what invite share moment, to I'll action decisive by efficiency for year fourth growth progress results been has Thirot, With our on Olivier and Chief the a Financial transformative my In and our share

XXXX, for that, to taking Olivier. Finally, our preliminary the call we'll provide expectations your With turn questions. before I'll over

Olivier Thirot

you, and everybody. good morning, Thank Peter,

those permanent on driven revenue, a achieving business million year, year Overall, . Amid This and gross X.X% Before from excellent level we saw more XX another or up conditions Full first. is performance XX.X%. revenue delivered of year the wide challenges, full constant prior brief demonstrated from some our point as lower XX% a profit the fees. in challenging range in year specialties revenue period. over XXXX, doubling This our placement reported reflects growth, for provide I primarily down the market rate on was XXXX by details on results, currency our across revenue of resilience education XXXX basis geographies. the pre-Covid of comments staffing was X.X% $XXX basis. QX almost decline and a

reflect us efficiency as part to position expenses basis, by from efforts X.X%. Our with us consistent adjusted improved of of to points. of XXXX, our XXXX difficult adjusted and lower million, significant rate SG&A margin deliver basis That market our XXXX forward. in spite initiatives benefit allowed we finally, cost our And from earnings On base by an to improved results also transformation conditions. full XX $XX.X year our moving lowered adjusted made EBITDA our the operations

Now looking the billion, currency impact. at year, flat quarter the with $X.X XXXX prior detail. of more basis points essentially of totaled XXX fourth including favorable in Revenue

revenues constant down So currency were on basis. X.X% a

as $XX field growth both reflects year-over-year more revenue the in as our in million now and well education XX% The my remarks, strong noted growth year the segment's of delivered segment, quarter from business existing customer as look to net full continued wins. customers than quarter. we revenue demand at Overall, by Education fourth As strong, growth up year-over-year. double-digit continues the revenue in be rate

SET segment, the In X%. down revenue was

fees as were During flat down our market impacted to the revenue Staffing Permanent be X% year-over-year in demand in by see continued conditions market in continued the by as with Specialties business, which fourth impact lower outcome-based SET of quarter, declined challenging we well our revenue and to year-over-year. XX%. lower placement trends

Industrial quarter. the in of our from market product our in Growth International the to currency finally, conditions. year-over-year year-over-year revenue reflecting our OCD slower declined offset in RPO revenue sectors. XX%, staffing year-over-year And coal on improved. from contraction hiring continued segment specialties a revenues our quarter. declined while challenging declined Year-over-year The XX.X% was outcome-based year-over-year due Professional In demand down our was X%. continuous X% revenues also in basis specialty. Year-over-year segment's in outcome-based market constant across declined certain basis. MSP declines PPO and segment, our a by the Revenue center revenue improved most segment in flat and in reported on was X% Revenue

Overall gross X.X% profit was on as reported currency X.X% or constant down basis. a

XX.X% basis QX. to education GP specialties respectively, profit rate XX.X% for rate growth gross quarter partially was unfavorably the with by in And fees rate Lower costs. lower quarter, unfavorable continued impacted including impact mix was basis and were International of and and offsetting XX This basis due XX the fourth to lower our in SET, Our to business term points compared in customers, in mix, year. prior GP our rates lower also by the impacts PPO of those Education employee-related points GP points. XX and can about reflects by product, rates GP

the were a with XXXX reported charges our million $X.X related of transformation of fourth QX expenses related quarter X.X% associated on include well sale of XXXX activities European ongoing efforts our for to as SG&A operations. the down $X.X basis. Expenses to as year-over-year million staffing

designed basis, basis. So impact by to to the X.X%, currency reflects basis, The QX. adjusted expenses reduce a our efforts, cost on positive transformation similar structural declined which of reduction on an constant are

of in million in QX operations from XXXX. compared earnings quarter the $X.X fourth to was $X.X million reported Our

As million of our of related $X.X million staffing European XXXX results related the activities charges our charges to sale of transformation operations. noted, $X.X includes to our and

charge. included quarter impairment XXXX fourth goodwill Our million $XX.X the

XX on earnings adjusted also were operations over So to improvement adjusted a improved year, million, margin X.X%. and from XXXX QX prior points XX% an $XX.X basis basis, EBITDA the

our fourth work income recurring. of value the $X.X impact include cash compared Income XXXX credit, $X.X expense on million of the gains million. insurance the which of with and a benefit the in taxes life benefit XXXX were of quarter tax tax nontaxable company-owned are for taxes surrender Income

assets of European for other in impact In XXXX we completion anticipation legal restructuring transaction. QX held tax adjustments, of the the the from tax deferred tax differences of sale addition, and recognized basis subsidiaries outside European staffing our the from on allowance valuation benefit entity

per of tax. all a of and by of of related staffing restructuring operations and partially to per a compared share to impairment a XXXX finally, net the sale costs the Loss adjustments, in includes net contract, to forward a tax tax. for transaction on tax $X.XX the all And gain charge, XXXX our and quarter $X.XX per XXXX. reported related on included share loss $X.XX real of net offset of unfavorable share earnings in European in share loss impact unrealized fourth share charges property per net sale of of Earnings tax, $X.XX XXXX of were goodwill of per

in taxes XXXX an per to as This on significant as QX was business driven compared year-over-year EPS income XXXX. QX basis, So of $X.XX by is $X.XX adjusted share change performance. well in improvement

Now to sheet. the moving balance

on and of for liabilities included As XXXX, end totaled European on assets sheet. no are million, have line outstanding. as and classified cash our our now debt we a $XXX those operations end, At balance held and items staffing are separate now year

in received Of the cash position does the XXXX, not the sale terms operations of sales of agreement proceeds this or proceeds the million additional the European course, include staffing expected third quarter under XXXX. from our $XXX in more of early than of

market organic global existing practices. with as represents totaled accounts fund navigate capacity, strong generated receivable American RPO and balance an we strategy uncertain our At billion have reported combining receivable capital environment. from MSP and available to continue borrowing our and outcome-based accounts and inorganic ample as as our sheet businesses $X.X when year-end, our our So to North and Staffing well

operations staffing European our in held are from Receivables for assets now sale. included

manage our by the Our working XX accounts investment was which those in to days. over primarily staffing DSO, and global includes continued receivables, capital customer generated reflects receivable is X European year-end efforts down including This all XXXX in U.S. days our operations

the in million cash million we $XX For $XX XXXX. using cash to of in compared year, flows free generated flow free

year-over-year Japan a stock. taxes following period, did Given Act of income from including are the the XXXX due like-for-like also sales federal Persol common payroll careful flow free million we and $XX working final which items on But repayment basis, in challenging. the deferred onetime under improve XXXX million of investment of CARES the tax capital. in $XX our in balances, of management cash Comparisons of from the approximately in

turn for comments. additional now back I'll Peter it over to And

Peter W. Quigley

we by shareholders significantly defined insights, those we with so greater When growth all improved the Future -- for Thanks XXXX, a our value began did profitability, and for clear Olivier. future. sustainable vision company's for creation stakeholders.

general, while taking As by uncertainty and cautiously a the persisted, . geopolitical rates both continued higher reductions. workforce progressed, In employers measured volatility. proceed to with interest approach full-time workers year to temporary fueled hiring and inflation, macroeconomic

customers the talent margin our go-to-market and strategy net during uncertainty. trend we with finding our the for the cooling the delivering the labor While typically needs half offerings to the future, Kelly's remained unique emerged, has We focused to XX constrained, on approach share of supply diverging urgency structural of and and industry a improve be margin and what delivering these expenses. We delivered in financial of from points of on some Kelly continue to of in to periods committed the with refreshing dynamics, to of create growth, we enterprise evolving rolls can and large operating significantly solutions wallet. to we our expansion enterprise of open relatively out comprehensive talent. innovative We signs avenues net we sustained that to our SG&A and our control and a we of have, both suite includes of adjusted Notwithstanding experienced This vision to invest environment we would greater basis executed agility. base align reduction greater meet customers resilient, swiftly our across cost the have, new have capture priorities, said to have second flexibility to full efficiency year. our performance, strategic with actions implementing and and a set market

focus on are now that of accounts initial Kelly's with of a As of January, portion base. this an meaningful represent set revenue strategy executing we

clients mobile light of highest our positive job to both or delivery benefiting up our industrial The app to momentum model and committed candidates. app. opportunities regardless talent thousands commercial Now actively live our serving and of in localized quality tailored qualified Kelly customers with from remain P&I our now highly In further segment, spend nationwide and to is to the we course, Of enhanced service all generate of continues providing size.

including trained which to portfolio. growth remain within well. growth eye an more engine education, growth resilient focused markets, a as we demand well continue term our in near mentioned, continues as outcome-based future, high-performing capturing and Olivier in on higher on With as the drive value to in be margin, as business higher We the

And growth. staffing value-creating redeploy a Kelly European inorganic unlocked $XXX shareholders. in quarter, and sell share unlocking the we to capital We program of $XX completed in returning in our business more successfully to agreement repurchase directly additional million to than organic opportunities, third pursuit entering an million and value

continue upon changes in together, North Taken these throughout operating units will entered a efficient, MSP positions more form focused of with to enterprise, the X foundation staffing the global a which accomplishments streamlined RPO and We solutions, comprising XXXX further market-leading realize more and to build. profitable and we'll with benefits now strong these America business and year. model we continue from

details For Olivier. I'll expectations the to call XXXX. on back more our turn over for

Olivier Thirot

Thank you, Peter.

into improve market in other As to it patents as quickly made cycles, not know economic have . how we move the in seen has Peter the will difficult and same staffing that underlying we the trends mentioned, and more staffing economic have XXXX. market moved

operations, before As for into with believe past experienced conditions we'll that half over period outlook the included will only, on we several I staffing you our remain segment we the of our the staffing in International Mexico a of retained we our will give sale a I where result, market historical were And European consistent XXXX what for have the reportable But our color have relatively first XXXX, operations dive through some XXXX. quarters. results. impact on our of clarity, share which

in earnings been releases. the of has tables our for Revenue reported revenue Mexico

quarterly our get So can filings. from more information, impact historical including you revenue

European our $XXX add in and million XXXX, $XXX gross operations For profit of approximately the $XXX million in full expenses. of generated staffing year revenue, SG&A million

rate approximately as basis So our into result should XXX GP reported basis improve points, basis, points we sale. and revenue by as a XX% margin should improve should XXXX lower EBITDA be a of by move XX the on like-for-like

on our the my the will XXXX base. staffing European of operations comments remainder exclude outlook from The for XXXX

of be half revenue XXXX, basis, in we first flat to like-for-like expect significant FX For of up the on revenue to with X.X% expectation impact, billion. a no a nominal $X.XX resulting midpoint

into of QX that Peter move as gain and traction growth XXXX revenue expectation consistent initiatives be has reflects will start QX outlook we an trends Our then with mentioned QX. the that to transformation-related

our expect see as This be of a to is to the reflecting point like-for-like of is our deliver XX.X% in on expected basis actions a XX.X% revenue a continued our to our we to because significant expect range, GP business business midpoint XX mix, in in growth. to change We our primarily Education of rate efficiency impact continue the Also, transformation-related improvement decline basis. the continue.

to expect On basis, midpoint SG&A a expenses of million for expected the we half of X% EBITDA adjusted rate $XXX first X.X% an margin X% X.X%. of the XXXX. of about At the like-for-like that's range quarter first adjusted in expect for down to run we the be our the of Overall, to outlook, half year. per

our in half sale of impact operations, additional to basis in we first the to staffing XX an our expect half in basis cost European the basis addition the margin In net and structure point XX made of favorable improvement second we of the XXXX. points from improvement point XX XX the

And the our of advantage improved market recovers, efficiency. when take well positioned we to that we'll further staffing be believe

report our Finally, margin as we earnings results, XXXX, beginning segments, our utilizing the segment into operating results EBITDA first of we and revised measures. move quarter operations from with

reported greater contribute feedback business allocate have from as how overall greater each the they generates results they we to previously and transparency aligns a would that Kelly's financial and costs business value others performance. will our share to We the units. unit investors costs on of This with corporate

And now you, Peter. back to

Peter W. Quigley

Thanks, Olivier.

With XXXX, to and the rapid for in have delivered action point team the we inflection XXXX our groundwork in Kelly's decisive an progress history. laid be XX-year

results. Our efficiency sustained measures delivering are

net phase, X%, in the margin X%. an ended are historical step initiatives around of growth of margin from and our change a average now implementation Our adjusted with the we year EBITDA

previously for company achieve set Olivier to to is As shared, expectation X.X% the X.X%. the net of stage for our disclosed margin

greater confident their a results that's steering I'm structural bottom very set challenging the well for growth. near the the improvements to way delivering through future. improves these a positioned macroeconomic in horizons, on environment team our the kept while company has of line With top share capture environment demand to the the dual necessary change Kelly external term, definitely line is in position of increased embracing sights all customer and place, to proud that gains convert Kelly I'm when and

on shareholders Finally, the I'm over have who journey, value talented commitments grateful our trust on and in with to this been long their us customers, placing our Kelly to term. create deliver

is reward be While to in this a we'll and the stakeholders. for reap benefits growth done of new of I'm confident that we've start of a there to transform begin era which full company year a work done, XXXX all to Kelly, our work is the

to Kailey, you call questions. now can open the

Operator

Joe Gomes [Operator Instructions] Our the come line first from of Capital. with question will Noble

Joseph Gomes

just Peter, to of start So off. kind wanted

do is more there candidates order try pull? else doing to I everything you more opportunities there that can. and You there can fill levers be are? able in to can to we whatever mean, What are guys any you attract

Peter W. Quigley

reach Yes, continuously Joe, finding we're to new talent. ways

key is component but Social media obviously one. the of only a that, not

geographic to Our Kelly revised for is connect electronically. designed for personal establish our something to structure people our designed people that Now geo P&I prefer broader person is more a individuals a area with we've segment those to a that and contact those app that greater over want announced to connection do with for

been in think our great exploring a in And successful. how So example we've segment in Education of I of . all rates we're new our the improvement ways fill continuously businesses. is

Joseph Gomes

quick a kind here, Olivier. just technical question And of Okay.

assets of million. sheet, sale got $XXX you've held year-end for balance at So lancing at the

the You this plus there year? accounting is in that. a international, to else call we're Or What for for maybe let's $XXX held . is sale? assets it, sold else some point million got, on at something that see suggest side included that going write-down the there

Olivier Thirot

No.

you held sale, when think liabilities. you about I of million $XXX for million of assets, $XXX at have look the

book is So about million. value the $XXX net

million of cash earn also as out. pending $XXX.X working to receive year. would like January the about mention are I an you the But there of know, X,of points should tranche normalized level a free, free debt first proceed, Of course, least and transaction that be on with at capital, still there we did the this is

all QX. January. early at to going So And review, that basically addition from time is to did we to under expect proceeds early all in of of be and in QX or get these likely equivalent the items additional late signing, we course receive so the the probably $XXX.X million that's the

Joseph Gomes

picture I Okay. Great. Kind may. X if big more, And Peter. more of here,

been over. XXXX, what economic a more more that done get the in believe, when transformation, you that I eyeballs time with the yet class really just higher? of drive hand environment. else do deal immediately kind of share is Kelly this just in and attract frame, But uncertain below then attracting CEO COVID the and you've to and And impediment fact idea you recession can October an of stock you've to do since inflation tough from Or is trying to you assets, the the So efforts, that stock story? restructuring the dealt and having and an we investors X monetized investors the have to help took see would M&A,

Peter W. Quigley

Joe. Yes,

trying think get in avoided head prior into I prospective conversations, of So the I've to investors.

I those X%, to we conversations in step investors, year call think, past wake-up I margin net say with is versus trajectory that the on investors going XX would that to year last think the is, So our we're at are entering a years. Obviously, our and a average of a major on than past but results, made the be potential what based -- that what improvements deliver for I direction. X% XX-year but about been we have a have we different

growth years, the several . even longer relatively than on that, been focus think I flat. our past growth, in our has

it's interest And a to behind the I on attract along will the be we think to line begin So we is many from and combination a a that that simpler given fact top made the think and net disciplined in potential revisions transformation that shareholders And portfolio company, that more investors. growth deliver that year. of improvement as we've business more financial we'll focused initiated results, last now in engage the being margin we're attention I more our journey. understand

Olivier Thirot

I Peter it's and big several would add probably organic, focus, in it a times. discuss did about

You post of the transaction, million $XXX know are $XXX million, that cash we staffing to million. to in on probably EMEA $XXX going more have excess

We with can couple the available $XXX in are But not financial at as have million at balance capacities we of . affordable of capabilities were past. now probably ago. that and strong did basically we years even capabilities, of actively very properties to we for properties sheet, in us I look looking a terms continuing think a

Joseph Gomes

awesome look really unfolds. appreciate that are to Those how answers, forward and seeing I XXXX . Great.

Operator

of We'll line Steinke go Barrington Research. Kevin the with to next

Kevin Steinke

the wanted to the margin the factoring the will or how gross on Olivier, thinking back about that half? and outlook? XXXX. circle you to And in you discussed terms So placement of are first even education just there first a trend meaningful perm in think part outlook is about what you for mix as in, Or of expected the impact. half shift But gross the margin you talked

Olivier Thirot

kind to think I it's the first if business, of forma guide like-for-like our of improvement you XX.X% stabilization. a think thing it's second the call is need to XXX in what expectations points, thing Kevin, would mechanical basis about half when we is comparison, a would So The I this So this say basically, pro XX.X%, year, right? fee right? you for first about of

a more base an of So lower improvement linked comparables. to

factor not that type the especially on something I compute to, that we growth is that it's GP our the rate, education neutral. main mix would growth. dollar to we referring on is our did So GP basically say related pressure kind I and this have of in . The of was overall really putting

mix seen in fees for would by for is neutral biggest thing that would education. we our have the compress That's the what especially say also QX. driven would be I assumption moment, So our margin, which

business. basis that QX, much impact have you all seen we so know to in fee going Although it's are lower, the that have also from coming we XXXX. comps over the But think points have XX I now the don't

Kevin Steinke

just outlook? opportunity how And of impressive that and or continued the sustainable helpful. talk in obviously, That's a see strong the customers, and . you of growth growth really performer there to is education Great. the Maybe et Okay. existing runway for continues penetration be customers, cetera, new terms you there about there. see runway

Peter W. Quigley

last the business Well, filling to a we're X the for run. Olivier those in in pay education, very about and talking with both natural was more do good has extremely more clearly, comps, as there's is small. at a existing in sort comps rates had responding districts, new have rates and a But customers enough operating other fact of get instructor which seen Those we business have a business difficult But in many in demonstrated generating rates. well ceiling. instructors well We've steady classrooms. improvement seen as the that positions. positive. from not school market than which or the the best both is We've is is the that, districts, And pay as of items, the very interest the and rates fill large a improvements bill dynamic school the in

we future is for the So think education. bright . very

Kevin Steinke

Great. Okay.

of or education. the also but mix curious... just was like had The lower several a that, last in if I call on something out know to don't over quarters. there there's gross bit margin Just anything historically fourth seen terms than we quarter

Olivier Thirot

seen fee challenging I few but don't we down. reasons to like would it business, call the of our see mean, -- quarter, a going a pattern fee that not for was a more business out education see is our going more bit that It's deceleration. in We little in that have don't [indiscernible]. like Probably what a say up, NEC fee I on things business as as Yes. a But business. phasing we in

see The mix especially bit mix. wins, of second very the welcomed because more it's our a little and challenging, is of pressure, moving There we I customers, issue. long-term kind don't is have down. recently, don't bit spread factor see as bit of is the a mix, We a more pretty new little a but big little but that

honestly, on and fluctuation fee So looking quarter-over-quarter. that on QX, the whether or something see see normal I -- side more side at as mix it's the temporary that is the more we

Kevin Steinke

That's Maybe just a All right. couple more Understood. helpful. here.

for the in of but half trends quarter, So quarter the talked the trend second that the you're for saw about consistent pretty expected XXXX you to initiatives. revenue revenue first and outlook linked mentioned fourth growth transformational to improvement then in you the an your quarter and looking first you in you with be

contributing So traction to update initiatives second maybe the expect you just in give you on and us quarter? see various that that . the an there traction the

Peter W. Quigley

time in starting significant SG&A to sometime Well, benefits to as portion a saw. we've discussed, market later XXXX. growth, anticipating we opportunity . takes bit longer of our focus we're delivered show share growth taken take revenue program, in in to we're to that through our we for the Kevin, through we've grow enterprise than the think again, that second begin The for little pivoted up on in customers, sometime that XXXX, very in improvements approaching revenue and steps we'll our those the significant there's our we materialize hold. and SG&A it and a the is But quarter. second large gains efficiency that within quarter, And

Kevin Steinke

M&A Okay. That's the lastly on Maybe great. front.

you . to additional properties being now sale, continuing mentioned, And actively little afford talking you're Maybe might from just have in pipeline maybe the you're a or look on capital about of overall valuation and you the the side. delve at to you before. Olivier, larger staffing into talked could size that a targets You have that more just maybe of terms you you seeing? about European not comment paying with the properties. able some Are

Peter W. Quigley

Yes.

in pay the more be that going We're to we for and we for disciplined to in properties, past. that the be latter. going very going properties what high-growth -- of we're to it's I think the the demonstrated, than former kinds continue of to not looking we've high-quality, found terms we're

And flow, as what was in where deal our as we on so pipeline we're to were it and evaluating to but money. like still that portfolio. be. active addition be The it that's is But companies relying not period. the good spend the the would . engaging positive proactively not think quality There's to Kelly is we're post-pandemic still just going we not a sales

Olivier Thirot

referring still -- And to XX% we things, fact and have use, of the ago. on, that remember, are some discussing so we you of still the and have I amongst was time might we're we we -- on terms disclosing in valuation other rate internal -- return

. approach the we still have of terms that's So in valuation.

Kevin Steinke

all . the Okay. That all turn commentary. I appreciate sense. over. I'll makes it

Operator

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

Kartik Mehta

what in compared February your seen. or to But to January. what thoughts of hoping get outside changes maybe seeing about was you saw or reflects in I you've sure you're the of parts January seasonality I I'm realize you're bit a guidance seeing fourth in the any what early December? quarter little

Olivier Thirot

on One overall, end call XXXX, you a is revenue So at were QX currency it I on so look rate basis. of X.X%, It's of X constant flat we when things exit at that. Olivier. minus

of up, When first And sources, start I've at so of what a a January. manufacturing far, at couple to January, I far see in from bit it we for we then the heard So we of weeks light that's of the look end and the but at many least ended weeks have very seen later. we have where started some little first seen up have XXXX. that also ramp

in of XXXX, we the far SET, still little was business, XXXX bit the have at would say the Peter seen end OCG a high-growth for to mode. saying, And I of sorry. For what rest as -- similar Education, . and stabilization versus

Kartik Mehta

opportunities -- isn't would at maybe Considering like. think in, people what you later, where quality? opportunities? maybe little do look you eventually are maybe deal Or you good Is you will can to make you a see this a just then getting I And said year? of Or as a feel think quality as the economy it flow, is get as better going we're to for you good is the that come decision? do as environment the number it a a bit

Peter W. Quigley

Yes.

they enter past into it's properties, of rate as not market. communities. damper I going now and money environment, think low-quality the their might . the deal in on that a been an just be greater that interest part or off on that or folks come to that to, cycle environment continues in into talk companies state want lot conducive coming a be M&A But get we'll to year think the certain Based sidelines that right transaction, reduction of the the rate to see actually the the we flow. environment is a either has to investor companies current exit we of the we're big for permanent I of not stabilizes so and participation

Kartik Mehta

remainder European segment? business the quarter that you have EMEA you AP Europe somewhere And the will When $XXX for just what's keep and first X year that and right else? left results, Will question Americas you about region move still the Or of -- the and Olivier. last obviously, XXXX. on report now, was million

Olivier Thirot

it leadership question? during just be from is . As Or of sure, sorry. what is perimeter the I have so business prepared something Europe, missed we P&I. under it the is was so mentioned make this the have else, Mexico sold may Mexican excluding perimeter, to there of your was But going I something. to basically, and remarks, our

Kartik Mehta

was think just I No. I reported million, comparison, $XXX of making about $XXX as you sure Europe talked kind a so... million

Olivier Thirot

Yes.

Mexican is So difference sure perimeter, we externally, of lower you the $XXX right? of revenue that is was part total not are basically main than the the to. can million The because deal to International. the segment our It's referring business capture the make

Peter W. Quigley

going And business operate our to OCG continue is to globally.

Olivier Thirot

Right.

Kartik Mehta

Right.

right? segment, reflected will just business in OCG So be that international your then

Olivier Thirot

so footprint Asia, our have or a business, MSP, extent, in OCG, when through to keep Asia relevant. in OCG a than the some BPO and we . bit we in little namely FSP X in Pacific Europe Oh, similar

Operator

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

Marc Riddick

may the of quite sense where to circle getting emerge whether So a want getting and you targets that that or for your it That's that not been sooner be like by pockets potential clarification any Are that be may or helpful. breakdown. pipeline the to relatively providing particular questions and it later, greater actionable and lot super I wanted be vertical? to to I Are the you it answered, sense acquisition around than the like. my you'd are have on thoughts rather there of sort while you around industry regionally thank back be?

Peter W. Quigley

I've think continue would to world. staffing area previously, a be that excellent America as that's market fertile Well, an complement And U.S. others technology, and acquisition we're of the we in our because of very engineering, it focusing, in We in and said the science, to and practice, technology education that think would we the opportunistic. telecom, size pursue. soft be made to the North

deal on So be there's telecom ease and focus begin that for. bit to we'd enough historically little when up see things looking continue of we that that assets kinds will been we high-quality that think that the a to engineering science will and flow technology

Marc Riddick

wondering strategies you general feel could gears, any you're was tweaks shifting if environment what see you I to or of sort of begin looking wondering with then And client and engaging share pricing the on everything adjustments at if that's going or any thoughts navigating for I demand you the Excellent. as environment? was we're with year? sort about are how any and/or go-to-market the If we in changes as of sort that there approaches particular any potential through.

Peter W. Quigley

that anything to, consequence don't of would I Marc. think point I

we're and due I be labor there for are are and that. demonstrated the able where pockets there in competitive think where also in And the to to it that get think, continues challenges calls decline environment navigate I through to the market areas. But price pricing historically landscape demand the tight. have certain

turn finding often So small help we going continue in improve, struggle while macroeconomic the something it are they'll to in to is haven't show and enterprises people with. to seen as demand demand large yet, to up that that conditions hasn't necessarily Kelly -- them

Olivier Thirot

it look you are margin something make P&I are, is we SET and our to spread get spread understand and that I and in the even at bit. mean sure where Yes. we stable when much our pretty a up little

seen erosion that have translate would some of terms basically in not spreads. our pricing we So pressure anything into in

Marc Riddick

I would bit any, there, a I could speaking, the opportunities if any if updates of you if wondering then talk around could be that you any great. client changes would AI-driven didn't there's bring up, be you remiss Or topic if about but relatively opportunities? Great. thoughts update was I provide demand or and little And heard revenue

Peter W. Quigley

Yes.

So very not is that we're AI. But customers I early of lot there waiting. innings time a in activity, it's talking game. would we're still about spending say with but

have our our other like the off we that AI using UX now. portal So of our of productivity in and parts operated. But it's customers operations a a with activity we in practice. that and It's customer-driven as AI we're Helix right lot Kelly analytics still recruiters have particularly and use OCG and technology in as of and used operations improve Helix our our to well not salespeople, face

But a there conversations, are of lot lot of a interest.

relatively we've relative technologies to Arc help other with early and customers looking can platform. And launched of this the is small and have they're platform We talent Kelly program for experts because demand AI are for solutions. a got still them program that all who internal connect to have on in AI. who that their But or customers space,

Operator

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

Peter W. Quigley

very Okay. much. thank Kailey, you

Olivier Thirot

you. Thank

Operator

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Kelly Services (KELYA) 15 Feb 242023 Q4 Earnings call transcript