ASGN - Earnings call transcript Q2 2022

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Operator

Greetings, and welcome to ASGN Incorporated Second Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Kimberly Esterkin, Investor Relations. Thank you.

You may begin.

Kimberly Esterkin

operator. you, Thank thank Second and joining today us Good XXXX you Conference ASGN's Quarter Call. for afternoon, for With me Perry, are President; Ted Hanson, Chief Executive Chief Officer; President. Ed Officer; Financial and Vice Marie Executive Pierce, Rand Blazer,

we commentary forward-looking our started, everyone contains would to statements. like Before remind get that I

press Although we these from materially today's they on do SEC described those Certain of are statements and our are and uncertainties risks in differ to call. believe this obligation results and as And could these risks filings. are assume uncertainties. not made such, to reasonable, in subject release our actual statements. statements update We any

non-GAAP also For be EBITDA, in your Relations website adjusted measures section certain comparable Executive today's and supplemental our Please this supplement income remarks our Reconciliations non-GAAP adjusted the between the that and we call, intended now Chief materials note will can referencing such to are on free will Investor net call prepared and to are measures be turn cash as over of These Ted found investors.asgn.com. measures. GAAP release. convenience, non-GAAP at I measures Hanson, included Officer. the flow. GAAP press in

Ted Hanson

ASGN's Kimberly, Second Thank for XXXX you and you, Earnings Call. thank Quarter joining

our sequentially, Government up by as of and billion, continued difficult X.X% as end results, our evident from Commercial year. driven well a high year-over-year segment up our Federal year-over-year quarter XX.X% guidance had As calendar is first range in $X.X totaled second we of segment to second our the despite comparable. strong the surpassed the quarter and half a Revenues growth strength the for

up Adjusted consolidated accounted of the for remaining sequentially million. our Government was our the XX.X% Commercial Federal revenues. accounted surpassed while year-over-year and Our X.X% revenues, to $XXX also for up and for total estimates of quarter XX.X% segment XX.X% EBITDA segment

Conference in by this we closer our goal targets at brings performance Investor past X-year X-year important is Day model. unique us results, $X An we component trend September. our ahead to continue our revenues strong billion and XXXX. these achieving out to laid in Analyst This goal With to our deployment our of revenue and our success of

solutions provider markets, government free and of our growth and IT of business U.S.-focused As commercial trends. include our flow services our steady has expansion and and achieving and a not revenue to history is the margin continued growth. leading above-industry end These trends but also just predictable cash very

EBITDA XX points For margins the XX.X%. quarter, improved basis adjusted to total year-over-year

an flow was of from XX.X% million, cash prior period. year over operations continuing improvement $XX.X the free Our

Given our strong free the cash our shares. market been conditions, have back buying flow and we actively

yields The replaces in which maintaining of XXXX. just $XX.X pace Board to thoughtful the we plan, During new value that Directors in us M&A increased view while quarter conditions our long-term repurchases take program expanded $XXX approved we of of earnings million million the market the release, advantage the X-year approved plan shares. share stakeholders. and $XXX purchased for quarter, second in best December allows repurchase announced approved in today's million new a our And

cash of performance which execution, X today, consistently our across of our growth deployment segments; of is will resiliency evidenced our the include: These us cycles; the to all and discuss our X market the which our strong quarter unique third, mind. we one, generation deployment themes strategy, us balanced interests but which second, positions navigate act As flow best of stakeholders. flexible top free and strong model, and our enables stability second by in capital to remain successfully key business

largest services companies. XXXX themes by discussing and large segment, enterprises start our these Fortune Commercial, So and which let's review

top achieved year segment's accounts insurance last in growth of our amongst and increase year-over-year management an our quarter commercial banking telecommunications had Growth XX.X% largest this technology, of our or in very QX the our in our we increases for segment to revenues double-digit exception quarter. achieved X growth consulting In of accounted with specifically, growth Systems, segment another led performance vertical with largest revenues health retail greater both our of million, for reflected of technology media IT $XXX.X Within Progress rates. industry From the industry of staffing the accounts. in and materials. an utilities, in with division, double-digit by industry strong and consumer quarter both strength accounts. had provider be and accounts Commercial energy, and accounts Commercial Apex discretionary telecommunications by wealth XX.X% revenues with and care driven TMT all in strong for services, with growth and particular, consumer verticals Apex services. both was and achieving Systems payer vertical, financial perspective, strong fintech again across our sectors Improvement and work. all Our even staples. industrial continued over double-digit

business the Adjusted Finally, high-margin accounts basis Gross offerings our businesses. aerospace business from the our IT the Commercial permanent with for consistent up and growing digital margins consulting, margin were source prior placement prior accounts, we defense consulting our was of growth relatively by year. in while creative important commercial year, of points an services driven EBITDA clients. mid-single XX.X%, by our up segment value vertical ASGN's was led were provide and remain QX. contribution marketing XXX and government digits versus

analysis architecture strong quarter, a the translates which $XXX.X totaled This mobile development, particularly increase an new X.X:X from led For and million, commercial engagements XX.X% up performance. for derived commercial year-over-year. year-over-year. data had in for XX.X% bookings, $XXX.X application cloud We a of quarter web, million, our totaled consistent commercial revenues consulting's book-to-bill QX. work quarterly into migration with consulting Revenues quarter, of the and consulting and our

ensuing will commercial consulting work of given during quarters, book-to-bill amount that commercial our As that a reminder, any the we new our for consulting's won calculate quarter of the to over executed revenues ratio the as quarter. bookings, be

Our business digits growing sequentially, and pipeline are remains our actively improving of strong, double we capabilities.

acquisition of ServiceNow first Apex dozen beginning provider. participated GlideFast as capabilities. client pitches we the of team a our Services. with expanding in week their our Elite ASGN, closed July, officially the than more part within And Consulting of an of At GlideFast, Speaking

are We new not due ServiceNow. to the surprised by this for business demand high momentum

In customers fact, even consulting GlideFast, implementations. ServiceNow prior our commercial asking to acquiring were for

contributions call. further our ideally acquiring business We industries growth of consulting GlideFast's capabilities expertise, pulled fits be across a go-to essence, we see Like of that aligning and workflow business revenue spans account streamlining a our its GlideFast's consumer Systems, For familiar, quickly from amongst operations, synergies services, other of solution in system financials IT are new provide The enterprise's the offerings with that those in this has Apex our processes revenue workflows jump-starting immediately stand-alone become digital Pierce and that business with In significant yet to and M&A offering will quickly is ServiceNow to its not automating cloud-based and throughout can enterprises TMT digital in-demand operating of worldwide. that GlideFast's account verticals. its with Ed acquisition strategically our later the layer multiple ServiceNow on platform and GlideFast access anticipated XXXX. revenue scale. at GlideFast System's large portfolio. By detail base. strategy of Apex above base current ServiceNow GlideFast provides XX% client

year-over-year, of Let's intelligence XX% totaled to Department an Revenues acquired mission-critical segment, of now the combination driven increase organic million, turn XXXX. growth Government we the for the businesses agencies. the in quarter provides impact solutions and of of a which $XXX.X Federal to and civilian Defense, community the by

mix, We speak half reimbursable which we this contribution and more businesses including on improvements a the forward on adjusted types, carry smaller also Ed experienced will margins in than related also reimbursable as for spending the was AI/ML pull the contract, that shortly. lower the Federal better-than-expected a and to a the from EBITDA segment's Government year. the prior were of contribution cost quarter second up to year of acquired which Gross contract from cost contracts, higher-margin in XXXX. other margin compared business

sign cybersecurity, AI/ML spending including is continues New in and already are a were basis. government new digital drive and trailing healthy to million, of X.Xx XX-month positive on which for the in that are each At a end, XX-months focused, through revenues. government ASGN of a contract of book-to-bill coverage seeing contract ratio contracts quarter the the come the up, $X.X Awards transformation. areas budget, billion, to quarter $XXX.X segment's approximately which under awards speeding we X.Xx:X translates trailing ratio a totaled backlog

and Aviation a Army's quarter, the our the cybersecurity During of support which new FCC to networks; and of capabilities; to States the recompete task lastly, Marine for a Office readiness we Operations, included and Marine strengthening in training and supporting United awards efforts a building contract within their order new NOAA's contract fleet contract development; U.S. Corps. optimize by contract help support improved modernizing for and their some a capabilities application tactical

by the addition, engineering businesses growth contract during digital recompete cybersecurity, the with enforcement in organic and DOJ, saw quarter. and growth solid was including along in growth work, In existing homeland a contracts justice, law transformation This with fueled systems other contracts. solutions

second third and XXXX also to DHS law our quarter quarter and results the CFO, With Ed guidance. new enforcement call turn I that, Pierce, will our over the We with discuss state work Ed? won agencies. to financial

Edward Pierce

everyone. afternoon, Ted. Thanks, Good

and our performance for the Commercial margins. end earlier, our of growth and the solid estimates. our adjusted growth double-digit of quarter financial high Government of double-digit EBITDA segment This mentioned second our Ted our low reflected performance As gross exceeded guidance Federal in expansion segment,

was growth expenses of web commercial year-over-year. to double-digit mix. for margin, and was the segment commercial Gross third-party resale XX.X%, last commercial placement profit, For services, Government the low-margin web QX of the businesses. $XX.X than Government contracts, mix. expected X.X from creative from the the revenues. revenues percentage level contribution coming for streams, including reimbursable expansion of higher consulting, basis XXXX; the largest from segment in second expected expenses XXX year-over-year grew renew permanent our margin million, our up $XXX.X that we growth of the Both staffing marketing year-over-year of digits, up reimbursable software segment not a double points creative a as were contribution business over occur year-over-year. the cost divisions Revenues than last points $XX.X mainly included three, and included Gross This estimates. under in low-margin and higher a expenses of business in high-margin certain in EBITDA XX.X%, year. XX.X% Federal that of guidance acquisition revenue were million reported Revenues that basis segment businesses, organically, SG&A contracts. cost Federal acquired services. year. for in because the result IT segment do driven contract Revenues our highest and services SG&A year-over-year the changes for Revenues up in $XXX.X high-margin $XX.X digital million, $XXX.X marketing lower higher to quarter, and than income firm license in were adjusted one, basis Revenues year-over-year. businesses margin margin Gross the was gross The were quarter program and rates the expansion under year up of million certain from: not and a from program; which fixed placement quarter Gross were included margins which from on $X.X at year-over-year. year. Commercial grew chose of units last carry and permanent business our of services. our acquired from improvement acquired price half year-over-year. $XXX.X from QX consulting, million, profitability up second purchases in $XX year-over-year for million, a XX.X% in for quarter up million million points integration result the the the revenues XX% XX.X% were the operating XXX a from up billion, commercial resale All Commercial resulted two, our include digital million consulting, XX.X% improvements up by gross with revenues higher were high-margin XX.X%, were service as reported was up all $X.X XX.X% of adjusts

and million, end, $XX.X EBITDA reflecting was our expenses basis were year-over-year, were revolving was estimates At in a and borrowings cash primarily from to result guidance under expenses, $XXX above SG&A quarter million, XX.X% gross $XXX.X facility. XX.X%. equivalents higher-than-expected improvement EBITDA credit our there these million our were XX a cash continuing in outstanding point adjusted and margin Excluding up revenues up as no of Income XX.X% slightly year-over-year. profit. growth Adjusted operations

debt secured ratio senior Our X.XX:X. leverage was

$XX.X stock. During the XXX,XXX shares GlideFast. we the spent of the we Subsequent spent of the approximately quarter, on on the quarter, million to repurchase $XXX of of million end the company's common acquisition

for trends, third estimates the are and materials. forth assume the XX in contribution quarter our million half earnings revenue financial the days estimated acquisition current of production on consulting second release and estimates year. acquisitions in quarter the based These recent of include earnings supplemental Our GlideFast in from the set are made of $XX.X an federal and last X billable

the expansion gross placement EBITDA full XX% on growth commercial to $XX.X of growth a $XXX margin point XX.X% an quarter, and $XXX the $X.XXX projecting revenues, creative with implied digital rate mix estimating driven currently XX%. mix million Ted? of estimating our closing Thank margin year-over-year of and operating XX.X% our and we're back income we're support marketing I'll in placement of year sustainable of business. in we're for for million a consulting, last adjusted sequential offset XXXX, adjusted above We're projecting by platform XX.XX% estimating the of and With third X.X to the revenue EBITDA investments in respect the comments to to some We're of revenues to permanent For permanent an billion for made excess over earnings higher in slight expansion in We're growth your margin billion, in a is Ted $XX.X updating million our XXXX. time. remarks. revenue as high, drop million. turn $X.XXX to you The to call. partially compared by net decline revenues. high-level call

Ted Hanson

Ed. Thanks,

footing on support Following the solid XXXX ASGN second most first a ready and enters half, clients' record-setting half needs. to our of business critical

to not first execute immune, recession we today's continue message are necessarily we call. While of strongly, the

model while the deployment certainly automatic EBITDA before. in Last for ASGN remarks. areas. each business throughout market This also have our faster this today's in and our resilience, cost diverse third not better business several market has numerous is scale down us focus revenues, revenue and Our the structure. model time due the solid positioned variable that better maintaining throughout streams through provides prepared margins the ASGN's than cycles, area sustained to is stabilizers recession performing support with of highlighted today we second least, stability cash we and IT unique flow managed but growth The than solutions of today's more ever cycles. services and very maintains

pursue each technologies looking of IT initiatives. to their our digital strength operating of sources model of with a economic actively combined IT business accelerate adopters and industry-diverse who U.S.-focused, and are work, to quick large enable high-end revenue of our new service to client federal countercyclical Our us support offerings base, provide stable and our commercial transformation aspects our and These during to quickly government downturn. clients, an modernization

customer signs Importantly, no of spend is showing slowing. IT

economic and transformation, protect accelerated words, the platforms While in and locations one us you to has seen processes some that other across see in that the cycles, sustainable is pandemic pullback that with not in pandemic business In we technologically digital spend, savvy, and networks has may is taught automated changing. multiple place. have that that trend agile systems secure has a in place its do past IT

in we up as that XX the contracts of outer the into streams ASGN and pyramid great technology And automation, work. company's technology machine have their cloud fact, higher-value spend centers. which providing as Consulting technology in Case business. IT rates all increasing consulting point is Bill into are now areas they years. move computing, artificial naturally and often and strength XX the months, to our other cost investments on are drivers excels. intelligence revenue visibility months CTOs leaders learning, extend and in In not see business focusing stable

Our their digital are work. road bidding and in actively new commercial customers consulting maps confident out

solutions seeing who These commercial that benefit and on both the customers are ASGN markets and us creates federal for the the also consistent of mission-critical demand the for favorable flow-through the of budget. government end dynamics solutions services IT long-term, contracts new deploy government provides. Our

resourceful conference Pierce's past of Ed and ready to assume advisory to with as and to I'd I also On opportunity by Ed strategic role have take that, Ed, the Chief open for closing, only ASGN our from marks nearly your August, with the like thank been ASGN, the have a is that wish of With last great up had as who in year. for retirement. the Board a through partner, contributed to Before CFO great Operator? be side note will officially call today's a but well-deserved friend. you call company, best member CFO enough retiring cannot of the a on end excited you a our behalf as will the a Ed Perry, the decade wonderful our position. his Board let's over decade, side a our our I earnings work he to several as of guide and After not Officer. quarterly call Financial role has CFO, that you previously this and entire Directors. Marie all this questions. you months,

Operator

Instructions] William Blair. comes Mulrooney first question with [Operator Our from Tim

Samuel Kusswurm

Kusswurm is for on This Sam Tim.

to both your but well. you the Maggie Ed. appreciated wanted years over I happy a retirement, you and for Tim Just speak and wish here, first help all I wish we've off, just I know

Edward Pierce

Thanks. Thank you. that. Appreciate

Samuel Kusswurm

good a be one would this think actually. I for question, first Our Ted,

IT story your past You less being about clients. an spoke spending and by the about employment ASGN more in

what relative of spending hoping IT seeing was comment with a currently to if respect I to on just you months ago. So you're could couple

Ted Hanson

Yes. I too strong. I think it change couple terms mean, say there's a months now -- remains of would in don't ago, of that much spending. Well, it strong it's IT was I and right

less Fed. more that You're said is is digital Commercial transformation for and driving right, in in employment that about many both Obviously, services. business general statistics we've and for customers' barometer the our better times about need our IT

our And third. landscape And steady so but second quarter in it's also for there. pretty reflected we see guidance the our think I performance for the a

Samuel Kusswurm

of being the the were to see and a about these you're X areas, Great. Appreciate if of areas that. transformation to workforce first? area digital management, in Maybe those I IT modern one in think enterprise, right see then side big slowdown pivoting if then can Commercial business, you also which particular your in seeing the on services spending, would comment about And expect now? you that you what

Ted Hanson

Rand, do that? talk about to you want

Randolph Blazer

Well, slow I'm that. a good saying we has workforce wouldn't probably last down. seeing far, could lights other But bit, would past the one keep management that. slow the I is, think bad be leap necessarily. quarters. the that would delay certainly certain it I biggest on taken It haven't down I'm But that's would are tend but so the conjecturing the because few mean, seen might enterprise, in you things surprised. see I times and I they would in. and there year think Digital apps infrastructure-oriented to that in on. not have over taken services putting be because Modern we're have those you answer -- times to more and the continue and even I transformation

Operator

Our Tobey Truist Sommer next with question from Securities. is

Tobey Sommer

I different of the increased and of in the mix a is businesses If in consulting probably guess at From of business if of high perform one you a the the downturn? area. the now we portfolio and kind think notable we of most materially changes, the fashion exposure that the the complexion sort replicated XXXX arc do would collection economic level, look the

Ted Hanson

because my commercial the rest the [Technical services the Well, it reported... or than be, the business. mix. I And Obviously, of been has that's a faster would consulting mean, of Difficulty] slightly growing much good question, Tobey. same sense better the would latest be

Operator

mute you Did operator. is This the yourself? accidentally

Randolph Blazer

well, Yes. a just Tobey, more And for let me and was then you take think can Ted, arc on. Ted that one, of is Okay. us I -- -- Ted by the hear that That certain did Tobey, economy. segments influenced maybe off? minute. come

IT all down were think our this of So at that airlines, hospitality, right affected the is And beginning period. which energy spend, call. thesis in XXXX COVID really it their I

continue was there. So business. or what happened that to digital to more for I It need your think the transformation wasn't the digitize need

I unit much And certain did think not consulting it not. industries. was certainly periods, those really if remember, our didn't in we that you get hurt just

more the And today help -- was segments see. double-digit-ed again, so retail I energy but everything, them reported sectors, we've bit, consulting are accounts, information. industry-specific side. prices grew that staffing digits We see background in Commercial reported gas their Obviously, as industry segment-specific would little think the accounts, a what than we also and in affected? double right, What top spend. quarter, -- we've Industry in in Ed's actually

you does So that sense? some give

Ted Hanson

thing only was and you industries Rand right? Yes. essence of think I what to what stop the that, did, echo the would just go to kind add saying. you like of that I full see And a Tobey, was said, Rand to don't And

some for pull that we what to full was a do think industries I into unique if you And will. when little I but And do. there stop a you you mean, they a continue so while. back see had recession, get a to need event,

Tobey Sommer

is pull which degree do your you sort of and playbook, that disposal you terms And and levers anything there at -- internal would at from them? your in of Right. own the differently the would sequence and

Ted Hanson

No.

period had pullback those revenues, year, and certain the we that EBITDA in of business well much I in adjusted QX. for up then. parts our Even -- a our actually in think in business were we -- really I mean, pretty look, was we the the managed -- was though of flat QX,

Commercial We've quickly we react in which to business, the and do that. pretty Federal, got of invest the opportunity automatic to we'll part continue is can our there. obviously in our We stabilizers if

this I in remarks, through -- is first our not we think like this. the time we've said been the

if understand to. And what do we so need we to

I so And the in think And that future. managed near well. were if is playbook to something think the here I that think know we that else I we happen what --

Tobey Sommer

can one Okay. sneak If last one. I

think is I'm sure to a right am, bit assumed I if mentioned kind it about lower. what assumption? perm assumption you're more be Does as macro? not you that. I'm Or based could part guidance us a client color about that hearing? conservative of little give of But behavior, that I you reflect is that just on

Ted Hanson

Yes.

think assumption on in a conservative Ed, just based rates. that? I to do growth talk rates, But want we growth expect it's what you about

Edward Pierce

a Yes. that perm I guidance down would step placement high we not anticipated perm thought watermark QX. to was degree down estimates. out mix. step the when originally that we put us in but And in the did mean, we for it QX look, our

probably X.X And point, QX in and to another step anticipating QX. in about so it's X.XX that Tobey, down we're point going

levels will in of us mix. probably that So put the historical back terms to more

Operator

next Our question is with BMO Jeff Silber Capital Markets. from

Jeffrey Silber

acquisition, Ed, again you specifically when you GlideFast the the business. my And expectations of your is just quarter. let talk me reason -- in announced about I retirement. luck curious I if with best your thanks could you came trends out when intraquarter the for think wish in and express Commercial I you just ask was

were going reported EBITDA numbers just better. up was things of Yet end the much the guidance. you adjusted Did I in So and really should think June? be was ahead pick to in revenue of I thinking high be line,

Ted Hanson

first acceleration through the just I of -- all, right think capturing the market performing and it, of end our the Commercial their segment, great. is is quarter. Jeff, well, continued good. The We're

fourth certainly going on we and thought was principally that really those here or got in performed the the business fall weeks say the of the may the quarter. than some was thought into So sum I But revenues of last few the X that mentioned Ed was across contributor. the It the better I'd quarter. think of board, we that there third what in we piece things. federal one we

would don't surprise. I if I a So know it call

we on the the But best both the of last progress X think quarter. sides I announced think the you look when I the of continued our we piece. through GlideFast weeks house to gave business

Jeffrey Silber

And about Okay. account That's just your recruiters, internal either helpful. is question managers, et own my from really follow-up cetera. hiring,

how be at Is it you would that's about If great. can slowed all? just been Any picking color Have you trending. up? talk down

Ted Hanson

Yes. you Rand, that want take do one? to

Randolph Blazer

count the We quarter, and recruiter the head added in both Yes. second consulting on account side. management and

bookings other we that we're we obligations as have certainly clients looking year, and Ted through believe, strong So our demand with through go still as said, we the at our and things.

we so And needed count, to we and head did. to continue add our to

Jeffrey Silber

expect of continue to in do you year? And that second half the the

Randolph Blazer

I said. Yes. yes. the But would what well, say, is But -- remember answer Ted

recruiting workforce So to have mean, we have We have just-in-time workforce. to. second can what we if we none, right? to own call automatic stabilizers. I mean, a our that we stop internal on applies dime a I

But continue to on we're we're expecting to we're head grow, going that So based to going add yes, count. nimble. yes, to guidance our -- numbers, we're we're ensuring and have

Operator

from question America. Bank next is with Our of Balsky Heather

Heather Balsky

and question Marie -- on all, first first retirement, my and Ed, the on the role. guess congratulations to congratulations I of new

the regards So to the was permanent my question staffing with and step-down.

of this a business on have? piece could that sort risk this does of, think business? people Sort -- of permanent do think that perform the normalization? think you of a how that natural downside you What's macro is of downturn? Do the do how And kind of a in the is you function some concerns

Ted Hanson

total steady. first -- business, of reason Well, of percentage the are take me placement The the business part the they're revenues, very our is I of part down the the faster. let of permanent that. mean, part the although is of small growing the is a rest as they're biggest business a

of historic In of was periods, recessionary mix to principally that placement come off. in permanent So seen one you've the be total. revenues that's why first the permanent a just there versus the step-down of will

to revenue And early a -- clients but of we an traditionally cyclicality anything respond with than more that. to seeing indicator. it we've obviously, this mix it. as this manage -- want you that. piece -- service. our Again, it, of need because of it's us, to want be We're not our comes why that's And portfolio always so it also is to certain see want we that would We to be But able for total a else. would

about that So of invest. pieces we're of manage various the we think where aware we that and as

Heather Balsky

longer how about customers a Just product. the you as the of thinking such ServiceNow And term sorry, brand? the the acquisition durability ServiceNow ServiceNow product. for demand over and are -- or and product for question the -- or the ServiceNow sounds acquisition that in GlideFast a your I with comfort it's the asking relationship are like on fact it guess your the we of should specific kind how

Ted Hanson

Right. you to Rand, want take do that?

Randolph Blazer

client ourselves think fits. like even -- if I listen, Heather, it our are ServiceNow looking is before base how seeing at technology the and acquisition

vision integration sit systems a a digital and smoother ERP a across what and of view provide ServiceNow layer for your provides can a and that that. information have and We can sharing to that simpler similar has across it data

go IT roots, looking will and to just a And trying the is its starts. transformation I which client more base through. our where apply part companies than management, at it, to it's think So determine of early it is project its digital

us. join hear and were acquire was take of you best and what go if it the their clients, of from to made out them them nonglobal sense around we one capability the more get fortunate take GlideFast of the approach in here. integrators enough to ServiceNow and with vision We our to So technology. you

and something I nice think thinks He in the or ServiceNow So I'm -- is that inning we we're going quote McDermott a have technology life. like Bill corporate it's from XX% believe that. application of we're the to America. second that his run into in

So right or whether he's know. don't wrong,

additional I its is and early in think going usage. the phases, it's product clear it's and development through

our the see in from from it marketplace. hearing clients. hear we're ServiceNow. We So it We it

-- potential couple step. pipeline when and so weeks, client first not Ted we that And his base. made And in I we it, and here knew the bought comments in even took we the think and clients we to had their -- of outlined their look, mention opportunities some

with really Heather? smart move So it answer I that. like decision question, your to Did a seemed forward

Heather Balsky

Yes. Yes.

Operator

Marcon Our Mark next with from question Baird. is

Mark Marcon

Let been with again. with Ed It's decades start over pleasure the me a you. congratulating working

regards talk best. With IT what side, pay Apex an staffing? us little give on you rates in you're if of terms of core basis, of that's could seeing bill Systems, a that terms you the can I apples-for-apples about all And then rate any just the sort possible? side wish So bill bit the on in consulting to you rates and within color

Ted Hanson

we Mark, specific bill rates. and on don't release pay Well, information

we're lot work Rand maybe as were, up. to can give compared a you services. we where mean, some high-value our I and Just to doing rate we're But bill more add is in going journey on color, well, this to this as obviously, as consulting

On wage the manage there's to staffing back rate. able customer their been that but the to been side, inflation, and bill also we've

for deal supply as as inflation, go been with has to with able that that And And friend of wage here way, customer. our deal and so the kind back we've is to IT been tight. workforce with had we've in inflation

So think and work. expand trends to prior I gross quarter what But are that we've quarter been or don't margins and of able think that before from the the any we've our I those seen, there changed around kind that. maintain dynamics manage have the even or

Mark Marcon

mean, And consistent at a of on Anything that? could -- published just than give Great. bill can with CPI IT in higher staffing, just level going around up us kind numbers? the a or core then the sense I that's terms rates, even are of inflation you whether

Ted Hanson

think right? up least the because if going part wouldn't look in we same can And not of gross I rate, that margin higher. both. higher gross if the proposition the business, that staffing to a work decrement IT get it's But at obviously, which look, our Well, larger large were at be able they're Because eroding is margin. more, would having a our fight which the think at consulting you is -- the of in gross we margins, part imply value we I still the part, remember,

So at wage on consulting of margins that and I to business. our inflation we're would then tell things least those think you higher that able get some

Mark Marcon

Circle do? did How Absolutely. Creative

Ted Hanson

growth they mean, Mark, you -- were want there. talk I for I do mean, Rand, through accelerated Creative about quarter? was the to they Circle quarter. the

out By with we're in there companies. a that Circle. obviously large, on portfolio I our a headlines about the mean, watching. that's marketplace and going I not are tech what's think there are companies Creative the big part tech big of

digital continue if us. will, data things a is not watch. and point seeing are something to direct of around a in marketing marketplace hit, to to the that some on and you But So we you're advertising specific have it the them

Mark Marcon

you're And mean, with by the board so industry did it definitely And strong quarter, the pacing. through I across obviously, commercial vertical, Great. side, seeing on just not TMT growth the it. -- then accelerate

you the course, in of headlines financial a some that. out continue on should positive would there's watch said rates with expect lot seeing that, yes. like that Because that been -- going space to services, that some and banks. grow basically then, services I for have up, by What for vertical? CEOs hurricanes of are financial be stuff On a nicely. would the that But But

Ted Hanson

Rand?

Randolph Blazer

-- you strong. it's for the and And second well, in the very I mean, of I'll third very Circle? Creative the quarter, that Creative I first, well quarter. Ted comps comment quarter remind are last in on Circle second can Mark, fourth both performed year

a they're of So quarters ago. year top on very well performing strong

comment. thing would So I that's one

we can us. but bank the this the regional wealth -- an grew. see what good services, but and featured segment, management not also growing for financial the it just had as you of call terms growth industry also banks. time the fintech are big In vertical, We banks in We've again,

are back that second and so. route it and opportunities guess I I to still better and their expect can IT us I so for the quarter, their continue. in will there? has are are And earnings well their better But performed it

Mark Marcon

capabilities growth could can have? you be? that How Great. And big accelerate GlideFast, you much the do then much cross-selling there? How how

Ted Hanson

and business, sized numerically. GlideFast let is while a we say, comment Rand? for commented about Mark, that than number. it revenue has of would I and they Well, on market, too, is haven't I'll one ServiceNow of base always nice But account us thinks Apex' revenue together marketplace thing our Rand obviously, as because bigger forward the believe. we into And the portfolio the alone. say has that is about that's how revenues an in coming he But GlideFast's Right, synergy bring big enormous going large GlideFast, opportunity that they

Randolph Blazer

Yes.

McDermott they all, to grow you all and you script, with think GlideFast -- if And themselves. is grow our we faster than Mark. can ServiceNow we things the he obviously, I thesis it listen account said I hear Bill and Ted says, think our can base,

Mark Marcon

I of Absolutely. period obviously margins GlideFast that's why higher a part higher opportunity, of ServiceNow a than for wondering. And I business? coverage. have consulting long normal we've as have huge our it mean, it's can monitored Does your time Or margins? core was

Ted Hanson

Yes.

Randolph Blazer

Yes and yes.

Mark Marcon

year, the lastly, towards start then to the on it's more just that resolved. X.X And the government higher? of side, book-to-bill or great or Great. budget the will you during expect X X:X second the been see or that inflecting Would has half

Ted Hanson

Yes.

a good I point here. think, Mark, that's

at of benefit in be look XXXX. above. XXXX. in your Most will bookings that benefit that's But numbers yes, above, new book-to-bill to thing be of that here first that's all the the some benefit, There we and hope, booking come for then part and our book-to-bill are ratio and going XXXX, but and obviously last larger will numbers to expectation. new the and you're in at The of X is will later increased most of X.X see point,

Operator

question-and-answer turn the back reached Ted Hanson have closing session. like to end to of for comments. call the I the We would

Ted Hanson

look interest of of to the at everyone's you forward to today. in end our talking Well, Great. quarter. our We that's the appreciate third end call ASGN, we and

Operator

conference. today's concludes This

disconnect your time, and we participation. lines may this you your for thank at You

ASGN (ASGN) 30 Jul 222022 Q2 Earnings call transcript