Earnings call transcript Q4 2022

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Operator

Greetings. Welcome to the ASGN Incorporated Fourth Quarter 2022 Earnings Call [Operator Instructions]. Please note, this conference is being recorded.

I will now turn the conference over to your host, Kimberly Esterkin of Investor Relations.

You may begin.

Kimberly Esterkin

operator. you, Thank Good afternoon. us XXXX full conference joining for fourth for ASGN's today call. and you year quarter thank And With me are Blazer, President; Ted Hanson, Chief Marie Chief Executive Perry, Financial Officer. and Officer; Rand

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

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

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

now will the I Hanson, to Officer. call Chief Executive Ted turn over

Ted Hanson

you you, XXXX call. Thank ASGN's fourth thank joining earnings quarter Kimberly, for and

I'm represented XXXX, for off report kick past to year we As the another that record line top pleased ASGN.

billion for reason our sheet proven expectations, sincerely the surpassed which up quarter be, XX.X% with ASGN efforts, and strong a exactly positioned and new fourth government to operational markets $X.X place, for to XXXX continued Our end the and strategy. embarked year-over-year want were of full year that results a strong in want team We leader After of in today. are the the thank revenues approximately revenue we year upon commercial great the represented year $X.X is quarter versus serve. our and team balance revenues fourth your annual for billion we where demand indicative XX% are Commercial services Commercial are our revenues full perspective, and in solutions for put to IT entire were we the us consulting. year as continued for months. total From compared Government improved the comprised revenues. while Federal results organic XXXX Federal in IT an Included track record. XXXX. prior a year or company margin These On largest $X.X laid the and XX.X% from The $X.X new profitability segment XX% out the our billion adjusted or of of of achieve of financial targets the a the improved remaining to three XX billion at represented a EBITDA revenues segment, XXXX, segment, XX.X%. basis, on September XX.X% I

in be As today, point, ASGN's inflection revenues in representing apparent will XX% IT revenues QX. segment of positive has total services hit consulting with commentary business our a

now XX% revenues review the will are We end, focus. from high let's work. quickly background, remain higher derived total of margin movement consulting With up pyramid our as approaching a that QX. our This

revenues increased segment's Commercial Fortune which both growth retail solid Segment XX.X% enterprises largely revenues double with quarter. by accounted on for division, rates X.X% Commercial consulting in over a of another the for difficult Our top growth of QX XXXX Systems, driven year quarter comparison. our digit and accounts, companies services and the last segment, predominantly Apex large largest revenues. had achieving

year-over-year growth or by achieved mid growth services we while low digit Growth rates grew media technology, in as with In our healthcare digit the digit energy commercial experienced achieved in the entertainment telecommunications Progress growth and industry. across expected, and services fintech growth single growth single digits, of industry declines vertical fourth government the media of accounts. and XXXX wealth had segment technology, industry, also our double our double and in prior by solid and led industrial and digits. year-over-year three compared healthcare sectors media accounts. high and with exception telecom quarter consumer and the amongst As industries with business the consumer digit industry perspective, and declined year accounts. double double in financial as year-over-year the again achieved verticals Financial period. digital marketing revenues five across in industry Services revenues including industry of revenue particular, The From well growth staples. driven management provider materials. and telecommunications year-over-year, to compared banking all largest growth creative their out as commercial was industrial an accounts TMT The performance reflected permanent placement industry year-over-year

services saw and year-over-year. mid a vertical and the our decline slight achieved vertical, this growth our business in which Within digit a quarter accounts. aerospace accounts, single for decline services government amongst Finally, was by defense offset business we

provide Our source meet were the span basis. of economical revenues continues price in which continues on year-over-year and clients' with trailing commercial due totaled decades, the increased expand consulting our our X.X:X up translates model, which intimate necessary to clients ASGN XX.X% skilled our favored offerings million and delivery remain and our important month fourth Bookings, consulting to This relationships, us to demands workforce for year-over-year. increased XX a a and clients our be XX.X% into to solutions roughly enables we also points. the organically. by space consulting of up solutions also which quarter, the portfolio, value XX.X% which at an $XXX.X book-to-bill

Apex XXXX, long term consulting customers services for commercial by We we continue consulting to XX% and year-over-year into role actively engage well. solidify our Systems IT staffing customer to go Fortune as as within count customers a in as XXXX increased our player IT

work six Systems, acquisition. base. during the its part while quarter, speak ServiceNow first has commercial net some the Let's through existing same XX our new time, wins Apex actively client for ASGN, our to GlideFast as our of GlideFast in at service about consulting wins beginning In months, with of the driven continues

an additional as to benefit, customers are GlideFast beginning Systems’ well. other embrace solution Apex As strength

was at end the of been clients certification the excellence Partner the January, overall work in the Our and team And with ServiceNow remain GlideFast achieving recognized pleased XXXX Segment growth. revenue GlideFast the Elite for Americas Year of as providing. has

the quarter, our work, two and we broader won consulting analytics fourth during data Reviewing contracts.

The first contract was institution has banking for a with of expanding Systems large years. past scope Apex three for whom its national the been work

its of contract, growth Now frameworks of will security our as new a co-branded operations. process their card and architecture help through the clients credit improvements our part accelerate and development we surrounding

a implementations, pleased as with company whom healthcare to large to XXXX won to our contract consulting second customer covers win were This ERP more in implementation Apex to during contract we cloud that will a and analytics optimize of analytics addition, chain, energy provider processes is regional the project very the resources cloud supply be its partnering their of with a well with enable the payroll clients data Systems in Also, and lines reliability departments. we a along in data healthcare conducting in the database. a human quarter. In fourth cloud. company, as will and assist This platform have their modernization a migration large new its finance,

revenues of by our solutions Let's to to Department XX.X% the combination now critical driven for segment, license quarter Federal the and acquisition. XXXX, growth, Iron turn fourth community provides to compared organic our up federal impact the the mission intelligence Defense, of Federal quarter revenues the Government civilian of were which and Vine a segment agencies. recent of

end on of approximately at quarter, translates New were X.X:X the book-to-bill contract coverage to of backlog a a Contract X.X billion basis. which month times, the awards million, segment's XX fourth for a was the of $XXX the XX or month trailing healthy quarter trailing revenues. ratio $X.X

is a prior the indication for Department These that contracts. year are Homeland well an positioned Security priorities. passed Department Affairs budget omnibus ECS of toward increase that our an few high, benefit continues all which is XXXX agencies budget. Veteran recently in additional as X% of to of in three higher compared toward governmental the at of of to the Defense, of is the an agencies including government XX% the to government's the incremental XX% and allocated time Department a XX% for win federal The bill new pipeline Our XXXX, an opportunities from than allocated budget segment

overseas. accelerate department's sensor integrated So let and past won Department new are of Air the meet providing for contract source which new began that with quarter. a provide to [OSINT] work Force, in secured specifically training. innovative to US applications we work operators the and of the amount intelligence the and during tools the on some AI/ML cloud of Defense a ECS the mission. analytic activities open sizable me execute provides quarter, tools to In technology Air examples and commercially available analysts, funding smart for [OSINT] help the Force fourth or also ECS

fourth with XXXX contract an a we of government quarter, won Speaking ServiceNow. new datacenter through segment, enterprise Manpower example of This the ECS in DoD, acquisition our our contract of which federal the of provide capabilities is to deployment full in ServiceNow gained Defense the the ISM.

and now of Vine integrated is ECS Iron acquisition actively as Vine pitching business our cybersecurity Iron experts into of new Lastly, fully together. team is progressing The planned.

Iron multiple scale teams. of Over pursue capabilities the have and full deals the three Vine ECS to months, cybersecurity past both leveraging begun large

XXXX the CFO, fourth to and quarter With the guidance. call first Marie to that, results over I our will quarter turn our discuss Perry,

Marie Perry

It's to with speak great Ted. Thanks, again. everyone

$X.X For basis. the an were revenues quarter, billion, as up fourth year-over-year reported on X.X%

Revenues XX of to on from in estimates day federal basis, our X.X%. were was $X.X a Excluding were high segments in same for with $XX.X revenue the that and both overperformance included past our end revenues contract not acquired estimates. months above the million growth the quarter the billable license businesses in on a million contributing included and guidance

to million, on high million, year-over-year as the organically comparisons. up segment X.X% consulting, turn from largest our XX.X% Revenue from of difficult were revenue segments. streams, let's $XXX.X Now reported were $XXX.X our up commercial margin Commercial and Revenues year-over-year. the X.X%

year-over-year. Government up revenue segment our Excluding $XX.X of Revenues from Federal year-over-year. million, the XX.X% were $XXX.X consulting GlideFast, from million services contribution improved XX.X%

increased Iron million, from the Vine contribution $XX.X for segment the Excluding of X.X%. revenues

was for revenues, the Moving margin placement a higher as and was expenses permanent Government revenues expense mix, segment work to of Federal margin SG&A points fourth also XX from gross Commercial of guidance margins. for total is basis lower in including commensurate in and with On over growth. gross contribution the business increase and was in a included noted. Federal the $XXX.X which the basis points XX.X%, from we revenues year-over-year. expenses in last the to estimates. year-over-year. slightly primarily down permanent to SG&A margin the up to of the million from not basis, that of XXXX than due quarter year-over-year, our mix carry in do XX reflects growth investment a XX.X% and revenues, the quarter was related segment basis business percentage planning also acquisition, XX.X%, mainly strategic integration up decline expected XX.X%, declined fourth year-over-year of The due down on consolidated compression placement $X.X margin support the expenses million, in as were gross XX future Commercial XX Iron By less points This include which mix to contribution year. margin in slight basis contrast, technology gross points Gross Vine. headcount

our guidance SG&A the quarter. expenses, fourth for within is these Excluding estimates

intangible and to quarter. half expense which operations and both adjusted margin its $XX.X on outstanding due assets cash year of $XXX.X the impact As recent we rates, X.X% million guidance interest roughly are million, Free outstanding. At cash related had cash expected, was estimates revolver, from increased of to an $XX.X million during previous quarter for $XX.X Amortization commitment of higher which was improvement our of within acquisitions. rising EBITDA million the $XXX end, our Income for quarter flow XX.X%, from was increased over continuing was our level XXXX. our million equivalents and debt the $XXX million. totaled interest were

million the common repurchases during $XX.X the XXX,XXX approximately fourth on deployed also quarter. stock of shares of We company's

for shares for the end million. million authorization. million X.X at total year Approximately repurchased the under of $XXX.X we prior of available remained shares year, Board's a full the repurchases For $XXX.X

Turning to guidance.

of tough include faces the revenue three $XX margins seasonality. in with are a Our for mind after XX to QX supplemental from XXXX, first an than million revenues the days their trends, in forth It is and in and quarter release These first on quarter first materials. of financial estimates acquisitions of QX XXXX billable consistent made the the is current set and estimated of that which the quarter more comparison but XXXX, to quarter, also XXXX. assume production the estimates first quarter keep contribution of days fourth both are important XXXX in based our which our earnings traditional outperformed

to same fourth on the difficult comparable. a moving payroll quarter to at year, the year margin on T&E of a In revenues background, Historically, first from we the was outperformance revenue EBITDA impact to days every an of permanent addition, each beginning quarter occurs billion, placement the the out of quarter the when to adjusted With for has implied of when first rate $X.XXX of the lower the payroll XXXX, the tax margins reset absent payroll declined ASGN's of masked of the tax first of reset. are tax the and due X.X% revenues coming $X.XXX billion expense billable that quarter, pandemic. growth and by estimating number X.X%

net $XXX.X to $XXX.X million and estimating are of to EBITDA income million $XX.X $XX.X million We million. of adjusted

expecting EBITDA the do, are sequentially leverage XXXX, due from adjusted time. and expect fourth improved to growth to however, from tax XXXX to over decline primarily quarter benefit payroll first of margins quarter of We reset. We operating previously the mentioned to

Thank to Ted? remarks. back call closing you. Ted some I'll for turn the over now

Ted Hanson

Thanks, was record another for of Marie. year performance XXXX ASGN.

full year quarter fourth and government solid. end and remain that Our across demand commercial indication are results markets an the

our third with new for trailing moderate month remains the space, and all of an combined I And from today, fourth more in the portends the very bill time with market remain find conditions. We high, an we federal strong did which government On to of a succeed. than of a commercial demand experiencing budget, the opens year. well quarter. opportunities. pipeline Nevertheless, the over at to prepared somewhat up well are worsen ourselves developing that side, is am book position difficult current the In macro of abundance market commercial our to XX confident aware conditions should work, X.X:X continue to business the we

positioning have naturally and government of What conditions countercyclical base, free we outside variable the is structure performance in we focused in place, those factors, strong we that work generation that quickly number of consulting high provide, Macroeconomic and a our When revenues, continued customer the are Importantly, service margins. cash we however, comes control. stabilizers year of quality record supports is source, our and maintain. solutions the strong is automatic offer end has a it we After a flow in talent to inflection US approaching strategic diversified us is company's and our a point control. the control, cost federal our bright. IT future ASGN the of XX%

to growth direction tracking and projecting targets. are of another achieve are the three our We year right Operator? in year

Operator

of first question Blair. [Operator from Maggie Instructions] the our William Nolan line And comes with

Maggie Nolan

ago like feels long well time this at does It's of year a was feel towards great It think that to hear XXXX progressing it September maybe you're the like targets. I three point.

when changing that do like laid perhaps of for out to kind are feel out expectations how there? economy, three as line there question put included that that out is, a some So you you those buffer you you was year finish considering my or you time look

Ted Hanson

that just year there, If frame about so November out stronger targets, a when that naturally it when I the we of year targets you we were we the the September we came of think they plan. put responsible were think -- finished time I 'XX was first and into ahead think bit

XXXX into about year. the to we're it organic pace think second model, gotten the than relates for growth thing better programmed as the on we've we first M&A is, in I obviously, and

on -- we what an ahead think too mix put an here. where in on business. this well the much One I think mean, our we're we'll Maggie, like this, on leading towards us I continue kind basis pace in get of add commercial one legacy to But I'll margin is kind we being year. thing business thing particular I being side, higher of just than out on still see here, the of that we add improvements targets think important we also the standpoint of organic out based and tracking services brings from into So and I'll the consulting M&A feel which margin up figure an margin incremental I there. part thing

And here so that's a point proof continues work. that, to that

Maggie Nolan

know, you're Marie, I some And to had maybe you that mentioned materialize. operating leverage expecting

about the next maybe in over kind this of then that I and Can the you referred near that, of the of course think the the extent well? to as you cadence year maybe year out to talk you into expect it materialize and the future over term.

Marie Perry

we and I really to to it was expenses. what -- wanted the was highlight related SG&A think there really

when at same you ended so XX.X%, of when the percent at And XX% at the in well. a the midpoint, revenue for as as QX. look the noncash SG&A, And we around it's SG&A, look you guidance

idea so support these future growth. And are to the really expenses SG&A that

go And kind with as those throughout the year, leverage. so idea the is, of would the we help expenses operating

Ted Hanson

a And we that the We're of and productivity, of half year, and laid the And then terms have to think our together or why good the market second the the in move And in as I ago. here opportunity year and into a up consulting in certainly have are. margins. part it's And months have out lever would continue place to working in part that's was targets that monitor we'll always invested stayed demand we we're with whether out -- coming towards I the headcount half we staffing to the XX business. of of in our in invested IT through of second gaining going say we solutions to forward, the there, here who what you some each but of the ring we've productivity of mix again, that we that's XXXX. just

Operator

with question next comes from the Our of of Heather Balsky America. line Bank

Heather Balsky

a bit what factors full as hoping as the of Commercial side into hearing quarter and talk moderation for your XQ and how between for kind was customers from guide? could little well year your you that the you're and I XQ XXXX the demand first on in of outlook

Ted Hanson

see the I the seasonality to business. back typical you that think of can Well, we're

through of the so to you year, of third quarter years, to from kind we then as and holidays off level coming partway the the in saw kind quarter in. the you fourth this everything And and set pre-COVID have fourth begin quarter the

So kind though. it's down natural just for us moderate a to bit of

one every quarter, do then, of in you the So what And thing the years back speaking if 'XX of sequential that, you like of 'XX and think talk of moderation. and COVID I'd up of is were up, we're want point into we're out part is 'XX, where to it I we to terms and in and the Rand, about to up will. to terms customers. marketplace there The

Rand Blazer

mean, And do, invest put out been report and the going economy. today like that's $XX have to on the newspapers a up CIO expect what's IT we say over previous was in I to Gartner the every continue clients hear year million our But that and in read in that quarter about IT. overall lot a they we the right? spending we question, said 'XX responses that

we at side order lot relationships underway staffing of bookings the productivity, things, even see at in government projects it. in get people a big on improve completed and worker when and look consulting And to we unit focused we and the to trying of and part IT multiple our so the when our side, look in

lot see around still of cloud. can You a work the

help believe, we transformational with has Microsoft we double forward. When commercial see three sales. to the clients. that a digit grew out, report go you our pointed and and can Amazon with as we of tool their industries Ted been -- big in You ServiceNow, five we

if performing, there we will, a are there's strengths but the that of that's not you of going be to ASGN other One are. is always sectors sector, have inside

strongly. clients. energy, better expect, interest can still Obviously, that's and energy, Ted information our consumer revenue higher all So opportunity as out, growing airlines, have with technology as clients, big We pretty rates. technology material, watch banks our transportation, pointed you

spend. So they continue to and grow

it's economy see So little there what's very a our kind highly doing that well. there be more for think to right economy are parts of the of in of to in solution all clients. what's support I cybersecurity, you in And the see And up, tenuous our we're think down. watching parts they're in highly in see the offerings, can in what highly we are most part, are terms of transformation, the that cloud, place I the press parts of bit the digital

of So enough if know you I don't flavor a that there. gave

Heather Balsky

of it economy Can was [perm] market follow-up How high of think normalization this mid the given that down XXXX environment kind potentially a quarter. a to a versus single is. the with do of of as tougher And you that kind about and you much labor where us think that? is reflection help

Ted Hanson

on one incredibly of of year. a up and more. in of were we quarter the 'XX, you mean fourth XX% up that were that is of those even mentioned part basis, year-over-year think just quarter that parts fourth difficult commercial our from I I comps business last the

is you have think, have, And Rand cautious. I out, So pointed being I right thing. that, naturally, as think clients that main you the now then

slowed that's watching, some they're they've first. natural built that as called So that guidance We guidance out the in happens permanent for our we our activities placement quarter. down of on those fourth

in a a bit So the cautiousness what which of I as into you and the world these market just a you it's how, how things think in get that's bit getting is react difficult that cycle. said, little labor business little it's

Operator

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

Tobey Sommer

very two sense and experience of even your maybe acquisitions vibrant when were could how and versus then if And customer growth kind accelerate years area, three recent everything you proximity your just rates relationship and was on ability has the of consulting to acquisition commercial make higher? kind your based and acquisitions us a for the give the In or ago consulting, IT growth?

Ted Hanson

talking Rand the of But if I'm this and versus you together playing think understood about GlideFast Apex of acquisitions. this, to which going I you're prior I Rand? one. part let our right, is synergy Tobey, answer some

Tobey Sommer

right. And to induce into accelerate the and the That's your them of base acquired growth business? ability customer your

Rand Blazer

remarks, job, an in did Ted ERP technology, the the think is is healthcare GlideFast. three acquisition acquisitions, to then which of we I feature did prior his Infor Vine the GlideFast, which Iron our another and just

even our So acquisitions doing well. showed support what than months, base. you I'd very for an I client generated expected. the but had both with the we numbers From bookings pipeline to to client Iron them achieved they could technology fourth when guess, GlideFast quarter. say We've Apex Vine, bring only ability Apex are client six he of we've better the of awful base, their so GlideFast in out been and we in and finished the have ServiceNow lot the their has table for And

joint Tobey, Vine well. So in that's same thing. going We're Iron bids. very

been work of one the also acquisitions we also ECS a ServiceNow ECS which of to with winning another some that made, the client we've base. has Ted featured in federal capability, think I them

Ted to that, them are, used that that words to of part results can think, base table. So very I the we And that an I we in of, we're going that's previously. that we do, the expected the having featured account bring think, strength the do

Ted Hanson

Apex, here from with pace synergy together I revenue of what Tobey, And right. has basis, have as had And I thought a would in which a we is Rand GlideFast Rand think, terms that's said, -- exactly good see. to certainly the mean,

Tobey Sommer

playbook pace? comfortable more you'd feel starts this a that visibility bit in a get it stronger where may a comfortable environment at something potentially more on this Or before repeating for where is footing Is solid even to year pausing project occurring not new the you're be with same softer replicating?

Ted Hanson

these other of of integrated. businesses are fully our as acquisitions well Both all as

not are issue. around So is more M&A there the of and demand areas just support where watching and an our It's that then opportunities situational here that things. I think readiness

and wouldn't. or little it's we look Tobey say tough would for we to So a

of I be the we're thinking. on going minded. looking, there cloud this more I more last? services pipeline. get to one to the think Are kind working Are the We're your needed in enterprise continuing than is about going to are We're not that year, Absolutely. Absolutely. investing? there Are clients open solutions into this still and all things effort, cybersecurity applications transformation it's certain to Absolutely. and We're our people on year software did are moving a the march digital or game, one spend cloud? and quarter multiyear

very many I watch have to as think will, have it if an Rand I then partner. a So we right mean, the to opportunity, things and you find those said, eloquently times, the took us not to two found partner but We identify in find that, waited. ServiceNow, right years good to we kind knew in we really of the And that. opportunity, GlideFast. thing

So play we'll have to it as it comes.

Rand Blazer

we're and I'm play that in going this about can what Tobey, from results. the to very positive Ted, add right? our you'll But say. -- You that to could playbook, anticipate see I

us. And so to working also and is has as Ted things, again said, there's worked unfold and for ways but this other one again

obviously part it's So our of playbook.

Tobey Sommer

seem side midstream Are us book of ECS. bill comfortable Because drawing outlook down growth? backlog? things indicative the I growth X.X. And or of sub a one square government Kind could trailing book be you whatever about you and on that -- is of the in last to you getting and maybe ask business. help question if or sort to momentum of that The see to X bill growing

Ted Hanson

running saw for at other where get you quarters wheels we in stuff GovCon fast had the together Street. the but ECS just squirrelly two a a you where I coming, procurement space. it think couldn't with on and XXXX two of quarters the little peers it's mean bit I get enough us out to -- well,

get I But Finally, third to think stickiness the of a fourth. the the seeing little again, the bit at what more here. quarter and quarter, then of of in quarter saw end nice in push third some hoping awards we're the and we just, in a is fourth

little a procurement, of faster. GovCon So lot industry bit encouraging in cycle, the focus around a move to the there's things

say abnormal not And mostly this, so there's our there. backlog burn rates Tobey. would I think behind are on I what's anything that's our

go, We of more revenues. getting budget stuff we to as available and us are picking pace the It's back just up book of normal abnormal. getting the for that's to not kind create there out distributed and dollars

Operator

question next of Capital Jeff BMO line Our Markets. with from Silber comes the

Jeff Silber

I kind longer start lot companies been strong, numbers the than Are stronger the you've you wanted seeing to putting of of consulting have make decisions. side. IT commercial been any a to slowdown, other lot there. The up services taking out clients a on are really

of the talking other Some that. been about companies have

Ted Hanson

I fair, of think Jeff. is from the the the tough we growth behind finding think that's that say that We're of third I mean, I when part it. comps. fourth, into moderating pace definitely

mean So think, out. I now. point I clients of on mean, thing right the last I we consulting that's yes, new opportunity million that -- in But are a the look, commercial booked side, always quarter. I $XXX

that if Some there. The some expect for indicative for with bookings a And of And I But relates think to that extensions would out sticking is in we'll is think just were balance that it of and quarter to area the have guide that's and it, that work you here. I are current will. of numeric clients one, always. the see that as where as we goes. put we January, our

tells the will. watching. shelf something I pull They're get again, done. not things that you just board, wary, They're if are that's going need to across think, So here point but off the they data clients another to that us

marketplace gives that -- going so to going in. we confidence to it's can that that us there's work continue to be a And

Jeff Silber

for Federal about by I your Simon Consulting And this plans just can major year? Government shift of three and then businesses, gears, can the talk lines if we headcount internal

Ted Hanson

I opportunity, the in And opportunity into that. Well, -- to look, always in continue year naturally, so right? commercial did so where you the and the and see you're we see investing we do of think there's we're IT half that. consulting We second investing

in federal We have the an space. market improving

account as we're industry part of and then business, to analysis. part industry an business, it's opportunity. it that the by the so of relates legacy And account an invest IT continuing staffing And of the by kind the into to

always in look headcount and opportunity are we as see here of we think But the go. kind have we there's you we at our to because we're same thing, half through and watch sticking second monitor of kind the it And it. so with got in. the where stuck again, we've it I SG&A, with fourth we'll so just if quarter, allocating And

Operator

Our next Thind of question comes from Surinder Jefferies. the line with

Surinder Thind

growth Can I'd overlap maybe like business. talk staffing of the a point? clients about of of the terms that with consulting you to you in start the penetration at the And of question terms have in this about accelerated level seen the some the couple the Is with you've you this how or wins that at business? with we occurring, over years dynamic to should that past point. rates project any think where staffing about of are or new cannibalism there

Ted Hanson

one? to you want that take do Rand,

Rand Blazer

I consulting. Ted, all, Well, clients penetration you first into growing comments, of in we're think, your commented greater with of staffing that our

continues number for more penetration focused So we the base. penetration we've reported we consulting we past, getting base, services, are now that staffing a definitely XXXX a that staffing XX% I we as that and out in the in expanded client the up. client into think XXX, accounts Fortune And to opposed on to go of were like

terms I cannibalization, the I question. way on. what's In the asking understand going Surinder, don't you're that's think of

getting I how smarter buy they at think clients things. are

I body call, me for and a Jeff, staffing I this best I do product? need consulting asked the So on had work workforce And way a about a -- workforce. Do do to solved. problem what's have We need particular get the or previous don't workforce. a

it group of recruiters. they're the supported managers We And consulting unit technical our all and account that staffing service our have be we supported by consultative our services. muscle that a by have or in accounts, of of all

of and a And So could from consultative best out we're gives work end piece up of, me client, credit, is that be the get you work. for package, a trying the way view client what approaching ultimate work of they're problem client package. when how results way point we're accomplish, the to best And be approaching to a sitting that? the could accomplish package can or really work of with we this the it's saying, back a client's best the solve are staffing it to what will

Accenture a a and maturing not the a we I the industry. XXX it role of of We're So thing. that maturing old in is or as this KPMG consulting were our see of sort industry year business like

and down. we trying years that's we're they're to client, the into what sit them we're So smarter XX why And with they're accomplish. of know it, and getting we're having always kind what thinking about

does answer does question, you that your So feel give a for… that

Surinder Thind

helpful. that's think I Yes,

comment. consulting, following to given assume, of the of on have that number be sorts bigger XX% sizes, Is is idea all a as there I maybe penetration you clarification, projects. point tends the of that clients Just different a up just

of journey, sort can is there there's a road maybe of are you Or the kind I in if penetration of that current… still -- what ahead, but that of was So where realize long some to a the context get rate? we just idea XX%

Rand Blazer

of right? we keep Why I I would want, And we provide we put think many, many I'm ago. our we're was we value I provide, every And there XX%, I I stop you, the wouldn't at is the client, are if services them. of Ted, every that can why will quarters XX% we one mean sure can clients, driving? number north think tell goal out number now.

Ted Hanson

procurement Surinder, you vendor have know and these IT consulting. or large accounts or opportunity then with professional they an such a approved enterprise the services is list that have staffing process they

at and that whatever both. we're the pursuing have count more years [indiscernible] the wide stop And to pursuing lost opportunity other staffing we this sometimes certain IT sometimes opportunity. side, XX a I it. -- tightly, on It's as dramatically now We keep a separate, vendor we're no like and have together they're open been they're winning last or the It well is. of and pursuing XX, reason We've for years, only the at are just to pretty number. there's knitted for number

Rand Blazer

want kind to and you our own as our pay to room career we to way, the giving of and And widespread just of the think well to that as helping more make will, important margins, improving our the growing we're bring are still the We value by we sure client, component, well. than to to clearly people attention clients. this although, staffing by that's work, increasing our There's opportunities many path, and trained grow. people career if

Surinder Thind

question a here. concentration should Any then the elements revenue which on comfortable of? color business, at the be of we or And you're in consulting there terms within maybe scale related aware are that taking on projects any

Ted Hanson

of concentration. terms in But no So opportunities? revenue type of the Rand,

Rand Blazer

in a and to complicated on implement need of had And that, path we the industries. that Surinder, careful, there's okay? but an company, then on into that that architecture. shared XXX data have get sort past, they can and the look, clients. we transformation little Accenture do said implement, the of I implementations. formats datasets of be would Let thing ideas think, the pyramid top own We our architecture most clients we've a you forward. with and that, I a certainly and is a help architecture. architecture and We've services And have different Fortune this to for say the begin below applications and the digital

for I also pretty risks. or you industry technology in specific. we be think of find can mindful also right, none, we're will, with. if and we we think a second ramp to quickly, have we piece But up familiar force in careful that over client we're recruiting can get because we build talent I a which But in a not the work have So our the skis, of talent that don't to base

level thing lot area So the deliver first. the questions only we would issue, Surinder, on that risk is that is architecture the certainly and keep ourselves ask can the big us we would the really maybe of a

Ted Hanson

ServiceNow, obviously, too, capability. depends that have the on it think I And we type of in work

enterprise around that that architecture and we're cyber, AI, very business, that. And comfortable creating areas, on good we're our learning. an in digital example layer, cloud, Federal machine In really the in area so architecture as good on really certain digital, in in work

are just put I not our comfortable. others those very spot, exactly sweet areas and think are so that Rand so There right. And we're are that

Operator

America. the Heather with line [Operator Instructions] Balsky comes question of Our next from of Bank

Heather Balsky

I myself follow-up. queue the put in just back one with other

just full margin year or this for gave framework guys there if higher provide that. for and help you're call, you just guess, year, in kind about thinking framework to any sales. of is level do terms but can I some it sort of any last how year, ask on wanted you of you And So didn't with I the

Marie Perry

target. the year around is The one we year tracking thing toward are that that three say we full will our

you're tool it's three to great where just kind And these a year to so know targets of have going.

we earlier, ended XXXX as XXXX, so we organic with out Ted growth. started XXXX And out started stronger, mentioned more

where feel we're with tracking. comfortable we so And very

And those changed so three we really year haven't targets.

Operator

session. Ted end reached have closing over we remarks. I'll for turn And the the of And the to back question-and-answer Hanson call

Ted Hanson

announce an and Well, and you. Thank appreciate evening. we a look great I Have evening in comes forward we our to after shortly first everyone's results this you thereafter. to and time ASGN, end quarter interest with speaking

Operator

you Thank this this conference, for at may and participation. time. And lines disconnect concludes today's your you your

ASGN (ASGN) 8 Feb 232022 Q4 Earnings call transcript