KFRC - Earnings call transcript Q2 2021

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Operator

Good day and thanks for standing by. Welcome to the Kforce Second Quarter 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentations, there will be question-and-answer session. [Operator Instructions] I would now like to turn the call over to David Dunkel, Chairman and Chief Executive Officer. ahead. go Please,

David Dunkel

the to like contain I'd are you materially statements. this with are filings duty that filings listed in Securities upon Actual to Good undertake any and statements to that may subject and expectations certain Exchange assumptions statements update results and from and Kforce's are reports call uncertainties. current afternoon. and forward-looking other remind may factors vary risks cannot any forward-looking. and based the public Commission. These We

find additional earnings can filings. information You results about in release this our SEC quarter's in our

In to continues our The Prior clients. business Investor significant providing we XX% affirm to decision to now leading business remarks website. Relations our Recession, of in our within and financial results a domestic solutions. strategic addition, the commercial and have our technology, published staffing strife into, solutions to focus our pandemic, portion on was Great the of the during prepared after technology

opportunities greater domestic manage billion, with nearly market was is Great represents Our staffing of portfolio dedicated teams compensation at than executive market proportionately XXXX, associates clients. the The involve our significantly solutions investing completely noted the evolving our of a to our as technology quality in represents and in in our the nearly growth solutions and spend which more efforts. client of XX-plus solutions numerous technology in Recession. the and participated business $XX foundation analysts companies, delivering reshaping using leadership $XXX market our since this new our Staffing organically. staffing reshaping of have to experience segment billion, estimated business, for all be This teams years XXX% industry technology growth focused divestitures largest and industry-leading growing in which

complimentary focused finance market technology, we revenues and There our no positioned. be prospects with other a in technology strong to are demonstrated we our as XX% coupled market point, market, it greatest concentrated, growth to in sustained the approximately, future, in, footprint, profitable Further resilience. to the continue domestic remarkable the than businesses expected technology ideally for As rate. our with look we to would is has, is this rapid revenue With other growth. this accounting want view,

third essentially, of Our full-year XXXX grow completely began technology second momentum to the of environment. relatively growth to XXXX continued not This the stages significant technology quarter, in quarter despite where tremendous but second is build declined XXXX, offer after course of evident, began only revenues of is have only year-over-year macro XXXX businesses in X%. this an in from were, we unprecedented our strong comp over revenue a levels, flat quarter. in early organic growth down the first half shortly and XX% to the shut Revenues the in

the has Our resulting drivers, for exceeding high virtually quarter our business since end now pre-pandemic. with grown, across coupled the in technology improving prospects every approximately, the second secular demand of second industry, revenues expectations. corporate The overall of XXXX quarter, XX%

of year record. on have respectively Our X% organic year represent rates we highest growth over rates sequential the and and growth XX%,

to sets our We progress will our objective for migrating We provide business our we clients. technology provide this of hiring towards shift support in an the make strategic FA continue to skill believe analytics. complement services and decision important

important market believe, efforts infrastructure retain to areas bridge in of an found to COVID-XX we relief the help to investments During us sustained crisis, associated providing will but key only the Not pandemic. future. several opportunity increase our the they projects points The did revenue opportunities provided in allow the above from with navigate existing in provided clients us to our to streams in lowest they pandemic. assist through growth these resources further we that, the enable an the business,

now as Dave not significantly will opportunities have will is Kelly elaborate. economy related QX, the recovering, pursued As we these further. in COVID-XX diminish Therefore, revenues

with prior at to anticipated estimates. high We left pandemic, quality of revenue market will rate two stream the a SIA be we growing times over the

Reimagined net aligned in continue second our firm this also sale work make in initiative. positioning to the headquarters $XX for We to to a our of quarter, hybrid generated great environment nearly more corporate proceeds, progress have our is facility flexible million The Kforce which initiative.

technology-enabled a for are transitioning offices. seeking corporate we very future We Tampa which modern, be similar headquarters open, office to actively location how field the more be our a will area, will in Bay our

tuck-in business to additional the during opportunistic acquisitions. active under credit flows, sheet operating in strength stock in repurchasing allows significant and we generate cash second us returning capital our availability again, our and evaluate be balance Our to to potential with continues The while facility our our continuing to shareholders, respect quarter. were, to

to We cultural potential transaction, sensitive criteria our to creates very distraction business. technology stringent are any will we apply to financial performing the to continue this as strong

prospects, current our we in price remain purchasing stock Given active expect our levels. future growth to confidence our in shares at

Board recently approved a the of Directors XX% is which our increase increase XXXX. second quarterly in dividend, addition, to In our

of levels, the prior-year believe Our in we of up and a business. belief strength signal dividend our is XX% our from strong

position, quarter. to business third businesses, our what, the Joe? now digitize to our we look Dave as belief exponentially Liberatore, and operating through give place environment pandemic we that for trends recent in for services. the insights Joe results are ahead, has guidance will who financial will insights greater our drive right greater and operating over then imperative expectations technology in will into give our detail market well I into the performance, strong demand as additional will believe, investment. and have call Kelly, continued excited our on President, we to a financial our capture other the CFO, transform be position, models team share turn productivity the we elevated our gains their environment. strategic to It's rapidly As about incredibly within companies

Joe Liberatore

across QX you, the Dave, year-over-year basis your have accelerate. high Thank compared business The record. our and business to thanks The exceeded the grew quarter and to organic growth a second in continuing guidance you on we Total of quarter have Kforce. has for XX.X% our trends is continue momentum is improved in firm we year-over-year all revenue to technology second and been rate XXXX. end XX.X%, experience on in the to for Total our the highest growth impressive. interest operating

far blue quarter. this We quarter have highs, non-discretionary performing timing work mission-critical as speaks New to only believe the they but been the portfolio. throughout that and and consistent in volumes client are third that across thus starts chip all-time broad-based reaching remarkably are the our not vital, we second

clear rates. increases record levels to the growth in driving we While of is to technology see additional bill factor demand our for continue resources,

than inception has per assignments bill assignment approximately Billable of $XX the which of demand pandemic XXXX and grown, average are increasing greater X% the began and Consultants consecutive increased now beginning level rate after indicative is and Our the solutions end consultants have XX% for from higher work. the hour, on for at four June sequentially, is shortly now on in talent for projects continuing improved technology quarters. higher to are as overall ratios, are job of mix we quality, level, and executing critical year quarter the pre-pandemic end Job for see second in order which third flow returned an indication order due to technology a also largely clients quarter. is of fill year to quarter, the accelerated great against the the higher to the over initiative. of growth

and competence initiatives. for delayed, We resources the also transformative project have the trends they deferred we're securing resources high believe experiencing the growing been reflective of end restarting I.T. are that scarcity new of or and

improving U.S. acceleration years now such teams to solutions geared our our as our over last significant highly has management, matured technology environment several capabilities strong talent end investments scale, our differentiated initiatives last technology clients value, that mobile, focus critical a we've of in The see efficiently cloud, It's analytics, investments areas, provide the project provide with the offerings consumers our within to managed to then with accelerant years to clients. experience. clients been and and higher made technology with the capabilities overall have continue digital and over front made the top processes We data across towards program in to diverse boundary we've and the three at the growth in

significant them for and continued with technology. add staffing team in foreseeable making state-of-the-art due have in is where overall We resources arm success We demand standing for this this to and expanding most out investing this partnerships. we outpacing bringing have every see long demand given on these the strong environment extremely We had to across to of clients, technology the our the investments we to we've highly coming providers future, tools further ability term services. of offering talented, throughout services, in share. strength positioning services, and pandemic, virtually and has and wholesale industry. market confident remains This throughout the industry continue business year-over-year contributors basis. was our broad There long feel financial quarter. during on second the the particular, resilience this respected to business, capability the that been XXXX in further a and offering in highlighted our The true, in and Growth intend are shown experienced business has dedicated technology retail our to to growth solution the same

momentum XX% XXXX year-over-year we've XX% into a quarter expect of carried revenues business our of on in which the may represent Given basis, organic growth we quarter, grow, third third the the approximately, pre-pandemic. technology over

are A is has not-look-back we our quarter, We a operating technology and the the initiatives start with not from are the consistent and with the expect the we're our our Kforce business COVID-XX not majority share, in experiencing. first focused could that at million and the played strategy. Thus, not our experienced in which was at team which economic were lack model history. pandemic. recovery $XX we focus well clear the third FA of Kforces beyond to the fallout underway. up outstanding business client major could included once keenly to executing I take sequentially relationships to efforts combined levels of billing support of projects commitments year year. to vast and the We made second teams that be will on of of to recovery our but forward-looking year of revenue contribution to approximate innovation, our decision responded. into existing domestic a revenues the tied The FA us quarter. distractions, million the Their per grew in July. from these of providing on world-class became second conscious expectations. role long-standing of an FA day, government-sponsored on success lean our million clients, X.X% pursue prouder of of over clearly $X revenues the the with have This pandemic end would attitude attribute flex in X.X% non-COVID results solutions part to continuing market forward, COVID approximately, our support business we a allow The over flex quarter X.X% declined of FA Or an of, since concluded it year efforts $X

As our previously, technology and are towards decision such and technological footprint. that with synergistic are to we highly we assignments, mentioned skilled and more change business less our support as susceptible more FA automation roles analytics transitioning

strategically long lower standing skillsets clients, continue in have to we to Kforce's business. important will ongoing technology support We are for end relationships success that certain our where

We our completed third exist lower the and expect of quarter client of skilled natural the FA strategic roles continue assignment that be year. half by do relationships the in to in and where the of end first not and seen have XXXX

months, the We remains combined digits the year higher that, an long-standing decline, and of When with the represents, staff. expect revenues teams per expect XX% confidence second that's degree recovery increased repositioning as of in sequential though backdrop, year. revenue adapt, and, billing the over nearly the our third Direct over to year over typical through sequentially, see quarter full-time summer we in demonstrate our XX% direct the is expected FA have total in quarter, demonstrate with approximately, the the in high-quality, and capable revenues X% not year-over-year non-COVID here in important be basis revenues. XX% third clients down be may second day, a results which there quarter, COVID Against FA allocated the offering, Direct part a down on significant year and, our during high in on a approximately, service additional year XX%, decline, increased credible due relationships depth quarter of total hire revenues to in year the and the we this mid-single of may almost flex a investments hire third quarter. activities.

to We initiatives strategic to better are for position our long continuing sustainable, profitable term in invest front growth.

our most investment are with relationship in live the A CRM in is TRM talent Microsoft significant seamlessly Our fully offerings. product management integrated recent which and cloud-based first system, systems integrated quarter. went other

still investments further Dave these capabilities profitable along such We manage to develop productivity, As further tools, to drive enhancing other teams are exists will enhance believe with and our areas, offerings, highlighted, as growth. great opportunity solutions in which continuing. future

interaction launched into and we towards to experience progress a XXXX initiative was operating enhance work to advancing is life-work our of place a it the clients, internal tremendous not do May the candidates this balance pandemic, teams, clear to made integrated models in Reimagined. have refer We Kforce and We the Kforce hybrid consultants. we fully enabled go. with technology something Early as us and our

Our in we future to to can flexibility are trust base. a our we tenured are team interactions. active have to to first activities and with best this for opportunity collaborative and when that training building such face-to-face with client referring our our in-person collaboration, technology, and metrics for age across design work remote activities, of what through be candidate office whereby approach, physical environment along Productivity maximum are inclusive done occasional, people office as continue entering improve associate in will driven leverage the new as desirable

business, most Given communication experiencing, the to us making in since collaboration in and a our manage begun our remains our technology notably tremendous and especially technology, the we growth we have tools investments greater rates transitioned increase and trends we technology of and number that are remote for growth to so investments in improve in last well-above of sufficient have capability. to business, teams should been due Overall processes selective associates solutions capacity market March. support and work continued enablement successful our

best refined of associates. compound more We as costs, result and the leverage, in have we our of most growth scalable expect how we structurally in reimagine model that improving supported our will work, to retained reduce future a our we and positive and fixed people, talented retention resulting accelerated further continues

high. employee Our be customer levels to satisfaction and continue all-time an

among maintain the score consultants recognized from to carry Kforce. We promoter have a per SIA. and consultants in our clients our world-class candidates and continue and the appreciate greatly net highest the rating our peers, clients, consultants Glassdoor are most and trust technology form I placed by

Our special I something as Financial the we future for in as over Chief the Kforce's into industry. tomorrow daily, teams our top together to call professionals me work inspire Officer, turn Kforce beyond desirable and most position to for will the Kelly, Dave? creating now Dave continue destination to

Dave Kelly

Joe. you, Thank

our technology high in high guidance, organic record, also We earnings of an levels share the and in growth as XXX% of quarter, over million are our year-over-year revenues which represents the business. guidance, increase $XXX.X the record year. quarter exceeded Profitability of our sequential end very pleased end second of of year exceeded with second per nearly with experienced $X we

an gross improved a growth are margin solutions increase year, gross which technology the mix due Sequentially, clients, margins costs our overall QX, and of technology a rates XX revenues basis we technology managed higher in flat, margin, migrating margins strong XXX flex points and Our modestly over that bill slightly to slight increase. largely business profit Flex continue lower Overall, early overall of we year, in improve, taxes we but XX.X% project margin. of as result lower rates. points that a the experienced quarter XXX year growth care due When seeing underlying our margins staffing direct over in margins, expanded in to the in and offset that higher we profit points basis business were of pay increased compared QX, FA to year a overall which from greater XX.X% the year compression percentage bill and and and at our as average seasonal largest business to ended seeing spreads FA year towards, health rates slightly higher carry relative expanded essentially plus to a are COVID indications short-term business, of traditional result are primarily improvements flex average in in business over looking in June. spread is margins, basis teams as our are

business spreads within efforts meaningful we we will have to are needed valuable with rise is any COVID a demand inflation sequentially, of margin they look yet with ability be their confident expect while business. from rates, which begin work our levels, technology lower long-term strengthening retain net second complete it's way, our As improve, clients and believe FA can to appropriately population, for of resources We we bill and to our repositioning that in the wages to so we seeing projects. critical decline our experienced consult technology technology a QX, sign forward our in our wage projects. we stable for quarter Should the not in the continued align positive resources, in to

of percentage business, rest as margins the longer profitability. approximately, which exceeds a profile to experience decreased success increase an in overall Overall, creates an, offering spreads, teams pay growing by continue business. associate our term, technology year, basis growth, SGA overall We year facility growth than offset the technology of and and lease XXX managed these significantly year. over rate helps due continue solutions to opportunity as Due increases technology higher performance-based XXX This strong over the also in point provided basis and sale the our areas gain and margin to our that partially of significantly productivity, growth staffing headquarters reductions, of office expenses a lower expenses. the business our leverage our at have do and overall revenue carries for in such to by improved our corporate so expected points on rest to the and costs revenue to are operating stabilize

sale the stream, was points growth basis of lower structural quarter Our improving improvements to quality of drive and of XX by margin in increase to us believe levels. headquarters allow XXX operating to second invest corporate costs of benefitted X.X%, our The of productivity to margin which basis ongoing market XXXX points. continue rates, continuing quarter in We while is collectively, in revenue our drive above operating second our sustained to XXXX. second improvements from the will, X.X% quarter an continued our aggressively business, in operating profitability the

term solutions fall focused in of advantage market specifically existing both and our the and As sustain productivity infrastructure that enhance business, year. previously in half second we decline revenue project further resulted growth off not COVID support and this investments maintain COVID our will prospects. building believe, power noted, The streams the to in to of COVID enhance overall from teams significantly take which projects, also to which, of is allow us of accelerate of and and critical other have sustain talents and future the the accelerate needed during critical conditions plan the investment in revenue the business These potentially to improving our the profitability the tools, technology will only but believe pandemic, longer we been growth. and and to our these we capabilities. certain revenues, investments, to growth Despite manage primarily

leaseback in X% of due from impact technology is to revenues previously costs, margin from margins and investment of reflected QX the what a quarter the from points basis are, from leaseback reach in primarily, points, XXXX. our for first gain stated quarterly, basis that additional XX XX between headquarters, incremental operating managed decline impact $XXX the non-recurring Third to targeted The at be by XXXX of levels, to the sale our and talent. tools last as basis and QX benefitted service the had and These January the from which of XX operating investments would We X.X% expected accelerated offerings. least the headquarters from investments and million XX quarter X.X%. point

this our $X.X annual million, to return derive expect to million savings New trajectory XXXX transition We to the of also of to to with margin the as QX $X we by expiration half Tampa headquarters leaseback. and

points assessing to phase. continue we this tools further efficiencies along in will services five to investments We've to double-digit as We investigate more our drive details could years, margins drive believe equal rebuilding supports how processes office We've multi-year in ability this take this could to over the in up or calls. our improve our Once benefit future area, additional firm program forward office in with success opportunity enhance some will look each past We by model, to be generate investment, we once costs which, will involve It our to upfront additional opportunities managed technology and office. margins back in opportunities the back exists front is had grow. capabilities, begun improvements. profitability and phases transformation the may sharing in and to complete. great operating also recently accelerated we XX future the to in believe, dramatically operating improve planned basis This five our complete. the years operating complete,

XXXX. $XX.X consistent million QX the our year. included EBITDA represents cash quarter net effective quarter ended and capital shareholders, the with quarter, in $X.X was flows impact to the $XX.X basis and an was million We cash. share retirement the billing play. same Our of our in the second expectations. number returned in million second from of a of which of in the million, third our repurchases, termination dividends. in quarter of rate number the $XX.X in as previously second the and was is last supplemental The $XX.X million days announced the we second of quarter increase $XX.X Operating of were XX.X% executive quarter third tax days as million XXXX, the negative which in XX.X%, the points, which XXX quarter number are of days with as same a result XX second This in

and revenue, be QX of tax I per expected and to to in the And range expect XX expected and of anticipated operating Gross We effective X%. for X.X% percent be while as and share is million a rate be expected between outstanding be between earnings cents between XX.X%. million, million XX be revenues flex to are between to to and are and SG&A, XX.X% and XX.X%, as is be average margins, XX%. expected $XXX $XX shares XX.X% to be, should $XXX Weighted margins between to diluted QX, to XX.X%. the XX% expected are be margins mentioned, cents. approximately,

business in technology our XX% and majority towards is to the does We of in vast range negative the to the -- providing the one-time business organic our to decision growth strategic charges any effect business or or domestic The any matters, paying in believe midpoint guidance focus increase solutions focused of of dividends. We the of technology excited legal guidance tax implies response technology range. legal revenues of an the impact consider believe, at costs, related COVID-XX charges complementing growth tax pending demand which related Our business in the about every with efforts. we're law we cases potential on focused of XX% couldn't costs not technology aspect society, our in and variant in prospects and on government disruption exceptional environment place. future our those a significant or the be or the changes. on permeate any from an future FA directly of Overall, firm's revenues the that's funding, regulatory, more impact

as to from return efficient strong on Our capital of approximately capital a shareholders allocation, performance and invested XX%. exhibited by continue benefit

to and a beyond. flows future of outperforming capital flexibility build year half past provide open I'd management make teams and call now extend our Operator, to expectations for we'd up continue for our behalf significant to team, success our sincere entire shareholders. thank and Now investments you efforts like to a questions. On XXXX for remainder the to the returning adversity and the their market predictable through cash in of that uncertainty on continuing of the and like to

Operator

Sure, just [Operator sir. compile moment, Q&A a pause for the Instructions] We'll roster.

the of line Josh comes question first Vogel. from Your

Your line open. now is

Josh Vogel

Thank just -- thank everyone. for afternoon, Actually, you. you. Good

First first know hire, bill there's working look [indiscernible] of already you even being target revenue this work done, we question to then. XX% rates, nature especially parts. of XX% is have profile XXXX, I -- I had. about lot sorry, we question the increasing a when at entering moving think and But consultants you a for assignment XXXX the on back you levels, direct but mix have margin gross against split, with

to XXXX? later profile should the that get then and this business So I'm of year we just wondering can margin think sort what

Dave Kelly

this Kelly. Josh. Yeah, Hi, is David

last you that we're I've margins, of them, state we sequentially, of in to couple revenue out, stable, the think prospectively, at return we future to in at when tech about be stability XXXX relatively So stream. pointed stable, least mentioned think right? They've as about the margins the levels. been years the our of looking near XX% for

the I think we're job in a appropriately pricing. doing really marvelous growth the balancing with portfolio

So as the with at stable foreseeable environment we this a future. pretty look

Josh Vogel

out their who when we in eased, results be business, sequential great. just there? number the coming right, can year-over-year growth, you a may tech from? -- but they versus thoughts the pent-up parse X% that very staffing it think And, gains All may get And not X% know you obviously, with of impressive share any

Joe Liberatore

Liberatore. Joe is This Josh. Hi,

out all look really of the competitive publicly awareness at the I it's -- think have we landscape, full think I there. that you comps are

you from And the part so, there, -- it's I can local regional it's operators, say operators. part you of think coming from of can coming

And demand is also across it's industry. very portfolio. balanced and saying we're all is broad-based know You what our in geographies

where into with based the we that's or types -- get different So local-based players, at accounts inside and really different run XX compete when of local XX non-top from, when a XX.X%. growth local national providers. is grew we regional accounts at about And our I our look large top into more coming typically, when indicative, rate of companies, grew companies organizations, we scale it's organizations think company, at our we regional And the XX.X%.

across And balanced portfolio business working type mix. in of solution up were we're this they that the very the we size we're of overall against solutions the with. embedded in So the have also is space. And capturing some regardless of competitors our company

consider business we of capturing have then within where type some local projects really a more expertise organization. unique a from them would that's or are But huge And what relationship I carve-out are typically providers. we the also, the global lot and You know larger, regional players.

Josh Vogel

all the easily that that queue, variant appreciate how those guess the spreads, pandemic to on -- you the up you're knowing significant doing And as output insights. an to need Delta business? scale that easy And around I there could if idea how to decline I'll a is upside lingers, could get significant there back be potential be? I in want that one hop that But COVID-related move business strategic we and and but should I expect your back more, end.

Joe Liberatore

of tremendous time. The tens up? a candidates is teams of did period Yeah, and very job it over answer back surfacing thousands we yes. a of say, could our short Because scale in

had these clear byproduct So with we the service of still of certain side have we relationships the But need. candidate long-standing that is we've with organizations. on a the connectivity flip been were pool, very also,

when kind engagements out Delta so, than And engagements I same unless specific say of he of happen would likely variant. what won't reengaged, on see the our at that the think helped we And we've time might with it's based even turning was, with more look our conversations types you of out reengage, lower us COVID-related probability our would on partners those business irrespective revenue, of this during a that that period. had where with concentration I that

Josh Vogel

me results. Understood, taking for let pass the And well, questions. thanks my

Joe Liberatore

Josh. you, Thank

Dave Kelly

Thanks, Josh.

Operator

of comes Mark Your the next Marcon. question from lines

open. Your lines now

Mark Marcon

seem to are little be soon? Hey, strategically, that there continued a anytime about good that how the long-term in that abating you bit can thinking considering saw I you're about growth afternoon, shortages labor was don't and everybody. just talk you strong that out perm, wondering, the

Joe Liberatore

all Mark, problem. Yeah, back on roots to go

is of are and a we highly which relationships. long-standing that comments, and of really in them While referenced lot have a I deep, opening capable, competent my lot why they have people

really clients. probably our I we the that bring to offerings important So very -- to

service As that times which we really is bulk the of blended revenue the way we've the side, the is that model. technology countless on derive, in a articulated, more we

client need, a for and firm value a it's will firm and has So need, if add makes the strategic the service that sense client. it's if

FA are teams on the side We the perm house. dedicated of

invested haven't build teams. those We to extensively

strategic are go million remember our when saw a you of we we out where teams, footprint, quarterly those have highly teams. years this our quarters, sensitive to the adding to a during six that use mean, the on a economic many really selectively revenues resources cyclical down it are from a there. drivers we ago. we dotcom, course We about and have made days million those $XX within fits $X we quarter move that's quarter good can capacity, to additional over and However, strategy. how But I

planning And we been positioned So we standpoint. how we've -- a not strategically really from been very that's on how we've this. like -- consistent approaching we're

Mark Marcon

new systems get that the your then in? people, do in how think been there the you been just been, them over level investments perhaps, downturn, levels, with very the just making strong the has order the of demand you've regards And -- was, any board, but given to consistent if to sort been the particularly across additional have and that can I up consistent, that. to you're answered productivity you laying you've how new wondering the with Okay, years. you was of reasons soon and up ramp

Joe Liberatore

development of that of And at looking doing our and ramp platforms. we pandemic over where deploy has getting in our new as our of up business. increased the starting FA fabulous to back some the last better here everything doing done is two training a we're to more to months little Kforce different would And year, really course of for of of hires. productivity, ability from is And say the dovetails point actually drive core been your also XX we've that investments we've to the things, fruits leverageable a now, the lot standpoint's mean, of create A XX% team I I the the what is Reimagined been proven bit this ways can capability some a which people. we're the of that technology our job. work FA pursuing And just to year been we've see is making, up our think the productivity we're of we've really part over started north into part strategy. I and of the seasoned

play hires, continue people. process think existing well to ability all things to productivity new ramp So into quickly of drive I further to technology more provide our and gains tools, our those will as as

Mark Marcon

Great.

Dave Kelly

said, So, we've to we've Joe isn't enhancements especially the the right? know the been over So This investment. that, technology the of advantage investing, productivity opportunity in and to idea particularly It right? mentioned XX% for it productivity Mark, is So growth. of the I of that is investment, an plus seen driving us, a Obviously, take we that years. great answer this long-term, new, to opportunity, accelerate as is enhancements as much operating as an environment.

specifically, as in had managed So, as, highly the the as I in well managed we and investments skilled of this capabilities in technology, as people well the talent, teams is mentioned, as offering. the services think,

just little to it's So and evolve so look our at it's that a a model, a continuing more -- holistic that. on bit and

Mark Marcon

common and best where being team What's you're expected that into then great. the seeing the even the And an brought just most manage better? you within And in? tapping And the That's bigger are scenario capabilities who most? you into then, and what's market, new the running opportunities? solution on are gone technology

Joe Liberatore

Yeah.

So I'll mainly But upon solution I bit this run and earlier. we little on niche a say local and -- regional providers. touched into

number integrators where to project what type a capability. with a we some the scale dominant the I've large and internal to are provider carve-out projects areas in hand also opportunity. projects, that clients getting expertise someone We niche called a we also where off looking And a might have be there's the in large scope those on as where there, are of capturing

individuals large to quite from that And for And -- also playing out are a on a in been our that some continued the solution time. on for we've to competent our providers on hire highly the bring capable capabilities fortunate team SMEs we've to so, of lot been further with we've space front. very and able just we to that in build continue

Mark Marcon

terrific. Thank That's you.

Dave Kelly

Sure.

Operator

[ph]. from next Sam comes of question line the Your Instructions] Fishroom [Operator

is open. line Your now

Unidentified Analyst

fast for to Thanks client pandemic? the questions work, here. how guys. what remote does And base Relating for solutions a taking percent offering have Hey, to the do you any get your sense compare margin to that of this situation just was of remote work market how prior your I'm new implications way sense also shifting is today? I working the a to structure. trying guess towards for this and the of has

Joe Liberatore

be actual seen time, they said, they resources standpoint. in were at from What had that wall I maybe in working saw the majority our unique skills seen pandemic remote because this there found point outside need, we've of saw we those physical of It some technology the turned and that where it on on. were going having physically be a the on space, we've be predominantly still on a back That to technology, Virtually hardware Yeah, customers, labs they that in when the premise. whether people bring you needs, XXX% the people -- is were them work that do of -- base were read remotely. capacity, and usually to opportunities have pre-pandemic, candidates' in trying adequate work of media, specific some large customers their or the got remote didn't we would hit. it about those and they client unique are so -- customer resolving a our say functioning number much you and where to remote was are certain working have whether more

tell their However, mainly what weeks, things backtracking you are last programs, is probably that on because associated, seen of we've we've I office the with the people seen happening three will Delta. here in back

of So, we remote clients hiring are of talent. flexible our -- very -- the our majority and

those are flexible but Some on talent really, market, truly to -- talent that best work anywhere. located remote prefer be are having getting the closer that actually be are talent completely after in that

what in fact, In say are change would I run those for is after of be flexibility a from really, the we're on talent that we're us because really more in showing people projects, manage looking customers and we're the anywhere, guess, the talent. the to for doing solutions percent engaging type I best those those marketplace best of seeing they're based much higher

Unidentified Analyst

some bit Maybe been ways many their have here. But the right I you little appreciate address labor switching issue issue business business you a the share there's But many has you impact built the shortage. and help Can labor's your this you'd have its right color that that availability imagine been to partnering with. Great, a your so also gears I with companies labor scarce. as these to on there. benefited thoughts now? huge companies wonder struggling with if like because positions can't

Joe Liberatore

labor a the have categories, the pandemic typically we been play areas, hit. from standpoint, labor say before would shortage short I where long

mid You even single of when performing know there terms high-end running digit individuals are negative openings the of people of of still amount those. in amount upper running in capable technology to for unemployment the was

then to And our for really So in competency capability able that go our out, talent a attract, say, recruitment our clients. boils it's core secure competency would Kforce. thing out for world, core talent recruiting and our the we If on do for it that down one top be to That's go side clients. what all really then is there's to and identify if living. that and retain and to there's the identify -- what talent, that's at that I is

position. we seeing the So, fill particular we're not where openings, any can't really

all client obviously we flexible open get the up then And the demand Some so are to more to the identify client than working requirements based enough supply that the that's can marketplace. really they But talent, are. on within driven. we're difficult their with

Unidentified Analyst

Great, appreciate Thanks. the answers.

Joe Liberatore

Sure.

Operator

to have We back for Dunkel the further at this closing time. turn question will no remarks. I now David call

David Dunkel

corporate results, Kforce with trust and him. And to another you much Kforce. and, you like support consultants We've speaking incredible to for of results you us thank again, I once thank of of forward a once good say we of and teams, and and Well, in interest -- look quarter you again our allowing efforts our very delivered with clients exceptional evening. for partnering our field the quarter. to third Thank again, again, and privilege in you just every great. to member again, you, your serving I'd and after to and That's each incredible

Operator

Thank and participating. call. this Ladies for conference you gentlemen, concludes today's

You disconnect. now may

Kforce (KFRC) 4 Aug 212021 Q2 Earnings call transcript