KFRC - Earnings call transcript Q4 2021

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Operator

00:02 Welcome to the Kforce Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. Instructions]. [Operator now the would Mr. over to like I conference hand to XX:XX Liberatore, Officer. Executive and Joe Chief President Please go ahead.

Joe Liberatore

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

results You filings. can find in additional our release information SEC about our our and earnings

these Chairman professionals have full of In uniting addition, first cover performance, a the we Dunkel's resilience couple operating Relations on XX:XX to daily Before to through years. personal serve, Investor impact website. after we CEO to Kforce. let of we the end a XX:XX our a relationships. announced like was creativity, would items. for have unprecedented thank and your for innovation for published in the the quarter, for I lasting year lives transition post In the achieve provide meaningful remarks all at our record efforts associates year within success of and fortitude, to I on performance our prepared me portion the commentary XXXX our quarter fourth their you Thank fourth XXXX Dave times. holding past XX

I blessed work established. with the am fortunate Dave reshape honored years. the as past will humbled side performed standard excellence we where been Dave the to and to involvement to future. work are XX of have opportunity be uphold strategically by with for I We the how in and side continued Dave's have

Kforce's heartfelt are support. his strategy mentorship team's the large Dave values foundational thanks leadership, our which his Due out to XX:XX entrenched. well goes to and and for to entire appreciation are in extremely Our leadership, respect

Kelly, greatly our Kye XXXX Our XX and future lead successes. the and year operating all will to VistaRMS. extraordinary financial team return the year across who recent significant our Kye in acquisition joined future tenure expectations. our staffing and contributed shareholders. our forward, Kye call family offerings, space, We our have executive on will solutions and performance then Kforce in prospects decade financial provide Officer. been Joining plus Kforce detail to is give veteran has greater and today brighter strategic has over to professional trends. which leadership Kforce's Mitchell, Dave Kye to us Kforce's Chief XX:XX XX depth as never into history. our the provide CFO is our firm our continue service the change through exceptional insights developing executing the XX:XX well for team has results, results is a vision have strategic ideally Operations driven last to positioned as at in and of our and responsibility on our

on increase strategic Kforce's exclusively every is epicenter of and States. crisis United the strategy. talent XX% grow innovative XXXX in be have companies concentrated focused focus percentage well-founded strategic industry-leading financial the to technology the our to of this our be degree to saw as of operations we unfolding. we distraction in that shift have strategic their accelerated business pandemic We and the now at organic the the on but can transformative, without belief we what bold in out the multiples technology continues momentum. expected was our played This at broader This for to given has related The economy focus a While This exit business technology our years. last benefit starts supply business of the we several and growth meaningfully going as providing we has to was market. over that of integration benefit labor than the delivered experienced XX:XX and to the solutions issues, greater exited continued of already as chain XX:XX we even that pertaining shift the imagined acquisition and results gain seen and the to have pandemic exceptional fits and

focus. in with reshaping in our our We areas managed advanced and pursuing strategic delivery our and which aligning the our is solutions are leaders, FA development have supported revised enhanced our further training. through synergistic Technology of supporting investing offering and teams enterprise teams our our client including have skilled backbone initiatives, portfolio, which our to offerings, business, sales The and strength level change we

predictable to and strategic us we are addition In sheet we XX:XX our have technologies. repurchases future our cash to industry-leading continue dividend, to once Our innovative share and coupled to these our and with teams which with tools invest strong and return initiatives, through a substantial equipping allow debt-free flows, balance rate, state-of-the-art increased. capital in and shareholders growth again

exclamation circumstances, again of our aspects per will Fourth delivering revenues most and Kforce. grew of quarter successfully Earnings path XX% the tremendous successfully. of end where basis. results exceeded with for were delivered under extraordinary full you $X.X most delivered results perseverance the in operating our $X.XX for solid entire of Kforce in a guidance. XXXX the the XX:XX nearly quarter grew Perhaps we I'm growth markets. We XX% been clear tenacity and billion, history. grew embraced is on we share the which year-over-year. exceptional a both record technology continue incredibly change was of which top is we XXXX and We and also year-over-year results the our remain record significant great have past make XX% the and share point firm's exciting Under year-over-year meaningfully as year XX:XX put per disruption on which the the grew XX% our there to As Kforce top record, talent personally in year-over-year. business. a Earnings the team positioning in organic labor time, of years. our of a nearly professionally, $XXX.X $X.XX, revenues challenges, most grateful forward progress so to principles million, X our the fourth for consistent the results, during XX:XX over have in Our helped and destination deliver XX% we

Our provide with technology. in future environment flexibility and them and that our in their will by trust workdays our maximum people in designing is supported grounded choice work

our to as we become support the a accustomed balance moved team has the have through will We remote approach first to life/work pandemic.

and will people best interactions. training, in-person, active when done spaces, collaboration physical leverage Our office desirable as building, activities client such team candidate for through

We Kforce initiative. to other be In technology focused domestic are revenue market the growth. sustained want view, Reimagined in customers, accomplishing through our our is there it XX:XX we for our market profitable has, prospects servicing than simply greatest in as other this no the

team who their will and our imperative has turn quarter We to be for investments. through a performance, Kye? what our place share XX:XX business companies rapidly have It's will right call digitize our Mitchell, greater technology environment businesses, the capture exponentially strong operating our I that within trends, market over additional continued services. into other elevated models pandemic the we for demand belief the in the extraordinarily fourth drive operating into to and the transform give believe now recent productivity Operations Kye our to insights gains insights Officer, environment. will Chief

Kye Mitchell

team's this revenues speak really you, their to exceptional efforts. our the providing to Joe. I XX:XX to grateful some the work to hard Let is a XX:XX appreciate current take broader our would billing dedication day them opportunity very operations. outstanding Kforce leading grew XX.X% clear results. It's on basis. that perspective I'm year-over-year fourth strength thank team quarter and our this of and Thank additional me about by Kforce's audience incredible to like growth. for revenue to our on to opportunity begin us Total

on XX:XX of continued were pandemic, organically of we we going trends XX:XX impressive. peers. was where achieved see mission surrounding seeing a high flat, revenues always experienced X% nearly the on indicator virtually year-over-year, during and growth our environment our comparable starts a X.X% year-over-year other technology which experiencing hour. the our technology sequentially is, ability It to resources recent [Technical technology investment even we pandemic. Difficulty] in a outperformed are been growth impact our navigating headlines as reduction, of we business over talent from on only seen. been during Difficulty] environments and have in expected benefit the in also have staffing markets, overall that [Technical historically the from we per comp. as our at consultants see However, end temporary every technology growth up growth were the which the a in rate year-end have grew support, our much sustain in increased exceeds day XX:XX macro-economic XX% reflects The us revenues of basis. rate number performance constrained the rates, and, technology did XX:XX rates in The but color well believe lengthen bill is to XXXX, end to The to for new have which average strong year. been pre-pandemic, Our us level. of for provide operating Not COVID-related in technology and of XX:XX shortages [Technical much assignments just in assignment average at revenue Kforce, our of duration ends assignment, stream. believe approximately pressures the we do increases top Front are Technology COVID-related technology quarter business. our also seasonal This principally critical our a we provide Excluding momentum we macro billing continue on decade skilled reality record supply the lower challenging continues me of XX:XX The organic growth great XXXX, not been billing during KPI's bridge we we company. declines basis business Let this of performance growth Difficulty] public the the revenues We pursue The grew nearly and of of COVID-related in growth levels fourth the every revenue over essentially reluctant has business more for our higher XX.X% in business. a some $XX our and These impact of new assignment grew sequentially includes saw are technology We to our lose to historically quarter year-over-year key the wage There the on projects. in areas levels. great day. decline, one substantially as trends year-over-year fourth XX% into a we lower revenues, provides X.X% elevated were to decision height than on business. per were discussion of that

period navigate strong results consistent to talent Our highly the shortages need. access skilled this reflect these successfully our our and clients ability over

pool boundaries, With for candidates talent the our a environment positive is increasing, business. moving is our which to less geographic of

geographies. further clients seeing We and We initiatives, for us necessary increasing virtually also as any XX:XX despite are bill all that to talent our industry technology tailwind procuring strength as every inflation rate the across across prioritize wage through a serves believe costs. increases future their

We continue analytics, in digital, project, to initiatives UI/UX, the program and areas critical data management. clients within acceleration as see such cloud, of technology our

confident investments we business team in to the and teams improve support We resources given solutions continued continue clients demand and of accelerant our are to technology from the employee to to intertwine, which to our overall also in experience, are strategy to digital, focus. for XX:XX significant XX:XX solutions our Our meet evolving A consumer and experiencing for made are to teams. is been continuing technology business. growth the the will has just ideal extremely and us leaning their Technology experience. not managed to technology the add feel but our positioning capabilities our have of We end-to-end into our we've clients. talented needs make highly

These we more to FA the first per X.X% decline in quarter, and XX% automation for to revenue on FA With business, single-digit expect expect with COVID-XX year-over-year with business revenues highly We respect Flex continue year-end in in technology an in support year-over-year as quarter, ends. mentioned. pandemic good to first flex assignment year-over-year XX.X% may million tied in revenues lower-end towards to year-over-year. revenues XX:XX susceptible and levels our a the clients remaining overall X.X% skilled fourth expected our Thus quarter. low and FA seasonal will nearly million grow from to due assignments our far quarter fit support strategic demand remains decline streams previously mid-XX% quarter, certain the that on the by to basis footprint transitioning business them skill nominal declined made our billing We are billing as our long-standing year-over-year day a the our relationships. basis, less grew the were day. including range initiatives $XX.X technology $X in increasing XX:XX decline sequential to sequentially to down bill We business sets rates evidenced strong. XX:XX with were of progress fourth approximately better

in ends support no where business. We have assignment natural FA lower chose we skilled that to seen roles XXXX, and longer

effort be complete first that of materially in the XXXX. to expect We quarter

FA XX% to Our nearly the increased down in revenues a When first Flex continued COVID the to in basis, Direct sequentially XX% the and in be fourth close quarter. down approximately combined XX% Hire the the revenues teens improve. the expected non-COVID year-over-year to revenue are quarter as decline, has be revenues repositioning expected FA XX:XX year-over-year business. overall on year-over-year the environment with given macro-economic high may of

other of and for the addition through Direct XX% firm staff. to of a decline first that confidence with and exist fully the in along strategic made recovery develop in investments position XX:XX revenues to are but our expect Microsoft with perspective, but believe talent Investments clients still cloud-based a integrated From a TRM don't We near-term. areas with adding profitable initiatives enhancing to seamlessly further degree continuing productivity. the are in systems capabilities to the is continuing. may our Hire as invest We to in these enhance to return, We integrate investments see other expect have areas further make full-time that CRM demonstrate may slightly sequential more significant technologies sustainable, high measured greatest products. in best continue and increase We opportunities than the tools long-term growth. XX:XX expected technology in year-over-year great quarter,

and have clients and consultants. consultants. named candidates our also promoter peers firm among for I'm consultants Chief Glassdoor made have from meaningful people maintain and to Marketing and employees our Officer, by work. consultants as and placed and as I'm grateful COO partnership mentioned, highest Joe our We choice technology pleased world-class for our we Kforce. we SIA. retained quality is net In provide have best to services and supported our most our XX:XX changes rating an have our Andy Talent clients continue flexibility the our and were the important in how delivering score me reputation of a with trust Thomas, measurement per for recognized We the to in clients,

day me together to work will to XX:XX employer call Kforce destination Kelly, as continues Officer. Dave? Kforce's over I position as industry. teams Financial we in inspire to Chief Dave the our turn now every Our the

David Kelly

Thank you, XX:XX Kye.

XX% pleased We $X.XX earnings in approximately per are approximately as year with increased share year-over-year. our XXXX revenues $X.X respectively, of XX%, extremely and billion and full performance of

and approximately Earnings year-over-year. nearly the pre-pandemic. $X.XX fourth demand share revenues quarter XXXX, the into against what guidance, XX% delivering we well growing will million Our quarter revenue a carrying in exceeded strategic XX% has continue of quarter market continue of improved are per $XXX.X us the significantly and to Fourth XX:XX environment XX% momentum above growth. believe to be position strong fourth our of positioned since year-over-year we XXXX

to at points profit fourth quarter higher Difficulty] quarter. Flex to increased basis gross in up direct business XX.X% a margins the technology Our XX of due basis flex [Technical FA greater margins rates. and the XXX improving FA of XX percentage basis in the pass roles. been in in year-over-year revenues. in pay margin a to year-over-year increasing of starts COVID in the fourth our margins, teams XX due QX also of and we've XXXX. of solutions the margins slightly FA non-COVID skilled to shift were Flex strategic points to in XX:XX business This mix from has projects existing new approximately quarter in have for Flex growth the to increase both The continue should shift assignments of a benefited bring gross in non-COVID new to allowed offering, decline points even effectively managed stability quarter, gross pay carries due Bill strategic which continued margin average our the quarter fourth business points improvements for higher clients. [Technical spreads managed our able in face expanded the in year-over-year Difficulty] services demand higher the our XXXX typically versus us XX:XX Difficulty]. margin XX:XX to and combination basis margin the lower by in [Technical

expansion. non-COVID in the In of bill we X% with overall addition, fourth quarter XXXX average Technology we spreads be our our quarter are in tax expect levels, rates quarter fourth seasonal to forward QX, of FA, business to payroll though Technology XXXX. look expected margins be business in resets. the lower XX:XX stable have In spreads to due versus FA to will have improved fourth As moderate

accrual that bill We as tax our to meaningful are be revenue first exceptional ability a will compensation year-over-year, appropriately margins consultant revenue result principally an quarter in higher Flex payroll inflation seasonal in with not margin accrual basis XX by impacted of work was lawsuit. accruals for accrual. related align by which rates. we XXX resets. legal percentage to to be expected due to fourth XX:XX wage approximately quarter Our negatively a aforementioned of the down the expenses due million, our the performance-based our from plan of higher expected annual was are settlements quarter due QX seen to our expenses points, legal to change, The $X.X usual growth fourth SG&A by XX points points levels, seasonally as and within Overall compensation impacted levels costs of related or quarter but roughly in the legal performance-based seasonal should a basis percentage settlement have SG&A XXX the to increased population, basis the of X%, expected confident lower resets. fourth to points. in quarter by to which in resets, and offset tax basis XX:XX relative compensation, clients SG&A payroll by will partially operating be given because decline negatively impacted fourth the

operating this expectations. fell impact, within Excluding margins our

plans Our extremely provide meaningful compensation compensation to structured to performance our are talent at levels. high

growth We $X.X legal from than our quarter in in higher negative and We expectations CARES $XX.X $XXX SG&A per While XXXX, of rate creates benefits in people as included $X.XX the serves believe this which XX:XX million impact price. impact due represents Operating flows XX.X% repurchases. approximately another from negative million the of was significantly of earnings year the to long-term. fourth nearly in million was offset our EBITDA of talented costs the $XX.X vesting cash our an cash this share an primarily XX.X%, result taxes the in tax for XXX% a upon XXXX, accrual. dividends result in lower $XX the of our incentive year-over-year. payment $X.XX, that share operating Act to effective a million for generated over contributed which Our in tax a in stock of the the payroll rate through to The quarter a were retention fourth quarter, positively which of and million capital flows million. lower shareholders of increase than million, the returned restricted XX:XX $XX.X we effective which stock structure larger XXXX increase to benefit was pursuant deferred rates, $XX.X shareholders and normal most fourth as at productive tax yet our and

invested XX:XX fourth XX% the net million fourth debt. in return capital Our ended on the during was with approximately quarter. We quarter $X

financial as shares same transaction. of generate and million expected our day than between the also represented Gross confidence XXXX. us support per the between dividends to of Given one and XX:XX were $XXX increase revenues first quarter should in X.X% XX:XX we fourth generated current Directors focus number XX.X%. to share effective of XX.X% resets. million repurchase approved shareholders, our of revenues XX margins we are repurchases, will any first to We have to price expected any facility our we levels. law $X.XX. on significant to price any potential costs the XXXX, shares be our The to X.X%. quarterly related not or the the our balance in rate million said, for This quarter. on does be to in than to flows repurchasing XX% returned which the have are Board stock XXXX, while operating our to growth our for be the capital XX:XX in and of Our in $XXX quarter of environment our and is expect our of As additional $XX which impacts between in As existing towards earnings the dividend recently to bring expect expected share the our to operating typically to time of We in one-time into tax of continuing and between million. legal expected more again approximately cash tax charges consider remain XX.X XX:XX of capital momentum in our nearly firm's in range the yield changes. of XX:XX the the $XXX active The the be returning to provides reminder, per outstanding diluted approximately sign first margins are belief forward, negative by intentions variant pending guidance, are XX:XX at demand additional on impact business we related government or This stock to the approximately an under XX.X%, if in fourth X% in from to less XX.X%. is million very basis With that effect, To first be repurchase percent approved of Board in in than legal first potential of credit due be best while an repurchasing $XXX is XXXX, XX.X%, impacted $X.XX will a going QX. sheet in cases, share and a given the share created more quarter continues form during margins XXXX, program significant prospects we prospects, Flex quarter. in expected are or a and future roughly regulatory, and million points the increase XXXX. cultural be effective XX.X% in XXXX to going charges respect confidence Our billing slightly increase margins days future has in response or long-term days under disruption XX% authorizations three payroll current SG&A costs, tax and our to to significant period. increase annual acquisitions. matters, to any at XX:XX any, approximately between filters impact opportunity we a revenue and that growth quarter stock that $XXX Weighted are dividend of Since levels. excited active growth opportunistic the tax excess evaluate XX.X% million average be by allows our organic continue guidance strength us XXX availability a seasonal about success. apply With funding, be for stringent to Thus, to our quarter and COVID-XX operating the also QX impacts and over is $X.XX. earnings

as the significant revenues COVID-XX XXXX. which this in believe sets higher people, expansion at skill both in would our benefit and and our total technology growth shareholders in of revenue business earnings be XX%, more of result This we additional Difficulty] with growth continued while of billion, should to migration greater end to exit pursuing we no you to per profitability, Difficulty]. better to be allowing our investments at least continued due FA year We from in increases than have revenue the our impact declines Technology we operating streams. net [Technical expect Revenue elimination and long-term. business we business you revenue [Technical more margins result expect in XX:XX likely will in our decline strategic that XX%, the of understanding from $X.X our full our of than expectations we of are which To assist in than provided in for Technology will longer due growth least and XX% share, some

be or greater $X.XX growth to prospects. our XXXX about believe dividends. more we Difficulty] to share year. full XX:XX in to future the strategic at be decision the least is be We X% focus our technology earnings business also excited couldn't paying We for per [Technical talent Overall, solutions providing expect domestic

shareholders from to efficient strong continue and benefit allocation. Our capital performance

to through I'd to market provide extend uncertainty of like a cash to to capital open expectations to the and team, investments [Technical On management behalf our for our returning sincere adversity I'd like flows XX:XX flexibility Difficulty] future teams entire continue in Our to XX:XX shareholders. our you and predictable outperforming thank questions. call XXXX. make up significant their efforts

Operator

XX:XX Thank [Operator Instructions]. you

comes line Sidoti the from & Vogel question first Company. Josh of from Your

open. Your line is now

Josh Vogel

about Good thinking outlook, Thank and direct numbers? XX:XX hire everyone. what last you. and performance EPS impressive EPS really to Thank I'm what Certainly, added guidance activity quantify you [Technical you. And year? and the results guidance. of afternoon, then Difficulty] can level

David Kelly

Josh. Hey, XX:XX

specific a overall it's a to direct strong of EPS. have hire, obviously, don't breakout market So accretive was because that. We

the Our are expectations growth type of not -- in of growth. to rates terms same

predominant see we that small leverage technology revenues couple really driven are the of going going to revenues that just percent a earnings anyway. direct we're hire to right? the -- a And see, is in be So by just

growth. I'm is your question, big quickly. And the So Josh, driver sorry, second technology clearly XX:XX

Josh Vogel

that covered pretty much XX:XX No, it.

David Kelly

Okay. XX:XX

Josh Vogel

Are Basically, you [Technical that to don't competitors XX:XX pool are talent resources? larger from. through available key in-house think have it what's or differentiators? clients are your just too finding seeing channels? the coming driving it Difficulty] the Is that difficult do find What enterprises of it? you

Joe Liberatore

Liberatore. Josh. XX:XX mean, really I the No mean, market be especially stakes quarter. digitization I time. of it business, big would adopt. I much slow think this of last This a it's look at, it. one's in and mentioned is everything, its I table at point pretty when accelerating you piece Yeah, to the just Joe pandemic company I backdrop say, will

So and their I've increased this in demands, move hitting things to years it's I businesses project never Difficulty] Difficulty] robust. space [Technical forward. mean, having XX tech now are [Technical for been the been All

go-to-market leadership I services to are investments in we've ever invested K- -- overall specifically. our in would very space all If we back leading it's the SIA It taking But the as market with share. mean, enable started as it's 'XX bring that's to look been call journey, performing at have way our revamping you [Technical performance with we've approach well. XX:XX development. I lot led. people, are has a 'XX, what market. probably XX:XX our attribute So our then really they really people in better than our backdrop And I Difficulty] think timeframe, the numbers, with the to well our we our technology made

So team. efforts attribute team lot I our of would it of our and really to a the

really been and those So, that the and say of that out all we've financial at big from saying crisis viewed every tech mean, a taking everything And driving clearly look downturns. versus historically If our sure. it. go other secular how Difficulty] had the would back are for say, coming of secular is proven productivity. saw, been a tech we is that I So, the I'd business. we It's place piece out I we shift at [Technical since cyclical of really things heart then it’s

Josh Vogel

that Thank insights. some you -- the especially very skill a tangent, talk supply-constrained just sets. little good specific on And a are Those among know bit XX:XX about you. we it's market, can

the you of Just the you're candidate front aren't? that some engagement successes of talk about on maybe can some having that competitors your

Kye Mitchell

is This XX:XX Kye Mitchell.

I think a we're that doing on front. job fabulous

They highly jobs in it's consistent like recruiters technology constrained invested Our used demand really off. to their environments are that platforms this. in and tight working skilled. are We've doing are paying in

find that is there think, lot I to talent. struggle of a

us, us. We reputation, to have So work Fortune we by for most and represent technology candidates consultants recognized that said, professionals. like XXX. the XX% I we're with want the of And

our pleased time making to again time deliver progress clients. they're very that and So with I'm continuing for our the how recruiters are and

Josh Vogel

XX:XX Thank you. And off. just hop ones two more and quick I'll

You noted, up X% under we're What just rates year-over-year? seeing year-over-year. pay were bill rates Flex up in Tech

Joe Liberatore

rates bill about good XX:XX technology [Technical right? were So feel interesting it, dynamics our business, Difficulty] in up. very

an higher business. really at rates, Obviously, I of getting that getting $X And we've only really our in as aggregate dollars, bill look not a think nice a about indicated, if we're you in tailwind higher to kind additionally, margins. spreads, so improvement we see we as are hour.

faster So result bill of as pay expanding rates a than rates that are at rates.

able really of with where we of the this feel to we manage being mix about going So here business we're terms have. that good in

Josh Vogel

the XX:XX [Technical sorry, All lawsuit? And nature right. lastly, Great. Difficulty] I'm the behind

David Kelly

XX-K. things tentative reached us XX-Q this it. are kind we've hour related XX:XX and are made settlement So some obviously on and of previously in -- these unusual disclosures suit, Yeah, for us, types -- of and unusual our Josh, these and It's wage four is a and -- we

us, a for to typical important thing felt so we call out. that So, not

Josh Vogel

thanks Well, and year. XX:XX all Got you. great congrats answering for my questions a on

Joe Liberatore

XX:XX Thank you, Josh.

David Kelly

Thank XX:XX Josh. you,

Operator

the Baird. XX:XX Your next Mark from line of comes question Marcon from

Your line open. now is

Mark Marcon

rates bill [Technical results. operating quite XX:XX talk time. to and is. little Difficulty] on X.X%. congratulations Obviously, opportunities smooth afternoon as the about some Hey, in the on for good environment further being strong it talent-constrained [Indiscernible] [Technical a increase a Difficulty] the been we've bit

increase to more. [Technical but Difficulty] side permission to the a it's potentially bit extent So economy just the nothing gives unusual, what entire going little [Technical wondering you Difficulty] higher across

Joe Liberatore

Difficulty] right. XX:XX seeing it [Technical we're

data hands lot now. a have our of We in

marketplace. bring to all we're clients in tell with So terms in the data them them to of our end out engaging to happening what's

phenomenon look driving. Difficulty] [Technical some is, would Another coast we I [Technical we've the in Kye, been that end I that's which based again, upon manage XX:XX think irrespective the this paying say way there is big else interesting Difficulty] [Technical the supply of confident. is into of look and escalation US very how you've our to interesting that through kind Difficulty] every when terms XX:XX [Technical go feel Central taking the customers? been is anything you able cycle, want business itself, history, a migration you Difficulty] I West on place Coast at if and the mean, to seeing through East in because rates, an Difficulty]. we back maybe end, And [Technical we're of that our [Technical US, playing nature into dynamic at from to really and of Difficulty] is of

Kye Mitchell

I would I being Joe work of like do is demand Joe was the phenomenon understand this new are up, thing to only consultants going going prices XX:XX due customers saying. to able that anywhere add is, up think

to on to been [Technical customers everybody we've with Midwest, very able Difficulty] training. going. competitors, on our into so, coming on focused like markets that really really And new We're that is companies, provide focused fortunate in trajectory the local said. fin be where We're Joe

keeping with we're now I and we'll it, to So right job up think, doing so. good a do continue of do

Mark Marcon

XX:XX Great. Speakers] you And [Multiple can

David Kelly

Dave I'm Kelly. XX:XX this is sorry,

trajectory. asked has of a kind You

quality changing. seen doing. our that don't X have, increasing years. given that that see we're probably X the or over the Difficulty] [Technical we've we rates I that or a given years X business X% in think managed year know And customer bill I the clearly, X% or years historically increases of we solutions expectations last base, the

to we So advantage take that. opportunity of continuing see

Mark Marcon

what percentage can more dynamic? XX:XX you're the of how that along clients? that penetration about the exploiting advantages does gaining Great. that you other extent the terms bit players of basis? little your that you competitive And are you potentially in as give of new as then relative existing clients, business expand to talk could far a to And doing well remote fully And on a

Joe Liberatore

Yeah. XX:XX

an I'd there's client dynamic. piece two there's dynamic. internal and the So external There's that question. pieces We client say the then to don't control external really

new will see you still people all Wall percentage -- a Difficulty] people their a somebody office, in many the on. Street not to Omicron, to just I interesting, desire remote into of or not. And push Journal is back tell ability high manner. of rolled one their being performed because to have we very However, of remote but of have because hold where roles is [Technical defections, because of we in and Difficulty] couple XX:XX [Technical read relative a those you, back It's the see work

So it's another actually than no a as new qualification, vaccination qualification. different

those as about, there. consultants are Difficulty] really at invested labs to you're the working of to So there, standpoint, as processes And amount percentage into have I'd will into scenario. of about and very innovation things type by, rather where in tremendous for this physically outside nature. point that is time, very of XXXX it's this environment, on-site play. internal an start guess and come is any new mine a might But a the be though, company-by-company the high publications percentage process we're Omicron you high from as that terms read that's passes go say roll XX:XX say, continuing So a talk differentiation do like XX:XX and be tell in in on good you a in looking those job. that out do forced of in of control. in that and still back of We've to balance, if reshape to be office, supply-demand your where I to they the in a openings they're truly made type remote, would really of things going our May they'll in I of of remain We to comes technology commitment our out. business. be [Technical

hold to going long-term So platforms and you're equipping people with by our able belief choice, while to be is, best to way there. them them the on are out providing that is that the flexibility

and that I'm we excited So path that that, hold and a out to to. we going optimal and Many really our retain in the to that there talk it's have committed And about on the various we're things. We've that capital. standpoint. things believe is best committed say really remote from future to We put on people the model people. the this, about on

Mark Marcon

in on it's How will technology are current out of regards that. that current of totally along initiatives. I the constant evolution, just you Joe, I the a with rolling agree complete? know XX:XX When but be the And far iteration? terms to

Joe Liberatore

going multiple to standpoint. just at really to do, XX:XX and a better Yeah, it's here our competitive take footprint unlock across probably geographies. X things are the sit what they're national also been last that right things a look We've candidates to really our out ability when going for great But part, months I now and doing, the our we're they ability rolling [Technical leverage to from Difficulty] question. over the

bringing made able they're three be they're I us. mean, getting through has a to doing it's opportunities, -- with or that what we'll luck. match. likewise, So strategy, and that getting have candidate doing to Microsoft strategy, of the Difficulty]. be with expose The happening. Veeva, obviously move what enterprise, you could then with at look we made [Technical go across entire I just [Technical ended say And Difficulty] [Technical here instead when been exposed those decision Difficulty] Difficulty] all the decisions more local them sometimes we say, together [Technical two [Technical really it's for XX:XXSo, which when their requirements, things that platforms back big optimal Difficulty] them in them wish historically sit pandemic to difference I Difficulty] [Technical to may expose its to sometimes

So coming. a things exciting lot of

will accomplish. Our leadership this people video. and interaction to companies so of to back some still in people look the terms you to lot go XXX way [Technical still embraced technologies. have terms Fortune I human entire the so XX:XX and remote when world time been getting a I Teams, a that of our commute think were the at together. have way of back back X on what turns with by took the up the would and Back Difficulty] will we the on where mentality. life. And virtual, deal whole embracing go it change They're it firm and our just I the just give credit people not on XXth, to and embracing But also talk and when and a way, and necessary, forth. into the quality incredible productivity in really haven't our video say March goes in when back doing the that I It to they today, of grind when waiting higher people was. all can for corporate day was office

Mark Marcon

comments. the appreciate XX:XX Absolutely agree. And

Joe Liberatore

XX:XXThank you.

Operator

from Mulrooney question William next of from the Your comes XX:XX line Tim Blair.

is now line open. Your

Tim Mulrooney

afternoon. Good Yeah. XX:XX

on me. a Just quarter. from couple a nice Congrats

pandemic. your So you of just better talked peers a your performed throughout many backdrop about than [Technical has business the results public driving Difficulty] strong

maybe you is services focused companies? So it other [Technical share And unpack from share other on just maybe traditional taking Difficulty]. can if the staffing taking firms, or you're you hoping sub-verticals IT you're think from I'm

Joe Liberatore

in, for and add Kye lead a really little driving color, of kind she's I'll of strategies. bit been Yeah. I'll these because then XX:XX let responsible

types front the teams piece to give terms going overall of things say, we're on a the the that would on is, a But you I'm this upstream can that in models not mentioned just to the we've changes big after. our that. things playing earlier that I is business managed been also a seeing. that bit and reiterate getting So move Kye, of some continuing XX:XX I of we're flavor our of little maybe of solutions and piece with investments in in

Kye Mitchell

Thanks the XX:XX for Yeah. question.

today. several think job us. weren't transformation everywhere, in. upstream. hear doing and at outpacing we're the a been they focus looking for I Today, big in digital playing that's are transformation, to about competitors great of success area our for we're they It pre-pandemic, you really move has years Part of digital is footprint a if continuing our companies

XX:XX recruiters the technology, how several we that's at But into portfolio to really, business, over I focused our want ago our moving FA no think one. be do big looking we So on -- years strategy, simplifying acquisitions, that on business know with the again areas in with from data. digital cloud, focused and then we going really we big the distraction can time perform with model after time and

proud. really I'm just hitting our people all-time So productivity XX:XX are do high. think I

said, you So while the and them there, to it's to share. as be for able created really sell and demand is the we've about of people capture ability environment our market that

pleased really doing. teams with are what the So

Tim Mulrooney

guys Difficulty] It you on seem be great doing XX:XX certainly Well, structure. capitalizing this environment looks job to [Technical cost a on the operating -- is your

your SG&A full third expect based your to some guess, of for year, guide like the seeing your on at for your know reverse done your of is and decline sales that But faster fourth work full getting it assume you a structure. looks upon your gross 'XX, in little grew on a it SG&A, leverage cost point to the right? profit that XXXX. quarters as year some based fiscal Is trend improving fair ‘XX like during So I it I full guidance that than percentage on year and for the looks you've year.

David Kelly

question. XX:XX Yeah, Tim, thanks the for

right. yes, So

would think I QX generate, in higher operating think that we X.X% from the I I've past. are remarks think to compared least to I alluded I -- XX%, couple we're We XX:XX costs. yes, expect say, and in leverage XX% we're X%. our And to operating at XXXX. I costs as compensation Kye, we've in growth in this great think These That's expecting we and things the investments tech to think, in when predominantly think, of mentioned that you of in margins QX. So making to, made commentary come

have case. term, helps longer we we to for point in for that's And believe that bit only pay Sure, we the exceptional have earlier, [Technical said would we right is the costs designs pay If we think expect have as might retention. investment that we've us technology. higher. exceptional We only slightly growing the XXXX, that performance. XX%. grow to provide X% can a in And your -- been because compensation In we do Difficulty] little higher it at

little a by costs, quarter onetime points leveraged, as a growth, probably are Difficulty] about of [Technical getting little we item, up well. by a obviously, different higher things. because cost of SG&A which in the is basis was but XX we're the there I exceptional drove And compensation mentioned, fourth So affected then couple a

we're So choices right investments. and combination making things. right of think I the All-in-all, the

Tim Mulrooney

XX:XX Speakers] Right. [Multiple

Joe Liberatore

Well, I Tim, ahead. add. just -- XX:XX I would go

Tim Mulrooney

No. Speaker XX:XX

Joe Liberatore

productivity thing, last I years The roughly for we've have XX:XX [Technical part by X it here year-over-year and our over a better basis the years, on X been the one might growing XX%. Difficulty] missed or

As through it's mentioned, accelerated the here pandemic. I

As I performing [Technical from all teams XX have Difficulty] our QX I cycle. mentioned -- earlier, year it's this mean, XX% XXXX. across just how at been across up looking all XX and is

it's our people. is pretty not tenured substantially. up most just X year our But than productivity So even less

mean, think I just I So that volumes. speaks

productivity. So continued some come of will this from

Tim Mulrooney

the Appreciate Understood. XX:XX Thank color. you.

Joe Liberatore

XX:XX Sure.

Operator

Sommer Securities. next Your from from question Tobey line comes of Truist the XX:XX

Your open. is line now

Tobey Sommer

Difficulty] in services. [Technical you're your higher Thanks. progressing XX:XX value

what [Technical kind Some this managed your are and for goals of folks beyond? services market and the Difficulty] year in called

Joe Liberatore

it's consulting. ability space and of I which but XX:XX what value, traditional is in and that points on of our providing more the looking our [Technical really really Yeah. we're -- mean, because staff provide the end be that of take to then synergistic Difficulty] really our cost they're and is to some customers between that while here be Where that with higher client then existing think sitting space and proof some taking past more still the ownership, desire customers existing solution our for nimble, control to getting you And attractive us that they I'll I offerings performance, would development. I over augmentation client have with think and I'll those XX:XX that, be position really traditional kind give our really new winning the let implement. Tobey. in base goals, within broad Kye the really touch upon of that

of Kye, then can give some some -- and maybe wins, about flavor progress. things to can you feel so, will us more of maybe talk recent a give give you and how see just our that you And you continuing

Kye Mitchell

Tobey. you, Thank Yeah. XX:XX

to these trying in proposition going like have team that them. lot up we're see move said, value areas. Joe of continue to customers, a with Again, think growth our are to I us

leaning [Technical supply retailer, again, so And had people in, but meeting digital many demand a we've transformation, not Difficulty] and really was the as big trouble to having entire so big XXX as in chain. with all wins They're earlier, it mentioned -- the just we're I are. customer digitize their they're working Fortune

they that [Technical go through So system. want really digitize and Difficulty] whole to

actually customers excited we've enough, we center, them working managed everything do we're Difficulty] it whole the think after call XX:XX so from to they had another do bring Powers and really that. brought them that perspective. award them looking in-house more are everything in since bracket. flex then looking in do that. experience, And years recently side J.D. they the won they And were from partnered one fact, in-house them help the to a team the knew was where well back need. well-known with to on with firms could win, from back I a for to take And we So we that their of in, staff them it help recent just We to -- for client digital XX:XX their big mobile, web, [Technical XX consulting

bring the need bring table. heavy-duty outcomes while the So skin they're looking still can recruiting which we the and things experience, in to they that, more for us game, to like

excited difference really us there. for do we're is recruiting it. our think, So what about makes I a again, big And

Tobey Sommer

XX:XX Thanks. Speakers] [Multiple

Joe Liberatore

wrap your tech we're growth, you line Yeah. And at a much rate will top higher of Tobey a I our XX:XX to you, growing this in from whatever offering. see tell question terms -- goal as standpoint, business

I percentages Now there offerings to outpacing been growth. least else, at anything mean, I overall but out our directionally. or wanted give you we have broken these flavor a haven't

Tobey Sommer

scale? Thank of -- business Okay. an in to ask aug in follow-up. market this know we're look I that traditional tech your competing how I'll just staff active When and this one players are you And hit you. the at XX:XX at you're aspect hour now, operating many . tech about kind and of market

Joe Liberatore

of be this XX:XX in full proposing also acquisitions where there, are natural. to We're it. the mentioned. competing competitive competing XX:XX off aware, number the Yeah, staff add is really are because regional, standpoint. the business because providers. And direction it's question But of aspects, from a mentioned, moving internal Kye an short We're us along against local terms consulting well but might key looking rates against scale it's mix hand component the think As landscape, niche large that that brand because that mix, moving firms, take as the players great out all also of XX:XX We're the comparable and are. doing probably that mean, very and certain organic I you're that shift direction to to we from the the it's a same the in in spectrum. of there's much legacy clients but pulling augmentation, reasons of ownership internal there any a clients projects all traditional we've their for competitive really teams I it's change at our the again, overall landscape,

love out it the coming where that the comparison those in moving out to -- really the think we've in I are So -- love that's formidable positioning into solutions going market front that seeing same space. slugged they're to and from overall with on I indicative the some just unique Because side that but staff the staffing bring competitors there. space the there legacy personally, providers I is out year-in the to and and -- the of year-out augmentation

are out going the it's out there. I'm names, most So call reputable specific not ones but to that

all Some players direction. are the this of in bigger moving

Tobey Sommer

Joe. the Thank response for and expansive XX:XX you, Thanks –

Joe. Liberatore

XX:XX Thanks, it. I appreciate Tobey.

Operator

to closing turn now conference Liberatore questions are no would back for further this There time. XX:XX Mr. I the comments. at like to

Joe Liberatore

serve for with Kforce XX:XX us and and you. interest you again a you after to clients their [Technical trust incredible partnering allowing consultants to to forward look Kforcer the quarter. we our your thank exceptional for efforts Well, was for and support Kforce privilege in results, of and and year of with our your Difficulty] and talking XXXX you very first

Operator

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

disconnect. may now You

Kforce (KFRC) 8 Feb 222021 Q4 Earnings call transcript