KFRC - Earnings call transcript Q2 2022

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Operator

Goo day. And welcome to the Kforce Second Quarter 2022 Earnings Conference Call. Today’s call is being recorded. [Operator Instructions] I would now like to turn the conference over to Joe Liberatore, President and Chief executive Officer. Please go ahead.

Joe Liberatore

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

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

several in has factors raised our our have within levels ideally crisis with the was historically and by at the plays There portion our growth. and ongoing positioned These of the performance bit the however of has that overall months remarks we solid which published of fueled this macro with it Investor macro Technology doubt pleased supply-chain rising rates prepared website. heading We become second persistent a our we over least landscape, am to continued throughout fueled addition, activities significant cloudier out. last economic In year-over-year believe by ultimately I uncertain elevated are interest quarter, have sequential business. the overall growth environment no Relations again is and in which that challenges. been concern other inflation, as stimulus the pandemic pace in into significantly Ukraine, partially and the

of in flexibility diversified time, in at when comprised remember investing business, solutions XX% overall markets, and a their Morgan, flat only to sectors technology, drivers important projected XX% comprised gives nearly insulated and secular only core growing we see the indicated we crisis, of very X% aligns Technology and survey revenue of conducted gives the our is our our times. companies our end has during business the are well we demand released by to fact, business strategies of balance in the contracted. continue in to down us of sheet the and XX% to that The virtually of pandemic June, and in companies economic business look expect financial technology concentrated changing. digital their which which and all in overall adverse in grounded regardless To further, remains XXXX/XXXX XXXX, in growth it with high-end invest in in that was levels are flex Technology to during Our strength with improved position don’t which A recent outperform economic is XXXX roughly abruptly providing industry technology strategic continue that debt-free to the business. end, confidence talent confidence revenues relatively efforts, our in revenue to may world-class initiatives that was investment. that us that a the respective JP in accelerate profitability attractive accelerated clients transformation set dominating in Those companies, to CIO serve.

on confident. whole, may select pockets there of or in While the softening we industries remain clients, be

their to continuing with and to they are personally high significant confronted as and largely My for associates leadership out were for are experiencing we go levels our vision thanks of activity early relentless XXXX, some the the to our demand team slowing our and outpacing even strategic compared Our pre-pandemic we execution moderate capture levels. activity quarter true in indicates macro-economic historically second in to in the share. Technology in second continuing performance to sincere some stay market quarter instability. XXXX are that Despite levels

technology serve. than talent war open with available talent. on the for all to The we Our jobs have skilled far team impact continues real a is meaningful lives more

non-complementary from a business, the competency, consistent Our service true core to outperformance or over differentiator and freedom years. past any has the focused of few been integration offering, recruiting distractions our acquisition

office continue plans of all the office-occasional call QX. we our opening with field with hybrid model that implementing our Our offices in

Our choice supported their designing unique in that in by people grounded trust them is and maximum environment in our with workdays flexibility technology. our and provides

the will our decision We solutions Kforce these The offering the financial are coming talent. an performer. factors, space, destination the We their flexibility and industry are among by leader technology technologies superior top position accelerate maximum talent Technology strategic and financial in to continued designing current in workdays. results as talent delivering crisis a supported to has top out position state-of-the-art focus believe for top of others, on as Kforce future to

there principles forward remain we servicing it would path we been we customers, be sustained market other focused other In in have domestic for growth. as our space to has, and so in is is want under will the technology simply Our than the prospects clear, consistent operating greatest view, talent no which the successfully. solutions with our

to capture recent Kelly, our on be share market provide within environment will now into Kforce’s financial our as place what continued demand results in believe future our performance Financial financial we team Officer Dave Kye strong our detail for insights and services. Operations a right the will Officer, operating additional as well expectations. additional have greater trends. then Mitchell, We Chief Kye? Chief give our will

Kye Mitchell

Joe. you, Thank

success Our as X.X% year-over-year. overall the quarter continued second revenues results in show grew

negatively runoff COVID- year-over-year planned related impacted rate. our growth Our

We revenues the would decline, Technology business sequentially be that X% driver year XX% have difficult and off success. year-over-year our overall approximately key grown our prior XX% year-over-year. Technology grew to comps. our increasingly to Excluding continues

business. We have our levels continued of drive to high in compounded growth Technology

XX% two of revenue the pandemic. experienced stability throughout we almost top has last the business on the over Technology years. was Our organically This grown

exceptionally great XXXX our this the mentioned, throughout up in of pandemic only correlation to business but XXXX-XXXX during believe As stronger demand well technology Joe our also business, a in the environment. than demonstrates and the We the drivers leading secular to performed not macro-economic fluctuations recession.

our or XX been and over industry the near benchmarks industry since growth for pandemic. has of growth has years consistently technology Our top the exceeded the at

are XXXX proved XXXX during Our have resources, XX-year Accordingly, high key even to nature strongest at also in projects because technology be environments, in lose historically the of early I reluctant mission-critical were clients the trends space. levels. activity and our seen challenging macro-economic demand and career levels my environment of our and to the consultants.

While and our strong year-over-year rates, our operating X.X% strategic recent skilled geographic bill We trends pool constraints, and demand rates to per how we still in pre-pandemic above remains continues have and of approximately over these our levels. to acceleration levels With activity $XX our to grew average X% believe hour. bill which increase. critical supports are degree, which sequentially to priorities. have candidates just less not a largely talent experienced continued The the elevated highly for client’s demand talent, environment impacted resources moderated

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

to that will and significant to continue competitive. suggest must investments conversations Our remain clients make technology

We demand capabilities continue for make solutions and strategic and to investments to see this solid in offering. teams expect our continued managed project

exited all the second quarter and the industries we in continued As into virtually support. saw third, we we strength

no one Fortune servicing particular client XX% industry. a very have and XXX, the diverse concentration any significant We portfolio, in of have

with expect diversification While specific we the may we within serve our clients to shareholders or industry-specific to our disruption over long dynamics, susceptible short-term our portfolio well be term.

FA a our the difficult third grow a declined Overall, business negatively year-over-year in quarter $XX basis XXXX year-over-year. may on Technology mid-teen We impacted, range on more of by nearly was expect as rate of contributed the and COVID-XX second second in comps. in These of revenues. growth in XX% the business revenues revenue million quarter expected, declines revenues trivial in XXXX. amount quarter The

our year-over-year to Excluding FA largely impact, this efforts. declined business overall XX.X% our due repositioning

the our saw revenues year-over-year to decline X% third Technology on Due in $XX and in we increase double an may While down we the were the approximately to we and increase starts in down business, continued quarter new as bill our XX% business, the overall our expect assignment per focus year-over-year sequentially quarter. to hour. FA second XX% to in rates investments digits low sequential over continue be in reposition

quarter third revenue. million included XXXX COVID project of $X.X reminder, a of As the

We continue with business to alignment support improve our and business. FA our Technology its

we for strategic declines in our The levels increase capacity tenured process However, continue to to improvements provide continued our productivity in investments our make to associates with expectation is along to near-term revenue grow. continue priorities FA. in

results. have We environment. s areas includes diversity work top-ranked have mentioned, significant measurement supported changes our and and we great will thank give who Dave consultants amongst all our cores inclusion the our culture. seven and turn retained for our reflected continue call made office-occasional like success. to choice am grateful including and highest our in I They I score like Chief Joe Glassdoor of employees I flexibility Officer. candidates our competitors are trust would best the which people and, amazing to to people the deliver clients, Financial new to the as over backbone categories our have our This across in Kforce. Kforce’s now in Kelly, Dave? and our is

Dave Kelly

Kye. you, Thank

points Earnings gross gain year-over-year. an XX generally of to due direct increased quarter interest as was $X.XX, a million included and outstanding year-over-year. swaps grew Second rate recognized of the X.X% of per share $XXX.X of reflects result revenues $X.XX which a termination our profit of primarily in revenues, were as to greater margins margins basis second increase a flex year-over-year quarter Gross hire XX.X% mix XX% stable. the

and profit improvement margins due margins strength sequential to flex payroll direct seasonally gross We revenues due taxes. also saw to in lower hire overall in

talent is for direct in revenues, to been business to believe clients remains technology continue XX% past technology increasingly Flex our the revenues this margin wage of While by which increases. Top not have stability revenues, hire concentration pace, success. expected are their year. to due margins growing the scarce, continued our than critical see provides nearly X% to over projects unchanged at constitute and Technology essentially total significant we ongoing in engage to have and our notable less desire we us

able our due increases consultants our been have rates, bill to work to these critical perform. pass in the through We

seen being are to a higher percentage percentage lower we We historically overall overall Technology from also than taxes of due have payroll revenues. of benefiting a

work higher drive results costs structurally from in going that duration forward. Our and quality project consultant revenue Flex more FA revenue longer to in to contributes expanded due average billable through lower points reduced of ability business and margin to repositioning year-over-year expect we and basis continue the decline efforts. these our margins higher XXX COVID rates assignment on a to bill percentage a the each stream in

SG&A third look average worked hours due average to slightly in overall by time Overall during typical a XXX due XXXX percentage expect to declines XXXX, prior and points are levels year-over-year year first point we basis the of basis flex recorded decline the margins the a our gross experienced sale business due historically forward. expected off paid hours of high a high technology our performance, higher of result the our summer performance-based decrease strong experience to levels XX worked period. consultants. revenue our increased of in corporate to expenses slight by we quarter, levels of In the as a utilization In forward in headquarters, half investments gain of support a higher of as seasonal to and result as technology As to compensation of QX, margins. direct of revenues well technology hire we continued as to financial lower going as

SG&A expect fairly be as revenue stable of to year-over-year. expenses and percent sequentially We a

of was X.X%, year. sale normalizing our the for last the year XX improved operating slightly basis after quarter was prior margin over headquarters corporate point on second gain Our the which

Our rate in was effective XX.X%. second tax the quarter

$XX second perform Our accounts in quarter, operating receivable significant and portfolio business continues were well. flows, million cash to our which exceptionally to continues generate the

return our capital We the to continue of shareholders. prioritize to

dividends repurchased During the quarter, paid Kforce stock. in in million million and X.X we $X.X

for provides to continuing results shareholders the to our tuck-in on and Our opportunity million acquisitions. under With on to returning was availability in capital significant credit in strength second the be is, and organic evaluate our while approximately our The suggest, our success. long-term allows XX% us best facility capital balance us in additional that our growth belief sheet return invested that opportunistic said, potential quarter. focus $XXX a

the in our in to as to active confidence our repurchasing shares. third XXXX the XXXX. quarter our we has XX respect future billing of same quarter guidance, and which remain of quarter days, the Given is prospects, expect third second With the

to the to $XXX and to $X.XX. revenues per in $XXX QX of expect share million $X.XX range earnings We million and be between be

that items guidance of not Our the may nonrecurring consider impact does or potential occur. unusual

We and continue for about we excited our believe long-term. be short are the well-situated to future and prospects

both in investments performance business, both benefit of of terms to our which has our to Our put an financial in technology ideal and us in we position shareholders people, long make continue in our incremental term. the believe

we the XXXX and earnings would that we per at earnings the meet levels, solutions remain business indicated $X.X in we with uncertainties. be stable to our environment providing expect domestic exceed billion Should year. share QX, strategic at expected remain release, least full decision revenues the strategy the even XXXX an ongoing exceptional believe would that or trends be full-year place, and technology us those our We second-quarter least huge believe demand our Overall, has would in levels macroeconomic talent put During with that focus $X.XX. to is strong we dividends. paying for

expectations. their of to market allocation. for in Our the call from efficient extend shareholders we and benefit team, sincere like to teams turn to to you for On continuing entire capital behalf a our Operator, outperform thank to continue performance like I’d over now questions. strong efforts our management our

Operator

[Operator our Blair. William from Tim Instructions] first question take from Mulrooney We'll

Sam Kusswurm

Hey, our is Thanks Tim. for here. on Kusswurm questions this for Sam taking

projects type moderate second a in to then And trends. recent the attached first down compare activity in there the saw environment if could could Maybe And your you second, types that Just more quarter? you activity? quarter? client the or have slowed macro that third or you guidance second was few questions hoping of share guidance? of what any share on how specific your groups I more is quarter kind in detail you consequent

Kye Mitchell

one, we we digital, a we're saw focused other saw I'll dip But a data, in. trends. we the of client strong and And from macro little support. see seeing tiny strong client that, except much good demand in question still But healthcare it's we in industries environment, sequentially bit with the everyone where Hi, in especially above healthcare. had had growth specific. pre-pandemic, than on big industry all in for Kye. was strong pretty the still support we we're like we we each that demand, start We still the of still then spaces. first, industries had decline We're we growth a those were areas cloud, that

good environment. So that in about going where we macro-economic we're feel

Dave Kelly

Yes, Sam.

we I third add expect move thing we now that, quarter, third would The we into that the other quarter we've said, as very month certainly into to seen as Kye good that the are say I would little environment or If technology. demand differentiate has better particularly we to been it year obviously seen. environment, demand had a than probably a I had so bit, the last ever

continue those So were things mentioned, better heightened really be But to they certainly levels. they to are pandemic. Kye strong than not the at very and as prior

put on point to finer what a she little Just said.

Kye Mitchell

results the it, I last when those think years you for incredible. still and is team for XX% look really which two up Yes, at in proud of technology, they've I'm delivered. we're

Sam Kusswurm

support. those some or were your gone, maybe pausing scaling some more does ahead? are are maybe think a IT long-term there projects? any where it's of commentary, for partner We project well, definitely still that lot even specifically and of considering provide recent back full of How clients, their steam you they Or helpful just just than more conversations more

Kye Mitchell

support is And strong, demand space in project it's still tech verticals. where any of at other those moving We project feel in pace going stacks, is accelerating we really our a The quickly. faster again, going our than good business. of very it's about focused all still solutions

Joe Liberatore

board. is solution, across beyond, business the even I’d demand seen we a whole. Yes, shift To project in as say overall any haven't this really it's Joe, date, beyond the

staffing initiatives not it's they're that very on stated oriented optional. sentiment business still mission focused They're their for businesses as necessary not just purposes. client I critical, they're these remains we've on solutions competitive core well, before mean, on or sits positive. So projects the

So driving we're seeing their to all and the technology clients continue initiatives. forward move

Operator

Northcoast We'll Research. take our next question from with Kartik Mehta

Kartik Mehta

Hi, seeing had trend wondering and of growth what wondering know good you've rate inflation. afternoon, was you're anticipate I'm I moderation the good about to I rate, kind some just you continue. a or wage bill and if year-over-year

Joe Liberatore

think the say industry, from if part to wage got we even ISI a Yes, moderation more what that years and I of were levels early wage seen report in highest XXXX, probably is of standpoint I've this seen XXXX. started my is XX the XXXX, what I would we inflation inflation we've week, I you And if just mean, an go back in this there. see to earlier in

era. are to I had same when comparable but seen while I was even experienced wages look What era, into inflate, wage still anything coming And these we anything months, we that point the deflating inflation that XX So dot.com moderation last that like or more probably mean, continuing point. And we not we've there, to environment in they're see to we were which the never really, experienced back time. play the we this experienced probably dot.com from seeing. even at at highest do pace

Dave Kelly

I to to Yes, and just follow would on to Joe's say, point. apologize,

So relates very as we've technology think margins. had particular stable right, about to flexible so wages, flexible in as margins it we our in

So I us stable. see we we guess, if see we it, have acceleration, as I slowing, see -- is think very if right, a margins further been further about

really to we as necessary, so prospects about has with forward that in expect make our profile. an as to forward us sure execute, on work and put margin move do to the basis, our we're And to adjusting continue look ability to clients to a so excellent and continue this in think environment a

Kartik Mehta

difficult. find And if you're an industry one easing people, any I in, just that, And or know, everybody. wondering ability be issue just then in the you're seeing to that's continues last just I'm been question, just to it for

Kye Mitchell

negative competitive, seeing still, bit but extremely in of it, it's it's still space. technology like business, in are the we a extremely little competitive. the technology There's easing unemployment mean, I still it's

to we're a the areas to in because going see going we candidate support, there. continue challenges that is there continue, think I robust such to you're So pipeline, some

Joe Liberatore

add an XXs I this to to mean, innovation probably years I is our invested the of But is we're to of equip better strategies. processes over part we is of in that what dollars and last our tools, continuing of five we've would people. technologies where cranked up area the invest millions all where

after how in board. we on be bringing we're leverage people that and candidates that's -- our different sophisticated that evolving quickly platforms that tools most to on have so marketplace everything to can can the So let get we the tools the they leverage able

So is we really that area that can fuel lot driving our because where area productivity performance this is of an really an emphasize, technologies and view we people. automation this a and our

there. providers and the core to do time what So the Which for is is find big this number time what is heart solution the the just say core it it's a we talent Kforce what because we you recruitment. is It's what actually that's solutions It's find the one me living absolutely we at front a people marketplace, were in and us providers ask as just why do. help competency. at. from to all to People a leverage the big in lot what are of do. of party to center, out them if differentiates phenomenal It's what Kforce’s third talent our

the that identify top against that and to even attract in Kye we backdrop to feel very confident marketplace. was continue in our talent talking about, ability So

Operator

Marc our with next from take Riddick will Sidoti. We question

Marc Riddick

Good everyone. afternoon,

has mix maybe talk of a that and you're you or around about I duration, So you bit if think bit about assignment prepared that evolving? visibility that duration. more could I the was looking the there talk the a wondering that remarks seeing, could little been seeing, the is like, I a sort how what comment on you're what if maybe wanted was bit in touch little to

Kye Mitchell

see that to really continue We to we continue a talent. get that capability, to to duration have clients that have people. want to digital we of the our not want there. much they do on is assignment critical supporting them in systems, and anytime mission investing still they technology they still what hang Once that up, clients, to continues And in our see people in change We're critical keep that. to to intellectual expand. seen on hang soon. so people to want to move keep We're our They transformation. cloud. changing are I to They don't our

gone linked continue assignments as throughout duration. tech focuses, the to is So in our tech, as year, we that see, XX% on see continuing of we our we're as in there business see we've to

Dave Kelly

Yes, that David add this what, Mark, I said, five what the I Kelly, length really add of is add would assignment last to doubled, so really would over years, is is to Kye right.

in to as their that think required business the of want firms our comments digital them other talent, Kye reflection find. meet I well. to initiatives it's hard a as They Joe such as across has are areas have to solutions competency, because And scarcity people. the to they transformation to looking as drive of of as the lose made understand some clients those that for finding said they Kforce, them on many site, Joe once don't they they're

for at average of stay. here, something look having increased we So us, probably here is length that's assignment to the

Joe Liberatore

back we years Kye put clients to I've that a Yes. key somebody to as that see compliment our would I again a for into last Dave is believe team's our up pre-pandemic person than there's and we performance operating to And that this higher at are great touch this, add consultants. think upon, I And convert convert our levels of is now. I greater continuing that well, in stated because didn't no think on I XX% made this now, I pre-pandemic than point on our time full and kind that assignment moved But levels. year-over-year, right our really earnings commented where We're we've match. had because to means we we are had call saw contract a conversions on

of the is indicative think I technology where is investing within. that in initiatives they're also the So of client terms that confidence

in spite of volumes of are rates that that growth are So consultants those we're even throwing up converting. high these

that how gives demand think the feel the also overall the us and a for I marketplace. robust environment needs are what within So

Marc Riddick

a very helpful. were then gears. forward, going much, your thoughts everyone. I I that bit to to internally, the current plate you on competition maybe potential Okay, there. take got what as touch and that looks views that's to a some the Thank for a acquisitions, know maybe as how of maybe on acquisition and to of what you're, what want quite maybe you've And that and pipeline whether year assets, so on that's that commentary or seeing did on lot shift pricing, for your advantage things you. nature, and whether Thank like of maybe evolved through the I wanted you're

Dave Kelly

out to I’d been at That Dave it. building of, just actually quite bit again, is, in have of us quite Kelly successful start an in over made focusing an that dozen spent we and machine Mark, Yes, a time growing years. pointing by a acquisition like organically to technology focused a haven't reflection actually so we've on

of think I you think times we've stock, it on investment over particularly touched might the expect, might do, been to over the performance acquisition increased it types of our years, acquisitions we've I as use think years. us. teams, type come consistent exceptional the an growth been two come right it couple So might be on results, with last And with that of difficult our very we with Joe makes strategy, buying capital you accounted that of very or has additive think, last acquisitions allocation about those that cash, our and five to that consistent our for of we've four been great XX% a in very integration dividends, performance,

But have fact the that haven't don't use we where extremely is, we just the expectation any Certainly, in been is as volumes the that where near opportunities. we're at So speaks of change. term the best bar going anything environment to our think in that's to looking have we think high. cash an in I done years I

Marc Riddick

line there. me, that's or if on in some the, seeing whether just evolved, give to thing taking then touch views can as been you're would But And been, that's seeing I would sort with and what what the you folks last you're little or your the office-occasional as to to for you maybe Thank bit imagine it. about you. as around what of vary there utilizing far thoughts that place expectations wanted maybe talk it are commentary great. you're Okay, if with what's how because what I And activity seeing probably a how maybe as have a bit.

Joe Liberatore

this at cum our how point surveyed we with really office a throughout would flawless forward I strategy, right forward Yes, at that, say went And exceeded has associated was move technology expectations. would in manner. after, say in look a occasional teams I we've on have were terms again, have embraced XXXX that that upon say lot it, I of kind our in May though our on of their time since our was the of so this. noise, would office-occasional that people but from initiatives based the been office-occasional of pandemic, really feedback we hearing which we're out a And our with basis. what was model even desire rolled that there still then all When

are Microsoft and very We a centric shop Microsoft. with

and our I that of into that CEO down doing about, essence, teams kind with Microsoft the a could is we ecosystem. Microsoft at, And third partners in they're week we outcome web the had as think Microsoft So what philosophy you if for, on that party what platform. just looking Microsoft bringing through last a of video everything XX% were were doubling I'm telling looking their stay would in went talking great hit we they're accommodate integrating that we really and onto technology there's we process teams and if

communicate processes in by they're in in within whether of to have table spot trust or and from find our the he faith was processes level the were integrate, of were technology, we technologist we have. all and seamless as office how with understanding from they're as where tell this strategy whether just adjusting very kitchen working part are for we you of we we was great can we where apply interest and a an their this a with embraced So whether today we I'll they're And beach, then people where it. really working to that level or might the they is great are big and be. we And an interviewing, people's interviewing were part and And opportunity our our such terms doing. high our by the a I part Kforce. well and that it area where ourselves attitudes where people what make had wherever technologies embracing

So question where their really directionally point think it. and embraced And have this the the employees no This expressed is that's unique in time. desires a marketplace really I we've in are, us put this gone. there's is what spot has at

Operator

[Operator take next our Sommer from Instructions] question Truist We'll with Securities, Tobey

Jasper Bibb

is demand services vertical. on Hey, Bibb segment balance on how questions actually over Could for in good just largest comment earlier Jasper on you just with from This the that maybe you financial trend Sam's year? of the the afternoon. expect Tobey, being following up to

Kye Mitchell

that financial in changing, there. growth strong. to still good have demand We're reason services any see growing seen still and We've don't

financial So well. going is services

bit the fortunately, of But impact all think technology, at in a it hasn't the industry. had so an us. just little space, on I in with there's on FA change focused mortgage we're

Joe Liberatore

their invest then space, services going in look really that look, larger fin-tech. combat the within have the a say, taking within financial much having you factors you would so There's what's couple are right? there, haven't, you And substantial place to fin-tech. happening you financial technology have into of entities I platforms to at when

all professional that put drivers we it's side a legacy Kforce, mean, on from do the any marketplace. as organizations you is know, I financial together, all of just a side as largest services, when having in the that's of mean, to positive really out you the within demand think the for and are services even financial largest not have staffing that segment innovation I standpoint, from what solution really I So industry segment the

really have the one depth good. of and breadth And of very So relationships. we we long where feel standing that's areas

really on teams and investments So great our around a aligning team are is necessary, have where in organizations understand to forging their their and those and and priorities those with job -- opportunities. are done working where relationships, our

Jasper Bibb

based pretty ask of the in wanted like third it. FA it's XQ. going about again guidance then just I flex, to be your the down on sounds and like Got looks And quarter repositioning in to steeply

expecting XXXX? kind that you of business over expect are level you rate continue to to medium that decline Or the to So in in off be kind of would decline term? of

Dave Kelly

I this think been for this, as technology I this story, repositioning part is Dave Yes, our what modifying our has help a really business. that to actually, especially would relates say is important done us of and Kelly, to it

that time and as at As our we, we third finance declines fact to you supporting the fortify out, and while to pointed we accounting. the continue same in in clients would at that forward, our look strategy for the us the expect to moving had see alluded have we quarter. to technology And efforts

is of just I the having success we to it strategy technology that our should think that reason something business, growing that continue. that stands that we're reflective

technology, to I there. respects, as sure the look of at market So think investment I in bets in the they're as grow trajectory investing of rates our business the growing because and we're placing continue and focus making at there, I whole, think double some a

finance sometimes of has resulted necessarily has current right accounting expense they been know a And you, the these change now. in I don't that that in of state investment good would from tell decision. And resulted at that Yes, of some think obviously, I lack I trends. has would

Joe Liberatore

technology footprint. in and team for really much I business. would We from our away continue think Dave's susceptible the are is which diverting to really is FA economic migrated reposition that that skill dividends in sensitive, we've more higher resources our quarters, the I has what strategy in transactional I to prior now $XX to And conveyed roles business automation at term. albeit the approaching add our towards that legacy good average is more really FA is synergistic rate space, to long was more we're mean, comment with think is our us the up believe which basis. from on and I really we've paid our Yes. our that experienced it an most run significantly, done higher think FA as also offset a And gross a result of increased, profit XXX year-over-year a progress, hour, off job, basis a year-over-year is I the pace bill margin I sequentially, and nice of mean, which benefiting not points to flex repositioning.

job. by going a nice not the continue forward. done to here game strategic right our on has move and calls make our think really again, playing I on a basis, for quarter to team to But long we're the quarter So we're business

Operator

We'll question take Marcon Baird. Mark our from with next

Unidentified Analyst

for Thank of think on how sorry if for on how during repositioned of how wondering could of recession do already, the journey. late, Flex and inflect that but any I'm questions think recessions. reposition great terms point you I up growth? been you will you these what hopped is that far if this kind you questions. are was back held would in in some gave taking Hey, about hold give would At business commentary some you asked up our a to FA [Inaudible] prior is on have you IT And Mark. numbers

Joe Liberatore

data, data, needs anybody I migrating that say, Yes, even environment, it's synergistic I whether everything those away. everything with this the I area mean, leverage we footprint And how difficult and customers to when footprint from would reading, Gartner understand think side else, I'm their our hear specific technology McKinsey, are probably we're it's in equation. FA a more goes very our end the of to or more back data the that again, go of their our don't is or looking people on where

driving from economic In we critical after highly force, on transactional a of fact, historically susceptible to is which went cycles. repositioning probably business again, what intelligent become to they more more why our the of big been business was a business get And had this away decisions. part times and economic

Unidentified Analyst

you. thank little just there. just one guess up And Great, follow I

how on you that within client that journey? think you question, inflect following when how with far Just to is do of just do that the guess, And of you transformation business kind long are kind expect back that I base? up grow resonating to as

Dave Kelly

last talked our more resonating question first, So less, economically about I is is an with think so mentioned, perspective, well, think your I I our would rates hour. resonating say we sensitive, average with $XX to Joe, synergistic bill quite technology much from more at certainly businesses, clients. certainly answer frankly, I our or think just it

decline So the I that is had and doing well, technology. we to continuing the we're quarter make in that of investments business third in itself, are trends indicated think to going I mean, of because FA the in in

We to expect that continue.

in further bad But it'll So because could business. to think not from where a added to be for it go our down we going be is that's it Sure. technology us QX? investment

Operator

And question-and-answer turn to any that over for Liberatore concludes to or session. like the Joe the back closing call I'd additional remarks.

Joe Liberatore

the efforts for us you you Well, clients with and every allowing for again Kforcer XXXX. to serve of to in to quarter firm. you. look after with and and privilege our to third We talking trusting for and like and partnering thank you extraordinary you forward I'd Kforce thank your your Kforce consultants our support our your say to interest

Operator

That today's Thank your participation. does for you conclude presentation.

disconnect. now may You

Kforce (KFRC) 2 Aug 222022 Q2 Earnings call transcript