KFRC - Earnings call transcript Q2 2024

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Operator

Hello, and welcome to the Kforce Second Quarter 2024 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Joe Liberatore, President and CEO.

You may begin.

Joseph Liberatore

Good afternoon, and thank you for your time today. This call contains certain statements that are forward-looking that are based upon current assumptions and expectations that are subject to risks and uncertainties. materially other factors the reports vary public in SEC. may and filings and results from listed the Kforce's Actual filings with We any duty any statements. cannot to undertake forward-looking update

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

published In within our our prepared Investor addition, our remarks portion Relations we of have website.

clients our that including XXXX over trends the the continues throughout and half of of recession the performance, environment the future current than our quarter XXXX. constructive Operating growth second in into us near business expectations. technology falling on discussions indicate with our and Our sequential was stable to operating consistent with remain more be to mixed. opinions it a most was the U.S. in The first

stock U.S. for the market reach this uncertainties concerns. has remained the in backdrop, indices consistent may growing as geopolitical for that remains increase and initiate continued inflection well technology the the an desire quarters. significant confidence new X soon Against over projects clients demand there to we point, still economic heightened suggest as While resources

continued exercise speaking, be have projects and to initiating the most to investments broadly a critical continue caution, degree initiated forward. proceed new Clients technology of though

begin the of at an we accelerated uncertainties, to we beyond clear. our initiate to to for to look uncertainties clients we As current be pace strategic investment expect the be building encouraged that continue technology by backlog imperative high macro priorities once

technology to solutions the focused Given space. is there than no we secular underpinning, talent be market simply in other other want

make our performance half monitor any indicators and of trends As XXXX, we we our second to move necessary business. adjustments closely throughout and the will

more both profit in continue to strategic as greatly believe which markets constructive. term and and improvements operating we become growth will line priorities, However, to top we long invest intend benefit

continue prioritize our productive on investments retaining focused We most also to associates.

following The slightly near revenues growth in second top end our for results, share guidance. were leading of of quarter. we quarter our our technology indicators assignment experienced build second consultants the to earnings in revenue on the and midpoint March per in above that sequential earlier were the growth in XXXX, contributed the our As guidance XXXX in

Our stable attrition, degree of Kelly upon the our a will quarter natural quarter second were following largely throughout consultants technology and on early his operating in Dave assignment assignment expand remarks. trends

Our what we stay close message which our control our in while decision-making. to to view people people remains our a maintaining is unchanged, clients long-term and our can

continue our the await efforts of portfolio with to addition, Kforce our partner In on for clients to eventual up-cycle client while and focus increased diversification we best they confidence. position to peer a

to multiple blessed economic which tenured adjust are and to is the team, to conditions. through executive been We has prepared leadership quickly market together cycles a changing have

dedicated equally that about do. and they tenured, are have what team high-performing is blessed a We to passionate

behave cycles and what in including economic associated is use differently, revolution evolve strategic an role all a to bit with of technology, empowering remains early-stage will continue While clear AI instrumental and businesses. the increasingly play broad technology

continue believe we earnings replace term, resources articulated historic technologies over technology and long the follow AI other will change have ultimately that the calls and of with conversations that demand the on shareholders, of we in As than rather accelerate. driving and pace for long innovative will pattern to

that We are meet ideally positioned to demand.

real their companies to transform competitively and and help solve help time identify skilled core problems at ability provide competency complex and highly world-class scale rooted is resources Our to businesses. critical them

more staffing our in projects. focused partnering engagements be flexible model meet direct with and solutions-oriented a also of spectrum us and forms nimble assignments Our simple allows from broad their traditional to clients needs to engagement to operating hire,

IT cost-effective and solutions experience we market speaks proposition and addressable believe which our to many market. than to offering, IT growth our We value is in technology are that solutions times provide greater continuing solutions to staffing consulting efficient

critical our many business been for grow model business decision confident improving has consistent our organically over Our positioned firm a market years, success with condition. that and well our refined to is to we remain

been about testament cohesively one incredible midsized Kforce One best our I'm Magazine. priorities. our TIME tremendously of remain companies serve of strategic America's they candidates passion strong and enterprise as the has advancing with to built. Kforce the culture execute is clients, This to proud have effort by team's to named and recently we Kforce. of company also another confident as meaningfully resilience our while and excited I future consultants, continue

into Officer, greater as will financial well operating our and Operating Kforce's Dave? expectations. Chief provide then Jeff insights financial Dave Officer, now our recent additional Hackman, will results as trends; future performance Kelly, detail our our Financial give Chief on

David Kelly

Thank Total above revenues million X.X% the X.X% midpoint our quarter expectation of of year-over-year. the you, Joe. slightly for were down sequentially $XXX increasing and second

are Our assignment uneven. in X.X% activity of aggressively assignment taken speaking, clients, After throughout others of the business clients, stable more a It of largest the same significant have seen quarter. to important more This said, largely X grew approach backlog increased conservative the technology years technology That industry-specific, We've initiatives business last a consultants has the over early pattern addressing ends, clear on but confidence rather sequentially technology broadly while in begin measured purchasing landscape. our within across investment. the our was our is built X.X% investment. period up second of industry declined experiencing reflected growth April of and and the were awaiting that year-over-year. not is reduced even remainder some corporate some that

and kept the economy, pay overall near-term or X technology stable U.S. technology Encouragingly, trends options for to largely as rates been our and in talent the our in the over in apparent overall solution even average The recent bill or anticipate $XX.XX individuals in of managed the and X.X% catalyst of have in business trends in grew sequential highly have third as X staffing project last the relatively moderation have strong both industry consistent stable quarter. a stable. rates no business assignments sequentially we skilled traditional slowed and demand years. these part quarters team Given a bill

initiatives modernization governance program Our clients and data remain ML, cloud, on project and efforts. and and UI/UX, management critical technology analytics, AI areas in the intelligence, of focused business digital,

We than the have of foundation of established range across sourcing at years. talent our quality clients more for sets a for scale skill XX

skill including clients. As around technology of over evolved decades, we AI, our advancements evolved the changing demands the with has have set recent

tax our Flex business points basis XX.X% increased annual margins of sequentially in to due XX payroll resets. technology primarily

business on a been to the stable an sequential bill have the the quarters, they our which encouraging continues pay in basis, X over environment. last As technology point be economic given spreads data in were cloudiness

to have see as offerings consider cost-effective include teams We solution solution success our continued engagements. requirements. traditional Clients for a staffing essential managed beyond service to broaden assignments and project their services their the project and right access to our to talent

strategy consultants relationships our project provide address Our engage and on utilizing recruiters to we efficiently higher-value existing cost companies teams, challenges. teams effectively strong integrated capitalizes our world-class and and the sales have client with by solutions that

investments Market of and is their portfolio advantage. leaders is maintain prioritize market-leading companies. large to comprised diverse client typically technology competitive mostly Our

experienced sequentially sustainable, needs and industries. and both From their drive addressing vertical, focus notable some long-term Street critical we growth to above-market services perspective, business our Our after experienced The to largest recent continues financial National in performance. and headwinds, travel ability in improvement on our be services, leisure

decelerate slightly with to Looking technology the compared remain down assignment on consistent stable we may and second a the sequentially we to quarter. QX, forward at second to current as Revenue expect persist, be to saw the quarter. bit consultants levels should patterns should relatively decline the of year-to-year conclusion

Our of currently business supporting decline The sequentially X% due we approximately the our efforts macroeconomic impact environment. a business, declined X% declined XX% more are revenues, no FA year-over-year. reflects to positioning of our challenging and year-over-year and longer

hour per rate higher of average are of is are more areas our sequentially offering. with and reflective Our technology skilled the bill service that improved slightly approximately pursuing we synergistic $XX

FA digits. revenues down sequentially to mid-single expect the be QX in We

in seasonal basis has have business last over resets. basis as sequentially, margins FA in FA XXX by improved improved. Flex our X driven tax business points of mix XX Flex increased payroll our margins significantly points years the

QX. at in remain pay stable We levels fairly expect spreads bill to these

a to We expectations. between have thoughtful measures taken our associate revenue and balance productivity strike necessary and

have the market business in we retaining are downturns, on well prior we on to economic investments demand we focused in most the prepared targeted As ensure are it capitalize done our accelerates. and that making associates productive to once

of in teams continue project these offerings our and We to well. is firm, integration the the progressing within which invest solutions capabilities and managed

XX years. in our delivering as have than longer persisted about remain above-market position business and environment I While uncertainty in strategic the for tremendously has expected, have we over certainly technology excited ability to continue macroeconomic our performance many

our The as consultants, displayed organization the trust incredible success unwavering clients, by that and resilience the team. we happen and appreciate placed us. have I in doesn't candidates our dedication, an without creativity that

now will the turn Officer. Kforce's Jeff call over Hackman, Chief to Financial I

Jeffrey Hackman

Thank you, Dave.

'XX sequentially, quarter $XXX.X our gross million which tax slight of to lower due the Second increased and pricing in and points sensitivities. pricing expectations. high guidance. and hire primarily due just margins we're basis moderated the XX.X% of seasonal per share XX improved mix year-over-year, were declined a a basis quarter following of direct resets X.X% year-over-year mix. combination significantly of $X.XX a has declined Margins of the Earnings midpoint payroll of earlier above our points slightly end of revenues a to compression hire to XX direct near revenue second degree Overall,

in In were and business fact, Flex margins unchanged our technology QX year-over-year.

the experiencing. of was Overall is again look an given as forward which QX, basis year-over-year. expect points XX of essentially be we we percentage we're to increase SG&A stability XX.X%, them As unchanged expenses to revenue a

our mitigated levels made revenue our disciplined the structure, has and cost gross impact to XXXX management on levels profitability. in the and Our structural profit July adjustments variable-based the significantly reduced compensation cost lower of revenue we lower

said, to prioritize contribute us to productive our associates invest capabilities technology sales in for making are longer-term in in investments With expected of advancing prepare initiatives, all are their more our most companies enterprise financial investments targeted and and which our aggressively when that our significantly initiatives. retaining objectives to well leadership we continuing and

Our end SG&A of our and operating expectations costs. of margin benefited Flex high margins towards lower-than-anticipated the was X.X% we from strong as

equity rate was XX.X%, on $XX Our with was our Operating quarter second return and in the aligned cash were flows XX%. effective approximately expectations. million, which tax

solid significant strongly has with pristine We driving sheet of have business returning which minimal by in results prudently resulted our organic many pattern debt. strong growth in A over consistently capital managed balance a returned years, to been our and many million in earnings. activity continued with share QX consistent $XX continues to dividends consistent be to over through repurchases. repurchase This over accretive shareholders has and years,

in, we the of increased XX% profitability which each past while business our of is our growing years, Additionally, X in shareholders levels. and X.X% approximately slightly in improving in represented the the XXXX, All than averaged dividend amongst of cash our we highest since to have yield and generated, our capital more industry. the million significantly $XXX current has

strong maintaining climate and flows our in aggressively Our us predictable remain the return cash of capital economic debt to committed while regardless to continuing to allow investing business still levels. minimal

for Our prospective threshold remains very high. acquisition any

sheet provides balance credit us shares. strong aggressive stock the opportunity with have the is the there in facility our and our Our and flexibility of dislocation future more financial if we between under expected performance repurchasing get a our valuation to

XX second third quarter as X had than of is XXXX. the of the the third XXXX, billing more quarter same days, The and which quarter

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

stable based and that of Our the occur. items is any potential unusual does not a consider impact assumption may the nonrecurring environment or of guidance upon other

deliver operating long-term excited and us above-market about while billion term, to long to the greater our make slightly margins our profitability at than longer-term annual in and investments attaining revenues. prospects of growth results position strategic enable the We help for drive necessary double-digit continuing objective remain to achieve $X to over continuing

I'd their behalf entire of our you to for efforts. team, On teams to extend thank like management our a sincere

call the questions. now turn over to We'd like for

Operator

from Your first Mark question with Baird. Marcon Instructions] line comes of [Operator the

Mark Marcon

I've got couple. a

been through going of different And one economic slight softening declines, terms seeing what to just confidence. mentioned were up it's awaiting is you of very prepared a the increased other that when of of wondering I'm comments, you David, and of currently of we that function may AI extent the has lack rebound cycles terms impact some during companies or some how from period they're much think of And a things COVID thoughts confidence period come is, then there. kind now it managers end And about, going your versus we're overhired one cycle first overstaffed. extent just does some what of cause having you're increased the The uncertainty your because and the than you're sort what revenue is environment how in terms is what a of the evolving? you up looking to do to And level is that wondering freeze to what in of signs IT I'm confidence? for an up up? end are in of

David Kelly

Mark. the No, Sure. appreciate questions, I

think I there, as great words, talked So I as is uncertainty a that marketplace. X over well last in quarters, trends both right, the certainly you business of of the our But continuing important, our of in I the resonate a seen think, the trend. other thing margin last revenue amount said stability actually technology terms course see lot to We've we've think in we're about confidence. the year,

uncertainty to investments. to look We've think We've We saying, late right? of right? data I that to accelerate on had is some economic have strong. side lot relates companies other it unevenness things, accelerate inflation. at it's surprises need all the there, and and been I We've there's an down had a and there opportunity had So the as at

pandemic, uncertainty during I couple hiring. "I've say, driving the on lot relates a So think of And to fair, mentioned are do got time." isn't to also this I certainly, essential. of things, companies those think it's are calls, those see that things is did we've a opportunities, that you to really as and mentioned prior the things you that it

company It's got of critical, do said think what a of and So We've having resources I restrained. some is you're actually are got spending some specific. have a seeing forward. in But a are industry more that money. lot don't think that are those to who We've this is adding more probably opportunistic. restraint companies does again, with part pull I that, things

it's of lot differences. I every So the same reacting wouldn't is say company a There's way.

about the -- think your the related what question talking of last I the kind to past. in I'll repeat of question and AI, last been part just we've

lot think I it there's as AI. lot early relates thinking benefit who we're but of it a in of them, might about There's to companies data were the innings how a concerns.

their seen projects AI fact, yet. some significant our are But data. driven As to thrust business we the of from a that of matter of by is solutions managed haven't we business seeing a companies of looking new rationalize as

So that's seeing until out these invest I leaders whole their are Market they maintain don't business market we're you're investments before saying, I with to "I'm innings leaders. to to Remember, that are that I know there. looking advantages early going in who necessarily constantly because be too the wait have. going the to late. plays AI thing dealing make

it luxury So of comes. I don't have think companies the until train many waiting just the necessarily AI

So hopefully, your I answered questions.

Mark Marcon

If given levels? yourself we're for $X billion margins you Or annual still position targeted pattern revenue. it this How steps if start appreciate I get at you hypothetically were running And pattern or or $X.X there? in the so. levels you thinking It for $X.X another operating levels we revenue? -- get mentioned the say it just were those if you to billion, revenue to to the $X stable with margins continues. is. that to that that some closer that revenue to let's And would billion the over answers, order in continues about closer taking to expecting you year in And are capacity Would continue -- billion maintain then David. double-digit that uncertainty

David Kelly

Yes.

in years. stream advantage when company business? that. our we sure things good capacity on We Do to obviously have needs to many the our during that and done believe, of job, holding things So not followed very of for meet And turn, you the do. such $X kind take capacity we structure. at on been though. over to cost this adequate couple to a of I least capacity Mark, grow clarifying supportive billion can We're We've posture a have I maybe guess a downturns revenue holding

along investing technology is say, point lines, it, right? bit well in our a I a to I When think on those have in Obviously, sales a we've finer the as lot about side. business, recruiting side there we're of that on would resources continue make drive just where capacity, the enabled the We investments place to the business. the it's made investments if of

business. there's are more effort win So increasingly those people longer, place taking taking know to We productive. it's that's more

we're more actually to if on -- on add, sales the side. to people, have So and which holding focused looking we

Joe the thing, I though, significant I. think, about The did cost amount mention remarks, There are to important really as his and structure, a I to alluded it, in is other of drive both costs. efficiency the productivity, and back longer-term to investment office. office of in that front Those we terms are operating terms benefit, in and both are in making of the think

maintaining are So invest in long this a the for it's think period term. taking to as we always opportunistic for -- only us we not we such capacity, are

lot into in so past. And to So We want margin. this think have and the this. that prepared the operating we we take cycle, to just there's a that of often we as said, track can do accelerate things we're that both to right be advantage go we've on revenue

Jeffrey Hackman

$X Mark, operating I objectives our think, It's greater margin. profitability of you billion. And than mentioned double-digit slightly

that I as think the speaks that And think, we operating we of progress double-digit on margin Dave how I touched of nature see number grow. key to, a linear towards think points. I might

We've I well. double-digit talked from point, disproportionately we sales part drive margin, the made getting transformation basis programs Mark, look and of that currently current comment we've our of our that margin standpoint also the efficiencies As back-office these try the that. to about investments And an operating know that we where our insignificant you operating at is points we investment program, that delivery to in as of investments But to benefits not from look operating as greater the margin. you and expect, some today's the making make compared to past. a we're delivery in towards both to of XXX this, contribution expected about at are in

investing linear on which equation, Dave . the you bit I well. a certainly of step a as and the in certainly on office of -- equation commented think back have So activity,

Mark Marcon

you're I little was the uncertainty and billion. was again, confidence of been keeping, other I overcapacity was lot that I to out office. improvement that, we'd a given could an see did lower with than than came $X.X just get Could environment was bit I revenue. to ceiling. appreciate we expect still some But opposed improves, more stable to bps the still you to margins? a If other decent environment? the a the there's billion about, that wondering of to a when comment or on just that as reason XXX more you XXXX, growing We've for $X.X And trying regards back there. in organic that's we the terms rebound if of just conclusion a -- that more certainly mentioned, the see we of it

David Kelly

Yes.

So to I think management about we how any we're adapt. I think continue in business, think right? good team, dynamic just like we will the

they and excess as as I our yes, of the those mentioned, -- not and improvements capacity say, still we works. and more do improvements slowly will that in think to of way I fair just are maybe improve amount this, because see just revenues model capacity. if As alluded we'd we revenue operating like. expect margin than -- do see to improve and in a we see Jeff huge We have we There's it's of

to making even is revenues will drive be actually those think So that to greater going we're to prudent. as been might monetize it productivity. more be improve, of technology investments some able We we've

margin in growth at You've saw the improvement seen where modest revenue even that -- we levels. that in I cycle, mean, saw meaningful up operating you last

we we sustained a here. again, decision our don't consider we're upon going capacity in think a think, we what we're but in much be today, we period I see closed place, to we time And So at right path, a nimble. if we'll the -- eyes think We how have will of slower do course, of investment on that need. make based every that see and we

Joseph Liberatore

Yes, is about you I'd think that Mark, is it, that on this multidimensional. when right, piece The last add Joe. this to is

time well a time revenue we at remove priority equation when back-office can't a as and maturation on your standpoint. you this because looking put higher there, we strategic the of we're have going to So were that lot transformation. Mainly we things that different point, a and from out from at level

out As we more, time of get continues we will to greater that. that play leverage suspect

not of So dial in equations in our into stable more a time those that still if environment, we're operating growth, will have in margin. we favor working terms

from the things builds from how office our on our refreshing either traction capture our that, working real go-to-market we clients, that of us the at it we some at approach with accelerated standpoint pace. hard methodologies more our So then that's we to back our strategy starts an grow transformation. When integrated share Gemini market and and/or been the and to position revenue look and have have which time pipelines, the with teams

that productivity neglect and these efficiency the the standpoint. So time a things we'll leverage of maturing and from can't get you aspect

So to on the have table. the difficult unless question I just answer a -- that's very all we why factors it's

Mark Marcon

been really that, numbers F&A. on clearly is And last one one But this is Clearly, me, for the then deemphasizing I question. appreciate minor you've a and emphasis Joe. of IT. more

run justification. certain levels a end strategic some interested rules at multiple key up run fulfilling of possible the is rate higher annual all F&A, rate, years. quarterly decline could and is that are should just level wondering, of the fully of there in. You're appreciate continue that it a in Or for you I And out? clients where basing these we that or say would I'm that level terms of your

some going Just out trying figure to at base to out that's point? if

David Kelly

Yes.

Dave again. So Mark, this is

right? And for is general, challenged that, that I seen near don't the has that. think that F&A think just in market I the in term, expectation changed. We've obviously, So

say us, transitioning I think job, we've that business. to a I nice for done continue I'll think, in

there, right mentioned, Our with We've it as an our more there synergy to path. is strong people There's the enhance are some consistently now, I Obviously, think a relates very looking how that average rate business. $XX right we at on And who we're technology business hour. at we're market, involved lot business. bill that in as that projects. the address looking business. and got we

-- right unchanged So we're in taking. remain now, plans but our terms of the direction that

Operator

Your with next comes Blair. line the question from William Trevor of Romeo

Trevor Romeo

I kind demand one the I progression the several over on months, just had guess. past of of

think I sounded in you since uptick uptick like you seen further assignments a haven't saw that new then then. really And March. in it

So just of kind a one-off lived? you just so any thoughts months it March? few uptick March Or changed more since I something increase short on of has sitting why later, that here a in was guess, saw was

Jeffrey Hackman

And asked. new It's quarter, Yes. talked and last yield January, improvements you saw itself that the we about talked good the we QX manifest of call, in about of that. early late quarter earnings that question see is expected and that to We ahead a Jeff. Trevor, month of we March. in February, starts this did assignment last we our

a And a, assignment very technology on the contemplated, for during second there's from in each bit our and is ends. in of his or stable our we our stable mentioned consultants a very the a Dave our as and largely bit what quarter natural remainder think prepared then say, of where experienced of consultants Trevor, natural in dynamic at were attrition go as quarterly ends similar remarks little quarter a quarter, in you the business early assignment there. assignment the would April. second quarter, I on a We quarter, that that third guidance saw I in of beginning

of week. So Trevor, as at pay to those every every our we, well you and attention day, all KPIs, know,

the is Dave that think in a seeing also what business time. mentioned or some driver his we're inflection great point, positive stability prepared in at I event an to absent remarks this

when leading business of the it -- for technology to of very So grow slightly It QX. hard able QX. our at lot good was up a being And down was us. work sequentially to result look at to to QX QX is midpoint a you

go. very So as stable you

David Kelly

data just couple points, in a It's a other of bet right, terms stability.

that I word. operative is the think

Our last basically business the X quarters. have margin technology been for unchanged

average I X rate, bill bill actually, changed years. almost hasn't that rates, Our in in $XX.XX right, mentioned the

you're talented in seeing high-end that they for those that an an paid good. where expectation So continues talented also to have those demand be environment resources appropriately. resources Obviously, are

seeing to stability as signs you're the stability and clients. the of behavior it signs of So you're terms our in seeing of marketplace. demand how relates the of talent in supply dynamics

So a is word the stability, operative . yes, -- lot of question. no

Trevor Romeo

Yes.

for along That of lines, Tech kind of sense. Okay. guess through come And nice it the makes lot a I those was to see sequential Flex. growth revenue

in in you like there necessarily we've growth that performance project that, that the that QX? that that some the others think QX drove to from better spoken new with, new you industry maybe X or didn't that, drove like of anything others some specific see if look think Was sequential anything logos, wins, I QX.

Joseph Liberatore

a it's question. Trevor, great

we've the last the for think years of after the the lot combination and part of been that team. of a better a it's efforts I execution the of

So I know, it's the means the you to coming mean, share graph. the credit I would as which because have give expanding, that a from is not on market market team well

are front. teams and have we're just that on past, our started more effectively the think I than getting in So they executing

of that of place put in the where in optimistic, So the some programs with I'm evolution those are we and we've especially very programs.

So unfolded here. I think that's a of big what's really piece

Operator

Kartik line from with Mehta Research. Northcoast comes the Your next of question

Kartik Mehta

And be to when competition. you bit a demand Joe, of others point pricing little lot about maybe that pricing to are and the increasing? about I picks there's at Are back concern have uncertainty really if there a think up were about you because capacity Want happen. a keeping talked market. wondering, I'm in any that people, competition don't the

focus if where next on? that have competition in wondering I'm could you to concerns any be area you about or So have really

Joseph Liberatore

with downturn -- financial stable. in would would the we say competitors standpoint, the or pricing been say terms that I we of little at seen this pricing saw coming that we've cycle that's is really competition historically the during seen pricing, We dot-com pretty scale, operating anybody I has exit of business haven't I'd haven't bit Yes, crisis. amount away. giving in the -- of the a in different. a during from cycle, in we say, one competition market every the the don't marketplace But predatory seen

very talent still specifically -- for is So demand high. technology the

kind of a is supply/demand pricing standpoint. the that's natural So there from control

XXX So on a big the this the we our space we to managed is growing XXX better that's service commitments. after and part see basis our typically a from points anything business. by types team those don't way, the of of really And see there. moves traditional staff solutions standpoint than of and business log go And more faster at is our managed part pricing to is a base

on with we're a from value resistance So way, to spend relative standpoint providing a to we make people clients. lot to to services that we that good. the bringing time pricing of medication are a the pricing feel real we those By sure at our

and more can that on their the skills the going market needs. at in exact into equipped kind price what that a from to standpoint lot piece I'll that's means table after from sitting that the true consulting giving a clients more model of and because bring benefits a sits are And believe more would then right the solutions don't a the your efficient resources much right last economic the time the are players. at we is seat the deliverable the have the call business, price, between we augmentation deploying bench somebody of that's space I that skills we than business we're consulting is still not and that. go a with and space right and to at mention table help us are And looking we're a them maybe we quality same at that that the traditional because to have staff reasons We're the getting efficient one of

those from pricing play So things come all standpoint. a into

Kartik Mehta

And just then last one one.

business stop and looking the just kind any are thought going of you're since all extend You've talked how be they seeing there's of projects, just curious moving? might figure seeing anticipated projects out on down you to where wondering forward. slowdown maybe clients to sudden or I'm start And at margin, fundamentals that you indicators to figure the are of were the you're end, the moving where lot about even a if a other on project there trying maybe a slowing is clients that out a

David Kelly

just X Okubo, number were have Well, at are or think prematurely The thing back there a had institute and a and who would would actually aggressive to way And ending can't Certainly, I where hesitant. it's year I've in time in spending. think, going a I to -- stability, who said investigation, the heard significant were Yes. last I earlier, continue of clients. I is spend. where remember more there it right, more projects by of saying, say, say, state the any when clients right, they I certainly I because name clients as projects, thorough instances are many the I'm in one we've clients our ago, like been there not of we're to equilibrium think I in

they prudent are nature. as the initiate they in process their through following they critical that that they're think of once projects, thought are because we've talked them on a I about,

maybe to confidence us that some is truly some that's movement that out that not have pretty think some is things right gives we the spend rung but consistent now, sentiment, I And that look weren't something the significant we something case there those in likely terms So stability we've cool. the until of is sustained have seen term, be of as continue yet. as we'll to near we that that

Joseph Liberatore

marketplace they here. It's servicing more in can look all you as -- teams to focus application customers piece competitive not remain would in advance something honing one to you on at when digital, turn the that of business on to our the these all effectively or these down. when people. also development, terms having I and to are invest continue off internal of their are tools paramount that that the the as are to remain add organizations well that, And providing areas I mean to turn core cloud, are businesses you that in

time So we narrowing time. spent our a lot of over focus

ongoing offering lines, in both as technology organization our technology, service within narrowed service manner focus believe that to we internal service efficient as First, competitive. deep our our narrowed an to could and their their get then areas the of critical these we we are really remain leverage so effectively to ability sustainability that well wide and customers of in we

Operator

question next Your of line Sommer from the Truist. Tobey with Instructions] [Operator comes

Tobey Sommer

you are the I we -- for investments, me. to of behind X a color what Just had you thought still Could achieving those gaining your the had most of new midstream? a couple repositioning ago? And investments us. that F&A, capabilities? managed around compared maybe or with are year put some follow-ups that With maybe were then is teams

David Kelly

is make comments additional and business. consulting Joe on I'll Dave. this question Tobey, answer our can then the F&A the

relatively that's that bill right So significantly. up said, a It's I repositioning rates environment difficult is complete, gone have Tobey, now. why

I that years, enhance opportunities, are essentially, and it's complete. lower-end terms technology that repositioning number continue of that. of say, we does anymore. a of But really in there more the for fair not in a business. no, looking skill back doing mean we're are of opportunities any mean business, F&A that performance doing, of we're largely to think business alone finance is don't terms was not certainly I business, lot to our of it if look accounting, transactional-type to I But that that we set to our with Does look think right? synergistic

action here is in So the what largely we're market no, is now seeing repositioned. that terms of predominantly. But a complete dynamic

Joseph Liberatore

has just And of Tobey, capability, made It's people expertise, expertise. has in been of The well terms this been bringing went -- upgrade our bringing we in have an team that have progress ago from services through I've years as been talent leadership in restructuring. a executed who people time. this business on standpoint in managed about the of X front, what guess that I organizational was for additional technology years. as that over it the industry point managed they've at in that teams, transformational from we're doing solutions additional XX our time

I mean about getting deeper that in focused is areas So we're this those wider and what and owning in.

talent. can a So any brand much have investments look paramount those A because within so how also bringing and individuals you that area. on communicating be can brought these made leveraging this is we're so bringing our lot a we're we on provides yes, business us to opportunity transparency the repeat we into lot we're of out, We've at that organizations pretty leads in those in And our of doing that because And standpoint marketplace. top-tier with organizations services. where there invested our of projects the also all integrated without highly those clients delivery on other performing that that have bringing in individuals helping that's an who fashion, that our people are in we're from really relationships areas lot that's that performance lot reputable. out consulting We've we're capability. us a

challenging our some strategy and quarter wins the those I current we've Just And spend. slowing doors we modernization relationships when earlier, financial mentioned CXsulting in had wins for it's staff team of clients, reasonable around I compressed in had record see X, become side that the services couple also track clients large in service to we've standpoint. the win very standpoint, within not staff really each solutions, leveraging those I on positioning just our or fact, mean well the offerings the our from our here staff of these us. mean particular retail, diversify and/or last nice and augmentation pivoted a our from margin in actually, quarters, it's leveraging margin opening on cases, to really But an here some nice being and our augmentation. in to in it's transportation, us maybe integrated more business, capture really in working challenge, last clients our fronts have major augmentation

Operator

the session. closing turn question-and-answer for This remarks. Joe concludes to call the I'll Liberatore

Joseph Liberatore

Yes.

gratitude our my privilege our again I'd partnering So consultants for you. Kforcer after allowing Kforce. for your express for you look and like Kforce to with in the forward faith and trust to to thank and every and talking third and ongoing us with efforts support to interest We quarter your serve and passion, to XXXX. your in clients you

Operator

Thank today's concludes you This conference call. joining. for

You may now disconnect.

Kforce (KFRC) 29 Jul 242024 Q2 Earnings call transcript