KFRC - Earnings call transcript Q3 2024

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Operator

Well, good day, everyone, and welcome to the Kforce Q3 2024 Earnings Conference Call. At this time, I would like to hand the call over to Mr. Joe Liberatore. Please go ahead, sir.

Joseph Liberatore

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

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

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

full and than efforts. Carolina taking the said, I donating people being personal recovery while their that ensuring effort recent members, hurricane across and Before hardships, their tremendous area Kforce's is to am our and roads areas to the Southeast. Kforce businesses. I impacted of the to areas impacts these These across and families summarize $XXX,XXX comment area, their and in Bay balance broader many ahead. the to Despite was awe by safety, performance, Kforce, in third will display. located, Carolina areas neighboring and broadly team headquarters of am aid impacted the to so resiliency the of Helene North impacts our and like I'd recover have being much that where local had pleased continue Milton are Bay available our our quarter long more Florida, corporate Tampa North rebuild, larger Tampa these on Hurricanes be families, I their in also in the on and devastating to our announce teams' people, our and communities charitable and for And operations. That continuity organizations care the simply

weeks at a We several Seeing efforts. dedicated over Kforce. truly culture Kforce-wide it have we We inspiring. talk are the recovery action, last in about is again, the amazing once also to organizing event

exceeded per the third guidance. our top expectations of performance, and exceeded end share midpoint revenues our As for the of quarter our earnings

quarter Technology no last stable largely third for was performance business our and has exception. the Our been X quarters,

the and environment technology indicate most constructive our hiring has much more that our was operating than current stable clients been trends written about it discussions While and of XXXX. internal uncertainty with the continue is to to and in us demand, throughout

Our where in that footprint there to versus of providing clients higher-end little require sets solutions a more be set skill skill softness. areas might remains lower demand

that clients technology name soft a few. expectations cut is the likely, the in will landing in outlook. is period cautious a spending with XX-basis strong our of to critical to consistent though Clients, are has We demand discretionary in projects of and strengthened caution concerns, economic of clients degree of probability in U.S. more for point projects however, week, in a XXXX. seeing further for Ukraine, in the of have for said, The of increasingly exercise heightened next the September rate election initiated. There be remain is to geopolitical continuation reductions with a backlog their new for as initiate the uncertainty With tensions a remains economic It that potential prolonged throughout technology the rate new and initiating initiating East clarity technology the the continued Middle U.S. there have strategically speaking, remained until new continue as investments byproduct being resources, cautioned investments, clients desire imperative the to the investments. broadly outcome war most much well with

to clear. to our backlog We priority uncertainties a at initiate to high expect once clients the macro this be an pace for accelerated begin

to of necessary quarter trends our adjustments to business. through and XXXX, execute stay we to continue our we make and will close performance As final the indicators

both benefit strategic our in will become greatly and profitability line more top constructive We are invest term. the as to over continuing which long growth priorities, markets improvements believe we

been our of capabilities. nearshore/offshore of evolution the delivery strategic our we've progressing is priorities that One

executive have to trends. in our work, took teams our industry been a members Our at hard finalize team India listening and August clients to our trip go-forward of Several to plans. monitoring

we visit, one this to development this the service and tremendously offerings about have clients. the strategic cities Following technology establish leading our made India. Pune, to we Pune are our to decision enhance further excited in capability center India, is a of leveraging in

we process of Our to office XXXX. in Pune in is space and operational be expect being the in built, January

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

we previously innovative technology resources, As and long term, other for, drives accelerate. Paradox follow continue have pattern, AI improved demand technologies believe efficiency replacing, the rather articulated, over the historic ultimately and will the where that of than greater change to Jevons pace will we that

meet to demand. positioned ideally are We that

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

focused with and of our us forms. in broad meet to model operating nimble allows simple, clients partnering engagement their a needs spectrum also Our to flexible across be

client technology offering, efficient our We cost-effective depth proposition the value the in speaks along we an are of than solutions and that times addressable our staffing experience believe in which continuing market. solutions solutions to relationships, greater is growth many IT provide with market IT to our to

give positioned. has confident remains business the to to model on our about our I organically Operating our will future Dave? future over trends. Officer, operating as and decision remain a Hackman, years, now excited success critical Chief insights Kforce's detail well business expectations. with results, Chief Financial of our into Our consistent, recent refined our many greater and firm Jeff Officer, as financial we grow remain that provide Kelly, and been financial well our confident then additional will Kforce. Dave performance our

David Kelly

basis. Technology October [indiscernible] our business stable appear stable. overall we years a measured largely our and assignment on and above $XX expected flat were July third years. X-plus $XXX.X staffing fourth The X.X% pay on down does basis. ends, that talent Flex our clear the the the throughout bill performance increased or awaiting on start year-over-year were a past million our and the holiday day bill sequentially the business broadly revenues the year-over-year business to of backlog trends remains expectations in of revenues more Encouragingly, over relatively impacts, and X.X% X.X% declined trends of project seasonal in demand even that have the in are aggressively investment. It basis. After to technology from assignments midpoint billing were rates significant third billing billing our average Thank as stable clear a consultants and sequential on clients, period a sequentially X anticipate of begin of up over remained some have business in resources day declining early for experiencing you, on for skilled still our address highly X both overall confidence of last X industry in and quarters, quarters quarter day Technology Technology engagements Technology sequentially, the It quarter. initiatives X.X% speaking, our assignment rates over Joe. stable, to adding consistent built have important last traditional recent slowed Total declined rates quarter, kept has in the

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

demand clients, established quality at as foundation from various our scale for talent of We change and evolve. sourcing a skill sets have

provide to this demand that to to increases. resources expect We continue clients us AI-related look as as

As our which XX skill data technology improved business XX point points demands in Bill spreads Technology evolved business in increased of modestly economic we environment. to continues cloudiness given over our basis an sequentially with of the and the in has set clients. Flex be points decades, the Technology have our margins XX.X% evolved basis the sequentially, year-over-year. encouraging efficiently pay changing

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

relationships and sales our that by solutions integrated engagements project address we and skilled is United higher-value clients' highly challenges. An to cost-effective and the teams capitalizes the efficiently outside have ability to utilizing solution the effectively with recruiters provide cost existing on Our States. to our strong providing increasingly strategy source vehicle teams, consultants world-class companies important talent

on development expected strong to Joe As strategic long-standing strengthens The informed in center the January project offering establishment clients, the India. by engagements U.S.-based primarily development clients -- with from an begin mentioned, further to our clients. bidding relied we've puts is in number Pune, center capability a that a fully imperative partners. supporting a was conversations relationships with establish compete help in decision This more with our has precluded to XXXX. development us position needs made our The which a of center and a combined effectively opportunities delivery and strong of client Kforce India evolving to nearshore network, on offshore with were high-quality development and a that This U.S. will facility we in vendor center, past. when the on of address evolve

market-leading client Our comprised and is diverse companies. portfolio of large is mostly

some for vertical, previous Our long-term improvement our to critical financial our the industry above-market their largest sustainable to be ability addressing From headwinds. focus consecutive experienced an quarter on drive second performance. needs sequentially after continues in perspective, services,

We This some taken We've the but notable landscape. industry, in uneven. others professional is largest growth services even conservative Purchasing have is corporate pattern industries. significant experienced not within growth also seen of approach. our and reflected industry manufacturing the our specific, while clients, both rather more same across a activity, in

we conclusion patterns the on levels. QX, and may close be sequentially quarter levels a billing with be consultants to to slightly third saw up to persist, assignment year-over-year we consistent decline day at third current basis, the should stable remain should to forward the Looking technology on Revenue relatively of quarter. expect

sequentially we challenging efforts a Our our the environment. and are no our X% of more currently FA declined reflects revenues, X.X% to business longer decline year-over-year of billing year-over-year day declined supporting macro a on The impact XX.X% basis. business, repositioning and due

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

XX expect be FA FA in to a remain fairly expect decreased sequentially basis these low-single to in stable down the margins spreads points digits. Flex and in our at business bill sequentially, day QX. revenues we on pay basis We QX levels billing

manage levels productivity We based expectations. associate upon continue to

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

ample have selectively XX% Even near-term are we which year-over-year with we've resources, it in any capacity our delivery without reductions, demand, absorb roughly adding example, rationalizing teams, to basis. down improve, while should a invested we For resources. these our sales on believe

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

in trust the without While last expected, years. professional the in unwavering the Officer. and performance over personal macro tremendously over excited the have several Joe's our I Kforce's The our place continue to and environment have we longer and now XX hurricanes. I'll business, and we has resilience the position clients, dedication, uncertainty above-market echo have as consultants to than Financial sentiments call persisted for and our Technology that that Jeff incredible Chief ability as through the balancing displayed an Hackman, over appreciation organization turn in candidates remain about happen delivering our strategic by success most doesn't creativity devastating weeks, of commitments us. I teams

Jeffrey Hackman

Dave. you, Thank

to environment Third of XX XX margins margins the improved spreads than points our claims sequentially Technology to health XX and and experience, of our year-over-year progress of increasing of share guidance. more which of QX and basis per Earnings business exceeded exceeded bill revenues XX midpoint Direct our points gross basis our insurance offset Hire above a points combination and basis slightly in XX.X% business. were sequentially year-over-year due to pricing favorable quarter $X.XX basis $XXX.X the the quarter mix million third high points Overall end expectations. constructive solutions expectations, growing the increased lower more more due in pay year-over-year. Flex our in a

QX, which consultants, remain average to for time above to to margins revenue forward expected due sequentially are the our expectations. a slightly paid rates As Flex typical expenses as seasonal our percentage SG&A of look decline expect XX.X%, to impact of was though stable. Overall off we bill guidance we was

managing are continuing delivery while targeted to our investments sales We make in capabilities, down naturally our population.

integration of well are establishment significantly Workday, continue longer-term the expected invest more to financial for when and our also companies of initiatives, of and development We objectives which further technology advance center the to our prepare initiatives. their solutions including us aggressively our all our implementation contribute to enterprise in India of business,

was of toward margins. high Our we operating Flex X.X% improved as end the from margin of our benefited expectations

effective credits tax the transform research in XX.X%, $X.XX and Our roughly and our These Further related to of were beyond. Operating return million, point, was on due tax rate earnings $XX flows to perhaps lower the million. benefited roughly was XX%. of was share implement approximately the by recognition third than we to $X and our expected and office which equity the credits from tax XXXX credits expect that cash per quarter. benefit to in to initiative development back in XXXX these and quarter Workday tax we XXXX

of believe our the U.S., relative nearshore/offshore focus capabilities. technology in our augmented performance result staffing with continue our and we a organically-driven strong We execute is solutions and well, in our business to

continue to third be minimal strongly balance carry million shareholders over This and pristine continues to consistent and returned quarter. activity dividends return to a debt accretive repurchase We with in our the repurchases $XX earnings. sheet share to with through capital

in yield and Our is dividend amongst our X.X% industry. the highest current is

We since generated, cash more our our than have and capital significantly shareholders the while business million $XXX levels. growing in XX% approximately which represented has returned to profitability improving of XXXX,

in committed of predictable returning flows strong Our aggressively us cash business to regardless economic to while climate. allow remain investing the capital our

very high. any prospective Our threshold for remains acquisition

provides have us Our strong our opportunity the under facility credit the and flexibility get in we repurchasing with to balance our aggressive more stock. sheet

XXXX typical quarter days repurchase third has and thus $X corporate which fewer repurchase nearly have for the the XXXX. billing our of have begun is far, plan. The quarter than than more stock XX in activity of fourth X We our already the quarter, X repurchased days, quarter million XXbX-X fourth fourth and under

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

guidance impact includes a hurricane from related recovery the $X.XX to Our negative charitable $XXX,XXX efforts. contribution

in the of of unusual of of margins the long-term sincere for our to I'd that necessary objective greater enable based items remain our about us the than to assumption thank a the you long over management slightly our drive the may of Our achieve the like does for guidance upon term, help while prospects to revenues. On any to and profitability and We teams for growth occur. We our questions. impact to call results consider other operating environment longer-term position continuation or investments attaining over their like make is not billion deliver continuing excited behalf nonrecurring would entire at $X double-digit now potential strategic above-market a and continuing team, turn to efforts. to extend stable

Operator

to Mark [Operator Baird. go We'll Instructions] Marcon,

Mark Marcon

came First a Wondering to on -- year-over-year. the discuss particularly hopefully, the from both to everybody as can insurance bill the spread? on little want the of team the of gross wishes of And in much disruptive was on well much it costs through just benefit the all, that improvement extend to pay of sequentially recovering can Flex, gross margins, see How was improved relative to that nice due margins, sequentially my as bit in terms I you to the how health improvement best Certainly appreciate how the hurricanes. be. entire okay. it

Jeffrey Hackman

Yes. is And this Jeff. Mark,

the hurricane tremendous efforts. our First, recovery thank for that your was you comments about for folks. impact a doubt, No

I XX sequentially were your I basis up points year-on-year. that So, basis Flex points margins, on and overall Technology mentioned question think XX margins

certainly overall managed sequentially. sequentially saw about or points as that hasn't a a We spread. predominant basis, on year-over-year staffing well. points concentration not our solution as a on the either is of think technology contributing our in are our factor a assignment I Mark, basis a us. to bit I'd a focus but a say of had year-over-year spread project That pay margins, for bill the a pay team business changed bill XX high-end basis, insurance you helpful, engagement, certainly -- think Certainly, when traditional Mark, saw an think, I driver assignment on And uptick XX through placed that sequentially. little health and or it probably was bit what we there Flex resources relates it's to

about think Flex grow. overall healthier you continued engagements margins, has Technology as as our benefit we So, that that from of business solutions to to mix continued

points I is our business in XXX higher. that basis or think on prior margin we've solutions-oriented the talked calls more

the script, And that certainly, sequentially give traction that, certainly last spread I about the rate average from that us I'd the it you think has we've was bill a when Dave's that much bill the business, side. on sequentially, So and in of that comment think benefited bill made you -- perspective. And growing mix year-on-year, pay mentioned flat. in on I were improvement he rates was pay sequentially spread both think

think a I for internally, us. So particular focus for us, it's

people, We training lot around a conducive bit and that and in demand, more might and with little and supply our you a education between imbalance a of with little as expect, environment bit as of well. have

hopefully, for So that covers Mark, you. it

Mark Marcon

of decline you're was it some seeing out the very in And on did revenue helpful. terms see to services That's stability. IT year-over-year and certainly encouraging really flatten that just

start IT to environment you Flex. couple a set in your with the efforts? got of That's One a of trends? be been their separately, stable clients' see seeing improvement to can up in wondering thinking need offshore think with lift you if regards part X you clearly up, regards for like do discuss what for the terms completely facility greater you then, one profitability of decision to I'm of some in would to of you're a thinking terms are demand last to How quarters. how extent of I've your So question it. And them would part just -- some an do about We've set much to engaging currently the revenue as basically in about pent-up we Pune.

impact would fraction and we think the should your are How percentage model about in Specifically, out for What we as about clients the we be? what then think it? revenue? that of layering cost XXXX? or should asking the How

Joseph Liberatore

Clients front, say it is I you seeing spend. to confidence. still start this throughout is people have thank to confidence. hurricanes I their this dealt of the catalyst looking going would lot Joe. comments services for start the on we're back And need say, need client improvement a take, Mark, our in to relative at and/or we what to would is again, to for the really going believe discretionary back-to-back Yes, that the I with. to when They pull things what the revenues to through for people be, is more releasing catalyst comes

budgets As increase technology the I'm get we in over reporting XXXX projected you sure, XXXX. see. are that similar to

storage, AI direct. we the have the the with we more Now, roles going with of offshore. precluded one from really longstanding with, really nearshore allow are have that of both whether certain to foundational deal continues are I leveraged we've where see say we thing where driven India entities, aspects they blended have with offshore will working in these work is, we've a our and And would combination that is we where nearshore to of or that that. I to everybody relationships some leverage U.S.-based any well with we by of that when as center have prepare do which think talking clients associated third-party be been as also be the partners as not for resources, and some teams, servicing great cloud about and development you're clients

get this set then to moved team within and and footprint proud be been our I we've after the our additional how couldn't action quickly will by working so, our And through quickly after how and this identifying. clients. more to ability of be and strategically service we've action and things up

David Kelly

of Yes. Maybe to add just things. a couple

relates it as right, to market. is Joe the think I

an I increase and profitability, think more a about maybe ability sustained about in less demand to basis. Yes. on expect it's the improved foresight

think our some it the in to the in Joe find is opportunities, strong them client facility continue where, after great managed deal think to long there's do for saying, robust an always especially we these us, a by put from few not enhanced seeing right? times for we partners, together them it environment to as teams. would we've need this and a to frankly, be to clients, price is things, especially vendor while. so as with, we're I I As as with looking ability base efficiently talking period I increased the India, relates do for a in in driver that it as relates But leverage. of And been say. are Obviously, Certainly, times that time. they Joe that blended expect to said, facility, for is will been, solutions We've to about, this maybe supporting through large particular,

we The quickly. services, little speaking, about moved, from to time. to those relatively support of clients managed this. be to really thinking We're perspective. bit pretty think a going capacity But this going business is be initially, thoughtful managed I for about of at it been focus least we've a

looking our will probably we relatively at slowly. to focusing think when on ramp the supporting We're clients. efforts revenue, contribution So the about it

I requirements, center build looking a and States. domestic are business revenue outside think it's we in important the to their to not stream point United a out,

the So skill are that where our thoughtful the suited to clients we're about business to to best high us demand going our is let opportunities be be going lead We're to focused. going this. in areas

say, yes, look if it's and to that. of ramp grow. being opportunities to able the often kind you more So more as of gradually But XXXX beyond, and over time, matter arrive certainly it's a to of going

Mark Marcon

can How costs. resets a that QX, -- because that, the just How seasonal specific be a about appreciate we're in about margins for the you models? statutory our in of that conservative this more David. to obviously, facility? just basis, we typically much going would just just up talk all should terms regards than Can I bit normal little all on we to QX so normal ramping down with think of go have

David Kelly

impact. not have Yes. meaningful going It's a to

think as We're impact. not of forward QX, look until XXXX, and will This see. not it typically India any we it amount. not I what type -- to first revenue start be a will have you facility an very is going we're to would small generating

it that So of year see. payroll is typically more typical taxes a we would reset

Jeffrey Hackman

Yes. And I true standpoint. think, Flex certainly it's a from Mark, margin

I intent Dave think of Pune our development Joe covered the center. strategic and

I costs think the in us other estate U.S. January investments here XXXX teams in of thing, not the clients given which prepared are allows making others into there, in be that that to not our this, the are to we amount to significant. planning any people put assigned mitigate of are certainly support and have our to projects also we're Clearly, what that costs relative real they U.S.-based

rates think So don't longer Flex Flex over minimize efforts stability a when I Mark, has And development average term, I from and think think, our around margins, margin quite perspective, you we've good the about center impacting we've that. that. I look to this bill the that been planning see seeing been I India that, at talked

David Kelly

very flexible, so an commitments our quickly. the needs other clients' expand on model add slowly of I'd India, as or as us we're real very I example, The small. The said to arise, estate starting our whether that thing Yes. again, beauty allows be only and

be model there. advantage capabilities our in in of our we not will taking So limited

Mark Marcon

disruption wishes everybody hear. And the to best comments. from all again, all quickly to as for as great Appreciate recover possible. the That's

David Kelly

Appreciate Appreciate Mark. it. Thank you, it.

Operator

Blair. The next from question Trevor Romeo, William is

Trevor Romeo

the best it. I Mark's also to doing hurricanes. is everybody okay the want the making on echo comments of company at and Hope

on Just out curious the versus about be build maybe like follow-up to region an the think could And America? other you over to time? one America I'd wanted Latin future, know regions in be do another as opportunity how you Latin center. India this just did India quick maybe like

David Kelly

there Yes. are the So needs the is is that has have ability mentioned, some client specific Dave each additive, right? the this Joe word that understand use with separate I think meet I Kelly. to see client would companies. needs requirements are specifically dynamic right? we clearly, employees requirements, we Trevor, and Yes,

also in any amount it's every amount exist resources United think everybody probably the that is and they the other I even create India country, States. of obvious that year far that technology to the surpasses

So be about is as place enterprise. we it a talk of the part that to relates our that logical facility with I to partners. a We you, vendor think is Kforce Trevor. first agree

have there think meet India their parties certainly look needs built are requirements, as through clients there have zone time capability of other third that because the I we and to nearshore in and we places.

looking we're So start. at the to right think place that. is this We

before heard thinking the anything taken and haven't need off we've strategy. what our -- we certainly, a of We develop we the table, clients what but we about and spend fair amount time to listening

so. do continue we So will to

the the where where think biggest evolve is we at things But advantage strategy. can first, going. we get where first we're place and starting will the We we went

of as to the So, that can keep this evolve more and Certainly, we'll you apprised. to come. a part continue hopeful we're meaningful business,

Trevor Romeo

demand. helpful. another AI on And I Okay. had question That's then,

really I story long-term Joe, framed liked around the Jevons think, you Paradox. the I how

there's prep AI though, new this kind months? of past of directly by have way I few driven, cetera, in just I near like et conversations think, frame any in term, demand wondering how indirectly evolved those either I pipeline you work foundational data and cloud, could sort or was much is the how in analytics, if guess, your being

Joseph Liberatore

data, majority I'd clients Most type our with say on with continue in great security. actual organizations the work associated of aspects and preparation the cloud that are question. And our are focus to teams a It's foundational Yes. remain -- governance, on stage. those

the solutions So and within when cloud these are managed data way, teams at specifically. offering. are all you our practices, They by practices look

revenue look then out industries, organizations really of at use service get in a use standpoint specific cases it microcosm and foundational internally. team So to now And cases, we're those a are that to participate as the in very across us we amount fronts. place positions the us opened don't break meaningful. of considerable start that seeing as view to marketplace. but it's terms doors kind a we've to that And relationship for we're good of like that piloting also position puts a all in been internally. quite and I -- things us. broad-based doing And that's seeing by this very business. We're from on And We really pieces put we're at a clients. looking work of have broader lot a the offering, bit all believe always prepared pull-through to talented in acquisitive Kforce we

can As side calls, X our platforms I've well Microsoft around doing our business, the as it We're recruitment of other talking We've across to greatest clients. AI say, so side what of product position at more implementing organizations the Microsoft, a for for that with their see looking to we're clients. opportunities client technology a internally, seeing our business externally where side also -- on technology the business the the and last base initiatives technologies, AI things like we're those versus with the base looking in are this be kind position We're familiar that if working we within actually are nontechnology, become to look working we're on these I into at number of again, things seeing of having -- with of that sales and then, portfolio line. their at the we just helps and at us starting also X opportunities. I the our is we're and on products is mentioned might various and strategy XXX standpoint things. a more in they're also as front-end aspects platforms customer And foundation outside team. promulgate done on Workday would of doing other AI and from looking sales and of lot being how and we're looking previous as the when unique

industry nice a what of one customer get of to about through translate So having to ahead learn base experience very into we diverse one is industries. other that's starts the things in

on lot of a seeing those experience we're to and So gain opportunity exposure. fronts

Operator

Securities. from Truist Tobey question take We'll the Sommer, next

Jasper Bibb

Tobey. is This on for Jasper Bibb

years, F&A Florida, expectation guidance? when is in project picked And project embedded could of quarter? any in clarify, in response business. Is hurricanes your some you the there's see couple just fourth any past the there in think work you been up I some associated there the work to work in

David Kelly

the this of bill we've and -- they that skill longer evolution meaningful we've would the right? right? you in meaningful finance yes, frankly, done accounting Jasper, are work decision -- up, some wasn't focusing and our years where made we focus, evolution rate. as that obviously, we this was relates appreciate we've talked our -- partners probably model, in work business Yes, the where our were great had, and to technology, $XX our that continue do capabilities, are X finance past. the and Those right focused we Obviously, Obviously, of an the about it informed ago no we bringing are But we've all sets now. and that the I our strategy accounting today area to we

we're previously And so, that is on build. we that have capability had that not to continuing something focused might

So, any is are, no, any important supporting those support of not Kforce as we're -- efforts that. supporting as not

Jasper Bibb

then, wanted development follow And just to the India center. on up

you unlocked your from offerings? delivery capability in Is you in-house I incremental any certain service to adding maybe past. the how opportunities locked way to think frame addressable much market there out by mentioned having not that offshore gets

David Kelly

some when think workforce solutions the especially that's look right, I clearly, we Jasper, the would managed in of Well, I portion offshore. projects, say, typically those space, include

in incremental amount a of So cost-effective for way. significant more us, I think it a unlocks opportunity

So what quantify clearly, to it means. it's exactly hard

and be every go X again say we and it's something difficult to significant of our longstanding part, lot the are clients. of to ability learn relationships as there's for be going and week of We that years I or -- do an is by, a a to opportunity excited to stream. think, lot revenue expect going to We've I I quantify, think it's certainly frankly say, it yes, beneficial. is meaningful that the be to with needed a us probably fair the we that mean, got to hear

Operator

next to Research. Kartik go Northcoast We'll Mehta,

Kartik Mehta

when trend to to you the maybe things bit just October quarter, in I'm that's October. a month. about bit a as as little if each improved better better, follow look you seeing up, little a maybe I throughout trend. wondering talked Or you that Curious wanted bit and started being started little a

David Kelly

Yes.

Kartik. is this Dave, So,

this. to as you basis, all, not as try happens. week-to-week where there transparent and periods bit of be good. things first provide we as that maybe want about I be what a are are back little So on cautious can tough reflect to we We But a as clearly,

a -- -- that an don't I'll good about the let point. in a data here think how think minute Jeff recently we We But think have I benefit start. we as it's and quarter. of about important I fourth comment the we seen about think

a lot We've than to a We about better, prior stable. because stability the we've not this and right? that seen, worse on calls be want to trend slightly extrapolated be in sometimes sometimes talked that call we have cautious, slightly

in benefits we not see of in But any activity cautious by couple late October. we did terms of So want quarter to we're that the to in overstate races stretch. think some the positive of be the I off weeks first to again,

Jeffrey Hackman

holidays quarter, because should that falling some us way the at holidays. got obviously, Wednesday, consultant the that modest Kartik, the also But some experience of add our days we've fourth And first both use because are point, we the thing And fewer X and words into in we of to of a like and and as to that, we're billing modest of end on the October, we couple with tell transcripts, look the see the in Yes. I'd Dave's of losing anticipate did improvement. hours. disruption September you only then, level a weeks very

think, Kartik, running, to at So flat I say, expectation, stability Technology when into as of business But now midpoint I'd let's our we've QX. we're talking thing the for the in technology dialing been our other that it, about And look QX is you business our it year. well. a call

disruption, -- part improved was that the even think of holiday the some on. Dave with commented So more and I stability of slightly improved that trends

Kartik Mehta

helpful. That's

if merit Just done, circumstances up give one But other XXXX, bit flat, impact the are because to stay to cost-cutting your keep revenues. little flat? you margins could a look about there at on measures in elections. going know based you are Things hard all stay the increases revenues And Or predict I Jeff, margins -- the need can so expenses were revenues uncertain that to question. you you've like in and last as like same? SG&A XXXX if it's

Jeffrey Hackman

a think question. Yes. I it's Kartik, good

of in we currently make level I business the capacity the commentary, between improvement et But that of over would sales in The investing progressed. of delivery will continuing within of we will year of the that we year some we've 'XX. couple those was First, XXXX. level that some in near priorities to say, your that. see adjustments tell enterprise 'XX I been full last to comfortable, this with teams and adjustments into you, continue point, have any might of as will to Certainly, benefit there. see our the we've we term cetera, thank to that. been you and on Kelly's get the those years, in take in the for the invest would has renewal And and annualized course, vendor going merit also that increases, increases, We're Dave Kartik,

any costs? I extent answer flat, think, think yes. the taken line the we to have measures to top on I So Kartik, is that pressures largely mitigate is

Operator

is Josh question from next UBS. The Chan,

Joshua Chan

as guys a to you Best the kind a respect unlock time to backlog guess there about is unlocks way spend? projects will Or to the with spend? of wishes is, better with that of that to be the mentioned, I critical I the that guess, hurricanes they how think need are? automatically there And of well. implication will respect the economy

David Kelly

this Yes. Yes, Josh, Dave. is

talk do mission-critical with right? they leaders, about investments, we There's business, AI. It's we the market leadership. when that they Joe AI preparation we talk mentioned, meaningful projects, all market like think as things sure So that for those least make are things at time, as also right, or about maintain really to their in

advantage mission-critical. they those why is things That's to about that we continue their need talk So where they maintain to as competitive those things invest.

how disadvantage long-term benefits about, talked our and as it we're -- we've as our that put about we that's us think right, we're from that's that exactly not [ at right? we cannot thinking The move a will are those do ] getting I because strategic investments investments, forward.

projects. they history that, would the they return spend of advantage reached seeing we unlock terms we've I -- think see are When lot conclusion of of are our take of that a it would make those clearly unlocking going think there can obviously, and about touched that in basis, reflective continuous future we to talked I ability deep will investments their are in start them do, having right, to, to it things -- clearly the us like close to they'd terms think want not opportunities, but on on investments. in their their Joe sell have we before, tell that getting yet. think, got a because to of is environment foresight and As prospects, I big their also get when -- they having expansion a be things clients solutions, seeing from to They going that they some relationships, green-lighted, are those improve,

improving think I confidence foresight more a should they it's bit of So and see environment. continuing that a

Joseph Liberatore

I loan before do a they crisis, that what Yes. spot at to come everything start if else. kind look cycles I've of calls, would number think once I post And in I've follow historically, is wrapper downturns the solutions you that staff when been of full-time utilization always to a of and which with, and and in, and/or in which they we XXXX, number are and stability very a going oriented optimism this we comes believe mentioned important, what and does similar comes because such teams is through prior positioned that augmentation a pattern, about back savings of is good rebuild

standpoint. in a And with we an and that great so, have we're spot have relationships with that when capabilities additional comes, from offshore now the the we also

of at to done So our couldn't prepare. spot but forging you economic cycles, terms their I control I maintaining the the performance, proud Unfortunately, our don't relationships, performance in look people everything we've firm's be think pandemic, you recent we that execution, coming we more in. of And of at out like when look the more we're relationships.

our One that to requires I into that have different like legacy is might this tough but clients tough and of times work about get the we things with. that organizations the we during new relationships diversify times, maintain us it with patterns like those really spending

for the That's those worked industries with relationships X pandemic when We the pandemic. well so, basically, such clients. things that we coming of get hardest during strong And those We a clients. have got diversified went demand. why all some the double with in a having We because the ongoing we footprint we of get hit things so X. to with down those down new relationships. Demand as And other clients. out now that turn, maintained into improve, basically, have then, performed we

comes our for demand have phenomenal back those now job does turn. a in legacy have done people We relationships to And that position us when this their continuing online.

Joshua Chan

assumption It in wondering December sounds maybe in? you how December. like to the appreciate holiday back respect could happen of in a of Is what the with the comment it one I much guess, shutdown question you pretty half then, conservative color. uncertainty just guidance I'm here? really kind I And a are for guys But a about guidance baking answered with great bit of that. That's that little Jeff.

Jeffrey Hackman

and that Yes. use with fall, Josh, history we've word leverage conservative. know got would that. of dealing I the I different dates holidays where long the Certainly, don't a we

saw mild we be for We well. commented the the of as leverage themselves might and we well. level going close out clients to quarter they conversations as quarter relative on when down that improvement some start on the course, furloughs with to fourth Of through and shut

as conservative. characterize it wouldn't So I

approach with nice up scientific coming I taken to a guidance. we've our think

stable year, Josh, flat to QX sequentially were You QX, that throughout negative. at QX, against a got QX how the slightly And very QX we to were look we've midpoint, at, has a on. technology the Technology business business environment our sequentially positive. to performed commented QX we we've

balanced. I conservative. wouldn't say I'd say So

Operator

We'll go [Operator next Instructions] Riddick, Marc to Sidoti.

Marc Riddick

please appreciation are best certainly, and the and just And to through hear really okay. it's went there. I to those So the folks glad to devastation [ my wanted add who ] that such all

returning sort best you're to was everybody the of some wondering teams and and cash there. of potential sort the of workers shift some see and made I the and your there shareholders quarter. the here there all I fourth on maybe that their already if families. at and to capital -- use you some some the maybe of could you maybe looking of of the in wanted to as So, around commentary of as expand opportunities prioritization far you actions that

Jeffrey Hackman

Yes.

capital that that $XXX as had progress returning in since I than capital think, record, approach That as long on took XX% update to shareholders. greater into XXXX, dividends fourth wouldn't our in we've Marc, equated my we've change forward, capital remarks about That's our that I and returned, -- We've track move course, quarterly to prepared we deployment the certainly fourth the far. investors mentioned given opportunity, and we analysts of I million share of quarter, a generated. and thus the to in quarter move in in just our the buybacks. progress the between expect we to continue XXXX. cash a

the the speaking, from market. our the in across point that you've moving relative seen, to the firm for see what to us. avenue our space, organic our business results, model our from relative see guess, model, And and change I We and on no best Technology you our focused as can So, that Marc, historically performance forward.

Marc Riddick

might view share in sort as to or industry something for and sort of prepared commentary around remarks, an there if And because guys you Excellent. maybe as gain of where that it versus wondering to seems of you made, the to on. general though peers was access then, I area you be stood you the and like. have pipeline your the talent a

Joseph Liberatore

continue end again. have of Jeff all day great upon we Yes. it's the go the and up about competitive some At at I touched out. We we look when with landscape, would the we go the And pieces end there's overall for execution in day, life have people on but a it model. occasional day we focus. that say, like to competitors so to this. of We what But We execute. model, control I through really think the to for our empowered do and to like couple when our and and it controlling -- into well of customer base. with at can the And positions going people side. that a course believe equation. stay that, our these on we're power I that they that simplicity out great then, and so focus to trust very continue not focused And building providing the the our you work times, them technology we if other true have the it's hard respect only us balance, the positions day, us flexibility, the office can with many world-class that

Marc Riddick

seeing financial particular that there, it was that timing catalyst sort for last of just me. of that with remarks, if was In or the it if was sort there services within areas or any broad-based then, was there little whether the sector? a -- was of activity you're And that -- of services. saw, entire prepared sparked some the was around there demand you if financial Excellent. the any I better particular wondering sort was one commentary

David Kelly

would this barometer clients this example, I actually saying financial I've say, we are you of number are in -- is and against spend. that services, services that experience not caution I think to are weren't a We That their entire, Marc, there would our Dave. you others a there right? decreased about number clients say said industry. with before, spend. is for who in tell services financial I obviously of increased Yes, financial is Yes, a the can I

we've talking similar about So to again, I think much today. what been thematically

It services in spend that I Obviously, I they driver don't financial seen. to for conducive. may an the say what felt quarter-to-quarter compelled rate the grow. increasingly about of that is a going we we've along that projects environment we're that that us, want suggest to interest did. think area they spend mission-critical services the is continue be lines say I'm not that is these But financial -- wouldn't seeing to more talked to to before, I going is to we're

really do nothing every across effectively And So, business more would say that than with. I that's that. industry we true

Operator

at additional further time, no back there And for or closing to speakers this I'll our are hand any questions. things remarks.

Joseph Liberatore

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

Operator

your W today's conclude does that to conference. for like everyone, you all participation. And would thank

disconnect. You may now

Kforce (KFRC) 28 Oct 242024 Q3 Earnings call transcript