Resources Connection Inc (RGP) 2023 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Resources Connection, Inc. conference call.

女士們，先生們，下午好，歡迎來到 Resources Connection, Inc. 電話會議。

(Operator Instructions)

（操作員說明）

Joining from management are Kate Duchene, Chief Executive Officer; Tim Brackney, President and Chief Operating Officer; and Jennifer Ryu, Chief Financial Officer. As a reminder, today's conference call is being recorded.

加入管理層的是首席執行官 Kate Duchene；總裁兼首席運營官 Tim Brackney；和首席財務官 Jennifer Ryu。提醒一下，今天的電話會議正在錄製中。

At this time, I would like to remind everyone that management will be commenting on results for the third quarter ending February 25, 2023. They will also refer to certain non-GAAP financial measures. An explanation and reconciliation of these measures to the most comparable GAAP financial measures are included in the press release issued today. Today's press release can be viewed in the Investor Relations section of RGP's website and also filed today with the SEC.

此時，我想提醒大家，管理層將對截至 2023 年 2 月 25 日的第三季度業績發表評論。他們還將參考某些非 GAAP 財務指標。今天發布的新聞稿中包含對這些措施與最具可比性的 GAAP 財務措施的解釋和調節。今天的新聞稿可在 RGP 網站的投資者關係部分查看，並已於今天提交給美國證券交易委員會。

Also during this call, management may make forward-looking statements regarding plans, initiatives and strategies and anticipated financial performance of the company. Such statements are predictions and actual events or results may differ materially. Please see the Risk Factors section in RGP's report on Form 10-K for the year ended May 28, 2022, for a discussion of risks, uncertainties and other factors that may cause the company's business results or operations and financial conditions to differ materially from what is expressed or implied by forward-looking statements made during this call.

同樣在此次電話會議期間，管理層可能會就公司的計劃、舉措和戰略以及預期的財務業績做出前瞻性陳述。此類陳述是預測，實際事件或結果可能存在重大差異。請參閱 RGP 截至 2022 年 5 月 28 日止年度 10-K 表格報告中的風險因素部分，討論可能導致公司的業務結果或運營和財務狀況與實際情況存在重大差異的風險、不確定性和其他因素由本次電話會議期間所做的前瞻性陳述明示或暗示。

I will now turn the call over to RGP's CEO, Kate Duchene.

我現在將把電話轉給 RGP 的首席執行官 Kate Duchene。

Thank you, operator. Good afternoon, everyone. Thanks for being with us. We're pleased to report solid financial performance in Q3 despite the macro environment. We exceeded the high end of our guidance on topline revenue and gross margin was towards the high end of our guidance range and at more than a 10-year high for the third quarter. Our SG&A cost containment efforts surpassed guidance expectations as well as we remain focused on delivering value for our shareholders.

謝謝你，運營商。大家下午好。感謝您與我們在一起。儘管宏觀環境不佳，我們很高興地報告第三季度穩健的財務業績。我們超過了我們關於收入的指導的高端，毛利率接近我們指導範圍的高端，並且在第三季度達到了 10 多年來的最高水平。我們的 SG&A 成本控制工作超出了指導預期，而且我們仍然專注於為股東創造價值。

Taking a closer look, Q3 revenue was almost $187 million with our digital consulting business Veracity, delivering year-over-year and sequential growth. Gross margin improved 80 basis points over prior year to 38.3% as we continue to roll out our value-based pricing initiative. This improvement represents our strongest third quarter performance since 2010. Given that the talent crisis, especially in the professional arena remains acute, we see this pricing initiative as a continuing opportunity to improve both the topline and gross margin.

仔細觀察，我們的數字諮詢業務 Veracity 在第三季度的收入接近 1.87 億美元，實現了同比和環比增長。隨著我們繼續推出基於價值的定價計劃，毛利率比上一年提高了 80 個基點，達到 38.3%。這一改善代表了我們自 2010 年以來最強勁的第三季度業績。鑑於人才危機，尤其是在專業領域，人才危機依然嚴重，我們認為這一定價舉措是提高收入和毛利率的持續機會。

With respect to run rate SG&A, we spent less than our guidance anticipated as we remain disciplined on cost control. Adjusted EBITDA margin was nearly 9% this quarter, which is strong performance in the typical seasonally impacted third quarter. As we enter Q4, our revenue pipeline remains sizable. This leading indicator means that we have earned a seat at the table as a value partner for mission-critical work. We are keenly focused on execution and confident in our relevance and value to the market. We will be all the more ready to execute when the macro environment strengthens and buyers regain a sense of economic stability.

關於運行率 SG&A，由於我們在成本控制方面保持紀律，我們的支出低於預期。本季度調整後的 EBITDA 利潤率接近 9%，這在典型的受季節性影響的第三季度表現強勁。當我們進入第四季度時，我們的收入渠道仍然相當可觀。這一領先指標意味著我們作為關鍵任務工作的價值合作夥伴贏得了一席之地。我們非常專注於執行，並對我們對市場的相關性和價值充滿信心。當宏觀環境走強，買家重新獲得經濟穩定的感覺時，我們將更加準備好執行。

As we shared on our last call, we are not experiencing project cancellations but rather project delays. And while the start of net new projects softened somewhat in the quarter, clients are extending current engagements at a record pace. This indicates our consultants are providing exceptional value that clients do not want to lose even when faced with restructuring and layoffs in traditional talent pools within their organizations.

正如我們在上次電話會議上分享的那樣，我們沒有遇到項目取消，而是項目延遲。儘管本季度淨新項目的開工有所放緩，但客戶正在以創紀錄的速度擴大當前的合作。這表明我們的顧問正在提供卓越的價值，即使在其組織內的傳統人才庫面臨重組和裁員時，客戶也不希望失去這些價值。

Strategically, we're confident in the moves we are making to support an economy and transition. In short, we're focused on the following 3 areas: strengthening our core white glove on-demand talent platform, expanding the capability and reach of our digital consulting business and building more tech-enabled revenue delivery with HUGO and broader technology transformation.

從戰略上講，我們對我們為支持經濟和轉型而採取的舉措充滿信心。簡而言之，我們專注於以下三個領域：加強我們的核心白手套按需人才平台，擴大我們數字諮詢業務的能力和範圍，以及通過 HUGO 和更廣泛的技術轉型建立更多技術支持的收入交付。

I'll provide further color on each and why they represent gross levers for our business. First, we continue to build the premier global on-demand talent platform for professionals to engage in operational and transformational work on a project basis. We give professional talent access to on-trend interesting work with top global brands and Fortune 500 clients as they engage to co-deliver strategic imperatives.

我將為每一個提供更多顏色，以及為什麼它們代表我們業務的總槓桿。首先，我們繼續打造全球首屈一指的按需人才平台，讓專業人士以項目為基礎從事運營和轉型工作。我們讓專業人才有機會與全球頂級品牌和財富 500 強客戶合作，共同完成戰略任務。

Clients are increasingly evolving their workforce strategies to become more agile, project-focused and skill-set oriented. They want a trusted partner to deliver with them as they take back responsibility from traditional professional services firm for strategic execution. As one of our key clients that a global health care company recently expressed, they want to engage with a trusted firm that is adjacent to the Big 4 who helps them shape the scope and skill sets needed in project execution that allows them to remain in control.

客戶越來越多地發展他們的勞動力戰略，以變得更加敏捷、以項目為中心和以技能為導向。當他們從傳統專業服務公司手中收回戰略執行責任時，他們希望有一個值得信賴的合作夥伴與他們一起交付。作為我們的主要客戶之一，一家全球醫療保健公司最近表示，他們希望與與四大巨頭相鄰的值得信賴的公司合作，幫助他們塑造項目執行所需的範圍和技能組合，使他們能夠保持控制.

This type of client knows that in an increasingly disruptive world, they do not need to hand the reins for execution to an outside firm. They also don't want or need to staff up in a traditional sense to own all the skill sets they need to compete and evolve. As discussed during our last earnings call, our recent in-depth research established that companies are increasing by double digits their engagement with interim on-demand and agile professional talent to deliver better outcomes and greater efficiency. As its executive forum event in March, staffing industry analysts also shared 2 important data points regarding growth in the contingent workforce space. In 2021, spend grew 28% and over the next 10 years, workforce composition will increase to nearly 30% agile versus 21% today.

這類客戶知道，在一個日益混亂的世界中，他們不需要將執行權交給外部公司。他們也不希望或不需要傳統意義上的人員配備來擁有他們競爭和發展所需的所有技能。正如我們在上次財報電話會議上討論的那樣，我們最近的深入研究表明，公司正在以兩位數的速度增加對臨時按需和敏捷專業人才的參與，以提供更好的結果和更高的效率。作為 3 月份的高管論壇活動，人力資源行業分析師還分享了關於臨時勞動力空間增長的 2 個重要數據點。到 2021 年，支出增長了 28%，在接下來的 10 年裡，靈活的勞動力構成將增加到近 30%，而今天為 21%。

Talent is also looking for more modern ways to pursue career development and work. Gone are the days as a career employee. The global pandemic accelerated the mindset shift away from a single-lens employee for life approach. Today, what is emerging is the rise of the portfolio-based professional who's committed to betting on herself and broadening her experience.

人才也在尋找更現代的方式來追求職業發展和工作。作為職業僱員的日子已經一去不復返了。全球大流行病加速了思維方式的轉變，從單眼員工的生活方式轉變。今天，正在興起的是基於投資組合的專業人士的崛起，他們致力於押注自己並拓寬自己的經驗。

While this shift first accelerated because of the global pandemic, we believe the recent increase in layoffs will only continue to reinforce this talent trend as traditional employment models no longer equate to greater security. In fact, in 2022, MBO Partners reported that project-based professionals are happier, healthier and feel more secure than they did in traditional employment models.

雖然這種轉變首先因全球大流行而加速，但我們認為最近裁員的增加只會繼續強化這種人才趨勢，因為傳統的就業模式不再等同於更高的安全性。事實上，在 2022 年，MBO Partners 報告稱，與傳統僱傭模式相比，基於項目的專業人士更快樂、更健康、更有安全感。

Second, we are prioritizing our investment in fast-growing opportunities like digital transformation. Veracity is our digital consulting business delivering employees, clients and workplace transformation. Coming out of the pandemic, remote and hybrid work has forever changed the rules, timing, place and pace of work. Such shifts require that organizations realign how work is accomplished.

其次，我們正在優先投資於數字化轉型等快速增長的機會。 Veracity 是我們的數字諮詢業務，致力於幫助員工、客戶和工作場所實現轉型。從大流行中走出來，遠程和混合工作永遠改變了工作的規則、時間、地點和節奏。這種轉變要求組織重新調整工作的完成方式。

Veracity is squarely in the sweet spot, which has allowed us to increase the penetration of such services into our core RGP client base this year. For example, Veracity recently completed a significant project for our Fortune 50 global pharmaceutical company to help connect employees with services task and hyper-targeted communications. By harnessing the power of Employee Center Pro and ServiceNow, Veracity delivered a comprehensive set of services, including a first of its kind service delivery Internet creating a consumer-grade experience for employees through a new network of connected content. Under a single taxonomy, employees can now self-serve first reducing frustration, increasing productivity and giving the call center a much needed break.

Veracity 正處於最佳位置，這使我們能夠在今年增加此類服務對我們核心 RGP 客戶群的滲透。例如，Veracity 最近為我們的財富 50 強全球製藥公司完成了一個重要項目，以幫助將員工與服務任務和超針對性通信聯繫起來。通過利用 Employee Center Pro 和 ServiceNow 的力量，Veracity 提供了一套全面的服務，包括首創的服務交付互聯網，通過新的連接內容網絡為員工創造消費級體驗。在單一分類法下，員工現在可以首先自助服務，從而減少挫折感、提高工作效率並為呼叫中心提供急需的休息時間。

In addition, our subject matter experts within RGP have been working more closely with Veracity to bring a deeper functional lens to ServiceNow projects to automate workflows. During the quarter, Veracity launched a Center of Excellence in India to increase offshore talent pools and our corporate development activities are focused on building scale and reach for Veracity's digital and helping platforms.

此外，我們在 RGP 內的主題專家一直在與 Veracity 更緊密地合作，為 ServiceNow 項目帶來更深入的功能視角，以實現工作流程自動化。本季度，Veracity 在印度啟動了一個卓越中心，以增加離岸人才庫，我們的企業發展活動側重於為 Veracity 的數字和幫助平台建立規模和影響力。

Third, we are continuing to invest in HUGO as a modern digital engagement marketplace for talent and clients to engage directly for finance and accounting needs that are highly sought after and well defined. We've piloted HUGO in 3 markets: New York, New Jersey; Southern California; and Texas and are ready to pursue a more aggressive digital marketing plan to accelerate commercialization. We believe that digitalization for flexible placement and well-defined talent pool will increasingly disrupt the staffing industry, and we're optimistic about our position as a first mover in this professional category.

第三，我們將繼續投資 HUGO，將其作為一個現代數字參與市場，供人才和客戶直接參與，以滿足備受追捧和明確定義的財務和會計需求。我們在 3 個市場試行了 HUGO：紐約、新澤西；加州南部;和德克薩斯州，並準備實施更積極的數字營銷計劃以加速商業化。我們相信，靈活安置和定義明確的人才庫的數字化將越來越多地擾亂人力資源行業，我們對我們作為這一專業類別的先行者的地位持樂觀態度。

SIA recently reported that in 2021, staffing platforms grew more than 5x faster than traditional staffing firms at 58% versus 11%. Of note, we are increasingly receiving RFPs for professional staffing services from Global Fortune 500 clients, specifically attracted to our capabilities and investment plans for self-service digital engagement models. We live in an age of relentless digital disruption and must be prepared to meet the future with investments like HUGO and core business technology transformation.

SIA 最近報告稱，到 2021 年，人力資源平台的增長速度是傳統人力資源公司的 5 倍多，分別為 58% 和 11%。值得注意的是，我們越來越多地收到來自全球財富 500 強客戶的專業人才服務徵求建議書，特別是被我們在自助式數字參與模式方面的能力和投資計劃所吸引。我們生活在一個無情的數字顛覆時代，必須準備好通過像 HUGO 和核心業務技術轉型這樣的投資來迎接未來。

Turning to our technology transformation project. We are on track to implement a state-of-the-art technology stack in fiscal year '24. Not only will this digital initiative improve experience for all of our core constituents, consultants, internal employees and clients, but we expect it to drive improved financial metrics through automation, better data analytics and faster global collaborations. Once implemented, we'll have a global view of the business and can deploy talent more effectively, efficiently and faster on the broader stage.

轉向我們的技術改造項目。我們有望在 24 財年實施最先進的技術堆棧。這一數字計劃不僅會改善我們所有核心成員、顧問、內部員工和客戶的體驗，而且我們希望它能通過自動化、更好的數據分析和更快的全球協作來推動改進財務指標。一旦實施，我們將擁有全局的業務視野，可以在更廣闊的舞台上更有效、更高效、更快速地部署人才。

Seamless execution differentiates us as a preferred partner for global transformation projects and allows us to build talent delivery with the blended financial model. Many of our largest clients are increasingly moving global services capabilities to developing markets, and we will be well positioned to support them.

無縫執行使我們成為全球轉型項目的首選合作夥伴，並使我們能夠通過混合財務模型建立人才交付。我們的許多最大客戶正越來越多地將全球服務能力轉移到發展中市場，我們將有能力為他們提供支持。

Summing up, we are confident that our on-demand talent platform, whether delivered traditionally or digitally and our digital consulting capabilities are more relevant than ever in today's marketplace. We are optimistic about the investments we are making to align with the emerging dominant trends in the world of work and the incoming data supports our thinking. In the meantime, we have a very resilient and profitable core business with a pristine balance sheet, allowing us to continue to strengthen the enterprise with capabilities and innovation that will accelerate growth as the economy recovers.

總而言之，我們相信，我們的按需人才平台，無論是傳統方式還是數字方式，以及我們的數字諮詢能力，在當今市場上比以往任何時候都更加重要。我們對我們為順應職場新出現的主導趨勢而進行的投資持樂觀態度，並且傳入的數據支持我們的想法。與此同時，我們擁有非常有彈性和盈利能力的核心業務，資產負債表完好，使我們能夠繼續加強企業的能力和創新，隨著經濟復甦加速增長。

I'll now turn the call over to Tim for an update on operations.

我現在將電話轉給蒂姆，以了解最新的運營情況。

Thank you, Kate, and good afternoon, everyone. During the third quarter, we saw a solid revenue performance and operational metrics, and we're able to exceed topline expectations. The overall demand profile for the business continue to be healthy. However, client uncertainty related to the overall macro environment made it more challenging for new business. Total pipeline remained strong throughout the quarter, indicating endurance of opportunity yet converting opportunities to project starts was slower related to myriad factors, including tightened approval levels and delays in supposed initiative timeline. These opportunities are intact but require increased patients in care and we believe they represent real prospects for growth as clients rapidly adjust to the new environment.

謝謝你，凱特，大家下午好。在第三季度，我們看到了穩健的收入表現和運營指標，我們能夠超出收入預期。該業務的整體需求狀況繼續保持健康。然而，與整體宏觀環境相關的客戶不確定性使新業務更具挑戰性。整個季度的總管道保持強勁，表明機會的持久性但將機會轉化為項目啟動的速度較慢，這與多種因素有關，包括收緊的批准水平和假定的計劃時間表的延遲。這些機會是完整的，但需要更多的患者接受護理，我們相信隨著客戶迅速適應新環境，它們代表了真正的增長前景。

Regional performance was mixed, reflecting increased vacation impact over prior year and the increased choppiness in client demand. Despite these 2 factors, Veracity and Countsy in the Central U.S. demonstrated solid growth over prior year quarter. Additionally, our international business showed resilience as Europe generated sequential growth on a constant currency basis and Asia Pacific posted strong results despite the first fully celebrated Chinese New Year since the outset of the pandemic. Our strategic client accounts program was also affected by the broader trend but has performed well overall on a year-to-date basis, growing approximately 4% over the prior year.

區域表現喜憂參半，反映出假期影響比上一年增加以及客戶需求的波動性增加。儘管有這兩個因素，美國中部的 Veracity 和 Countsy 仍比去年同期實現了穩健增長。此外，我們的國際業務表現出彈性，因為歐洲在恆定貨幣基礎上實現了連續增長，而亞太地區儘管自大流行開始以來首次慶祝中國農曆新年，但仍取得了強勁的業績。我們的戰略客戶賬戶計劃也受到更廣泛趨勢的影響，但從年初至今總體表現良好，比上一年增長約 4%。

Overall, we have performed solidly through the first 3 quarters of the year, growing by about 6%, exclusive of the divested task force business on a same-day constant currency basis, and our growth pipeline continues to be sizable. Client hesitation requires the more patience and persistence with respect to top-of-the-funnel activity as well as extra vigilance, communication and consideration while shepherding opportunities through the sales cycle to deal closure. The overall market opportunity remains as companies continue to transform and build workforce plans accounting for a distinct transition and labor force mindset towards flexibility and choice.

總體而言，我們在今年前 3 個季度表現穩健，增長了約 6%，不包括按當日固定匯率計算的剝離任務組業務，我們的增長渠道繼續保持可觀。客戶的猶豫需要對漏斗頂端的活動有更多的耐心和堅持，以及在通過銷售週期把握機會以完成交易時要格外警惕、溝通和考慮。整體市場機會依然存在，因為公司繼續轉型和製定勞動力計劃，考慮到針對靈活性和選擇的明顯轉變和勞動力心態。

The pace of required change and the alteration in employee mentality are really permanent shifts framing each company's future workforce plan. A movement toward co-delivery of important initiatives that already begun and now a resetting of plan through the lens of productions in force will likely require many to lean in more to agile partners. Speed and flexibility are essential in order to rightsize workforce plans, seamlessly run day-to-day operations and transform for the future. We know this provides a runway for opportunity for us once companies re-baseline their plans.

所需變革的步伐和員工心態的改變實際上是構成每家公司未來勞動力計劃的永久性轉變。朝著共同交付已經開始的重要計劃以及現在通過有效製作的鏡頭重新設定計劃的運動可能需要許多人更多地依賴敏捷合作夥伴。速度和靈活性對於調整勞動力計劃、無縫運行日常運營和麵向未來進行轉型至關重要。我們知道，一旦公司重新制定計劃基準，這就為我們提供了一條機會跑道。

We see true upside in the future but time lines are really driven by clients as they carefully rationalize and build for tomorrow. Here are 2 examples of work with Fortune 500 technology clients that help us illustrate the current mixed environment. One of the clients long ago transitioned to a plan centered around a more fluid workforce. They continue to transform during the current environment and have started to rely on us more broadly for support. A leading reason for this reliance is the investment we have made in understanding their business, their organizational structure and their culture.

我們看到了未來真正的上升空間，但時間線實際上是由客戶驅動的，因為他們會為明天謹慎地合理化和建設。以下是與財富 500 強技術客戶合作的 2 個示例，可幫助我們說明當前的混合環境。很久以前，一位客戶就轉向了以流動性更強的勞動力為中心的計劃。他們在當前環境中繼續轉型，並開始更廣泛地依賴我們的支持。這種依賴的一個主要原因是我們在了解他們的業務、組織結構和文化方面所做的投資。

Key client relationships built over time, coupled with the fast-moving trends we are currently seeing, have provided immediate opportunity for us both in on-demand talent and consulting as our buyers prioritize value in their purchasing decision. In recent weeks, we've been invited to bid on several RFPs enjoyed successful outcome. This represents substantial movement in our ability to win share from larger consultant teams within this long-time client and reflects the renewed flight to value.

隨著時間的推移建立的主要客戶關係，加上我們目前看到的快速變化的趨勢，為我們提供了按需人才和諮詢方面的直接機會，因為我們的買家在他們的購買決策中優先考慮價值。最近幾週，我們受邀參與了多項 RFP 的競標，並獲得了成功。這代表了我們在這個長期客戶中從更大的顧問團隊中贏得份額的能力發生了重大變化，並反映了新的價值飛躍。

On-demand staffing within the client continues to grow as stakeholders work hard to fill gaps and to move away from low staff arrangements of larger products. In fact, we are directly collaborating with our clients' global procurement team to build a resourcing plan for existing and forthcoming initiatives around the (inaudible). Velocity within this client is growing and we expect to continue to take share as our client trust RGP to help them with their most important initiatives.

隨著利益相關者努力填補空白並擺脫大型產品的低人員安排，客戶內部的按需人員配置繼續增長。事實上，我們正在直接與客戶的全球採購團隊合作，為圍繞（聽不清）的現有和即將實施的計劃制定資源計劃。該客戶的速度正在增長，我們希望繼續分享，因為我們的客戶信任 RGP 來幫助他們完成最重要的計劃。

Other clients whose agile workforce plans are less mature, will have longer time lines for adjustment. As an example, another one of our Fortune 500 technology clients has gone through multiple rounds of layoffs during the strategic reorganization. Like many, they overhired during the tight labor market and are now sorting through where best to utilize their remaining talent. In these periods of uncertainty, attrition rises and initiatives are paused. As a result, even though some projects that were won and many in the pipeline have been delayed, our stakeholders are extending our existing teams as they do not want to lose a proved resources that they will likely need a plan solidified.

其他敏捷勞動力計劃不太成熟的客戶將有更長的調整時間。例如，我們的另一家世界 500 強技術客戶在戰略重組期間經歷了多輪裁員。像許多人一樣，他們在勞動力市場吃緊時過度招聘，現在正在挑選最能利用剩餘人才的地方。在這些充滿不確定性的時期，人員流失率上升，舉措暫停。因此，即使一些已經贏得的項目和許多正在籌備中的項目被推遲，我們的利益相關者仍在擴展我們現有的團隊，因為他們不想失去經過驗證的資源，他們可能需要鞏固計劃。

On the Canada side of our business, in the third quarter, we continued to attract and retain exceptional talent to our platform, which is viewed as an increasingly appealing option because of worker sentiment and economic sum. As plans of -- at restructurings and layoffs, more people begin to realize that there is very little difference in stability when comparing agile and traditional employment. In fact, the strength of community and human-first culture that has always been the center of RGP's value proposition, does not wane or flicker during turbulent time as the dust for many traditional influence.

在我們業務的加拿大方面，在第三季度，我們繼續吸引並留住優秀人才到我們的平台，由於工人情緒和經濟總量，該平台被視為越來越有吸引力的選擇。隨著重組和裁員的計劃，越來越多的人開始意識到，在比較敏捷就業和傳統就業時，穩定性幾乎沒有什麼區別。事實上，一直以來作為RGP價值主張中心的社區力量和以人為本的文化，並沒有像許多傳統影響力的塵埃一樣，在動蕩的時代消退或閃爍。

We have numerous examples of impacted workers seeking to work with us, including alumni and a large cadre new to our platform, bringing new skill sets and experience to our already deep employee base. The labor market remains tight and project start dates are fluid, which impacts engagement timing, an interesting dynamic that our talent team manage is beautiful. Through it all, consultant attrition rate has remained relatively consistent, which speaks to the excellent performance of our team and the strength of our employment brand.

我們有許多受影響的員工尋求與我們合作的例子，包括校友和我們平台的新幹部，為我們已經很深的員工基礎帶來新的技能和經驗。勞動力市場仍然緊張，項目開始日期不穩定，這會影響參與時間，這是我們的人才團隊管理的一個有趣的動態。通過這一切，顧問流失率一直保持相對穩定，這說明我們團隊的出色表現和我們雇主品牌的實力。

We believe that the unique current conditions will only accelerate recent employment trends and make RGP the premier destination for talent that is daring to work differently. In the past, I've spoken to Boomerangs, alumni who have left RGP over time and have returned realizing that in reality, the grass is not greener and that the experience of working within our community is hard to replicate. We worked hard to stay very close to our consultant alumni and is at the parent that many people want to return after succumbing to the allure of traditional employment.

我們相信，當前獨特的條件只會加速近期的就業趨勢，並使 RGP 成為敢於以不同方式工作的人才的首選目的地。過去，我曾與 Boomerangs 談過，這些校友隨著時間的推移離開了 RGP，然後又回來了，他們意識到現實中，草地並沒有更綠，而且在我們社區工作的經驗很難復制。我們努力與我們的顧問校友保持密切聯繫，並且是許多人在屈服於傳統就業的誘惑後希望返回的父母。

Some have been impacted by restructuring, but many want to return because of the experience we provide. As just one example, we have 3 consultants working together on a project for our financial services clients. We love separately to pursue different traditional opportunities. All 3 returned during the quarter, largely because the roles they left were not as rich in terms of experience and culture and they miss working with our go-to-market team. All of them reengaged in different projects and are happy to be back with RGP.

有些人受到重組的影響，但許多人因為我們提供的經驗而想返回。僅舉一個例子，我們有 3 名顧問一起為我們的金融服務客戶開展一個項目。我們喜歡分開去追求不同的傳統機會。這 3 人都在本季度返回，主要是因為他們離開的職位在經驗和文化方面沒有那麼豐富，而且他們想念與我們的上市團隊合作。他們都重新參與了不同的項目，很高興能回到 RGP。

Now let me turn back to our third quarter operations. In addition to the growth pipeline remaining at a high level, we were able to make continued progress in pricing. Excluding divested task force operations, bill rates increased by 3.1% on a constant currency basis compared to prior year quarter. Pricing leverage continues to be an opportunity across the enterprise as clients trust our consultants and trust is at a premium today. While project timing will continue to be a challenge and it is impacting weekly revenue in the early fourth quarter, we believe there is revenue outside based on the deals in the pipeline.

現在讓我回到我們第三季度的運營。除了保持高水平的增長渠道外，我們還能夠在定價方面取得持續進展。不包括剝離的特別工作組業務，與去年同期相比，票據利率在固定匯率基礎上增長了 3.1%。定價槓桿仍然是整個企業的機會，因為客戶信任我們的顧問，而如今這種信任非常寶貴。雖然項目時間安排將繼續是一個挑戰，並且它正在影響第四季度初的每週收入，但我們相信，根據正在進行的交易，外部會有收入。

Finally, let me touch on operational leverage. In Q3, we continued to focus on controlling fixed costs and operating efficiently, resulting in strong EBITDA margin, particularly given the economic environment. We will remain especially vigilant about discretionary spend through the fourth quarter and beyond. I will now turn the call over to Jenn for a more detailed review of our third quarter results.

最後，讓我談談運營槓桿。在第三季度，我們繼續專注於控制固定成本和高效運營，從而實現了強勁的 EBITDA 利潤率，尤其是考慮到經濟環境。在第四季度及以後，我們將對可自由支配的支出保持特別警惕。我現在將把電話轉給 Jenn，以便對我們第三季度的業績進行更詳細的審查。

Thank you, Tim, and good afternoon, everyone. This quarter, we achieved revenue performance exceeding the high end of our outlook range. We achieved the highest third quarter gross margin in over a decade and we remain disciplined with our costs performing better than the favorable end of our run rate SG&A outlook range.

謝謝蒂姆，大家下午好。本季度，我們實現的收入表現超出了我們預期範圍的高端。我們實現了十多年來最高的第三季度毛利率，並且我們仍然遵守紀律，我們的成本表現優於我們運行率 SG&A 展望範圍的有利端。

While we outperformed our topline outlook range provided in January, compared to the prior fiscal year, which had elevated revenues as clients emerge from pandemic, revenue of $186.8 million for the third quarter was down 4% year-over-year on a same-day constant currency basis and excluding task force. However, year-to-date revenues grew 6% year-over-year on the same basis.

雖然我們的表現超過了 1 月份提供的收入展望範圍，但與上一財年相比，上一財年隨著客戶從大流行病中復蘇而收入增加，但第三季度 1.868 億美元的收入在同一天同比下降了 4%不變的貨幣基礎，不包括工作隊。然而，年初至今的收入在同一基礎上同比增長 6%。

As Tim mentioned, our pipeline remains strong throughout the quarter, and we've experienced decancellations. We continue to make good progress on improving bill rates to align our pricing with the value we deliver. Our U.S. average bill rate rose 4.7% compared to the third quarter of fiscal 2022, with Europe and Asia Pac driving 8.4% and 6.3% improvement on a constant currency basis.

正如蒂姆所提到的，我們的渠道在整個季度都保持強勁，而且我們經歷了取消。我們繼續在提高賬單費率方面取得良好進展，以使我們的定價與我們提供的價值保持一致。與 2022 財年第三季度相比，我們的美國平均票據利率上漲了 4.7%，歐洲和亞太地區在固定匯率基礎上分別上漲了 8.4% 和 6.3%。

Regionally, on a same-day and constant-currency basis, North America revenue decreased 5.7% compared to an extraordinarily strong prior fiscal quarter, while APAC grew 9.8% and Europe, excluding task force, grew by 4.3%. Bright spots in North America included Veracity and Countsy, both growing year-over-year. APAC as a region grew primarily due to strong demand from our strategic client accounts in Southeast Asia as well as excellent revenue performance in Japan. Europe after experiencing a softer first half of this fiscal year, exhibited better stability following the onset of the Russia-Ukraine conflict a year ago.

從地區來看，在同一天和固定匯率的基礎上，北美收入與異常強勁的上一財季相比下降了 5.7%，而亞太地區增長了 9.8%，歐洲（不包括特別工作組）增長了 4.3%。北美的亮點包括 Veracity 和 Countsy，兩者都在逐年增長。亞太地區作為一個地區的增長主要是由於我們在東南亞的戰略客戶賬戶的強勁需求以及日本出色的收入表現。歐洲在經歷了本財年上半年的疲軟之後，在一年前俄烏衝突爆發後表現出更好的穩定性。

Gross margin in the quarter was 38.3%, an expansion of 80 basis points over the same quarter a year ago driven by an improvement in the pay bill ratio of 190 basis points, partially offset by an increase in consulting benefit. Excluding task force, enterprise average bill rate for the quarter was $131 constant currency, up from $127 a year ago, while average pay rate remained flat at $62.

本季度毛利率為 38.3%，比去年同期增長 80 個基點，這主要是由於支付賬單比率提高了 190 個基點，部分被諮詢收益的增加所抵消。不包括特別工作組，本季度企業平均賬單利率為 131 美元不變貨幣，高於一年前的 127 美元，而平均工資率持平於 62 美元。

Turning to SG&A. We remain disciplined with cost management and investment oversight in the business. Our run rate SG&A expense for the quarter was $55 million compared to $54.4 million a year ago, better than the favorable end of our $56 million to $58 million outlook range. As a reminder, run rate SG&A excludes noncash stock compensation, restructuring charges, contingent consideration and technology transformation costs.

轉向 SG&A。我們在業務成本管理和投資監督方面保持紀律。我們本季度的運行率 SG&A 費用為 5500 萬美元，而一年前為 5440 萬美元，好於我們 5600 萬至 5800 萬美元展望範圍的有利端。提醒一下，運行率 SG&A 不包括非現金股票補償、重組費用、或有對價和技術改造成本。

With stronger pricing leverage and disciplined cost management, we delivered a solid 8.9% adjusted EBITDA margin for the quarter.

憑藉更強的定價槓桿和嚴格的成本管理，我們在本季度實現了 8.9% 的調整後 EBITDA 利潤率。

Turning to liquidity. We continue to demonstrate our ability to generate robust free cash flow. Cash from operations through the first 3 quarters of fiscal year was $64 million. Free cash flow conversion was 100% of EBITDA equating to $63 million. We ended the fiscal quarter with $104 million of cash and cash equivalents after fully paying down $20 million of remaining outstanding debt distributing $4.7 million of dividends and spending $5.2 million in share repurchases.

轉向流動性。我們繼續展示我們產生強勁自由現金流的能力。本財年前三個季度的運營現金為 6400 萬美元。自由現金流轉換為 EBITDA 的 100%，相當於 6300 萬美元。在全額償還 2000 萬美元的剩餘未償債務、分配 470 萬美元的股息並花費 520 萬美元用於股票回購後，我們在本財政季度結束時擁有 1.04 億美元的現金和現金等價物。

The total available financial liquidity of $278 million we plan to invest in the most critical areas of the business to drive long-term growth while continuing to return cash to shareholders through dividends and by opportunistically buying back stock through our share repurchase program, which had $54.9 million available at the end of the quarter.

我們計劃將 2.78 億美元的可用財務流動性總額投資於業務最關鍵的領域，以推動長期增長，同時繼續通過股息和通過我們的股票回購計劃機會主義地回購股票向股東返還現金，該計劃有 54.9 美元百萬在本季度末可用。

Investment in our multiyear technology transformation projects continue to progress and remain on track. We incurred $3.9 million of costs in the quarter, of which $2.2 million was capitalized with the remaining $1.7 million included as non-run rate operating expenses for the quarter. Estimated cash outlay on the transformation project in the fourth quarter is expected to be in the range of $4 million to $6 million, of which approximately $2 million to $3 million will be capitalized. Upon go live, we anticipate the new technology platform will drive long-term value for the business by elevating our operating efficiency, enabling scale and enhancing the stickiness of our talent platform.

對我們多年技術轉型項目的投資繼續取得進展並保持在正軌上。我們在本季度發生了 390 萬美元的成本，其中 220 萬美元被資本化，其餘 170 萬美元被列為本季度的非運行率運營費用。預計第四季度轉型項目的現金支出預計在 400 萬至 600 萬美元之間，其中約 200 萬至 300 萬美元將被資本化。上線後，我們預計新技術平台將通過提高我們的運營效率、實現規模化和增強人才平台的粘性，為企業帶來長期價值。

I'll now close with our fourth quarter outlook. Early fourth quarter revenue trends have been modest compared to Q3. We expect the fourth quarter to be impacted by the general slowdown in the economy and estimate revenue to be in the range of $178 million to $183 million. While clients sort out their own internal initiatives and budgets and look for better economic visibility, we will continue to maintain robust sales motion and strengthen our position to close opportunities in the pipeline. Fourth quarter gross margin is expected to remain strong in the range of 40% to 41%.

我現在將結束我們的第四季度展望。與第三季度相比，第四季度初的收入趨勢溫和。我們預計第四季度將受到經濟普遍放緩的影響，預計收入將在 1.78 億美元至 1.83 億美元之間。在客戶整理自己的內部計劃和預算並尋求更好的經濟可見性的同時，我們將繼續保持強勁的銷售勢頭並加強我們的地位以關閉管道中的機會。預計第四季度毛利率將保持在 40% 至 41% 的強勁水平。

On the SG&A front, we expect our run rate SG&A expense to be in the range of $56 million to $58 million, non-run rate and noncash expenses for the fourth quarter will consist of $2 million to $3 million of technology transformation costs and approximately $3 million of stock compensation expense. As we approach the end of fiscal 2023, we expect our full year results for the second year in a row to be one of the best years in over a decade, notwithstanding what has been an uncertain and challenging environment.

在 SG&A 方面，我們預計我們的運行率 SG&A 費用將在 5600 萬至 5800 萬美元之間，第四季度的非運行率和非現金費用將包括 200 萬至 300 萬美元的技術轉型成本和大約 3 美元萬元的股票補償費用。隨著我們接近 2023 財年末，我們預計我們連續第二年的全年業績將成為十多年來最好的年份之一，儘管環境充滿不確定性和挑戰性。

This is a testament to our deep client relationships, our attractive talent platform and our laser focus on execution. We're excited about our business fundamentals and opportunities ahead. With a resilient variable cost model, a pristine balance sheet with 0 debt and ample liquidity, we believe we are well positioned to continue to drive long-term value for our shareholders.

這證明了我們深厚的客戶關係、我們有吸引力的人才平台和我們對執行的高度關注。我們對未來的業務基礎和機遇感到興奮。憑藉彈性可變成本模型、零債務和充足流動性的原始資產負債表，我們相信我們有能力繼續為股東創造長期價值。

That concludes our prepared remarks, and we will now open up the call for Q&A.

我們準備好的發言到此結束，現在我們將開啟問答環節。

(Operator Instructions)

（操作員說明）

Our first question comes from the line of Mark Marcon of Baird.

我們的第一個問題來自 Baird 的 Mark Marcon。

I'm wondering, can you talk a little bit about what you're seeing just in terms of the client delays and to what extent do you feel like they're either concentrated on the coasts partially due to what we're seeing on the credit side? Wondering if your -- if you have any commentary there.

我想知道，您能否談談您所看到的客戶延遲情況，以及您認為他們在多大程度上集中在沿海地區，部分原因是我們在貸方？想知道您是否有任何評論。

Mark, it's Tim. Yes, I would say there's been some concentration related to delays on the coast because the coasts are our largest businesses generally. Also on the West Coast, we're being full on work with the tech sector. We've seen probably more delays there this year than we've seen historically. But I would say that broadly speaking, we delayed projects for a number of reasons, including ones we enumerated in the script are not just in the coast. We're seeing it more broadly. But because of the -- like I said, because of the concentration of work that we have on the coast, we probably do see a little bit heavier concentration there.

馬克，我是蒂姆。是的，我會說有一些與海岸延誤有關的集中，因為海岸通常是我們最大的業務。同樣在西海岸，我們正全力與科技部門合作。今年我們在那裡看到的延誤可能比以往任何時候都多。但我要說的是，從廣義上講，我們推遲項目的原因有很多，包括我們在劇本中列舉的不僅僅是在海岸。我們正在更廣泛地看到它。但是因為——就像我說的，因為我們的工作集中在沿海地區，我們可能確實看到那裡的集中度更高一些。

And Tim, what's the commentary from the clients? Just with regards to their uncertainty in terms of financing levels, particularly, I'd be interested just in terms of like what percentage of the business is currently being done with relatively younger tech companies that might have been funded by SVB as an example.

蒂姆，客戶的評論是什麼？就他們在融資水平方面的不確定性而言，特別是，我感興趣的只是目前與可能由 SVB 資助的相對年輕的科技公司完成的業務百分比。

Yes. I mean, most of our business carry concentration of our business is with bigger clients in the Fortune 500. So what we do, do work with some earlier stages, we didn't have a lot of impact. The delays weren't really impacted by SVB other than, I think, some periods of uncertainty when everybody was concerned about the broader economy. I think the reason for delays is myriad.

是的。我的意思是，我們的大部分業務都集中在財富 500 強中的大客戶。所以我們所做的，在一些早期階段工作，我們沒有產生太大影響。延遲並沒有真正受到 SVB 的影響，我認為，除了一些不確定的時期，當時每個人都在關注更廣泛的經濟。我認為延誤的原因有很多。

But I think I would put it in a couple of different camps. One is there's just increased scrutiny on all projects right now generally. And number two, there were a lot of companies who are figuring out their own -- trying to support their own workforce plans right now. Many of them I alluded to this in the script, had overhired and they're now trying to figure out what they're going to do with some of their traditional employees who either they -- who have been reorganized or with priorities that have shifted. So that's really causing a lot of the delay, not really -- it doesn't have a lot to do with the credit prices related to SVB.

但我想我會把它放在幾個不同的陣營中。一是現在對所有項目的審查普遍都在加強。第二，有很多公司正在想出自己的辦法——現在正試圖支持自己的勞動力計劃。我在劇本中提到過，他們中的許多人都被過度僱用了，他們現在正試圖弄清楚他們將如何處理他們的一些傳統員工，他們要么已經重組，要么已經轉移了優先事項.所以這確實造成了很多延遲，不是真的 - 它與 SVB 相關的信貸價格沒有太大關係。

I really appreciate that color. And in terms of the delays, how long -- I mean, it's obviously fluid and hard to say. But do you think it's maybe a 3- to 6-month process in terms of working through those delays? What are you hearing from clients just in general from that perspective in terms of when they feel like they'd be confident about proceeding with some of the many useful projects that you could help them with?

我真的很欣賞那種顏色。就延遲而言，多長時間——我的意思是，這顯然是流動的，很難說。但您認為解決這些延遲可能需要 3 到 6 個月的時間嗎？就客戶何時覺得他們有信心繼續進行您可以幫助他們的許多有用項目中的一些項目而言，您一般從客戶那裡聽到了什麼？

It's kind of mixed and there's -- I think there's a little bit of -- just to be honest, some stop and starts relative to approval processes. I would say that the opportunities that kind of stay within our pipeline where we're really ensuring that these are projects that are going to start -- that we think are going to start first and get canceled and we've seen very few get canceled at all. I would expect that we would be able to start in that time frame that you're talking about. We don't have very many that have aged out to the latter end of that range.

它有點複雜，而且 - 我認為有一點 - 老實說，相對於審批流程，有些停頓和開始。我想說的是，這種機會保留在我們的管道中，我們真正確保這些是將要開始的項目——我們認為將首先開始並被取消，而且我們看到很少有人被取消根本。我希望我們能夠在您所說的那個時間範圍內開始。我們沒有很多已經老化到該範圍的後期。

Great. And then great job with regards to the bill pay spread. How much more room do you think you have there? It sounds pretty encouraging in terms of thinking about how it could end up being for the fourth quarter, although it -- Jenn, did I hear you correctly, 40% to 41% is kind of the guide for gross margin?

偉大的。然後在賬單支付差價方面做得很好。你認為你還有多少空間？考慮到第四季度最終結果如何，這聽起來非常令人鼓舞，儘管它 - Jenn，我沒聽錯，40% 到 41% 是毛利率的指導？

Yes, that's right. 40% to 41%, correct.

恩，那就對了。 40% 到 41%，正確。

Okay. So maybe slightly down relative to Q4 of 2022?

好的。那麼相對於 2022 年第四季度可能略有下降？

Yes, that's right. And that's -- look, I mean, the pay bill spread we still expect it to be strong in Q4, but compared to last year, if you look at our indirect costs just because topline is down compared to last year. So it's less -- just unfavorable leverage there. That's what's bringing down the overall gross margin.

恩，那就對了。那就是 - 看，我的意思是，我們仍然預計第四季度的工資單價差會很強勁，但與去年相比，如果你看看我們的間接成本只是因為與去年相比下降了。所以它更少 - 只是不利的槓桿作用。這就是降低整體毛利率的原因。

Got it. But the bill rates still expanding at a sustained rate or higher?

知道了。但票據利率仍在以持續或更高的速度擴張？

Yes. I mean we believe we have more upside on our pricing and bill rate. So yes, I expect that our pay bills should be -- we should be able to sustain that, not improve it.

是的。我的意思是我們相信我們在定價和賬單利率方面有更多的優勢。所以是的，我希望我們的工資單應該是——我們應該能夠維持它，而不是改善它。

Terrific. And then Kate, you spoke about multiple growth levers. Obviously, within the staffing industry, there's a lot of discussion with regards to these talent platforms and what you're doing with HUGO would fit within that. Can you give us a little bit of a sense for like how material you think it could end up being over the next 2 to 3 years in terms of potential revenue? I know it's early days, but just how are you thinking about it? How is the Board thinking about it in terms of the investment?

了不起。然后凱特，你談到了多種增長槓桿。顯然，在人力資源行業內，有很多關於這些人才平台的討論，而你在 HUGO 所做的事情也符合這些討論。就潛在收入而言，您能否讓我們了解一下您認為它在未來 2 到 3 年內最終會成為什麼樣的材料？我知道現在還為時過早，但你是怎麼想的？董事會如何考慮投資？

Yes. So with these platforms, there's a hockey-stick effect. So if you look at -- the most successful platform in the marketplace today in staffing is in health care staffing. And so health care is one that (inaudible). Yes. But if you look at their growth, I mean, they started small, and now they're over $11 billion. So you do see that hockey-stick effect once you get critical mass and you've driven behavioral change. And that's what I think is just ahead of us.

是的。因此，對於這些平台，會產生曲棍球棒效應。因此，如果您看一下 - 當今市場上最成功的人員配置平台是醫療保健人員配置。因此，醫療保健是一種（聽不清）。是的。但如果你看看他們的增長，我的意思是，他們開始時規模很小，現在已經超過 110 億美元。所以一旦你達到臨界質量並且你已經推動了行為改變，你就會看到曲棍球棒效應。這就是我認為就在我們面前的。

So this next fiscal year will be focused on critical mass, economies of scale really delivering in the 3 markets where we're already focused. And that's important, Mark, because we're all reading about the return to the office for some roles. And we do believe it's important to have more localized talent pools for some of this work if on-site delivery is required. But overall, going to your question, what we're modeling is modest growth in the year ahead, but then continuing to scale more like a hockey-stick approach, especially as we invest more in digital marketing and sales support.

因此，下一個財政年度將專注於臨界質量，規模經濟真正在我們已經關注的 3 個市場中實現。這很重要，馬克，因為我們都在閱讀有關返回辦公室擔任某些角色的信息。我們確實相信，如果需要現場交付，那麼為其中一些工作配備更多本地化人才庫非常重要。但總的來說，對於你的問題，我們正在建模的是未來一年的適度增長，但隨後繼續像曲棍球棒方法一樣擴大規模，尤其是當我們在數字營銷和銷售支持方面投入更多時。

And how many markets -- you're currently in 3 markets, how many market could you be in by the end of the next fiscal year, so fiscal '24?

有多少個市場——你目前在 3 個市場，到下一個財政年度結束時你能進入多少個市場，所以 24 財年？

Well, I really -- like I said, I think we're going to concentrate first on getting the critical mass in the markets we're operating in now. It takes about 3 months to build a quality talent pool in a new market. I will share that with you. We're doing it both with dedicated onshore talent but also with an offshore partner. So it -- we can scale pretty quickly once we establish that we've achieved critical mass in the markets we're in right now.

好吧，我真的 - 就像我說的那樣，我認為我們將首先集中精力在我們現在經營的市場中獲得臨界質量。在新市場建立優質人才庫大約需要3個月的時間。我會和你分享。我們正在與專門的在岸人才以及離岸合作夥伴一起做這件事。所以它 - 一旦我們確定我們已經在我們現在所在的市場中達到臨界質量，我們就可以非常快速地擴展。

Great. And then obviously, there's all sorts of macro questions that are out there. If we were to go into a mild recession, what do you think the downside would basically be with regards to EBITDA margins? You've done a nice job of getting them up over the last couple of years. How should we think about what your flexibility is from a cost perspective if things get a little bit worse?

偉大的。然後很明顯，那裡有各種各樣的宏觀問題。如果我們要進入溫和的衰退，您認為 EBITDA 利潤率的下行基本上是什麼？在過去的幾年裡，你在讓他們振作起來方面做得很好。如果情況變得更糟，我們應該如何從成本角度考慮您的靈活性？

Right. Well, I mean, our model, that's what we love about this model in times of transition is that it is very agile and that 80% of our -- 70% of our cost structure is variable. So keep that in mind. Now the part that is not variable, we'll continue to look at very critically if we see revenue continue to decline or decline more quickly because of a recession.

正確的。好吧，我的意思是，我們的模型，這就是我們在轉型時期喜歡這個模型的原因是它非常敏捷，而且我們 80% - 70% 的成本結構是可變的。所以記住這一點。現在，不變的部分，如果我們看到收入因經濟衰退而繼續下降或下降得更快，我們將繼續非常批判地看待。

But keep in mind, if you ask me overall how I think about the business, I think it's a matter of timing right now. I think we are so well positioned with our clients to deliver what they need. It's a matter of timing because even in a deeper recession, and we saw this coming out of past recessions, clients cut too deep and then they need to turn to us before full recovery in order to get work done that is nondiscretionary. So to me, the challenge in the business right now is timing, not opportunity.

但請記住，如果你問我對這項業務的總體看法，我認為現在是時間問題。我認為我們與客戶的關係非常好，可以滿足他們的需求。這是一個時間問題，因為即使在更嚴重的衰退中，我們看到這種情況已經從過去的衰退中出現，客戶削減得太深，然後他們需要在完全復甦之前求助於我們，以便完成非自由裁量權的工作。所以對我來說，現在業務中的挑戰是時機，而不是機會。

Our next question comes from the line of Stephanie Yee of JPMorgan.

我們的下一個問題來自摩根大通的 Stephanie Yee。

I was wondering if you can help us with what the implied revenue decline is in the fourth quarter guide versus the 4.1% decline in the just reported third quarter?

我想知道您是否可以幫助我們了解第四季度指南中的隱含收入下降與剛剛報告的第三季度 4.1% 的下降相比是多少？

Yes. Sure. The fourth quarter at the top end of the guidance range at $183 million, we are looking at about 12% year-over-year decline. And compared to the third quarter, you're looking at about an 8% decline. But let me just -- again, we're going to -- if you think back to Q4 of last year, it was an extraordinary quarter. And our revenue cadence over the 2 fiscal years, it flipped a little bit. Last year was -- we were accelerating throughout the entire year. And -- but on a year-to-date basis, if you look at what we're guiding, we're essentially flat to last year on a -- if you were to exclude task force.

是的。當然。第四季度處於指導範圍的頂端，為 1.83 億美元，我們預計同比下降約 12%。與第三季度相比，您看到的下降幅度約為 8%。但是讓我 - 再一次，我們要 - 如果你回想起去年第四季度，那是一個非凡的季度。我們在兩個財政年度的收入節奏發生了一些變化。去年是——我們全年都在加速。而且 - 但從年初至今的基礎上，如果你看看我們的指導，我們基本上與去年持平 - 如果你要排除特別工作組。

Okay. Great. That's super helpful. And I know, Kate, you just gave a bunch of color on HUGO. But we were wondering if you have any preliminary information to share on how many active user candidates are already on the platform?

好的。偉大的。這非常有幫助。我知道，凱特，你剛剛給了雨果一些顏色。但我們想知道您是否有任何關於平台上已有多少活躍用戶候選者的初步信息可以分享？

Yes. So we have strong adoption from the talent base. We have -- we're not disclosing that level of detail yet, Stephanie, because it's still a growing platform. So I don't want to set expectations while we're still learning but we have captive pools in each of the 3 markets that I would say are approaching critical mass and have proven to be very sticky. And our turnaround times are really improving in terms of matching opportunity with talent. So we'll continue to monitor this. And then as the platform becomes more successful and stable, we'll be sharing more detail.

是的。因此，我們從人才庫中得到了廣泛的採用。斯蒂芬妮，我們已經——我們還沒有透露那種程度的細節，因為它仍然是一個不斷發展的平台。所以我不想在我們還在學習的時候設定期望，但我們在 3 個市場中的每一個都有專屬池，我想說這些池正在接近臨界質量並且已被證明非常粘。在將機會與人才相匹配方面，我們的周轉時間確實有所改善。因此，我們將繼續對此進行監控。然後隨著平台變得更加成功和穩定，我們將分享更多細節。

Our next question comes from the line of Marc Riddick of Sidoti.

我們的下一個問題來自 Sidoti 的 Marc Riddick。

So I sort of want to follow up on the last question around HUGO as far as you made mention on some early learnings. So I was sort of curious as to maybe could you talk a little bit about what some of those learnings are as well as if there's much in the way of differentiation between the 3 markets, is what you're experiencing in these early days similar across the board? Are you seeing any differences that are somewhat regionally based? Or how should we think about that?

所以我有點想跟進關於 HUGO 的最後一個問題，就你提到的一些早期學習而言。所以我有點好奇，也許你能談談其中的一些學習是什麼，以及這 3 個市場之間是否存在很大差異，你在這些早期經歷的是相似的董事會？您是否看到任何基於區域的差異？或者我們應該如何考慮？

Well, I think we're really focused on technology targets, say, in the Tristate area and financial services and private equity. So the needs from a role and skill set perspective are a little bit different than what we'll see in Texas, for example, or Southern California. I can tell you the most sought-after kind of title that we're seeing on HUGO so far is staff accounting, which shouldn't surprise anyone, especially given the fact that, that skill set is in demand in the marketplace.

好吧，我認為我們真正關注的是技術目標，比如在三州地區以及金融服務和私募股權領域。因此，從角色和技能組合的角度來看，需求與我們在德克薩斯州或南加州看到的略有不同。我可以告訴你，到目前為止，我們在 HUGO 上看到的最搶手的職位是員工會計，這不會讓任何人感到驚訝，尤其是考慮到市場需要這種技能。

But in New York, for example, we've seen a lot more around fund accounting, and that's just function of financial services and the kind of client we're targeting there. I think there's still -- in terms of the learnings, Marc, it's really about tracking usage on the platform, like when are the inflection points where someone might drop out of engagement and trying to understand why so we draw them back in. You'll see at the start of the calendar year, we'll be launching some new landing pages that are designed to engage with more information so we don't lose people at different stages.

但是在紐約，例如，我們看到了更多關於基金會計的事情，這只是金融服務的功能和我們在那裡的目標客戶類型。我認為仍然 - 就學習而言，Marc，它實際上是關於跟踪平台上的使用情況，比如什麼時候有人可能退出參與的轉折點並試圖理解為什麼我們會吸引他們回來。你'我們會在日曆年開始時看到，我們將推出一些新的登陸頁面，旨在吸引更多信息，這樣我們就不會在不同階段失去人們。

The learnings we've gotten from clients has been really favorable, I would say, very efficient. They like the functionality. They love the 24/7 access to be able to move forward on their project engagement. We've gotten some feedback on the scheduling component of the app. I mean, it's all sorts of elements of the experience that we're continuing to improve.

我們從客戶那裡學到的東西非常有利，我想說，非常有效。他們喜歡這個功能。他們喜歡 24/7 全天候訪問，以便能夠推進他們的項目參與。我們收到了一些關於應用程序的日程安排組件的反饋。我的意思是，這是我們不斷改進的各種體驗元素。

That's really helpful. And then I wanted to go back to the prepared remarks, one of the things you made mention in the prepared remarks is around having a seat at the table with your customers. And I was sort of curious as to whether or not the feedback and some of the areas of concern have changed much maybe over -- maybe since the beginning of the year or over the last 6 months or so as far as -- we can understand obviously the delays of and longer cycles and the like. But I was sort of curious as to whether things like the pace of returning to office in person or anything like that has made them make adjustments to maybe where they thought things would be maybe a few months ago?

這真的很有幫助。然後我想回到準備好的發言，你在準備好的發言中提到的一件事是與你的客戶坐在一起。我有點好奇反饋和一些關注的領域是否發生了很大的變化——也許自今年年初或過去 6 個月左右——我們可以理解顯然是延遲和更長的周期等。但我有點好奇，比如親自回到辦公室的速度之類的事情是否讓他們做出了調整，也許幾個月前他們認為事情會是這樣？

Marc, I don't -- first of all, to talk about seat at the table, which Kate alluded to in her remarks, I mean, I would say that what that has meant for us in the places where we have strong relationships across our client base and they know us, we're actually being able to ladder up for opportunities to be able to do more in the consulting role. And I talked a little bit about that. In terms of return to work and some of those types of things, I don't think that's really impacted the demand environment for us and hasn't necessarily been delays. There are certain industries in certain geographies where that's been more prevalent and we had to react to that.

馬克，我不——首先，談論餐桌上的座位，凱特在她的發言中提到了這一點，我的意思是，我想說的是，在我們之間有著牢固關係的地方，這對我們意味著什麼我們的客戶群和他們了解我們，我們實際上能夠抓住機會在諮詢角色中做更多的事情。我談了一點。就重返工作崗位和其中一些類型的事情而言，我認為這並沒有真正影響到我們的需求環境，也不一定是延誤。在某些地區的某些行業，這種情況更為普遍，我們不得不對此做出反應。

But the kind of the big overwhelming factor that has led to delays and those types of things or positives has come just from the general uncertainty in the macro and it's had less to do with some of the specific things around things that came out of COVID.

但是導致延誤的那種巨大的壓倒性因素以及那些類型的事情或積極因素僅來自宏觀的普遍不確定性，而與 COVID 產生的一些具體事情無關。

Okay. And then last one for me, and I know this is a little squishy, so I apologize in advance. We've seen various thoughts around the workforce and changes in the workforce over the last couple of years. Have you seen much in the way of changing demographics or changing age ranges? Or is there anything meaningfully different in the -- in sort of bigger-picture demo type of use with your client pool today than it was maybe a couple of years ago?

好的。最後一個給我，我知道這有點糊，所以我提前道歉。在過去的幾年裡，我們看到了關於勞動力和勞動力變化的各種想法。您在改變人口統計數據或改變年齡範圍方面看到過很多嗎？或者與幾年前相比，今天與您的客戶群使用的更大圖片演示類型有什麼有意義的不同嗎？

I would say, let me just offer something that's different from, say, the last recession in 2008. We're seeing, I think, a younger generation of talent wanting to work in this project-based or agile model, whereas 10 or 15 years ago, there was too much uncertainty or viewed as too much uncertainty or in security in the model. And I think that's completely changed today.

我想說，讓我提供一些與 2008 年上一次經濟衰退不同的東西。我認為，我們看到年輕一代的人才希望在這種基於項目或敏捷的模式中工作，而 10 或 15多年前，模型中存在太多不確定性或被視為太多不確定性或安全性。我認為今天已經完全改變了。

I mean I shared a little bit of a survey result from MBO Partner in my prepared remarks. But we're really seeing more of the rise of hard time working and also people who want to work in a more flexible way, and that's across all demographics. Marc, there was a recent article, I think it was just this week in -- or maybe Friday in the Wall Street Journal about the rise of part-time work at all levels of professional talent, and that matches our experience.

我的意思是，我在準備好的發言中分享了 MBO Partner 的一些調查結果。但我們確實看到越來越多的人開始努力工作，也看到人們希望以更靈活的方式工作，這在所有人口統計數據中都是如此。馬克，最近有一篇文章，我想就在本週——或者可能是周五的華爾街日報上，關於各級專業人才兼職工作的興起，這與我們的經驗相符。

I'm showing no further questions at this time. Let's turn the call back over to Kate Duchene for any closing remarks.

我現在沒有進一步的問題。讓我們將電話轉回 Kate Duchene 以聽取任何結束語。

Thank you, operator. Thank you, everyone, for joining us today. We'll look forward to giving you a further update on the business at the close of Q4. Thank you very much.

謝謝你，運營商。謝謝大家今天加入我們。我們期待在第四季度末為您提供有關業務的進一步更新。非常感謝。

Thank you. Ladies and gentlemen, this does conclude today's conference. Thank you all for participating. You may now disconnect. Have a great day.

謝謝。女士們，先生們，今天的會議到此結束。謝謝大家的參與。您現在可以斷開連接。祝你有美好的一天。