Resources Connection Inc (RGP) 2025 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Resources Connection, Inc. conference call. (Operator Instructions) As a reminder, this conference call is being recorded. At this time, I would like to remind everyone that management will be commenting on results for the third quarter ended February 22, 2025. They will also refer to certain non-GAAP financial measures.

女士們、先生們，下午好，歡迎參加 Resources Connection, Inc. 電話會議。（操作員指示）提醒一下，本次電話會議正在錄音。此時，我想提醒大家，管理階層將對截至 2025 年 2 月 22 日的第三季業績發表評論。他們也將參考某些非公認會計準則財務指標。

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 filed today with the SEC.

今天發布的新聞稿中包含了這些指標與最具可比性的 GAAP 財務指標的解釋和調整。今天的新聞稿可以在 RGP 網站的投資者關係部分查看，並於今天向美國證券交易委員會 (SEC) 提交。

Also, during this call, management may make forward-looking statements regarding plans, initiatives and strategies and the 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 25, 2024, for a discussion of risks, uncertainties and other factors that may cause the company's business, results of operation and financial condition to differ materially from what is expressed or implied by forward-looking statements made during this call.

此外，在本次電話會議中，管理階層可能會就公司計畫、措施和策略以及預期的財務表現做出前瞻性陳述。這些陳述僅為預測，與實際事件或結果可能有重大差異。請參閱 RGP 截至 2024 年 5 月 25 日的 10-K 表報告中的「風險因素」部分，以了解有關可能導致公司業務、經營業績和財務狀況與本次電話會議中前瞻性陳述所表達或暗示的內容存在重大差異的風險、不確定性和其他因素的討論。

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

現在我將電話轉給 RGP 的執行長 Kate Duchene。

Thank you, operator. Thank you all for joining us today. In Q3, our results were in line or better than expected. Our total revenue was $129.4 million, consistent with expectations and reflecting macroeconomic uncertainty, client budget constraints and slower project ramp-up. Our gross margin and SG&A both beat the favorable end of our outlook ranges.

謝謝您，接線生。感謝大家今天的參與。第三季度，我們的業績符合或優於預期。我們的總收入為 1.294 億美元，與預期一致，反映了宏觀經濟的不確定性、客戶預算限制和專案進展放緩。我們的毛利率和銷售、一般及行政開支都超出了我們預期的範圍。

Post-election, the operating environment has remained sluggish this calendar year given increased uncertainty and decreased consumer confidence in the United States. The news is not all about uncertainty, however. We saw strengthening across our practices in Europe, Japan and the Philippines in Q3. Europe improved with several key performance indicators, including bill rate increases, sizable pipeline expansion and the return of $1 billion-plus project pursuits. Our Consulting segment also achieved material double-digit bill rate improvement in Q3.

大選後，由於美國不確定性增加且消費者信心下降，今年的經營環境仍低迷。然而，新聞中並不全是不確定性。第三季度，我們在歐洲、日本和菲律賓的業務得到了加強。歐洲在幾個關鍵績效指標方面有所改善，包括費率上漲、管道大規模擴張以及 10 億美元以上項目的回歸。我們的諮詢部門在第三季也實現了實質的兩位數的帳單率提升。

The size of enterprise-wide engagements increased on average by more than 20%, and we improved our win ratio. We doubled the number of 1 million-plus engagements we won this quarter over a year ago, and our pipeline of opportunities at the $5 million-plus level has grown significantly, reflecting a quality improvement in pipeline over last year.

企業範圍內的專案規模平均增加了20%以上，我們的成功率也提高了。與去年同期相比，本季我們贏得的 100 萬美元以上的交易數量增加了一倍，而且 500 萬美元以上的交易機會也大幅增加，反映出交易機會品質較去年同期有所提升。

We did not see this size and scope of opportunity a year ago. These indicators show we're moving in the right direction, but we need to increase volume as we execute our diversified services strategy. In this environment, many clients are moving work to the international stage, and we are strategically located to support them.

一年前我們還沒有看到如此規模和範圍的機會。這些指標顯示我們正朝著正確的方向前進，但在執行多元化服務策略時，我們需要增加數量。在這種環境下，許多客戶正在將工作推向國際舞台，而我們則處於戰略位置來為他們提供支援。

Here, too, we're focused on increasing scale in our key markets in Southeast Asia and India. Our Outsourced Services business, Countsy, delivered solid results in the third quarter, and our overall client retention in our top 100 accounts remains solid.

在這裡，我們也專注於擴大東南亞和印度主要市場的規模。我們的外包服務業務 Countsy 在第三季度取得了穩健的業績，我們前 100 個帳戶的整體客戶保留率仍然保持穩健。

During this relatively slower stretch for our industry, we've accelerated RGP's evolution by focusing on three key initiatives that position us for market share expansion. First, we have enhanced client offerings. We've built a diversified services platform to meet clients where they need us, whether they require both strategy and execution support or they need our execution specialists working with in-house teams, we deliver both with excellence.

在我們這個產業相對較慢的時期，我們透過專注於三項關鍵措施來加速 RGP 的發展，為擴大市場佔有率做好準備。首先，我們增強了客戶服務。我們建立了多元化的服務平台，滿足客戶的需求，無論他們同時需要策略和執行支持，還是需要我們的執行專家與內部團隊合作，我們都能出色地滿足客戶的需求。

Our flexible engagement models are proving an important competitive differentiator as clients seek agility, price to value and blended delivery teams. It used to be that the traditional consulting firms owned domain expertise and would deploy an army of consultants using their leveraged model.

當客戶尋求敏捷性、性價比和混合交付團隊時，我們靈活的參與模式正在成為重要的競爭優勢。傳統的顧問公司過去擁有領域專業知識，並會利用其槓桿模式部署顧問團隊。

Times have changed, and we believe in RGP's favor. Clients now know and own their strategy and need high-quality, flexible value-based execution support, a niche that RGP created and which we uniquely provide. We've also focused our services catalog across our diversified offerings in areas where the market has the highest demand, utilizing our core CFO relationships to expand into new buying centers like the Chief Technology Officer, Chief HR Officer, Chief Procurement Officer and senior supply chain leaders.

時代已經改變，我們相信 RGP 是有利的。客戶現在了解並擁有自己的策略，需要高品質、靈活的基於價值的執行支持，這是 RGP 創造的利基市場，也是我們獨特提供的服務。我們也將我們的服務目錄集中在市場需求最高的領域的多元化產品中，利用我們與核心財務長的關係擴展到新的採購中心，例如首席技術長、首席人力資源長、首席採購官和高級供應鏈領導。

Our core pillars of service capability are CFO services, digital technology and data and strategy and operational performance. Most of the services are currently delivered to the office of the CFO across these pillars, but the natural extensions are in risk and compliance, technology modernization, supply chain optimization and employee experience.

我們的服務能力核心支柱是CFO服務、數位技術和數據以及策略和營運績效。目前，大多數服務都是透過這些支柱交付給財務長辦公室的，但自然的延伸是風險和合規、技術現代化、供應鏈優化和員工體驗。

We are leveraging this strategy of CFO-plus 1 to enhance growth and client value creation. As Bhadresh will share, we've experienced positive momentum with cloud migration support for SAP and Oracle finance transformations as well as ServiceNow optimization to improve user experience around automation of process workflows in IT, HR and risk and compliance. While industry-wide M&A and IPO readiness initiatives have been slow to pick up this calendar year, we have the right capability to jump in and respond quickly when this event cycle turns.

我們正在利用 CFO-plus 1 這項策略來促進成長和創造客戶價值。正如 Bhadresh 所分享的，我們在 SAP 和 Oracle 財務轉型的雲端遷移支援以及 ServiceNow 最佳化方面取得了積極的進展，從而改善了使用者在 IT、HR、風險和合規流程工作流程自動化方面的體驗。儘管今年全行業的併購和 IPO 準備舉措進展緩慢，但當這一事件週期轉變時，我們有能力介入並迅速做出反應。

For example, the Reference Point acquisition allows us to accelerate and broaden what we can do for clients around M&A integration, operating model assessments and design, data architecture and governance and application modernization to help clients optimize enterprise performance and enable the adoption of AI.

例如，收購 Reference Point 使我們能夠加速和拓寬我們在併購整合、營運模式評估和設計、資料架構和治理以及應用程式現代化方面為客戶所能做的事情，以幫助客戶優化企業績效並實現人工智慧的採用。

We have worked diligently to ensure we have the sales readiness and delivery skills to capitalize as the business environment improves, client budgets strengthen and decision-making accelerates. Last week, we closed a significant project and finance optimization by combining skills and building a delivery team of management consulting and agile execution specialists who know the client's industry.

隨著商業環境的改善、客戶預算的加強和決策的加速，我們一直努力確保我們擁有銷售準備和交付技能。上週，我們透過結合技能並建立一支由了解客戶行業的管理諮詢和敏捷執行專家組成的交付團隊，完成了一個重要的專案和財務優化。

Second, we have improved operational efficiency. We've lowered our cost structure, and you can see the progress we've made. We're driving cost savings with optimized headcount, reduced real estate spend and lower discretionary spending. We've lowered our run rate SG&A by 8% since the first fiscal quarter, and we'll continue to drive efficiencies across the enterprise through technology, AI and automation. Jenn will offer additional commentary on our successful efforts around operating efficiency.

二是提升了營運效率。我們降低了成本結構，您可以看到我們所取得的進步。我們透過優化員工人數、減少房地產支出和降低可自由支配的開支來節約成本。自第一財季以來，我們已將銷售、一般及行政開支的運作率降低了 8%，並且我們將繼續透過技術、人工智慧和自動化來提高整個企業的效率。Jenn 將對我們在營運效率方面的成功做出進一步的評論。

Third, we made targeted investments to enhance value creation over the long term. We've made most of the investment needed to replace our technology infrastructure for the North America business. These enhancements allow us to implement AI and automation to our advantage in both client service and talent recruitment and management. This modern technology will allow us to streamline process and accelerate opportunity through our pipeline.

第三，我們進行有針對性的投資，以提高長期價值創造。我們已經完成了更換北美業務技術基礎設施所需的大部分投資。這些增強功能使我們能夠在客戶服務以及人才招募和管理方面充分利用人工智慧和自動化。這項現代技術將使我們能夠簡化流程並透過我們的管道加速機會。

We have also enhanced our sales and delivery teams to ensure we have the right approach for both Consulting and On-Demand solutioning when the buying environment improves. We're proud of the sales team we have and the relationships they nurture in our exceptional client base, and we're adding a new archetype to the team to drive growth. We had some go-to-market team attrition in Q3, much of it planned, which allows us to accelerate certain enhancements.

我們還加強了銷售和交付團隊，以確保在購買環境改善時，我們能夠採用正確的方法提供諮詢和按需解決方案。我們為擁有的銷售團隊以及他們與我們卓越的客戶群所建立的關係感到自豪，並且我們正在為團隊添加新的原型來推動成長。我們的行銷團隊在第三季有一些人員流失，其中大部分都是計畫內的，這使我們能夠加速某些改進。

Specifically, we've added consultative sales expertise, especially in the digital and technology areas and strategy and operations to support growth. For example, a new joiner in our New York practice was a senior finance executive at a top 10 financial services firm, who was a key buyer of CFO services across the professional services continuum.

具體來說，我們增加了諮詢銷售專業知識，特別是在數位和技術領域以及策略和營運方面，以支援成長。例如，我們紐約業務的新成員是一家十大金融服務公司的高級財務主管，他是整個專業服務領域中財務長服務的主要買家。

Another recent senior hire in our New York office brings solution sales experience from a top-tier digital consultancy. According to Kennedy Research, the two highest growth opportunities for Consulting in the next three years will be strategy and operations and digital transformation. Benefiting from our inherent competitive advantages, including strength of CFO relationships, diversified engagement models, agility, price to value and cross-border collaboration, we are improving our positioning to earn this work as clients increasingly seek value and seamless global delivery, areas in which we excel.

我們紐約辦事處最近招募的另一位高級職員擁有頂級數位顧問公司的解決方案銷售經驗。根據肯尼迪研究公司 (Kennedy Research) 的調查，未來三年諮詢行業兩個最高的成長機會將是策略與營運以及數位轉型。由於我們固有的競爭優勢，包括強大的財務長關係、多樣化的參與模式、敏捷性、價格價值和跨境合作，我們正在提升自己的定位以贏得這項工作，因為客戶越來越追求價值和無縫的全球交付，而這些正是我們擅長的領域。

Finally, I want to highlight the progress we've made this fiscal year in building more delivery capability in India. Our global delivery centers there are supporting work for the CFO's office across risk and compliance, finance and accounting and digital development services. This work creates greater stickiness as evidenced by our solid client retention rate, and we're focused on building volume across our Fortune 500 clients. We just closed work in India for a long-time New York-based financial services firm who has previously only engaged with RGP in the US. This close also enabled us to expand our buying centers in this client.

最後，我想強調我們在本財年在印度建立更多交付能力方面所取得的進展。我們的全球交付中心為財務長辦公室提供風險與合規、財務與會計以及數位開發服務的支援工作。這項工作創造了更大的黏性，這從我們穩定的客戶保留率可以看出，並且我們專注於在財富 500 強客戶中建立數量。我們剛剛為一家總部位於紐約的老牌金融服務公司在印度完成了工作，該公司之前只與美國的 RGP 合作。此次交易也使我們能夠擴大在該客戶的採購中心。

We now have strong delivery capability in Mumbai, Bangalore, Pune and Hyderabad. I'll close with this reminder. While we always act with urgency, our pristine balance sheet allows us to take a long-term view of value creation. We're busy laying groundwork for growth and improving profitability when the client buying environment improves.

我們目前在孟買、班加羅爾、浦那和海得拉巴擁有強大的配送能力。最後，我想提醒一下大家。雖然我們總是緊急採取行動，但我們完美的資產負債表使我們能夠以長遠的眼光看待價值創造。當客戶購買環境改善時，我們正忙於為成長奠定基礎並提高獲利能力。

We understand that the near-term outlook across professional services in the US is uncertain and disruptive, but we're resolute in nurturing our key relationships, standing at the ready and focusing our services so clients know to call us with utmost confidence. Most importantly, we are committed to delivering long-term value for our shareholders, driven by our team's unwavering strategic focus.

我們了解，美國專業服務的短期前景不確定且充滿混亂，但我們堅決培育我們的關鍵關係，隨時準備著，專注於我們的服務，以便客戶可以滿懷信心地致電我們。最重要的是，在團隊堅定不移的策略重點的推動下，我們致力於為股東創造長期價值。

I'll now turn the call over to Bhadresh for detail on operational trends and key performance indicators.

現在，我將把電話轉給 Bhadresh，以了解有關營運趨勢和關鍵績效指標的詳細資訊。

Thank you, Kate and good afternoon, everyone. I'm excited to share our quarterly update and highlight the progress we continue to make in executing our strategy. As Kate mentioned, our industry is evolving and recent geopolitical events and actions have only served to create greater uncertainty in the marketplace.

謝謝你，凱特，大家下午好。我很高興與大家分享我們的季度更新，並強調我們在執行策略方面不斷取得的進展。正如凱特所說，我們的行業正在發生變化，最近的地緣政治事件和行動只會為市場帶來更大的不確定性。

As a result, our position as a challenger brand is becoming increasingly relevant in reshaping professional services, breaking away from traditional engagement and operating models and offering clients a differentiated experience. Our strategy is designed to empower clients by offering flexibility in how they engage with us throughout their transformation and operational journey.

因此，我們作為挑戰者品牌的地位在重塑專業服務、擺脫傳統的參與和營運模式以及為客戶提供差異化體驗方面變得越來越重要。我們的策略旨在透過在整個轉型和營運過程中為客戶提供與我們合作的靈活性來增強客戶的能力。

Removing the rigid structures traditional firms impose, we offer our clients the ability to access experts, solution teams and core finance and HR outsourcing services in a way that best meets their needs, a more client-centric flexible approach our competitors struggle to provide.

我們打破傳統公司強加的僵化結構，為客戶提供最符合其需求的專家、解決方案團隊以及核心財務和人力資源外包服務，這是一種以客戶為中心的靈活方式，而我們的競爭對手很難提供這種靈活方式。

Our revised approach of offering On-Demand, Consulting, and Outsourced Services under a single umbrella is setting the stage for our business to be more resilient and less cyclical. Our Q3 results show our top line revenue performance tracking in line with expectations while delivering better-than-expected gross margin and bottom-line results.

我們修改了提供隨選服務、諮詢服務和外包服務的策略，為我們的業務更具彈性、更少週期性奠定了基礎。我們的第三季業績顯示，我們的營收表現符合預期，同時毛利率和淨利表現優於預期。

While overall pipeline softened, we're seeing a positive shift in our win ratio and pipeline of new opportunities moving us up the value chain with our clients, and we know these opportunities take longer to move through the sales cycle, especially given the current instability of the US market.

雖然整體管道有所疲軟，但我們看到我們的成功率和新機會管道發生了積極的變化，使我們與客戶一起在價值鏈中上升，我們知道這些機會需要更長的時間才能完成銷售週期，特別是考慮到目前美國市場的不穩定。

We are gaining traction with solutions that remain central to our clients' transformation agendas. These areas of high client priority, both within the CFO's office and CFO-plus 1, align closely with our core capabilities, cross-sell strategy and market demand. At the same time, we remain focused on maximizing our On-Demand professional staffing services in the US, where we benefit from long-term solid client relationships, particularly in the office of the CFO.

我們不斷獲得越來越廣泛的關注，而這些解決方案對於客戶的轉型議程仍然至關重要。這些客戶高度重視的領域，無論是在 CFO 辦公室或 CFO-plus 1 內，都與我們的核心能力、交叉銷售策略和市場需求密切相關。同時，我們仍然專注於最大限度地發揮我們在美國按需專業人員配置服務的優勢，我們從長期穩固的客戶關係中受益，尤其是首席財務官辦公室的客戶關係。

Once the market dynamics improve, we are well positioned as we continue refining our operating model and optimizing our sales infrastructure to drive efficiency, break down silos and better align our solutions with revenue generation. This is leading to larger contract sizes with a stronger economic profile, driven by our strategic shift in the business.

一旦市場動態改善，我們將處於有利地位，繼續改進我們的營運模式和優化我們的銷售基礎設施，以提高效率，打破孤島，並使我們的解決方案更好地與創收相結合。在我們業務策略轉變的推動下，合約規模將更大，經濟狀況也將更強勁。

Now I'll provide an update on our quarterly performance by segment. Our Consulting segment performance was slightly down from prior year quarter, but continues to validate our strategy as we are seeing steady bill rate improvements, 13% higher than same quarter last year and a 4% improvement sequentially. It is worth noting that given recent shifts in the policy landscape, our federal government work represents only 1.5% of our overall revenue.

現在，我將按部門提供我們季度業績的最新情況。我們的顧問部門業績較去年同期略有下降，但仍驗證了我們的策略，因為我們看到帳單利率穩步改善，比去年同期高出 13%，比上一季提高 4%。值得注意的是，鑑於最近政策環境的變化，我們的聯邦政府工作僅占我們總收入的 1.5%。

Most importantly, we have nearly doubled the number of $1 million-plus opportunities won and doubled the number of opportunities greater than $1 million in our pipeline compared to same quarter last year. We are actively pursuing multiple opportunities each exceeding $5 million in value, driven by the expanded capabilities from our acquisition of Reference Point and the increased digital scale gained through CloudGo, now fully integrated into our Consulting segment.

最重要的是，與去年同期相比，我們贏得的 100 萬美元以上的商機數量幾乎增加了一倍，我們通路中超過 100 萬美元的商機數量也增加了一倍。我們正在積極尋求多個價值超過 500 萬美元的機會，這些機會得益於我們收購 Reference Point 後擴展的能力以及透過 CloudGo 獲得的數位規模的擴大，現已完全融入我們的諮詢部門。

This growth was driven by our expansion into new buying centers within existing clients and higher-level conversations around client transformation initiatives. Some notable wins include the Australian and Singapore government, a Fortune 250 integrated health care delivery system, a Fortune 200 life sciences company, a large medical device company and a Fortune 500 bank.

這一增長得益於我們在現有客戶中向新採購中心的擴張以及圍繞客戶轉型計劃的更高層次的對話。一些引人注目的客戶包括澳洲和新加坡政府、一家財富 250 強綜合醫療保健系統、一家財富 200 強生命科學公司、一家大型醫療設備公司和一家財富 500 強銀行。

Notable large pipeline opportunities include a Fortune 50 financial services company, preferred supplier status for a Fortune 50 financial services client and a large federal agency. I want to emphasize, this time last year, we were not engaged in opportunities of this magnitude in our client base.

值得注意的大型機會包括財富 50 強金融服務公司、財富 50 強金融服務客戶的優先供應商地位以及大型聯邦機構。我想強調的是，去年這個時候，我們還沒有在客戶群中抓住如此規模的機會。

As our strategy continues to show results, we remain focused on building scale through our transformation, recognizing it will take time to expand to drive growth. As I mentioned earlier and as is typical with solution selling, these opportunities take time to generate and materialize, especially given our current environment and ongoing uncertainty.

隨著我們的策略不斷取得成果，我們仍然專注於透過轉型來擴大規模，並認識到擴張以推動成長需要時間。正如我之前提到的，並且正如解決方案銷售的典型情況一樣，這些機會需要時間來產生和實現，特別是考慮到我們當前的環境和持續的不確定性。

Turning to On-Demand. While revenue was down from the prior year, we're seeing early traction from our cross-selling initiatives, benefiting from our long-term strong client relationships in the office of the CFO and our CFO-plus 1 strategy. While we continue to add net new logos, we're also intensely focused on keeping our current experts engaged with clients, making extension management a key priority for our revenue and talent teams, which did increase by 5.4% sequentially.

轉向按需。雖然收入較上年有所下降，但我們的交叉銷售計劃已初見成效，這得益於我們與首席財務官辦公室長期保持的牢固的客戶關係以及我們的“CFO-plus 1”戰略。在我們繼續增加新標誌的同時，我們也高度重視保持現有專家與客戶的互動，使擴展管理成為我們收入和人才團隊的首要任務，這確實比上一季增長了 5.4%。

RGP is poised as an attractive option for organizations needing On-Demand specialized support without the need for long-term commitments or additional hires, especially as companies continue to tighten their belts in the current economic landscape and strive to do more with less.

對於需要按需專業支援而又不需要長期承諾或額外招聘的組織來說，RGP 是一個頗具吸引力的選擇，尤其是在當前經濟形勢下，企業繼續勒緊褲腰帶，努力用更少的投入做更多的事情。

While revenue backlog in our Europe and Asia segment was higher sequentially, we did see a slowdown in growth compared to the previous quarter. Europe was impacted by a larger-than-usual consultant holiday, while APAC growth was hindered by ongoing macroeconomic challenges in our China business. However, we remain cautiously optimistic about accelerating growth as project extensions improved for the first time in three quarters.

儘管我們歐洲和亞洲分部的營收積壓比上一季有所增加，但與上一季相比，成長確實有所放緩。歐洲受到了比平常更長的顧問假期的影響，而亞太地區的成長則受到中國業務持續的宏觀經濟挑戰的阻礙。不過，由於專案延期三個季度以來首次改善，我們對加速成長仍持謹慎樂觀的態度。

This trend should provide greater stability and a foundation for future growth, particularly in the United Kingdom, Philippines and Japan, where we are seeing stronger momentum compared to other regions. Our Outsourced Services segment continues to achieve top line revenue growth, both prior year quarter and sequential quarter, driven by our efforts to acquire new venture-backed clients and expanding our focus on spinouts.

這一趨勢應能為未來的成長提供更大的穩定性和基礎，特別是在英國、菲律賓和日本，與其他地區相比，我們看到了更強勁的發展動能。我們的外包服務部門持續實現營收成長，無論是去年同期還是環比成長，這得益於我們努力爭取新的創投支持的客戶以及擴大對分拆的關注。

In summary, since launching our refreshed brand positioning and service segmentation, client feedback has been overwhelmingly positive. They recognize our capabilities and appreciate the flexibility our various engagement models offer, reinforcing their desire to partner with us. While we all understand the uncertainties in our current environment, we remain excited by the progress we're making in executing our strategy and remaining focused on delivering value to our clients.

總而言之，自從我們推出全新的品牌定位和服務細分以來，客戶回饋非常積極。他們認可我們的能力並欣賞我們各種合作模式所提供的靈活性，這增強了他們與我們合作的願望。雖然我們都了解當前環境的不確定性，但我們對執行策略和繼續專注於為客戶提供價值所取得的進展仍然感到興奮。

I'll now hand the call over to Jenn.

我現在將電話交給 Jenn。

Thank you, Bhadresh and good afternoon, everyone. Our third quarter performance was in line or better than our expectations. Revenue of $129.4 million was in the middle of our outlook range, while both gross margin and run rate SG&A expense were better than the favorable end of our outlook range. We delivered adjusted EBITDA of $1.7 million or a 1.3% adjusted EBITDA margin, reflecting the holiday seasonality during the third fiscal quarter. The year-over-year revenue gap continued to moderate in the third quarter to 11% on a same-day constant currency basis, which is an improvement over last quarter's 13%.

謝謝你，Bhadresh，大家下午好。我們第三季的業績符合或優於我們的預期。1.294 億美元的營收處於我們預期範圍的中間，而毛利率和運行率銷售、一般及行政開支均優於我們預期範圍的有利值。我們實現的調整後 EBITDA 為 170 萬美元，或調整後 EBITDA 利潤率為 1.3%，反映了第三財季的假期季節性。以當日固定匯率計算，第三季年收入差距持續縮小至 11%，較上一季的 13% 有所改善。

We are encouraged to see continued stabilization in our Europe and Asia Pac segment and year-over-year growth in our Outsourced Services segment. Our On-Demand and Consulting segment, which are both predominantly US-based, were impacted by the increased level of uncertainty in the macro environment, driven by a number of domestic government policy changes.

我們很高興看到歐洲和亞太地區業務持續保持穩定，外包服務業務較去年同期成長。我們的按需和諮詢部門主要位於美國，受到國內政府一系列政策變化導致的宏觀環境不確定性增加的影響。

Gross margin for the quarter was 35.1%, again, better than expected and off by 190 basis points from the prior year quarter, reflecting unique holiday timing, including Thanksgiving, which is typically in Q2 as well as the midweek timing of Christmas and New Year's Day. We're pleased that the paid bill ratio for the third quarter strengthened as a result of a notable improvement in the enterprise average bill rate.

本季的毛利率為 35.1%，再次優於預期，比去年同期下降了 190 個基點，反映了特殊的節日時間，包括通常在第二季度的感恩節以及聖誕節和元旦的周中時間。我們很高興看到，由於企業平均帳單率顯著提高，第三季的已付帳單比率有所提高。

Despite the competitive pricing environment across the globe, we improved enterprise-wide average bill rate to $124 constant currency from $119 a year ago, led by our Consulting segment with a 13% increase over the prior year quarter as well as a 4% sequential increase over the second quarter.

儘管全球定價環境競爭激烈，我們仍將全企業平均帳單利率從一年前的 119 美元提高至 124 美元（按固定匯率計算），其中諮詢部門的帳單利率最高，較去年同期增長 13%，較第二季度環比增長 4%。

Average bill rate in the Europe and Asia Pac segment also increased by 5% over the prior year and sequentially on a constant currency basis. The improvements within these segments are the result of our efforts to drive value-based pricing and are reflective of a favorable mix shift we are starting to achieve in winning higher value and larger Consulting projects.

以固定匯率計算，歐洲和亞太地區的平均票據利率也比去年同期和上一季增加了 5%。這些領域的改進是我們努力推動基於價值的定價的結果，並反映了我們在贏得更高價值和更大的諮詢項目時開始實現的有利組合轉變。

The addition of Reference Point's project portfolio and joint projects involving Reference Point solution capabilities also boosted average bill rate. In our On-Demand and Outsourced Services segment, average bill rates were both down slightly from the prior year quarter. Pricing in these segments remains competitive, which requires us to balance between rate and volume to optimize revenue as well as margin.

Reference Point 專案組合的加入以及涉及 Reference Point 解決方案能力的聯合專案也提高了平均帳單率。在我們的按需和外包服務領域，平均帳單費率均較去年同期略有下降。這些領域的定價仍然具有競爭力，這要求我們在價格和數量之間取得平衡，以優化收入和利潤。

As we strive to drive higher bill rates in all business segments and geographic regions, revenue mix will continue to be reflected in our total company average bill rate, especially as we increasingly leverage our global delivery center for offshore delivery teams.

隨著我們努力在所有業務部門和地理區域提高帳單費率，收入組合將繼續反映在我們公司的整體平均帳單費率中，特別是當我們越來越多地利用我們的全球交付中心來為離岸交付團隊提供服務時。

Importantly, while the use of offshore teams will typically blend down our average bill rate, we expect it will enable us to enhance gross margin and to compete more effectively.

重要的是，雖然使用離岸團隊通常會降低我們的平均帳單費率，但我們預計它將使我們能夠提高毛利率並更有效地競爭。

Now on to SG&A. Our enterprise run rate SG&A expense for the quarter was $43.7 million, an improvement from $45.2 million a year ago, primarily driven by lower management compensation expense as a result of actions taken in December to reduce headcount as well as an elevated level of attrition in our sales force during the quarter. While we fight to improve top line in a persistently choppy environment, we are working diligently to pull the levers we can control to protect profitability in the near term, but ultimately to create a lighter cost structure for the future.

現在討論銷售、一般及行政費用。本季度，我們的企業運行率銷售、一般及行政開支為 4,370 萬美元，較去年同期的 4,520 萬美元有所改善，這主要由於 12 月份採取的裁員措施導致管理層薪酬開支降低，以及本季度銷售人員的流失率上升。在我們努力在持續波動的環境中提高營業收入的同時，我們也在努力利用我們能夠控制的槓桿來保護短期內的獲利能力，但最終是為了未來創造一個更輕的成本結構。

We've been consistently implementing initiatives to reduce fixed costs in areas such as real estate and to increase operating efficiency through our newly implemented technology platform.

我們一直在不斷採取措施降低房地產等領域的固定成本，並透過我們新實施的技術平台提高營運效率。

Next, I'll provide some additional color on segment performance. All year-over-year percentage comparisons for revenue are adjusted for business days and currency impact. And as a reminder, segment adjusted EBITDA excludes certain share corporate costs. Revenue for our Consulting segment was $52.6 million, a decline of 2% from the prior year.

接下來，我將提供一些有關細分市場表現的額外資訊。所有收入同比百分比比較均根據工作日和貨幣影響進行了調整。需要提醒的是，分部調整後的 EBITDA 不包括某些公司股份成本。我們諮詢部門的收入為 5,260 萬美元，比上年下降 2%。

Third quarter segment adjusted EBITDA was $5.9 million or an 11% margin compared to $8.8 million or a 16% margin in the prior year quarter. Revenue for our On-Demand segment was $47.1 million, a decline of 24% versus prior year. Segment adjusted EBITDA was $2.6 million or a margin of 5% compared to $7.3 million or an 11% margin in the prior year quarter.

第三季分部調整後 EBITDA 為 590 萬美元，利潤率為 11%，去年同期為 880 萬美元，利潤率為 16%。我們的按需部門收入為 4,710 萬美元，較上年下降 24%。分部調整後 EBITDA 為 260 萬美元，利潤率為 5%，去年同期為 730 萬美元，利潤率為 11%。

Adjusted EBITDA margins in both segments reflect negative operating leverage on the softer top line. While our On-Demand business has been more impacted by the macroeconomic conditions, we're pleased with the role it has played in supporting the talent needs of our Consulting segment. Our strategy is to continue driving opportunities for such blended delivery teams to mitigate utilization exposure.

兩個部門的調整後 EBITDA 利潤率均反映出營業收入下降導致的負經營槓桿。雖然我們的按需業務受到宏觀經濟條件的影響較大，但我們對其在支援諮詢部門的人才需求方面所扮演的角色感到滿意。我們的策略是繼續為此類混合交付團隊創造機會，以減輕利用率風險。

Turning to our Europe and Asia Pac segment. Revenue was $18.6 million, a decline of 2%. Segment adjusted EBITDA was $0.8 million or a 5% margin compared to $1.3 million and a 7% margin in the prior year quarter. Finally, our Outsourced Services segment revenue was $9.4 million, similar to the prior year quarter, but with an implied growth of 3% on an adjusted basis.

轉向我們的歐洲和亞太地區部門。收入為 1860 萬美元，下降 2%。分部調整後 EBITDA 為 80 萬美元，利潤率為 5%，去年同期為 130 萬美元，利潤率為 7%。最後，我們的外包服務部門營收為 940 萬美元，與去年同期相似，但經調整後隱含成長率為 3%。

Segment adjusted EBITDA was $1.5 million or a 16% margin, which is approximately the same as the prior year quarter. I also want to note we recorded a noncash goodwill impairment charge of $42 million in the third quarter in response to the continued sluggish demand environment in both our On-Demand and Consulting segments. $12.4 million was recorded for our On-Demand segment and $29.6 million was recorded for our Consulting segment.

分部調整後的 EBITDA 為 150 萬美元，利潤率為 16%，與去年同期大致相同。我還想指出的是，為了應對按需和諮詢部門持續低迷的需求環境，我們在第三季記錄了 4,200 萬美元的非現金商譽減損費用。我們的按需業務部門的收入為 1,240 萬美元，諮詢業務部門的收入為 2,960 萬美元。

Turning to liquidity. Our balance sheet remains strong with $73 million of cash and cash equivalents and zero outstanding debt. We distributed $4.6 million worth of dividends in the quarter and repurchased $3 million worth of shares at an average price of $8.46 per share.

轉向流動性。我們的資產負債表依然強勁，擁有 7,300 萬美元的現金和現金等價物，且未償債務為零。我們在本季派發了價值 460 萬美元的股息，並以每股平均 8.46 美元的價格回購了價值 300 萬美元的股票。

With our cash on hand, combined with available borrowing capacity under our credit facility, we will continue to take a balanced approach to capital allocation between investing in the business to drive growth and returning cash to shareholders through dividends and opportunistic share repurchases under our share repurchase program with $79 million remaining at the end of the quarter.

憑藉我們手頭上的現金，加上我們信貸安排下的可用借貸能力，我們將繼續採取平衡的資本配置方式，在投資業務以推動增長與通過股息和機會性股票回購向股東返還現金之間進行投資，根據我們的股票回購計劃，截至本季度末剩餘 7,900 萬美元。

I'll now close with our fourth quarter outlook. As mentioned earlier, recent government policies in the US have introduced additional uncertainty as our clients, sort through the potential impact on their own business as tariffs and DOGE actions unfold.

我現在將以第四季的展望作為結束。如前所述，美國政府最近的政策帶來了額外的不確定性，因為我們的客戶需要隨著關稅和 DOGE 行動的發展來分析對其自身業務的潛在影響。

While we're encouraged to see improving quality in the pipeline with larger deal opportunities, we experienced lighter volume of activities starting in the second half of Q3 and expect delays in client decision-making to continue in the near term.

雖然我們很高興看到隨著交易機會的增多，交易品質不斷提高，但從第三季下半段開始，我們的活動量開始減少，並且預計客戶決策的延遲在短期內仍將持續。

As a result, early fourth quarter weekly revenue run rate has shown some deceleration from the third quarter. Thus, our outlook calls for revenue of $132 million to $137 million. On the gross margin front, we anticipate maintaining the improved pay bill ratio we achieved through Q3. With the holiday season now behind us, we expect a stronger and a more normalized gross margin in the range of 36% to 37%.

因此，第四季初的每週收入運行率較第三季放緩。因此，我們預計營收為 1.32 億美元至 1.37 億美元。在毛利率方面，我們預計將維持第三季實現的改善的薪資帳單比率。隨著假期已經過去，我們預計毛利率將更加強勁且更加正常，範圍在 36% 至 37% 之間。

For SG&A expense, we expect our fourth quarter run rate SG&A to be in a range of $45 million to $47 million, reflecting a 14-week quarter as opposed to the typical 13-weeks. Non-run rate and noncash expenses for the fourth quarter will be around $2 million to $3 million, consisting mostly of noncash stock compensation expense.

對於銷售、一般及行政費用，我們預計第四季度的銷售、一般及行政費用運行率將在 4500 萬美元至 4700 萬美元之間，反映的是 14 週的季度，而不是典型的 13 週。第四季的非營業費用和非現金支出將在 200 萬至 300 萬美元左右，主要包括非現金股票薪資支出。

In closing, during the current operating environment, we've continued to refine our strategy and improve our execution to drive long-term value creation. With improving economic clarity over time, we will be well positioned for a return to growth.

最後，在當前的營運環境下，我們不斷完善我們的策略並提高我們的執行力，以推動長期價值創造。隨著經濟清晰度逐漸提高，我們將為恢復成長做好準備。

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

我們的準備好的演講到此結束，現在我們將開始問答環節。

(Operator Instructions) Joe Gomes, Noble Capital.

(操作員指示)Noble Capital 的 Joe Gomes。

So I wanted to start out, we talk about the, for the clients, these are high priority transformational activities. But obviously, we're seeing the ongoing delays and push out of start date. How high priority are these? How long, I guess, can the clients go or hold off without starting some of these activities?

所以我想先討論一下，對客戶來說，這些都是高優先順序的轉型活動。但顯然，我們看到了持續的拖延和開始日期的延遲。這些的優先順序有多高？我猜測，客戶可以堅持多久而不開始這些活動？

Yes. So, I wish I had an answer for you across the Board, Joe. I do believe it's one of the reasons Europe has started to bounce back because the pent-up demand has started to open up. And so, we're seeing some of those projects move forward, whether it's M&A activity or technology transformation like moves to a global payroll system or a cloud migration on ERP. That's one of the reasons you're hitting it that Europe has started to improve.

是的。所以，喬，我希望我能為你提供全面的答案。我確實相信這是歐洲開始反彈的原因之一，因為被壓抑的需求已經開始被釋放。因此，我們看到其中一些項目正在推進，無論是併購活動還是技術轉型，例如轉向全球工資系統或 ERP 雲端遷移。這就是您所說的歐洲已經開始進步的原因之一。

The US is a little bit different story. I mean, it's liberation today. We all hear of what's happening with the tariffs. I think people are hesitant to make firm expensive decisions in an uncertain landscape. And that's what we saw happen in the second half of Q3, which guides us to be careful as we think about what's happening in Q4.

美國的情況略有不同。我的意思是，今天是解放日。我們都聽說了關稅的情況。我認為人們在不確定的情況下不願意做出堅定而昂貴的決定。這就是我們在第三季後半段看到的情況，這指導我們在思考第四季發生的情況時要謹慎。

I mean if you ask any professional services, folks, everybody thought M&A would really open up in the first half of calendar '25. And in fact, the opposite has happened. You can look at a graph of what's happening in the S&P or the Russell and see how negative sentiment has become, and that does cause more conservative decision-making.

我的意思是，如果你問任何專業服務，每個人都認為併購將在25年上半年真正開放。而事實上，情況卻恰恰相反。你可以看看標準普爾或羅素指數的圖表，看看負面情緒變得多麼嚴重，這確實會導致更保守的決策。

As we look at our reports on opportunities opened in the pipe by week, as we've shared, Consulting is really growing, but the time to close is longer and budget constraints are always noted. When we lose work, generally, it's been because of budget or delayed decision-making. And that's the reality of the US marketplace right now.

正如我們所分享的，當我們查看每週通路開放機會報告時，諮詢業務確實在成長，但完成的時間更長，預算限制也始終存在。當我們失去工作時，通常是因為預算或決策延遲。這就是目前美國市場的現實。

Okay. And given where the marketplace is, I mean, how is the retention of the consultants? Or what are you doing to retain the consultants given the challenging times in getting work?

好的。考慮到市場的現狀，顧問的保留如何？或者，在工作面臨困難的情況下，您正在採取什麼措施來留住顧問？

Yes. So that's obviously one of the most important parts of our business is the care and feeding of great consultants. We are working very hard to get consultants in front of prior clients. We are working hard at the right pricing in our On-Demand business. You see the progress we made in our Consulting bill rates and financial metrics so that we can make some of those investment decisions we need to, to get consultants busy.

是的。因此，顯然我們業務中最重要的部分之一就是對優秀顧問的照顧和培養。我們正在努力讓顧問接觸到之前的客戶。我們正在努力為我們的按需業務制定合理的定價。您可以看到我們在諮詢費率和財務指標方面取得的進展，這樣我們就可以做出一些必要的投資決策，讓顧問們忙碌起來。

And we stay close to them. Even if they roll off our active roster, we stay engaged through alumni activity. Consultants really feel, I think, the care and feeding of our talent team, and that matters and will matter more as the environment turns more positive.

我們也與他們保持密切聯繫。即使他們從我們的現役名單上消失，我們仍會透過校友活動保持參與。我認為，顧問確實感受到了我們人才團隊的關心和培養，這一點很重要，而且隨著環境變得更加積極，這一點將變得更加重要。

Okay. One more for me, if I may. You talked again about looking at ways for efficiencies. How much more is there, I guess, available that could be cut before you're starting to really cut into muscle in the business?

好的。如果可以的話，我再說一句。您再次談到尋找提高效率的方法。我猜，在真正開始削減業務規模之前，還有多少可以削減的呢？

Joe, this is Jenn. I can answer that question. Yes, we're looking across the Board within the company, different areas to continue to reduce our fixed costs. And it's not just reducing fixed costs, it's also leveraging the technology that we just implemented in order to become more efficient. And we have seen some efficiencies from the technology, but I think that's going to take a little bit of time.

喬，這是詹。我可以回答這個問題。是的，我們正在從公司內部各個不同領域的角度來考慮，繼續降低固定成本。這不僅可以降低固定成本，還可以利用我們剛剛實施的技術來提高效率。我們已經看到了該技術的一些效率，但我認為這還需要一點時間。

And different areas that we're looking at, Kate mentioned to in our remarks, Real estate is another area that we're going to continue to look at to optimize. And then discretionary spending, we are getting tighter and tighter every quarter so that we can control our costs.

凱特在我們的評論中提到，我們正在關注的不同領域，房地產是我們將繼續專注於優化的另一個領域。然後是可自由支配的開支，我們每個季度都變得越來越緊縮，以便控制我們的成本。

I think for the near term, right, we are doing everything we can to protect our profitability, but we're also obviously need to manage the business for the long term as well. So, as we think about investing in key areas of the business, there's going to be a lot of puts and takes so that we can retain all of the cost savings that we've already generated so far.

我認為就短期而言，我們正在竭盡全力保護我們的獲利能力，但顯然我們也需要長期業務管理。因此，當我們考慮投資業務的關鍵領域時，我們會做出大量的投入和收穫，以便我們能夠保留迄今為止已經產生的所有成本節約。

Mark Marcon, Baird.

馬克馬康，貝爾德。

Obviously, it's a tough environment, and there is a lot of uncertainty. Can you describe what you've been seeing since the second half of the third quarter? Just in terms of- are the clients characterizing potential projects as things that they have to push back? How much have you seen in terms of cancellations and it sounds like you're not seeing early terminations of existing projects. So, I want to make sure I heard that correctly as well.

顯然，這是一個艱難的環境，存在著許多不確定性。您能描述一下自第三季下半段以來您所看到的情況嗎？就客戶而言，他們是否將潛在項目描述為他們必須推遲的事情？您看到取消的情況有多少？聽起來您沒有看到現有項目提前終止的情況。所以，我想確保我聽得也正確。

Yes, we aren't, Mark. In fact, extensions are growing. And it's one of the reasons that Europe has really strengthened, too, because not only are they adding projects, but they're extending. And that's always been a little bit of a balance for them, was on extensions, and we're seeing those extensions pull through, which is a good thing.

是的，我們不是，馬克。事實上，擴展正在不斷成長。這也是歐洲真正增強的原因之一，因為他們不僅在增加項目，而且還在擴展。對他們來說，這始終是一種小小的平衡，在於擴展，我們看到這些擴展已經完成，這是一件好事。

So, it's not so much project cancellations, although it happens occasionally because of budget approval, but we're just seeing more delay. And I'll give you a real-world example. We were just chosen on a significant RFP to be a preferred provider. Now, that doesn't guarantee us a level of revenue, but it sure guarantees us that we're one of the first to get the opportunity and to grow this account, which is a significant financial services account. We thought that RFP would be decided early in our Q3. And instead, we just learned the outcome in Q4.

因此，這並不是專案取消的問題，儘管偶爾也會因為預算批准而發生這種情況，但我們只是看到了更多的延遲。我給你舉一個現實世界的例子。我們剛剛在一份重要的 RFP 中被選為首選供應商。現在，這並不能保證我們獲得一定的收入，但它確實可以保證我們是第一批獲得機會並發展這個帳戶的人之一，這是一個重要的金融服務帳戶。我們認為 RFP 將在第三季初決定。相反，我們只是在第四季才知道結果。

We've had a proposal at a major technology company, one of the top five, that we thought would be decided in late October, and we still have not gotten a decision. So, it's just delaying. It's not cancellations but delay. And I think it is really tied to what's happening in government and what will the fallout be. Once we know what the fallout is, then people start making decisions.

我們收到了一家大型科技公司的提案，該公司是全球五大科技公司之一，我們原以為該提案將在 10 月底做出決定，但現在仍未決定。所以，這只是拖延而已。這不是取消，而是延遲。我認為這與政府內部發生的事情及其後果密切相關。一旦我們知道了後果，人們就會開始做出決定。

Can you describe a little bit about how the magnitude of uncertainty that your clients are expressing, how pronounced or how much more pronounced has that become in recent weeks? I'm talking about the last two to three relative to, towards the back end of the third quarter.

您能否稍微描述一下您的客戶所表達的不確定性的程度，以及最近幾週這種不確定性有多明顯或變得有多明顯？我談論的是相對於第三季末的最後兩到三個月。

I'd say the back end of the third quarter and the most recent weeks have been probably the most disrupted. Bhadresh might want to share another point of view. But now that we have the announcements from today, I think that will provide some clarity. It's going to create a more expensive business environment for all as I understand he announced that there's virtually a 10% tariff on almost everything, and they go up to 30%. We all read the articles about how many cars were purchased over the weekend in anticipation of today.

我想說第三季末和最近幾週可能是最混亂的。Bhadresh 可能想分享另一種觀點。但現在我們已經有了今天的公告，我認為這將提供一些清晰度。據我所知，這將為所有國家創造一個更昂貴的商業環境，他宣布幾乎所有商品的關稅都為 10%，最高可達 30%。我們都讀過關於週末購買了多少輛汽車的文章，以備今天之需。

So, people will make plans once they know that the dust has settled a bit. And we're all following. I saw a headline that says, has DOGE's time come to an end. We need some of that to settle down and move forward because I do believe there's pent-up opportunity. We felt this way coming out of COVID, too, that people delayed things for so long that you can't delay any longer.

因此，一旦知道事情已經平息，人們就會制定計劃。我們都在關注。我看到一個標題說，DOGE的時代是否已經終結了。我們需要一些這樣的因素來穩定下來並繼續前進，因為我確實相信其中存在著潛在的機會。我們在疫情爆發後也有過這樣的感覺，人們把事情拖延太久了，你不能再拖了。

But we're in this period of being squeezed. So, as we said in our prepared remarks, we've done everything we can to, and we will continue to do. The only thing we haven't done fully is our cost savings, and we continue to look at that hard, whether it's looking at personnel offshore too, but we have positioned with respect to client offerings what the marketplace needs in recovery. And I think we've done some really good work internally.

但我們正處於一個受到擠壓的時期。因此，正如我們在準備好的發言中所說的那樣，我們已經盡了一切努力，並將繼續這樣做。我們唯一沒有完全完成的事情就是節省成本，我們將繼續努力研究這個問題，無論是否也在尋找海外人員，但我們已經根據客戶產品定位了市場復甦所需的產品。我認為我們在內部已經做了一些非常好的工作。

Great. And then can you just talk a little bit about what's embedded with regards to the revenue guide for the fourth quarter, just in terms of the split between On-Demand versus Consulting? And I want to make sure I heard things right. Did you mention that the fourth quarter is a 14-week quarter? And if so, what is the implication with regards to on a same-day basis, what the revenue decline would end up being for the fourth quarter?

偉大的。然後，您能否稍微談談第四季度收入指南中包含的內容，即按需業務與諮詢業務的劃分？我想確保我所聽到的是正確的。您是否提到第四季度是一個 14 週的季度？如果是這樣，那麼對於同日而言，這意味著第四季度的收入下降幅度是多少？

Yes. Mark, so the guide for revenue for the fourth quarter, we're expecting Europe and Asia Pac as well as Outsourced Services segment to stay relatively stable. And I don't think that they're going to create much variability there. The variability is really going to come from North America within the On-Demand as well as Consulting segment. And the Consulting segment is really- as you heard, we're working on larger deals.

是的。馬克，對於第四季度的收入指導，我們預計歐洲和亞太地區以及外包服務部門將保持相對穩定。我不認為他們會在那裡造成太大的變化。這種變化實際上來自於北美的按需和諮詢領域。正如您所聽到的，諮詢部門實際上正在進行更大的交易。

And so how fast we can close those deals as well as how fast we can push the project to start is going to kind of determine, right, where on the range we fall. Q4 has 69 days. So, there's four more business days compared to last year. And so, on a year-over-year basis, you're looking at a decline of comparing Q4 to Q4, you look at a decline of about 14%.

因此，我們能夠多快完成這些交易以及我們能夠多快推動專案啟動，這將決定我們所處的範圍。Q4有69天。因此，與去年相比，增加了四個工作天。因此，與去年同期相比，您會看到與第四季度相比，下降幅度約為 14%。

Great. That's helpful. And then lastly, just when we take a look at the cash flow from operations for the first nine months, can you just describe, what were some of the unusual cash outflows so that we can normalize that a little bit? And while your balance sheet is quite strong and pristine, I'm wondering, are there any thoughts with regards to the sustainability of the dividend? The dividend yield is obviously quite high. And so, I am getting questions with regards to whether or not that might potentially change.

偉大的。這很有幫助。最後，當我們查看前九個月的經營現金流時，您能否描述一下，有哪些不尋常的現金流出，以便我們可以稍微使其正常化？雖然您的資產負債表非常強勁和完美，但我想知道，您對股息的可持續性有何看法？股息殖利率顯然相當高。所以，我的疑問是，這種情況是否可能改變。

Yes. Mark, as you know, we've been going through our technology transformation. So, the last few years, couple of years, our cash flow really has been impacted by the amount that we're spending on the implementation. Starting in fiscal now that the transformation is behind us, starting in fiscal '26, you should see a pickup of about anywhere between $5 million to $7 million in operating cash flow.

是的。馬克，如你所知，我們一直在經歷技術轉型。所以，過去幾年，我們的現金流確實受到了實施支出的影響。現在轉型已經結束，從26財年開始，你應該會看到營運現金流增加約500萬至700萬美元。

The point about dividends, well, dividend is set by the Board each quarter. It is our intention to drive down the payout ratio with a higher stock price over time as we begin to benefit from the strategic plan and especially as the market condition improves. We know our investors have come to appreciate the consistent dividend.

關於股息，股息是由董事會每季設定的。隨著我們開始從策略計畫中受益，特別是隨著市場狀況的改善，我們打算隨著時間的推移，透過提高股價來降低派息率。我們知道我們的投資者已經開始欣賞持續的股息。

As I mentioned in the prepared remarks, we are taking a measured and balanced approach towards capital allocation. We want to consider what's best for the business long term. So that includes investing in organic growth or dividend and share repurchases.

正如我在準備好的發言中提到的，我們對資本配置採取了一種審慎、平衡的方法。我們要考慮什麼對企業的長遠發展最有利。因此，這包括投資有機成長或股息和股票回購。

Great. And then just going back to the cash flow and maybe margins from a sustainable basis. Obviously, it's an unusual time period. Things have changed. And I mean, things have been rough for multiple years.

偉大的。然後再回到現金流和可持續基礎上的利潤率。顯然，這是一個不尋常的時期。事情已經改變了。我的意思是，這些年來情況一直很艱難。

When you think about like if we ended up having some stability in revenue, potentially a little bit of growth, where would you target EBITDA margins and operating margins? And what sort of free cash flow conversion would you hope to be able to achieve?

如果您考慮一下，如果我們最終的收入保持穩定，可能還有一點成長，那麼您將把 EBITDA 利潤率和營業利潤率設定在哪裡？您希望實現什麼樣的自由現金流轉換？

Yes. I think as the broader environment normalizes, with the full year guidance now, we're going to be in the mid to high $500 million. As the broader environment normalizes, as we get back into the $600 million, even get into $700 million, I do think that given our lower cost structure now, we should be able to get back into kind of where we used to be, which is high single digit. Now if we go above $700 million, and we can get into the double digit. And I do expect that our cost structure over time, especially as I mentioned, with the tech investment, we should be able to realize more efficiency in how we operate.

是的。我認為，隨著大環境的正常化，按照現在的全年預期，我們的收入將達到 5 億美元的中高水準。隨著大環境的正常化，當我們的營收回到 6 億美元甚至 7 億美元時，我確實認為，鑑於我們現在較低的成本結構，我們應該能夠回到以前的水平，即高個位數。現在，如果我們超過 7 億美元，我們就可以進入兩位數。我確實希望，隨著時間的推移，我們的成本結構，特別是正如我所提到的，透過技術投資，我們應該能夠實現更高的營運效率。

And I'm sorry, what was your other question on the cash flow? Yes, Free cash flow conversion. Look, our historical trend has been around 75% to 85% of free cash flow conversion from EBITDA. So, as we recover and improve, I expect that, that obviously, that requires working capital that may be a little bit lower, but I'm not concerned that as things normalize, get back to that level of free cash flow conversion.

抱歉，您關於現金流的另一個問題是什麼？是的，自由現金流轉換。從歷史趨勢來看，我們的自由現金流轉換率約為 75% 到 85% 來自 EBITDA。因此，隨著我們的復甦和改善，我預計，這顯然需要的營運資金可能會稍微低一些，但我並不擔心，隨著事態正常化，自由現金流轉換會回到那個水平。

Andrew Steinerman, JPMorgan.

摩根大通的安德魯‧施泰納曼。

I heard your answer before about the 14% decline in the fourth quarter revenue guide, and I think that was on a dollar basis adjusted for days. I wasn't sure if that was at the midpoint or not. My question is a little bit different. I would like to know in the midpoint of the fourth quarter revenue guide, what's the organic constant currency revenue growth on a same-day basis? I ask because I know the reference point acquisition hasn't anniversaried yet.

我之前聽過您關於第四季度收入預期下降 14% 的回答，我認為這是根據幾天後的美元基礎進行調整的。我不確定那是否位於中點。我的問題有點不同。我想知道第四季營收指南的中點，當日有機固定貨幣收入成長是多少？我之所以會問這個問題，是因為我知道參考點取得還沒有周年紀念日。

Yes. At the midpoint, excluding reference point, Q4 will be down 17% year-over-year.

是的。中間值不包括參考點，第四季將年減 17%。

And that's constant currency?

這就是恆定貨幣嗎？

Correct. I mean, look, currency it's moving around a lot, Andrew, and especially, right, given all the tariffs and it's really hard to kind of predict currency. So yes, I mean, I expect that Q4's currency movement is probably going to be neutral. So, this is on an organic same-day basis.

正確的。我的意思是，你看，貨幣波動很大，安德魯，尤其是考慮到所有的關稅，貨幣的走勢真的很難預測。是的，我的意思是，我預計第四季的貨幣走勢可能會保持中性。因此，這是以當天有機數據為基礎的。

Okay. Great. And let me just ask one more question. I haven't heard much about HUGO in a while. I wanted to get a short update there. Like is there any revenue traction that's moving the total revenue needle for the company? Or anything that talks about kind of the volume of work that's going on assignment through HUGO?

好的。偉大的。我再問一個問題。我好久沒有聽到太多關於 HUGO 的消息了。我想在那裡得到一個簡短的更新。例如，是否有任何收入因素可以推動公司的總收入成長？或者有什麼內容談論過透過 HUGO 進行的工作量？

Yes. So, we've seen a pickup of HUGO revenue this year. We've really folded that offering into our On-Demand segment, so we won't be reporting it separately. I'll tell you the experience we've learned, Andrew, is that it's been adopted on the talent side, and it's really helped us learn some new behaviors on how to operate faster on the On-Demand talent side. We have not seen clients yet adopt a self-serve environment.

是的。因此，我們看到今年 HUGO 的收入有所回升。我們實際上已將該產品納入我們的按需部分，因此我們不會單獨報告它。安德魯，我會告訴你我們學到的經驗是，它已經在人才方面被採用，並且它確實幫助我們學習了一些關於如何在按需人才方面更快地運作的新行為。我們尚未看到客戶採用自助服務環境。

So, I don't know if that's, -- I think part of it is because they're so used to our white glove service at RGP, but we have not seen that adopt yet. So, in turn, we've taken some cost out of the HUGO business so that we can make money, and we are driving new opportunities in our client base. So, this is an offering we're really pushing in our existing client base for the kind of roles that are, as we've said before, accretive to us, a level or two down, and we are driving growth there.

所以，我不知道是不是——我認為部分原因是他們已經習慣了 RGP 的白手套服務，但我們還沒有看到他們採用這種服務。因此，我們從 HUGO 業務中削減了一些成本，以便能夠賺錢，並且我們正在為我們的客戶群帶來新的機會。所以，這是我們在現有客戶群中真正推行的一項服務，針對那些像我們之前說過的可以為我們帶來增值服務的職位，低一個或兩個級別，我們正在那裡推動增長。

I would now like to turn the call back over to Kate Duchene for any closing remarks.

現在，我想將電話轉回給凱特杜謝內 (Kate Duchene)，請她做最後發言。

Well, I thank you all for listening in and supporting RGP. We look forward to updating you on our progress after Q4. Thanks very much, everyone.

好吧，感謝大家的收聽和支持 RGP。我們期待在第四季後向您通報我們的進展。非常感謝大家。

Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.

謝謝。會議到此結束。感謝您的參與。您現在可以斷開連線。