Kevin Fischbeck: All right. Great. Thanks.
Operator: One moment for our next question. Our next question comes from Trevor Romeo of William Blair. Trevor, your line is now open.
Trevor Romeo: Hi, good afternoon. Thanks so much for taking the questions. First one for me is, I appreciate the commentary you just provided about Q3 kind of being the lowest revenue quarter of the year. I was wondering, based on the order activity that you’re seeing today, if you could kind of parse that out into your expectations for sequential bill rate and volume trends throughout the rest of the year?
Jeff Knudson: Sure, Trevor. This is Jeff. So, if we just take a step back, I would say that our outlook on balance for physician leadership solutions and for TWS is in line with our prior view. And then within Nurse and Allied, the nursing business followed the trend line we anticipated, but the industry-wide demand ended up lower than we expected. And so that’s what now leads us to believe that Q3 will be the lowest revenue quarter of the year for the Nurse and Allied segment, approximately 10% lower than Q2, and you can think about that pretty evenly split between bill rate and volume. And then we would expect, as the winter needs orders roll in into the fourth quarter time frame that we would see a sequential increase in volume in the fourth quarter within Nurse and Allied and bill rates would generally be flattish over Q3 levels.
Trevor Romeo: Okay. Great. That’s really helpful. Thanks. And then just for the follow-up, I had a question on kind of boomerang nurses, who had left hospitals during the pandemic only to come back to permanent roles. There was an article as on the news recently highlighting that dynamic. Just kind of curious to hear what you’re seeing and hearing from your clients on that topic, given that the travel markets cooled a bit and the economic environment might be driving some nurses back to permanent work.
Landry Seedig: Yes. Trevor, this is Landry. So it’s pretty hard to measure whenever the nurses are going from a travel assignment to perm float pool the per diem, et cetera. We, of course, have seen similar reports that you’ve probably seen where hospital hiring is up a little bit, but the attrition numbers are still pretty high. So still a lot of churn and turnover that we’re seeing. Maybe I’ll just touch on what we’re seeing on our own supply and interest in work in temporary contracts. So that flexibility that travel provides these professionals is still very attractive to them. Our new applicants in the first quarter, they were lower than Q1 of prior year, but a lot of that is because Q1 of prior year was the peak in demand and the peak in bill rates.
And then our new applicants, Honeynet applicants, they have been flat for four consecutive quarters now, and they’re well above our 2019 levels. In fact, they’re about two times what they were before the pandemic. So that interest is definitely there. And so there’s really two pieces to that equation. One is the interest. They really like the flexibility of working contracts. And then the second thing is all of the investments that we’ve been making in our pipeline. So our mobile website, AMN Passport, all those are paying off. It’s allowing clinicians to be able to find us a lot easier to be able to apply for us easier and faster. Specific AMN Passport, it continues to be a success story for us. It is the number of users that are on the platform continues to grow and has a really, really strong engagement.
You actually went to the App Store. You can see that it has a star rating of 4.7 out of 5. So really, really high and then it has over 15,000 reviews, which is well above any other competitive back-out in the marketplace.
Trevor Romeo: All right. That’s great to hear. Thanks very much.
Operator: One moment for our next question. Our next question comes from Brian Tanquilut of Jefferies. Your line is now open.
Brian Tanquilut: Hey. Good afternoon, guys. Maybe I’ll follow-up on the last question about Q3. As you think about the business going forward, do you think it’s right to think that this is basically the bottom. I know you’ve seen some inflection or stabilization in the last few weeks on demand. So maybe just curious how you’re viewing demand and bill rate trend as we look into next year?
Jeff Knudson: Yes, Brian. So each of the last four weeks, we have seen travel nurse demand increase slightly, and we would expect that to continue through the June time period. And so — as we look out into Q3 and Q4, with the $4 billion of revenue for the full year that would imply roughly just under $1.9 billion in the back half at just above 15% adjusted EBITDA margins, and we do think annualizing that back half is a good base to think about the business into 2024 and beyond.
Brian Tanquilut: Okay. That makes sense. And then maybe shifting gears a little bit the locums business and the Allied side of the business, I mean, anything we should be thinking about in terms of where, first, what you’re seeing and then maybe any factors that could drive some acceleration in growth in demand for those non-nursing locums business?
James Taylor: Thank you, Brian, for the question. This is James, and we’ll speak to the locum side of the marketplace, locum is a good news story for us. You look at their demand is still 50% higher in 2019 in pre-COVID levels. When you think about our business, our business revenue growth is high single digits year-over-year, our fuel rates are up quarter-over-quarter. Our book spreads are up quarter-over-quarter and also year-over-year. From a Q2 standpoint, we still think that we expect to have very solid growth going into next quarter and also more profitable growth with inside of the Locums marketplace. The thing that we’re looking at is we’re very laser-focused on the demand that’s out there, but we want to be profitable have profitable growth, not just any growth. So we’re laser-focused on that, and you’re able to see that in some of the results that Jeff read out earlier.
Landry Seedig: Hey, Brian, it’s Landry. I’ll hit on Allied. So I guess, first off, on the demand, demand in Allied really strong. It’s more than double what it was before the pandemic. So we’re really excited about that. There is a little bit of a mix change in there where, I’d say, a slight headwind on volume because you’ve got the specialties that are tied more towards COVID that are coming down and kind of hurting the year-over-year comp a little bit. So those would be things like phlebotomy, respiratory therapists and med tech — but then it’s all offset by this really good strength that’s tied to therapy, which is usually PTOT and speeds as well as imaging. So, really exciting about the demand. The team is performing really well up against that demand, certainly an area that looks good as we address through the rest of the year.
And then I won’t go into detail unless there’s another question on it, but I would also call out our international businesses are performing really well as well as our school business.
Cary Grace: And the overall comment that I would make, which I think your question really highlights is one of the core positioning for us with our clients is how we help them holistically across all of their clinician needs. And I think when you hear the comments that both James and Landry talked about, I think it’s very reflective of the strong partnerships that we’ve built with them and really being able to help them serve their patients and continue to grow their businesses and their organizations.
Brian Tanquilut: Awesome. Thank you, guys.
