Unidentified Participant: Okay, that’s great. Thank you very much for all that. On your €“ you said that tech and project revenue are the weak areas. I was wondering if you could break out €“ is that still 20% of revenue, and can you break that out by tech versus project, and give a little bit of thought on whether you think tech is anywhere near, near the bottom or you think it has maybe some more weakness to come or if you think project is just sporadic by its nature or is it being reined in more because of economic things.
Jeff Eberwein : Yes, all good questions, and let me just zoom out a little bit and say our original business, our bread and butter business is enterprise RPO. And that is the growth, that’s the highest value thing we do. Its typically three year contracts with medium to larger size companies. It’s usually Fortune 500 companies. Most of our clients are big publically traded companies that you’ve heard of. We have three other businesses we’re in that we think all helped funnel business to enterprise RPO. So one of the contracting work we do, that is historically largely just kind of a side service we offer for our enterprise RPO clients. But there have been a few examples where we’ve led with contracting to build a relationship with the hope that it leads to enterprise RPO and our biggest new business win in Q1 was exactly that.
It was a contracting client that became an enterprise RPO client. So we’re very, very happy about that. In the tech sector, the most of the work we do in the tech sector came from the Coit acquisition we did in late 2020 and that’s a different business model. That’s more recruiter on-demand, it’s more from pre IPO companies. It can be turned on, turned off fairly quickly and we might have a contract in place like an MSA type of contract. But it can be ramped up or ramped down and a little bit somewhere for project work. So we’re hoping the whole reason to do recruit on-demand in the tax sector and to do project work is to convert that to enterprise RPO. So I just wanted to kind of throw that out there. And in terms of the numbers, I think coming into 2022 a year ago, tech sector was really, really strong.
Project work was very strong coming out of COVID. Companies needed as much help as they could possibly get. Enterprise RPO takes a long time to put in place, it takes a long time to study and kind of show people what it can do. And there was a big need for project work. And so coming out of COVID, we saw a tremendous amount of strength in tech, a tremendous amount of strength in project work, and probably at the peak a year ago, it was probably 30% of our total, and by the end of the year it was probably down to 15% of our total. And I would split that half tech half project. So right now today, enterprise RPO is probably 80% to 85% of what we do, and it’s very, very steady and is growing, and the big, big areas of weakness have been in that the tech sector and the project work.
Unidentified Participant: That’s very helpful, thank you. As a question, I’ve been hearing that there may be some issues with private equity in general. I just didn’t know if €“ can you speak to whether you’re seeing any weakness or any talk of possible future concerns for your premier customers that are backed by private equity.
Jeff Eberwein : Yeah, short version is we don’t see that. We don’t have that many clients that are backed by a private equity firm. Most of our enterprise RPO clients like I mentioned are big publicly traded companies. We do have one client interestingly enough, and this is just an antidote that’s owned by a PE firm. Its one of the big global PE firms, and it’s a European based company, and they just acquired a publicly traded company, and so we’re going to get a lot more business because of that. So I would say the one client that comes to mind that is PE backed is doing incredibly well and just made a huge acquisition, so. And if there is a lot of weakness with PE owned companies, we wouldn’t really see that, because we’re not really exposed to that, except for maybe in the tech sector where we do have exposure to PE and VC owned companies.
And like I’ve been talking about, that’s kind of balancing along at a really low level, and we’ve already seen the big decline, and that was in Q3 and Q4.
Unidentified Participant: Okay, that’s great. I’m almost done here. Just the last, the last one then thank you is, do you see €“ do you think this is a good time to still be considering acquisitions or do you €“ are you more weary because of economic uncertainty? And secondly, can you talk about how your India acquisition that you did is doing?
