Kforce Inc. (NASDAQ:KFRC) Q4 2023 Earnings Call Transcript

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So it’s typically how we handle this point in the cycle, start ramping up on the sales side to prepare for the other side, balance the recruitment side. And then as we start to see job orders start to spike up and those types of things, we can quickly ramp up. We have a great internal recruitment function. Our leaders are locked and loaded. We know we can turn that down very quickly.

Tobey Sommer: I was wondering if you could give some color from an industry vertical standpoint for your customers which ones are sort of relatively strong or relatively weak and include in there, if you could, financial services which I know tends to kind of be maybe a little bit more volatile than some other industry verticals.

David Kelly: Yes. I guess, Tobey, I would start out by saying as a barometer to strength in any particular industry, it’s tough to gauge, obviously, from our sequential success quarter-to-quarter because a lot of the drivers are specific to things that we do at a client level. But having said that, I made commentary, we actually have had success sequentially in financial services, right? We had a couple of nice projects there. In technology services as well, energy, manufacturing alternatively was a little weaker for us. Retail was also a good industry vertical for us in the fourth quarter. So it’s — I mean, I think if I go back and look quarter-to-quarter, it seems to me that there are different industries each quarter that are better or worse. So I guess my start of the comment with caution is where it end.

Tobey Sommer: Okay. And last one for me. Any discernible difference in the cadence of demand exiting the fourth quarter and then here in the early part of the first quarter, between kind of the staffing business and managed services, anything you’d call out as better or worse in one of those areas?

David Kelly: Yes. Just obviously, just to reiterate, obviously, we’ve seen a nice uptick in the last couple of weeks generally. When I look at the contributors to our business, we’ve continued to have, relatively speaking, more success in this period in the cycle in our managed services business. So that is a, relatively speaking, bright spot and we’ve talked about in an integrated fashion, making sure that we can meet the needs of our clients across the spectrum, they’re increasingly looking to us for that. I mean I don’t know that I would say that as a calendar thing, that is a general trend that we’re seeing, though. So — and that much has changed, obviously since we last talked.

Operator: I would now like to turn the call over to Joe Liberatore for closing remarks.

Joe Liberatore: Well, thank you for your interest in and support of Kforce. I’d like to say thank you to every Kforcer for your efforts, to our consultants and our clients for your trust in Kforce and partnering with you and allowing us the privilege of serving you. We look forward to talking with you again after the first quarter of 2024. Have a great evening.

Operator: This concludes today’s call. You may now disconnect.

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