Earning Date, Transcript Summary & Report

Job Stack App Launch: We have successfully rolled out our new proprietary Job Stack app across our branch network and national account base, well ahead of our year-end goal.

Digital Transformation Progress: We have made significant progress during the quarter accelerating our digital transformation, expanding our presence in attractive end markets, and simplifying our organizational structure to better leverage our inherent strengths as we look to capture the growth opportunities ahead.

Cost Reduction and Synergies: We reduced our operating costs by 17% for the quarter, and beyond that, we are already seeing benefits from our efforts in the form of increased synergies and cross-selling as we eliminate silos and enhance our focus on our core specialties.

Customer Relationship Expansion: We have maintained a strong connection with the customer while serving fewer locations, and as the customer reopened and launched new facilities, we were there to support their needs, expanding to the new sites and deepening our relationship.

New Client Acquisition: We have secured four new logos in our People Ready Renewable business for those large-scale utility solar projects in the quarter, which will bring revenue in 2025.

Quarterly Revenue Decline: Revenue for the quarter was $382 million, down 19% compared to the prior year as uncertainty and client caution continued to weigh on the staffing industry, leading to reduced business spend and curbed hiring trends.

Market Confidence Hesitancy: Customers are looking for market confidence to grow before making significant adjustments to their workforce strategies, indicating a hesitancy in client volumes and new business trends with engagements starting at subdued levels following an elongated decision process.

Revenue Decline and Margin Drop: People Ready revenue decreased 24%, which includes 2 points of decline from the sale of our on-demand business in Canada, and segment profit margin was down 200 basis points.

Revenue Decline and Margin Drop: People Scout revenue decreased 31% and segment profit margin was down 490 basis points, driven by lower client volumes across most verticals and geographic areas.

Quarterly Net Loss Report: We reported a net loss of $8 million this quarter, which included $1 million of income tax expense primarily associated with our foreign operations and essentially zero income tax benefit on U.S. operations due to the valuation allowance in effect on our U.S. deferred tax assets.