Resources Connection, Inc. (NASDAQ:RGP) Q1 2024 Earnings Call Transcript

Jenn Ryu: Mark, this is Jenn. I can take the first question and maybe Kate can comment on the second one. Our consultant count at the end of the quarter did decrease, as you can imagine, due to the demand environment. We do have – for our bench consultants, we are doing everything we can to deploy them and to keep them engaged. We’re putting in a number of measures to share available consultants with our entire sales team and talent team globally and also proactively approach clients to see if there’s a need there. I think our consultant count, as you know, fluctuates based on our demand environment, and that’s also part of our overall variable cost model. That is unique to our business.

Kate Duchene: Yes. So I’ll jump in. I think, Marc, correct me because you got a little soft. So I hope I heard all of your question if I didn’t just please ask it again. I think you asked about organizational structure and how we’re continuing to build the business going forward. As we’ve talked about, we really have three components kind of our business currently. We have our agile model, which is the core of RGP, meaning we provide expert talent to work on project initiatives in our client environments or to fill role or skill set gaps at a professional level in our client base. We also have certain assets in our portfolio that are consulting soup to nuts veracity is the perfect example. We want to do more this year in setting up CFO advisory at the true consulting unit.

And this is all about making us easier to buy and easier to sell in our client base. And then the third component is Countsy, which is our managed services business in an outsourced solution for finance and HR services more in the start-up environment. And we’re also looking at how we can provide services to divested assets of businesses. That don’t want to stand up their own full financial function, especially in light of today’s lack of accounting and finance talent. So those are kind of the three segments we see continuing to pursue that as we grow. And again, it’s about making us easier to buy and easier to sell in our client base.

Marc Riddick: Okay. Then I was just sort of wanted to also follow up then on the – I think there were some of the commentary in the press release a couple of months ago that you’re considering adding a couple of people to replace TIM or maybe some things might be, I just wasn’t sure if there’s an update available there as to as to adding to the leadership bench there?

Kate Duchene: Yes. So I think that we will, through the balance of this fiscal year, reposition what we need in senior leadership positions. I think that the future of the COO role will look different than it has in the past for good reason as we build real leadership of the segments that we’re talking about. And we continue to improve what role and function that COO position can deliver across the enterprise. One of our initiatives this year too, Jenn talked about pricing, that’s important, but also to do a better job of cross-selling across our assets into this client base. And as we determine what we need in that regard, we’ll be sharing more about the roles that we’ll put in place. And I don’t necessarily think, Marc, these are going to be new roles. We have some really talented people that are ready to step up. And so it may be reproposing or repositioning some of the existing talent we have.