Q2 2020 DHI Group Inc Earnings Call
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Good afternoon, everyone and welcome to the H.I. Group incorporated second quarter 2020 financial results Conference call.
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At this time I'd like to turn the conference call over to Mr. Tong currently of MK, Our Investor Relations. Please go ahead.
Thank you operator, good afternoon, and welcome to do try groups fiscal 2022nd quarter Financial results Conference call with me on todays call or DHR as CEO Arts, Eylea, and Chief Financial Officer, Kevin Boston.
Before I turn the call over to our I'd like to cover a few quick items.
This afternoon DHR issued a press release announcing its fiscal 2022nd quarter financial results. This release is available on the company's website DHL group Inc. Dot com and calls being broadcast live over the Internet for all interested parties and the webcast will be archived on the Investor Relations page of the company's website.
I want to remind everyone that during today's call management will make forward looking statements involve risks and uncertainties. Please note that except for the historical information statements on today's calls may constitute forward looking statements within the meaning of section 21. The other Securities Exchange Act of 1934.
When you use the word anticipate believe expect intend future and other similar expressions identify forward looking statements.
These forward looking statements reflect the age I'd management's current views concerning future events and financial performance and are subject to risks and uncertainties actual results may differ materially from the outcomes contained in any forward looking statements.
Factors that could cause these forward looking statements to differ from actual results include delays and developing marketing or sales.
The adverse impact of and uncertainties surrounding the cobot 19 pandemic and other risks and uncertainties as discussed in the company's periodic reports on form 10-K, 10-Q, and other filings with the Securities Exchange Commission.
The H.I. undertakes no obligation to update or revise any forward looking statements.
Lastly, during today's call management will be referring to specific financial measures, which include adjusted EBITDA adjusted EBITDA margin and net debt, which are not prepared in accordance with U.S. GAAP information about Andrew and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures is it.
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<unk> earnings press release and on our website at the age I do think dot com and the Investor Relations section.
I'll now turn the call over to our daily So you have DHX <unk>.
Thank you Todd.
Afternoon, everyone and welcome to our fiscal 2022nd quarter earnings Conference call as always we appreciate your interest in DHR.
I want to again by saying a few words about Kogut 19, and our response to this global came down.
Our foremost concern at the age I used to ensure that health and safety of our DHR community as such when the pandemic began to unfold in mid March Yeah, DHR jumps due to actions to eight our communities by launching over 19 resource centers on each of our brand site to assist both clients and candidates alike.
With information rather than to their needs in challenging times.
Sites provide information on virtual career fairs opening remote John hosts real time hiring trends industry insights articles and hiring resources. We also launched a campaign to provide free recruitment services to U.S. hospitals to help them buying technologists and fields like electronic medical records.
Health care administration and computer system processing.
Also all our employees have been working from home using the best possible remote communication and collaboration tools and our team members, including sales and support marketing and product development continues to be highly effective.
In fact, our product development, he actually gained efficiency working from home this quarter delivering dozens of new product releases.
I'll dive more into these product lines is later in the call, but first let me provide a quick update on the current market environment for tech jobs.
The pandemic is certainly challenging the way, we all live and work we saw job postings draw in the early part of the quarter, but come back to the trailing 12 month average levels in June and July as companies became more confident in their hiring strategies.
From serving highly impacted industries have pause or reduce their hiring plans and we believe that our bookings are highly correlated to the state of geographical restrictions and Reopenings, which certainly remain in flux.
It's clear that our collective future will be more online and businesses will accelerate their efforts to digitize. These efforts will of course require technologists. A recent report lease by Microsoft in July predicts that the worldwide digital jobs will grow from 41 million in Twentytwenty 219.
In in 2025.
Of the 149 million new digital jobs created 98 million are forecast to be in software development.
With our technology skills data model in technology focused marketplaces, we stand ready to capitalize on this trend.
Now, let me provide some more detail regarding the product development efforts I mentioned earlier.
During the second quarter, our product development team continued to deliver a high pace of product innovation.
With the recent days for either profile, we took the first well leap forward in basis transformation from a job board to a full scale career marketplace.
Thanks recruiter profile allows our clients recruiters to enrich their brands with photos personal information details of our corporate culture and improved important news as well as information about latest hires upcoming events and future hiring needs all of which create more transparency and personalized we recruit are behind the role.
Candidates can now discover the recruiters that are aligned with their interests and use recruiter profile information to better engage our job postings and respond to outreach.
With the dice marketplace, we're creating a trusted environment, where recruiters and candidates can learn much more valley charter to facilitate more effective career discussions.
We also launched dice remote jobs. The pandemic has demonstrated the candidates can successfully work from home and want to do so and that more jobs are predicted to be remote qualified in the future.
Remote job opportunities has been the top requested feature by both clients and candidates since the start of the pandemic and the views for these job postings and significantly higher than non remote Joe job postings. This is an excellent opportunity for employers to tap into pools of remote workers across the United States to increase talent pipeline.
And diversify their workforce and we had DHR I want to be the leader in the technologist part of this important trend.
We also launched clearance jobs automated recruiter workflow in the quarter, which we believe is a true game changer.
Workflow is an easy to use set of tools that allow recruiter to automate routine task in today, including Cowen sourcing pipelining engagement marketing in a worse.
When specific candidate activities occur they trigger automated pre planned actions and responses as an example anchor recruiters looking for an Oracle database administrator in California, when a new candidate with the correct profile registers on database workable workflow will automatically connect the recruiter with the new candidate.
Tagged them in their pipeline produce an email introduction and generated a text notification that all this has been completed.
Our internal estimates indicate that this powerful set of tools can eliminate approximately 3.5 hours of administrative task time per recruiter per day.
Clearance jobs is the only career site in the world that incorporates this capability where shops continues to be DHR test that for key market leading features like this one of the kind technology.
We also launched deep financial careers enhanced candidate profile during the quarter FC candidates can now exposed a richer profile equivalent to that offered on clearance jobs to recruiters specializing in their respective field.
And in mid July we launched Dfc follow voice and video. These features complete by Dfc marketplace, delivering a rich set of communication tools for recruiters and professionals to engage in career discussions.
Now finance and tech professionals, and recruiters can connect virtually with video and voice, calling as well as instant messaging all through the FC platform.
We have many new releases planned for the remainder of the third quarter Dices completing the design for its own enhanced candidate profile and messaging system with an expected launch by year end, we're working on delivering countering integration for clearance jobs and for FC We will be releasing a modern new brand identity, starting with there.
To be site.
Now let me touch briefly on the progress we continue with make improving our go to market strategy and execution and then I'll touch on our sales performance for each brand before I turn it over to Kevin.
We continue to transform our sales organization this quarter with the addition of a new customer success leader, a new days agency program leader and the relaunch of managed services as sourcing services with a focus on delivering embedded candidates for targeted clients clients searches much like other trends in our business.
We have seen a steady improvement in the demand for sourcing services since April.
Turning to sales performance by brand.
For all of our brands as we were experiencing a checkmark shaped recovery not a V shaped recovery dices current bookings are trending towards their performance pre pandemic, although our new business teams, including the based commercial accounts team remain challenged due to the extra conservatism of potential new clients in this environment.
Despite this challenge the commercial sales team has been heads down training and improving its core practices.
There are becoming more sophisticated in their go to market approach and as a result brought in the largest new business deal in the history of our company.
This deal with a large U.S. government agency is worth $270000 in annual contract value.
To put this in perspective, we typically sign new business deals in the 7000 to $10000 range.
This success along with the momentum we saw in signing new customers in the weeks, leading up to the start of the pandemic in mid March gives us great confidence that our focus on commercial accounts will be the cornerstone for our growth as the business environment normalizes.
Our renewals with existing dies clients, while impacted in the quarter as a result of the pandemic are slowly returning to expected levels in existing clients. The told us that they cannot find appropriate technologists without our platform.
It's important to note that this dip in renewal base bookings during the quarter will manifest itself in lower revenue for the remainder of the year as we recognize each booking as revenue monthly across the duration of the contract.
Cleared shops has been relatively unaffected by the endemic as this performance is generally correlated to the USA yielding budget, we're very fortunate that the 2021 defense authorization Bill security moving forward towards approval.
We continue to work hard on expanding CJ addressable market through direct sales to us government agencies and it looked half a million dollars in new contract revenue through the first half of the year.
We expect clearance jobs to add several new government customers as we make our way through the rest of this year.
Finally, efinancialcareers remains our most challenged brand.
From the Hong Kong protest last summer to the uncertainty of Brexit last fall to the current pandemic FC clients. The face significant challenges that have certainly affected our bookings.
The global banking community is still working out the hiring plans in light of the Indeterminant effect of the pandemic on loan portfolios.
We are fortunate that FC is generally focused on larger banking institutions and counts, 50% the global 100 bands as clients.
These institutions bleed on online banking future and continue to higher technologists, even now.
There is no question, however to the uncertainty in the banking industry has weighed down yes. These performance to date and we'll continue to do so at least through the remainder of the year.
As I conclude my remarks, I want to reiterate that we are successfully executing on our plan to build career marketplaces for matching tech professionals with employers.
We believe we have created a better online platform than our competitors for matching companies with the highest quality tech professionals and with our proven go to market strategy. We believe we can capitalize on the millions of new technologist jobs expected over the next five years and grow our revenue at or above the market rate of growth.
While this growth won't happen overnight and cobot 19, certainly presents uncertainty we're confident in our business plan and the continued progress we're making towards achieving our goal.
With that let me turn the call over to Kevin who will take you through our financials and then we'll take any questions you may have Kevin.
Thank you art and good afternoon, everyone.
Ill start by going through the financial results then had a few comments about the business.
The second quarter, we reported total revenues of $33.8 million, which was down 8% from the first quarter and down 9% year over year. When you exclude the impact of foreign exchange.
Nice revenue was 20.5 million in the second quarter down, 9% sequentially and down 12% year over year. We ended the second quarter with 5450 dice recruitment package customers, which is down 7% sequentially and 11% year over year.
During the quarter, we did not the any notable changes to customers, leaving the platform relative to other quarters. However, we did see lower new customers being added.
This gives us comfort that our core customers continue to see the value on our platform even during these challenging times.
We maintained our average monthly revenue per recruitment package customer versus a year ago quarter at $1131 or $13572 on an annual basis.
This is important as over 90% of dice revenues recurring and comes from recruitment package customers.
Our dice customer renewal rate was 57% for the second quarter down 13 percentage points year over year, and our revenue renewal rate was 61%, which was down 19 percentage points when compared to the same period last year.
These lower renewal rates have a minimal impact on in quarter revenues, but do impact contracted revenue and will result in lower revenue during the term of the related contracts.
And while we did see lower in period renewal rates that is customers renewing prior to or add contract termination. We are maintaining an ongoing dialogue with these nonrenewal customers with the expectation that they will resign when there is further recovery in the economy.
In addition, we hired a new leader for our clients excess organization, who is implementing new processes around onboarding and ongoing touch points that should have a positive impact on both customer and revenue renewal rates.
As we look at sites our strategy continues to be on larger customer relationships through moving upstream in terms of our marketing efforts sales activity and go to market approach. We believe this will put us in the best positioned for stability and growth.
Currently approximately 15% of our customers generate 50% of our recruitment package revenue, though no one customer makes up even 1% of revenue.
We think this is a good balance of a strong stable revenue base without having significant customer concentration risk.
Clearance jobs second quarter revenue was $7.1 million, an increase of 3% sequentially and 18% year over year.
As continued solid double digit revenue growth year over year is reflective of clearance jobs strong innovative products and competitive differentiation.
Second quarter revenue for Efinancialcareers was $6.2 million down 15% from the first quarter and 21% year over year, when excluding the impact of foreign exchange rates as expected kogut negatively impacted our performance for efinancialcareers during the quarter.
In the UK, which is our largest geography by revenue for FC we were impacted by the coded shutdown and UK furloughs, which have been extended through October of this year.
In the APAC region.
Second largest geography, we continued to experience difficulties, primarily due to the impact of the pandemic.
Turning to operating expenses.
Third quarter operating expenses were $31.3 million, representing a decrease of 1.7 million or 5% year over year.
This decrease in operating expenses was primarily the result of the comprehensive cost management exercise, which began in late March and continues currently.
For the second quarter sales and marketing expense decreased 1.5 million year over year to $12.3 million.
The majority of our cost savings was associated with the reduced digital marketing spend for candidates given that there has been a larger amount of candidate engagement naturally during the work from home environment.
And even while we accelerated the deployment of new product features in the second quarter, our product development expense decreased 617000 year over year to $3.8 million as a result of higher capitalization rates associated with these projects.
Income tax expense for the second quarter was $430000, resulting in an effective tax rate of 19%, which is lower than our them our expected statutory rate of 25% due to the allocation of income between jurisdictions.
We recorded net income for the second quarter of $1.9 million or four cents per diluted share compared to net income of 3.1 million or six cents per diluted share a year ago.
This quarter's earnings per share had a one cents detriment primarily from severance and related costs that negatively impacted net income.
Last years earnings had a two pennies detriment from disposition related costs, including the loss on the sale of a business and discrete tax items.
Excluding those items on a normalized basis EPS for the quarter was five cents versus eight cents last year.
Adjusted EBITDA margin for the second quarter was 23% up from 21% in the first quarter and down from 24% in the second quarter last year.
As we stated on our last call. Our goal is to manage the business to approximately 20% adjusted EBITDA margins.
We were able to exceed that due to the quick action, we took to both support our customers and revise our spending along with the ongoing management of the overall cost structure.
We generated $7.1 million of operating cash flow in the second quarter compared to 11.1 million in the prior year quarter.
From a liquidity perspective at the ended the quarter. Our total debt was $37 million, we have $27.5 million of cash, resulting in net debt of $9.5 million.
Even with the incremental borrowing in the first quarter, we still have significant borrowing capacity available to us under our credit facility liquidity continues to be a key area for us.
During the quarter several customers requested flexibility on billing terms in with our strong liquidity position, we were able to provide this flexibility with the intent of retaining active customers and working with them through their challenges.
More recently, we have seen the number of requests dropped significantly which is clearly a positive sign.
In total less than 1% of our customer base requested some form of payment flexibility.
Deferred revenue at the ended the quarter was $47.2 million down 15% from the first quarter.
This is due to the impacts of cobot 19, as well as more contracts, having monthly or quarterly payment terms as a result of the flexible billing terms I just discussed and the normal seasonality of bookings.
Yes, when we add the unbilled portion of our contract to deferred revenue are committed contract backlog at the end of the quarter was down 11% from the end of the second quarter last year.
During the quarter, we repurchased approximately 1.3 million shares for $3.4 million or $2.56 per share.
We used $2.9 million of the $7 million buyback program, which ran through may of this year and 530000 under the new $5 million share buyback program.
We continue to believe the buyback is a recognition of the strength in the long term prospects of our business.
Consistent with our previous programs, we will continue to evaluate investment opportunities in the business against buying back shares will also using it as an opportunity to offset the impact of our employee equity incentive programs.
As we look ahead bookings are improving across all teams, but as art mentioned this appears to be more of a Nike swim shaped recovery than a V shaped recovery for date, while there is still great uncertainty due to the pandemic, we've seen a stable number tech job postings in the past few weeks as company.
Has continued to use technology in their business model.
With regard to clearance jobs, we expect them to continue to grow because their success is correlated to the US department of defense budget, which relatively speaking has been immune to the environment, we find ourselves.
For Efinancialcareers, while it operates in multiple geographies, we continue to expect significant headwinds in our two largest regions the UK and APAC as a result of the furloughs in the UK due to Cove. It and in addition to co that the ongoing geopolitical issues in Hong Kong.
While we have relationships with approximately 50% of the global 100 banks, providing us more stability in the current environment, we have seen our smaller customers continues to be impacted.
As we've mentioned we continue to evaluate our entire cost structure and have reduced non head count related expenses, both operating expenses and capital expenditures.
This includes such areas as contractor and consulting spend marketing spend and third party vendors spend while being very disciplined around any head count additions.
With regards to marketing we believe we can still achieve our candidate and client metrics with lower spend as overall digital advertising rates have come down.
We remain confident in our ability to manage our expenses appropriately for any revenue changes that might occur.
Looking forward, we will operate the business in a manner that maintains our employee base and allows us to continue investing in our business to drive long term revenue growth and to support our customers in these challenging times as such while not providing specific guidance. We continue to manage the business to margins in the 20% range.
Let me sum up by saying that while we continue to find ourselves in very challenging times, we feel our business model provides us some protection and predictability and we're confident in the investments we have made in innovation and sales. We remain focused on the continued execution of our business plan and look forward to reporting on.
Our progress throughout the rest of 2020.
And with that let me turn the call back to art.
Yes, Kevin I'd like to close by once again, thank you Oliver employees around the globe for their hard work. This last quarter. It is a pleasure to be part of such a great team with that we're happy to take your questions.
Okay.
Ladies and gentlemen at this time will begin the question answer session.
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So again that is and wanting to ask your question.
First question today comes from Kara Anderson from B. Riley. Please go ahead with your question.
Thank you are unhappy night.
[music].
I'm just wondering if you could provide a little bit more color around the trends within the quarter, maybe comparing what.
In April to let you sign June and a whole quarter stock kind of a 10% decline on the topline just and if you could even growing media.
Until July.
Absolutely so.
I would say that in April we saw most companies are clients.
In a position where they were forced to work from home and therefore, a lot of business activity just stopped a lot of communication stop.
That was true across all of our brands I would say that we saw.
Bookings effectively hit a bottom in the mid may pursue timeframe and then they rebounded in June and July and continue to do so kind of like what we described as our checkmark shaped recovery I would say the.
Situation is different for each one of those brands.
I believe that in the case of days, our largest Bryant brand, obviously, a lot of people have recognized that they still need technologist, maybe even more so now in the future than they did pre pandemic and we've seen that even independent views.
By the use of earnings last fee, which scrapes all the technology positions across web sites us wide rebound to what was.
What they were projecting prior to the pandemic. So days feels like it is very relevant that we are seeing activity come back with our largest customers the issue with days.
It has always been and to a certain extent true of our other brands.
Associated with smaller customers and smaller customers are those staffing and recruiting firms that can be like 10 people and unfortunately, they make about decision in any kind of an economic environment and they can be our business I would say clearance jobs.
Has fundamentally gone through this period of time and.
Read set itself to the same level of bookings that it had pre pandemic.
We just had a customer advisory board meeting last week, where we asked all ofi recruiters that are on our panel what the statuses of their activity and they said, it's just as it was before.
It's a little bit more difficult to hire in this environment for everybody because you have virtual onboarding and you have.
A little bit more friction in the process, but they are boyd by the fact that there.
Firms, which are largely military contractors have a very stable source of revenue that the U.S. government I'd say efinancialcareers is the one brand that his pad.
An extra negative impact from coated I kind of explain to in my remarks that we saw a bookings impact due to the Hong Kong protests last year, and then the idea of Brexit, whether it would or would not happen and now the pandemic is creating uncertainty for banks and I personally believe.
With that banks had to go through a very quick process to assess their loans.
And release results over the last couple of weeks, but there's a huge.
Variance in the analyst reports that are coming out on banks as to what earnings are going to be in the future because those accruals for loan losses.
Might be inaccurate and so thats created uncertainty around hiring inside of the the banking world I'd say globally.
And in particular in the UK and APAC region associated with not only our co bid.
The loss of the loss accruals, but also just geopolitical events. So that would be my extended version of what we saw in terms of bookings, but we are seeing those bookings rebound just again not a V shape recovery inside of the quarter I'd say, it's going to take.
Yeah, arguably quarters before we get back to bookings pre pandemic with all of our brands and again, we're still in uncertain times.
Thanks, Doug Thats really helpful on jumping back to sort of on the makeup of the customers not renewing that right.
Are you getting a sense for.
Those smaller customers and are they going on a business are they just.
Being impacted.
Were greatly so there's just a little bit less certain key there just wondering if.
And the potential to come back or Bill Byrne.
Customers.
Glencore permanently bye.
So I'd say that in general the customers that did not renew with US we're of the smaller customers in size and Nevertheless, we're still engaging in discussions we call that a wind back if we essentially give that same customer back within 90 days and so we believe that as the environment stabilizes and.
Things become better for those particular customers that they will.
They will come back two days or other platforms. A great example, as a customer that I just talked to a couple of days ago, who said that his business roughly speaking about 50 person firm.
Had lost 50% of as revenue in April, but they are back to about 85% of that revenue today. So I think as people feel more confident about the economy about quite frankly, the number of cases of cobot 19, and geographies that theyre servicing.
They are going to be feeling more confident about how they engage with our platforms.
On one one other question.
On the.
Credit facility I guess.
What is the plan under.
Last year down last quarter like you stop there.
Expectation.
Clarity.
I will environment evolves that you're going to keep it that way or.
Yep.
Just curious on your thoughts.
Yes. This is Kevin care.
For the at least the near term, we just envision keeping the cash on our balance sheet.
Where we are today at 1.2 times leverage that that incremental cost of borrowing is very low and we view it as an insurance policy that's worth keeping.
We have evaluated whether we pay it back and I think for right now, we just feel comfortable with the cash on the balance sheet.
Got it thank you very much.
Thank you Sarah I appreciate it.
And our next question comes from.
Josh Yodle from Sidoti. Please go ahead with your question.
Hey, Josh.
They are in Kevin how are you guys.
Excellent how about yourself.
Pretty good. Thank you I got a couple for you here.
First on hope we need to one.
You mentioned that that largest new business deal in the history. The company did you say that was 270000 annual contract value.
Yes that is correct 207.
Okay, Great and is that as a multiyear just it's going to be like an annual kind of auto renewal type thing hopefully.
Im not sure if it is multi year, it's a one year, okay, yes, okay, confirming us one year.
Okay great.
So.
Understanding some more flexible payment terms and whatnot and.
Kevin You had I think are you had a comment around the dip in renewals will be realized as lower revenue over the balance of the year.
Yes, I was curious how much revenue comes up for renewal in Q3.
Im not sure the answer that one that's that's a great question I would tell you that our two largest.
Quarters for revenue renewal.
For the fourth quarter, and the first quarter and it's always associated with really the budget cycle associated with larger staffing recruiting firms and so I would say that the third quarter would logically be kind of the lowest.
Order for revenue renewal.
It is yes.
We do have Q1 and Q4.
To make up.
Roughly 55% to 60% of the bookings.
And then the balance of that is somewhat close to being evenly split between Q2 in Q3 with a slightly higher amount in Q2.
Based on on a lot of June 30, calendars and activity, we see right around the end of the second quarter.
Thats helpful. Thanks.
Shifting a little bit.
The majority of the I guess cost savings that we saw in the quarter, Kim sales and marketing with reduced digital spend.
Now and you're saying overall rates have come down, but do you think that once we sort of get back to this new normal.
Do you think you can mean team this lower level of digital marketing spend or is that going to inherently have to pick up overtime.
I would presume that is going to pick up from where it is today, but we found is that we can be more efficient in terms that spend so Kevin mentioned that the rates themselves for ad units.
Come down.
As you suspect theres less demand, but we've also figured out how to be more efficient. So I'd say that the spend is going to go up but not to the same degree that it has been historically.
Sure Okay and.
In interesting comment around clearance jobs and.
How it's kind of reset itself to the level of focus pre pandemic and it's got me thinking unit given the sensitive nature of the candidate or the security clearance needed can you still virtually screen and eventually onboard a candidate for clients with.
Or get them into a client's facility without.
Through all virtual means.
Yes, yes, they're doing it right now that's confirmed its it creates more friction as I described in the sense. The process is generally longer for the recruitment cycle, but they are bringing on candidates right now to all these major military contractors.
That's great.
All right is another one year just.
You have strong quarter product releases and enhancements and you talked about the automated recruiter work flow at clearance jobs and how it.
Reduces the administrative burden there I was just curious what are some other metrics or keep guys that you track on some of the bigger rollout to dissect the recruiter profile and remote jobs is.
Can you share that.
Yeah, we actually track a tremendous number of on statistics, we have a data team that's roughly a dozen people that's focused solely on making sure that we are collecting the right data necessary to understand whether or not product as well as other functional areas. The company are working properly.
And so in the case of recruiter profile. For example, we track the number of recruiter profiles that are created each day and then obviously trend that over the course of months and then we also track the deaf to which the profile is complete so our percentage of completion is another really super.
Our important statistic and these are relatively early rollout, but those are there are a number of different metrics and KPI for every single product.
Generally on the order of dozens that we track to make sure that we see the kind of success and engagement that we had hoped for in fact, we always actually will also put in targets for each one of those metrics. So were not just tracking of blind, we're tracking them to a going inherent in the product managers vision for that particular product.
Alright, great and actually just thinking about the number of recruiter profiles create each day, how did how did that trends.
From rollout through the end of July.
Exceeded our expectations and we also kind of blew past the.
The track record associated with yes see in the rollout of their recruiter profile and also even.
Ironically for clearance jobs when it rolled out its original recruiter profile. So we think that is it something that people are.
Drawn to because they recognize that by having a profile the candidate gets a lot more knowledge of.
The interest associated with the company the interest associated with that particular recruiter. It creates just a better relationship and more engagement in general attribute our figuring out if they if they put themselves out there they provide more information about them. It's it's another reason for a candidate to.
Applied to that job and feel more comfortable.
That's great and just one last one kind of housekeeping item maybe for Kevin.
The tax rate you talked about the allocation of income amongst jurisdictions that should we expect this to be kind of the new rate going forward or should we kind of be expecting that deals statutory rate of 25%.
Yes, I think we're better off thinking about the statutory rape rate of 25% for the full year.
Great. Thanks for taking my questions guys.
Thanks, Josh we appreciate it.
And ladies and gentlemen, with that Weve reached the end of today's question and answer session I'd like to turn the conference call back over to Mr. currently for any closing remarks.
Thank everyone for your interest in DHR group to schedule and meeting with management. Please email IR at DHR group Inc. Dot com.
Or call to one two or four eight or 181, thanks for joining our call today and I hope you have that.
Ladies and gentlemen, with that will conclude today's conference call with you. Thank you for attending you may now disconnect your lines.