ASGN, Inc. (NYSE:ASGN) Q3 2023 Earnings Conference Call October 25, 2023 4:30 PM ET

Company Participants

Kimberly Esterkin - ADDO Investor Relations

Theodore Hanson - CEO & Director

Marie Perry - EVP & CFO

Randolph Blazer - President

Conference Call Participants

Tobey Sommer - Truist Securities

Maggie Nolan - William Blair & Company

Mark Marcon - Robert W. Baird & Co.

Joshua Chan - UBS

Seth Weber - Wells Fargo Securities

Surinder Thind - Jefferies

Jeffrey Silber - BMO Capital Markets

Heather Balsky – Bank of America Merrill Lynch

Operator

Greetings. Welcome to the ASGN Incorporated Third Quarter 2023 Earnings Call. [Operator Instructions].

I will now turn the conference over to your host, Kimberly Esterkin, Vice President of Investor Relations. You may begin.

Kimberly Esterkin

Good afternoon, and thank you for joining us today for ASGN's Third Quarter 2023 Conference Call. With me are Ted Hanson, Chief Executive Officer; Rand Blazer, President; and Marie Perry, Chief Financial Officer.

Before we get started, I would like to remind everyone that our commentary contains forward-looking statements. Although we believe these statements are reasonable, they are subject to risks and uncertainties, and as such, our actual results could differ materially from those statements. Certain of these risks and uncertainties are described in today's press release and in our SEC filings. We do not assume any obligation to update these statements made on this call. For your convenience, our prepared remarks and supplemental materials can be found in the Investor Relations' section of our website at investors.asgn.com.

Please also note that on this call, we will be referencing certain non-GAAP measures, such as adjusted EBITDA, adjusted net income and free cash flow. These non-GAAP measures are intended to supplement the comparable GAAP measures. Reconciliations between GAAP and non-GAAP measures are included in today's press release.

I will now turn the call over to Ted Hanson, Chief Executive Officer.

Theodore Hanson

Thank you, Kim, and thank you for joining ASGN's Third Quarter 2023 Earnings Call. ASGN's performance for the third quarter of 2023 was in line with our expectations with result slightly ahead of or within our guidance ranges. Third quarter 2023 revenues of $1.12 billion were above the midpoint of our guidance with IT consulting revenues reaching approximately 55% of the total ahead of our 2024 goals. Adjusted EBITDA margin was 12.3% for the third quarter, above the top end of our guidance range. We continue to see opportunities for margin expansion as our consulting revenues grow.