TrueBlue, Inc. Q1 FY2025 earnings call

• Market Demand: Subdued market demand continued, revenue was $370 million near the high end of outlook. • Business Wins: Onsite business secured new engagement with global logistics company; PeopleScout had new business wins in healthcare, engineering, etc. • Digital Transformation: Launched Outthink Index, invested in JobStack, StaffTrack, Affinix platforms, using AI in recruitment. • Business Model Optimization: Aligned PeopleReady on-demand into territories, added 50% field sales reps, strategic partnership with OMNIA Partners, UK Armed Forces engagement.

The PeopleSolutions segment saw revenue decline 2%, with HSP contributing 24% inorganic growth but offset by a 26% organic decline and an 8% decline from client loss. The PeopleReady segment had a 15% revenue decline but showed improved trends and growth in skilled trades. The PeopleManagement segment returned to growth with 1% revenue increase, driven by the commercial drivers' business which had third consecutive quarter of double-digit growth. Revenue contribution: PeopleSolutions segment's revenue decline 2%, PeopleReady down 15%, PeopleManagement up 1%.

• Second quarter revenue expected to be minus 1% to plus 5% year-over-year, including 5 percentage points inorganic growth from HSP. • Roughly $9M COVID-19 government subsidy benefit in Q2.

• Evolving governmental policies hindering business confidence and suppressing staffing industry. • Economic uncertainty creating challenging market environment.

Q: How did each month look in the quarter? Did businesses feel more uncertainty?

A: Taryn Owen mentioned PeopleManagement returned to growth in Q1 and continued success in new deals, with momentum continuing into April. Carl Schweihs noted positive trends in revenue growth by state, more geographies growing than previous quarters.

Q: What growth rate did HSP achieve during the quarter and projections?

A: Carl Schweihs said HSP delivered about $11 million in the quarter, historically outperforms market, and Q1 results were flat to Q3 '24.

Q: Talk about candidate availability and pricing trends?

A: Carl Schweihs said fill rates continued to be high at 90% in Q1. Taryn Owen mentioned pricing pressure due to clients being cost-conscious but maintained pricing discipline.

Q: Details on JobStack and market share gains?

A: Taryn Owen said JobStack's proprietary version helps control roadmap, App Store rating outperforms competition, with enhancements like ReadyMatch technology and digital onboarding working as expected.