TrueBlue, Inc. (NYSE:TBI) Q3 2020 Earnings Conference Call - Final Transcript

Oct 26, 2020 • 05:00 pm ET

Previous

TrueBlue, Inc. (NYSE:TBI) Q3 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Executive
Patrick Beharelle

engagements tend to be more resilient in a downturn. Revenue for PeopleManagement was down 8% during the quarter with the top line down just 2% in September versus down 12% in July.

Turning to our third segment, PeopleScout, represents 9% of trailing 12-month revenue and 9% of segment profit. PeopleScout is a global leader in filling permanent positions through our recruitment process outsourcing and managed service provider offerings. Revenue was down 48% during the quarter versus down 53% in Q2. PeopleScout results were particularly impacted by exposure to large travel and leisure clients.

Now I'd like to shift gears and update you on our key strategies by segment, starting with PeopleReady. Our long-term strategy at PeopleReady is to digitize our business model to gain market share. Most of our competitors in this segment are smaller mom and pops that don't have the scale or capital to deploy something like our JobStack mobile app. So this, along with our nationwide footprint, is what makes us unique. We began rolling out JobStack in 2017 to our associates and in 2018 we launched the client side of the app. We now have digital fill rates north of 50% and more than 26,000 clients using the app.

In Q3 2020, we filled 726,000 shifts via JobStack representing a digital fill rate of 51%. Our client user count ended the quarter at 26,100, up 37% versus Q3 2019. In mid-2020, we introduced new digital onboarding features that cut application time in half. This has led to some great operational results as we increase the ratio of associates put to work versus all applicants. Early results indicate a 20% increase in worker throughput. This is exciting because as we move back to a supply-constrained environment, an increase in worker throughput will translate directly to revenue.

We believe we can further improve applicant throughput as we fine tune our processes. Right now, we're also very focused on driving heavy client user growth. A heavy user is a client who has 50 or more touches on JobStack per month whether it's entering an order, rating a worker or approving time. JobStack heavy users have consistently posted better year-over-year growth rates compared to the rest of PeopleReady. The growth differential is north of 20 percentage points and has held true even in this market downturn. This makes sense, since we have many clients who use multiple vendors and we can grow our business simply by growing our wallet share even if our client's total volume is flat to down.

Our focus on heavy user growth is starting to pay-off. We doubled our heavy user mix since 2019, up from 11% of our business in fiscal 2019 to 22% for 2020 year-to-date. Our positive strategic progress is obviously overshadowed by the macro environment at the moment, but we continue to invest in our digital strategy and believe this approach will help PeopleReady emerge stronger than ever.

As our digital strategy continues to mature, we're taking a look at areas within