Financial Data and Key Metrics Changes - Revenue for Q1 was reported at $120.2 million, exceeding the outlook range, with a gross margin of 39.5%, which is 300 basis points higher than the prior year [26][27] - SG&A expenses were $44.5 million, a 7% improvement from $47.7 million a year ago, driven by lower management compensation and reductions in other G&A spend [28] - Adjusted EBITDA improved to $3.1 million, representing a 2.5% adjusted EBITDA margin [26] Business Line Data and Key Metrics Changes - On-demand segment revenue declined by 16% year-over-year to $44.4 million, but segment-adjusted EBITDA improved to $4.4 million, or a 10% margin [29] - Consulting segment revenue was $43.6 million, a decline of 22% from the prior year, with segment-adjusted EBITDA at $5 million, or an 11.6% margin [29] - Europe and Asia-Pacific segment revenue grew by 5% year-over-year to $19.9 million, with segment-adjusted EBITDA of $0.8 million, or a 4.2% margin [30] Market Data and Key Metrics Changes - Europe and Asia-Pacific achieved solid growth, with a 5% increase in revenue, driven by strong client relationships and effective regional strategy [23] - Demand for CFO advisory and digital transformation offerings remains strong, with a focus on local delivery combined with scalable global delivery centers [24] Company Strategy and Development Direction - The company is transforming from a professional staffing organization to a diversified platform combining on-demand talent with consulting and outsourced services [5] - Focus areas include CFO advisory and digital transformation, which are critical for driving client transformation and enhancing value [8][10] - The company aims to increase its addressable market and improve return for shareholders through strategic investments and enhanced service offerings [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the global macro environment remains uncertain, but they are positioning the company for an upturn [3] - There is a belief that improvements in key operating metrics will lead to tangible revenue growth over time [27] - The outlook for Q2 anticipates revenue stability between $115 to $120 million, with gross margin expectations similar to Q1 [31][32] Other Important Information - The company is actively redesigning its cost structure to fit its current size and scale, with expected annual cost savings of $6 to $8 million from recent organizational changes [15][28] - The company maintains a strong balance sheet with $77.5 million in cash and no outstanding debt [30] Q&A Session Summary Question: What would you say regarding the trend in pricing? - Management indicated that while staffing rates have remained steady, there are pricing pressures in consulting, but value-added services are allowing for rate increases on new projects [35][36] Question: How much of the pipeline would you attribute to cross-selling? - The company is still building its pipeline but has seen an increase in $1 million-plus deals, anticipating further growth through cross-selling efforts [37] Question: Can you break out the revenue guide between segments? - The revenue guide for Q2 expects continued strength in Europe and Asia-Pacific, while on-demand and consulting segments are expected to perform similarly to Q1 [40][41] Question: Are there regional differences in demand? - Demand is strong in the West Coast and Southeast, attributed to team tenure and alignment with client priorities in CFO advisory and digital transformation [43] Question: What changes have new board members brought? - New board members have provided fresh perspectives, focusing on optimizing bottom-line performance and fostering collaborative teams [59][60]