REVENUE, DIRECT COSTS AND GROSS MARGIN

The Company’s revenue, direct costs and gross margin were as follows:



	Three Months Ended September 30, 2016
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	70,440	$	28,437	$	9,259	$	108,136
Direct costs (1)	61,619		627		2,348		64,594
Gross margin	$	8,821	$	27,810	$	6,911	$	43,542

	Three Months Ended September 30, 2015
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	70,810	$	30,263	$	8,955	$	110,028
Direct costs (1)	61,562		867		2,454		64,883
Gross margin	$	9,248	$	29,396	$	6,501	$	45,145



	Nine Months Ended September 30, 2016
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	208,330	$	84,499	$	29,601	$	322,430
Direct costs (1)	181,797		1,812		7,178		190,787
Gross margin	$	26,533	$	82,687	$	22,423	$	131,643

	Nine Months Ended September 30, 2015
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	237,778	$	90,242	$	29,068	$	357,088
Direct costs (1)	204,279		2,049		7,489		213,817
Gross margin	$	33,499	$	88,193	$	21,579	$	143,271

(1)

Direct costs in Temporary Contracting include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, rent and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. Permanent Recruitment and Other category include direct costs for out-of-pocket expenses and third party suppliers. The region where services are provided, the mix of contracting and permanent recruitment, and the functional nature of the staffing services provided can affect gross margin. The salaries, commissions, payroll taxes and employee benefits related to recruitment professionals are included under the caption "Selling, general and administrative expenses" in the Condensed Consolidated Statement of Operations.