REVENUE, DIRECT COSTS AND GROSS MARGIN

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



	For The Year Ended December 31, 2016
	Contracting		Permanent Recruitment		Talent Management		Other		Total
Revenue	$	270,777	$	112,582	$	37,204	$	2,181	$	422,744
Direct costs (1)	236,654		2,429		7,216		2,028		248,327
Gross margin	$	34,123	$	110,153	$	29,988	$	153	$	174,417

	For The Year Ended December 31, 2015
	Contracting		Permanent Recruitment		Talent Management (2)		Other		Total
Revenue	$	305,052	$	118,934	$	37,425	$	1,786	$	463,197
Direct costs (1)	262,322		2,733		8,681		1,751		275,487
Gross margin	$	42,730	$	116,201	$	28,744	$	35	$	187,710

	For the Year Ended December 31, 2014
	Contracting		Permanent Recruitment		Talent Management (2)		Other		Total
Revenue	$	408,106	$	126,686	$	43,586	$	2,814	$	581,192
Direct costs (1)	345,586		2,369		7,980		2,412		358,347
Gross margin	$	62,520	$	124,317	$	35,606	$	402	$	222,845

(1)

Direct costs include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. Other than reimbursed out-of-pocket expenses, there are no other direct costs associated with the Permanent Recruitment and Other categories. Gross margin represents revenue less direct costs. 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.


(2)	Talent Management has been recast from Other in this disclosure.