REVENUE, DIRECT COSTS AND GROSS MARGIN

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



	Three Months Ended March 31, 2017
	Contracting		Permanent Recruitment		Talent Management		Other			Total
Revenue	$	66,453	$	28,018	$	8,416	$	518		$	103,405
Direct costs (1)	58,423		508		1,505		537			60,973
Gross margin	$	8,030	$	27,510	$	6,911	$	(19	)	$	42,432

	Three Months Ended March 31, 2016
	Contracting		Permanent Recruitment		Talent Management (2)		Other			Total
Revenue	$	65,856	$	26,572	$	8,436	$	363		$	101,227
Direct costs (1)	57,222		574		1,683		486			59,965
Gross margin	$	8,634	$	25,998	$	6,753	$	(123	)	$	41,262

(1)

Direct costs in 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, Talent Management 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.


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