REVENUE, DIRECT COSTS AND GROSS MARGIN

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



	Three Months Ended June 30, 2017
	Contracting		Permanent Recruitment		Talent Management		Other			Total
Revenue	$	70,264	$	32,190	$	10,559	$	578		$	113,591
Direct costs (1)	62,093		708		1,910		554			65,265
Gross margin	$	8,171	$	31,482	$	8,649	$	24		$	48,326

	Three Months Ended June 30, 2016
	Contracting		Permanent Recruitment		Talent Management (2)		Other			Total
Revenue	$	72,035	$	29,491	$	11,013	$	528		$	113,067
Direct costs (1)	62,956		611		2,116		545			66,228
Gross margin	$	9,079	$	28,880	$	8,897	$	(17	)	$	46,839



	Six Months Ended June 30, 2017
	Contracting		Permanent Recruitment		Talent Management		Other			Total
Revenue	$	136,716	$	60,208	$	18,976	$	1,096		$	216,996
Direct costs (1)	120,518		1,216		3,415		1,089			126,238
Gross margin	$	16,198	$	58,992	$	15,561	$	7		$	90,758

	Six Months Ended June 30, 2016
	Contracting		Permanent Recruitment		Talent Management (2)		Other			Total
Revenue	$	137,890	$	56,062	$	19,449	$	893		$	214,294
Direct costs (1)	120,178		1,185		3,799		1,031			126,193
Gross margin	$	17,712	$	54,877	$	15,650	$	(138	)	$	88,101

(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 "Salaries and related" in the Condensed Consolidated Statement of Operations.


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