REVENUE, DIRECT COSTS AND GROSS MARGIN

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



	Three Months Ended September 30, 2017
	Contracting		Permanent Recruitment		Talent Management		Other			Total
Revenue	$	77,097	$	31,783	$	8,680	$	548		$	118,108
Direct costs (1)	68,260		535		1,500		568			70,863
Gross margin	$	8,837	$	31,248	$	7,180	$	(20	)	$	47,245

	Three Months Ended September 30, 2016
	Contracting		Permanent Recruitment		Talent Management (2)		Other			Total
Revenue	$	70,440	$	28,437	$	8,540	$	719		$	108,136
Direct costs (1)	61,619		627		1,756		592			64,594
Gross margin	$	8,821	$	27,810	$	6,784	$	127		$	43,542



	Nine Months Ended September 30, 2017
	Contracting		Permanent Recruitment		Talent Management		Other			Total
Revenue	$	213,813	$	91,991	$	27,656	$	1,644		$	335,104
Direct costs (1)	188,778		1,751		4,915		1,657			197,101
Gross margin	$	25,035	$	90,240	$	22,741	$	(13	)	$	138,003

	Nine Months Ended September 30, 2016
	Contracting		Permanent Recruitment		Talent Management (2)		Other			Total
Revenue	$	208,330	$	84,499	$	27,989	$	1,612		$	322,430
Direct costs (1)	181,797		1,812		5,555		1,623			190,787
Gross margin	$	26,533	$	82,687	$	22,434	$	(11	)	$	131,643

(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.