Cross Country Healthcare Inc. (NASDAQ: CCRN) reported second-quarter revenue jumped 53.1% and exceeded the high end of guidance. However, gross margin narrowed at the Boca Raton, Florida-based company.

“We continue to partner with our clients to solve complex labor challenges against a backdrop of near-record demand and an exceptionally tight labor market, which is driving higher compensation costs in most healthcare specialties,” Clark said. “As we enter the second half of 2021, we are well-positioned to continue expanding our base of clinicians on assignment and our market share, as we further digitally transform the company and invest in incremental resources.”

In its nurse and allied segment, revenue per full-time equivalent per day was $454 in the second quarter compared with $375 in the year-ago quarter. The company noted a rise in demand coupled with a tight labor market caused average travel bill rates to increase over the prior year due to rising compensation required to attract healthcare professionals. As expected, bill rates began to normalize through the second quarter after reaching a peak in the first quarter.

The decrease in physician staffing revenue was attributed to a mix shift to lower bill-rate specialties.

Revenue by segment

Guidance

The company forecast third-quarter revenue of between $310 million and $320 million, a year-over-year increase of between 60% and 65%.

Share price and market cap

Shares in Cross Country were up 21.50% to $19.98 as of 11:54 a.m. Eastern time; the share price also set a new 52-week high during today's trading session when it reached $20.69, according to FT.com. The company has a market cap of $619.27 million.