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View All NewsKelly reports Q2 revenue up 26% in constant currency
Second-quarter revenue at Kelly (NASDAQ: KELYA) rose 26.2% on a constant currency basis as customer demand increased compared to the second quarter of last year, which coincided with the height of Covid-19’s impact.
“We’re encouraged by the healthy sales pipelines and new wins we’re seeing across all of our businesses,” President and CEO Peter Quigley said. “Our reinstatement of a dividend for the quarter reflects the progress we’re making with our specialization and M&A strategies, and our confidence in the economic recovery.”
| (US$ millions) | Q2 2021 | Q2 2020 | % change | % constant currency |
| Revenue | $1,258.1 | $975.3 | 29.0% | 26.2% |
| Gross profit | $231.0 | $189.2 | 22.1% | 19.6% |
| Gross margin | 18.4% | 19.4% | ||
| Net earnings | $24.0 | $41.1 | -41.6% |
Quigley noted outsourcing and consulting revenue — which includes MSP, RPO and other services — continues to exceed pre-Covid growth rates and education was on track with 2019 revenue. In addition, he said Kelly’s Softworld acquisition in April is already delivering top-line growth.
Revenue by segment
| (US$ millions) | Q2 2021 | Q2 2020 | % change | % constant currency |
| Professional & industrial | $466.5 | $406.4 | 14.8% | 14.0% |
| Science, engineering and technology | $298.2 | $247.3 | 20.6% | 20.1% |
| Education | $105.9 | $25.1 | 322.1% | 322.1% |
| Outsourcing & consulting | $107.3 | $83.6 | 28.2% | 26.1% |
| International | $280.4 | $213.0 | 31.6% | 21.6% |
Revenue rose across all geographies with the exception of the UK.
Revenue by geography
| (US$ millions) | Q2 2021 | Q2 2020 | % change | % constant currency |
| Americas | ||||
| United States | $894.6 | $700.1 | 27.8% | 27.8% |
| Canada | $39.5 | $25.6 | 54.4% | 36.8% |
| Mexico | $33.1 | $22.5 | 47.2% | 26.2% |
| Puerto Rico | $26.9 | $20.0 | 34.3% | 34.3% |
| Brazil | - | $6.1 | nm | nm |
| Europe | ||||
| France | $57.5 | $39.9 | 44.2% | 31.7% |
| Switzerland | $54.0 | $47.4 | 13.8% | 7.5% |
| Portugal | $40.6 | $23.8 | 70.7% | 55.9% |
| Russia | $33.7 | $29.3 | 15.2% | 17.9% |
| Italy | $19.4 | $13.3 | 46.1% | 33.6% |
| UK | $17.7 | $17.8 | -0.6% | -11.8% |
| Germany | $8.5 | $7.1 | 20.6% | 10.3% |
| Ireland | $6.3 | $4.1 | 53.5% | 40.2% |
| Other Europe | $17.0 | $11.5 | 47.7% | 32.9% |
| Asia Pacific | ||||
| Total APAC | $9.3 | $6.8 | 34.5% | 20.9% |
Guidance
Kelly forecast revenue to increase by between 11% and 12% for the full year.
Share price and market cap
Shares in Kelly were down 2.38% to $23.34 as of 12:38 p.m. Eastern time; shares had been trading over the past year in a range from $15.56 to $26.98. The company had a market cap of $939.5 million.