Daily News
View All NewsKforce Q1 revenue rises 10% on billing-day basis, sees tech staffing growth ahead
Professional staffing firm Kforce Inc. (NASDAQ: KFRC) reported revenue rose 10.1% year over year on a same-billing day basis in the first quarter and was up 1.0% sequentially. The Tampa, Florida-based company noted 6.3% growth on a billing-day basis (4.7% reported) in its technology temporary staffing business during Q1, but growth is expected to accelerate into the mid to high teens year over year in the second quarter.
| (US$ thousands) | Q1 2021 | Q1 2020 | % change | % change (billing-day basis) |
| Revenue | $363,225 | $335,208 | 8.4% | 10.1% |
| Gross profit | $98,682 | $94,524 | 4.4% | |
| Gross margin percentage | 27.2% | 28.2% | ||
| Net income | $13,261 | $9,106 | 45.6% |
“Given the momentum we have carried into the second quarter and continue to build upon, we expect that revenue growth in our technology business could meaningfully accelerate to the mid to high teens on a year-over-year billing-day basis,” Kforce President Joseph Liberatore said.
“This significant above-market growth is compounding our success, as technology revenues significantly outperformed the market in the depths of the pandemic, only declining 3% in the second quarter of 2020 and 1% for the full year 2020,” Liberatore said.
Revenue by segment
| (US$ thousands) | Q1 2021 | Q1 2020 | % change |
| Total flex revenue | $353,847 | $326,109 | 8.5% |
| Total direct-hire revenue | $9,378 | $9,099 | 3.1% |
| Technology | |||
| Technology flex revenue | $274,784 | $262,569 | 4.7% |
| Technology direct-hire revenue | $4,776 | $4,215 | 13.3% |
| Total technology revenue | $279,560 | $266,784 | 4.8% |
| Finance & Accounting | |||
| Finance & Accounting flex revenue | $79,063 | $63,540 | 24.4% |
| Finance & Accounting direct-hire revenue | $4,602 | $4,884 | -5.8% |
| Total Finance & Accounting revenue | $83,665 | $68,424 | 22.3% |
Guidance
The second quarter will have the same number of billing days as the second quarter of last year. Kforce forecast revenue of between $387 million and $397 million, a year-over-year increase of between 12.8% and 15.7%.
Share price and market cap
Shares in Kforce were up 5.00% to $60.25 as of noon Eastern time; they set a new 52-week high during today’s trading, according to FT.com. The company had a market cap of $1.27 billion.