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View All NewsKforce Q2 revenue rises 5%; growth in tech temp staffing
Kforce Inc. (NASD: KFRC) reported second-quarter revenue rose 5.4%. Revenue growth came from technology, the firm’s largest single segment. However, revenue fell 9.6% in finance and accounting, the company’s second-largest segment.
Overall, second-quarter flex revenue rose 5.6% at the Tampa, Fla.-based professional staffing provider. However, direct-hire revenue fell 9.5%.
| (US$ thousands) | Q2 2018 | Q2 2017 | % change |
| Revenue | $358,624 | $340,309 | 5.4% |
| Gross profit | $107,483 | $103,919 | 3.4% |
| Gross margin percentage | 30.0% | 30.5% | |
| Net income | $16,272 | $11,144 | 46.0% |
Kforce subsidiary Kforce Government Solutions Inc. posted a double-digit revenue increase. The division appointed President Maureen Coyle as CEO, effective July 1; she replaced Pat Moneymaker, who held the role since 2014 and remains chairman of the board.
Revenue by function and segment
| (US$ thousands) | Q2 2018 | Q2 2017 | % change |
| Total flex revenue | $342,105 | $324,015 | 5.6% |
| Total direct-hire revenue | $12,536 | $13,853 | -9.5% |
| Technology | |||
| Technology flex revenue | $244,509 | $222,744 | 9.8% |
| Technology direct-hire revenue | $5,254 | $5,625 | -6.6% |
| Total technology revenue | $249,763 | $228,369 | 9.4% |
| Finance & Accounting | |||
| Finance & Accounting flex revenue | $72,490 | $80,038 | -9.4% |
| Finance & Accounting direct-hire revenue | $7,282 | $8,228 | -11.5% |
| Total Finance & Accounting revenue | $79,772 | $88,266 | -9.6% |
| Government Solutions | |||
| Government Solutions flex revenue | $25,106 | $21,233 | 18.2% |
| Government Solutions product revenue | $3,983 | $2,441 | 63.2% |
| Government Solutions revenue | $29,089 | $23,674 | 22.9% |
Gross margin by segment
| Q2 2018 | Q2 2017 | |
| Technology flex | 27.2% | 26.9% |
| Finance & Accounting flex | 29.1% | 28.8% |
| Government solutions flex | 19.8% | 26.7% |
Quote
“As we head into the second half of 2018, we expect continued strength in our Tech Flex business, as companies continue to invest in technology to more effectively and efficiently meet the needs of their customers and improve their profitability, and are also focused on positioning our FA Flex business for future growth,” Chairman and CEO David Dunkel said.
Guidance
Kforce forecast third-quarter revenue of $359 million to $364 million, an increase of 5.3% to 6.7%. Gross margin is expected to be 29.7% to 29.9%.
Share price and market cap
Shares in Kforce rose 4.43% to $39.47 as of 1:52 p.m. Eastern time today. The company had a market cap of $973.77 million.