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View All NewsKforce revenue up 10% in Q3, reports IT has best prospects for sustained growth
Third-quarter revenue rose 10.2% year over year at Kforce Inc. (NASDAQ: KFRC) with its IT staffing operations leading the way.
Chairman and CEO David Dunkel said the Tampa, Florida-based professional staffing provider saw only minimal declines in tech staffing revenue during the height of the pandemic and tech revenue is now up nearly 24% from its third-quarter 2019 level.
“There is no other market we would want to be focused in other than the domestic technology staffing and solutions market because it has, in our view, the greatest prospects for strong, sustained, and profitable revenue growth,” Dunkel said.
| (US$ thousands) | Q3 2021 | Q3 2020 | % change |
| Revenue | $402,725 | $365,424 | 10.2% |
| Gross profit | $119,264 | $103,878 | 14.8% |
| Gross margin percentage | 29.6% | 28.4% | |
| Net income | $20,168 | $18,763 | 7.5% |
While IT staffing revenue surged, finance/accounting revenue fell 37.7% year over year in the third quarter, although direct-hire revenue rose. Kforce noted the decrease in finance/accounting temporary staffing revenue was driven by planned reductions in Covid project-specific revenue.
Revenue by function and segment
| (US$ thousands) | Q3 2021 | Q3 2020 | % change |
| Total flex revenue | $389,173 | $356,687 | 9.1% |
| Total direct-hire revenue | $13,552 | $8,737 | 55.1% |
| Technology | |||
| Technology flex revenue | $330,170 | $256,118 | 28.9% |
| Technology direct-hire revenue | $7,060 | $4,133 | 70.8% |
| Total technology revenue | $337,230 | $260,251 | 29.6% |
| Finance & Accounting | |||
| Finance & Accounting flex revenue | $59,003 | $100,569 | -41.3% |
| Finance & Accounting direct-hire revenue | $6,492 | $4,604 | 41.0% |
| Total Finance & Accounting revenue | $65,495 | $105,173 | -37.7% |
Guidance
Kforce President Joseph Liberatore said the company expects technology revenue to grow in the high 20% range on a year-over-year, same-billing-day-basis.
Overall, the company expects total fourth-quarter revenue of between $394 million and $402 million, a year-over-year increase of between 11.3% and 13.5%.
Share price and market cap
Shares in Kforce were up 2.82% to $68.46 as of 12:46 p.m. Eastern time today; shares set a new 52-week high today when they reached $71.49, according to FT.com. The company has a market cap of $1.44 billion.