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View All NewsKforce revenue up 13.0% in Q1, strong tech segment growth
Kforce Inc. (NASDAQ; KFRC) reported first-quarter revenue rose 13.0% year over year when adjusted for billing days — the first quarter of 2022 had one more billing day than the first quarter of 2021. The Tampa, Florida-based professional staffing firm cited good growth in its technology segment but noted revenue fell in its finance/accounting operations.
| (US$ thousands) | Q1 2022 | Q1 2021 | % change | % change (billing-day basis) |
| Revenue | $416,967 | $363,225 | 14.8% | 13.0% |
| Gross profit | $123,886 | $98,682 | 25.5% | |
| Gross margin percentage | 29.7% | 27.2% | ||
| Net income | $19,181 | $13,261 | 44.6% |
“It has been widely publicized that the Covid-19 pandemic accelerated many years of technology adoption and advancements,” said Joseph Liberatore, Kforce president and CEO. “This has resulted in a corresponding acceleration in demand for highly skilled technology talent to assist companies across every industry to rapidly digitize business models.”
Technology revenue was up 26.7% on a same-billing day basis.
However, Kforce reported finance/accounting staffing revenue fell 32.9% on a same-billing day basis in the first quarter because of planned reductions in the company’s Covid-related business and repositioning efforts.
Revenue by function and segment
| (US$ thousands) | Q1 2022 | Q1 2021 | % change | % change (billing-day basis) |
| Total flex revenue | $401,866 | $353,847 | 13.6% | 11.8% |
| Total direct-hire revenue | $15,101 | $9,378 | 61.0% | |
| Technology | ||||
| Technology flex revenue | $351,716 | $274,784 | 28.0% | 26.0% |
| Technology direct-hire revenue | $8,189 | $4,776 | 71.5% | - |
| Total technology revenue | $359,905 | $279,560 | 28.7% | 26.7% |
| Finance & Accounting | ||||
| Finance & Accounting flex revenue | $50,150 | $79,063 | -36.6% | -37.6% |
| Finance & Accounting direct-hire revenue | $6,912 | $4,602 | 50.2% | - |
| Total Finance & Accounting revenue | $57,062 | $83,665 | -31.8% | -32.9% |
“The operating trends we are seeing in our Technology business have remained strong,” said Kye Mitchell, chief operations officer. “We saw acceleration in our average bill rates, which grew nearly 4% sequentially and just over 6% year-over-year to approximately $85 per hour.”
Guidance
Kforce forecast 2022 second-quarter revenue of between $436 million and $444 million with gross profit margin projected to be between 30.4% and 30.6%.
Share price and market cap
Shares in Kforce were up 1.17% to $71.17 as of 11:55 a.m. Eastern time; they were 12.65% below their 52-week high, according to FT.com. The company had a market cap of $1.50 billion.