Daily News
View All NewsKforce revenue up 8.2% in Q2, cites strong tech segment
Kforce Inc. (NASDAQ: KFRC) reported second-quarter revenue rose 8.2% year over year to $436.5 million. Net income rose 27% to $26.9 million.
The Tampa, Florida-based professional staffing firm cited continued growth in its technology segment, with revenue up 7% sequentially and 24% year over year.
However, Kforce reported revenue fell 44.1% year over year in its finance/accounting operations due to planned reductions in its Covid-related business and repositioning efforts.
| (US$ thousands) | Q2 2022 | Q2 2021 | % change |
| Revenue | $436,516 | $403,614 | 8.2% |
| Gross profit | $131,072 | $118,931 | 10.2% |
| Gross margin percentage | 30.0% | 29.5% | |
| Net income | $26,916 | $21,188 | 27.0% |
“I am pleased with our solid overall performance in the second quarter, which was fueled again by significant sequential and year-over-year growth in our technology business,” President and CEO Joseph Liberatore said.
“The macro environment has become a bit cloudier over the last several months, and concerns as to the pace of overall economic growth have dominated headlines. We believe that we are ideally positioned heading into this uncertain macro landscape; however, it ultimately plays out.”
Revenue by function and segment
| (US$ thousands) | Q2 2022 | Q2 2021 | % change |
| Total flex revenue | $419,700 | $391,362 | 7.2% |
| Total direct-hire revenue | $16,816 | $12,252 | 37.3% |
| Technology | |||
| Technology flex revenue | $375,507 | $304,645 | 23.3% |
| Technology direct-hire revenue | $9,088 | $6,083 | 49.4% |
| Total technology revenue | $384,595 | $310,728 | 23.8% |
| Finance & Accounting | |||
| Finance & Accounting flex revenue | $44,193 | $86,717 | -49.0% |
| Finance & Accounting direct-hire revenue | $7,728 | $6,169 | 25.3% |
| Total Finance & Accounting revenue | $51,921 | $92,886 | -44.1% |
“Growth in our technology business of approximately 7% sequentially and 24% year over year continues to be the key driver to our success,” COO Kye Mitchell said.
Guidance
The third quarter will have the same number of billing days as the third quarter of last year. Kforce forecast revenue of between $430 million and $438 million with gross profit margin of between 29.4% and 29.6%.
Share price and market cap
Shares in Kforce were down 6.43% to $62.39 as of 11:51 a.m. Eastern time; they were 11.53% above their 52-week low, according to FT.com. The company had a market cap of $1.41 billion.