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View All NewsKforce revenue up nearly 16%, cites strength in technology business
Fourth-quarter revenue rose 15.9% at Kforce Inc. (NASDAQ: KFRC). The increase in revenue per billing day was 17.8%. The Tampa, Florida-based IT and finance/account staffing provider also reported gross margin improved.
“Perhaps most notable in 2021 was the record level of full-year organic growth we delivered in our technology business of approximately 22%, which meaningfully accelerated as the year progressed to greater than 30% growth in the fourth quarter of 2021,” President and CEO Joseph Liberatore said.
| (US$ thousands) | Q4 2021 | Q4 2020 | % change |
| Revenue | $410,358 | $354,048 | 15.9% |
| Gross profit | $119,987 | $100,461 | 19.4% |
| Gross margin percentage | 29.2% | 28.4% | |
| Net income | $20,560 | $18,285 | 12.4% |
Technology direct-hire revenue at Kforce was up 84.9%.
Revenue by function and segment
| (US$ thousands) | Q4 2021 | Q4 2020 | % change |
| Total flex revenue | $410,358 | $354,048 | 15.9% |
| Total direct-hire revenue | $14,582 | $9,164 | 59.1% |
| Technology | |||
| Technology flex revenue | $337,962 | $262,266 | 28.9% |
| Technology direct-hire revenue | $8,462 | $4,577 | 84.9% |
| Total technology revenue | $346,424 | $266,843 | 29.8% |
| Finance & Accounting | |||
| Finance & Accounting flex revenue | $57,814 | $82,618 | -30.0% |
| Finance & Accounting direct-hire revenue | $6,120 | $4,587 | 33.4% |
| Total Finance & Accounting revenue | $63,934 | $87,205 | -26.7% |
For full-year 2021, revenue was up 13.0%, while gross margin improved two basis points.
Full-year results
| (US$ thousands) | FY 2021 | FY 2020 | % change |
| Revenue | $1,579,922 | $1,397,700 | 13.0% |
| Gross profit | $456,864 | $396,224 | 15.3% |
| Gross margin percentage | 28.9% | 28.3% | |
| Net income | $75,177 | $56,039 | 34.2% |
Guidance
Kforce forecast first-quarter revenue of between $403 million and $411 million, a year-over-year increase of between 11.0% and 13.2%.
It also forecast first-quarter gross margin of between 28.1% and 28.3%.
Share price and market cap
Shares in Kforce were up 7.80% to $73.40 as of 11:58 a.m. Eastern time; they were 9.91% below their 52-week high, according to FT.com. The company had a market cap of $1.46 billion.