Resource Connection Inc. (NASDAQ: RGP), which operates as RGP, reported revenue rose 1.9% on a same-day, constant currency basis to $200.4 million in its fiscal second quarter ended Nov. 26. However, the Irvine, California-based professional staffing firm reported revenue grew 5.7% on a same-day constant currency basis when excluding taskforce, a company it sold in its fiscal first quarter of 2023.

“Our strong performance in the second quarter of fiscal 2023, especially continued top-line growth and gross margin improvement over a very robust prior year comparative, validates our business model and our clients’ migration toward value-oriented partners,” said RGP CEO Kate W. Duchene.

RGP cited stable demand during the second quarter and a healthy growth in strategic client accounts. The company noted billable hours were off 0.7% because of the divestiture of taskforce; however, its average billable rate increased by 0.8%, or 2.4% in constant currency, compared to the year-ago quarter.

Gross margin improved at RGP primarily due to a 270 basis-point improvement in pay/bill ratio.

Share price and market cap

Resources Connection shares were down 14.69% to $15.89 as of 1:36 p.m. Eastern time; they set a new 52-week low in trading today, according to FT.com. The company had a market cap of $628.4 million.