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View All NewsRGP revenue up 27.5% in fiscal Q4, driven by growing pipeline and size of deals
Resources Connection Inc. (NASDAQ: RGP) reported revenue rose 27.5% on a same-day, constant currency basis in its fiscal fourth quarter ended May 28. Gross margin also improved.
The Irvine, California-based professional staffing provider posted its highest revenue in more than a decade.
“We are very excited to have produced the strongest revenue and adjusted EBITDA we’ve seen in over 10 years for both the fourth quarter and full fiscal year,” CEO Kate Duchene said. “We accomplished this by successfully executing on our record pipeline of opportunities across all businesses while remaining disciplined on the cost front.”
(US$ thousands) | Q4 2022 | Q4 2021 | % change | % constant currency, billing day adjusted |
Revenue | 217,031 | 172,318 | 25.9% | 27.5% |
Gross profit | 89,675 | 68,283 | 31.3% | |
Gross margin | 41.3% | 39.6% | ||
Net income | 20,527 | 23,248 | -11.7% |
RGP reported fourth-quarter revenue was driven by a growing pipeline and size of closed deals over recent quarters, which enabled it to attain growth across most client segments including strategic global and regional accounts.
Revenue by geography
(US$ thousands) | Q4 2022 | Q4 2021 | % change | % constant currency, billing day adjusted |
North America | 183,817 | 141,518 | 29.9% | 29.9% |
Europe | 19,433 | 19,371 | 0.3% | 9.1% |
Asia Pacific | 13,781 | 11,429 | 20.6% | 29.1% |
RGP noted full-year growth benefited from a renewed focus on raising bill rates.
“As we look ahead, we are greatly encouraged by the solid trajectory of our pipeline supported by reoccurring projects from our strategic clients as they leverage RGP’s experienced talent to help them execute on transformations and fill on-demand talent gaps,” Duchene said.
Full-year revenue
(US$ thousands) | FY 2022 | FY2021 | % change | % constant currency, billing day adjusted |
Revenue | 805,018 | 629,516 | 27.9% | 28.7% |
Gross profit | 316,642 | 241,404 | 31.2% | |
Gross margin | 39.3% | 38.3% | ||
Net income | 67,175 | 25,229 | 166.3% |
Share price and market cap
Shares in Resources Connection were up 11.70% to $22.62 as of 1:15 p.m. Eastern time today; they set a new 52-week high during today's trading session when they reached $23.18, according to FT.com. The company had a market cap of $678.3 million.