Randstad nv reported revenue rose 2% on an organic basis in the fourth quarter — with particular strength in its in-house, professionals, perm and RPO businesses — to 7.00 billion euros (US$7.48 billion). Still, in some geographies, revenue was down. US revenue fell by 5% year over in the fourth quarter on an organic basis, though, Randstad’s professionals business in the US rose by 1%. Canadian revenue held stable.

Overall, Randstad’s gross margin improved by 40 basis points in the quarter.

“Client activity moderated in the fourth quarter, and this trend has continued into 2023,” CEO Sander van ‘t Noordende said. “However, our deep understanding of talent and clients, together with our experienced leadership team positions us well to navigate the macroeconomic environment.”

Perm fees rose by 1% year over year in the fourth quarter on an organic basis, but that compares to a year-over-year increase of 23% in the third quarter. Europe reported growth in perm fees of 13%, but perm fees fell 12% in North America and 5% in the “rest of the world.”

Randstad Sourceright revenue rose 7% on an organic basis with RPO revenue up 17%. Monster revenue fell 12% year over year. Randstad Sourceright and Monser are included in the company’s “global business” segment.

While North American revenue fell 5% year over year on an organic basis, revenue was up in most other geographies except for Belgium and Luxembourg and Iberia.

Randstad also announced its CFO is stepping down and other leadership changes.

Organic change excludes the impact of currencies, acquisitions, disposals, reclassifications and working days per quarter.

Guidance

Randstad reported the macroeconomic environment softened across its markets in the fourth quarter, which translated into lower hiring activities from clients. This trend has continued into the start of 2023, and January revenue was down modestly year over year on an organic basis.

Share price and market cap

Shares in Randstad closed down 0.90% to 59.16 euros (US$63.25) today in Europe; they were 12.36% below their 52-week high, according to FT.com. The company had a market cap of 10.98 billion euros (US$11.74 billion).