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View All NewsRobert Half Q4 revenue up 10% amid robust market, skill shortage
Fourth-quarter revenue rose 10.1% at Robert Half International Inc. (NYSE: RHI) amid a robust labor market and demand fueled by the skills shortage, according to the company. Revenue was up 10.3% on a constant-currency, same-billing day basis.
Temp staffing revenue rose 7.1% in the fourth quarter while permanent placement revenue rose 12.8%.
| (US$ thousands) | Q4 2018 | Q4 2017 | % change |
| Net service revenue | $1,481,658 | $1,346,282 | 10.1% |
| Gross margin | $620,062 | $553,146 | 12.1% |
| Gross margin percentage | 41.8% | 41.1% | |
| Net income | $113,564 | $47,047 | 141.4% |
Robert Half’s Protiviti division posted the fastest revenue growth, up 22.8% in the fourth quarter.
Revenue by segment
| (US$ thousands) | Q4 2018 | Q4 2017 | % change |
| Accountemps | $483,487 | $446,017 | 8.4% |
| OfficeTeam | $268,489 | $258,118 | 4.0% |
| Robert Half Technology | $174,829 | $156,969 | 11.4% |
| Robert Half Management Resources | $165,733 | $159,228 | 4.1% |
| Robert Half Finance and Accounting | $125,884 | $111,595 | 12.8% |
| Protiviti | $263,236 | $214,355 | 22.8% |
Quote
“Full-year 2018 revenues and operating income reached all-time-high levels for the company, with broad-based strength in our staffing and Protiviti operations,” said Harold Messmer Jr., chairman and CEO of Robert Half. “The US labor market remains very robust, with significant demand due to talent shortages across our professional disciplines.”
Full-year results
| (US$ thousands) | FY 2018 | FY 2017 | % change |
| Net service revenue | $5,800,271 | $5,266,789 | 10.1% |
| Gross margin | $2,410,014 | $2,163,812 | 11.4% |
| Gross margin percentage | 41.6% | 41.1% | |
| Net income | $434,288 | $290,584 | 49.5% |
Share price and market cap
Shares in Robert Half were up 7.6% to $65.36 at 12:49 p.m. Eastern time; the company had a market cap of $7.38 billion, according to FT.com.