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View All NewsRobert Half revenue rises 5% in Q4, fastest growth comes from international operations
Robert Half International Inc. (NYSE: RHI) reported fourth-quarter rose 5.0% on a same billing-day, constant-currency basis. Revenue fell in IT staffing, but rose in other verticals. The fastest growth took place in the professional staffing provider’s international markets where perm placement revenue rose 22.8% on a constant currency, same billing day and temporary and consulting staffing revenue rose 14%.
In the US, perm placement revenue rose 13.2% on a same billing day basis, but temporary and consulting staffing revenue rose 1.3%.
| (US$ thousands) | Q4 2017 | Q4 2016 | % change | Q4 2017 constant currency (same billing days) |
| Net service revenue | $1,346,282 | $1,265,073 | 6.4% | 5.0% |
| Gross margin | $553,146 | $519,202 | 6.5% | |
| Gross margin percentage | 41.1% | 41.0% | ||
| Net income | $47,047 | $77,788 | -39.5% |
Fourth-quarter earnings included the estimated impact of a one-time, noncash charge to the company’s provision for income taxes of $34 million resulting from the recently enacted Tax Cuts and Jobs Act. Net income was $81 million excluding the charge.
Quote
“The US labor market continues to tighten, resulting in talent shortages in some occupations and higher demand for our services,” said Chairman and CEO Harold Messmer Jr.
Revenue by segment
| (US$ thousands) | Q4 2017 | Q4 2016 | % change | Q4 2017 constant currency (same billing days) |
| Accountemps | $446,017 | $425,158 | 4.9% | 3.6% |
| OfficeTeam | $258,118 | $239,858 | 7.6% | 5.9% |
| Robert Half Technology | $156,969 | $159,400 | -1.5% | -2.2% |
| Robert Half Management Resources | $159,228 | $144,865 | 9.9% | 7.5% |
| Robert Half Finance and Accounting | $111,595 | $94,469 | 18.1% | -- |
| Protiviti | $214,355 | $201,323 | 6.5% | 5.5% |
Revenue growth by geography and temp/perm
| Year-over-year revenue growth rates (constant currency, same billing day) | ||||||
| 2016 | 2017 | |||||
| Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| Global | ||||||
| Accountemps | 4.9% | -0.8% | -3.3% | -2.8% | -1.1% | 3.6% |
| OfficeTeam | -1.3% | -3.0% | -2.6% | 0.8% | 0.9% | 5.9% |
| Robert Half Technology | -1.4% | -3.4% | -5.2% | -5.1% | -5.2% | -2.2% |
| Robert Half Management Resources | 3.7% | -1.3% | 0.8% | 1.9% | 5.2% | 7.5% |
| Temporary and consultant staffing | 2.1% | -1.8% | -2.8% | -1.6% | -0.4% | 3.8% |
| Permanent placement staffing | -4.5% | -4.9% | -3.1% | 1.4% | 6.7% | 16.1% |
| United States | ||||||
| Temporary and consultant staffing | 0.6% | -3.5% | -5.6% | -3.5% | -3.0% | 1.3% |
| Permanent placement staffing | -5.0% | -8.1% | -7.6% | -1.6% | 3.2% | 13.2% |
| International | ||||||
| Temporary and consultant staffing | 8.8% | 5.3% | 9.4% | 6.4% | 10.2% | 14.0% |
| Permanent placement staffing | -3.4% | 2.9% | 8.4% | 8.7% | 15.1% | 22.8% |
Full-year revenue
| (US$ thousands) | FY 2017 | FY 2016 | % change |
| Net service revenues | $5,266,789 | $5,250,399 | 0.3% |
| Gross margin | $2,163,812 | $2,160,676 | 0.1% |
| Gross margin percentage | 41.1% | 41.2% | |
| Net income | $290,584 | $343,389 | -15.4% |
Share price and market cap
Shares in Robert Half rose 1.37% to $58.19 as of 1:03 p.m. Eastern time. The company had a market cap of $7.16 billion.