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View All NewsRobert Half revenue rises 7% in Q1, international business leads growth
Robert Half International Inc. (NYSE: RHI) reported first-quarter revenue rose 7% on a same-billing-day, constant-currency basis. International revenue rose 16.3%, outpacing growth in US revenue of 4.2%.
US perm placement revenue rose 14.8% on a same-day, constant-currency basis in the first quarter; temporary and consulting staffing revenue posted growth of just 3.9%.
Robert Half noted in a filing with the US Securities and Exchange Commission that a lawsuit had been filed against the company on April 6 in Los Angeles County court claiming salaried recruiters were misclassified as exempt; it seeks unpaid wages. The suit was filed by Shari Dorff, but it seeks class action status. The company said it intends to vigorously defend itself in the litigation.
| (US$ thousands) | Q1 2018 | Q1 2017 | % change | Q1 2018 constant currency (same billing days) |
| Net service revenue | $1,395,333 | $1,287,370 | 8.4% | 6.7% |
| Gross margin | $572,366 | $525,828 | 8.9% | |
| Gross margin percentage | 41.0% | 40.8% | ||
| Net income | $96,167 | $78,521 | 22.5% |
Quote
Chairman and CEO Harold Messmer Jr. noted revenue growth across the board, adding “these gains were fueled by continued small business optimism, a growing global economy and low unemployment in professional occupations.”
Revenue by segment
| (US$ thousands) | Q1 2018 | Q1 2017 | % change | Q1 2018 constant currency (same billing days) |
| Accountemps | $471,589 | $436,539 | 8.0% | 6.6% |
| OfficeTeam | $261,152 | $236,179 | 10.6% | 8.2% |
| Robert Half Technology | $160,062 | $157,439 | 1.7% | 1.2% |
| Robert Half Management Resources | $173,485 | $157,449 | 10.2% | 7.0% |
| Robert Half Finance and Accounting | $121,400 | $103,633 | 17.1% | -- |
| Protiviti | $207,645 | $196,131 | 5.9% | 4.7% |
Revenue growth by geography and temp/perm
| Year-over-year revenue growth rates (constant currency, same billing day) | ||||||
| 2016 | 2017 | 2018 | ||||
| Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
| Global | ||||||
| Accountemps | -0.8% | -3.3% | -2.8% | -1.1% | 3.6% | 6.6% |
| OfficeTeam | -3.0% | -2.6% | 0.8% | 0.9% | 5.9% | 8.2% |
| Robert Half Technology | -3.4% | -5.2% | -5.1% | -5.2% | -2.2% | 1.2% |
| Robert Half Management Resources | -1.3% | 0.8% | 1.9% | 5.2% | 7.5% | 7.0% |
| Temporary and consultant staffing | -1.8% | -2.8% | -1.6% | -0.4% | 3.8% | 6.2% |
| Permanent placement staffing | -4.9% | -3.1% | 1.4% | 6.7% | 16.1% | 15.0% |
| United States | ||||||
| Temporary and consultant staffing | -3.5% | -5.6% | -3.5% | -3.0% | 1.3% | 3.9% |
| Permanent placement staffing | -8.1% | -7.6% | -1.6% | 3.2% | 13.2% | 14.8% |
| International | ||||||
| Temporary and consultant staffing | 5.3% | 9.4% | 6.4% | 10.2% | 14.0% | 15.5% |
| Permanent placement staffing | 2.9% | 8.4% | 8.7% | 15.1% | 22.8% | 16.0% |
Guidance
Robert Half expects second-quarter revenue to range from $1.40 billion to $1.46 billion, which implies year-over-year revenue growth of 7% at the midpoint range on a same-day, constant-currency basis.
Share price and market cap
Shares in Robert Half rose 5.47% to $60.59 as of 1:13 p.m. Eastern time. The company had a market cap of $7.36 billion.