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View All NewsRobert Half revenue slips in third quarter, despite international increase
Third-quarter revenue at professional staffing firm Robert Half International Inc. (NYSE: RHI) edged down 0.2% on a same billing-day, constant-currency basis.
US temporary staffing and consulting revenue fell 3.0% at the Menlo Park, Calif.-based staffing provider, but US direct-hire revenue rose 3.2%. But looking outside the US, international temporary and consulting staffing revenue rose 10.2% in the third quarter while international permanent placement revenue rose 15.1%.
| (US$ thousands) | Q3 2017 | Q3 2016 | % change | Q3 2017 constant currency (same billing days) |
| Net service revenue | $1,324,709 | $1,338,541 | -1.0% | -0.2% |
| Gross margin | $546,400 | $552,509 | -1.1% | |
| Gross margin percentage | 41.2% | 41.3% | ||
| Net income | $84,700 | $90,569 | -6.5% |
Quote
“Our third-quarter results were generally as expected and within the range of our previous guidance, led by our strong European operations,” Chairman and CEO Harold Messmer Jr. said. “Trends strengthened during the quarter, and we are very encouraged by the broad-based improvement in revenue growth rates that began in September and continued into October, particularly in the United States.”
Revenue by segment
| (US$ thousands) | Q3 2017 | Q3 2016 | % change | Q3 2017 constant currency (same billing days) |
| Accountemps | $443,376 | $452,338 | -2.0% | -1.1% |
| OfficeTeam | $246,207 | $245,445 | 0.3% | 0.9% |
| Robert Half Technology | $157,038 | $167,566 | -6.3% | -5.2% |
| Robert Half Management Resources | $158,187 | $150,899 | 4.8% | 5.2% |
| Robert Half Finance and Accounting | $111,333 | $105,117 | 5.9% | -- |
| Protiviti | $208,568 | $217,176 | -4.0% | -2.7% |
Revenue growth by geography and temp/perm
| Year-over-year revenue growth rates (constant currency, same billing day) | ||||||
| 2016 | 2017 | |||||
| Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | |
| Global | ||||||
| Accountemps | 6.5% | 4.9% | -0.8% | -3.3% | -2.8% | -1.1% |
| OfficeTeam | 0.6% | -1.3% | -3.0% | -2.6% | 0.8% | 0.9% |
| Robert Half Technology | 0.9% | -1.4% | -3.4% | -5.2% | -5.1% | -5.2% |
| Robert Half Management Resources | 9.4% | 3.7% | -1.3% | 0.8% | 1.9% | 5.2% |
| Temporary and consultant staffing | 4.5% | 2.1% | -1.8% | -2.8% | -1.6% | -0.4% |
| Permanent placement staffing | 2.1% | -4.5% | -4.9% | -3.1% | 1.4% | 6.7% |
| United States | ||||||
| Temporary and consultant staffing | 3.5% | 0.6% | -3.5% | -5.6% | -3.5% | -3.0% |
| Permanent placement staffing | 2.7% | -5.0% | -8.1% | -7.6% | -1.6% | 3.2% |
| International | ||||||
| Temporary and consultant staffing | 8.9% | 8.8% | 5.3% | 9.4% | 6.4% | 10.2% |
| Permanent placement staffing | 0.8% | -3.4% | 2.9% | 8.4% | 8.7% | 15.1% |
Share price and market cap
Shares in Robert Half rose 1.48% to $51.63 in early afternoon trading today, and the company had a market cap of $6.52 billion, according to Google.