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View All NewsRobert Half revenue up 10% in Q2 with international, direct-hire leading way
Professional staffing firm Robert Half International Inc. (NYSE: RHI) reported second-quarter revenue rose 9.6% on a same billing-day, constant-currency basis. The fastest growth was on the direct hire (perm placement) and international sides of its business.
International revenue at the Menlo Park, Calif.-based firm rose 18.1% in the second-quarter on a constant currency, same billing-day basis. This compares to 7.2% growth in the US.
US perm placement revenue rose 17.3% on a same-day, constant-currency basis in the second quarter; temporary and consulting staffing revenue posted growth of 5.3%. However, international temporary and consultant staffing revenue rose 16.7% in the second quarter and international permanent placement revenue rose 18.8%.
| (US$ thousands) | Q2 2018 | Q2 2017 | % change | Q2 2018 constant currency (same billing days) |
| Net service revenue | $1,457,054 | $1,308,428 | 11.4% | 9.6% |
| Gross margin | $607,118 | $538,438 | 12.8% | |
| Gross margin percentage | 41.7% | 41.2% | ||
| Net income | $109,315 | $80,316 | 36.1% |
Quote
“We saw across-the-board strength in our US and international staffing and Protiviti operations during the second quarter, as year-over-year growth rates accelerated versus the first quarter,” said Chairman and CEO Harold Messmer Jr. “Favorable global economic trends, a robust job market, and positive business sentiment among our small and midsize client base contributed to the strong quarter.”
Revenue by segment
| (US$ thousands) | Q2 2018 | Q2 2017 | % change | Q2 2018 constant currency (same billing days) |
| Accountemps | $480,563 | $439,734 | 9.3% | 7.8% |
| OfficeTeam | $268,362 | $244,369 | 9.8% | 7.7% |
| Robert Half Technology | $171,446 | $157,832 | 8.6% | 7.5% |
| Robert Half Management Resources | $167,603 | $156,361 | 7.2% | 7.9% |
| Robert Half Finance and Accounting | $135,038 | $112,653 | 19.9% | -- |
| Protiviti | $234,042 | $197,479 | 18.5% | 14.2% |
Revenue growth by geography and temp/perm
| Year-over-year revenue growth rates (constant currency, same billing day) | ||||||
| 2017 | 2018 | |||||
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |
| Global | ||||||
| Accountemps | -3.3% | -2.8% | -1.1% | 3.6% | 6.6% | 7.8% |
| OfficeTeam | -2.6% | 0.8% | 0.9% | 5.9% | 8.2% | 7.7% |
| Robert Half Technology | -5.2% | -5.1% | -5.2% | -2.2% | 1.2% | 7.5% |
| Robert Half Management Resources | 0.8% | 1.9% | 5.2% | 7.5% | 7.0% | 7.9% |
| Temporary and consultant staffing | -2.8% | -1.6% | -0.4% | 3.8% | 6.2% | 7.7% |
| Permanent placement staffing | -3.1% | 1.4% | 6.7% | 16.1% | 15.0% | 18.0% |
| United States | ||||||
| Temporary and consultant staffing | -5.6% | -3.5% | -3.0% | 1.3% | 3.9% | 5.3% |
| Permanent placement staffing | -7.6% | -1.6% | 3.2% | 13.2% | 14.8% | 17.3% |
| International | ||||||
| Temporary and consultant staffing | 9.4% | 6.4% | 10.2% | 14.0% | 15.5% | 16.7% |
| Permanent placement staffing | 8.4% | 8.7% | 15.1% | 22.8% | 16.0% | 18.8% |
Guidance
Robert Half expects third-quarter revenue to range from $1.43 billion to $1.49 billion, which implies year-over-year revenue growth of 10% at the midpoint range on a same-day, constant-currency basis.
Share price and market cap
Shares in Robert Half rose 6.16% to $73.22 as of 1:38 p.m. Eastern time. The company had a market cap of approximately $8.89 billion.