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View All NewsRobert Half revenue up 4% in Q2; global talent shortages persists
Revenue rose 4.1% at professional staffing firm Robert Half International Inc. (NYSE: RHI) in the second quarter and gross margin improved. On a constant currency basis, revenue was up 5.6%
While revenue rose across most business lines, it fell 2.7% in the OfficeTeam division. Revenue there had also fallen on a year-over-year basis in the first quarter.
The Menlo Park, California-based firm reported the quickest revenue growth in its Protiviti division, where revenue rose 16.6% in the second quarter.
“We saw solid demand for our staffing and Protiviti services during the second quarter,” said Harold Messmer, chairman and CEO. “Global talent shortages persist across our professional disciplines, particularly in the United States, where unemployment remains near a 50-year low.”
| (US$ thousands) | Q2 2019 | Q2 2018 | % change | Q2 2019 Non-GAAP* |
| Net service revenue | $1,516,385 | $1,457,054 | 4.1% | 5.6% |
| Gross margin | $637,541 | $607,118 | 5.0% | |
| Gross margin percentage | 42.0% | 41.7% | ||
| Net income | $114,612 | $109,315 | 4.8% |
Revenue by segment
| (US$ thousands) | Q2 2019 | Q2 2018 | % change |
| Accountemps | $486,992 | $480,563 | 1.3% |
| OfficeTeam | $261,034 | $268,362 | -2.7% |
| Robert Half Technology | $179,375 | $171,446 | 4.6% |
| Robert Half Management Resources | $175,311 | $167,603 | 4.6% |
| Robert Half Finance and Accounting | $140,894 | $135,038 | 4.3% |
| Protiviti | $272,779 | $234,042 | 16.6% |
Year-over-year growth rates
| Year-over-year revenue growth rates | ||||||||
| 2018 | 2019 | 2019 Non-GAAP* | ||||||
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q2 | ||
| Global | ||||||||
| Accountemps | 8.0% | 9.3% | 8.1% | 8.4% | 2.5% | 1.3% | 2.8% | |
| OfficeTeam | 10.6% | 9.8% | 7.7% | 4.0% | -3.5% | -2.7% | -1.2% | |
| Robert Half Technology | 1.7% | 8.6% | 12.4% | 11.4% | 7.4% | 4.6% | 6.4% | |
| Robert Half Management Resources | 10.2% | 7.2% | 2.8% | 4.1% | 2.1% | 4.6% | 12.0% | |
| Temporary and consultant staffing | 8.0% | 9.0% | 7.9% | 7.1% | 1.7% | 1.4% | 3.7% | |
| Permanent placement staffing | 17.1% | 19.9% | 16.5% | 12.8% | 8.4% | 4.3% | 6.2% | |
| Protiviti | 5.9% | 18.5% | 21.2% | 22.8% | 21.5% | 16.6% | 13.8% | |
| Total | 8.4% | 11.4% | 10.7% | 10.1% | 5.2% | 4.1% | 5.6% | |
| United States | ||||||||
| Temporary and consultant staffing | 3.4% | 5.6% | 6.8% | 7.4% | 3.4% | 3.5% | 3.8% | |
| Permanent placement staffing | 14.2% | 17.6% | 17.0% | 16.4% | 10.0% | 6.6% | 6.9% | |
| International | ||||||||
| Temporary and consultant staffing | 26.0% | 22.0% | 11.6% | 6.1% | -3.7% | -5.9% | 3.1% | |
| Permanent placement staffing | 23.6% | 25.0% | 15.4% | 5.6% | 4.9% | -0.6% | 4.4% | |
Share price and market cap
Share in Robert Half were up 6.6% to $62.68 as of 11:51 a.m. Eastern time, according to FT.com. The company had a market cap of $6.97 billion.
*Non-GAAP change has been adjusted for foreign currency translation, billing days and intercompany adjustments.