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View All NewsRobert Half’s first-quarter revenue rises 8%
Low US unemployment in numerous professional occupations and stronger labor markets in key international locations boosted first-quarter results, Robert Half International Inc. (NYSE: RHI) reported. The Menlo Park, Calif.-based professional staffing firm announced net service revenue rose 8.1% $1.30 billion. The increase was 7.8% on a constant-currency, same billing day basis.
Gross margin narrowed to 40.8% from 41.0% in the year-ago quarter.
| (US$ thousands) | Q1 2016 | Q1 2015 | % change | Q1 2016 constant currency (same billing days) |
| Net service revenues | $1,302,625 | $1,205,563 | 8.1% | 7.8% |
| Gross margin | $531,972 | $494,087 | 7.7% | |
| Gross margin percentage | 40.8% | 41.0% | ||
| Net income | $83,416 | $77,922 | 7.1% |
In the US, temporary and consultant staffing rose 8.5% and permanent placement revenue rose 12.9%.
International temporary and consulting staffing revenue edged up 0.5% in the first quarter; however, the increase was 4.5% on a constant currency and same-billing day basis. International permanent placement revenue fell 2.8% in the first quarter but was up 2.0% on a constant currency, same-billing day basis.
Quote
“The competition for skilled talent is intense,” Chairman and CEO Harold M. Messmer Jr. said in a conference call with analysts. “Multiple offers and counteroffers are common for high-demand candidates, particularly in technology and accounting.”
Messmer continued, “Internationally we see higher demand for professional level talent in a number of markets, notwithstanding economic headwinds that persist outside the United States. We feel we will continue to benefit from a widening skills gap in a number of our professional specialty areas. Employers that are struggling to find needed talent are recognizing that flexible staffing can help them manage total labor costs and also increase the pool of potential full-time talent through temporary-to-hire arrangements.”
Revenue by segment
| (US$ thousands) | Q1 2016 | Q1 2015 | % change | Q1 2016 constant currency (same billing days) |
| Accountemps | $448,538 | $413,842 | 8.4% | 8.3% |
| OfficeTeam | $240,720 | $231,093 | 4.2% | 3.7% |
| Robert Half Technology | $164,273 | $153,744 | 6.8% | 6.2% |
| Robert Half Management Resources | $155,634 | $144,839 | 7.5% | 7.7% |
| Robert Half Finance and Accounting | $106,289 | $98,413 | 8.0% | -- |
| Protiviti | $187,171 | $163,632 | 14.4% | 13.7% |
Revenue growth by geography and temp/perm
| Year-over-year revenue growth rates | |||||||||
| 2014 | 2015 | 2016 | 2016 constant currency (same billing day) | ||||||
| Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q1 | |||
| Global | |||||||||
| Accountemps | 9.6% | 8.0% | 6.6% | 4.3% | 5.8% | 8.4% | 8.3% | ||
| OfficeTeam | 12.6% | 9.5% | 6.9% | 4.8% | 4.1% | 4.2% | 3.7% | ||
| Robert Half Technology | 11.4% | 16.2% | 16.6% | 13.3% | 9.6% | 6.8% | 6.2% | ||
| Robert Half Management Resources | 14.1% | 10.4% | 2.0% | -2.4% | 4.0% | 7.5% | 7.7% | ||
| Temporary and consultant staffing | 11.3% | 10.0% | 7.5% | 4.8% | 5.7% | 7.0% | 6.7% | ||
| Permanent placement staffing | 12.8% | 6.2% | 7.5% | 8.2% | 5.1% | 8.0% | 8.6% | ||
| United States | |||||||||
| Temporary and consultant staffing | 13.8% | 14.8% | 12.4% | 9.9% | 9.2% | 8.5% | 7.3% | ||
| Permanent placement staffing | 20.8% | 15.6% | 18.7% | 16.2% | 11.5% | 12.9% | 11.6% | ||
| International | |||||||||
| Temporary and consultant staffing | 3.1% | -6.0% | -9.3% | -12.8% | -7.2% | 0.5% | 4.5% | ||
| Permanent placement staffing | -0.6% | -9.8% | -11.9% | -7.3% | -7.8% | -2.8% | 2.0% | ||
Guidance
The company forecasts second-quarter revenue of $1.325 billion to $1.385 billion — a year-over-year increase of 6% at the midpoint of the range.
Share price and market cap
Shares in Robert Half fell 12.61% to $38.97 in early afternoon trading today and the company had a market cap of $5.05 billion, according to Yahoo!