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View All NewsRobert Half reports strong demand, Q4 revenue up 7%
Demand for professional staffing remained strong thanks to a healthy US job market and low unemployment along with an improving economic backdrop in non-US markets, according to Robert Half International Inc. (NYSE: RHI). The Menlo Park, Calif.-based professional staffing firm reported fourth-quarter revenue rose 6.8% to $1.30 billion.
| (US$ thousands) | Q4 2015 | Q4 2014 | % change | Q4 2015 constant currency (same billing days) |
| Net service revenues | $1,304,594 | $1,221,450 | 6.8% | 8.7% |
| Gross margin | $540,081 | $500,757 | 7.9% | |
| Gross margin percentage | 41.4% | 41.0% | ||
| Net income | $93,443 | $84,053 | 11.2% |
Temporary staffing and permanent placement revenue in the US rose by 9.2% and 11.5% respectively.
Fourth-quarter international temporary and consulting staffing revenue fell 7.2% in the fourth quarter; however, this revenue rose 4.4% on a constant currency and same-billing day basis. International permanent placement revenue with fell 7.8% in the fourth quarter but rose 3.5% on a constant currency, same-billing day basis.
Quote
“We anticipate the high demand for skilled talent will remain a growth driver for us,” Chairman and CEO Harold M. Messmer Jr. said in a conference call with analysts. “While the stock market has been volatile and economic uncertainty persists, the US labor market remains strong, and international markets have also started to rebound.”
Revenue by segment
| (US$ thousands) | Q4 2015 | Q4 2014 | % change | Q4 2015 constant currency (same billing days) |
| Accountemps | $438,383 | $414,176 | 5.8% | 7.5% |
| OfficeTeam | $251,614 | $241,768 | 4.1% | 5.8% |
| Robert Half Technology | $167,551 | $152,901 | 9.6% | 10.2% |
| Robert Half Management Resources | $150,353 | $144,603 | 4.0% | 7.1% |
Revenue growth by geography and temp/perm
| Year-over-year revenue growth rates | ||||||||
| 2014 | 2015 | 2015 constant currency (same billing day) | ||||||
| Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q4 | ||
| Global | ||||||||
| Accountemps | 10.1% | 9.6% | 8.0% | 6.6% | 4.3% | 5.8% | 7.5% | |
| OfficeTeam | 14.1% | 12.6% | 9.5% | 6.9% | 4.8% | 4.1% | 5.8% | |
| Robert Half Technology | 11.0% | 11.4% | 16.2% | 16.6% | 13.3% | 9.6% | 10.9% | |
| Robert Half Management Resources | 18.9% | 14.1% | 10.4% | 2.0% | -2.4% | 4.0% | 7.1% | |
| Temporary and consultant staffing | 12.5% | 11.3% | 10.0% | 7.5% | 4.8% | 5.7% | 7.4% | |
| Permanent placement staffing | 16.0% | 12.8% | 6.2% | 7.5% | 8.2% | 5.1% | 8.2% | |
| United States | ||||||||
| Temporary and consultant staffing | 13.2% | 13.8% | 14.8% | 12.4% | 9.9% | 9.2% | 8.2% | |
| Permanent placement staffing | 21.8% | 20.8% | 15.6% | 18.7% | 16.2% | 11.5% | 10.5% | |
| International | ||||||||
| Temporary and consultant staffing | 10.4% | 3.1% | -6.0% | -9.3% | -12.8% | -7.2% | 4.4% | |
| Permanent placement staffing | 6.3% | -0.6% | -9.8% | -11.9% | -7.3% | -7.8% | 3.5% | |
Full-year revenue
| (US$ thousands) | FY 2015 | FY 2014 | % change |
| Net service revenues | $5,094,933 | $4,695,014 | 8.5% |
| Gross margin | $2,114,471 | $1,922,916 | 10.0% |
| Gross margin percentage | 41.5% | 41.0% | |
| Net income | $357,796 | $305,928 | 17.0% |
Guidance
The company forecasts first-quarter revenue of US$1.27 billion to $1.33 billion — a year-over-year increase of 8% at the midpoint of the range.
Share price and market cap
Shares in Robert Half were down 5.93% to $39.52 in early afternoon trading, according to Yahoo! The company had a market cap of $5.24 billion.