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View All NewsRobert Half revenue up 13%, US leads growth
Professional staffing firm Robert Half International Inc. (NYSE: RHI) reported revenue rose 12.7% in the fourth quarter to $1.22 billion with much of the growth taking place in the US. Gross margin edged up, and net income rose 25.7%.
The Menlo Park, Calif.-based staffing provider’s US operations led growth with US temporary and consulting staffing revenue up 13.8% year over year, and US permanent placement revenue up 20.8%.
Robert Half’s international temporary and consulting staffing operations posted revenue growth of 3.1%, but international permanent placement revenue fell 0.6%.
(US$ thousands) | Q4 2014 | Q4 2013 | % growth |
Revenue | $1,221,450 | $1,083,864 | 12.7% |
Gross margin | $500,757 | $443,216 | 13.0% |
Gross margin percentage | 41.0% | 40.9% | |
Net income | $84,053 | $66,885 | 25.7% |
Quote
“Revenue growth has broad-based and extended to both our US and non-US operations," said Chairman and CEO Harold M. Messmer Jr. "The US labor market has strengthened in recent months and skills shortages persist in professional discipline such as accounting and information technology. We are seeing similar trends outside the United States, although growth has been less robust. Employers in the United States added nearly 3 million jobs over the course of 2014, making it the best job year for job growth since 1999. Secular trends continue to shape the demand for interim talent. More and more companies are using temporary and consulting professionals as a permanent part of their human resources mix."
Revenue by segment
(US$ thousands) | Q4 2014 | Q4 2013 | % growth |
Accountemps | $414,176 | $377,735 | 9.6% |
OfficeTeam | $241,768 | $214,717 | 12.6% |
Robert Half Technology | $152,901 | $137,224 | 11.4% |
Robert Half Management Resources | $144,603 | $126,787 | 14.1% |
Robert Half Finance & Accounting | $96,718 | $85,769 | 12.8% |
Protiviti | $171,284 | $141,632 | 20.9% |
Revenue growth by geography and temp/perm
Year-over-year revenue growth rates | ||||||||
2013 | 2014 | |||||||
Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||
Global | ||||||||
Accountemps | -0.8% | -0.4% | 1.7% | 6.5% | 10.1% | 9.6% | ||
OfficeTeam | 2.5% | 3.0% | 4.7% | 9.1% | 14.1% | 12.6% | ||
Robert Half Technology | 11.8% | 14.1% | 9.3% | 7.8% | 11.0% | 11.4% | ||
Robert Half Management Resources | -0.2% | 0.7% | 5.6% | 12.4% | 18.9% | 14.1% | ||
Temporary and consulting staffing | 1.9% | 2.7% | 4.1% | 8.2% | 12.5% | 11.3% | ||
Permanent placement staffing | 7.9% | 6.6% | 11.1% | 13.8% | 16.0% | 12.8% | ||
United States | ||||||||
Temporary and consulting staffing | 4.5% | 5.0% | 5.9% | 9.3% | 13.2% | 13.8% | ||
Permanent placement staffing | 13.8% | 11.0% | 12.6% | 15.8% | 21.8% | 20.8% | ||
International | ||||||||
Temporary and consulting staffing | -5.9% | -4.2% | -1.2% | 4.6% | 10.4% | 3.1% | ||
Permanent placement staffing | -0.8% | 0.0% | 8.6% | 10.6% | 6.3% | -0.6% |
Full-year results
(US$ thousands) | 2014 | 2013 | % growth |
Revenue | $4,695,014 | $4,245,895 | 10.6% |
Gross margin | $1,922,916 | $1,723,092 | 11.6% |
Gross margin percentge | 41.0% | 40.6% | |
Net income | $305,928 | $252,192 | 21.3% |
Guidance
Robert Half estimated first-quarter revenue of between $1.95 billion and $1.245 billion, up from $1.084 billion in the first quarter of 2014.
Share price and market cap
Shares in Robert Half fell 0.29% in early morning trading to $59.04. The company had a market cap of $7.91 billion, according to Yahoo!