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View All NewsRobert Half Q3 revenue down 13.8% with decreases across all service lines
Third-quarter revenue at professional staffing firm Robert Half fell 14.7% year over year on a reported basis to $1.56 billion, the group reported on Tuesday after markets closed. On an adjusted basis, revenue fell by 13.8% over the year.
Revenue came out ahead of Wall Street analysts' estimates of $1.54 billion,
For the three months ended September 30, 2023, net income was $96 million, down 42.5% on a reported basis.
“We delivered above-consensus top and bottom-line results for the third quarter, notwithstanding the ongoing macroeconomic uncertainty that lengthens both client and job candidate decision cycles. Both talent solutions and Protiviti exceeded expectations,” said M. Keith Waddell, president and chief executive officer at Robert Half. “Gross margins remained strong due to pricing discipline and the ongoing benefit from the rising mix of revenues from higher-skilled services. Our operating cost base also benefited from the targeted actions we have taken to align costs with revenues.”
| ($ thousands) | Q3 2023 | Q3 2022 | Change | % change adjusted |
| Service revenue | 1,563,812 | 1,833,455 | -14.7% | -13.8% |
| Gross margin | 640,939 | 787,609 | -18.6% | - |
| Gross margin percentage | 41.0% | 43.0% | - | - |
| Net income | 95,545 | 166,206 | -42.5% |
Revenue by service
| ($ thousands) | Q3 2023 | Q3 2022 | Change | % change adjusted |
| Contract talent solutions | ||||
| Finance and accounting | 676,588 | 805,229 | -16.0% | -15.2% |
| Administrative and customer support | 196,565 | 250,531 | -21.5% | -21.2% |
| Technology | 170,574 | 216,735 | -21.3% | -20.0% |
| Elimination of intersegment revenues | (100,630) | (132,745) | -24.2% | -23.8% |
| Total contract talent solutions | 943,097 | 1,139,750 | -17.3% | -16.4% |
| Permanent placement talent solutions | 139,931 | 182,329 | -23.3% | -22.5% |
| Protiviti | 480,784 | 511,376 | -6.0% | -4.9% |
Third quarter international revenue fell by 3.5% on a reported basis and by 5.3% on an adjusted basis. International contract talent solutions saw a 3.1% decline on a reported basis and a 4.9% fall on an adjusted basis. International permanent placement talent solutions fell by 13% on a reported basis and fell by 14.2% on an adjusted basis. Meanwhile, Protiviti saw a 0.3% uptick on a reported basis and a 1.5% decline on an adjusted basis.
In the US, third quarter revenue fell by 17.5% on a reported basis and was down by 15.9% on an adjusted basis. US contract talent solutions revenue fell by 20.7% over the year on a reported basis and was down 19.2% on an adjusted basis. Permanent placement talent solutions revenue fell by 26.9% on a reported basis and was down 25.5% on an adjusted basis. Protiviti was down 7.4% on a reported basis and down 5.6% on an adjusted basis.
For the nine-month period, Robert Half revenue stood at $4.92 billion, down 10.7% over the year.
“We remain confident — both in our ability to weather the current climate and in our future growth prospects as the macro landscape improves,” Waddell said.
Robert Half shares closed yesterday at $72.13, down 0.46% on the day and 11.57% above the 52 week low of $64.65 set on 31 May 2023. The company has a market cap of $7.72 billion.