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View All NewsRobert Half revenue down in Q4 but notes ‘positive backdrop’ going into 2024
Robert Half Inc. (NYSE: RHI) reported that it sees a more positive backdrop heading into this year when it announced fourth-quarter earnings on 30 January, though Q4 revenue fell 15.2% year over year when adjusted for the effects of currencies and billing days.
“We delivered above-consensus top- and bottom-line results for the fourth quarter, with Protiviti leading the way,” President and CEO M. Keith Waddell said. “Global labour demand continues to be resilient, and talent shortages persist, although both are modestly below their peaks. We are encouraged that our improving weekly revenue trends that began in the third quarter and continued into the fourth quarter are approaching a positive inflection point.”
In the company’s Protiviti division, revenue fell 7.5% on an adjusted basis, which includes adjustment for currency impacts and billing days.
Overall, perm placement revenue at the professional staffing provider fell 22.6% on an adjusted basis, while contract staffing revenue fell 17.7%.
Looking at Robert Half’s revenue by geography, US revenue was down 16.7% year over year on an adjusted basis in the fourth quarter. International revenue was down 9.8%, on an adjusted basis.
Waddell noted in a conference call with analysts that job-opening demand remains above historical levels and candidate supply remains tight.
“The Great Resignation following Covid has given way to the Big Stay, and employee attrition is down significantly across the globe. That said, the tone of client discussions has improved in the last 90 days due to some combination of lower inflation, a more favorable interest rate policy, fewer predictions of pending recession and newly approved staffing levels resulting from the annual budget cycle,” Waddell said. “These factors contribute to a more positive backdrop heading into 2024 than we saw a year ago.”
| (USD thousands) | Q4 2023 | Q4 2022 | % change | % change adjusted |
| Service revenue | 1,472,892 | 1,727,026 | -14.7% | -15.2% |
| Gross margin | 584,164 | 719,047 | -18.8% | - |
| Gross margin percentage | 39.7% | 41.6% | - | - |
| Net income | 87,304 | 147,653 | -40.9% | - |
Q4 service revenue
| Finance and accounting | 635,281 | 767,354 | -17.2% | -17.8% |
| Administrative and customer support | 189,471 | 233,056 | -18.7% | -19.4% |
| Technology | 163,724 | 209,009 | -21.7% | -21.8% |
| Elimination of intersegment revenue | (101,098) | (137,738) | - | - |
| Total contract talent solutions | 887,378 | 1,071,681 | -17.2% | -17.7% |
| Permanent placement | 121,564 | 155,948 | -22.0% | -22.6% |
| Protiviti | 463,950 | 499,397 | -7.1% | -7.5% |
Full year results
| (USD thousands) | FY 2023 | FY 2022 | % change | % change adjusted |
| Service revenue | 6,392,517 | 7,238,142 | -11.7% | - |
| Gross margin | 2,575,004 | 3,094,049 | -16.8% | - |
| Gross margin percentage | 40.3% | 42.7% | - | - |
| Net income | 411,146 | 657,919 | -37.5% | - |
Guidance
Robert Half forecast first-quarter revenue of between $1.44 billion and $1.54 billion, a year-over-year decrease of 13% at the midpoint on an adjusted basis.Robert Half shares closed yesterday at $79.54, down 2.30% on the day and 11.41% below its 52-week high of $89.78, set on 3 February 2023. The company has a market cap of $8.42 billion.