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View All NewsWorld – Robert Half Q2 revenue and profits decline
Second-quarter revenue at professional staffing firm Robert Half International Inc. (NYSE: RHI) fell 0.9% on a same-billing day, constant-currency basis, to $1.30 billion in 2017 from $1.34 billion last year.
| (USD thousands) | Q2 2017 | Q2 2016 | % change | Q2 2017 constant currency (same billing days) |
| Net service revenue | 1,308,428 | 1,344,160 | -2.7% | -0.9% |
| Gross margin | 538,438 | 556,993 | -3.3% | N/A |
| Net income | 80,316 | 91,616 | -12.3% | N/A |
The company experienced sluggish hiring in the US but saw better performances from its international operations. Robert Half have 325 staffing locations worldwide, including 83 locations in 17 countries outside the United States.
“Second-quarter revenues for the company were strongest internationally, but we also were pleased with the quarter-over-quarter, sequential performance of our domestic staffing operations,” Chairman and CEO Harold Messmer Jr., said. “Every US staffing line of business reported higher sequential revenue growth this year than the same period a year ago.”
Revenue growth broken down by segment was as follows:
| (USD thousands) | Q2 2017 | Q2 2016 | % change | Q2 2017 constant currency (same billing days) |
| Accountemps | 439,734 | 460,242 | -4.5% | -2.8% |
| OfficeTeam | 244,369 | 246,391 | -0.8% | 0.8% |
| Robert Half Technology | 157,832 | 168,605 | -6.4% | -5.1% |
| Robert Half Management Resources | 156,361 | 156,845 | -0.3% | 1.9% |
| Robert Half Finance and Accounting | 112,653 | 113,439 | -0.7% | -- |
| Protiviti | 197,479 | 198,638 | -0.6% | 1.1% |
Revenue growth by geography and temp/perm was broken down as follows:
| Year-over-year revenue growth rates (constant currency, same billing day) | ||||||
| 2016 | 2017 | |||||
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |
| Global | ||||||
| Accountemps | 8.3% | 6.5% | 4.9% | -0.8% | -3.3% | -2.8% |
| OfficeTeam | 3.7% | 0.6% | -1.3% | -3.0% | -2.6% | 0.8% |
| Robert Half Technology | 6.2% | 0.9% | -1.4% | -3.4% | -5.2% | -5.1% |
| Robert Half Management Resources | 7.7% | 9.4% | 3.7% | -1.3% | 0.8% | 1.9% |
| Temporary and consultant staffing | 6.7% | 4.5% | 2.1% | -1.8% | -2.8% | -1.6% |
| Permanent placement staffing | 8.6% | 2.1% | -4.5% | -4.9% | -3.1% | 1.4% |
| United States | ||||||
| Temporary and consultant staffing | 7.3% | 3.5% | 0.6% | -3.5% | -5.6% | -3.5% |
| Permanent placement staffing | 11.6% | 2.7% | -5.0% | -8.1% | -7.6% | -1.6% |
| International | ||||||
| Temporary and consultant staffing | 4.5% | 8.9% | 8.8% | 5.3% | 9.4% | 6.4% |
| Permanent placement staffing | 2.0% | 0.8% | -3.4% | 2.9% | 8.4% | 8.7% |
US temporary staffing and consulting revenue fell 3.5% at Robert Half and permanent placement staffing edged down 1.6% following falls in prior quarters. However, international temporary and consulting staffing revenue rose 6.4% in the second quarter and international permanent placement revenue rose 8.7%.
For the six months ended 30 June 2017, net income was $159 million (-9.1%), on revenues of $2.60 billion, down from the six months ended June 30, 2016 where net income was $175 million, on revenues of $2.65 billion.
Looking forward, management said that it expects hiring activity in the U.S to improve in the forthcoming periods, backed by GDP growth and that it would continue to invest in technology innovations to better serve customers.
The Q2 results failed to meet consensus expectations and, in trading yesterday, Robert Half International shares closed at $44.24, down 7.45% on the day and 13.22% below its 52-week high of $50.98, set on 4 January 2017. Based on its current share price the company has a market value of $5.63 billion.