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World – Robert Half Q4 revenue up 10% amid robust market, skill shortage

31 January 2019

Fourth-quarter revenue rose 10.1% at Robert Half International Inc. (NYSE: RHI) amid a robust labour market and demand fueled by the skills shortage, according to the company. Revenue was up 10.3% on a constant-currency, same-billing day basis.

Temp staffing revenue rose 7.1% in the fourth quarter while permanent placement revenue rose 12.8%.

(USD thousands) Q4 2018  Q4 2017  % change
Net service revenue 1,481,658 1,346,282 10.1%
Gross margin 620,062 553,146 12.1%
Gross margin percentage 41.8% 41.1% N/A 
Net income 113,564 47,047 141.4%

Robert Half’s Protiviti division posted the fastest revenue growth, up 22.8% in the fourth quarter.

Revenue by segment

(USD thousands) Q4 2018  Q4 2017  % change
Accountemps 483,487 446,017 8.4%
OfficeTeam 268,489 258,118 4.0%
Robert Half Technology 174,829 156,969 11.4%
Robert Half Management Resources 165,733 159,228 4.1%
Robert Half Finance and Accounting 125,884 111,595 12.8%
Protiviti 263,236 214,355 22.8%

“Full-year 2018 revenues and operating income reached all-time-high levels for the company, with broad-based strength in our staffing and Protiviti operations,” said Harold Messmer Jr., chairman and CEO of Robert Half. “The US labour market remains very robust, with significant demand due to talent shortages across our professional disciplines.”

Robert Half also published full-year results as follows.

(US$ thousands) FY 2018 FY 2017 % change
Net service revenue 5,800,271 5,266,789 10.1%
Gross margin 2,410,014 2,163,812 11.4%
Gross margin percentage 41.6% 41.1% N/A 
Net income 434,288 290,584 49.5%

In trading yesterday Robert Half International Inc shares closed at $65.19, up 7.36% on the day and 26.95% above the 52 week low of $51.35 set on 9 February 2018. Based on its current share price the company has a market value of $7.92 billion.