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View All NewsWorld – Robert Half revenue up 11% in Q3, international operations and direct-hire lead growth
Professional staffing firm Robert Half International Inc. (NYSE: RHI) reported third-quarter revenue rose 11.1% on a same billing-day, constant-currency basis. All staffing divisions reported year-over-year revenue growth in the third quarter, with permanent placement (direct hire) posting the fastest growth. Revenue also rose in Protiviti, Robert Half’s consulting division.
International revenue at the US-based firm rose 18.2% in the third quarter on a constant currency, same billing-day basis — faster than the 9.0% growth in the US.
US perm placement revenue rose 16.7% on a same-day, constant-currency basis in the third quarter; temporary and consulting staffing revenue increased 6.5%. However, international temporary and consultant staffing revenue rose 17.8% in the third quarter, and international permanent placement revenue rose by 18.8%.
| (USD thousands) | Q3 2018 | Q3 2017 | % change | Q3 2018 constant currency (same billing days) |
| Net service revenue | 1,466,266 | 1,324,709 | 10.7% | 11.1% |
| Gross margin | 610,468 | 546,400 | 11.7% | N/A |
| Gross margin percentage | 41.6% | 41.2% | N/A | N/A |
| Net income | 115,242 | 84,700 | 36.1% | N/A |
“Skills shortages persist globally, driving heightened demand for skilled talent, especially in the professional-level segments in which Robert Half specialises,” said Chairman and CEO Harold Messmer Jr. “Also buoying our business is the sustained optimism among small and midsize companies, particularly in the United States, which is leading to increased hiring activity by this key client base.”
Revenue by segment was as follows.
| (USD thousands) | Q3 2018 | Q3 2017 | % change | Q3 2018 constant currency (same billing days) |
| Accountemps | 479,415 | 443,376 | 8.1% | 8.6% |
| OfficeTeam | 265,235 | 246,207 | 7.7% | 7.8% |
| Robert Half Technology | 176,552 | 157,038 | 12.4% | 12.6% |
| Robert Half Management Resources | 162,564 | 158,187 | 2.8% | 8.1% |
| Robert Half Finance and Accounting | 129,667 | 111,333 | 16.5% | -- |
| Protiviti | 252,793 | 208,568 | 21.2% | 17.5% |
Revenue growth by geography and temp/perm was as follows.
| Year-over-year revenue growth rates (constant currency, same billing day) | |||||||
| 2017 | 2018 | ||||||
| Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | ||
| Global | |||||||
| Accountemps | -2.8% | -1.1% | 3.6% | 6.6% | 7.8% | 8.6% | |
| OfficeTeam | 0.8% | 0.9% | 5.9% | 8.2% | 7.7% | 7.8% | |
| Robert Half Technology | -5.1% | -5.2% | -2.2% | 1.2% | 7.5% | 12.6% | |
| Robert Half Management Resources | 1.9% | 5.2% | 7.5% | 7.0% | 7.9% | 8.1% | |
| Temporary and consultant staffing | -1.6% | -0.4% | 3.8% | 6.2% | 7.7% | 8.9% | |
| Permanent placement staffing | 1.4% | 6.7% | 16.1% | 15.0% | 18.0% | 17.4% | |
| United States | |||||||
| Temporary and consultant staffing | -3.5% | -3.0% | 1.3% | 3.9% | 5.3% | 6.5% | |
| Permanent placement staffing | -1.6% | 3.2% | 13.2% | 14.8% | 17.3% | 16.7% | |
| International | |||||||
| Temporary and consultant staffing | 6.4% | 10.2% | 14.0% | 15.5% | 16.7% | 17.8% | |
| Permanent placement staffing | 8.7% | 15.1% | 22.8% | 16.0% | 18.8% | 18.8% | |
Robert Half also announced it settled a putative class-action lawsuit brought in 2014 by Leonor Rodriguez, a recruiting manager, that claimed the company misclassified she and similar employees as exempt from overtime. The lawsuit, except for a portion under California’s Private Attorneys General Act, had been ordered by a judge in 2014 to go into individual arbitration. However, the parties settled the arbitration claim on 11 September of this year for an amount immaterial to the company, and the PAGA portion of the case was dismissed by a judge on 19 October.
Robert Half expects fourth-quarter revenue to range from $1.43 billion to $1.45 billion, which implies year-over-year revenue growth of 9% at the midpoint range on a same-day, constant-currency basis.
On Wednesday, Robert Half International shares closed at $57.38, down 10.34% on the day and 13.65% above the 52 week low of $50.49 set on 24 October 2017. Based on its current share price the company has a market value of $7.03 billion.