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Kforce Q2 revenue falls 7.8%, environment more stable

IT Staffing Report

Kforce Q2 revenue falls 7.8%, environment more stable

July 30, 2024
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Second-quarter revenue fell 7.8% year over year at Kforce (NYSE: KFRC), a Tampa, Florida-based professional staffing firm focused on IT and finance and accounting. Total revenue was $356.3 million, with declines in technology and finance/accounting staffing of 6.9% and 23.5%, respectively. Still, Kforce noted revenue rose 1.3% sequentially from the first quarter and the operating environment appears more stable than in the previous year.

“Operating trends over the first half of 2024 and discussions with our clients indicate to us that the current operating environment continues to be more stable and constructive than it was throughout most of 2023,” Kforce President and CEO Joseph Liberatore said.

Demand for technology staffing — and clients’ interest in starting new projects — has held steady over the past three quarters, according to Liberatore.

Kforce revenue was above analysts’ average estimate of $356.1 million.

Kforce Inc. - Q2 2024

(US$ thousands)

Q2 2024

Q2 2023

% change

Revenue

356,318

389,190

-8.4%

Gross profit

98,973

110,266

-10.2%

Gross margin percentage

27.80%

28.30%

-

Net income

14,157

18,574

-23.8%

Revenue by Function and Segment

(US$ thousands)

Q2 2024

Q2 2023

% change

Total flex revenue

348,784

378,470

-7.8%

Total direct-hire revenue

7,534

10,720

-29.7%

Technology

Technology flex revenue

324,064

346,326

-6.4%

Technology direct-hire revenue

3,810

5,699

-33.1%

Total technology revenue

327,874

352,025

-6.9%

Finance & Accounting

Finance & Accounting flex revenue

24,720

32,144

-23.1%

Finance & Accounting direct-hire revenue

3,724

5,021

-25.8%

Total Finance & Accounting revenue

28,444

37,165

-23.5%

Guidance

Kforce forecast third-quarter revenue of between $347 million and $355 million, which represents a year-over-year decrease of between 4.9% and 7.0%. The third quarter will have 64 billing days, up from 63 in the third quarter of 2023.