Resources Connection revenue falls in ‘tepid’ environment
Resources Connection revenue falls in ‘tepid’ environment

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Resources Connection (NASDAQ: RGP) broader economic trends in its fiscal fourth quarter resulted in a “tepid demand environment” and clients were cautious when it came to spending. But the Irvine, California-based firm said revenue and gross margin were above the high end of guidance.
The professional staffing provider reported revenue fell 19.6% year over to $148.2 million its fiscal fourth quarter ended May 25. The decrease was on a constant currency, same-day basis.
“We are pleased to see stabilization in the business in the fourth quarter enabling us to deliver results above our outlook ranges, which is a testament to our people and their tenacity in a time of macro environment challenge,” CEO Kate Duchene said in a press release.
Billable hours fell by 13.0% and the average bill rate declined by 7.0%, according to the company. The decline in average bill rate reflected both a more competitive pricing environment and a shift in revenue mix to the Asia Pacific region which typically has a lower bill rate. In the US, the average bill rate rose by 1.3% year over year.
Resources Connection – Q4 2024
(US$ thousands) | Q4 2024 | Q4 2023 | % change | % constant currency, billing day adjusted |
Revenue | 148,198 | 184,449 | -19.7% | -19.6% |
Gross profit | 59,583 | 75,718 | -21.3% | - |
Gross margin | 40.2% | 41.1% | - | - |
Net income | 10,472 | 11,768 | -11.0% | - |
Revenue by geography
(US$ thousands) | Q4 2024 | Q4 2023 | % change | % constant currency, billing day adjusted |
North America | 126,554 | 160,999 | -21.40% | -21.60% |
Europe | 8,518 | 10,757 | -20.80% | -22.80% |
Asia Pacific | 13,126 | 12,693 | 3.40% | 8.80% |
Full-year results
(US$ thousands) | FY 2024 | FY 2023 | % change | % constant currency, billing day adjusted |
Revenue | 632,801 | 775,643 | -18.40% | -18.80% |
Gross profit | 246,068 | 313,142 | -21.40% | - |
Gross margin | 38.90% | 40.40% | - | - |
Net income | 21,034 | 54,359 | -61.30% | - |
Share price
Resources Connection shares closed at $10.62, 9.48% above its 52-week low of $9.70, set on 9 July 2024. The company has a market cap of $370.87 million.