Robert Half revenue down 7.7%, client budgets still constrained
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Clients were still cautious when it came to spending in the third quarter, according to Robert Half (NYSE: RHI). But business confidence seems to be improving.
Robert Half’s revenue fell 7.7% year over year in the third quarter when adjusted for the effects of currencies and billing days. Revenue decreased across divisions at the Menlo Park, California-based professional staffing firm. The exception was Protiviti, where revenue rose 4.5%.
US revenue declined by 6.7% on an adjusted basis while international revenue fell by 11.7% with particular weakness in permanent placement (-19.8%).
“While client budgets remain constrained and decision cycles extended, business confidence levels are improving, aided by continuing progress on inflation and the beginning of a global rate-cutting cycle,” President and CEO M. Keith Waddell said in a press release.
“We continue to be confident — both in our ability to weather the current climate and in our future growth prospects as the macro landscape improves,” Waddell said.
Robert Half forecast fourth-quarter revenue of between $1.34 billion and $1.44 billion — a year-over-year decrease of 7% at the midpoint on an adjusted basis.
“Contract talent solutions exited the third quarter with September revenues down 14% versus the prior year, compared to a 13% decrease for the full quarter,” CFO Michael Buckley said in a conference call with analysts. “Revenues for the first two weeks of October were down 12% compared to the same period last year.”
Perm placement revenue was down 19% in the first three weeks of October compared to the same period last year.
President and CEO Waddell noted in the call that the overall macroeconomic environment should begin to improve once the US election has passed.
Robert Half International – Q3 2024
(US$ thousands) | Q3 2024 | Q3 2023 | % change | % change adjusted* |
Service revenue | 1,465,004 | 1,563,812 | -6.3% | -7.7% |
Gross margin | 571,656 | 640,939 | -10.8% | - |
Gross margin percentage | 39.0% | 41.0% | - | - |
Net income | 65,451 | 95,545 | -31.5% | - |
Service Revenue
(US$ thousands) | Q3 2024 | Q3 2023 | % change | % change adjusted* |
Finance and accounting | 614,131 | 676,588 | -9.2% | -10.5% |
Administrative and customer support | 178,409 | 196,565 | -9.2% | -10.8% |
Technology | 160,184 | 170,574 | -6.1% | -7.6% |
Elimination of intersegment revenue | -122,321 | -100,630 | - | - |
Total contract talent solutions | 830,403 | 943,097 | -11.9% | -13.2% |
Permanent placement | 123,275 | 139,931 | -11.9% | -13.2% |
Protiviti | 511,326 | 480,784 | 6.4% | 4.5% |
Share Price
Robert Half released third-quarter results after close of market on Oct. 22. However, its shares had closed up 0.21% to $65.70. they were 15.16% above their 52-week low. The company has a market cap of $6.84 billion.
*Adjusted for impact of currencies and billing days.