ROBERT HALF REPORTS FOURTH-QUARTER FINANCIAL RESULTS
Robert Half (NYSE: RHI) reported its Q4 2024 financial results with net income of $54 million ($0.53 per share) on revenues of $1.382 billion, compared to net income of $87 million ($0.83 per share) on revenues of $1.473 billion in Q4 2023.
For the full year 2024, the company reported net income of $252 million ($2.44 per share) on revenues of $5.796 billion, down from net income of $411 million ($3.88 per share) on revenues of $6.393 billion in 2023.
Protiviti, the company's consulting division, showed year-on-year revenue growth for the second consecutive quarter. Contract revenues maintained stability throughout Q4, remaining at early third-quarter levels for 23 consecutive weeks before the holidays. The company was recognized by Fortune as one of the World's Most Admired Companies for the 28th consecutive year.
Robert Half (NYSE: RHI) ha riportato i risultati finanziari del quarto trimestre 2024, con un utili netti di 54 milioni di dollari (0,53 dollari per azione) su ricavi di 1,382 miliardi di dollari, rispetto a utili netti di 87 milioni di dollari (0,83 dollari per azione) su ricavi di 1,473 miliardi di dollari nel quarto trimestre 2023.
Per l'intero anno 2024, la società ha riportato un utile netto di 252 milioni di dollari (2,44 dollari per azione) su ricavi di 5,796 miliardi di dollari, in calo rispetto agli utili netti di 411 milioni di dollari (3,88 dollari per azione) su ricavi di 6,393 miliardi di dollari nel 2023.
Protiviti, la divisione di consulenza dell'azienda, ha mostrato una crescita dei ricavi anno su anno per il secondo trimestre consecutivo. I ricavi da contratti hanno mantenuto stabilità durante il quarto trimestre, rimanendo a livelli dei primi tre mesi per 23 settimane consecutive prima delle festività. L'azienda è stata riconosciuta da Fortune come una delle Aziende più Ammirate al Mondo per il 28° anno consecutivo.
Robert Half (NYSE: RHI) reportó sus resultados financieros del cuarto trimestre de 2024, con un ingreso neto de 54 millones de dólares (0,53 dólares por acción) sobre ingresos de 1,382 mil millones de dólares, en comparación con un ingreso neto de 87 millones de dólares (0,83 dólares por acción) sobre ingresos de 1,473 mil millones de dólares en el cuarto trimestre de 2023.
Para el año completo 2024, la empresa reportó un ingreso neto de 252 millones de dólares (2,44 dólares por acción) sobre ingresos de 5,796 mil millones de dólares, una disminución respecto a un ingreso neto de 411 millones de dólares (3,88 dólares por acción) sobre ingresos de 6,393 mil millones de dólares en 2023.
Protiviti, la división de consultoría de la empresa, mostró un crecimiento de ingresos interanual por segundo trimestre consecutivo. Los ingresos por contrato mantuvieron la estabilidad durante el cuarto trimestre, permaneciendo en niveles de principios del tercer trimestre durante 23 semanas consecutivas antes de las festividades. La empresa fue reconocida por Fortune como una de las Empresas Más Admiradas del Mundo por 28° año consecutivo.
로버트 하프 (NYSE: RHI)는 2024년 4분기 재무 결과를 보고했습니다. 순이익은 5,400만 달러(주당 0.53달러)로, 수익은 13억 8,200만 달러였습니다. 이는 2023년 4분기 순이익 8,700만 달러(주당 0.83달러)와 수익 14억 7,300만 달러에 비해 감소한 수치입니다.
2024년 전체 연도에 대해 회사는 순이익 2억 5,200만 달러(주당 2.44달러)의 수익 57억 9,600만 달러를 보고했으며, 이는 2023년 순이익 4억 1,100만 달러(주당 3.88달러)와 수익 63억 9,300만 달러에서 감소한 것입니다.
회사의 컨설팅 부서인 프로티비티는 두 번째 분기 연속으로 연간 수익 성장을 보였습니다. 계약 수익은 4분기 내내 안정성을 유지하며, 명절 전 23주 동안 3분기 초 수준을 유지했습니다. 이 회사는 포춘지에 의해 28년 연속으로 세계에서 가장 존경받는 기업 중 하나로 인정받았습니다.
Robert Half (NYSE: RHI) a publié ses résultats financiers pour le quatrième trimestre 2024, avec un bénéfice net de 54 millions de dollars (0,53 dollar par action) sur des revenus de 1,382 milliard de dollars, comparativement à un bénéfice net de 87 millions de dollars (0,83 dollar par action) sur des revenus de 1,473 milliard de dollars au quatrième trimestre 2023.
Pour l'année complète 2024, la société a déclaré un bénéfice net de 252 millions de dollars (2,44 dollars par action) sur des revenus de 5,796 milliards de dollars, en baisse par rapport à un bénéfice net de 411 millions de dollars (3,88 dollars par action) sur des revenus de 6,393 milliards de dollars en 2023.
Protiviti, la division de conseil de l'entreprise, a affiché une croissance des revenus d'une année sur l'autre pour le deuxième trimestre consécutif. Les revenus des contrats ont maintenu leur stabilité au cours du quatrième trimestre, restant à des niveaux des premières semaines du troisième trimestre pendant 23 semaines consécutives avant les congés. L'entreprise a été reconnue par Fortune comme l'une des entreprises les plus admirées au monde pour la 28ème année consécutive.
Robert Half (NYSE: RHI) hat seine finanziellen Ergebnisse für das vierte Quartal 2024 veröffentlicht, mit einem Nettogewinn von 54 Millionen US-Dollar (0,53 US-Dollar pro Aktie) bei Einnahmen von 1,382 Milliarden US-Dollar, im Vergleich zu einem Nettogewinn von 87 Millionen US-Dollar (0,83 US-Dollar pro Aktie) bei Einnahmen von 1,473 Milliarden US-Dollar im vierten Quartal 2023.
Für das Gesamtjahr 2024 meldete das Unternehmen einen Nettogewinn von 252 Millionen US-Dollar (2,44 US-Dollar pro Aktie) bei Einnahmen von 5,796 Milliarden US-Dollar, im Vergleich zu einem Nettogewinn von 411 Millionen US-Dollar (3,88 US-Dollar pro Aktie) bei Einnahmen von 6,393 Milliarden US-Dollar im Jahr 2023.
Protiviti, die Beratungsabteilung des Unternehmens, zeigte im zweiten Quartal in Folge ein Umsatzwachstum im Jahresvergleich. Die Vertragsumsätze blieben im vierten Quartal stabil und hielten sich 23 aufeinanderfolgende Wochen vor den Feiertagen auf niedrigem Niveau der ersten drei Quartale. Das Unternehmen wurde von Fortune als eines der weltweit am meisten bewunderten Unternehmen im 28. Jahr in Folge ausgezeichnet.
- Protiviti division achieved year-over-year revenue growth for second straight quarter
- Contract revenues remained stable for 23 consecutive weeks
- Only company in industry to receive Fortune's Most Admired Companies recognition for 28 years
- Q4 2024 revenue declined 6.2% to $1.382B from $1.473B YoY
- Q4 2024 net income dropped 37.9% to $54M from $87M YoY
- FY 2024 revenue decreased 9.3% to $5.796B from $6.393B YoY
- FY 2024 net income fell 38.7% to $252M from $411M YoY
Insights
Robert Half's Q4 2024 financial results paint a complex picture of ongoing challenges in the professional staffing sector, marked by significant year-over-year declines across key metrics. The 37.9% drop in quarterly net income to
However, there are several notable bright spots in the report. The Protiviti consulting division's second consecutive quarter of growth demonstrates the success of Robert Half's diversification strategy and validates its hybrid business model combining staffing and consulting services. The stability in contract revenues, maintaining consistent levels for 23 straight weeks, suggests a potential floor in the market and improved predictability in the business.
The company's strategic positioning remains strong, evidenced by:
- Sustained leadership in specialized talent solutions
- Strong brand recognition (28 consecutive years on Fortune's Most Admired Companies list)
- Diversified revenue streams across staffing and consulting
- Stable contract revenue performance despite market challenges
Management's optimistic outlook regarding increased U.S. business confidence post-elections could signal an inflection point. While current financial metrics show pressure, Robert Half's market position and operational stability suggest resilience. The company's ability to maintain its industry-leading position while navigating challenging market conditions demonstrates operational strength, though investors should monitor the pace of recovery in permanent placement revenues and overall margin trends in upcoming quarters.
For the three months ended December 31, 2024, net income was
For the year ended December 31, 2024, net income was
"Revenues and earnings for the fourth quarter were largely in line with our expectations, led by Protiviti, which reported year-on-year revenue growth for the second straight quarter. Contract revenues remained stable throughout the quarter, sustaining early third-quarter levels for 23 consecutive weeks prior to the holidays. As we move into the new year, we are very encouraged by the significant rise in
"We'd like to extend our gratitude to our global workforce for making possible a number of new accolades. Just today, Robert Half was honored by Fortune® as one of the World's Most Admired Companies for the 28th consecutive year. We are proud of our unique position as the only company in our industry to be awarded this distinction for nearly three decades. We were also recently named one of Fortune's Best Workplaces for Parents and chosen by Newsweek as one of America's Most Responsible Companies," Waddell concluded.
Robert Half management will conduct a conference call today at 5 p.m. EST. The prepared remarks for this call are available now in the Investor Center of the Robert Half website (www.roberthalf.com/investor-center). Simply click on the Quarterly Conference Calls link. The dial-in number is 888-394-8218 (+1-323-994-2093 outside
A recording of this call will be available for audio replay beginning at approximately 8 p.m. EST on January 29 and ending after 12 months. To access the replay, visit https://webcasts.com/RobertHalfQ42024. The conference call also will be archived in audio format on the Company's website at roberthalf.com.
Robert Half is the world's first and largest specialized talent solutions and business consulting firm, connecting highly skilled job seekers with rewarding opportunities at great companies. We offer contract talent and permanent placement solutions in the fields of finance and accounting, technology, marketing and creative, legal, and administrative and customer support, and we also provide executive search services. Robert Half is the parent company of Protiviti®, a global consulting firm that delivers internal audit, risk, business and technology consulting solutions. In the past 12 months, Robert Half, including Protiviti, has been named one of the Fortune® World's Most Admired Companies™ and 100 Best Companies to Work For, and a Forbes Best Employer for Diversity.
Certain information contained in this press release and its attachments may be deemed forward-looking statements regarding events and financial trends that may affect the future operating results or financial positions of Robert Half Inc. (the "Company"). Forward-looking statements are not guarantees or promises that goals or targets will be met. These statements may be identified by words such as "anticipate," "potential," "estimate," "forecast," "target," "project," "plan," "intend," "believe," "expect," "should," "could," "would," "may," "might," "will," or variations or negatives thereof or by similar or comparable words or phrases. In addition, historical, current and forward-looking information about the Company's environmental, social and governance and compliance programs, including targets or goals, may not be considered material for the Securities and Exchange Commission ("SEC") or other mandatory reporting purposes and may be based on standards for measuring progress that are still developing, on internal controls, diligence, or processes that are evolving, on representations reviewed or provided by third parties, and on assumptions that are subject to change in the future. Forward-looking statements are estimates only, based on management's current expectations, currently available information and current strategy, plans, or forecasts, and involve certain known and unknown risks, uncertainties, and assumptions that are difficult to predict and often beyond our control and are inherently uncertain. Forward-looking statements are subject to risks and uncertainties that could cause actual results, outcomes, or the timing of these results or outcomes, to differ materially from those expressed or implied in the statements.
These risks and uncertainties include, but are not limited to, the following: changes to or new interpretations of
Additionally, with respect to Protiviti, other risks and uncertainties include the fact that future success will depend on its ability to retain employees and attract clients; there can be no assurance that there will be ongoing demand for broad based consulting, regulatory compliance, technology services, public sector or other high demand advisory services; failure to produce projected revenues could adversely affect financial results; and there is the possibility of involvement in litigation relating to prior or current transactions or activities.
A summary of additional risks and uncertainties can be found in the Annual Report on Form 10-K for the year ended December 31, 2023, and in the Company's other filings with the
Because long-term contracts are not a significant part of the Company's business, future results cannot be reliably predicted by considering past trends or extrapolating past results. The Company undertakes no obligation to update information contained in this release, whether as a result of new information, future events, or otherwise, and notwithstanding any historical practice of doing so.
A copy of this release is available at www.roberthalf.com/investor-center.
ATTACHED: | Summary of Operations Supplemental Financial Information
|
ROBERT HALF INC. | |||||||
SUMMARY OF OPERATIONS | |||||||
(in thousands, except per share amounts) | |||||||
Three Months Ended | Year Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Unaudited) | (Unaudited) | ||||||
Service revenues | $ 1,382,372 | $ 1,472,892 | $ 5,795,837 | $ 6,392,517 | |||
Costs of services | 846,274 | 888,728 | 3,548,607 | 3,817,513 | |||
Gross margin | 536,098 | 584,164 | 2,247,230 | 2,575,004 | |||
Selling, general and administrative expenses | 471,326 | 516,666 | 2,004,539 | 2,107,531 | |||
Income from investments held in employee deferred compensation trusts | (5,740) | (46,657) | (94,079) | (88,020) | |||
Amortization of intangible assets | 304 | 721 | 1,217 | 2,883 | |||
Interest income, net | (5,128) | (6,697) | (22,118) | (23,973) | |||
Income before income taxes | 75,336 | 120,131 | 357,671 | 576,583 | |||
Provision for income taxes | 21,046 | 32,827 | 106,073 | 165,437 | |||
Net income | $ 54,290 | $ 87,304 | $ 251,598 | $ 411,146 | |||
Diluted net income per share | $ 0.53 | $ 0.83 | $ 2.44 | $ 3.88 | |||
Weighted average shares: | |||||||
Basic | 101,549 | 104,286 | 102,661 | 105,530 | |||
Diluted | 102,008 | 104,960 | 103,028 | 106,074 | |||
ROBERT HALF INC. | |||||||
SUPPLEMENTAL FINANCIAL INFORMATION | |||||||
(in thousands) | |||||||
Three Months Ended | Year Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Unaudited) | (Unaudited) | ||||||
SERVICE REVENUES INFORMATION | |||||||
Contract talent solutions | |||||||
Finance and accounting | $ 574,898 | $ 635,281 | |||||
Administrative and customer support | 172,783 | 189,471 | 741,468 | 816,409 | |||
Technology | 158,009 | 163,724 | 634,062 | 710,156 | |||
Elimination of intersegment revenues (1) | (120,176) | (101,098) | (471,777) | (442,326) | |||
Total contract talent solutions | 785,514 | 887,378 | 3,357,872 | 3,895,332 | |||
Permanent placement talent solutions | 108,099 | 121,564 | 487,204 | 567,486 | |||
Protiviti | 488,759 | 463,950 | 1,950,761 | 1,929,699 | |||
Total service revenues | |||||||
(1) | Service revenues for finance and accounting, administrative and customer support, and technology include intersegment revenues, which represent revenues from services provided to the Company's Protiviti segment in connection with the Company's blended business solutions. Intersegment revenues for each functional specialization are aggregated and then eliminated as a single line. |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
$ | % of | $ | % of | $ | % of | $ | % of | ||||
(Unaudited) | (Unaudited) | ||||||||||
BUSINESS SEGMENT INCOME INFORMATION: | |||||||||||
Contract talent solutions | $ 16,410 | 2.1 % | $ 50,878 | 5.7 % | 3.9 % | $ 292,815 | 7.5 % | ||||
Permanent placement talent solutions | $ 5,862 | 5.4 % | $ 10,392 | 8.5 % | $ 46,052 | 9.5 % | $ 75,004 | 13.2 % | |||
Protiviti | $ 48,240 | 9.9 % | $ 52,885 | 11.4 % | 8.2 % | $ 187,674 | 9.7 % | ||||
December 31, | ||||
2024 | 2023 | |||
(Unaudited) | ||||
SELECTED BALANCE SHEET INFORMATION: | ||||
Cash and cash equivalents | $ 537,583 | $ 731,740 | ||
Accounts receivable, net | $ 772,285 | $ 860,872 | ||
Total assets | ||||
Total current liabilities | ||||
Total stockholders' equity | ||||
Year Ended December 31, | ||||
2024 | 2023 | |||
(Unaudited) | ||||
SELECTED CASH FLOW INFORMATION: | ||||
Depreciation | $ 52,053 | $ 51,364 | ||
Capitalized cloud computing implementation costs | $ 29,210 | $ 34,895 | ||
Capital expenditures | $ 56,318 | $ 45,874 | ||
Open market repurchases of common stock (shares) | 3,507 | 3,047 | ||
ROBERT HALF INC.
NON-GAAP FINANCIAL MEASURES
The financial results of Robert Half Inc. (the "Company") are prepared in conformity with accounting principles generally accepted in
The following measures: adjusted gross margin and adjusted selling, general and administrative expenses, include gains and losses on investments held to fund the Company's obligations under employee deferred compensation plans. The Company provides these measures because they are used by management to review its operational results.
Combined segment income is income before income taxes, adjusted for interest income and amortization of intangible assets. The Company provides combined segment income because it is how management evaluates performance.
As adjusted revenue growth rates represent year-over-year revenue growth rates after removing the impacts on reported revenues from the changes in the number of billing days and foreign currency exchange rates. The Company provides this data because it focuses on the Company's revenue growth rates attributable to operating activities and aids in evaluating revenue trends over time. The impacts from the changes in billing days and foreign currency exchange rates are calculated as follows:
- Billing days impact is calculated by dividing each comparative period's reported revenues by the number of billing days for that period to arrive at a per billing day amount. Same billing day growth rates are then calculated based on the per billing day amounts. Management calculates a global, weighted-average number of billing days for each reporting period based upon inputs from all countries and all functional specializations and segments.
- Foreign currency impact is calculated by retranslating current period international revenues, using foreign currency exchange rates from the prior year's comparable period.
The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided on the following pages.
ROBERT HALF INC. | |||||||||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||||||
ADJUSTED GROSS MARGIN (UNAUDITED): | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Three Months Ended December 31, | Relationships | Year Ended December 31, | Relationships | ||||||||||||||||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | As Reported | As Adjusted | As Reported | As Adjusted | ||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Gross Margin | |||||||||||||||||||||||||||||||
Contract talent solutions | $ 306,758 | $ 351,893 | $ 306,758 | $ 351,893 | 39.1 % | 39.7 % | 39.1 % | 39.7 % | $ 1,316,524 | $ 1,549,312 | $ 1,316,524 | $ 1,549,312 | 39.2 % | 39.8 % | 39.2 % | 39.8 % | |||||||||||||||
Permanent placement talent | 107,866 | 121,330 | 107,866 | 121,330 | 99.8 % | 99.8 % | 99.8 % | 99.8 % | 486,219 | 566,381 | 486,219 | 566,381 | 99.8 % | 99.8 % | 99.8 % | 99.8 % | |||||||||||||||
Total talent solutions | 414,624 | 473,223 | 414,624 | 473,223 | 46.4 % | 46.9 % | 46.4 % | 46.9 % | 1,802,743 | 2,115,693 | 1,802,743 | 2,115,693 | 46.9 % | 47.4 % | 46.9 % | 47.4 % | |||||||||||||||
Protiviti | 121,474 | 110,941 | 122,560 | 119,951 | 24.9 % | 23.9 % | 25.1 % | 25.9 % | 444,487 | 459,311 | 463,250 | 475,572 | 22.8 % | 23.8 % | 23.7 % | 24.6 % | |||||||||||||||
Total | $ 536,098 | $ 584,164 | $ 537,184 | $ 593,174 | 38.8 % | 39.7 % | 38.9 % | 40.3 % | $ 2,247,230 | $ 2,575,004 | $ 2,265,993 | $ 2,591,265 | 38.8 % | 40.3 % | 39.1 % | 40.5 % | |||||||||||||||
The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the three months ended December 31, 2024 and 2023:
Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | ||||||||||||||||||||||||||||
Contract talent solutions | Permanent | Total talent | Protiviti | Total | Contract talent solutions | Permanent | Total talent | Protiviti | Total | ||||||||||||||||||||
$ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | ||||||||||
Gross Margin | |||||||||||||||||||||||||||||
As Reported | $ 306,758 | 39.1 % | $ 107,866 | 99.8 % | $ 414,624 | 46.4 % | $ 121,474 | 24.9 % | $ 536,098 | 38.8 % | $ 351,893 | 39.7 % | $ 121,330 | 99.8 % | $ 473,223 | 46.9 % | $ 110,941 | 23.9 % | $ 584,164 | 39.7 % | |||||||||
Adjustments (1) | — | — | — | — | — | — | 1,086 | 0.2 % | 1,086 | 0.1 % | — | — | — | — | — | — | 9,010 | 2.0 % | 9,010 | 0.6 % | |||||||||
As Adjusted | $ 306,758 | 39.1 % | $ 107,866 | 99.8 % | $ 414,624 | 46.4 % | $ 122,560 | 25.1 % | $ 537,184 | 38.9 % | $ 351,893 | 39.7 % | $ 121,330 | 99.8 % | $ 473,223 | 46.9 % | $ 119,951 | 25.9 % | $ 593,174 | 40.3 % | |||||||||
The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the years ended December 31, 2024 and 2023:
Year Ended December 31, 2024 | Year Ended December 31, 2023 | ||||||||||||||||||||||||||||
Contract talent solutions | Permanent | Total talent | Protiviti | Total | Contract talent solutions | Permanent | Total talent | Protiviti | Total | ||||||||||||||||||||
$ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | ||||||||||
Gross Margin | |||||||||||||||||||||||||||||
As Reported | $ 1,316,524 | 39.2 % | $ 486,219 | 99.8 % | $ 1,802,743 | 46.9 % | 22.8 % | $ 2,247,230 | 38.8 % | $ 1,549,312 | 39.8 % | $ 566,381 | 99.8 % | $ 2,115,693 | 47.4 % | 23.8 % | $ 2,575,004 | 40.3 % | |||||||||||
Adjustments (1) | — | — | — | — | — | — | 18,763 | 0.9 % | 18,763 | 0.3 % | — | — | — | — | — | — | 16,261 | 0.8 % | 16,261 | 0.2 % | |||||||||
As Adjusted | $ 1,316,524 | 39.2 % | $ 486,219 | 99.8 % | $ 1,802,743 | 46.9 % | 23.7 % | $ 2,265,993 | 39.1 % | $ 1,549,312 | 39.8 % | $ 566,381 | 99.8 % | $ 2,115,693 | 47.4 % | 24.6 % | $ 2,591,265 | 40.5 % | |||||||||||
(1) | Changes in the Company's employee deferred compensation plan obligations related to Protiviti operations are included in costs of services, while the related investment income is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment income from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes. |
ROBERT HALF INC. | |||||||||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||||||
ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED): | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Three Months Ended December 31, | Relationships | Year Ended December 31, | Relationships | ||||||||||||||||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | As Reported | As Adjusted | As Reported | As Adjusted | ||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Selling, General and Administrative Expenses | |||||||||||||||||||||||||||||||
Contract talent solutions | $ 294,387 | $ 334,785 | $ 290,348 | $ 301,015 | 37.5 % | 37.7 % | 37.0 % | 33.9 % | $ 1,252,588 | $ 1,320,752 | $ 1,186,006 | $ 1,256,497 | 37.3 % | 33.9 % | 35.3 % | 32.3 % | |||||||||||||||
Permanent placement talent | 102,619 | 114,815 | 102,004 | 110,938 | 94.9 % | 94.4 % | 94.4 % | 91.3 % | 448,901 | 498,881 | 440,167 | 491,377 | 92.1 % | 87.9 % | 90.3 % | 86.6 % | |||||||||||||||
Total talent solutions | 397,006 | 449,600 | 392,352 | 411,953 | 44.4 % | 44.6 % | 43.9 % | 40.8 % | 1,701,489 | 1,819,633 | 1,626,173 | 1,747,874 | 44.3 % | 40.8 % | 42.3 % | 39.2 % | |||||||||||||||
Protiviti | 74,320 | 67,066 | 74,320 | 67,066 | 15.2 % | 14.5 % | 15.2 % | 14.5 % | 303,050 | 287,898 | 303,050 | 287,898 | 15.5 % | 14.9 % | 15.5 % | 14.9 % | |||||||||||||||
Total | $ 471,326 | $ 516,666 | $ 466,672 | $ 479,019 | 34.1 % | 35.1 % | 33.8 % | 32.5 % | $ 2,004,539 | $ 2,107,531 | $ 1,929,223 | $ 2,035,772 | 34.6 % | 33.0 % | 33.3 % | 31.8 % | |||||||||||||||
The following tables provide reconciliations of the non-GAAP adjusted selling, general and administrative expenses to reported selling, general and administrative expenses for the three months ended December 31, 2024 and 2023:
Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | ||||||||||||||||||||||||||||
Contract talent solutions | Permanent | Total talent | Protiviti | Total | Contract talent solutions | Permanent | Total talent | Protiviti | Total | ||||||||||||||||||||
$ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | ||||||||||
Selling, General and Administrative Expenses | |||||||||||||||||||||||||||||
As Reported | 37.5 % | 94.9 % | $ 397,006 | 44.4 % | $ 74,320 | 15.2 % | $ 471,326 | 34.1 % | 37.7 % | 94.4 % | 44.6 % | $ 67,066 | 14.5 % | $ 516,666 | 35.1 % | ||||||||||||||
Adjustments (1) | (4,039) | (0.5 %) | (615) | (0.5 %) | (4,654) | (0.5 %) | — | — | (4,654) | (0.3 %) | (33,770) | (3.8 %) | (3,877) | (3.1 %) | (37,647) | (3.8 %) | — | — | (37,647) | (2.6 %) | |||||||||
As Adjusted | 37.0 % | 94.4 % | $ 392,352 | 43.9 % | $ 74,320 | 15.2 % | $ 466,672 | 33.8 % | 33.9 % | 91.3 % | 40.8 % | $ 67,066 | 14.5 % | $ 479,019 | 32.5 % | ||||||||||||||
The following tables provide reconciliations of the non-GAAP adjusted selling, general and administrative expenses to reported selling, general and administrative expenses for the years ended December 31, 2024 and 2023:
Year Ended December 31, 2024 | Year Ended December 31, 2023 | ||||||||||||||||||||||||||||
Contract talent | Permanent | Total talent | Protiviti | Total | Contract talent | Permanent | Total talent | Protiviti | Total | ||||||||||||||||||||
$ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | $ | % of | ||||||||||
Selling, General and Administrative Expenses | |||||||||||||||||||||||||||||
As Reported | $ 1,252,588 | 37.3 % | 92.1 % | $ 1,701,489 | 44.3 % | $ 303,050 | 15.5 % | $ 2,004,539 | 34.6 % | $ 1,320,752 | 33.9 % | 87.9 % | $ 1,819,633 | 40.8 % | $ 287,898 | 14.9 % | $ 2,107,531 | 33.0 % | |||||||||||
Adjustments (1) | (66,582) | (2.0 %) | (8,734) | (1.8 %) | (75,316) | (2.0 %) | — | — | (75,316) | (1.3 %) | (64,255) | (1.6 %) | (7,504) | (1.3 %) | (71,759) | (1.6 %) | — | — | (71,759) | (1.2 %) | |||||||||
As Adjusted | $ 1,186,006 | 35.3 % | 90.3 % | $ 1,626,173 | 42.3 % | $ 303,050 | 15.5 % | $ 1,929,223 | 33.3 % | $ 1,256,497 | 32.3 % | 86.6 % | $ 1,747,874 | 39.2 % | $ 287,898 | 14.9 % | $ 2,035,772 | 31.8 % | |||||||||||
(1) | Changes in the Company's employee deferred compensation plan obligations related to talent solutions operations are included in selling, general and administrative expenses, while the related investment income is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment income from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes. |
ROBERT HALF INC.
NON-GAAP FINANCIAL MEASURES
COMBINED SEGMENT INCOME (UNAUDITED):
(in thousands)
The following tables provide reconciliations of the non-GAAP combined segment income to reported income before income taxes for the three months and years ended December 31, 2024 and 2023:
Three Months Ended December 31, | Year Ended December 31, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
$ | % of | $ | % of | $ | % of | $ | % of | ||||
Income before income taxes | $ 75,336 | 5.4 % | $ 120,131 | 8.2 % | 6.2 % | 9.0 % | |||||
Interest income, net | (5,128) | (0.3 %) | (6,697) | (0.4 %) | (22,118) | (0.4 %) | (23,973) | (0.3 %) | |||
Amortization of intangible assets | 304 | 0.0 % | 721 | 0.0 % | 1,217 | 0.0 % | 2,883 | 0.0 % | |||
Combined segment income | $ 70,512 | 5.1 % | $ 114,155 | 7.8 % | 5.8 % | 8.7 % | |||||
ROBERT HALF INC. | ||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||
REVENUE GROWTH RATES (%) (UNAUDITED): | ||||||||||||||||||||||||
Year-Over-Year Growth Rates (As Reported) | Non-GAAP Year-Over-Year Growth Rates (As Adjusted) | |||||||||||||||||||||||
2023 | 2024 | 2023 | 2024 | |||||||||||||||||||||
Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||
Global | ||||||||||||||||||||||||
Finance and accounting | -16.0 | -17.2 | -17.5 | -13.6 | -9.2 | -9.5 | -15.2 | -17.8 | -17.0 | -13.5 | -10.5 | -9.8 | ||||||||||||
Administrative and customer | -21.5 | -18.7 | -8.9 | -9.8 | -9.2 | -8.8 | -21.2 | -19.4 | -8.3 | -9.8 | -10.8 | -9.4 | ||||||||||||
Technology | -21.3 | -21.7 | -18.6 | -13.1 | -6.1 | -3.5 | -20.0 | -21.8 | -17.8 | -13.1 | -7.6 | -4.1 | ||||||||||||
Elimination of intersegment | -24.2 | -26.6 | -10.3 | 1.4 | 21.6 | 18.9 | -23.8 | -27.2 | -9.9 | 1.3 | 19.4 | 17.8 | ||||||||||||
Total contract talent solutions | -17.3 | -17.2 | -16.7 | -14.5 | -11.9 | -11.5 | -16.4 | -17.7 | -16.2 | -14.4 | -13.2 | -11.8 | ||||||||||||
Permanent placement talent | -23.3 | -22.0 | -20.4 | -12.2 | -11.9 | -11.1 | -22.5 | -22.6 | -19.8 | -12.0 | -13.2 | -11.4 | ||||||||||||
Total talent solutions | -18.1 | -17.8 | -17.2 | -14.2 | -11.9 | -11.4 | -17.3 | -18.3 | -16.7 | -14.0 | -13.2 | -11.7 | ||||||||||||
Protiviti | -6.0 | -7.1 | -6.1 | -0.9 | 6.4 | 5.3 | -4.9 | -7.5 | -5.4 | -0.9 | 4.5 | 4.5 | ||||||||||||
Total | -14.7 | -14.7 | -14.0 | -10.2 | -6.3 | -6.1 | -13.8 | -15.2 | -13.4 | -10.1 | -7.7 | -6.6 | ||||||||||||
Contract talent solutions | -20.7 | -20.5 | -19.1 | -15.7 | -12.4 | -10.3 | -19.2 | -20.3 | -18.6 | -15.8 | -13.7 | -11.2 | ||||||||||||
Permanent placement talent | -26.9 | -22.6 | -19.3 | -11.5 | -9.0 | -9.6 | -25.5 | -22.5 | -18.7 | -11.7 | -10.4 | -10.4 | ||||||||||||
Total talent solutions | -21.5 | -20.7 | -19.1 | -15.2 | -12.0 | -10.2 | -20.0 | -20.6 | -18.6 | -15.3 | -13.3 | -11.1 | ||||||||||||
Protiviti | -7.4 | -7.3 | -4.8 | 3.3 | 9.3 | 6.6 | -5.6 | -7.2 | -4.2 | 3.1 | 7.6 | 5.6 | ||||||||||||
Total | -17.5 | -16.8 | -14.9 | -9.6 | -5.2 | -4.7 | -15.9 | -16.7 | -14.3 | -9.7 | -6.7 | -5.7 | ||||||||||||
International | ||||||||||||||||||||||||
Contract talent solutions | -3.1 | -4.4 | -8.4 | -10.0 | -10.6 | -15.2 | -4.9 | -7.5 | -7.5 | -9.4 | -11.7 | -13.9 | ||||||||||||
Permanent placement talent | -13.0 | -20.6 | -23.2 | -13.8 | -18.6 | -14.7 | -14.2 | -22.8 | -22.1 | -13.0 | -19.8 | -13.7 | ||||||||||||
Total talent solutions | -4.8 | -7.2 | -10.8 | -10.7 | -11.9 | -15.1 | -6.6 | -10.1 | -9.9 | -10.0 | -13.0 | -13.9 | ||||||||||||
Protiviti | 0.3 | -6.1 | -11.3 | -16.2 | -5.6 | 0.2 | -1.5 | -8.9 | -10.1 | -15.9 | -8.1 | -0.4 | ||||||||||||
Total | -3.5 | -6.9 | -10.9 | -12.2 | -10.2 | -10.9 | -5.3 | -9.8 | -10.0 | -11.6 | -11.7 | -10.2 | ||||||||||||
(1) | Service revenues for finance and accounting, administrative and customer support, and technology include intersegment revenues, which represent revenues from services provided to Protiviti in connection with the Company's blended business solutions. Intersegment revenues for each functional specialization are aggregated and then eliminated as a single line item. |
The non-GAAP financial measures included in the table above adjust for the following items:
Billing Days. The "As Reported" revenue growth rates are based upon reported revenues. Management calculates the billing day impact by dividing each comparative period's reported revenues by the number of billing days for that period to arrive at a per billing day amount. Same billing day growth rates are then calculated based on the per billing day amounts. Management calculates a global, weighted-average number of billing days for each reporting period based upon input from all countries and all functional specializations and segments.
Foreign Currency Translation. The "As Reported" revenue growth rates are based upon reported revenues, which include the impact of changes in foreign currency exchange rates. The foreign currency impact is calculated by retranslating current period international revenues, using foreign currency exchange rates from the prior year's comparable period.
The term "As Adjusted" means that the impact of different billing days and constant currency fluctuations are removed from the revenue growth rate calculation. A reconciliation of the non-GAAP year-over-year revenue growth rates to the "As Reported" year-over-year revenue growth rates is included herein, on Pages 10-12.
ROBERT HALF INC. | ||||||||||||
NON-GAAP FINANCIAL MEASURES | ||||||||||||
REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED): | ||||||||||||
Year-Over-Year Revenue Growth – GLOBAL | ||||||||||||
Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | |||||||
Finance and accounting | ||||||||||||
As Reported | -16.0 | -17.2 | -17.5 | -13.6 | -9.2 | -9.5 | ||||||
Billing Days Impact | 1.6 | 0.1 | 0.7 | -0.3 | -1.5 | -0.8 | ||||||
Currency Impact | -0.8 | -0.7 | -0.2 | 0.4 | 0.2 | 0.5 | ||||||
As Adjusted | -15.2 | -17.8 | -17.0 | -13.5 | -10.5 | -9.8 | ||||||
Administrative and customer support | ||||||||||||
As Reported | -21.5 | -18.7 | -8.9 | -9.8 | -9.2 | -8.8 | ||||||
Billing Days Impact | 1.4 | 0.2 | 0.8 | -0.3 | -1.5 | -0.8 | ||||||
Currency Impact | -1.1 | -0.9 | -0.2 | 0.3 | -0.1 | 0.2 | ||||||
As Adjusted | -21.2 | -19.4 | -8.3 | -9.8 | -10.8 | -9.4 | ||||||
Technology | ||||||||||||
As Reported | -21.3 | -21.7 | -18.6 | -13.1 | -6.1 | -3.5 | ||||||
Billing Days Impact | 1.5 | 0.1 | 0.7 | -0.3 | -1.5 | -0.7 | ||||||
Currency Impact | -0.2 | -0.2 | 0.1 | 0.3 | 0.0 | 0.1 | ||||||
As Adjusted | -20.0 | -21.8 | -17.8 | -13.1 | -7.6 | -4.1 | ||||||
Elimination of intersegment revenues | ||||||||||||
As Reported | -24.2 | -26.6 | -10.3 | 1.4 | 21.6 | 18.9 | ||||||
Billing Days Impact | 1.4 | 0.1 | 0.7 | -0.3 | -1.9 | -1.0 | ||||||
Currency Impact | -1.0 | -0.7 | -0.3 | 0.2 | -0.3 | -0.1 | ||||||
As Adjusted | -23.8 | -27.2 | -9.9 | 1.3 | 19.4 | 17.8 | ||||||
Total contract talent solutions | ||||||||||||
As Reported | -17.3 | -17.2 | -16.7 | -14.5 | -11.9 | -11.5 | ||||||
Billing Days Impact | 1.6 | 0.2 | 0.6 | -0.3 | -1.4 | -0.7 | ||||||
Currency Impact | -0.7 | -0.7 | -0.1 | 0.4 | 0.1 | 0.4 | ||||||
As Adjusted | -16.4 | -17.7 | -16.2 | -14.4 | -13.2 | -11.8 | ||||||
Permanent placement talent solutions | ||||||||||||
As Reported | -23.3 | -22.0 | -20.4 | -12.2 | -11.9 | -11.1 | ||||||
Billing Days Impact | 1.5 | 0.1 | 0.7 | -0.3 | -1.4 | -0.7 | ||||||
Currency Impact | -0.7 | -0.7 | -0.1 | 0.5 | 0.1 | 0.4 | ||||||
As Adjusted | -22.5 | -22.6 | -19.8 | -12.0 | -13.2 | -11.4 | ||||||
Total talent solutions | ||||||||||||
As Reported | -18.1 | -17.8 | -17.2 | -14.2 | -11.9 | -11.4 | ||||||
Billing Days Impact | 1.5 | 0.2 | 0.6 | -0.2 | -1.4 | -0.7 | ||||||
Currency Impact | -0.7 | -0.7 | -0.1 | 0.4 | 0.1 | 0.4 | ||||||
As Adjusted | -17.3 | -18.3 | -16.7 | -14.0 | -13.2 | -11.7 | ||||||
Protiviti | ||||||||||||
As Reported | -6.0 | -7.1 | -6.1 | -0.9 | 6.4 | 5.3 | ||||||
Billing Days Impact | 1.8 | 0.2 | 0.7 | -0.3 | -1.7 | -0.8 | ||||||
Currency Impact | -0.7 | -0.6 | 0.0 | 0.3 | -0.2 | 0.0 | ||||||
As Adjusted | -4.9 | -7.5 | -5.4 | -0.9 | 4.5 | 4.5 | ||||||
Total | ||||||||||||
As Reported | -14.7 | -14.7 | -14.0 | -10.2 | -6.3 | -6.1 | ||||||
Billing Days Impact | 1.6 | 0.1 | 0.7 | -0.3 | -1.4 | -0.8 | ||||||
Currency Impact | -0.7 | -0.6 | -0.1 | 0.4 | 0.0 | 0.3 | ||||||
As Adjusted | -13.8 | -15.2 | -13.4 | -10.1 | -7.7 | -6.6 | ||||||
ROBERT HALF INC. | ||||||||||||
NON-GAAP FINANCIAL MEASURES | ||||||||||||
REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED): | ||||||||||||
Year-Over-Year Revenue Growth – | ||||||||||||
Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | |||||||
Contract talent solutions | ||||||||||||
As Reported | -20.7 | -20.5 | -19.1 | -15.7 | -12.4 | -10.3 | ||||||
Billing Days Impact | 1.5 | 0.2 | 0.5 | -0.1 | -1.3 | -0.9 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -19.2 | -20.3 | -18.6 | -15.8 | -13.7 | -11.2 | ||||||
Permanent placement talent solutions | ||||||||||||
As Reported | -26.9 | -22.6 | -19.3 | -11.5 | -9.0 | -9.6 | ||||||
Billing Days Impact | 1.4 | 0.1 | 0.6 | -0.2 | -1.4 | -0.8 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -25.5 | -22.5 | -18.7 | -11.7 | -10.4 | -10.4 | ||||||
Total talent solutions | ||||||||||||
As Reported | -21.5 | -20.7 | -19.1 | -15.2 | -12.0 | -10.2 | ||||||
Billing Days Impact | 1.5 | 0.1 | 0.5 | -0.1 | -1.3 | -0.9 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -20.0 | -20.6 | -18.6 | -15.3 | -13.3 | -11.1 | ||||||
Protiviti | ||||||||||||
As Reported | -7.4 | -7.3 | -4.8 | 3.3 | 9.3 | 6.6 | ||||||
Billing Days Impact | 1.8 | 0.1 | 0.6 | -0.2 | -1.7 | -1.0 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -5.6 | -7.2 | -4.2 | 3.1 | 7.6 | 5.6 | ||||||
Total | ||||||||||||
As Reported | -17.5 | -16.8 | -14.9 | -9.6 | -5.2 | -4.7 | ||||||
Billing Days Impact | 1.6 | 0.1 | 0.6 | -0.1 | -1.5 | -1.0 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -15.9 | -16.7 | -14.3 | -9.7 | -6.7 | -5.7 | ||||||
ROBERT HALF INC. | ||||||||||||
NON-GAAP FINANCIAL MEASURES | ||||||||||||
REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED): | ||||||||||||
Year-Over-Year Revenue Growth – INTERNATIONAL | ||||||||||||
Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | |||||||
Contract talent solutions | ||||||||||||
As Reported | -3.1 | -4.4 | -8.4 | -10.0 | -10.6 | -15.2 | ||||||
Billing Days Impact | 1.8 | 0.1 | 1.5 | -1.1 | -1.6 | -0.4 | ||||||
Currency Impact | -3.6 | -3.2 | -0.6 | 1.7 | 0.5 | 1.7 | ||||||
As Adjusted | -4.9 | -7.5 | -7.5 | -9.4 | -11.7 | -13.9 | ||||||
Permanent placement talent solutions | ||||||||||||
As Reported | -13.0 | -20.6 | -23.2 | -13.8 | -18.6 | -14.7 | ||||||
Billing Days Impact | 1.6 | 0.1 | 1.3 | -1.0 | -1.6 | -0.4 | ||||||
Currency Impact | -2.8 | -2.3 | -0.2 | 1.8 | 0.4 | 1.4 | ||||||
As Adjusted | -14.2 | -22.8 | -22.1 | -13.0 | -19.8 | -13.7 | ||||||
Total talent solutions | ||||||||||||
As Reported | -4.8 | -7.2 | -10.8 | -10.7 | -11.9 | -15.1 | ||||||
Billing Days Impact | 1.7 | 0.2 | 1.4 | -1.0 | -1.6 | -0.5 | ||||||
Currency Impact | -3.5 | -3.1 | -0.5 | 1.7 | 0.5 | 1.7 | ||||||
As Adjusted | -6.6 | -10.1 | -9.9 | -10.0 | -13.0 | -13.9 | ||||||
Protiviti | ||||||||||||
As Reported | 0.3 | -6.1 | -11.3 | -16.2 | -5.6 | 0.2 | ||||||
Billing Days Impact | 1.8 | 0.2 | 1.4 | -1.0 | -1.7 | -0.4 | ||||||
Currency Impact | -3.6 | -3.0 | -0.2 | 1.3 | -0.8 | -0.2 | ||||||
As Adjusted | -1.5 | -8.9 | -10.1 | -15.9 | -8.1 | -0.4 | ||||||
Total | ||||||||||||
As Reported | -3.5 | -6.9 | -10.9 | -12.2 | -10.2 | -10.9 | ||||||
Billing Days Impact | 1.7 | 0.1 | 1.3 | -1.0 | -1.6 | -0.5 | ||||||
Currency Impact | -3.5 | -3.0 | -0.4 | 1.6 | 0.1 | 1.2 | ||||||
As Adjusted | -5.3 | -9.8 | -10.0 | -11.6 | -11.7 | -10.2 | ||||||
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SOURCE Robert Half
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