ROBERT HALF REPORTS SECOND-QUARTER FINANCIAL RESULTS
Robert Half (NYSE: RHI) reported its Q2 2024 financial results, with net income of $68 million ($0.66 per share) on revenues of $1.473 billion. This represents a decline from Q2 2023, which saw net income of $106 million ($1.00 per share) on revenues of $1.639 billion. For the first half of 2024, net income was $132 million ($1.27 per share) on revenues of $2.948 billion, down from $228 million ($2.14 per share) on revenues of $3.356 billion in H1 2023.
CEO M. Keith Waddell noted that macroeconomic uncertainty continues to impact hiring and new project starts. However, Protiviti, Robert Half's consulting arm, posted strong results with U.S. growth in both revenues and segment income. The company maintains confidence in navigating the current climate and remains optimistic about future growth prospects.
Robert Half (NYSE: RHI) ha riportato i risultati finanziari del Q2 2024, con un utile netto di 68 milioni di dollari (0,66 dollari per azione) su entrate di 1,473 miliardi di dollari. Questo rappresenta un calo rispetto al Q2 2023, che aveva registrato un utile netto di 106 milioni di dollari (1,00 dollari per azione) su entrate di 1,639 miliardi di dollari. Per il primo semestre del 2024, l'utile netto è stato di 132 milioni di dollari (1,27 dollari per azione) su entrate di 2,948 miliardi di dollari, in diminuzione rispetto ai 228 milioni di dollari (2,14 dollari per azione) su entrate di 3,356 miliardi di dollari nel primo semestre del 2023.
Il CEO M. Keith Waddell ha osservato che l'incertezza macroeconomica continua a influenzare l'assunzione e l'avvio di nuovi progetti. Tuttavia, Protiviti, la divisione di consulenza di Robert Half, ha registrato risultati positivi con una crescita negli Stati Uniti sia in termini di entrate che di reddito di segmento. L'azienda mantiene fiducia nel gestire l'attuale situazione e rimane ottimista riguardo alle prospettive di crescita futura.
Robert Half (NYSE: RHI) reportó sus resultados financieros del Q2 2024, con un ingreso neto de 68 millones de dólares (0,66 dólares por acción) sobre ingresos de 1,473 mil millones de dólares. Esto representa una disminución respecto al Q2 2023, que vio un ingreso neto de 106 millones de dólares (1,00 dólares por acción) sobre ingresos de 1,639 mil millones de dólares. Para la primera mitad de 2024, el ingreso neto fue de 132 millones de dólares (1,27 dólares por acción) sobre ingresos de 2,948 mil millones de dólares, una baja con respecto a 228 millones de dólares (2,14 dólares por acción) sobre ingresos de 3,356 mil millones de dólares en el H1 2023.
El CEO M. Keith Waddell señaló que la incertidumbre macroeconómica continúa afectando la contratación y el inicio de nuevos proyectos. Sin embargo, Protiviti, la división de consultoría de Robert Half, presentó resultados sólidos con un crecimiento en EE. UU. tanto en ingresos como en ingresos segmentales. La empresa mantiene la confianza en navegar el clima actual y sigue siendo optimista sobre las perspectivas de crecimiento futuro.
로버트 하프(Robert Half)(NYSE: RHI)는 2024년 2분기(Q2) 재무 결과를 발표했으며, 순이익은 6,800만 달러 (주당 0.66달러)이며 매출은 14억 7천 3백만 달러입니다. 이는 2023년 2분기와 비교할 때 감소한 수치로, 당시 순이익은 1억 600만 달러(주당 1.00달러)였고, 매출은 16억 3천 9백만 달러였습니다. 2024년 상반기 기준으로 순이익은 1억 3천 2백만 달러(주당 1.27달러), 매출은 29억 4천 8백만 달러였고, 2023년 상반기(순이익 2억 2천 8백만 달러, 주당 2.14달러, 매출 33억 5천 6백만 달러)와 비교할 때 감소했습니다.
CEO M. Keith Waddell은 거시경제적 불확실성이 고용 및 새로운 프로젝트 시작에 계속 영향을 미치고 있다고 언급했습니다. 그러나 로버트 하프의 컨설팅 부서인 프로티비티(Protiviti)는 미국에서 매출과 세그먼트 소득 모두에서 강력한 성장세를 보였습니다. 회사는 현재의 환경을 잘 헤쳐 나갈 수 있다는 자신감을 유지하고 있으며, 미래 성장 전망에 대해 낙관적인 입장을 유지하고 있습니다.
Robert Half (NYSE : RHI) a annoncé ses résultats financiers pour le 2ème trimestre 2024, avec un revenu net de 68 millions de dollars (0,66 dollars par action) sur des revenus de 1,473 milliard de dollars. Cela représente une baisse par rapport au 2ème trimestre 2023, où on enregistrait un revenu net de 106 millions de dollars (1,00 dollars par action) sur des revenus de 1,639 milliard de dollars. Pour la première moitié de 2024, le revenu net était de 132 millions de dollars (1,27 dollars par action) sur des revenus de 2,948 milliards de dollars, en baisse par rapport à 228 millions de dollars (2,14 dollars par action) sur des revenus de 3,356 milliards de dollars dans le premier semestre 2023.
Le PDG M. Keith Waddell a noté que l'incertitude macroéconomique continue d'impacter l'embauche et le démarrage de nouveaux projets. Cependant, Protiviti, la branche de conseil de Robert Half, a affiché de bons résultats avec une croissance aux États-Unis tant en termes de revenus que de bénéfices segmentaires. L'entreprise maintient sa confiance pour naviguer dans le climat actuel et reste optimiste quant aux perspectives de croissance future.
Robert Half (NYSE: RHI) hat seine Finanzzahlen für das 2. Quartal 2024 veröffentlicht, mit einem Nettoergebnis von 68 Millionen US-Dollar (0,66 US-Dollar pro Aktie) bei Umsätzen von 1,473 Milliarden US-Dollar. Dies stellt einen Rückgang im Vergleich zum 2. Quartal 2023 dar, in dem das Nettoergebnis 106 Millionen US-Dollar (1,00 US-Dollar pro Aktie) bei Umsätzen von 1,639 Milliarden US-Dollar betrug. Für die erste Hälfte 2024 lag das Nettoergebnis bei 132 Millionen US-Dollar (1,27 US-Dollar pro Aktie) und die Umsätze bei 2,948 Milliarden US-Dollar, was einem Rückgang im Vergleich zu 228 Millionen US-Dollar (2,14 US-Dollar pro Aktie) bei Umsätzen von 3,356 Milliarden US-Dollar in der ersten Hälfte 2023 entspricht.
CEO M. Keith Waddell wies darauf hin, dass macroeconomische Unsicherheiten weiterhin die Einstellungen und den Start neuer Projekte beeinflussen. Dennoch erzielte Protiviti, der Consulting-Bereich von Robert Half, starke Ergebnisse mit Wachstum in den USA, sowohl bei den Umsätzen als auch beim Segmentergebnis. Das Unternehmen hat Vertrauen, die aktuelle Lage zu navigieren, und bleibt optimistisch hinsichtlich der zukünftigen Wachstumsperspektiven.
- Protiviti posted strong results with U.S. growth in revenues and segment income
- Q2 revenues and earnings were within the company's guidance range
- Robert Half ranked No. 1 on Forbes' list of America's Best Professional Recruiting Firms
- Net income decreased from $106 million in Q2 2023 to $68 million in Q2 2024
- Revenues declined from $1.639 billion in Q2 2023 to $1.473 billion in Q2 2024
- Earnings per share dropped from $1.00 in Q2 2023 to $0.66 in Q2 2024
- Macroeconomic uncertainty continues to impact hiring activity and new project starts
Insights
Robert Half's Q2 2024 financial results paint a mixed picture, reflecting ongoing economic challenges. The company reported
The year-to-date figures show a similar trend, with revenues down
However, it's not all doom and gloom. Protiviti, Robert Half's consulting arm, demonstrated resilience with strong performance, particularly in the U.S. market. This division's growth in both revenues and segment income, both sequentially and year-over-year, suggests a robust demand for consulting services despite the overall challenging environment.
Investors should note that while the results are within the company's guidance range, the significant year-over-year declines in revenue and earnings indicate ongoing pressures in the talent solutions sector. The company's ability to navigate these challenges while maintaining its market position will be important for its future performance.
Robert Half's Q2 results offer valuable insights into the current state of the job market and broader economic trends. The
Interestingly, the strong performance of Protiviti, especially in the U.S., suggests a shift in corporate priorities. While companies may be pulling back on permanent hires, they appear to be increasingly turning to consulting services. This could indicate a preference for flexible, project-based solutions in the face of economic uncertainty.
The company's continued recognition in various rankings, such as Forbes' list of America's Best Professional Recruiting Firms, suggests that Robert Half is maintaining its brand strength and market position despite the challenging environment. This could potentially position the company well for a recovery when economic conditions improve.
However, investors should remain cautious. The persistent nature of these challenges, as indicated by the year-to-date figures, suggests that a quick turnaround is unlikely. The company's ability to adapt its services and maintain its competitive edge in a changing market landscape will be important for its long-term success.
For the three months ended June 30, 2024, net income was
For the six months ended June 30, 2024, net income was
"Client and candidate caution continues to impact hiring activity and new project starts as macroeconomic and interest rate uncertainty persist. Second-quarter revenues and earnings were within our guidance range. Protiviti posted strong results, led by
"We'd like to thank our employees across the globe, whose commitment to success made possible a number of new accolades. Robert Half again ranked No. 1 on Forbes' list of America's Best Professional Recruiting Firms, and our people-first culture was reflected in our selection as one of Fortune's Best Workplaces for Millennials, Forbes' Best Employers for Diversity, and — just yesterday — Forbes' Best Employers for Women," Waddell concluded.
Robert Half management will conduct a conference call today at 5 p.m. EDT. 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. EDT on July 24 and ending after 12 months. To access the replay, visit https://webcasts.com/RobertHalfQ22024. 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 Fortune® World's Most Admired Companies™ and 100 Best Companies to Work For, and a Forbes Best Employer for Diversity.
Certain information contained in Management's Discussion and Analysis and in other parts of this report 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 Non-GAAP Financial Measures |
ROBERT HALF INC. SUMMARY OF OPERATIONS (in thousands, except per share amounts) | |||||||
Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Unaudited) | (Unaudited) | ||||||
Service revenues | $ 1,472,524 | $ 1,639,478 | $ 2,948,461 | $ 3,355,813 | |||
Costs of services | 895,845 | 979,309 | 1,808,985 | 2,005,912 | |||
Gross margin | 576,679 | 660,169 | 1,139,476 | 1,349,901 | |||
Selling, general and administrative expenses | 500,832 | 541,904 | 1,022,427 | 1,094,133 | |||
Income from investments held in employee deferred compensation trusts | (15,733) | (28,347) | (59,109) | (55,638) | |||
Amortization of intangible assets | 304 | 721 | 608 | 1,442 | |||
Interest income, net | (5,186) | (5,320) | (11,599) | (10,145) | |||
Income before income taxes | 96,462 | 151,211 | 187,149 | 320,109 | |||
Provision for income taxes | 28,306 | 44,919 | 55,292 | 91,812 | |||
Net income | $ 68,156 | $ 106,292 | $ 131,857 | $ 228,297 | |||
Diluted net income per share | $ 0.66 | $ 1.00 | $ 1.27 | $ 2.14 | |||
Weighted average shares: | |||||||
Basic | 103,151 | 106,102 | 103,469 | 106,260 | |||
Diluted | 103,328 | 106,422 | 103,864 | 106,775 | |||
ROBERT HALF INC. SUPPLEMENTAL FINANCIAL INFORMATION (in thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Unaudited) | (Unaudited) | ||||||
SERVICE REVENUES INFORMATION | |||||||
Contract talent solutions | |||||||
Finance and accounting | $ 623,120 | $ 721,391 | |||||
Administrative and customer support | 190,344 | 211,023 | 390,276 | 430,373 | |||
Technology | 157,899 | 181,776 | 315,869 | 375,858 | |||
Elimination of intersegment revenues (1) | (116,466) | (114,807) | (229,280) | (240,598) | |||
Total contract talent solutions | 854,897 | 999,383 | 1,741,955 | 2,064,857 | |||
Permanent placement talent solutions | 131,063 | 149,254 | 255,830 | 305,991 | |||
Protiviti | 486,564 | 490,841 | 950,676 | 984,965 | |||
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 June 30, | Six Months Ended June 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
$ | % of | $ | % of | $ | % of | $ | % of | ||||
(Unaudited) | (Unaudited) | ||||||||||
BUSINESS SEGMENT INCOME INFORMATION: | |||||||||||
Contract talent solutions | $ 38,146 | 4.5 % | $ 81,316 | 8.1 % | $ 88,264 | 5.1 % | $ 183,462 | 8.9 % | |||
Permanent placement talent solutions | $ 16,148 | 12.3 % | $ 21,730 | 14.6 % | $ 28,003 | 10.9 % | $ 45,557 | 14.9 % | |||
Protiviti | $ 37,286 | 7.7 % | $ 43,566 | 8.9 % | $ 59,891 | 6.3 % | $ 82,387 | 8.4 % | |||
June 30, | ||||
2024 | 2023 | |||
(Unaudited) | ||||
SELECTED BALANCE SHEET INFORMATION: | ||||
Cash and cash equivalents | $ 547,370 | $ 722,763 | ||
Accounts receivable, net | $ 893,467 | $ 974,008 | ||
Total assets | ||||
Total current liabilities | ||||
Total stockholders' equity | ||||
Six Months Ended June 30, | ||||
2024 | 2023 | |||
(Unaudited) | ||||
SELECTED CASH FLOW INFORMATION: | ||||
Depreciation | $ 25,520 | $ 25,229 | ||
Capitalized cloud computing implementation costs | $ 15,557 | $ 20,184 | ||
Capital expenditures | $ 24,174 | $ 19,093 | ||
Open market repurchases of common stock (shares) | 1,660 | 1,137 | ||
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 June 30, | Relationships | Six Months Ended June 30, | 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 | $ 336,161 | $ 398,636 | $ 336,161 | $ 398,636 | 39.3 % | 39.9 % | 39.3 % | 39.9 % | $ 686,731 | $ 822,261 | $ 686,731 | $ 822,261 | 39.4 % | 39.8 % | 39.4 % | 39.8 % | |||||||||||||||
Permanent placement talent | 130,801 | 148,975 | 130,801 | 148,975 | 99.8 % | 99.8 % | 99.8 % | 99.8 % | 255,349 | 305,370 | 255,349 | 305,370 | 99.8 % | 99.8 % | 99.8 % | 99.8 % | |||||||||||||||
Total talent solutions | 466,962 | 547,611 | 466,962 | 547,611 | 47.4 % | 47.7 % | 47.4 % | 47.7 % | 942,080 | 1,127,631 | 942,080 | 1,127,631 | 47.2 % | 47.6 % | 47.2 % | 47.6 % | |||||||||||||||
Protiviti | 109,717 | 112,558 | 112,947 | 117,882 | 22.5 % | 22.9 % | 23.2 % | 24.0 % | 197,396 | 222,270 | 208,983 | 232,366 | 20.8 % | 22.6 % | 22.0 % | 23.6 % | |||||||||||||||
Total | $ 576,679 | $ 660,169 | $ 579,909 | $ 665,493 | 39.2 % | 40.3 % | 39.4 % | 40.6 % | $ 1,139,476 | $ 1,349,901 | $ 1,151,063 | $ 1,359,997 | 38.6 % | 40.2 % | 39.0 % | 40.5 % | |||||||||||||||
The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the three months ended June 30, 2024 and 2023:
Three Months Ended June 30, 2024 | Three Months Ended June 30, 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 | $ 336,161 | 39.3 % | $ 130,801 | 99.8 % | $ 466,962 | 47.4 % | $ 109,717 | 22.5 % | $ 576,679 | 39.2 % | $ 398,636 | 39.9 % | $ 148,975 | 99.8 % | $ 547,611 | 47.7 % | $ 112,558 | 22.9 % | $ 660,169 | 40.3 % | |||||||||
Adjustments (1) | — | — | — | — | — | — | 3,230 | 0.7 % | 3,230 | 0.2 % | — | — | — | — | — | — | 5,324 | 1.1 % | 5,324 | 0.3 % | |||||||||
As Adjusted | $ 336,161 | 39.3 % | $ 130,801 | 99.8 % | $ 466,962 | 47.4 % | $ 112,947 | 23.2 % | $ 579,909 | 39.4 % | $ 398,636 | 39.9 % | $ 148,975 | 99.8 % | $ 547,611 | 47.7 % | $ 117,882 | 24.0 % | $ 665,493 | 40.6 % | |||||||||
The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the six months ended June 30, 2024 and 2023:
Six Months Ended June 30, 2024 | Six Months Ended June 30, 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 | $ 686,731 | 39.4 % | $ 255,349 | 99.8 % | $ 942,080 | 47.2 % | 20.8 % | $ 1,139,476 | 38.6 % | $ 822,261 | 39.8 % | $ 305,370 | 99.8 % | $ 1,127,631 | 47.6 % | 22.6 % | $ 1,349,901 | 40.2 % | |||||||||||
Adjustments (1) | — | — | — | — | — | — | 11,587 | 1.2 % | 11,587 | 0.4 % | — | — | — | — | — | — | 10,096 | 1.0 % | 10,096 | 0.3 % | |||||||||
As Adjusted | $ 686,731 | 39.4 % | $ 255,349 | 99.8 % | $ 942,080 | 47.2 % | 22.0 % | $ 1,151,063 | 39.0 % | $ 822,261 | 39.8 % | $ 305,370 | 99.8 % | $ 1,127,631 | 47.6 % | 23.6 % | $ 1,359,997 | 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 June 30, | Relationships | Six Months Ended June 30, | 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 | $ 308,886 | $ 337,742 | $ 298,015 | $ 317,320 | 36.1 % | 33.8 % | 34.9 % | 31.8 % | $ 640,474 | $ 679,464 | $ 598,467 | $ 638,799 | 36.8 % | 32.9 % | 34.4 % | 30.9 % | |||||||||||||||
Permanent placement talent | 116,285 | 129,846 | 114,653 | 127,245 | 88.7 % | 87.0 % | 87.5 % | 85.3 % | 232,861 | 264,690 | 227,346 | 259,813 | 91.0 % | 86.5 % | 88.9 % | 84.9 % | |||||||||||||||
Total talent solutions | 425,171 | 467,588 | 412,668 | 444,565 | 43.1 % | 40.7 % | 41.9 % | 38.7 % | 873,335 | 944,154 | 825,813 | 898,612 | 43.7 % | 39.8 % | 41.3 % | 37.9 % | |||||||||||||||
Protiviti | 75,661 | 74,316 | 75,661 | 74,316 | 15.6 % | 15.1 % | 15.6 % | 15.1 % | 149,092 | 149,979 | 149,092 | 149,979 | 15.7 % | 15.2 % | 15.7 % | 15.2 % | |||||||||||||||
Total | $ 500,832 | $ 541,904 | $ 488,329 | $ 518,881 | 34.0 % | 33.1 % | 33.2 % | 31.6 % | $ 1,022,427 | $ 1,094,133 | $ 974,905 | $ 1,048,591 | 34.7 % | 32.6 % | 33.1 % | 31.2 % | |||||||||||||||
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 June 30, 2024 and 2023:
Three Months Ended June 30, 2024 | Three Months Ended June 30, 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 | 36.1 % | 88.7 % | $ 425,171 | 43.1 % | $ 75,661 | 15.6 % | $ 500,832 | 34.0 % | 33.8 % | 87.0 % | 40.7 % | $ 74,316 | 15.1 % | $ 541,904 | 33.1 % | ||||||||||||||
Adjustments (1) | (10,871) | (1.2 %) | (1,632) | (1.2 %) | (12,503) | (1.2 %) | — | — | (12,503) | (0.8 %) | (20,422) | (2.0 %) | (2,601) | (1.7 %) | (23,023) | (2.0 %) | — | — | (23,023) | (1.5 %) | |||||||||
As Adjusted | 34.9 % | 87.5 % | $ 412,668 | 41.9 % | $ 75,661 | 15.6 % | $ 488,329 | 33.2 % | 31.8 % | 85.3 % | 38.7 % | $ 74,316 | 15.1 % | $ 518,881 | 31.6 % | ||||||||||||||
The following tables provide reconciliations of the non-GAAP adjusted selling, general and administrative expenses to reported selling, general and administrative expenses for the six months ended June 30, 2024 and 2023:
Six Months Ended June 30, 2024 | Six Months Ended June 30, 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 | $ 640,474 | 36.8 % | 91.0 % | $ 873,335 | 43.7 % | $ 149,092 | 15.7 % | $ 1,022,427 | 34.7 % | $ 679,464 | 32.9 % | 86.5 % | $ 944,154 | 39.8 % | $ 149,979 | 15.2 % | $ 1,094,133 | 32.6 % | |||||||||||
Adjustments (1) | (42,007) | (2.4 %) | (5,515) | (2.1 %) | (47,522) | (2.4) % | — | — | (47,522) | (1.6 %) | (40,665) | (2.0 %) | (4,877) | (1.6 %) | (45,542) | (1.9 %) | — | — | (45,542) | (1.4 %) | |||||||||
As Adjusted | $ 598,467 | 34.4 % | 88.9 % | $ 825,813 | 41.3 % | $ 149,092 | 15.7 % | $ 974,905 | 33.1 % | $ 638,799 | 30.9 % | 84.9 % | $ 898,612 | 37.9 % | $ 149,979 | 15.2 % | $ 1,048,591 | 31.2 % | |||||||||||
(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 | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
$ | % of | $ | % of | $ | % of | $ | % of | ||||
Income before income taxes | $ 96,462 | 6.6 % | $ 151,211 | 9.2 % | 6.3 % | 9.5 % | |||||
Interest income, net | (5,186) | (0.4 %) | (5,320) | (0.3 %) | (11,599) | (0.3 %) | (10,145) | (0.2 %) | |||
Amortization of intangible assets | 304 | 0.0 % | 721 | 0.0 % | 608 | 0.0 % | 1,442 | 0.0 % | |||
Combined segment income | $ 91,580 | 6.2 % | $ 146,612 | 8.9 % | 6.0 % | 9.3 % | |||||
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 | |||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |||||||||||||
Global | ||||||||||||||||||||||||
Finance and accounting | -3.0 | -11.0 | -16.0 | -17.2 | -17.5 | -13.6 | -3.1 | -10.8 | -15.2 | -17.8 | -17.0 | -13.5 | ||||||||||||
Administrative and customer support | -23.0 | -23.0 | -21.5 | -18.7 | -8.9 | -9.8 | -23.2 | -23.0 | -21.2 | -19.4 | -8.3 | -9.8 | ||||||||||||
Technology | -9.0 | -16.7 | -21.3 | -21.7 | -18.6 | -13.1 | -9.3 | -16.2 | -20.0 | -21.8 | -17.8 | -13.1 | ||||||||||||
Elimination of intersegment revenues (1) | -12.8 | -16.5 | -24.2 | -26.6 | -10.3 | 1.4 | -12.7 | -16.5 | -23.8 | -27.2 | -9.9 | 1.3 | ||||||||||||
Total contract talent solutions | -7.8 | -14.3 | -17.3 | -17.2 | -16.7 | -14.5 | -8.0 | -14.0 | -16.4 | -17.7 | -16.2 | -14.4 | ||||||||||||
Permanent placement talent solutions | -16.1 | -25.4 | -23.3 | -22.0 | -20.4 | -12.2 | -15.8 | -25.0 | -22.5 | -22.6 | -19.8 | -12.0 | ||||||||||||
Total talent solutions | -9.0 | -15.9 | -18.1 | -17.8 | -17.2 | -14.2 | -9.1 | -15.6 | -17.3 | -18.3 | -16.7 | -14.0 | ||||||||||||
Protiviti | 4.6 | -1.2 | -6.0 | -7.1 | -6.1 | -0.9 | 4.4 | -1.0 | -4.9 | -7.5 | -5.4 | -0.9 | ||||||||||||
Total | -5.4 | -12.0 | -14.7 | -14.7 | -14.0 | -10.2 | -5.6 | -11.7 | -13.8 | -15.2 | -13.4 | -10.1 | ||||||||||||
Contract talent solutions | -8.6 | -16.0 | -20.7 | -20.5 | -19.1 | -15.7 | -9.9 | -15.9 | -19.2 | -20.3 | -18.6 | -15.8 | ||||||||||||
Permanent placement talent solutions | -16.9 | -26.2 | -26.9 | -22.6 | -19.3 | -11.5 | -18.1 | -26.1 | -25.5 | -22.5 | -18.7 | -11.7 | ||||||||||||
Total talent solutions | -9.7 | -17.4 | -21.5 | -20.7 | -19.1 | -15.2 | -11.0 | -17.2 | -20.0 | -20.6 | -18.6 | -15.3 | ||||||||||||
Protiviti | 7.5 | -2.4 | -7.4 | -7.3 | -4.8 | 3.3 | 5.9 | -2.3 | -5.6 | -7.2 | -4.2 | 3.1 | ||||||||||||
Total | -5.2 | -13.3 | -17.5 | -16.8 | -14.9 | -9.6 | -6.6 | -13.2 | -15.9 | -16.7 | -14.3 | -9.7 | ||||||||||||
International | ||||||||||||||||||||||||
Contract talent solutions | -4.7 | -7.6 | -3.1 | -4.4 | -8.4 | -10.0 | -1.2 | -6.2 | -4.9 | -7.5 | -7.5 | -9.4 | ||||||||||||
Permanent placement talent solutions | -14.0 | -23.4 | -13.0 | -20.6 | -23.2 | -13.8 | -10.5 | -21.9 | -14.2 | -22.8 | -22.1 | -13.0 | ||||||||||||
Total talent solutions | -6.4 | -10.6 | -4.8 | -7.2 | -10.8 | -10.7 | -2.9 | -9.2 | -6.6 | -10.1 | -9.9 | -10.0 | ||||||||||||
Protiviti | -5.7 | 3.3 | 0.3 | -6.1 | -11.3 | -16.2 | -1.5 | 4.2 | -1.5 | -8.9 | -10.1 | -15.9 | ||||||||||||
Total | -6.2 | -7.0 | -3.5 | -6.9 | -10.9 | -12.2 | -2.5 | -5.8 | -5.3 | -9.8 | -10.0 | -11.6 | ||||||||||||
(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 | ||||||||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | |||||||
Finance and accounting | ||||||||||||
As Reported | -3.0 | -11.0 | -16.0 | -17.2 | -17.5 | -13.6 | ||||||
Billing Days Impact | -1.3 | 0.1 | 1.6 | 0.1 | 0.7 | -0.3 | ||||||
Currency Impact | 1.2 | 0.1 | -0.8 | -0.7 | -0.2 | 0.4 | ||||||
As Adjusted | -3.1 | -10.8 | -15.2 | -17.8 | -17.0 | -13.5 | ||||||
Administrative and customer support | ||||||||||||
As Reported | -23.0 | -23.0 | -21.5 | -18.7 | -8.9 | -9.8 | ||||||
Billing Days Impact | -1.1 | 0.1 | 1.4 | 0.2 | 0.8 | -0.3 | ||||||
Currency Impact | 0.9 | -0.1 | -1.1 | -0.9 | -0.2 | 0.3 | ||||||
As Adjusted | -23.2 | -23.0 | -21.2 | -19.4 | -8.3 | -9.8 | ||||||
Technology | ||||||||||||
As Reported | -9.0 | -16.7 | -21.3 | -21.7 | -18.6 | -13.1 | ||||||
Billing Days Impact | -1.3 | 0.1 | 1.5 | 0.1 | 0.7 | -0.3 | ||||||
Currency Impact | 1.0 | 0.4 | -0.2 | -0.2 | 0.1 | 0.3 | ||||||
As Adjusted | -9.3 | -16.2 | -20.0 | -21.8 | -17.8 | -13.1 | ||||||
Elimination of intersegment revenues | ||||||||||||
As Reported | -12.8 | -16.5 | -24.2 | -26.6 | -10.3 | 1.4 | ||||||
Billing Days Impact | -1.3 | 0.1 | 1.4 | 0.1 | 0.7 | -0.3 | ||||||
Currency Impact | 1.4 | -0.1 | -1.0 | -0.7 | -0.3 | 0.2 | ||||||
As Adjusted | -12.7 | -16.5 | -23.8 | -27.2 | -9.9 | 1.3 | ||||||
Total contract talent solutions | ||||||||||||
As Reported | -7.8 | -14.3 | -17.3 | -17.2 | -16.7 | -14.5 | ||||||
Billing Days Impact | -1.3 | 0.1 | 1.6 | 0.2 | 0.6 | -0.3 | ||||||
Currency Impact | 1.1 | 0.2 | -0.7 | -0.7 | -0.1 | 0.4 | ||||||
As Adjusted | -8.0 | -14.0 | -16.4 | -17.7 | -16.2 | -14.4 | ||||||
Permanent placement talent solutions | ||||||||||||
As Reported | -16.1 | -25.4 | -23.3 | -22.0 | -20.4 | -12.2 | ||||||
Billing Days Impact | -1.1 | 0.1 | 1.5 | 0.1 | 0.7 | -0.3 | ||||||
Currency Impact | 1.4 | 0.3 | -0.7 | -0.7 | -0.1 | 0.5 | ||||||
As Adjusted | -15.8 | -25.0 | -22.5 | -22.6 | -19.8 | -12.0 | ||||||
Total talent solutions | ||||||||||||
As Reported | -9.0 | -15.9 | -18.1 | -17.8 | -17.2 | -14.2 | ||||||
Billing Days Impact | -1.2 | 0.1 | 1.5 | 0.2 | 0.6 | -0.2 | ||||||
Currency Impact | 1.1 | 0.2 | -0.7 | -0.7 | -0.1 | 0.4 | ||||||
As Adjusted | -9.1 | -15.6 | -17.3 | -18.3 | -16.7 | -14.0 | ||||||
Protiviti | ||||||||||||
As Reported | 4.6 | -1.2 | -6.0 | -7.1 | -6.1 | -0.9 | ||||||
Billing Days Impact | -1.5 | 0.2 | 1.8 | 0.2 | 0.7 | -0.3 | ||||||
Currency Impact | 1.3 | 0.0 | -0.7 | -0.6 | 0.0 | 0.3 | ||||||
As Adjusted | 4.4 | -1.0 | -4.9 | -7.5 | -5.4 | -0.9 | ||||||
Total | ||||||||||||
As Reported | -5.4 | -12.0 | -14.7 | -14.7 | -14.0 | -10.2 | ||||||
Billing Days Impact | -1.4 | 0.2 | 1.6 | 0.1 | 0.7 | -0.3 | ||||||
Currency Impact | 1.2 | 0.1 | -0.7 | -0.6 | -0.1 | 0.4 | ||||||
As Adjusted | -5.6 | -11.7 | -13.8 | -15.2 | -13.4 | -10.1 | ||||||
ROBERT HALF INC NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED): | ||||||||||||
Year-Over-Year Revenue Growth – | ||||||||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | |||||||
Contract talent solutions | ||||||||||||
As Reported | -8.6 | -16.0 | -20.7 | -20.5 | -19.1 | -15.7 | ||||||
Billing Days Impact | -1.3 | 0.1 | 1.5 | 0.2 | 0.5 | -0.1 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -9.9 | -15.9 | -19.2 | -20.3 | -18.6 | -15.8 | ||||||
Permanent placement talent solutions | ||||||||||||
As Reported | -16.9 | -26.2 | -26.9 | -22.6 | -19.3 | -11.5 | ||||||
Billing Days Impact | -1.2 | 0.1 | 1.4 | 0.1 | 0.6 | -0.2 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -18.1 | -26.1 | -25.5 | -22.5 | -18.7 | -11.7 | ||||||
Total talent solutions | ||||||||||||
As Reported | -9.7 | -17.4 | -21.5 | -20.7 | -19.1 | -15.2 | ||||||
Billing Days Impact | -1.3 | 0.2 | 1.5 | 0.1 | 0.5 | -0.1 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -11.0 | -17.2 | -20.0 | -20.6 | -18.6 | -15.3 | ||||||
Protiviti | ||||||||||||
As Reported | 7.5 | -2.4 | -7.4 | -7.3 | -4.8 | 3.3 | ||||||
Billing Days Impact | -1.6 | 0.1 | 1.8 | 0.1 | 0.6 | -0.2 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | 5.9 | -2.3 | -5.6 | -7.2 | -4.2 | 3.1 | ||||||
Total | ||||||||||||
As Reported | -5.2 | -13.3 | -17.5 | -16.8 | -14.9 | -9.6 | ||||||
Billing Days Impact | -1.4 | 0.1 | 1.6 | 0.1 | 0.6 | -0.1 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -6.6 | -13.2 | -15.9 | -16.7 | -14.3 | -9.7 | ||||||
ROBERT HALF INC. NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED): | ||||||||||||
Year-Over-Year Revenue Growth – INTERNATIONAL | ||||||||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | |||||||
Contract talent solutions | ||||||||||||
As Reported | -4.7 | -7.6 | -3.1 | -4.4 | -8.4 | -10.0 | ||||||
Billing Days Impact | -1.7 | 0.6 | 1.8 | 0.1 | 1.5 | -1.1 | ||||||
Currency Impact | 5.2 | 0.8 | -3.6 | -3.2 | -0.6 | 1.7 | ||||||
As Adjusted | -1.2 | -6.2 | -4.9 | -7.5 | -7.5 | -9.4 | ||||||
Permanent placement talent solutions | ||||||||||||
As Reported | -14.0 | -23.4 | -13.0 | -20.6 | -23.2 | -13.8 | ||||||
Billing Days Impact | -1.6 | 0.5 | 1.6 | 0.1 | 1.3 | -1.0 | ||||||
Currency Impact | 5.1 | 1.0 | -2.8 | -2.3 | -0.2 | 1.8 | ||||||
As Adjusted | -10.5 | -21.9 | -14.2 | -22.8 | -22.1 | -13.0 | ||||||
Total talent solutions | ||||||||||||
As Reported | -6.4 | -10.6 | -4.8 | -7.2 | -10.8 | -10.7 | ||||||
Billing Days Impact | -1.7 | 0.6 | 1.7 | 0.2 | 1.4 | -1.0 | ||||||
Currency Impact | 5.2 | 0.8 | -3.5 | -3.1 | -0.5 | 1.7 | ||||||
As Adjusted | -2.9 | -9.2 | -6.6 | -10.1 | -9.9 | -10.0 | ||||||
Protiviti | ||||||||||||
As Reported | -5.7 | 3.3 | 0.3 | -6.1 | -11.3 | -16.2 | ||||||
Billing Days Impact | -1.7 | 0.7 | 1.8 | 0.2 | 1.4 | -1.0 | ||||||
Currency Impact | 5.9 | 0.2 | -3.6 | -3.0 | -0.2 | 1.3 | ||||||
As Adjusted | -1.5 | 4.2 | -1.5 | -8.9 | -10.1 | -15.9 | ||||||
Total | ||||||||||||
As Reported | -6.2 | -7.0 | -3.5 | -6.9 | -10.9 | -12.2 | ||||||
Billing Days Impact | -1.7 | 0.5 | 1.7 | 0.1 | 1.3 | -1.0 | ||||||
Currency Impact | 5.4 | 0.7 | -3.5 | -3.0 | -0.4 | 1.6 | ||||||
As Adjusted | -2.5 | -5.8 | -5.3 | -9.8 | -10.0 | -11.6 | ||||||
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SOURCE Robert Half
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