ROBERT HALF REPORTS THIRD-QUARTER FINANCIAL RESULTS
Robert Half Inc. (NYSE: RHI) reported third-quarter financial results for the period ended September 30, 2024. The company's net income was $65 million, or $0.64 per share, on revenues of $1.465 billion. This represents a decrease from the same period in 2023, which saw net income of $96 million, or $0.90 per share, on revenues of $1.564 billion.
Despite the overall decline, Protiviti, a Robert Half subsidiary, showed strong performance with sequential and year-on-year revenue gains. CEO M. Keith Waddell noted that while client budgets remain constrained, business confidence levels are improving, aided by progress on inflation and the beginning of a global rate-cutting cycle. The company's recent weekly results have been stable for the past 12 to 14 weeks.
Robert Half also received several accolades, including being named one of Fortune's Best Workplaces in Consulting & Professional Services™ and one of PEOPLE's Companies that Care®.
Robert Half Inc. (NYSE: RHI) ha riportato i risultati finanziari del terzo trimestre per il periodo terminato il 30 settembre 2024. Il reddito netto della società è stato di 65 milioni di dollari, ovvero 0,64 dollari per azione, su entrate di 1,465 miliardi di dollari. Questo rappresenta una diminuzione rispetto allo stesso periodo del 2023, che ha visto un reddito netto di 96 milioni di dollari, o 0,90 dollari per azione, su entrate di 1,564 miliardi di dollari.
Nonostante il calo complessivo, Protiviti, una filiale di Robert Half, ha mostrato una performance forte con guadagni di entrate sia sequenziali che anno su anno. Il CEO M. Keith Waddell ha osservato che, sebbene i budget dei clienti rimangano limitati, i livelli di fiducia nel business stanno migliorando, supportati dai progressi sulla inflazione e dall'inizio di un ciclo globale di riduzione dei tassi. I risultati settimanali recenti dell'azienda sono stati stabili negli ultimi 12-14 settimane.
Robert Half ha inoltre ricevuto diversi riconoscimenti, tra cui essere stata nominata uno dei migliori posti di lavoro in Consulting & Professional Services™ da Fortune e una delle aziende che si prendono cura dei dipendenti® da PEOPLE.
Robert Half Inc. (NYSE: RHI) reportó los resultados financieros del tercer trimestre para el periodo que terminó el 30 de septiembre de 2024. El ingreso neto de la compañía fue de 65 millones de dólares, o 0,64 dólares por acción, sobre ingresos de 1.465 millones de dólares. Esto representa una disminución respecto al mismo periodo de 2023, que tuvo un ingreso neto de 96 millones de dólares, o 0,90 dólares por acción, sobre ingresos de 1.564 millones de dólares.
A pesar de la disminución general, Protiviti, una subsidiaria de Robert Half, mostró un rendimiento fuerte con ganancias en ingresos secuenciales y anuales. El CEO M. Keith Waddell señaló que, aunque los presupuestos de los clientes siguen siendo limitados, los niveles de confianza empresarial están mejorando, apoyados por el progreso en la inflación y el inicio de un ciclo global de reducción de tasas. Los resultados semanales recientes de la compañía han sido estables durante las últimas 12 a 14 semanas.
Robert Half también recibió varios reconocimientos, incluyendo ser nombrada uno de los Mejores Lugares para Trabajar en Consultoría y Servicios Profesionales™ por Fortune y una de las Empresas que se Preocupan® por PEOPLE.
로버트 하프(주식코드: RHI)는 2024년 9월 30일로 종료된 기간에 대한 3분기 재무 결과를 보고했습니다. 회사의 순이익은 6천5백만 달러로, 주당 0.64 달러이며, 매출은 14억6천5백만 달러였습니다. 이는 2023년 같은 기간에 비해 감소한 수치로, 당시 순이익은 9천6백만 달러였으며, 주당 0.90 달러, 매출은 15억6천4백만 달러였습니다.
전체적인 감소에도 불구하고, 프로티비티(Robert Half의 자회사)는 순차적 및 연간 매출 증가로 강력한 성과를 보였습니다. CEO M. Keith Waddell은 고객 예산이 제한된 상태에서도 비즈니스 신뢰 수준이 개선되고 있다며, 이는 인플레이션 개선과 세계적인 금리 인하 사이클의 시작 덕분이라고 언급했습니다. 최근 12~14주간 회사의 주간 결과는 안정적이었습니다.
로버트 하프는 또한 포춘의 컨설팅 및 전문 서비스 분야에서 가장 좋은 직장 중 하나로 선정되고, PEOPLE의 배려하는 기업 중 하나로 선정되는 등 여러 가지 상을 수상했습니다.
Robert Half Inc. (NYSE: RHI) a publié les résultats financiers du troisième trimestre pour la période se terminant le 30 septembre 2024. Le revenu net de l’entreprise s’élevait à 65 millions de dollars, soit 0,64 dollar par action, sur des recettes de 1,465 milliard de dollars. Cela représente une baisse par rapport à la même période en 2023, qui avait enregistré un revenu net de 96 millions de dollars, soit 0,90 dollar par action, sur des recettes de 1,564 milliard de dollars.
Malgré le déclin général, Protiviti, une filiale de Robert Half, a montré une performance solide avec des augmentations de revenus successives et annuelles. Le PDG M. Keith Waddell a noté que, bien que les budgets des clients restent limités, les niveaux de confiance dans les affaires sont en amélioration, soutenus par des progrès sur l'inflation et le début d'un cycle mondial de baisse des taux. Les résultats hebdomadaires récents de l'entreprise ont été stables pendant les 12 à 14 dernières semaines.
Robert Half a également reçu plusieurs distinctions, dont celle d'être nommé parmi les Meilleurs Lieux de Travail en Conseil et Services Professionnels™ par Fortune et parmi les Entreprises qui se Soucient® par PEOPLE.
Robert Half Inc. (NYSE: RHI) hat die finanziellen Ergebnisse des dritten Quartals für den Zeitraum zum 30. September 2024 veröffentlicht. Der Nettoerlös des Unternehmens betrug 65 Millionen Dollar, oder 0,64 Dollar pro Aktie, bei Umsätzen von 1,465 Milliarden Dollar. Dies stellt einen Rückgang im Vergleich zum gleichen Zeitraum im Jahr 2023 dar, als ein Nettoerlös von 96 Millionen Dollar, oder 0,90 Dollar pro Aktie, bei Umsätzen von 1,564 Milliarden Dollar verzeichnet wurde.
Trotz des allgemeinen Rückgangs zeigte Protiviti, eine Tochtergesellschaft von Robert Half, eine starke Leistung mit sequenziellen und jährlichen Umsatzgewinnen. CEO M. Keith Waddell stellte fest, dass, obwohl die Budgets der Kunden eingeschränkt bleiben, die Geschäftskonfidenz rückläufig ist, unterstützt durch Fortschritte bei der Inflation und den Beginn eines globalen Zinssenkungszyklus. Die jüngsten wöchentlichen Ergebnisse des Unternehmens waren in den letzten 12 bis 14 Wochen stabil.
Robert Half erhielt auch mehrere Auszeichnungen, darunter die Nominierung als eines von Fortunes besten Arbeitsplätzen in der Unternehmensberatung und professionellen Dienstleistungen™ sowie als eines von PEOPLEs Unternehmen, die sich kümmern®.
- Protiviti subsidiary posted sequential and year-on-year revenue gains
- Business confidence levels are improving
- Recent weekly results have been stable for 12-14 weeks
- Received multiple workplace and employer awards
- Net income decreased from $96 million to $65 million year-over-year
- Revenues declined from $1.564 billion to $1.465 billion compared to Q3 2023
- Earnings per share dropped from $0.90 to $0.64 year-over-year
- Client budgets remain constrained with extended decision cycles
Insights
Robert Half's Q3 2024 results present a mixed picture. While revenues of
The company's performance reflects broader economic challenges, with constrained client budgets and extended decision cycles. However, there are positive signs: stable weekly results for 12-14 weeks and improving business confidence. The mention of a "global rate-cutting cycle" suggests potential economic tailwinds ahead.
For investors, the
Robert Half's Q3 results offer insights into the broader labor market and economic conditions. The company's performance suggests a continued softness in hiring, particularly for permanent placements. However, the strong performance of Protiviti indicates a robust demand for consulting services, possibly driven by companies seeking efficiency and risk management in uncertain times.
The stability in recent weekly results and improving business confidence levels are potential leading indicators of a turning point in the job market. The mention of progress on inflation and the beginning of a rate-cutting cycle aligns with broader economic forecasts and could signal an improving macro environment for staffing and consulting services.
Investors should monitor these trends closely, as Robert Half's performance often serves as a barometer for broader labor market health and business investment in talent. The company's diverse service offerings across finance, technology, marketing, legal and administrative sectors provide a comprehensive view of professional services demand.
For the three months ended September 30, 2024, net income was
For the nine months ended September 30, 2024, net income was
"Revenues and earnings for the third quarter exceeded our expectations, driven by very strong results from Protiviti, which posted sequential and year-on-year revenue gains," said M. Keith Waddell, president and chief executive of Robert Half. "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. This is reflected in our most recent weekly sequential results, which have been stable and consistent for the past 12 to 14 weeks. 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.
"We would like to thank our people across the globe, whose efforts have made possible a number of new accolades. Most recently, Robert Half was named one of Fortune's Best Workplaces in Consulting & Professional Services™, one of PEOPLE's Companies that Care® and one of the World's Best Employers by Forbes. We also received five prestigious Academy of Interactive & Visual Arts w3 Awards for recent enhancements made to our Robert Half mobile app, highlighting our ongoing commitment to innovation," 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 October 22 and ending after 12 months. To access the replay, visit https://webcasts.com/RobertHalfQ32024. 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 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
Non-GAAP Financial Measures |
ROBERT HALF INC SUMMARY OF OPERATIONS (in thousands, except per share amounts)
| |||||||
Three Months Ended | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Unaudited) | (Unaudited) | ||||||
Service revenues | $ 1,465,004 | $ 1,563,812 | $ 4,413,465 | $ 4,919,625 | |||
Costs of services | 893,348 | 922,873 | 2,702,333 | 2,928,785 | |||
Gross margin | 571,656 | 640,939 | 1,711,132 | 1,990,840 | |||
Selling, general and administrative expenses | 510,786 | 496,732 | 1,533,213 | 1,590,865 | |||
(Income) loss from investments held in employee deferred compensation trusts | (29,230) | 14,275 | (88,339) | (41,363) | |||
Amortization of intangible assets | 305 | 720 | 913 | 2,162 | |||
Interest income, net | (5,391) | (7,131) | (16,990) | (17,276) | |||
Income before income taxes | 95,186 | 136,343 | 282,335 | 456,452 | |||
Provision for income taxes | 29,735 | 40,798 | 85,027 | 132,610 | |||
Net income | $ 65,451 | $ 95,545 | $ 197,308 | $ 323,842 | |||
Diluted net income per share | $ 0.64 | $ 0.90 | $ 1.91 | $ 3.04 | |||
Weighted average shares: | |||||||
Basic | 102,175 | 105,340 | 103,034 | 105,950 | |||
Diluted | 102,393 | 105,810 | 103,371 | 106,450 | |||
ROBERT HALF INC SUPPLEMENTAL FINANCIAL INFORMATION (in thousands)
| |||||||
Three Months Ended | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Unaudited) | (Unaudited) | ||||||
SERVICE REVENUES INFORMATION | |||||||
Contract talent solutions | |||||||
Finance and accounting | $ 614,131 | $ 676,588 | |||||
Administrative and customer support | 178,409 | 196,565 | 568,685 | 626,938 | |||
Technology | 160,184 | 170,574 | 476,053 | 546,432 | |||
Elimination of intersegment revenues (1) | (122,321) | (100,630) | (351,601) | (341,228) | |||
Total contract talent solutions | 830,403 | 943,097 | 2,572,358 | 3,007,954 | |||
Permanent placement talent solutions | 123,275 | 139,931 | 379,105 | 445,922 | |||
Protiviti | 511,326 | 480,784 | 1,462,002 | 1,465,749 | |||
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 September 30, | Nine Months Ended September 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
$ | % of | $ | % of | $ | % of | $ | % of | ||||
(Unaudited) | (Unaudited) | ||||||||||
BUSINESS SEGMENT INCOME INFORMATION: | |||||||||||
Contract talent solutions | $ 25,844 | 3.1 % | $ 58,475 | 6.2 % | $ 114,108 | 4.4 % | $ 241,937 | 8.0 % | |||
Permanent placement talent solutions | $ 12,187 | 9.9 % | $ 19,055 | 13.6 % | $ 40,190 | 10.6 % | $ 64,612 | 14.5 % | |||
Protiviti | $ 52,069 | 10.2 % | $ 52,402 | 10.9 % | $ 111,960 | 7.7 % | $ 134,789 | 9.2 % | |||
September 30, | ||||
2024 | 2023 | |||
(Unaudited) | ||||
SELECTED BALANCE SHEET INFORMATION: | ||||
Cash and cash equivalents | $ 570,466 | $ 729,472 | ||
Accounts receivable, net | $ 885,401 | $ 941,121 | ||
Total assets | ||||
Total current liabilities | ||||
Total stockholders' equity | ||||
Nine Months Ended | ||||
2024 | 2023 | |||
(Unaudited) | ||||
SELECTED CASH FLOW INFORMATION: | ||||
Depreciation | $ 38,713 | $ 37,963 | ||
Capitalized cloud computing implementation costs | $ 22,879 | $ 28,479 | ||
Capital expenditures | $ 42,012 | $ 34,149 | ||
Open market repurchases of common stock (shares) | 2,460 | 2,362 | ||
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 September 30, | Relationships | Nine Months Ended September 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 | $ 323,035 | $ 375,158 | $ 323,035 | $ 375,158 | 38.9 % | 39.8 % | 38.9 % | 39.8 % | $ 1,009,766 | $ 1,197,419 | $ 1,009,766 | $ 1,197,419 | 39.3 % | 39.8 % | 39.3 % | 39.8 % | |||||||||||||||
Permanent placement talent | 123,004 | 139,681 | 123,004 | 139,681 | 99.8 % | 99.8 % | 99.8 % | 99.8 % | 378,353 | 445,051 | 378,353 | 445,051 | 99.8 % | 99.8 % | 99.8 % | 99.8 % | |||||||||||||||
Total talent solutions | 446,039 | 514,839 | 446,039 | 514,839 | 46.8 % | 47.5 % | 46.8 % | 47.5 % | 1,388,119 | 1,642,470 | 1,388,119 | 1,642,470 | 47.0 % | 47.6 % | 47.0 % | 47.6 % | |||||||||||||||
Protiviti | 125,617 | 126,100 | 131,707 | 123,255 | 24.6 % | 26.2 % | 25.8 % | 25.6 % | 323,013 | 348,370 | 340,690 | 355,621 | 22.1 % | 23.8 % | 23.3 % | 24.3 % | |||||||||||||||
Total | $ 571,656 | $ 640,939 | $ 577,746 | $ 638,094 | 39.0 % | 41.0 % | 39.4 % | 40.8 % | $ 1,711,132 | $ 1,990,840 | $ 1,728,809 | $ 1,998,091 | 38.8 % | 40.5 % | 39.2 % | 40.6 % | |||||||||||||||
The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the three months ended September 30, 2024 and 2023:
Three Months Ended September 30, 2024 | Three Months Ended September 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 | $ 323,035 | 38.9 % | $ 123,004 | 99.8 % | $ 446,039 | 46.8 % | $ 125,617 | 24.6 % | $ 571,656 | 39.0 % | $ 375,158 | 39.8 % | $ 139,681 | 99.8 % | $ 514,839 | 47.5 % | 26.2 % | $ 640,939 | 41.0 % | ||||||||||
Adjustments (1) | — | — | — | — | — | — | 6,090 | 1.2 % | 6,090 | 0.4 % | — | — | — | — | — | — | (2,845) | (0.6 %) | (2,845) | (0.2 %) | |||||||||
As Adjusted | $ 323,035 | 38.9 % | $ 123,004 | 99.8 % | $ 446,039 | 46.8 % | $ 131,707 | 25.8 % | $ 577,746 | 39.4 % | $ 375,158 | 39.8 % | $ 139,681 | 99.8 % | $ 514,839 | 47.5 % | 25.6 % | $ 638,094 | 40.8 % | ||||||||||
The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the nine months ended September 30, 2024 and 2023:
Nine Months Ended September 30, 2024 | Nine Months Ended September 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 | $ 1,009,766 | 39.3 % | $ 378,353 | 99.8 % | $ 1,388,119 | 47.0 % | 22.1 % | $ 1,711,132 | 38.8 % | $ 1,197,419 | 39.8 % | $ 445,051 | 99.8 % | $ 1,642,470 | 47.6 % | $ 348,370 | 23.8 % | $ 1,990,840 | 40.5 % | ||||||||||
Adjustments (1) | — | — | — | — | — | — | 17,677 | 1.2 % | 17,677 | 0.4 % | — | — | — | — | — | — | 7,251 | 0.5 % | 7,251 | 0.1 % | |||||||||
As Adjusted | $ 1,009,766 | 39.3 % | $ 378,353 | 99.8 % | $ 1,388,119 | 47.0 % | 23.3 % | $ 1,728,809 | 39.2 % | $ 1,197,419 | 39.8 % | $ 445,051 | 99.8 % | $ 1,642,470 | 47.6 % | $ 355,621 | 24.3 % | $ 1,998,091 | 40.6 % | ||||||||||
(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) loss is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment (income) loss 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 September 30, | Relationships | Nine Months Ended September 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 | $ 317,727 | $ 306,503 | $ 297,191 | $ 316,683 | 38.3 % | 32.5 % | 35.8 % | 33.6 % | $ 958,201 | $ 985,967 | $ 895,658 | $ 955,482 | 37.2 % | 32.8 % | 34.8 % | 31.8 % | |||||||||||||||
Permanent placement talent | 113,421 | 119,376 | 110,817 | 120,626 | 92.0 % | 85.3 % | 89.9 % | 86.2 % | 346,282 | 384,066 | 338,163 | 380,439 | 91.3 % | 86.1 % | 89.2 % | 85.3 % | |||||||||||||||
Total talent solutions | 431,148 | 425,879 | 408,008 | 437,309 | 45.2 % | 39.3 % | 42.8 % | 40.4 % | 1,304,483 | 1,370,033 | 1,233,821 | 1,335,921 | 44.2 % | 39.7 % | 41.8 % | 38.7 % | |||||||||||||||
Protiviti | 79,638 | 70,853 | 79,638 | 70,853 | 15.6 % | 14.7 % | 15.6 % | 14.7 % | 228,730 | 220,832 | 228,730 | 220,832 | 15.6 % | 15.1 % | 15.6 % | 15.1 % | |||||||||||||||
Total | $ 510,786 | $ 496,732 | $ 487,646 | $ 508,162 | 34.9 % | 31.8 % | 33.3 % | 32.5 % | $ 1,533,213 | $ 1,590,865 | $ 1,462,551 | $ 1,556,753 | 34.7 % | 32.3 % | 33.1 % | 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 three months ended September 30, 2024 and 2023:
Three Months Ended September 30, 2024 | Three Months Ended September 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 | 38.3 % | 92.0 % | $ 431,148 | 45.2 % | $ 79,638 | 15.6 % | $ 510,786 | 34.9 % | 32.5 % | $ 119,376 | 85.3 % | 39.3 % | $ 70,853 | 14.7 % | $ 496,732 | 31.8 % | |||||||||||||
Adjustments (1) | (20,536) | (2.5 %) | (2,604) | (2.1 %) | (23,140) | (2.4 %) | — | — | (23,140) | (1.6 %) | 10,180 | 1.1 % | 1,250 | 0.9 % | 11,430 | 1.1 % | — | — | 11,430 | 0.7 % | |||||||||
As Adjusted | 35.8 % | 89.9 % | $ 408,008 | 42.8 % | $ 79,638 | 15.6 % | $ 487,646 | 33.3 % | 33.6 % | $ 120,626 | 86.2 % | 40.4 % | $ 70,853 | 14.7 % | $ 508,162 | 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 nine months ended September 30, 2024 and 2023:
Nine Months Ended September 30, 2024 | Nine Months Ended September 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 | $ 958,201 | 37.2 % | 91.3 % | $ 1,304,483 | 44.2 % | $ 228,730 | 15.6 % | $ 1,533,213 | 34.7 % | $ 985,967 | 32.8 % | 86.1 % | $ 1,370,033 | 39.7 % | $ 220,832 | 15.1 % | $ 1,590,865 | 32.3 % | |||||||||||
Adjustments (1) | (62,543) | (2.4 %) | (8,119) | (2.1 %) | (70,662) | (2.4 %) | — | — | (70,662) | (1.6 %) | (30,485) | (1.0 %) | (3,627) | (0.8 %) | (34,112) | (1.0 %) | — | — | (34,112) | (0.7 %) | |||||||||
As Adjusted | $ 895,658 | 34.8 % | 89.2 % | $ 1,233,821 | 41.8 % | $ 228,730 | 15.6 % | $ 1,462,551 | 33.1 % | $ 955,482 | 31.8 % | 85.3 % | $ 1,335,921 | 38.7 % | $ 220,832 | 15.1 % | $ 1,556,753 | 31.6 % | |||||||||||
(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) loss is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment (income) loss 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
| |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
$ | % of | $ | % of | $ | % of | $ | % of | ||||
Income before income taxes | $ 95,186 | 6.5 % | $ 136,343 | 8.7 % | 6.4 % | 9.3 % | |||||
Interest income, net | (5,391) | (0.3 %) | (7,131) | (0.4 %) | (16,990) | (0.4 %) | (17,276) | (0.3 %) | |||
Amortization of intangible assets | 305 | 0.0 % | 720 | 0.0 % | 913 | 0.0 % | 2,162 | 0.0 % | |||
Combined segment income | $ 90,100 | 6.2 % | $ 129,932 | 8.3 % | 6.0 % | 9.0 % | |||||
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 | |||||||||||||||||||||
Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | |||||||||||||
Global | ||||||||||||||||||||||||
Finance and accounting | -11.0 | -16.0 | -17.2 | -17.5 | -13.6 | -9.2 | -10.8 | -15.2 | -17.8 | -17.0 | -13.5 | -10.5 | ||||||||||||
Administrative and customer support | -23.0 | -21.5 | -18.7 | -8.9 | -9.8 | -9.2 | -23.0 | -21.2 | -19.4 | -8.3 | -9.8 | -10.8 | ||||||||||||
Technology | -16.7 | -21.3 | -21.7 | -18.6 | -13.1 | -6.1 | -16.2 | -20.0 | -21.8 | -17.8 | -13.1 | -7.6 | ||||||||||||
Elimination of intersegment revenues (1) | -16.5 | -24.2 | -26.6 | -10.3 | 1.4 | 21.6 | -16.5 | -23.8 | -27.2 | -9.9 | 1.3 | 19.4 | ||||||||||||
Total contract talent solutions | -14.3 | -17.3 | -17.2 | -16.7 | -14.5 | -11.9 | -14.0 | -16.4 | -17.7 | -16.2 | -14.4 | -13.2 | ||||||||||||
Permanent placement talent solutions | -25.4 | -23.3 | -22.0 | -20.4 | -12.2 | -11.9 | -25.0 | -22.5 | -22.6 | -19.8 | -12.0 | -13.2 | ||||||||||||
Total talent solutions | -15.9 | -18.1 | -17.8 | -17.2 | -14.2 | -11.9 | -15.6 | -17.3 | -18.3 | -16.7 | -14.0 | -13.2 | ||||||||||||
Protiviti | -1.2 | -6.0 | -7.1 | -6.1 | -0.9 | 6.4 | -1.0 | -4.9 | -7.5 | -5.4 | -0.9 | 4.5 | ||||||||||||
Total | -12.0 | -14.7 | -14.7 | -14.0 | -10.2 | -6.3 | -11.7 | -13.8 | -15.2 | -13.4 | -10.1 | -7.7 | ||||||||||||
Contract talent solutions | -16.0 | -20.7 | -20.5 | -19.1 | -15.7 | -12.4 | -15.9 | -19.2 | -20.3 | -18.6 | -15.8 | -13.7 | ||||||||||||
Permanent placement talent solutions | -26.2 | -26.9 | -22.6 | -19.3 | -11.5 | -9.0 | -26.1 | -25.5 | -22.5 | -18.7 | -11.7 | -10.4 | ||||||||||||
Total talent solutions | -17.4 | -21.5 | -20.7 | -19.1 | -15.2 | -12.0 | -17.2 | -20.0 | -20.6 | -18.6 | -15.3 | -13.3 | ||||||||||||
Protiviti | -2.4 | -7.4 | -7.3 | -4.8 | 3.3 | 9.3 | -2.3 | -5.6 | -7.2 | -4.2 | 3.1 | 7.6 | ||||||||||||
Total | -13.3 | -17.5 | -16.8 | -14.9 | -9.6 | -5.2 | -13.2 | -15.9 | -16.7 | -14.3 | -9.7 | -6.7 | ||||||||||||
International | ||||||||||||||||||||||||
Contract talent solutions | -7.6 | -3.1 | -4.4 | -8.4 | -10.0 | -10.6 | -6.2 | -4.9 | -7.5 | -7.5 | -9.4 | -11.7 | ||||||||||||
Permanent placement talent solutions | -23.4 | -13.0 | -20.6 | -23.2 | -13.8 | -18.6 | -21.9 | -14.2 | -22.8 | -22.1 | -13.0 | -19.8 | ||||||||||||
Total talent solutions | -10.6 | -4.8 | -7.2 | -10.8 | -10.7 | -11.9 | -9.2 | -6.6 | -10.1 | -9.9 | -10.0 | -13.0 | ||||||||||||
Protiviti | 3.3 | 0.3 | -6.1 | -11.3 | -16.2 | -5.6 | 4.2 | -1.5 | -8.9 | -10.1 | -15.9 | -8.1 | ||||||||||||
Total | -7.0 | -3.5 | -6.9 | -10.9 | -12.2 | -10.2 | -5.8 | -5.3 | -9.8 | -10.0 | -11.6 | -11.7 | ||||||||||||
(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 | ||||||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | |||||||
Finance and accounting | ||||||||||||
As Reported | -11.0 | -16.0 | -17.2 | -17.5 | -13.6 | -9.2 | ||||||
Billing Days Impact | 0.1 | 1.6 | 0.1 | 0.7 | -0.3 | -1.5 | ||||||
Currency Impact | 0.1 | -0.8 | -0.7 | -0.2 | 0.4 | 0.2 | ||||||
As Adjusted | -10.8 | -15.2 | -17.8 | -17.0 | -13.5 | -10.5 | ||||||
Administrative and customer support | ||||||||||||
As Reported | -23.0 | -21.5 | -18.7 | -8.9 | -9.8 | -9.2 | ||||||
Billing Days Impact | 0.1 | 1.4 | 0.2 | 0.8 | -0.3 | -1.5 | ||||||
Currency Impact | -0.1 | -1.1 | -0.9 | -0.2 | 0.3 | -0.1 | ||||||
As Adjusted | -23.0 | -21.2 | -19.4 | -8.3 | -9.8 | -10.8 | ||||||
Technology | ||||||||||||
As Reported | -16.7 | -21.3 | -21.7 | -18.6 | -13.1 | -6.1 | ||||||
Billing Days Impact | 0.1 | 1.5 | 0.1 | 0.7 | -0.3 | -1.5 | ||||||
Currency Impact | 0.4 | -0.2 | -0.2 | 0.1 | 0.3 | 0.0 | ||||||
As Adjusted | -16.2 | -20.0 | -21.8 | -17.8 | -13.1 | -7.6 | ||||||
Elimination of intersegment revenues | ||||||||||||
As Reported | -16.5 | -24.2 | -26.6 | -10.3 | 1.4 | 21.6 | ||||||
Billing Days Impact | 0.1 | 1.4 | 0.1 | 0.7 | -0.3 | -1.9 | ||||||
Currency Impact | -0.1 | -1.0 | -0.7 | -0.3 | 0.2 | -0.3 | ||||||
As Adjusted | -16.5 | -23.8 | -27.2 | -9.9 | 1.3 | 19.4 | ||||||
Total contract talent solutions | ||||||||||||
As Reported | -14.3 | -17.3 | -17.2 | -16.7 | -14.5 | -11.9 | ||||||
Billing Days Impact | 0.1 | 1.6 | 0.2 | 0.6 | -0.3 | -1.4 | ||||||
Currency Impact | 0.2 | -0.7 | -0.7 | -0.1 | 0.4 | 0.1 | ||||||
As Adjusted | -14.0 | -16.4 | -17.7 | -16.2 | -14.4 | -13.2 | ||||||
Permanent placement talent solutions | ||||||||||||
As Reported | -25.4 | -23.3 | -22.0 | -20.4 | -12.2 | -11.9 | ||||||
Billing Days Impact | 0.1 | 1.5 | 0.1 | 0.7 | -0.3 | -1.4 | ||||||
Currency Impact | 0.3 | -0.7 | -0.7 | -0.1 | 0.5 | 0.1 | ||||||
As Adjusted | -25.0 | -22.5 | -22.6 | -19.8 | -12.0 | -13.2 | ||||||
Total talent solutions | ||||||||||||
As Reported | -15.9 | -18.1 | -17.8 | -17.2 | -14.2 | -11.9 | ||||||
Billing Days Impact | 0.1 | 1.5 | 0.2 | 0.6 | -0.2 | -1.4 | ||||||
Currency Impact | 0.2 | -0.7 | -0.7 | -0.1 | 0.4 | 0.1 | ||||||
As Adjusted | -15.6 | -17.3 | -18.3 | -16.7 | -14.0 | -13.2 | ||||||
Protiviti | ||||||||||||
As Reported | -1.2 | -6.0 | -7.1 | -6.1 | -0.9 | 6.4 | ||||||
Billing Days Impact | 0.2 | 1.8 | 0.2 | 0.7 | -0.3 | -1.7 | ||||||
Currency Impact | 0.0 | -0.7 | -0.6 | 0.0 | 0.3 | -0.2 | ||||||
As Adjusted | -1.0 | -4.9 | -7.5 | -5.4 | -0.9 | 4.5 | ||||||
Total | ||||||||||||
As Reported | -12.0 | -14.7 | -14.7 | -14.0 | -10.2 | -6.3 | ||||||
Billing Days Impact | 0.2 | 1.6 | 0.1 | 0.7 | -0.3 | -1.4 | ||||||
Currency Impact | 0.1 | -0.7 | -0.6 | -0.1 | 0.4 | 0.0 | ||||||
As Adjusted | -11.7 | -13.8 | -15.2 | -13.4 | -10.1 | -7.7 | ||||||
ROBERT HALF INC NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
| ||||||||||||
Year-Over-Year Revenue Growth – | ||||||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | |||||||
Contract talent solutions | ||||||||||||
As Reported | -16.0 | -20.7 | -20.5 | -19.1 | -15.7 | -12.4 | ||||||
Billing Days Impact | 0.1 | 1.5 | 0.2 | 0.5 | -0.1 | -1.3 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -15.9 | -19.2 | -20.3 | -18.6 | -15.8 | -13.7 | ||||||
Permanent placement talent solutions | ||||||||||||
As Reported | -26.2 | -26.9 | -22.6 | -19.3 | -11.5 | -9.0 | ||||||
Billing Days Impact | 0.1 | 1.4 | 0.1 | 0.6 | -0.2 | -1.4 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -26.1 | -25.5 | -22.5 | -18.7 | -11.7 | -10.4 | ||||||
Total talent solutions | ||||||||||||
As Reported | -17.4 | -21.5 | -20.7 | -19.1 | -15.2 | -12.0 | ||||||
Billing Days Impact | 0.2 | 1.5 | 0.1 | 0.5 | -0.1 | -1.3 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -17.2 | -20.0 | -20.6 | -18.6 | -15.3 | -13.3 | ||||||
Protiviti | ||||||||||||
As Reported | -2.4 | -7.4 | -7.3 | -4.8 | 3.3 | 9.3 | ||||||
Billing Days Impact | 0.1 | 1.8 | 0.1 | 0.6 | -0.2 | -1.7 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -2.3 | -5.6 | -7.2 | -4.2 | 3.1 | 7.6 | ||||||
Total | ||||||||||||
As Reported | -13.3 | -17.5 | -16.8 | -14.9 | -9.6 | -5.2 | ||||||
Billing Days Impact | 0.1 | 1.6 | 0.1 | 0.6 | -0.1 | -1.5 | ||||||
Currency Impact | ― | ― | ― | ― | ― | ― | ||||||
As Adjusted | -13.2 | -15.9 | -16.7 | -14.3 | -9.7 | -6.7 | ||||||
ROBERT HALF INC NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
| ||||||||||||
Year-Over-Year Revenue Growth – INTERNATIONAL | ||||||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | |||||||
Contract talent solutions | ||||||||||||
As Reported | -7.6 | -3.1 | -4.4 | -8.4 | -10.0 | -10.6 | ||||||
Billing Days Impact | 0.6 | 1.8 | 0.1 | 1.5 | -1.1 | -1.6 | ||||||
Currency Impact | 0.8 | -3.6 | -3.2 | -0.6 | 1.7 | 0.5 | ||||||
As Adjusted | -6.2 | -4.9 | -7.5 | -7.5 | -9.4 | -11.7 | ||||||
Permanent placement talent solutions | ||||||||||||
As Reported | -23.4 | -13.0 | -20.6 | -23.2 | -13.8 | -18.6 | ||||||
Billing Days Impact | 0.5 | 1.6 | 0.1 | 1.3 | -1.0 | -1.6 | ||||||
Currency Impact | 1.0 | -2.8 | -2.3 | -0.2 | 1.8 | 0.4 | ||||||
As Adjusted | -21.9 | -14.2 | -22.8 | -22.1 | -13.0 | -19.8 | ||||||
Total talent solutions | ||||||||||||
As Reported | -10.6 | -4.8 | -7.2 | -10.8 | -10.7 | -11.9 | ||||||
Billing Days Impact | 0.6 | 1.7 | 0.2 | 1.4 | -1.0 | -1.6 | ||||||
Currency Impact | 0.8 | -3.5 | -3.1 | -0.5 | 1.7 | 0.5 | ||||||
As Adjusted | -9.2 | -6.6 | -10.1 | -9.9 | -10.0 | -13.0 | ||||||
Protiviti | ||||||||||||
As Reported | 3.3 | 0.3 | -6.1 | -11.3 | -16.2 | -5.6 | ||||||
Billing Days Impact | 0.7 | 1.8 | 0.2 | 1.4 | -1.0 | -1.7 | ||||||
Currency Impact | 0.2 | -3.6 | -3.0 | -0.2 | 1.3 | -0.8 | ||||||
As Adjusted | 4.2 | -1.5 | -8.9 | -10.1 | -15.9 | -8.1 | ||||||
Total | ||||||||||||
As Reported | -7.0 | -3.5 | -6.9 | -10.9 | -12.2 | -10.2 | ||||||
Billing Days Impact | 0.5 | 1.7 | 0.1 | 1.3 | -1.0 | -1.6 | ||||||
Currency Impact | 0.7 | -3.5 | -3.0 | -0.4 | 1.6 | 0.1 | ||||||
As Adjusted | -5.8 | -5.3 | -9.8 | -10.0 | -11.6 | -11.7 | ||||||
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SOURCE Robert Half
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