MENLO PARK, Calif., July 24, 2024 /CNW/ — Robert Half Inc. (NYSE: RHI) today reported revenues and earnings for the second quarter ended June 30, 2024.
For the three months ended June 30, 2024, net income was $68 million, or $0.66 per share, on revenues of $1.473 billion. For the three months ended June 30, 2023, net income was $106 million, or $1.00 per share, on revenues of $1.639 billion.
For the six months ended June 30, 2024, net income was $132 million, or $1.27 per share, on revenues of $2.948 billion. For the six months ended June 30, 2023, net income was $228 million, or $2.14 per share, on revenues of $3.356 billion.
“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 U.S. growth in revenues and segment income both on a sequential and year-on-year basis,” said M. Keith Waddell, president and chief executive officer at Robert Half. “We remain confident in our ability to navigate the current climate and optimistic about our growth prospects.
“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 the United States and Canada). The confirmation code to access the call is 9156621.
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 United States of America (“U.S.”) or international tax regulations; the global financial and economic situation; changes in levels of unemployment and other economic conditions in the U.S. or foreign countries where the Company does business, or in particular regions or industries; reduction in the supply of candidates for contract employment or the Company’s ability to attract candidates; the development, proliferation and adoption of artificial intelligence (“AI”) by the Company and the third parties it serves; the entry of new competitors into the marketplace or expansion by existing competitors; the ability of the Company to maintain existing client relationships and attract new clients in the context of changing economic or competitive conditions; the impact of competitive pressures, including any change in the demand for the Company’s services, on the Company’s ability to maintain its margins; the possibility of the Company incurring liability for its activities, including the activities of its engagement professionals, or for events impacting its engagement professionals on clients’ premises; the possibility that adverse publicity could impact the Company’s ability to attract and retain clients and candidates; the success of the Company in attracting, training, and retaining qualified management personnel and other staff employees; the Company’s ability to comply with governmental regulations affecting personnel services businesses in particular or employer/employee relationships in general; whether there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; the Company’s reliance on short-term contracts for a significant percentage of its business; litigation relating to prior or current transactions or activities, including litigation that may be disclosed from time to time in the Company’s SEC filings; the impact of extreme weather conditions on the Company and its candidates and clients, the ability of the Company to manage its international operations and comply with foreign laws and regulations; the impact of fluctuations in foreign currency exchange rates; the possibility that the additional costs the Company will incur as a result of health care or other reform legislation may adversely affect the Company’s profit margins or the demand for the Company’s services; the possibility that the Company’s computer and communications hardware and software systems could be damaged or their service interrupted or the Company could experience a cybersecurity breach; and the possibility that the Company may fail to maintain adequate financial and management controls, and as a result suffer errors in its financial reporting.
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 U.S. Securities and Exchange Commission.
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
June 30,
Six Months Ended
June 30,
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
(which is completely offset by related costs and expenses)
(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
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
SERVICE REVENUES INFORMATION
Contract talent solutions
Finance and accounting
$ 623,120
$ 721,391
$ 1,265,090
$ 1,499,224
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
$ 1,472,524
$ 1,639,478
$ 2,948,461
$ 3,355,813
(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
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
(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
$ 2,937,749
$ 3,067,641
Total current liabilities
$ 1,263,264
$ 1,276,571
Total stockholders’ equity
$ 1,480,155
$ 1,625,271
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 United States of America (“GAAP”) and the rules of the SEC. To help readers understand the Company’s financial performance, the Company supplements its GAAP financial results with the following non-GAAP measures: adjusted gross margin; adjusted selling, general and administrative expenses; combined segment income; and as adjusted revenue growth rates.
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
solutions
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
placement talent
solutions
Total talent
solutions
Protiviti
Total
Contract talent
solutions
Permanent
placement talent
solutions
Total talent
solutions
Protiviti
Total
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
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
placement talent
solutions
Total talent
solutions
Protiviti
Total
Contract talent
solutions
Permanent
placement talent
solutions
Total talent
solutions
Protiviti
Total
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
Gross Margin
As Reported
$ 686,731
39.4 %
$ 255,349
99.8 %
$ 942,080
47.2 %
$ 197,396
20.8 %
$ 1,139,476
38.6 %
$ 822,261
39.8 %
$ 305,370
99.8 %
$ 1,127,631
47.6 %
$ 222,270
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 %
$ 208,983
22.0 %
$ 1,151,063
39.0 %
$ 822,261
39.8 %
$ 305,370
99.8 %
$ 1,127,631
47.6 %
$ 232,366
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
solutions
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
placement talent
solutions
Total talent
solutions
Protiviti
Total
Contract talent
solutions
Permanent
placement talent
solutions
Total talent
solutions
Protiviti
Total
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
Selling, General and
Administrative Expenses
As Reported
$ 308,886
36.1 %
$ 116,285
88.7 %
$ 425,171
43.1 %
$ 75,661
15.6 %
$ 500,832
34.0 %
$ 337,742
33.8 %
$ 129,846
87.0 %
$ 467,588
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
$ 298,015
34.9 %
$ 114,653
87.5 %
$ 412,668
41.9 %
$ 75,661
15.6 %
$ 488,329
33.2 %
$ 317,320
31.8 %
$ 127,245
85.3 %
$ 444,565
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
solutions
Permanent
placement talent
solutions
Total talent
solutions
Protiviti
Total
Contract talent
solutions
Permanent
placement talent
solutions
Total talent
solutions
Protiviti
Total
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
Selling, General and
Administrative Expenses
As Reported
$ 640,474
36.8 %
$ 232,861
91.0 %
$ 873,335
43.7 %
$ 149,092
15.7 %
$ 1,022,427
34.7 %
$ 679,464
32.9 %
$ 264,690
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 %
$ 227,346
88.9 %
$ 825,813
41.3 %
$ 149,092
15.7 %
$ 974,905
33.1 %
$ 638,799
30.9 %
$ 259,813
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
taxes for the three and six months ended June 30, 2024 and 2023:
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
$
% of
Revenue
Income before income taxes
$ 96,462
6.6 %
$ 151,211
9.2 %
$ 187,149
6.3 %
$ 320,109
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 %
$ 176,158
6.0 %
$ 311,406
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
United States
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 – UNITED STATES
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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