ROBERT HALF REPORTS SECOND-QUARTER FINANCIAL RESULTS
For the three months ended
For the six months ended
"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
A recording of this call will be available for audio replay beginning at approximately
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
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 | ||||||||||
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 % |
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 | ||||
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 | 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
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
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
Six Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
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 | 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
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
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
Six Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
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 | ||||||||||
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