ROBERT HALF REPORTS SECOND-QUARTER FINANCIAL RESULTS
MENLO PARK, Calif., July 24, 2024 /PRNewswire/ -- 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(TM) 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
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ROBERT HALF INC.
SUMMARY OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30,
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 (15,733) (28,347) (59,109) (55,638)
(which is completely offset by related costs and expenses)
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
June 30,
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
$ % of
$ % of
$ % of
Revenue Revenue Revenue 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 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 %
solutions
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 Permanent Total talent Protiviti Total Contract talent Permanent Total talent Protiviti Total
placement talent solutions placement talent solutions
solutions solutions solutions solutions
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue 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 Permanent Total talent Protiviti Total Contract talent Permanent Total talent Protiviti Total
placement talent solutions placement talent solutions
solutions solutions solutions solutions
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue 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 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 %
solutions
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 Permanent Total talent Protiviti Total Contract talent Permanent Total talent Protiviti Total
placement talent solutions placement talent solutions
solutions solutions solutions solutions
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue 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 Permanent Total talent Protiviti Total Contract talent Permanent Total talent Protiviti Total
solutions placement talent solutions solutions placement talent solutions
solutions solutions
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
$ % of
Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue 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
$ % of
$ % of
$ % of
Revenue Revenue Revenue 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 Non-GAAP Year-Over-Year Growth
Rates
(As Reported)
(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
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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
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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
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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
