Kelly sees 3.9% Q2 revenue dip amid business shift
MICHIGAN, UNITED STATES — Talent solutions provider Kelly reported a 3.9% revenue drop in Q2 2023, totaling US$1.2 billion.
In a statement, the firm said that this decline was influenced by the sale of its Russian operations last year and a cautious hiring atmosphere. Despite this, the firm spotted opportunities in stronger markets.
CEO Peter Quigley noted, “In the second quarter, we remained focused on seeking out pockets of demand in more resilient markets, while the effects of ongoing macroeconomic uncertainty became more noticeable in certain parts of our portfolio.”
He added that the firm’s Education segment and higher-margin outcome-based solutions in P&I continued to grow year-over-year, offsetting the decrease in other services.
This quarter’s operating earnings stood at US$6.2 million, a decline from Q2 2022’s US$8.2 million. When accounting for US$8 million of transformation expenses, the earnings reach US$14.2 million. Interestingly, earnings per share increased to $0.20 in Q2 2023 from $0.06 in the previous year.
Quigley highlighted the company’s transformation, adding that they are now “quickly shifting our focus to the growth phase of our transformation to realize the full potential of our specialty strategy.”
Given Kelly’s ongoing changes, the firm expects a 3% adjusted EBITDA margin by year-end, with a dividend of $0.075 per share to be distributed to shareholders in September.
