Robert Half Q3 revenue falls amid client budget constraints
CALIFORNIA, UNITED STATES — Human resource consulting firm Robert Half announced a year-over-year decline in revenue and net income for the third quarter of 2024, reflecting ongoing challenges in the professional staffing market.
The company reported revenues of $1.465 billion for the quarter ending September 30, 2024, representing a 7.7% decrease from $1.564 billion in the same period last year. Net income also dropped significantly, falling to $65 million, or $0.64 per share, compared to $96 million, or $0.90 per share, in Q3 2023.
Despite these declines, Protiviti, Robert Half’s consulting subsidiary, posted a 4.5% increase in revenue year-over-year, standing out as the only division to show growth during this challenging period.
Nine-month performance reflects broader market challenges
For the first nine months of 2024, Robert Half reported total revenues of $4.413 billion, down from $4.920 billion during the same period in 2023. Net income for this period was $197 million ($1.91 per share), a sharp decline from $324 million ($3.04 per share) last year.
The company attributed these declines to constrained client budgets and extended decision cycles across its divisions.
However, Robert Half noted that business confidence is gradually improving as inflation pressures ease and global interest rates begin to fall.
U.S. and international markets see declines
Robert Half’s revenue in the United States also declined by 6.7% on an adjusted basis in Q3 2024, while international revenue saw a sharper drop of 11.7%. Permanent placement services were particularly weak globally, with a steep 19.8% decline in international markets.
In a conference call with analysts, CFO Michael Buckley noted, “Contract talent solutions exited the third quarter with September revenues down 14% versus the prior year, compared to a 13% decrease for the full quarter.
“Revenues for the first two weeks of October were down 12% compared to the same period last year,” he added.
CEO optimistic about future growth
“Revenues and earnings for the third quarter exceeded our expectations,” said M. Keith Waddell, president and CEO of Robert Half. “While client budgets remain constrained and decision cycles extended, business confidence levels are improving.”
Waddell expressed optimism about the company’s ability to navigate current economic conditions and forecasted future growth as macroeconomic factors improve.
Waddell also highlighted recent accolades for Robert Half, including being named one of Fortune’s Best Workplaces and Forbes’ World’s Best Employers.
Robert Half forecasts further decline in Q4
Looking ahead, Robert Half has forecasted fourth-quarter revenue between $1.34 billion and $1.44 billion — representing a year-over-year decrease of approximately 7% at the midpoint on an adjusted basis.
Waddell remains positive that business conditions will improve following the upcoming U.S. presidential election.
“We continue to be confident — both in our ability to weather the current climate and in our future growth prospects as the macro landscape improves,” he stated.
Shares of Robert Half closed at $65.70 on October 22, up slightly by 0.21% following the release of its third-quarter results. The company’s stock is currently 15.16% above its 52-week low.
