Robert Half (RHI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were $1.473 billion, down 10% year-over-year, with net income at $68 million ($0.66 per share), compared to $106 million ($1.00 per share) last year.

• Results were within management's expectations despite subdued hiring and project starts due to macroeconomic and interest rate uncertainty.

• Protiviti delivered strong sequential and year-over-year growth in U.S. revenues and segment income, while Talent Solutions remained soft.

• U.S. operations accounted for 78% of Q2 revenue; international operations contributed 22%.

• The company continues to invest in technology and AI tools to enhance talent solutions and consulting services.

Financial highlights

• Q2 2024 revenue was $1.473 billion, down 10% year-over-year; net income was $68 million, with EPS at $0.66.

• Gross margin for Q2 was $577 million (39.2% of revenue), down from $660 million (40.3%) in Q2 2023.

• U.S. Talent Solutions revenues dropped 15% to $701 million; non-U.S. Talent Solutions fell 10% to $235 million.

• Protiviti Q2 revenue was $487 million, down 1% year-over-year; U.S. Protiviti revenue grew 3%, while international declined 16%.

• Cash and cash equivalents at June 30, 2024 were $547 million.

Outlook and guidance

• Q3 2024 revenue guidance: $1.39–$1.49 billion; EPS: $0.53–$0.67, including a $0.08 per share restructuring charge for Protiviti International.

• Management expects continued subdued short-term demand due to macroeconomic uncertainty, but sees pent-up future demand as job openings remain elevated.

• 2024 capital expenditures and cloud computing costs projected at $80–$100 million.

• Quarterly dividend of $0.53 per share declared, payable September 13, 2024.

• SG&A guidance: 41–43% of revenues for Talent Solutions, 16–18% for Protiviti.