Professional staffing provider Resources Connection Inc. (NASDAQ: RGP), which operates as RGP, reported revenue rose 31.5% on a same-day, constant currency basis in its fiscal third quarter ended Feb. 26. Gross margin improved and net income posted a large increase.
“We delivered record third quarter revenue demonstrating our ability to execute on opportunities that strongly favor RGP’s agile, skills-based delivery model,” CEO Kate Duchene said.
| (US$ thousands) | Q3 2022 | Q3 2021 | % change | % constant currency, billing day adjusted |
| Revenue | $204,609 | $156,631 | 30.6% | 31.5% |
| Gross profit | $76,794 | $57,047 | 34.6% | |
| Gross margin | 37.5% | 36.4% | ||
| Net income | $19,421 | $690 | nm |
Irvine, California-headquartered RGP said it benefited from macro trends such as a focus on workforce agility, a tightening labor market, demand for digital transformation services and increased client spend on significant and transformational initiatives.
It also cited improved sales and operational execution.
RGP reported its third-quarter results include a $2.2 million income tax benefit compared to an income tax expense of $1.1 million in the year-ago quarter. RGP also realized a $2.6 million benefit from the dissolution of its French entity.
The tax benefit and a strong performance in the third quarter boosted net income, RGP reported.
Revenue by geography
| (US$ thousands) | Q3 2022 | Q3 2021 | % change | % constant currency, billing day adjusted |
| North America | $173,569 | $127,913 | 35.7% | 35.7% |
| Europe | $17,856 | $17,751 | 0.6% | 5.6% |
| Asia Pacific | $13,184 | $10,967 | 20.2% | 24.4% |
Share price and market cap
Shares were up 5.80% to $17.88 as of 12:09 p.m. Eastern time; they were 11.31% below their 52-week high, according to FT.com. The company had a market cap of $549.7 million.