Professional staffing provider Robert Half International Inc. (NYSE: RHI) reported fourth-quarter revenue fell 15.9% year over year on an adjusted basis. This compares to a year-over-year decline of 23.9% in the third quarter. However, the Menlo Park, California-based company reported revenue rose in its Protiviti business.
Adjustments in revenue include removing fluctuations caused by currency translations, number of billing days and intercompany adjustments.
“Fourth-quarter results for both our Protiviti and staffing operations were very strong and exceeded the top end of our guidance range,” President and CEO M. Keith Waddell said.
| (US$ thousands) | Q4 2020 | Q4 2019 | % change | % change adjusted |
| Service revenue | $1,304,086 | $1,537,385 | -15.2% | -15.9% |
| Gross margin | $514,342 | $636,861 | -19.2% | |
| Gross margin percentage | 39.4% | 41.4% | ||
| Net income | $94,416 | $112,842 | -16.3% |
Temporary and consultant staffing revenue was down 23.8% on an adjusted basis in the fourth quarter compared to a 30.7% decline in the third quarter. Permanent revenue was down by 28.5% in the fourth quarter after falling by 35.7% in the third.
Revenue by segment
| (US$ thousands) | Q4 2020 | Q4 2019 | % change | % change adjusted |
| Accountemps | $385,000 | $498,650 | -22.8% | -23.1% |
| OfficeTeam | $214,985 | $259,147 | -17.0% | -18.2% |
| Robert Half Technology | $175,730 | $198,314 | -11.4% | -11.9% |
| Robert Half Management Resources | $167,116 | $201,097 | -16.9% | -18.1% |
| Elimination of intersegment revenue | ($92,393) | ($50,883) | – | – |
| Protiviti | $362,261 | $304,666 | 18.9% | 17.9% |
US temporary and consulting staffing revenue was down by 23.9% on an adjusted basis in Q4. International temporary and consultant staffing was down 23.5%.
Full-year revenue
| (US$ thousands) | FY 2020 | FY 2019 | % change |
| Service revenue | $5,109,000 | $6,074,432 | -15.9% |
| Gross margin | $2,012,611 | $2,525,129 | -20.3% |
| Gross margin percentage | 39.4% | 41.6% | |
| Net income | $306,276 | $454,433 | -32.6% |
Share price and market cap
Shares in Robert Half were up 2.73% to $66.57 as of 12:15 p.m. Eastern time; they had set a new 52-week high today when they reached $73.35, according to FT.com. The company had a market cap of $7.39 billion.