Robert Half Inc.’s (RHI) wholly-owned subsidiary, Protiviti, has witnessed a consistent rise in revenues in the past quarters, boosting the company’s top line. RHI is popular among dividend-seeking investors. A strong liquidity position makes it appealing. Meanwhile, the company operates in a highly competitive environment, and declining EBITDA suggests weak operational performance.The stock has gained 5.6% in the past six months against the 8.2% decline of the industry it belongs to. It has also outperform ...

MENLO PARK, Calif., Jan. 14, 2025 /PRNewswire/ -- Protiviti, a global consulting firm, announces its adoption of Ardoq's cloud-native Enterprise Architecture platform for internal use. This relationship will enhance the firm's operations by increasing efficiency, transparency, and agility. The move builds upon Protiviti's proven expertise as a provider of Enterprise Architecture services that leverages Ardoq's technology to drive successful business and digital transformations worldwide.Kim Bozzella, global ...

Labor Market and Talent Demand - The labor market is facing significant skills shortages, leading to intense competition for top talent [1] - Robert Half (NYSE: RHI), as a specialized talent solutions provider, is experiencing high demand for its talent base [1] - Companies are increasingly selective in their hiring processes, focusing on acquiring the best talent [1] Investment Focus and Strategy - The investment strategy emphasizes undercovered European and US companies, with a focus on value and income [1] - A diversified portfolio approach is favored, with a particular interest in European companies that are often overlooked [1] - The investment thesis prioritizes shareholder-friendly management teams and often takes a contrarian stance against prevailing market opinions [1] Analyst Background and Expertise - The analyst has over 20 years of consulting experience across various sectors including Hi-Tech, Biotech, Healthcare, Mission Critical, Retail, Residential, and Commercial Sectors [1] - With more than 15 years of investing experience, the analyst is associated with BioCGT Investor and contributes as an author on Seeking Alpha [1] Disclosure and Compensation - The analyst has no stock, option, or derivative positions in the mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article reflects the analyst's own opinions and is not compensated by any company mentioned, except for Seeking Alpha [2] - There is no business relationship with any company whose stock is mentioned in the article [2]

Hiring Trends - 63% of companies plan to expand permanent roles in the first half of 2025, up from 52% six months ago [1] - 63% of companies will increase the number of contract professionals [1] - 34% of companies plan to fill vacated positions [1] - 57% of companies added new positions in the first half of 2024, compared to 63% planning to do so in the first half of 2025 [3] - 39% of companies filled vacated positions in the first half of 2024, compared to 34% planning to do so in the first half of 2025 [3] - Only 3% of companies plan to implement a hiring freeze in the first half of 2025, down from 4% in the second half of 2024 [3] Factors Driving Hiring - 56% of managers cite company growth as the primary factor influencing hiring decisions for the first half of 2025 [4] - 48% of managers cite the emergence of new projects as a key factor driving hiring [4] - 47% of managers identify employee turnover rates as a significant factor impacting hiring plans [4] Impact of Delayed Hiring - 42% of hiring managers report stretched bandwidth and employee burnout as the greatest impact of not filling roles in a timely manner [5] - 39% of hiring managers cite delayed project timelines as a consequence of delayed hiring [5] - 37% of hiring managers note decreased employee productivity due to unfilled roles [5] Strategies for Attracting and Retaining Talent - 35% of managers plan to develop or enhance mentorship programs to secure top talent [6] - 33% of managers intend to hire contract professionals for potential full-time roles [6] - 32% of managers plan to offer paid internships [6] - 22% of managers consider rehiring retired employees as consultants [6] Research Methodology - The survey was conducted in November 2024 and includes responses from over 1,680 managers with hiring responsibilities across various industries [7] - Respondents represent companies with 10 or more employees in the US [7]

Company Recognition - Robert Half, including its subsidiary Protiviti®, has been named one of America's Most Responsible Companies 2025 by Newsweek [1] - The recognition is based on a holistic view of corporate social responsibility, considering all three pillars of ESG: environment, social, and governance [2] - The evaluation included reporting transparency and an independent survey of 26,000 individuals rating corporate social responsibility efforts [2] Corporate Values and Initiatives - Robert Half's commitment to being a good corporate citizen is rooted in integrity, one of its four enterprise values [3] - The company is dedicated to being a socially responsible, people-first organization, focusing on employees, customers, and communities [3] - Robert Half is advancing an inclusive and socially responsible future through initiatives in workplace culture, sustainability, community support, inclusion, and technology and innovation [3] - The company has also been recognized by Forbes as one of the World's Best Employers, by Fortune as one of the Best Workplaces for Women, and by PEOPLE as one of the Companies That Care [3] Company Overview - Robert Half is the world's first and largest specialized talent solutions and business consulting firm, connecting skilled job seekers with opportunities in finance, accounting, technology, marketing, creative, legal, and administrative fields [4] - The company offers contract talent, permanent placement solutions, and executive search services [4] - Protiviti®, a subsidiary of Robert Half, provides internal audit, risk, business, and technology consulting solutions [4] - In the past 12 months, Robert Half and Protiviti have been named one of Fortune's Most Admired Companies and 100 Best Companies to Work For [4]

Price Performance - Robert Half Inc (RHI) shares gained 22.4% in the past three months, outperforming the industry growth of 2.2% and the Zacks S&P 500 composite growth of 9.5% [1] - RHI reported Q3 2024 earnings of 64 cents per share, beating the consensus mark by 1.6% but declining 28.9% year over year [3] - Q3 2024 revenues of $1.47 billion surpassed the consensus mark by 1.7% but decreased 6.3% year over year [3] Technology Investments - The company has been investing more capital in software initiatives and technology infrastructure, including upgrades to enterprise resource planning applications and implementing a global, cloud-based customer relationship management application [4] - RHI's long-term growth is anticipated to be driven by investments in technology to enhance network scope and scale at a global level [5] Subsidiary Performance - RHI's wholly owned subsidiary, Protiviti, has attained Microsoft Azure's Artificial Intelligence (AI) and Machine Learning (ML) specialization, showing expertise in AI and ML within the Azure domain [6] - Protiviti enables AI adoption and the implementation of Azure-based solutions, positioning itself strongly in the market with a focus on technology consulting, cloud computing, and digital transformation [7] Shareholder Value - The company returned dividends of $205.91 million, $189.29 million, and $170.61 million in 2023, 2022, and 2021, respectively [8] - RHI repurchased shares worth $254.63 million, $319.9 million, and $287.74 million in 2023, 2022, and 2021, respectively [8] Competitive Landscape - The company operates in a highly competitive market, facing fierce competition in terms of price and reliability of service on a national, regional, and local basis [9] - Local companies are its strongest competitors in several areas [9]

Hiring Challenges for SMBs - Meeting candidates' salary expectations is the top hiring challenge for nearly half of SMB hiring managers [2] - Over 40% of managers struggle to find candidates with the required skills [2] - Nearly 40% of SMB hiring managers are concerned about losing top candidates to competitors due to slow hiring processes [2] - Over 40% of managers anticipate difficulty finding candidates who align with their company culture [2] Strategies for SMBs to Navigate Hiring Market - Promote company strengths beyond salary, such as corporate culture, flexible work options, and career advancement opportunities [3] - Hire quickly by leveraging fewer stakeholders and less red tape compared to larger companies [3] - Be flexible with requirements and consider training or upskilling high-potential candidates [3] - Partner with specialized recruiters to market the company and identify the right candidates [3] Survey Details - The survey was conducted in June 2024 and included responses from over 1,700 hiring managers in various industries [5] - Respondents were from companies with 20 or more employees in the United States [5] About Robert Half - Robert Half is the world's first and largest specialized talent solutions and business consulting firm [6] - The company offers contract talent and permanent placement solutions across multiple fields, including finance, technology, and legal [6] - Robert Half is the parent company of Protiviti, a global consulting firm [6] - In the past 12 months, Robert Half has been recognized as one of Fortune's Most Admired Companies and Forbes' Best Employer for Diversity [6]

Company Recognition - Robert Half has been named one of Fortune's Best Workplaces for Women and one of Forbes' World's Top Companies for Women 2024, highlighting its commitment to creating an inclusive workplace for women [1] - The company has also been recognized as one of the Fortune® Most Admired Companies™ and 100 Best Companies to Work For in the past 12 months [5] Methodology and Criteria - Fortune's Best Workplaces for Women is based on a survey of approximately 600,000 women, evaluating workplace culture, benefits, and advancement opportunities with a focus on women's development [2] - Forbes' World's Top Companies for Women uses insights from over 100,000 women across 37 countries, assessing women's perceptions of their employers, public sentiment on gender equity, and female representation in leadership roles [2] Commitment to Women's Success - Robert Half is dedicated to fostering an inclusive workplace where women can thrive, offering comprehensive benefits and creating a culture of belonging [3] - The company plans to introduce new family planning benefits and services for mothers in 2025, including expanded adoption assistance, greater access to family planning coverage, and resources for new mothers returning to work [3] - Robert Half's Global Women's Employee Network (GWEN) provides opportunities for connection and professional development for women worldwide [3] Programs and Benefits - The company offers leadership development programs, mentorship opportunities, and enhanced benefits to support new mothers returning to work [4] - These initiatives are part of Robert Half's broader commitment to empowering women to build rewarding, long-term careers [4] About Robert Half - Robert Half is the world's first and largest specialized talent solutions and business consulting firm, connecting skilled job seekers with opportunities in finance, accounting, technology, marketing, creative, legal, and administrative fields [5] - The company also provides executive search services and is the parent company of Protiviti, a global consulting firm offering internal audit, risk, business, and technology consulting solutions [5]

Revenue Performance - Revenue for the first three quarters of 2024 was $4.41 billion, a decrease of 10.3% compared to the prior year[60] - The company's total revenues for Q3 2024 were $1.47 billion, a 6.3% decrease compared to $1.56 billion in Q3 2023[71] - Total revenues for the nine months ended September 30, 2024, were $4.41 billion, a 10.3% decrease compared to $4.92 billion in the same period in 2023[90] Net Income and Earnings - Net income for the first three quarters of 2024 was $197 million, with diluted net income per share of $1.91[60] - Total income before income taxes for Q3 2024 was $95 million, or 6.5% of revenues, down from $136 million, or 8.7% of revenues, in Q3 2023[84] - Combined segment income for Q3 2024 was $90 million, or 6.2% of revenues, down from $130 million, or 8.3% of revenues, in Q3 2023[84] - Total income before income taxes was $282 million, or 6.4% of revenues, for the nine months ended September 30, 2024[101] - Combined segment income was $266 million, or 6.0% of revenues, for the nine months ended September 30, 2024[102] Contract Talent Solutions - Contract talent solutions revenues decreased by 11.9% to $831 million in Q3 2024, driven by a 12.8% decrease in hours worked[71] - Contract talent solutions revenues decreased by 14.5% to $2.57 billion for the nine months ended September 30, 2024, compared to $3.01 billion in the same period in 2023[90] - Contract talent solutions gross margin dollars decreased by 13.9% to $323 million in Q3 2024 from $375 million in Q3 2023, with gross margin percentage dropping to 38.9% from 39.8%[73][75] - Contract talent solutions gross margin dollars decreased by 15.7% to $1.01 billion in 2024 from $1.20 billion in 2023, with gross margin percentage dropping to 39.3% from 39.8%[92] - Contract talent solutions selling, general and administrative expenses increased by 3.7% to $318 million in Q3 2024 from $307 million in Q3 2023, representing 38.3% of revenues compared to 32.5% in Q3 2023[78][79] - Contract talent solutions selling, general and administrative expenses decreased by 2.8% to $958 million in 2024 from $986 million in 2023, with the expense ratio rising to 37.2% from 32.8%[96] Permanent Placement Talent Solutions - Permanent placement talent solutions revenues decreased by 11.9% to $123 million in Q3 2024, due to a 13.6% decrease in placements[72] - Permanent placement talent solutions revenues decreased by 15.0% to $379 million for the nine months ended September 30, 2024, compared to $446 million in the same period in 2023[90] - Permanent placement talent solutions gross margin dollars declined by 11.9% to $123 million in Q3 2024 from $140 million in Q3 2023[74][75] - Permanent placement talent solutions gross margin dollars fell by 15.0% to $378 million in 2024 from $445 million in 2023, maintaining a gross margin percentage of 99.8%[92] - Permanent placement talent solutions selling, general and administrative expenses decreased by 5.0% to $113 million in Q3 2024 from $119 million in Q3 2023, but increased as a percentage of revenues to 92.0% from 85.3%[78][79] - Permanent placement talent solutions selling, general and administrative expenses decreased by 9.8% to $346 million in 2024 from $384 million in 2023, with the expense ratio increasing to 91.3% from 86.1%[97] Protiviti Performance - Protiviti revenues increased by 6.4% to $511 million in Q3 2024, driven by a 4.4% increase in average hourly bill rates and a 2.0% increase in billable hours[72] - Protiviti revenues decreased by 0.3% to $1.46 billion for the nine months ended September 30, 2024, compared to $1.47 billion in the same period in 2023[90] - Protiviti's gross margin dollars remained flat at $126 million in Q3 2024 compared to Q3 2023, but gross margin percentage decreased to 24.6% from 26.2%[74][75] - Protiviti's gross margin dollars decreased by 7.3% to $323 million in 2024 from $348 million in 2023, with reported gross margin percentage dropping to 22.1% from 23.8%[92] - Protiviti's selling, general and administrative expenses increased by 12.4% to $80 million in Q3 2024 from $71 million in Q3 2023, representing 15.6% of revenues compared to 14.7% in Q3 2023[78][79] - Protiviti's selling, general and administrative expenses increased by 3.6% to $229 million in 2024 from $221 million in 2023, with the expense ratio rising to 15.6% from 15.1%[97] Gross Margin Analysis - Total gross margin dollars decreased by 10.8% to $572 million in Q3 2024 from $641 million in Q3 2023, with gross margin percentage dropping to 39.0% from 41.0%[73][75] - Gross margin for the three months ended September 30, 2024 was $571.7 million, or 39.0% of revenue, compared to $640.9 million, or 41.0% of revenue, for the same period in 2023[76] - Adjusted gross margin for the three months ended September 30, 2024 was $577.7 million, or 39.4% of revenue, compared to $638.1 million, or 40.8% of revenue, for the same period in 2023[76] - Total gross margin dollars decreased by 14.0% to $1.71 billion for the nine months ended September 30, 2024, compared to $1.99 billion in 2023[92] - Gross margin for the nine months ended September 30, 2024, was $1,711,132, representing 38.8% of revenue, compared to $1,990,840, or 40.5% of revenue, for the same period in 2023[95] - Adjusted gross margin for the nine months ended September 30, 2024, was $1,728,809, or 39.2% of revenue, compared to $1,998,091, or 40.6% of revenue, for the same period in 2023[95] Selling, General, and Administrative Expenses - Selling, general and administrative expenses increased by 2.8% to $511 million in Q3 2024 from $497 million in Q3 2023, representing 34.9% of revenues compared to 31.8% in Q3 2023[78][79] - Adjusted selling, general and administrative expenses decreased by 4.0% to $488 million in Q3 2024 from $508 million in Q3 2023, representing 33.3% of revenues compared to 32.5% in Q3 2023[78][79] - Selling, general and administrative expenses for the nine months ended September 30, 2024, were $1.53 billion, down 3.6% from $1.59 billion in 2023, with the expense ratio increasing to 34.7% from 32.3%[96] - Adjusted selling, general, and administrative expenses for the nine months ended September 30, 2024, were $1.46 billion, down 6.1% from $1.56 billion in the same period in 2023[96] U.S. and International Operations - U.S. operations accounted for 78.2% of total revenue in Q3 2024, while international operations contributed 21.8%[71] - U.S. operations contributed $1.15 billion (78.2% of total revenue) in Q3 2024, a 5.2% decrease from $1.21 billion (77.3% of total revenue) in Q3 2023[71] - International operations generated $319 million (21.8% of total revenue) in Q3 2024, a 10.2% decrease from $355 million (22.7% of total revenue) in Q3 2023[71] - Revenues from U.S. operations decreased by 10.0% to $3.44 billion for the nine months ended September 30, 2024, compared to $3.82 billion in the same period in 2023[90] - Revenues from international operations decreased by 11.1% to $976 million for the nine months ended September 30, 2024, compared to $1.10 billion in the same period in 2023[90] Economic and Labor Market Conditions - U.S. real GDP increased by 2.8% during the first three quarters of 2024, while the unemployment rate rose from 3.7% to 4.1%[61] - The unemployment rate for college-educated individuals in the U.S. remained low at 2.3%, with even lower rates for in-demand accounting, finance, and IT positions[61] Headcount and Workforce Strategy - The company decreased headcount for contract and permanent placement talent solutions segments but increased full-time headcount for Protiviti compared to prior year-end levels[61] - The company's proprietary "Recruiters plus award-winning AI" strategy continues to add significant value to clients[61] Income Taxes and Investments - The provision for income taxes was 31.2% for Q3 2024, up from 29.9% in Q3 2023, primarily due to nondeductible expenses[88] - The Company's (income) loss from investments held in employee deferred compensation trusts was income of $29 million for Q3 2024, compared to a loss of $14 million in Q3 2023[83] - Income from investments held in employee deferred compensation trusts was $88 million for the nine months ended September 30, 2024[101] Cash Flow and Capital Expenditures - Cash and cash equivalents were $570 million at September 30, 2024[104] - Operating activities provided cash flows of $255 million during the nine months ended September 30, 2024[104] - Capital expenditures totaled $65 million for the nine months ended September 30, 2024, with $23 million for cloud computing arrangements[105] - The company expects 2024 capital expenditures to range from $80 million to $90 million, with $45 million to $55 million for software initiatives and technology infrastructure[105] - Cash and cash equivalents decreased to $570 million as of September 30, 2024, from $729 million in 2023[104] - Operating activities provided cash flows of $255 million in the nine months ended September 30, 2024, compared to $522 million in the same period in 2023[104] - Capital expenditures for the nine months ended September 30, 2024, totaled $65 million, with 58% allocated to software initiatives and technology infrastructure[105] - The company repurchased 2.5 million shares at a cost of $171 million during the nine months ended September 30, 2024[105] - The company announced a quarterly dividend of $0.53 per share, payable on December 13, 2024[105] Financial Obligations and Credit Facilities - Employee deferred compensation plan obligations totaled $664 million as of September 30, 2024[107] - The company reported current and long-term operating lease liabilities of $66 million and $173 million, respectively, as of September 30, 2024[107] - The company has an unsecured revolving credit facility of $100.0 million, maturing in May 2026, with no borrowings as of September 30, 2024[105]

Dividend Announcement - The board of directors of Robert Half Inc has approved a quarterly cash dividend of $0 53 per share [1] - The cash dividend will be paid on Dec 13, 2024, to all shareholders of record as of Nov 25, 2024 [1] Company Overview - Robert Half is the world's first and largest specialized talent solutions and business consulting firm [2] - The company connects highly skilled job seekers with rewarding opportunities at great companies [2] - Robert Half offers contract talent and permanent placement solutions in various fields including finance and accounting, technology, marketing and creative, legal, and administrative and customer support [2] - The company also provides executive search services [2] - Robert Half is the parent company of Protiviti®, a global consulting firm that delivers internal audit, risk, business, and technology consulting solutions [2] Industry Recognition - In 2024, Robert Half, including Protiviti, has been named one of the Fortune® Most Admired Companies™ and 100 Best Companies to Work For [2] - The company has also been recognized as a Forbes Best Employer for Diversity [2]