Robert Half(US:RHI)2025-05-02 20:05Revenue Performance - Service revenues for Q1 2025 were $1.35 billion, a decrease of 8.4% from $1.48 billion in Q1 2024[90]. - Contract talent solutions revenues decreased by 14.0% to $763 million in Q1 2025, driven by a 16.2% decrease in hours worked[105]. - Permanent placement talent solutions revenues were $112 million, down 10.2% from $125 million in Q1 2024, with an 11.4% decrease in placements[107]. - Protiviti revenues increased by 2.7% to $477 million in Q1 2025, supported by a 3.4% increase in billable hours[108]. - The company's reported revenue growth for contract talent solutions was -14.0% globally, -11.8% in the United States, and -20.7% internationally for the three months ended March 31, 2025[109]. - The Company reported a decrease in international revenues by 13.6% to $289 million for the three months ended March 31, 2025[104]. Income and Expenses - Net income for Q1 2025 was $17 million, with diluted net income per share at $0.17, reduced by $0.13 per share due to one-time charges[90]. - Selling, general and administrative expenses were reported at $460 million for Q1 2025, a decrease of 11.8% from $522 million in Q1 2024, representing 34.0% of revenues[115]. - Adjusted selling, general and administrative expenses for contract talent solutions were $290 million, with a percentage of revenue at 38.0%, up from 33.9% in Q1 2024[120]. - The company's reported operating income for Q1 2025 was $39 million, down 4.9% from $41 million in Q1 2024, with an operating income margin of 2.9%[122]. - Adjusted operating income for Q1 2025 was $19 million, a decrease of 77.8% from $84 million in Q1 2024, resulting in a margin of 1.4%[122]. Gross Margin - Gross margin dollars decreased by 11.3% to $499 million for the three months ended March 31, 2025, down from $563 million in the same period of 2024[109]. - Gross margin for contract talent solutions was $297 million, a decrease of 15.3% from $351 million year-over-year, with a gross margin percentage of 38.9% in Q1 2025, down from 39.5% in Q1 2024[111]. - The overall adjusted gross margin for the company was 36.6% in Q1 2025, down from 38.7% in Q1 2024[114]. - Protiviti's gross margin dollars increased by 2.9% to $90 million for Q1 2025, maintaining a gross margin percentage of 18.9%[113]. - The company experienced a decrease in gross margin percentage for Protiviti, adjusted to 18.1% in Q1 2025 from 20.7% in Q1 2024, primarily due to one-time charges of $8 million[113]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $342 million in Q1 2025 from $541 million in Q1 2024, with net cash used in operating activities of $59 million in Q1 2025 compared to $16 million in Q1 2024[127][128]. - The company anticipates that internally generated cash will be sufficient to support its working capital needs and obligations on both a short-term and long-term basis[133]. - The Company has an unsecured revolving credit facility of $100 million, with no borrowings as of March 31, 2025[135]. - As of March 31, 2025, the Company had $342 million in cash and cash equivalents and $787 million in net accounts receivable, indicating strong liquidity[133]. Economic and Market Conditions - Economic uncertainty has led to elongated decision cycles and subdued hiring activity, impacting overall performance[89]. - U.S. unemployment rate stands at 4.2%, with a lower rate of 2.6% for college graduates, indicating a resilient labor market[91]. - The Company is well-positioned to capitalize on emerging opportunities despite the uncertain economic outlook[92]. Investments and Future Outlook - The Company continues to invest in technology and AI to enhance client and candidate experiences[93]. - The company expects capital expenditures for 2025 to range from $75 million to $95 million, with $45 million to $55 million allocated for software initiatives and technology infrastructure[130]. - The provision for income taxes was 22.1% for Q1 2025, down from 29.8% in Q1 2024, primarily due to accelerated timing of certain tax credits[125]. - The company repurchased $50 million in common stock during Q1 2025, compared to $86 million in Q1 2024[131].