Resources nection(US:RGP)2022-04-06 22:52Financial Data and Key Metrics Changes - The company achieved record Q3 revenue of $204.6 million, representing a 32% year-over-year growth and exceeding the high end of guidance [6][38] - Adjusted EBITDA more than doubled to $22.5 million, with an adjusted EBITDA margin of 11%, a 490 basis-point increase from the prior year [6][38] - The effective tax benefit rate for the quarter was 12.7%, with a discrete tax benefit of $7.5 million recognized [47][48] Business Line Data and Key Metrics Changes - Professional staffing revenue increased by 43% year-over-year, while project consulting revenue grew by 25% [39] - Revenue from strategic client accounts rose by 23% compared to the prior year quarter [39] - Solution offerings in finance and accounting, and business transformation grew by 42% and 36% year-over-year, respectively [40] Market Data and Key Metrics Changes - Revenue in North America improved by 36% year-over-year and 6% sequentially [41] - In Europe, revenue grew by 6% year-over-year, with a 6% deceleration compared to Q2 [42] - Asia Pacific revenue grew by 24% on a same-day constant currency basis [43] Company Strategy and Development Direction - The company is focused on leveraging the shift towards agile resources and project-based work, which aligns with its core value proposition [22][15] - Upcoming Investor Day will provide deeper insights into macro trends and growth opportunities [15][51] - The company aims to enhance brand clarity and visualize the interconnectivity of services within its ecosystem to drive growth [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the labor market is tightening, leading clients to seek assistance in filling workforce gaps [39] - The company anticipates continued revenue growth, although it expects normalization in the fourth quarter due to seasonal impacts [50] - There is confidence in attracting and retaining professional talent despite a competitive labor market [28][32] Other Important Information - The company maintained its quarterly dividend of $0.14 per share and repurchased $20 million of common stock [48] - A one-time foreign currency gain of $1 million was recognized related to the dissolution of the France entity [46] Q&A Session Summary Question: What are the expectations for revenue growth in the upcoming quarters? - Management expects sequential revenue growth to start to normalize but believes the overall strength in the business remains solid [50] Question: How is the company addressing the talent shortages in the market? - The company is focused on attracting talent by offering flexibility and control, which is increasingly appealing in the current labor market [28][32]