Robert Half Inc. Reports 9.3% Revenue Decline and 38.8% Drop in Net Income for Fiscal Year 2024

Robert Half Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with service revenues totaling $5.80 billion, a decrease of 9.3% from $6.39 billion in 2023. The company's net income fell by 38.8% to $252 million, resulting in a diluted net income per share of $2.44, down from $3.88 in the previous year. The decline in revenue and profitability was attributed to ongoing macroeconomic uncertainty, which has affected client and candidate confidence, leading to longer decision cycles and delayed hiring activities.

The company's revenue breakdown revealed that U.S. operations generated $4.52 billion, an 8.8% decrease from $4.96 billion in 2023, while international revenues decreased by 11.1% to $1.28 billion. The contract talent solutions segment experienced a 13.8% decline in revenues to $3.36 billion, primarily due to a 14.6% decrease in the number of hours worked by engagement professionals, despite a slight increase in average bill rates. Permanent placement talent solutions revenues also fell by 14.1% to $487 million, driven by a 17.0% decrease in placements. In contrast, the Protiviti segment saw a modest revenue increase of 1.1% to $1.95 billion, attributed to a rise in average hourly bill rates.

In terms of operational developments, Robert Half continued to invest in technology and innovation, particularly in artificial intelligence (AI), to enhance its service offerings. The company is focused on providing a seamless digital experience for clients and candidates, leveraging proprietary data to improve recruitment processes. Additionally, the company has been monitoring various economic indicators to align its investments with expected revenue growth trends. Notably, the full-time headcount for Protiviti increased, while the overall headcount for contract talent solutions and permanent placement talent solutions decreased compared to the previous year.

Looking ahead, Robert Half expressed confidence in its ability to navigate the current economic cycle, citing rising business confidence and elevated job openings as positive indicators for future demand. The company plans to capitalize on emerging opportunities and support clients' talent and consulting needs through its established brand and innovative business model. However, the outlook remains cautious due to the inherent uncertainties in predicting economic trends and the reliance on macroeconomic conditions for revenue generation. The company has also extended its stock repurchase program, indicating a commitment to returning value to shareholders amidst the challenging market environment.