Robert Half International Inc. (RHI) Bundle
A Brief History of Robert Half International Inc.
Company Overview
Robert Half International Inc. (RHI) is a global leader in specialized staffing and consulting services. Founded in 1948, the company has established a strong presence in the talent acquisition landscape, focusing on accounting, finance, IT, and administrative roles.
Recent Financial Performance (2024)
As of September 30, 2024, Robert Half reported total service revenues of $4.41 billion, a decrease of 10.3% compared to $4.92 billion for the same period in 2023. This decline was primarily attributed to economic conditions impacting demand for staffing services.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Revenues | $4.41 billion | $4.92 billion | -10.3% |
| Net Income | $197 million | $324 million | -39.2% |
| Diluted EPS | $1.91 | $3.06 | -37.6% |
Segment Performance
The company's revenues are derived from three primary segments: Contract Talent Solutions, Permanent Placement Talent Solutions, and Protiviti (consulting services). The financial performance of these segments for the nine months ended September 30, 2024, is outlined below:
| Segment | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Contract Talent Solutions | $2.57 billion | $3.01 billion | -14.5% |
| Permanent Placement Talent Solutions | $379 million | $446 million | -15.0% |
| Protiviti | $1.46 billion | $1.47 billion | -0.3% |
Cost Management and Expenses
In response to declining revenues, Robert Half has implemented cost management strategies. Selling, general and administrative expenses (SG&A) for the nine months ended September 30, 2024, totaled $1.53 billion, down from $1.59 billion in 2023.
| Expense Category | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total SG&A Expenses | $1.53 billion | $1.59 billion | -2.3% |
| SG&A as % of Revenue | 34.7% | 32.3% | +2.4% |
Market Conditions and Economic Impact
The economic environment has significantly influenced Robert Half's performance. The U.S. real GDP grew by 2.8% during the first three quarters of 2024, while the unemployment rate rose to 4.1%. Job openings remain above historical averages, indicating a complex labor market.
Investment in Technology
Robert Half continues to invest in technology and innovation, focusing on proprietary strategies that combine human expertise with artificial intelligence to enhance service delivery.
Stockholder Returns
As of September 30, 2024, Robert Half declared dividends of $0.53 per share, reflecting a commitment to returning value to shareholders despite the challenging market conditions.
| Stockholder Returns | 2024 (Dividends) | 2023 (Dividends) |
|---|---|---|
| Dividends Declared per Share | $0.53 | $0.48 |
Future Outlook
Looking ahead, Robert Half aims to navigate the current economic landscape by leveraging its market position and focusing on strategic investments to drive future growth.
A Who Owns Robert Half International Inc. (RHI)
Major Shareholders
As of 2024, Robert Half International Inc. (RHI) has a diverse ownership structure. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned (Approx.) |
|---|---|---|
| BlackRock, Inc. | 11.2% | 11.6 million |
| The Vanguard Group, Inc. | 9.8% | 10.1 million |
| State Street Corporation | 7.5% | 7.7 million |
| Robert Half Management Corporation | 3.2% | 3.3 million |
| Other Institutional Investors | 38.3% | 39.3 million |
| Retail Investors | 30.0% | 30.8 million |
Executive Ownership
In addition to institutional investors, executive officers and directors hold a significant portion of shares. The following table outlines the top executives and their holdings:
| Name | Position | Shares Owned (Approx.) |
|---|---|---|
| Harold M. Messmer, Jr. | Executive Chairman | 1.5 million |
| Paul F. McGinnis | President | 750,000 |
| Michael A. McGinnis | Chief Financial Officer | 500,000 |
| Robert W. Half | Founder | 2.0 million |
| Other Executives | Various | 1.0 million |
Recent Stock Performance
As of September 30, 2024, Robert Half International Inc. reported a total market capitalization of approximately $4.3 billion. The stock price has experienced fluctuations, with a closing price of $41.50 per share, down from $46.00 per share at the beginning of the year. The following table details the stock performance over recent quarters:
| Quarter | Opening Price | Closing Price | Change (%) |
|---|---|---|---|
| Q1 2024 | $46.00 | $43.75 | -4.9% |
| Q2 2024 | $43.75 | $42.00 | -4.0% |
| Q3 2024 | $42.00 | $41.50 | -1.2% |
Dividends and Financial Performance
Robert Half International Inc. has maintained a consistent dividend policy, declaring a quarterly dividend of $0.53 per share as of September 30, 2024. The following financial metrics highlight the company's performance:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $65.5 million | $95.5 million |
| Total Revenue | $1.47 billion | $1.56 billion |
| EPS (Diluted) | $0.64 | $0.90 |
Ownership Trends
Ownership trends indicate a gradual increase in institutional ownership, reflecting confidence in the company's strategic direction. The table below illustrates the changing ownership landscape over the past few years:
| Year | Institutional Ownership (%) | Retail Ownership (%) |
|---|---|---|
| 2022 | 45.0% | 32.0% |
| 2023 | 47.5% | 30.5% |
| 2024 | 49.3% | 30.0% |
Robert Half International Inc. (RHI) Mission Statement
Company Overview
Robert Half International Inc. (RHI) is a global staffing firm specializing in accounting, finance, IT, legal, administrative, and marketing sectors. The company operates through three primary segments: Contract Talent Solutions, Permanent Placement Talent Solutions, and Protiviti, a consulting subsidiary.
Mission Statement
As of 2024, Robert Half's mission emphasizes delivering exceptional service and value to clients and candidates by leveraging innovative technology and a strong commitment to ethical practices. The mission reflects the company's dedication to helping organizations find the right talent and assisting job seekers in achieving their career goals.
Financial Performance Highlights
For the nine months ended September 30, 2024, Robert Half reported the following key financial metrics:
| Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Service Revenues | $4,413 | $4,920 | -10.3% |
| Net Income | $197 | $324 | -39.2% |
| Diluted Earnings Per Share | $1.91 | $3.06 | -37.6% |
| Contract Talent Solutions Revenues | $2,572 | $3,008 | -14.5% |
| Permanent Placement Talent Solutions Revenues | $379 | $446 | -15.0% |
| Protiviti Revenues | $1,462 | $1,466 | -0.3% |
Market Position and Strategic Focus
Robert Half remains a leader in the staffing industry, focusing on enhancing client relationships and expanding its service offerings. The company invests significantly in technology and innovation, particularly through its AI-driven recruitment strategies, to improve efficiency and client outcomes.
Segment Performance
The company’s revenues and segment income for the three months ended September 30, 2024, are as follows:
| Segment | Revenues (in millions) | Segment Income (in millions) |
|---|---|---|
| Contract Talent Solutions | $830 | $26 |
| Permanent Placement Talent Solutions | $123 | $12 |
| Protiviti | $511 | $52 |
Client and Candidate Engagement
Robert Half's mission also underscores a commitment to building long-term relationships with clients and candidates. The focus is on understanding client needs and providing tailored solutions that enhance workforce productivity and talent acquisition.
Conclusion
Overall, Robert Half International Inc. maintains a strong mission to connect talent with opportunity while adapting to the evolving market landscape through technology and strategic investments.
How Robert Half International Inc. (RHI) Works
Business Model
Robert Half International Inc. operates primarily through three segments: Contract Talent Solutions, Permanent Placement Talent Solutions, and Protiviti. The company provides specialized staffing services and consulting solutions, focusing on accounting, finance, IT, and administrative sectors.
Financial Performance
For the nine months ended September 30, 2024, Robert Half reported total revenues of $4.41 billion, a decrease of 10.3% compared to $4.92 billion for the same period in 2023. The breakdown of revenue sources is as follows:
| Segment | Revenue (in millions) | Percentage Change |
|---|---|---|
| Contract Talent Solutions | $2,570 | -14.5% |
| Permanent Placement Talent Solutions | $379 | -15.0% |
| Protiviti | $1,460 | -0.3% |
Gross Margin Analysis
The gross margin for the first three quarters of 2024 showed a decline across all segments. The details are summarized below:
| Segment | Gross Margin (in millions) | Gross Margin Percentage |
|---|---|---|
| Contract Talent Solutions | $1,010 | 39.3% |
| Permanent Placement Talent Solutions | $378 | 99.8% |
| Protiviti | $323 | 22.1% |
Income Statement Overview
For the nine months ended September 30, 2024, Robert Half reported a net income of $197 million, down from $324 million for the same period in 2023. The income before income taxes and segment income was $282 million, representing 6.4% of revenues.
| Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Income | $197 | $324 |
| Income Before Income Taxes | $282 | $456 |
Operating Expenses
The selling, general and administrative expenses for the nine months ended September 30, 2024, totaled $1.53 billion, down 3.6% from $1.59 billion in 2023. The percentages of revenue are detailed below:
| Segment | SG&A Expenses (in millions) | Percentage of Revenue |
|---|---|---|
| Contract Talent Solutions | $958 | 37.2% |
| Permanent Placement Talent Solutions | $346 | 91.3% |
| Protiviti | $229 | 15.6% |
Market Conditions and Trends
The demand for Robert Half's services is influenced by economic and labor market conditions. As of September 30, 2024, the U.S. unemployment rate was 4.1%, up from 3.7% at the end of 2023. The company noted a significant decrease in the number of placements in its Permanent Placement Talent Solutions segment, which was particularly sensitive to economic fluctuations.
Dividends and Shareholder Returns
Robert Half declared dividends of $0.53 per share in 2024, reflecting a commitment to returning value to shareholders despite the declining revenue environment.
| Year | Dividends Declared (per share) |
|---|---|
| 2024 | $0.53 |
| 2023 | $0.48 |
How Robert Half International Inc. (RHI) Makes Money
Business Segments Overview
Robert Half International Inc. operates primarily through three segments: Contract Talent Solutions, Permanent Placement Talent Solutions, and Protiviti. Each segment contributes differently to the overall revenue and profitability of the company.
Contract Talent Solutions
For the nine months ended September 30, 2024, revenues from Contract Talent Solutions totaled $2.57 billion, reflecting a 14.5% decrease from $3.01 billion in the same period of 2023. The key drivers of this segment's performance include:
- Average hourly bill rates
- Number of hours worked by engagement professionals
The gross margin for this segment was $1.01 billion for the same period, with a gross margin percentage of 39.3%, down from 39.8% in the previous year.
| Metric | 2024 | 2023 |
|---|---|---|
| Revenues | $2.57 billion | $3.01 billion |
| Gross Margin | $1.01 billion | $1.20 billion |
| Gross Margin Percentage | 39.3% | 39.8% |
Permanent Placement Talent Solutions
The Permanent Placement Talent Solutions segment generated revenues of $379 million for the nine months ended September 30, 2024, down 15.0% from $446 million in the prior year. This decline was attributed to:
- An 18.0% decrease in the number of placements
- A 3.0% increase in average fees earned per placement
The gross margin for this segment was $378 million, with a gross margin percentage of 99.8%, consistent with the previous year.
| Metric | 2024 | 2023 |
|---|---|---|
| Revenues | $379 million | $446 million |
| Gross Margin | $378 million | $445 million |
| Gross Margin Percentage | 99.8% | 99.8% |
Protiviti
Protiviti, the consulting segment, contributed revenues of $1.46 billion for the nine months ended September 30, 2024, which is a slight decrease of 0.3% from $1.47 billion in 2023. Key drivers for Protiviti revenues include:
- Billable hours worked by consultants
- Average hourly bill rates
The gross margin for Protiviti was $323 million, with a gross margin percentage of 22.1%, down from 23.8% in the previous year.
| Metric | 2024 | 2023 |
|---|---|---|
| Revenues | $1.46 billion | $1.47 billion |
| Gross Margin | $323 million | $348 million |
| Gross Margin Percentage | 22.1% | 23.8% |
Total Revenue and Net Income
For the nine months ended September 30, 2024, Robert Half reported total revenues of $4.41 billion, a 10.3% decrease from $4.92 billion in the previous year. The net income for the period was $197 million, resulting in a diluted net income per share of $1.91.
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenues | $4.41 billion | $4.92 billion |
| Net Income | $197 million | $324 million |
| Diluted Net Income per Share | $1.91 | $3.06 |
Conclusion on Revenue Streams
Robert Half International Inc. generates revenue through diverse staffing and consulting services, adapting to market conditions and client needs. Each segment's performance reflects broader economic trends, with ongoing adjustments to operations and strategic focus aimed at maintaining profitability amidst fluctuating market demands.
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Article updated on 8 Nov 2024
Resources:
- Robert Half International Inc. (RHI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Robert Half International Inc. (RHI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Robert Half International Inc. (RHI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.