MENLO PARK, Calif., April 25, 2024 /CNW/ -- Robert Half Inc. (NYSE:RHI) today reported revenues and earnings for the first quarter ended March 31, 2024. For the three months ended March 31, 2024, net income was $64 million, or $0.61 per share, on revenues of $1.476 billion. For the three months ended March 31, 2023, net income was $122 million, or $1.14 per share, on revenues of $1.716 billion. "Client and candidate caution continues to impact hiring activity and new project starts on a global basis. However, the trend toward stabilization that began in the second half of last year continued into the first quarter of this year," said M. Keith Waddell, president and chief executive officer at Robert Half. "First-quarter results were largely in line with expectations, and we are encouraged that second-quarter earnings guidance, led by Protiviti, anticipates higher sequential earnings for the first time in seven quarters. "We'd like to extend our gratitude to our employees across the globe, whose efforts made possible a number of recent prestigious accolades. Robert Half was among an elite few companies — and the only in our industry — to be honored as a Fortune® Most Admired Company™ for 27 consecutive years. We were also recognized as one of Fortune's 100 Best Companies to Work For®, Forbes America's Best Large Employers and, just this week, one of Forbes' Best Employers for Diversity," Waddell concluded. Robert Half management will conduct a conference call today at 5 p.m. EDT. The prepared remarks for this call are available now in the Investor Center of the Robert Half website (www.roberthalf.com/investor-center). Simply click on the Quarterly Conference Calls link. The dial-in number is 888-394-8218 (+1-323-994-2093 outside the United States and Canada). The confirmation code to access the call is 8109583. A recording of this call will be available for audio replay beginning at approximately 8 p.m. EDT on April 25 and ending after 12 months. To access the replay, visit https://webcasts.com/RobertHalfQ12024. The conference call also will be archived in audio format on the Company's website at roberthalf.com. Robert Half is the world's first and largest specialized talent solutions and  business consulting firm, connecting highly skilled job seekers with rewarding opportunities at great companies. We offer contract talent and permanent placement solutions in the fields of finance and accounting, technology, marketing and creative, legal, and administrative and customer support, and we also provide executive search services. Robert Half is the parent company of Protiviti, a global consulting firm that delivers internal audit, risk, business and technology consulting solutions. In the past 12 months, Robert Half, including Protiviti, has been named Fortune® World's Most Admired™ and 100 Best Companies to Work For®, as well as a Forbes Best Employer for Diversity. Robert Half talent solutions and consulting operations has operations in over 400 locations worldwide.  Certain information contained in this press release and its attachments may be deemed forward-looking statements regarding events and financial trends that may affect the future operating results or financial positions of Robert Half Inc. (the "Company"). Forward-looking statements are not guarantees or promises that goals or targets will be met. These statements may be identified by words such as "anticipate," "estimate," "forecast," "target," "project," "plan," "intend," "believe," "expect,"  "should," "could," "would," "may," "might," "will," or variations or negatives thereof or by similar or comparable words or phrases. In addition, historical, current, and forward-looking information about the Company's environmental, social, and governance and compliance programs, including targets or goals, may not be considered material for the Securities and Exchange Commission ("SEC") reporting purposes and may be based on standards for measuring progress that are still developing, on internal controls, diligence, or processes that are evolving, and on assumptions that are subject to change in the future. Forward-looking statements are estimates only, based on management's current expectations, currently available information and current strategy, plans, or forecasts, and involve certain known and unknown risks, uncertainties, and assumptions that are difficult to predict and often beyond our control and are inherently uncertain.  Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements. These risks and uncertainties include, but are not limited to, the following: changes to or new interpretations of United States of America ("U.S.") or international tax regulations; the global financial and economic situation; changes in levels of unemployment and other economic conditions in the U.S. or foreign countries where the Company does business, or in particular regions or industries; reduction in the supply of candidates for contract employment or the Company's ability to attract candidates; the development, proliferation and adoption of artificial intelligence by the Company and the third parties it serves; the entry of new competitors into the marketplace or expansion by existing competitors; the ability of the Company to maintain existing client relationships and attract new clients in the context of changing economic or competitive conditions; the impact of competitive pressures, including any change in the demand for the Company's services, on the Company's ability to maintain its margins; the possibility of the Company incurring liability for its activities, including the activities of its engagement professionals, or for events impacting its engagement professionals on clients' premises; the possibility that adverse publicity could impact the Company's ability to attract and retain clients and candidates; the success of the Company in attracting, training, and retaining qualified management personnel and other staff employees; the Company's ability to comply with governmental regulations affecting personnel services businesses in particular or employer/employee relationships in general; whether there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; the Company's reliance on short-term contracts for a significant percentage of its business; litigation relating to prior or current transactions or activities, including litigation that may be disclosed from time to time in the Company's SEC filings; the ability of the Company to manage its international operations and comply with foreign laws and regulations; the impact of fluctuations in foreign currency exchange rates; the possibility that the additional costs the Company will incur as a result of health care or other reform legislation may adversely affect the Company's profit margins or the demand for the Company's services; the possibility that the Company's computer and communications hardware and software systems could be damaged or their service interrupted or the Company could experience a cybersecurity breach; and the possibility that the Company may fail to maintain adequate financial and management controls and, as a result, suffer errors in its financial reporting. Additionally, with respect to Protiviti, other risks and uncertainties include the fact that future success will depend on its ability to retain employees and attract clients; there can be no assurance that there will be ongoing demand for broad-based consulting, regulatory compliance, technology services, public sector or other high-demand advisory services; failure to produce projected revenues could adversely affect financial results; and there is the possibility of involvement in litigation relating to prior or current transactions or activities. Because long-term contracts are not a significant part of the Company's business, future results cannot be reliably predicted by considering past trends or extrapolating past results. A summary of additional risks and uncertainties can be found in the Annual Report on Form 10-K for the year ended December 31, 2023, and in the Company's other filings with the U.S. Securities and Exchange Commission. Because long-term contracts are not a significant part of the Company's business, future results cannot be reliably predicted by considering past trends or extrapolating past results. The Company undertakes no obligation to update information contained in this release, whether as a result of new information, future events, or otherwise, and notwithstanding any historical practice of doing so. A copy of this release is available at www.roberthalf.com/investor-center. ATTACHED:  Summary of Operations Supplemental Financial Information Non-GAAP Financial Measures   ROBERT HALF INC. SUMMARY OF OPERATIONS (in thousands, except per share amounts) Three Months EndedMarch 31, 2024 2023 (Unaudited) Service revenues $  1,475,937 $  1,716,335 Costs of services 913,140 1,026,603 Gross margin 562,797 689,732 Selling, general and administrative expenses 521,595 552,229 Income from investments held in employee deferred compensation trusts (which is completely      offset by related costs and expenses) (43,376) (27,291) Amortization of intangible assets 304 721 Interest income, net (6,413) (4,825) Income before income taxes 90,687 168,898 Provision for income taxes 26,986 46,893 Net income $     63,701 $   122,005 Diluted net income per share $          0.61 $          1.14 Weighted average shares: Basic 103,787 106,420 Diluted 104,399 107,130   ROBERT HALF INC. SUPPLEMENTAL FINANCIAL INFORMATION (in thousands) Three Months EndedMarch 31, 2024 2023 (Unaudited) SERVICE REVENUES INFORMATION Contract talent solutions Finance and accounting $    641,970 $    777,833 Administrative and customer support 199,932 219,350 Technology 157,970 194,082 Elimination of intersegment revenues (1) (112,814) (125,791) Total contract talent solutions 887,058 1,065,474 Permanent placement talent solutions 124,767 156,737 Protiviti 464,112 494,124 Total service revenues $ 1,475,937 $ 1,716,335 (1) Service revenues for finance and accounting, administrative and customer support, and technology include intersegment revenues, which represent revenues from services provided to the Company's Protiviti segment in connection with the Company's blended business solutions. Intersegment revenues for each functional specialization are aggregated and then eliminated as a single line.   Three Months Ended March 31, 2024 2023 $ % of Revenue $ % of Revenue (Unaudited) BUSINESS SEGMENT INCOME INFORMATION: Contract talent solutions $   50,118 5.6 % $  102,146 9.6 % Permanent placement talent solutions $   11,855 9.5 % $  23,827 15.2 % Protiviti $  22,605 4.9 % $  38,821 7.9 %   March 31, 2024 2023 (Unaudited) SELECTED BALANCE SHEET INFORMATION: Cash and cash equivalents $    540,939 $    547,729 Accounts receivable, net $    861,450 $ 1,009,192 Total assets $ 2,889,702 $ 2,912,134 Total current liabilities $ 1,179,540 $ 1,148,310 Total stockholders' equity $ 1,519,245 $ 1,598,481   Three Months Ended March 31, 2024 2023 (Unaudited) SELECTED CASH FLOW INFORMATION: Depreciation $         13,004 $         12,738 Capitalized cloud computing implementation costs $           8,391 $         10,457 Capital expenditures $         11,780 $           9,369 Open market repurchases of common stock (shares) 761 484 ROBERT HALF INC.NON-GAAP FINANCIAL MEASURES The financial results of Robert Half Inc. (the "Company") are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the SEC. To help readers understand the Company's financial performance, the Company supplements its GAAP financial results with the following non-GAAP measures: adjusted gross margin; adjusted selling, general and administrative expenses; combined segment income; and as adjusted revenue growth rates. The following measures: adjusted gross margin and adjusted selling, general and administrative expenses, include gains and losses on investments held to fund the Company's obligations under employee deferred compensation plans. The Company provides these measures because they are used by management to review its operational results. Combined segment income is income before income taxes, adjusted for interest income and amortization of intangible assets. The Company provides combined segment income because it is how management evaluates performance. As adjusted revenue growth rates represent year-over-year revenue growth rates after removing the impacts on reported revenues from the changes in the number of billing days and foreign currency exchange rates. The Company provides this data because it focuses on the Company's revenue growth rates attributable to operating activities and aids in evaluating revenue trends over time. The impacts from the changes in billing days and foreign currency exchange rates are calculated as follows: Billing days impact is calculated by dividing each comparative period's reported revenues by the number of billing days for that period to arrive at a per billing day amount. Same billing day growth rates are then calculated based on the per billing day amounts. Management calculates a global, weighted-average number of billing days for each reporting period based upon inputs from all countries and all functional specializations and segments. Foreign currency impact is calculated by retranslating current period international revenues, using foreign currency exchange rates from the prior year's comparable period. The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided on the following pages. ROBERT HALF INC. NON-GAAP FINANCIAL MEASURES ADJUSTED GROSS MARGIN (UNAUDITED): (in thousands) Three Months Ended March 31, Relationships As Reported As Adjusted As Reported As Adjusted 2024 2023 2024 2023 2024 2023 2024 2023 Gross Margin Contract talent solutions $   350,570 $   423,625 $   350,570 $   423,625 39.5 % 39.8 % 39.5 % 39.8 % Permanent placement talent solutions 124,548 156,395 124,548 156,395 99.8 % 99.8 % 99.8 % 99.8 % Total talent solutions 475,118 580,020 475,118 580,020 47.0 % 47.5 % 47.0 % 47.5 % Protiviti 87,679 109,712 96,036 114,484 18.9 % 22.2 % 20.7 % 23.2 % Total $   562,797 $   689,732 $   571,154 $   694,504 38.1 % 40.2 % 38.7 % 40.5 %   The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Contract talent solutions Permanent placement talent solutions Total talent solutions Protiviti Total Contract talent solutions Permanent placement talent solutions Total talent solutions Protiviti Total $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue Gross Margin As Reported $    350,570 39.5 % $  124,548 99.8 % $    475,118 47.0 % $     87,679 18.9 % $     562,797 38.1 % $    423,625 39.8 % $  156,395 99.8 % $    580,020 47.5 % $   109,712 22.2 % $     689,732 40.2 % Adjustments (1) — — — — — — 8,357 1.8 % 8,357 0.6 % — — — — — — 4,772 1.0 % 4,772 0.3 % As Adjusted $    350,570 39.5 % $  124,548 99.8 % $    475,118 47.0 % $     96,036 20.7 % $     571,154 38.7 % $    423,625 39.8 % $  156,395 99.8 % $    580,020 47.5 % $   114,484 23.2 % $     694,504 40.5 % (1) Changes in the Company's employee deferred compensation plan obligations related to Protiviti operations are included in costs of services, while the related investment income is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment income from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes.   ROBERT HALF INC. NON-GAAP FINANCIAL MEASURES ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED): (in thousands) Three Months Ended March 31, Relationships As Reported As Adjusted As Reported As Adjusted 2024 2023 2024 2023 2024 2023 2024 2023 Selling, General and Administrative Expenses Contract talent solutions $   331,588 $   341,722 $   300,452 $   321,479 37.4 % 32.1 % 33.9 % 30.2 % Permanent placement talent solutions 116,576 134,844 112,693 132,568 93.4 % 86.0 % 90.3 % 84.6 % Total talent solutions 448,164 476,566 413,145 454,047 44.3 % 39.0 % 40.8 % 37.1 % Protiviti 73,431 75,663 73,431 75,663 15.8 % 15.3 % 15.8 % 15.3 % Total $   521,595 $   552,229 $   486,576 $   529,710 35.3 % 32.2 % 33.0 % 30.9 %   The following tables provide reconciliations of the non-GAAP adjusted selling, general and administrative expenses to reported selling, general and administrative expenses for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Contract talent solutions Permanent placement talent solutions Total talent solutions