RGP revenue up 31.5% in fiscal third quarter, macro trends bring tailwinds
07 April 2022
Professional staffing provider Resources Connection Inc. (NASDAQ: RGP), doing business as RGP, reported revenue up 31.5% on a same-day, constant-currency basis in its third quarter tax closed on February 26. Gross margin improved and net profit showed a strong increase.
“We achieved record third quarter revenue, demonstrating our ability to seize opportunities that strongly favor RGP’s agile, skills-based delivery model,” said CEO Kate Duchene.
| (in thousands of dollars) | Q3 2022 | Q3 2021 | % cash | % constant currency, adjusted billing day |
| Revenue | $204,609 | $156,631 | 30.6% | 31.5% |
| Gross profit | $76,794 | $57,047 | 34.6% | |
| Gross margin | 37.5% | 36.4% | ||
| Net revenue | $19,421 | $690 | nm |
RGP, headquartered in Irvine, Calif., said it benefited from macroeconomic trends such as a focus on workforce agility, tight labor market, demand for services of digital transformation and increasing customer spending on important and transformational initiatives.
He also cited improved sales and operational execution.
RGP announced that its third quarter results included a tax benefit of $2.2 million, compared to an income tax expense of $1.1 million in the prior year quarter. RGP also realized a benefit of $2.6 million following the dissolution of its French entity.
The tax benefit and a strong performance in the third quarter boosted net income, RGP reported.
Revenue by geographic area
| (in thousands of dollars) | Q3 2022 | Q3 2021 | % cash | % constant currency, adjusted billing day |
| North America | $173,569 | $127,913 | 35.7% | 35.7% |
| Europe | $17,856 | $17,751 | 0.6% | 5.6% |
| Asia Pacific | $13,184 | $10,967 | 20.2% | 24.4% |
Stock price and market capitalization
Shares rose 5.80% to $17.88 at 12:09 a.m. EST; they were 11.31% below their 52-week high, according to FT.com. The company had a market cap of $549.7 million.