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May 28, 2022
Resources Connection Q4 2022 Earnings Report
Resources Connection achieved strong financial results with the highest revenue in over a decade.
Key Takeaways
Resources Connection, Inc. reported strong financial results for Q4 2022, with revenue increasing by 25.9% year-over-year to $217.0 million. The company's net income was $20.5 million, and diluted earnings per share were $0.61. Adjusted EBITDA margin improved to 15.4%.
Revenue increased 25.9% year over year and 6.1% sequentially, to $217.0 million
Gross profit improved to $89.7 million, up 31.3% from the prior year quarter
Net income was $20.5 million (net income margin of 9.5%)
Adjusted EBITDA increased to $33.4 million, or 15.4%
Revenue by Geographic Location
Forward Guidance
Company is encouraged by the solid trajectory of their pipeline supported by reoccurring projects from their strategic clients as they leverage RGP’s experienced talent to help them execute on transformations and fill on-demand talent gaps.
Positive Outlook
- Strongest revenue and Adjusted EBITDA in over ten years.
- Successful execution on record pipeline of opportunities across all businesses.
- Continued growth in project size and duration.
- Expansion of relationships and breadth of services within global client base.
- Solid trajectory of pipeline supported by reoccurring projects from strategic clients.
Challenges Ahead
- Risks related to an economic downturn or deterioration of general macroeconomic conditions.
- The highly competitive nature of the market for professional services.
- Risks related to the loss of a significant number of our consultants, or an inability to attract and retain new consultants.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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