May 27, 2023

Resources Connection Q4 2023 Earnings Report

Resources Connection's Q4 2023 revenue declined due to a softer macroeconomic environment, but gross margin remained strong.

Key Takeaways

Resources Connection, Inc. reported a 15.0% decrease in revenue to $184.4 million for the fourth quarter of fiscal year 2023, compared to $217.0 million in the prior year quarter. Net income was $11.8 million, a decrease from $20.5 million in the prior year. Diluted earnings per share was $0.35, compared to $0.61 in the prior year. Despite these challenges, the company delivered a solid Adjusted EBITDA margin of 12.6%.

Revenue of $184.4 million declined 15.0% compared to prior year quarter.

Gross margin remained strong at 41.1% compared to 41.3%.

Net income of $11.8 million compared to $20.5 million in prior year quarter.

Diluted earnings per common share of $0.35 compared to $0.61.

Total Revenue
$184M
Previous year: $217M
-15.0%
EPS
$0.44
Previous year: $0.67
-34.3%
Consultant Headcount
3.15K
Previous year: 3.39K
-7.2%
Average Bill Rate
$129
Previous year: $131
-1.5%
Average Pay Rate
$62
Previous year: $64
-3.1%
Gross Profit
$75.7M
Previous year: $89.7M
-15.6%
Cash and Equivalents
$117M
Previous year: $104M
+12.1%
Free Cash Flow
$17.2M
Previous year: $26.4M
-35.0%
Total Assets
$532M
Previous year: $581M
-8.5%

Resources Connection

Resources Connection

Resources Connection Revenue by Geographic Location

Revenue & Expenses

Visualization of income flow from segment revenue to net income