May 25, 2024

Resources Connection Q4 2024 Earnings Report

Revenue and gross margin beat outlook range, SG&A improved due to cost discipline.

Key Takeaways

Resources Connection, Inc. reported Q4 2024 financial results with revenue of $148.2 million and net income of $10.5 million. The company saw stabilization in the business, delivering results above outlook ranges. Continued cost discipline drove improved SG&A.

Revenue of $148.2 million compared to $184.4 million, a decline of 19.7%.

Gross margin remained strong at 40.2% compared to 41.1%.

Net income of $10.5 million (net income margin of 7.1%) compared to $11.8 million (net income margin of 6.4%).

Selling, general and administrative expenses (“SG&A”) of $46.4 million, net of $(4.4) million of non-cash contingent consideration adjustment, compared to $56.5 million, an improvement of 18.0%

Total Revenue
$148M
Previous year: $184M
-19.7%
EPS
$0.28
Previous year: $0.44
-36.4%
Average Bill Rate
$120
Previous year: $129
-7.0%
Average Pay Rate
$57
Previous year: $62
-8.1%
Gross Profit
$59.6M
Previous year: $75.7M
-21.3%
Cash and Equivalents
$109M
Previous year: $117M
-6.8%
Free Cash Flow
$3.04M
Previous year: $17.2M
-82.3%
Total Assets
$511M
Previous year: $532M
-4.0%

Resources Connection

Resources Connection

Resources Connection Revenue by Geographic Location

Forward Guidance

Company is setting the foundation for competitive advantage and growth once broader macroeconomic conditions impacting the human capital sector improve.

Revenue & Expenses

Visualization of income flow from segment revenue to net income