Robert Half Inc. · NYSE:RHI
Robert Half — Investor Presentation (June 2024)
36 slides from Robert Half's investor presentation, June 2024
Slide 1: Investor Presentation
Investor Presentation M. Keith Waddell President and Chief Executive Officer Robert Half June 2024 © 2 0 2 4 Ro be rt Ha lf I n c. A n Eq ua l Op por t un it y Em p lo y er M / F/ D is abi l i t y / V et e ran s .
Slide 2: Disclaimer
Disclaimer Certain information contained in this presentation may be deemed forward-looking statements regarding events and financial trends that may affect the company’s future operating results or financial positions. Forward-looking statements are subject to risks and uncertainties that could cau
Slide 3: Company Snapshot
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Company Snapshot NYSE symbol: Q1 2024 RHI Service Revenues: $1.48 Billion Headquarters: Menlo Park, Calif. Net Income: $64 Million Full-time internal staff*: Return on Invested Capital: 15,000 16.4% *As of December 31, 2023. Includes approximately 7,000 emplo
Slide 4: Local Capabilities, Global Reach
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Local Capabilities, Global Reach Robert Half 315 office locations 18 countries Protiviti 89 office locations* 29 countries* Robert Half and Protiviti* *Includes Member Firms, which are independent legal entities operating under the Protiviti name 4 © 2 0 2 4
Slide 5: The Most Respected Name in Talent Solutions and Consulting
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N The Most Respected Name in Talent Solutions and Consulting All referenced trademarks are the property of their respective owners. Barron’s and Forbes award logos are reprinted with permission of Barron’s and Forbes. From Fortune, © 2024 FORTUNE Media IP Limit
Slide 6: 76 Years of Changing Lives and Helping Companies Succeed
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N 76 Years of Changing Lives and Helping Companies Succeed 1948 1986 1987-2001 2002 Today Originated as Acquired Expanded globally; Launched Offer full spectrum Robert Half business from introduced Protiviti of talent solutions Personnel Agency Bob Half special
Slide 7: U.S. Accounts for Almost 80% of Talent Solutions Revenues
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N U.S. Accounts for Almost 80% of Talent Solutions Revenues Talent Solutions Revenue Mix — Global International United States 24% 76% Q1 2024 Talent Solutions Revenues 7 © 2 0 2 4 Ro be rt Ha lf I n c. A n Eq ua l Op por t un it y Em p lo y er M / F/ D is abi l
Slide 8: Largest Portion of International Talent Solutions Revenues from Continental Europe
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Largest Portion of International Talent Solutions Revenues from Continental Europe Talent Solutions Revenue Mix — International Continental Europe 12% International United States 24% 76% Asia-Pacific 4% Canada 4% United Kingdom 2% Other 2% Q1 2024 Talent Solu
Slide 9: Germany and Belgium Produce Largest European Revenues
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Germany and Belgium Produce Largest European Revenues Talent Solutions Revenue Mix — Continental Europe Germany 6% Continental Europe Belgium 4% 12% France 1% Other 1% Q1 2024 Talent Solutions Revenues 9 © 2 0 2 4 Ro be rt Ha lf I n c. A n Eq ua l Op por t un
Slide 10: Revenue Mix by Segment
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Revenue Mix by Segment Q1 2024 Global Revenues Permanent Placement Talent Solutions Protiviti 9% 31% Contract Talent Solutions 60% 10 © 2 0 2 4 Ro be rt Ha lf I n c. A n Eq ua l Op por t un it y Em p lo y er M / F/ D is abi l i t y / V et e ran s .
Slide 11: Revenue Mix by Segment
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Revenue Mix by Segment Q1 2024 Global Revenues Administrative and Technology Customer Support 18% 23% Contract Talent Solutions* Finance and Accounting 72% Q1 2024 Contract Talent Solutions Mix * Serv ice revenues for contract talent solutions add to more tha
Slide 12: Return on Invested Capital
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Return on Invested Capital Q1 2024 Versus 20-Year Average 24.8% Superior ROIC is rooted in 16.4% our ability to generate industry-leading profitability on a judiciously employed capital base, including growth achieved primarily by organic means. 20-Year Avera
Slide 13: Business Strategy
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Business Strategy Value proposition: Only full-time jobs require full-time staff. • Clients value specialization in professional segments. • Middle-market talent solutions accounts are smaller, less price-sensitive; clients are demanding; quality is key. • Pr
Slide 14: Structural Shift to Remote/Hybrid Talent Models
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Structural Shift to Remote/Hybrid Talent Models Increases competitive advantage through: • Brand strength and awareness • Global candidate database • Local candidate relationships • Proven AI-based matching technology 14 © 2 0 2 4 Ro be rt Ha lf I n c. A n Eq
Slide 15: Balanced Suite of Consulting Solutions Driving Protiviti Growth
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Balanced Suite of Consulting Solutions Driving Protiviti Growth Growing suite of consulting solutions Blended Protiviti/ Internal Talent Solutions Audit and Technology Risk and Business Performance Financial Consulting Compliance Improvement Advisory 15 © 2 0
Slide 16: Full Spectrum of Talent Solutions and Consulting Solutions
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Full Spectrum of Talent Solutions and Consulting Solutions Project Management Traditional Staffing Specialized Talent Solutions and Project Skills and Deliverables Finance and Finance and Accounting – Marketing Management Accounting – Protiviti Permanent and
Slide 17: Unique Client-Driven Delivery Model
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Unique Client-Driven Delivery Model We offer a uniquely flexible talent pool and deep consulting capability through our talent solutions and Protiviti brands. Talent Solutions Blended Consulting Talent solutions competitors We provide world-class Global and r
Slide 18: Marketing Approach
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Marketing Approach Positioning Awareness Digital Media Positioned as quality leader through • Traditional media for broad • Specific target audiences advertising and PR activities brand awareness • Search – paid and organic • Radio • Digital advertising and •
Slide 19: Robert Half Digital Strategy
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Robert Half Digital Strategy Winning the Digital Race • World-class customer and candidate experience, both online and through our award-winning mobile app • Data science, artificial intelligence and machine learning power our digital experiences • Integrated
Slide 20: Financial Performance
Financial Performance 20 © 2 0 2 4 Ro be rt Ha lf I n c. A n Eq ua l Op por t un it y Em p lo y er M / F/ D is abi l i t y / V et e ran s .
Slide 21: Revenues of $1.48 Billion for Q1 2024
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Revenues of $1.48 Billion for Q1 2024 21 © 2 0 2 4 Ro be rt Ha lf I n c. A n Eq ua l Op por t un it y Em p lo y er M / F/ D is abi l i t y / V et e ran s .
Slide 22: Revenue History (Q2 2004 – Q1 2024)
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Revenue History (Q2 2004 – Q1 2024) Quarterly Global Revenues (in Billions) $1.95 1.86 1.83 $1.85 1.81 1.77 $1.75 1.71 1.73 1.72 1.64 $1.65 1.58 1.55 1.56 1.54 $1.55 1.52 1.51 1.48 1.48 1.46 1.47 1.47 1.47 $1.45 1.40 1.40 1.34 1.34 1.35 $1.35 1.31 1.31 1.30 1
Slide 23: Contract Talent Solutions Revenue History
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Contract Talent Solutions Revenue History (Q2 2004 – Q1 2024) Quarterly Global Revenues (in Billions) $1.25 1.17 1.16 1.14 $1.15 1.12 1.11 1.12 1.10 1.09 1.08 1.09 1.08 1.09 1.07 1.07 1.07 1.05 $1.05 1.01 1.01 1.03 1.02 1.02 1.00 1.00 1.00 1.00 0.99 0.98 0.98
Slide 24: Permanent Placement Talent Solutions Revenue History (Q2 2004 – Q1 2024)
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Permanent Placement Talent Solutions Revenue History (Q2 2004 – Q1 2024) Quarterly Global Revenues (in Millions) $225 200 $200 187 182 $175 156 158 156 157 149 $150 141 144 140 135 135 132 130 128 126 126 125 $125 115 118 116 121 120 122 113 113 113 111 112 1
Slide 25: Protiviti Revenue History (Q2 2004 – Q1 2024)
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Protiviti Revenue History (Q2 2004 – Q1 2024) Quarterly Global Revenues (in Millions) $550 511 501 499 495 497 494 491 $500 481 472 464 464 459 $450 397 $400 362 $350 321 305 299 294 284 $300 273 263 253 252 $250 234 217 214 209 208 202 199 201 195 196 197 $2
Slide 26: Robert Half Enterprise Results
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Robert Half Enterprise Results Year-Over-Year Revenue Growth (As Adjusted*) 50% 43% 43% 40% 40% 39% 36% 34% 31% 31% 30% 25% 23% 22% 22% 20% 21% 20% 20% 20% 18% 17% 16% 17% 16% 15% 16% 15% 14% 15% 12% 13% 13% 12% 11%9% 11% 11% 10% 8% 10% 10% 10% 10% 10% 8% 7%
Slide 27: Talent Solutions — U.S. vs. International
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Talent Solutions — U.S. vs. International Year-Over-Year Revenue Growth (As Adjusted*) ‒ ‒ U.S. — International: Restated in Constant Currency 50% 40% 40% 37% 38% 34% 32% 34% 31% 31% 30% 28% 28% 27% 31% 28% 30% 27% 25% 21% 25% 27% 27% 26% 25% 24% 21% 24% 23%
Slide 28: Contract Talent Solutions vs. Permanent Placement Talent Solutions
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Contract Talent Solutions vs. Permanent Placement Talent Solutions Year-Over-Year Revenue Growth (As Adjusted*) ‒‒ Contract Talent Solutions — Permanent Placement Talent Solutions 115% 95% 78% 74% 75% 69% 59% 59% 62% 67% 55% 55% 48% 57% 55% 44% 43% 41% 40% 37
Slide 29: Contract Talent Solutions Segment Income Margin
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Contract Talent Solutions Segment Income Margin* 20-Year History 12.0% 10.9% 11.0% 10.2% 10.2% 10.0% 9.8% 9.8% 9.8% 10.0% 9.5% 9.6% 9.3% 9.3% 8.9% 8.9% 9.0% 8.3% 8.0% 7.5% 6.9% 6.9% 6.8% 7.0% 6.0% 5.6% 5.0% 4.2% 4.2% 4.0% 3.0% 2.0% 1.0% 0.0% 2004 2005 2006 20
Slide 30: Permanent Placement Talent Solutions Segment Income Margin
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Permanent Placement Talent Solutions Segment Income Margin* 20-Year History 25.0% 23.0% 22.2% 21.0% 20.3% 19.9% 20.2% 19.4% 19.1% 18.7% 19.0% 17.7% 17.7% 17.6% 16.7% 17.0% 15.6% 15.7% 15.0% 14.1% 13.2% 12.5% 13.0% 11.7% 11.0% 9.5% 9.0% 7.9% 7.8% 7.0% 5.0% 3.0
Slide 31: Protiviti Segment Income Margin
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Protiviti Segment Income Margin* 20-Year History 20.0% 17.9% 18.1% 18.0% 16.5% 16.0% 13.7% 14.0% 12.9% 12.3% 12.0% 11.2% 11.3% 10.0% 10.3% 9.7% 9.7% 9.7% 10.0% 8.1% 8.0% 6.0% 4.9% 3.8% 4.0% 2.4% 2.0% 1.3% 1.2% 0.0% -2.0% -4.0% -2.8% -6.0% -8.0% -8.0% -10.0% 2
Slide 32: Strong Balance Sheet
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Strong Balance Sheet As of March 31, 2024 $2.9B $541M Zero Total assets Cash Debt 32 © 2 0 2 4 Ro be rt Ha lf I n c. A n Eq ua l Op por t un it y Em p lo y er M / F/ D is abi l i t y / V et e ran s .
Slide 33: Substantially All Free Cash Flow Returned to Shareholders
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Substantially All Free Cash Flow Returned to Shareholders (in Millions) Q1’24 5 Years Dividends $58 49% $779 45% Share Repurchases $61 51% $971 55% Total $119 100% $1,750 100% Amounts shown are through March 31, 2024 33 © 2 0 2 4 Ro be rt Ha lf I n c. A n Eq
Slide 34: Quarterly Dividend Increased Annually Since Inception
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Quarterly Dividend Increased Annually Since Inception $0.06 $0.53 11.6% Q2 2004 Q1 2024 Compound Annual Growth Rate* *CAGR percentage calculated with declaration date of February 13, 2024 34 © 2 0 2 4 Ro be rt Ha lf I n c. A n Eq ua l Op por t un it y Em p lo
Slide 35: Share Count Reduction as of Q1 2024
Q 1 2 0 2 4 I N VESTO R PR ESEN TATI O N Share Count Reduction as of Q1 2024 3 Years 5 Years 10 Years Share Count Reduction 8.1M 13.6M 31.8M Share Count Reduction as a 7.2% 11.5% 23.3% % of total shares outstanding 35 © 2 0 2 4 Ro be rt Ha lf I n c. A n Eq ua l Op por t un it y Em p lo y er M / F/ D
Slide 36: © 2 0 2 4 Ro be rt Ha lf I n c. A
36 © 2 0 2 4 Ro be rt Ha lf I n c. A n Eq ua l Op por t un it y Em p lo y er M / F/ D is abi l i t y / V et e ran s .