NASDAQ$RGP

Resources Connection Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Resources Connection achieved strong financial results with the highest revenue in over a decade.

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%

Headline financials

Total Revenue

$217M

Previous: $172M+25.9%
EPS (adj)

$0.67

Previous: $0.80-16.3%
Consultant Headcount

3.4K

Previous: 2.9K+16.7%
Average Bill Rate

$131.00

Previous: $126.00+4.0%
Average Pay Rate

$64.00

Previous: $64.00+0.0%
Capital Expenditures

$342K

Previous: $997K-65.7%
Free Cash Flow

$26.4M

Previous: $3.58M+639.2%
Net Income

$20.5M

Previous: $23.2M-11.7%
Operating Income

$28.1M

Previous: $15.5M+82.1%
Gross Profit

$89.7M

Previous: $68.3M+31.3%
Cash & Equivalents

$104M

Previous: $74.4M+40.1%
Total Assets

$581M

Previous: $521M+11.7%
Stock-Based Comp

$2.32M

Previous: $1.67M+38.4%

Revenue & EPS history

Resources Connection · Revenue · Quarterly

$217M

Q4 2022+25.9%vs Q4 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • The possible impact on our business from the loss of the services of one or more key members of our senior management.
  • Risks related to potential significant increases in wages or payroll-related costs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

-2.0%

Avg return

Earnings day

-2.4%

Avg return

5 days after

-2.1%

Avg return

30 days after

44%

30 / 68 earnings

Positive

+17.6%

Q1 2022

Best reaction

-19.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.5%+7.1%+26.4%
Q2 2026-14.6%+3.8%-2.9%
Q1 2026-4.2%-14.1%-9.7%
Q4 2025+0.0%-1.3%-12.1%
Q3 2025-19.8%-23.1%-12.2%
Q2 2025+6.4%+4.0%-1.5%
Q1 2025-13.9%-13.7%-17.0%
Q4 2024+2.1%+0.6%-7.2%
Q3 2024-9.9%-5.2%-11.3%
Q2 2024-4.4%-6.7%-4.7%
Q1 2024-7.1%-2.8%-4.3%
Q4 2023+4.8%-0.8%-3.5%
Q3 2023-10.5%-8.1%-16.4%
Q2 2023-16.8%-8.1%-2.4%
Q1 2023-13.6%-12.9%-3.7%
Q4 2022+4.7%+6.8%-0.1%
Q3 2022+5.7%+4.0%-1.1%
Q2 2022+8.0%+2.0%-4.4%
Q1 2022+17.6%+9.5%+14.1%
Q4 2021+15.3%+19.5%+18.4%
Q3 2021+1.7%+2.5%+8.8%
Q2 2021-3.8%-6.3%-0.9%
Q1 2021-1.1%+3.0%-6.5%
Q4 2020-9.0%-5.7%+5.4%
Q3 2020-5.6%-0.2%+4.6%
Q2 2020+6.6%+1.0%-6.7%
Q1 2020-10.8%-15.5%-11.6%
Q4 2019+1.8%+2.8%+3.8%
Q3 2019-11.7%-5.6%+0.1%
Q2 2019+13.1%+15.0%+19.5%
Q1 2019+15.0%+11.1%-0.7%
Q4 2018-17.0%-11.4%-6.4%
Q3 2018-0.3%-2.2%-1.3%
Q2 2018-0.3%+5.4%+3.8%
Q1 2018+5.6%+4.2%+10.9%
Q4 2017-6.5%-8.6%-16.2%
Q3 2017-16.3%-17.5%-17.2%
Q2 2017-11.6%-12.9%-14.4%
Q1 2017-11.4%-10.4%-1.2%
Q4 2016-3.9%-3.8%-2.5%
Q3 2016-11.9%
Q2 2016-14.2%
Q1 2016+6.6%
Q4 2015-5.1%
Q3 2015-6.0%
Q2 2015+7.7%
Q1 2015+0.2%
Q4 2014+14.5%
Q3 2014-3.6%
Q2 2014+4.0%
Q1 2014-10.8%
Q4 2013-4.4%
Q3 2013-5.2%
Q2 2013-7.8%
Q1 2013+0.1%
Q4 2012+0.1%
Q3 2012-2.8%
Q2 2012-5.9%
Q1 2012+6.1%
Q4 2009+1.5%
Q4 2011+1.5%
Q3 2011-1.8%
Q3 2010-1.8%
Q2 2011+11.9%
Q4 2010+1.2%
Q2 2010+1.2%
Q1 2010+1.2%
Q1 2011+1.2%

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