Q4 2024 Resources Connection Inc Earnings Call Transcript
Key Points
- Resources Connection Inc (RGP) exceeded the top end of their revenue and gross margin outlook for Q4.
- The company maintained a pristine balance sheet with no outstanding debt.
- Strong client engagement extensions and retention were noted, with new projects starting to convert more consistently.
- RGP is expanding its technology, digital, and data capabilities to meet evolving client needs.
- The acquisition of Reference Point is expected to expand RGP's portfolio of high-value advisory services in the financial services industry.
- Revenue declined by 20% on a same-day constant currency basis compared to the fourth quarter of the prior fiscal year.
- The macroeconomic environment remains choppy, impacting project starts and client spending.
- The company's growth pipeline softened towards the end of the fiscal year.
- Enterprise average bill rate decreased from $129 to $120 constant currency year over year.
- The first quarter outlook projects a revenue decline of around 20% year over year on a constant currency basis.
Good afternoon, ladies and gentlemen, and welcome to the Resources Connection Inc. conference call. (Operator Instructions) As a reminder, this conference call is being recorded.
At this time, I would like to remind everyone that management will be commenting on results for the fourth quarter ended May 25, 2024. They will also refer to certain non-GAAP financial measures. An explanation and reconciliation of these measures to the most comparable GAAP financial measures are included in the press release issued today. Today's press release can be viewed in the Investor Relations section of RGP's website and filed today with the SEC.
Also during this call, management may make forward-looking statements regarding plans, initiatives, and strategies and the anticipated financial performance of the company. Such statements are predictions, and actual events or results may differ materially.
Please see the Risk Factors section in RGP's report on Form 10-K for the year ended May 27, 2023, for a discussion of risks, uncertainties, and other factors that may cause the company's business,
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