Resources Connection Inc. (NASDAQ: RGP) reported cautious optimism looking ahead at this year as it reported results for its fiscal second quarter ended Nov. 25.
The company, which operates as RGP, reported second-quarter revenue fell 19.2% year over year to $200.4 million. The change was measured in constant currency and adjusted for billing days.
Difficult macroeconomic conditions weighed on revenue growth, RGP reported. Clients were more hesitant to spend on professional services, with client budgets on new projects taking longer to get approval. RGP’s billable hours fell by 15.1% in the second quarter, and the average bill rate slipped 5.5% in constant currency. However, the company said it continues work to extend engagement and land new business.
“Given our strong client retention and the depth of conversations we are having with our largest clients, we are cautiously optimistic that the buying environment and our own revenue growth will improve in calendar 2024,” CEO Kate Duchene said in a press release.
Second-quarter revenue was down across geographies with the biggest decline in North America. RGP also said the quarter included $2.3 million in employee termination benefits.
The company said it’s continuing to prepare for a recovery in economic conditions. Duchene said the company is expanding its consulting capabilities in digital transformation and technology services and building centers of excellence in India and the Philippines.
Click to enlarge.
Share price
Shares in RGP were down 1.9% to $13.43 as of 12:08 p.m. Eastern time today. They were 3.31% above their 52-week low.