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證券交易委員會
華盛頓特區20549
______________________

 表格 10-Q
______________________
 （標記一）
☒根據1934年證券交易法第13或15(d)節的季度報告
截至2022年1月31日的季度期2024年9月30日
或者
☐根據1934年證券交易法第13或15(d)節的轉型報告書
過渡期從 到 。
委員會文件號 1-10427
羅致恒富公司。
(根據其章程規定的註冊人準確名稱)
特拉華州 94-1648752
本州或其他司法管轄區
公司成立或組織）		 （IRS僱主
唯一識別號碼）
2884 Sand Hill Road 
200號
Menlo Park,加利福尼亞州94025
，（主要行政辦公地址） (郵政編碼)
公司電話號碼，包括區號：（650) 234-6000
根據證券法第12(b)條註冊的證券
每一類的名稱交易標誌在其上註冊的交易所的名稱
納斯達克證券交易所RHI請使用moomoo賬號登錄查看New York Stock Exchange
請在複選框中標識出注冊人是否（1）在過去12個月內（或該註冊人需要提交此類報告的較短期間）提交了根據1934年證券交易法第13或15(d)條規定提交的所有報告；以及（2）過去90天內是否受到了這種提交要求的影響。 是  ☒ 無☐
請用複選標記指示註冊者是否在過去12個月內(或註冊者需提交和發佈此類文件的較短期間)已電子遞交每份根據《S-t條例規定405條規定的互動數據文件併發帖(本章第232.405條)。是  ☒    否  ☐
請勾選標記以說明註冊人是大型快速申報人、加速申報人、非加速申報人、較小的報告公司還是新興成長型公司。請查看《交易所法》第120億.2條中「大型快速申報人」、「加速申報人」、「較小的報告公司」和「新興成長型公司」的定義。
大型加速報告人 ☒  加速文件申報人 ☐
非加速文件提交人 ☐更小的報告公司 
☐
新興成長公司
☐
如果公司無法符合證券交易法第13(a)條規定，使用延長過渡期來遵守任何新的或修訂的財務會計準則，請在複選框中指示。 ☐
請勾選以下內容。申報人是否是外殼公司（根據證券交易法規則12b-2定義）。    是  ☐    否  ☒
請於2024年9月30日指出每個發行人普通股類別的流通股數量:
103,250,884 每股面值$0.001的普通股


第一部分——財務信息

項目1 基本報表
羅致恒富公司。
Allstate股份有限公司及其子公司 資產負債表摘要(未經審計)
（以千爲單位，除股份數量外）

九月三十日
2024		十二月三十一日
2023
資產
現金和現金等價物$570,466 $731,740 
應收賬款，淨額885,401 860,872 
員工遞延薪酬信託資產667,509 571,046 
其他流動資產132,929 133,481 
流動資產總額2,256,305 2,297,139 
財產和設備，淨額119,588 108,809 
使用權資產205,009 209,256 
善意237,977 237,970 
非當期遞延所得稅150,003 140,135 
其他非流動資產13,343 17,480 
總資產$2,982,225 $3,010,789 
負債
應付賬款和應計費用$161,370 $156,662 
應計工資和福利成本404,417 413,933 
員工遞延薪酬計劃債務664,090 572,913 
應繳所得稅14,458 11,144 
當前的經營租賃負債 65,917 80,459 
流動負債總額1,310,252 1,235,111 
非流動經營租賃負債173,039 161,440 
其他非流動負債25,099 25,887 
負債總額1,508,390 1,422,438 
承付款和意外開支（注K）
股東權益
優先股，$0.001 面值；已授權 5,000,000 股份； 無 發行的
— — 
普通股，$0.001 面值；已授權 260,000,000 股份；已發行和流通 103,246,830 股票和 105,208,817 股份
103 105 
額外的實收資本1,402,817 1,354,703 
累計其他綜合虧損(33,461)(32,626)
留存收益104,376 266,169 
股東權益總額1,473,835 1,588,351 
負債和股東權益總額$2,982,225 $3,010,789 

附註列於簡明綜合財務報表（未經審計）中
屬於基本報表的組成部分。

2

羅致恒富公司。
簡要的綜合收入表（未經審計）
（以千爲單位，每股金額除外）

 三個月之內結束
2020年9月30日		九個月結束
2020年9月30日
 2024202320242023
服務收入$1,465,004 $1,563,812 $4,413,465 $4,919,625 
服務成本
893,348 922,873 2,702,333 2,928,785 
毛利率571,656 640,939 1,711,132 1,990,840 
銷售，總務及管理費用510,786 496,732 1,533,213 1,590,865 
(投資收益) -在僱員遞延薪酬信託中持有的投資損失（完全被相關成本和費用抵消-附註A）(29,230)14,275 (88,339)(41,363)
無形資產攤銷305 720 913 2,162 
利息收入，淨額(5,391)(7,131)(16,990)(17,276)
稅前收入95,186 136,343 282,335 456,452 
所得稅費用29,735 40,798 85,027 132,610 
淨收入$65,451 $95,545 $197,308 $323,842 
每股淨利潤：
基本$0.64 $0.91 $1.91 $3.06 
稀釋$0.64 $0.90 $1.91 $3.04 
加權平均股數：
基本102,175 105,340 103,034 105,950 
稀釋102,393 105,810 103,371 106,450 
每股分紅派息$0.53 $0.48 $1.59 $1.44 

附註列於簡明綜合財務報表（未經審計）中
屬於基本報表的組成部分。

3

羅致恒富公司。
簡明合併綜合收益（損失）表（未經審計）
（以千爲單位）
 三個月已結束
九月三十日		九個月已結束
九月三十日
 2024202320242023
綜合收益（虧損）：
淨收入$65,451 $95,545 $197,308 $323,842 
其他綜合收益（虧損）：
扣除稅款的外幣折算調整17,087 (13,442)(963)(6,476)
扣除稅款的外國固定福利計劃調整43 34 128 102 
其他綜合收益（虧損）總額17,130 (13,408)(835)(6,374)
綜合收益總額（虧損）$82,581 $82,137 $196,473 $317,468 

附註列於簡明綜合財務報表（未經審計）中
屬於基本報表的組成部分。

4

羅致恒富公司。
未經審計的凝聚的股東權益合併報表
（以千爲單位，每股金額除外）

普通股額外的實收資本累計其他綜合虧損留存收益總計
股票面值
截至2023年12月31日的餘額
105,209 $105 $1,354,703 $(32,626)$266,169 $1,588,351 
淨收入— — — — 63,701 63,701 
其他綜合收益（虧損）— — — (11,379)— (11,379)
申報的股息 ($)0.53 每股）
— — — — (56,382)(56,382)
限制性股票的淨髮行量751 1 (1)— — — 
基於股票的薪酬— — 16,777 — — 16,777 
回購普通股(1,028)(1)— — (81,822)(81,823)
截至 2024 年 3 月 31 日的餘額
104,932 $105 $1,371,479 $(44,005)$191,666 $1,519,245 
淨收入— — — — 68,156 68,156 
其他綜合收益（虧損）— — — (6,586)— (6,586)
申報的股息 ($)0.53 每股）
— — — — (55,407)(55,407)
限制性股票的淨髮行量27 — — — — — 
基於股票的薪酬— — 15,631 — — 15,631 
回購普通股(903)(1)— — (60,883)(60,884)
截至 2024 年 6 月 30 日的餘額104,056 $104 $1,387,110 $(50,591)$143,532 $1,480,155 
淨收入— — — — 65,451 65,451 
其他綜合收益（虧損）— — — 17,130 — 17,130 
申報的股息 ($)0.53 每股）
— — — — (54,760)(54,760)
限制性股票的淨髮行量(8)— — — — — 
基於股票的薪酬— — 15,707 — — 15,707 
回購普通股(801)(1)— — (49,847)(49,848)
截至 2024 年 9 月 30 日的餘額
103,247 $103 $1,402,817 $(33,461)$104,376 $1,473,835 


















The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)
are an integral part of these financial statements.

5

ROBERT HALF INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
(in thousands, except per share amounts)

Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive LossRetained EarningsTotal
SharesPar Value
Balance at December 31, 2022107,698 $108 $1,293,565 $(43,623)$318,508 $1,568,558 
Net income— — — — 122,005 122,005 
Other comprehensive income (loss)— — — 4,886 — 4,886 
Dividends declared ($0.48 per share)
— — — — (52,529)(52,529)
Net issuances of restricted stock831 1 (1)— — — 
Stock-based compensation— — 15,434 — — 15,434 
Repurchases of common stock(766)(1)— — (59,872)(59,873)
Balance at March 31, 2023107,763 $108 $1,308,998 $(38,737)$328,112 $1,598,481 
Net income— — — — 106,292 106,292 
Other comprehensive income (loss)— — — 2,148 — 2,148 
Dividends declared ($0.48 per share)
— — — — (51,565)(51,565)
Net issuances of restricted stock23 — — — — — 
Stock-based compensation— — 15,453 — — 15,453 
Repurchases of common stock(654)(1)— — (45,537)(45,538)
Balance at June 30, 2023107,132 $107 $1,324,451 $(36,589)$337,302 $1,625,271 
Net income— — — — 95,545 95,545 
Other comprehensive income (loss)— — — (13,408)— (13,408)
Dividends declared ($0.48 per share)
— — — — (51,228)(51,228)
Net issuances of restricted stock(10)— — — — — 
Stock-based compensation— — 15,233 — — 15,233 
Repurchases of common stock(1,227)(1)— — (91,441)(91,442)
Balance at September 30, 2023105,895 $106 $1,339,684 $(49,997)$290,178 $1,579,971 

The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)
are an integral part of these financial statements.

6

ROBERT HALF INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
 Nine Months Ended
September 30,
 20242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$197,308 $323,842 
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for credit losses2,481 7,812 
Depreciation38,713 37,963 
Amortization of cloud computing implementation costs27,537 25,202 
Amortization of intangible assets913 2,162 
Realized and unrealized gains from investments held in employee deferred
compensation trusts
(80,634)(35,207)
Stock-based compensation48,115 46,120 
Deferred income taxes(9,782)(8,941)
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable(25,946)66,585 
Capitalized cloud computing implementation costs(22,879)(28,479)
Accounts payable and accrued expenses5,266 (21,833)
Accrued payroll and benefit costs(9,869)(34,912)
Employee deferred compensation plan obligations91,177 44,749 
Income taxes payable(4,688)99,670 
Other assets and liabilities, net(2,076)(2,485)
Net cash flows provided by operating activities255,636 522,248 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures(42,012)(34,149)
Investments in employee deferred compensation trusts(50,220)(89,133)
Proceeds from employee deferred compensation trust redemptions34,391 33,231 
Payments for acquisition(264)(1,035)
Net cash flows used in investing activities(58,105)(91,086)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchases of common stock(195,548)(198,888)
Dividends paid(166,269)(155,242)
Net cash flows used in financing activities(361,817)(354,130)
Effect of exchange rate fluctuations3,012 (6,186)
Change in cash and cash equivalents(161,274)70,846 
Cash and cash equivalents at beginning of period731,740 658,626 
Cash and cash equivalents at end of period$570,466 $729,472 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Non-cash items:
Fund exchanges within employee deferred compensation trusts$72,190 $88,758 
Contingent consideration related to acquisition$— $350 
The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)
are an integral part of these financial statements.

7



ROBERT HALF INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
September 30, 2024

Note A—Summary of Significant Accounting Policies
Nature of Operations. Robert Half Inc. (the “Company”) is a specialized talent solutions and business consulting firm, connecting highly skilled job seekers with rewarding opportunities at great companies. Robert Half® offers contract talent solutions and permanent placement talent solutions for finance and accounting, technology, marketing and creative, legal, and administrative and customer support, and provides executive search services. Robert Half is also the parent company of Protiviti®, a global consulting firm that delivers internal audit, risk, business, and technology consulting solutions. The Company operates in North America, South America, Europe, Asia and Australia. The Company is a Delaware corporation.
Basis of Presentation. The unaudited Condensed Consolidated Financial Statements (“Financial Statements”) of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). The comparative year-end Condensed Consolidated Statement of Financial Position data presented was derived from audited financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) necessary for a fair statement of the financial position and results of operations for the periods presented have been included. These Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of the Company for the year ended December 31, 2023, included in its Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for a full year.
Principles of Consolidation. The Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. As of September 30, 2024, such estimates include allowances for credit losses, variable consideration, workers’ compensation losses, accrued medical expenses, income and other taxes, and assumptions used in the Company’s goodwill impairment assessment and in the valuation of stock grants subject to market conditions. Actual results and outcomes may differ from management’s estimates and assumptions.
Service Revenues. The Company derives its revenues from three segments: contract talent solutions, permanent placement talent solutions, and Protiviti. Revenues are recognized when promised goods or services are delivered to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. See Note C for further discussion of the revenue recognition accounting policy.
Costs of Services. Direct costs of contract talent solutions consist of payroll, payroll taxes, and benefit costs for the Company’s engagement professionals, as well as reimbursable expenses. Direct costs of permanent placement talent solutions consist of reimbursable expenses. Protiviti direct costs of services include professional staff payroll, payroll taxes and benefit costs, as well as reimbursable expenses.
Advertising Costs. The Company expenses all advertising costs as incurred. Advertising costs were $13.0 million and $40.8 million for the three and nine months ended September 30, 2024, respectively, and $13.4 million and $41.3 million for the three and nine months ended September 30, 2023, respectively.
(Income) Loss from Investments Held in Employee Deferred Compensation Trusts. Under the Company’s employee deferred compensation plans, employees direct the investment of their account balances, and the Company invests amounts held in the associated investment trusts consistent with these directions. As realized and unrealized investment gains and losses occur, the Company’s employee deferred compensation plan obligations change and adjustments are recorded in selling, general and administrative expenses or, in the case of Protiviti, costs of services. The value of the related investment trust assets also changes by an equal and offsetting amount, leaving no net cost to the Company. The Company’s (income) loss from investments held in employee deferred compensation trusts consists of unrealized and realized gains and losses, and dividend income from trust investments and is presented separately on the unaudited Condensed Consolidated Statements of Operations.

8




ROBERT HALF INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)
September 30, 2024
The following table presents the Company’s (income) loss from investments held in employee deferred compensation trusts (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Dividend income$(3,007)$(2,361)$(7,705)$(6,156)
Realized and unrealized (gains) losses(26,223)16,636 (80,634)(35,207)
(Income) loss from investments held in employee deferred compensation trusts (which is completely offset by related costs and expenses)$(29,230)$14,275 $(88,339)$(41,363)
The following table presents the Company’s increase (decrease) in employee deferred compensation costs and expense related to changes in the fair value of trust assets for its nonqualified employee deferred compensation plans (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Increase (decrease) in employee deferred compensation costs and expense related to changes in the fair value of trust assets$29,230 $(14,275)$88,339 $41,363 
Comprehensive Income (Loss).    Comprehensive income (loss) includes net income and certain other items that are recorded directly to stockholders’ equity. The Company’s only sources of other comprehensive income (loss) are foreign currency translation and foreign defined benefit plan adjustments.
Fair Value of Financial Instruments. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market to measure fair value, summarized as follows:
Level 1: Observable inputs for identical assets or liabilities, such as quoted prices in active markets
Level 2: Inputs other than the quoted prices in active markets that are observable either directly or indirectly
Level 3: Unobservable inputs in which there is little or no market data, which requires management’s best estimates and assumptions that market participants would use in pricing the asset or liability
The carrying value of cash, net accounts receivable, and accounts payable and accrued expenses approximates fair value because of their short-term nature. The Company holds mutual funds and money market funds to satisfy its obligations under its employee deferred compensation plans, which are carried at fair value based on quoted market prices in active markets for identical assets (level 1).

9




ROBERT HALF INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)
September 30, 2024
The following tables summarize the Company’s financial instruments by significant category and fair value measurement on a recurring basis (in thousands):
Fair Value Measurements Using
Balance at September 30, 2024
Quoted Prices
in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Cash equivalents
Money market funds$308,436 $308,436 — — 
Employee deferred compensation trust assets
Money market funds$126,542 $126,542 — — 
Mutual funds - bond39,692 39,692 — — 
Mutual funds - stock391,463 391,463 — — 
Mutual funds - blend109,812 109,812 — — 
Total employee deferred compensation trust assets$667,509 $667,509 — — 
Fair Value Measurements Using
Balance at December 31, 2023
Quoted Prices
in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Cash equivalents
Money market funds$351,230 $351,230 — — 
Employee deferred compensation trust assets
Money market funds$124,710 $124,710 — — 
Mutual funds - bond35,373 35,373 — — 
Mutual funds - stock316,764 316,764 — — 
Mutual funds - blend94,199 94,199 — — 
Total employee deferred compensation trust assets$571,046 $571,046 — — 

Certain items, such as goodwill and other intangible assets, are recognized or disclosed at fair value on a nonrecurring basis. The Company determines the fair value of these items using level 3 inputs. There are inherent limitations when estimating the fair value of financial instruments, and the fair values reported are not necessarily indicative of the amounts that would be realized in current market transactions.
Allowance for Credit Losses. The Company is exposed to credit losses resulting from the inability of its customers to make required payments. The Company establishes an allowance for these potential credit losses based on its review of customers’ credit profiles, historical loss statistics, prepayments, recoveries, age of customer receivable balances, current business conditions and macroeconomic trends. The Company considers risk characteristics of trade receivables based on asset type and geographical locations to evaluate trade receivables on a collective basis. The Company applies credit loss estimates to these pooled receivables to determine expected credit losses.

10




ROBERT HALF INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)
September 30, 2024
The following table sets forth the activity in the allowance for credit losses from December 31, 2023, through September 30, 2024 (in thousands):
Allowance for Credit Losses
Balance as of December 31, 2023
$25,189 
Charges to expense2,481 
Deductions(5,351)
Other, including foreign currency translation adjustments142 
Balance as of September 30, 2024
$22,461 
Note B—New Accounting Pronouncements

Recently Adopted Accounting Pronouncements
None.
Recently Issued Accounting Pronouncements Not Yet Adopted
Segment Reporting. In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in the ASU are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. This ASU is effective for public filers for fiscal periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024, however early adoption is permitted. The Company will first apply this amendment to its annual disclosures for the year ending December 31, 2024, and expects this amendment will result in additional disclosures to the Company’s segment financial information footnote. This amendment is not expected to have a material impact on the Company's consolidated financial statements.
Income Tax Disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Under this ASU, public filers must disclose annually (1) specific categories in the rate reconciliation, and (2) provide additional information for reconciling items that meet a quantitative threshold, if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income by the applicable statutory income tax rate. The new guidance is effective for public filers for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures.
Note C—Revenue Recognition
The Company derives its revenues from three segments: contract talent solutions, permanent placement talent solutions, and Protiviti. Revenues are recognized when promised goods or services are delivered to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Service revenues, as presented on the unaudited Condensed Consolidated Statements of Operations, represent services rendered to customers less variable consideration, such as sales adjustments and allowances. Reimbursements, including those related to travel and out-of-pocket expenses, are also included in service revenues, and equivalent amounts of reimbursable expenses are included in costs of services.
Contract talent solutions revenues. Contract talent solutions revenues from contracts with customers are recognized in the amount to which the Company has a right to invoice when the services are rendered by the Company’s engagement professionals. The substantial majority of engagement professionals placed on assignment by the Company are the Company’s legal employees while they are working on assignments. The Company pays all related costs of employment, including workers’ compensation insurance, state and federal unemployment taxes, social security, and certain fringe benefits. The Company assumes the risk of acceptability of its employees to its customers.

11




ROBERT HALF INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)
September 30, 2024
The Company records contract talent solutions revenue on a gross basis as a principal versus on a net basis as an agent in the presentation of revenues and expenses. The Company has concluded that gross reporting is appropriate because the Company (i) has the risk of identifying and hiring qualified employees, (ii) has the discretion to select the employees and establish their price and duties, and (iii) bears the risk for services that are not fully paid for by customers. Fees paid to time management or vendor management service providers selected by clients are recorded as a reduction of revenues, as the Company is not the primary obligor with respect to those services.
Permanent placement talent solutions revenues. Permanent placement talent solutions revenues from contracts with customers are primarily recognized when employment candidates accept offers of permanent employment. The Company has a substantial history of estimating the financial impact of permanent placement candidates who do not remain with its clients through the 90-day guarantee period. These amounts are established based primarily on historical data and are recorded as liabilities. Fees to clients are generally calculated as a percentage of the new employee’s annual compensation. No fees for permanent placement talent solutions services are charged to employment candidates.
Protiviti revenues. Protiviti’s consulting services are generally provided on a time-and-material basis or fixed-fee basis. Revenues earned under time-and-material arrangements and fixed-fee arrangements are recognized using a proportional performance method. Revenue is measured using cost incurred relative to total estimated cost for the engagement to measure progress towards satisfying the Company’s performance obligations. Cost incurred represents work performed and thereby best depicts the transfer of control to the customer. Protiviti’s consulting services generally contain one or more performance obligation(s) which are satisfied over a period of time. Revenues are recognized over time as the performance obligations are satisfied, because the services provided do not have any alternative use to the Company, and contracts generally include language giving the Company an enforceable right to payment for services provided to date.
The Company periodically evaluates the need to provide for any losses on these projects, and losses are recognized when it is probable that a loss will be incurred.
The following table presents the Company’s revenues disaggregated by functional specialization and segment (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Contract talent solutions
Finance and accounting$614,131 $676,588 $1,879,221 $2,175,812 
Administrative and customer support178,409 196,565 568,685 626,938 
Technology160,184 170,574 476,053 546,432 
Elimination of intersegment revenues (a)(122,321)(100,630)(351,601)(341,228)
Total contract talent solutions830,403 943,097 2,572,358 3,007,954 
Permanent placement talent solutions123,275 139,931 379,105 445,922 
Protiviti511,326 480,784 1,462,002 1,465,749 
Total service revenues$1,465,004 $1,563,812 $4,413,465 $4,919,625 
(a) Service revenues for finance and accounting, administrative and customer support, and technology include intersegment revenues, which represent revenues from services provided to the Company’s Protiviti segment in connection with the Company’s blended business solutions. Intersegment revenues for each functional specialization are aggregated and then eliminated as a single line.
Payment terms in the Company’s contracts vary by the type and location of the Company’s customer and the services offered. The term between invoicing and when payment is due is not significant.

12




ROBERT HALF INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)
September 30, 2024
Contracts with multiple performance obligations are recognized as performance obligations are delivered, and contract value is allocated based on relative stand-alone selling values of the services and products in the arrangement. As of September 30, 2024, aggregate transaction price allocated to the performance obligations that were unsatisfied for contracts with an expected duration of greater than one year was $187.0 million. Of this amount, $167.2 million is expected to be recognized within the next 12 months. As of September 30, 2023, aggregate transaction price allocated to the performance obligations that were unsatisfied for contracts with an expected duration of greater than one year was $150.2 million.
Contract liabilities are recorded when cash payments are received or due in advance of performance and are reflected in accounts payable and accrued expenses on the unaudited Condensed Consolidated Statements of Financial Position. The following table sets forth the activity in contract liabilities from December 31, 2023, through September 30, 2024 (in thousands):
Contract Liabilities
Balance as of December 31, 2023$24,574 
    Payments in advance of satisfaction of performance obligations28,922 
    Revenue recognized(35,768)
    Other, including translation adjustments115 
Balance as of September 30, 2024
$17,843 

Note D—Other Current Assets
Other current assets consisted of the following (in thousands):
September 30,
2024		December 31,
2023
Prepaid expenses$55,940 $67,999 
Unamortized cloud computing implementation costs29,504 31,049 
Other47,485 34,433 
Other current assets$132,929 $133,481 

Note E—Property and Equipment, Net
Property and equipment consisted of the following (in thousands):
September 30,
2024		December 31,
2023
Computer hardware$133,563 $150,165 
Computer software223,364 220,004 
Furniture and equipment96,917 99,547 
Leasehold improvements198,525 187,806 
Property and equipment, cost652,369 657,522 
Accumulated depreciation(532,781)(548,713)
Property and equipment, net$119,588 $108,809 


13




ROBERT HALF INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)
September 30, 2024
Note F—Other Noncurrent Assets
Other noncurrent assets consisted of the following (in thousands):
September 30,
2024		December 31,
2023
Unamortized cloud computing implementation costs$11,822 $15,047 
Other intangible assets, net1,521 2,433 
Other noncurrent assets$13,343 $17,480 
Note G—Leases
The Company has operating leases for corporate and field offices, and certain equipment. The Company’s leases have remaining lease terms of less than one year to 11 years, some of which include options to extend the leases for up to seven years, and some of which include options to terminate the leases within one year. Operating lease expense was $20.6 million and $62.9 million for the three and nine months ended September 30, 2024, respectively, and $22.2 million and $67.1 million for the three and nine months ended September 30, 2023, respectively.
Supplemental cash flow information related to leases consisted of the following (in thousands):
Nine Months Ended
September 30,
20242023
Cash paid for operating lease liabilities$71,637 $71,633 
Right-of-use assets obtained in exchange for new operating lease liabilities$62,043 $46,838 
Supplemental balance sheet information related to leases consisted of the following:
September 30,
2024		December 31,
2023
Weighted average remaining lease term for operating leases4.5 years4.3 years
Weighted average discount rate for operating leases3.7 %3.2 %
Future minimum lease payments under non-cancellable leases as of September 30, 2024, were as follows (in thousands):
2024 (excluding the nine months ended September 30, 2024)
$20,068 
202572,344 
202658,755 
202738,844 
202826,474 
Thereafter48,237 
Less: Imputed interest(25,766)
Present value of operating lease liabilities (a)$238,956 
(a) Includes the current portion of $65.9 million for operating leases.
As of September 30, 2024, the Company had additional future minimum lease obligations totaling $16.2 million under executed operating lease contracts that had not yet commenced. These operating leases include agreements for corporate and field office facilities with lease terms of one to 11 years.

14




ROBERT HALF INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)
September 30, 2024
Note H—Goodwill
The following table sets forth the activity in goodwill from December 31, 2023 through September 30, 2024 (in thousands):
Goodwill
  
Contract talent solutionsPermanent placement talent solutionsProtiviti  Total
Balance as of December 31, 2023
$134,287 $26,131 $77,552 $237,970 
Foreign currency translation adjustments82 16 (91)7 
Balance as of September 30, 2024
$134,369 $26,147 $77,461 $237,977 
Note I—Accrued Payroll and Benefit Costs
Accrued payroll and benefit costs consisted of the following (in thousands):
September 30,
2024		December 31,
2023
Payroll and benefits$377,101 $367,830 
Payroll taxes12,351 31,439 
Workers’ compensation14,965 14,664 
Accrued payroll and benefit costs$404,417 $413,933 
Note J—Employee Deferred Compensation Plan Obligations
The Company provides various qualified defined contribution 401(k) plans covering eligible employees. The plans offer a savings feature with the Company matching employee contributions. Assets of this plan are held by an independent trustee for the sole benefit of participating employees.
Nonqualified plans are provided for employees on a discretionary basis, including those not eligible for the qualified plans. These plans include provisions for salary deferrals and discretionary contributions. The asset value of the nonqualified plans was $667.5 million and $571.0 million as of September 30, 2024 and December 31, 2023, respectively. The Company holds these assets to satisfy the Company’s liabilities under its deferred compensation plans. The liability value for the nonqualified plans was $664.1 million and $572.9 million as of September 30, 2024 and December 31, 2023, respectively.
Contribution expenses for the Company’s qualified and nonqualified defined contribution plans were $11.8 million and $36.6 million for the three and nine months ended September 30, 2024, respectively, and $10.7 million and $33.5 million for the three and nine months ended September 30, 2023, respectively.
The Company has statutory defined contribution plans and defined benefit plans outside the United States of America, which are not material.
Note K—Commitments and Contingencies
On March 23, 2015, Plaintiff Jessica Gentry, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, San Francisco County, which was subsequently amended on October 23, 2015. The complaint alleges that a putative class of current and former employees of the Company working in California since March 13, 2010, were denied compensation for the time they spent interviewing “for temporary and permanent employment opportunities” as well as performing activities related to the interview process. Gentry seeks recovery on her own behalf and on behalf of the putative class in an unspecified amount for this allegedly unpaid compensation. Gentry also seeks recovery of an unspecified amount for the alleged failure of the Company to provide her and

15




ROBERT HALF INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)
September 30, 2024
the putative class with accurate wage statements. Gentry also seeks an unspecified amount of other damages, attorneys’ fees, and statutory penalties, including penalties for allegedly not paying all wages due upon separation to former employees and statutory penalties on behalf of herself and other allegedly “aggrieved employees” as defined by California’s Labor Code Private Attorneys General Act (“PAGA”). On January 4, 2016, the Court denied a motion by the Company to compel all of Gentry’s claims, except the PAGA claim, to individual arbitration. On March 8, 2024, the Court issued an order certifying: (1) a class of California-based temporary employees who attended at least one uncompensated interview with a third-party client at any time since March 13, 2010; (2) a subclass of class members who held a prior temporary job assignment before interviewing for a subsequent assignment; and (3) a subclass of class members who are no longer employed by the Company (i.e., a “waiting time penalties” subclass). At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding and, accordingly, no amounts have been provided in the Company’s Financial Statements. The Company believes it has meritorious defenses to the allegations and the Company intends to continue to vigorously defend against the litigation.
On April 6, 2018, Plaintiff Shari Dorff, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, County of Los Angeles. In addition to certain claims individual to Plaintiff Dorff, the complaint alleges that salaried recruiters based in California have been misclassified as exempt employees and seeks an unspecified amount for: unpaid wages resulting from such alleged misclassification; alleged failure to provide a reasonable opportunity to take meal periods and rest breaks; alleged failure to pay wages on a timely basis both during employment and upon separation; alleged failure to comply with California requirements regarding wage statements and record-keeping; and alleged improper denial of expense reimbursement. Plaintiff Dorff also seeks an unspecified amount of other damages, attorneys’ fees, and penalties, including but not limited to statutory penalties on behalf of herself and other allegedly “aggrieved employees” as defined by PAGA. At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding and, accordingly, no amounts have been provided in the Company’s Financial Statements. The Company believes it has meritorious defenses to the allegations and the Company intends to continue to vigorously defend against the litigation.
The Company is involved in a number of other lawsuits arising in the ordinary course of business. While management does not expect any of these other matters to have a material adverse effect on the Company’s results of operations, financial position or cash flows, litigation is subject to certain inherent uncertainties.
Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred.
The Company has an unsecured revolving credit facility (the “Credit Agreement”) of $100.0 million, which matures May 2026. Borrowings under the Credit Agreement will bear interest in accordance with the terms of the borrowing which will be calculated according to the adjusted term Secured Overnight Financing Rate (“SOFR”), or an alternative base rate, plus an applicable margin. The Credit Agreement is subject to certain financial covenants, and the Company was in compliance with these covenants as of September 30, 2024. There were no borrowings under the Credit Agreement as of September 30, 2024, or December 31, 2023.
Note L—Stockholders’ Equity
Stock Repurchase Program. As of September 30, 2024, the Company is authorized to repurchase, from time to time, up to 8.3 million additional shares of the Company’s common stock on the open market or in privately negotiated transactions, depending on market conditions. The number and the cost of common stock shares repurchased during the nine months ended September 30, 2024 and 2023, are reflected in the following table (in thousands):
 Nine Months Ended
September 30,
 20242023
Common stock repurchased (in shares)2,460 2,362 
Common stock repurchased$171,047 $175,005 

16




ROBERT HALF INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)
September 30, 2024
Additional stock repurchases were made in connection with employee stock plans, whereby Company shares were tendered by employees for the payment of applicable statutory withholding taxes. The number and the cost of employee stock plan repurchases made during the nine months ended September 30, 2024 and 2023, are reflected in the following table (in thousands):
 Nine Months Ended
September 30,
 20242023
Repurchases related to employee stock plans (in shares)272 285 
Repurchases related to employee stock plans$21,508 $21,848 
The repurchased shares are held in treasury and are presented as if constructively retired. Treasury stock is accounted for using the cost method. Treasury stock activity for the nine months ended September 30, 2024 and 2023, (consisting of purchases of shares for the treasury) is presented in the unaudited Condensed Consolidated Statements of Stockholders’ Equity.
Repurchases of shares and issuances of dividends are applied first to the extent of retained earnings and any remaining amounts are applied to additional paid-in capital.
Note M—Net Income Per Share
The calculation of net income per share for the three and nine months ended September 30, 2024 and 2023, is reflected in the following table (in thousands, except per share amounts):
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2024202320242023
Net income$65,451 $95,545 $197,308 $323,842 
Basic:
Weighted average shares
102,175 105,340 103,034 105,950 
Diluted:
Weighted average shares
102,175 105,340 103,034 105,950 
Dilutive effect of potential common shares218 470 337 500 
Diluted weighted average shares102,393 105,810 103,371 106,450 
Net income per share:
Basic$0.64 $0.91 $1.91 $3.06 
Diluted$0.64 $0.90 $1.91 $3.04 
 
Note N—Business Segments
The Company has three reportable segments: contract talent solutions, permanent placement talent solutions, and Protiviti. Operating segments are defined as components of the Company for which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. The contract talent solutions and permanent placement talent solutions segments provide specialized engagement professionals and full-time personnel, respectively, for finance and accounting, technology, marketing and creative, legal, administrative and customer support, and executive searches. The Protiviti segment provides internal audit, risk, business, and technology consulting solutions.
The accounting policies of the segments are set forth in Note A—“Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The Company evaluates performance based on income before intangible assets amortization expense, net interest income, and income taxes.

17




ROBERT HALF INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued)
September 30, 2024
The following table provides a reconciliation of service revenues and segment income by reportable segment to consolidated results for the three and nine months ended September 30, 2024 and 2023 (in thousands):
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2024202320242023
Service revenues
Contract talent solutions$830,403 $943,097 $2,572,358 $3,007,954 
Permanent placement talent solutions123,275 139,931 379,105 445,922 
Protiviti
511,326 480,784 1,462,002 1,465,749 
$1,465,004 $1,563,812 $4,413,465 $4,919,625 
Segment income
Contract talent solutions$25,844 $58,475 $114,108 $241,937 
Permanent placement talent solutions12,187 19,055 40,190 64,612 
Protiviti
52,069 52,402 111,960 134,789 
Combined segment income90,100 129,932 266,258 441,338 
Amortization of intangible assets305 720 913 2,162 
Interest income, net(5,391)(7,131)(16,990)(17,276)
Income before income taxes$95,186 $136,343 $282,335 $456,452 
Service revenues presented above are shown net of eliminations of intersegment revenues. Intersegment revenues between contract talent solutions segment and Protiviti segment were $122.3 million and $351.6 million for the three and nine months ended September 30, 2024, respectively, and $100.6 million and $341.2 million for the three and nine months ended September 30, 2023, respectively.
Revenue and direct costs related to the intersegment activity are reflected in the Protiviti segment, including the costs of candidate payroll, fringe benefits and incremental recruiter compensation.
Note O—Subsequent Events
On October 29, 2024, the Company announced the following:
Quarterly dividend per share$0.53
Declaration dateOctober 29, 2024
Record dateNovember 25, 2024
Payment dateDecember 13, 2024

18

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Certain information contained in Management’s Discussion and Analysis and in other parts of this report may be deemed forward-looking statements regarding events and financial trends that may affect the future operating results or financial positions of Robert Half Inc. (the “Company”). Forward-looking statements are not guarantees or promises that goals or targets will be met. These statements may be identified by words such as “anticipate,” “potential,” “estimate,” “forecast,” “target,” “project,” “plan,” “intend,” “believe,” “expect,” “should,” “could,” “would,” “may,” “might,” “will,” or variations or negatives thereof or by similar or comparable words or phrases. In addition, historical, current, and forward-looking information about the Company’s environmental, social, and governance (“ESG”) and compliance programs, including targets or goals, may not be considered material for the Securities and Exchange Commission (“SEC”) or other mandatory reporting purposes and may be based on standards for measuring progress that are still developing, on internal controls, diligence, or processes that are evolving, on representations reviewed or provided by third parties, and on assumptions that are subject to change in the future. Forward-looking statements are estimates only, based on management’s current expectations, currently available information and current strategy, plans, or forecasts, and involve certain known and unknown risks, uncertainties, and assumptions that are difficult to predict and often beyond our control and are inherently uncertain. Forward-looking statements are subject to risks and uncertainties that could cause actual results, outcomes, or the timing of these results or outcomes, to differ materially from those expressed or implied in the statements. These risks and uncertainties include, but are not limited to, the following: changes to or new interpretations of United States of America (“U.S.”) or international tax regulations; the global financial and economic situation; changes in levels of unemployment and other economic conditions in the U.S. or foreign countries where the Company does business, or in particular regions or industries; reduction in the supply of candidates for contract employment or the Company’s ability to attract candidates; the development, proliferation and adoption of artificial intelligence (“AI”) by the Company and the third parties it serves; the entry of new competitors into the marketplace or expansion by existing competitors; the ability of the Company to maintain existing client relationships and attract new clients in the context of changing economic or competitive conditions; the impact of competitive pressures, including any change in the demand for the Company’s services, on the Company’s ability to maintain its margins; the possibility of the Company incurring liability for its activities, including the activities of its engagement professionals, or for events impacting its engagement professionals on clients’ premises; the possibility that adverse publicity could impact the Company’s ability to attract and retain clients and candidates; the success of the Company in attracting, training, and retaining qualified management personnel and other staff employees; the Company’s ability to comply with governmental regulations affecting personnel services businesses in particular or employer/employee relationships in general; whether there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; the Company’s reliance on short-term contracts for a significant percentage of its business; litigation relating to prior or current transactions or activities, including litigation that may be disclosed from time to time in the Company’s SEC filings; the impact of extreme weather conditions on the Company and its candidates and clients; the ability of the Company to manage its international operations and comply with foreign laws and regulations; the impact of fluctuations in foreign currency exchange rates; the possibility that the additional costs the Company will incur as a result of health care or other reform legislation may adversely affect the Company’s profit margins or the demand for the Company’s services; the possibility that the Company’s computer and communications hardware and software systems could be damaged or their service interrupted or the Company could experience a cybersecurity breach; and the possibility that the Company may fail to maintain adequate financial and management controls, and as a result suffer errors in its financial reporting. Additionally, with respect to Protiviti, other risks and uncertainties include the fact that future success will depend on its ability to retain employees and attract clients; there can be no assurance that there will be ongoing demand for broad-based consulting, regulatory compliance, technology services, public sector or other high-demand advisory services; failure to produce projected revenues could adversely affect financial results; and there is the possibility of involvement in litigation relating to prior or current transactions or activities. Because long-term contracts are not a significant part of the Company’s business, future results cannot be reliably predicted by considering past trends or extrapolating past results. Except as required by law, the Company undertakes no obligation to update information in this report, whether as a result of new information, future events, or otherwise, and notwithstanding any historical practice of doing so.
Executive Overview
Revenue and net income results for the third quarter exceeded management’s expectations, driven by strong results from Protiviti, which posted sequential and year-on-year revenue gains. While client budgets remain constrained and decision cycles extended, business confidence levels are improving, aided by continuing progress on inflation and the beginning of a global rate-cutting cycle. Consistent with this trend, the Company’s recent weekly sequential results in contract talent have reflected increased stability.
During the first three quarters of 2024, service revenues were $4.41 billion, a decrease of 10.3% from the prior year. Net income was $197 million, and diluted net income per share was $1.91.

19

Demand for the Company’s contract talent solutions, permanent placement talent solutions, and Protiviti is largely dependent upon general economic and labor trends, both domestically and abroad. The U.S. real gross domestic product increased 2.8% during the first three quarters of 2024, while the unemployment rate increased from 3.7% for December 2023 to 4.1% at the end of the third quarter of 2024. Although sales cycles are still elongated, job openings remain significantly above historical averages, indicating substantial pent-up demand for talent. While the tightness of the labor supply has eased somewhat, the unemployment rate in the U.S. for those with a college degree is still only 2.3%, with rates for many in-demand accounting, finance and IT positions even lower. The Company is confident about its ability to weather the current global macroeconomic environment and its growth prospects as the macro landscape improves.
The Company continues to invest in technology and innovation to fuel its core business strategy. The Company’s proprietary “Recruiters plus award-winning AI” strategy offers significant added value to its clients.
The Company monitors various economic indicators and business trends in all of the countries in which it operates to anticipate demand for the Company’s services. These trends are evaluated to determine the appropriate level of investment, including personnel, which will best position the Company for success in the current and future global macroeconomic environment. The Company’s investments in headcount are typically structured to proactively support and align with expected revenue growth trends and productivity metrics. Visibility into future revenues is limited not only due to the dependence on macroeconomic and labor market conditions noted above, but also because of the relatively short duration of the Company’s client engagements. Accordingly, the Company’s headcount and other investments are typically assessed on at least a quarterly basis. During the first three quarters of 2024, the Company decreased headcount for its contract talent solutions and permanent placement talent solutions segments, when compared to prior year-end levels. In addition, the full-time headcount for Protiviti increased when compared to prior year-end levels.
Critical Accounting Policies and Estimates
The Company’s most critical accounting policies and estimates are those that involve subjective decisions or assessments and are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. There were no material changes to the Company’s critical accounting policies or estimates for the nine months ended September 30, 2024.
Recent Accounting Pronouncements
See Note B—“New Accounting Pronouncements” to the Company’s Condensed Consolidated Financial Statements included under Part I—Item 1 of this report.
Results of Operations
The Company analyzes its operating results for three reportable segments: contract talent solutions, permanent placement talent solutions, and Protiviti. The contract talent solutions and permanent placement talent solutions segments provide engagement professionals and full-time personnel, respectively, for finance and accounting, technology, marketing and creative, legal, administrative and customer support, and executive search. The Protiviti segment provides internal audit, risk, business, and technology consulting solutions.
Demand for the Company’s services is largely dependent upon general economic and labor trends both domestically and abroad. Because of the inherent difficulty in predicting economic trends, future demand for the Company’s services cannot be forecast with certainty.
The Company’s talent solutions segments conduct operations through offices in the U.S. and 17 other countries, while Protiviti has offices in the U.S. and 13 other countries.


20

Non-GAAP Financial Measures
The financial results of the Company are prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”) and the rules of the SEC. To help readers understand the Company’s financial performance, the Company supplements its GAAP financial results with the following non-GAAP measures: adjusted gross margin; adjusted selling, general and administrative expenses; combined segment income; and as adjusted revenue growth rates.
The following measures: adjusted gross margin and adjusted selling, general and administrative expenses, include gains and losses on investments held to fund the Company’s obligations under employee deferred compensation plans. The Company provides these measures because they are used by management to review its operational results.
Combined segment income is income before income taxes, adjusted for interest income and amortization of intangible assets. The Company provides combined segment income because it is how management evaluates performance.
As adjusted revenue growth rates represent year-over-year revenue growth rates after removing the impacts on reported revenues from the changes in the number of billing days and foreign currency exchange rates. The Company provides this data because it focuses on the Company’s revenue growth rates attributable to operating activities and aids in evaluating revenue trends over time. The impacts from the changes in billing days and foreign currency exchange rates are calculated as follows:
•Billing days impact is calculated by dividing each comparative period’s reported revenues by the number of billing days for that period to arrive at a per billing day amount. Same billing day growth rates are then calculated based on the per billing day amounts. Management calculates a global, weighted-average number of billing days for each reporting period based upon inputs from all countries and all functional specializations and segments.
•Foreign currency impact is calculated by retranslating current period international revenues using foreign currency exchange rates from the prior year’s comparable period.
The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies may calculate such financial results differently. The Company’s non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided on the following pages.
Refer to Item 3. “Quantitative and Qualitative Disclosures About Market Risk” for further discussion of the impact of foreign currency exchange rates on the Company’s results of operations and financial condition.
Three Months Ended September 30, 2024 and 2023
Service Revenues. The Company’s revenues were $1.47 billion for the three months ended September 30, 2024, a decrease of 6.3% compared to $1.56 billion for the three months ended September 30, 2023. Revenues from U.S. operations decreased 5.2% to $1.15 billion (78.2% of total revenue) for the three months ended September 30, 2024, compared to $1.21 billion (77.3% of total revenue) for the three months ended September 30, 2023. Revenues from international operations decreased 10.2% to $319 million (21.8% of total revenue) for the three months ended September 30, 2024, compared to $355 million (22.7% of total revenue) for the three months ended September 30, 2023. Contributing factors for each reportable segment are discussed below in further detail.
Contract talent solutions revenues were $831 million for the three months ended September 30, 2024, decreasing by 11.9% compared to revenues of $943 million for the three months ended September 30, 2023. Key drivers of contract talent solutions revenues include average hourly bill rates and the number of hours worked by the Company’s engagement professionals on client engagements. The decrease in contract talent solutions revenues for the three months ended September 30, 2024, was primarily due to a 12.8% decrease in the number of hours worked by the Company’s engagement professionals, partially offset by a 1.4% increase in average bill rates. On an as adjusted basis, contract talent solutions revenues decreased 13.2% for the third quarter of 2024, compared to the third quarter of 2023. In the U.S., revenues in the third quarter of 2024 decreased 12.4% on an as reported basis, and decreased 13.7% on an as adjusted basis, compared to the third quarter of 2023. International revenues for the third quarter of 2024 decreased 10.6% on an as reported basis, and decreased 11.7% on an as adjusted basis compared to the third quarter of 2023.

21

Permanent placement talent solutions revenues were $123 million for the three months ended September 30, 2024, decreasing by 11.9% compared to revenues of $140 million for the three months ended September 30, 2023. Key drivers of permanent placement talent solutions revenues consist of the number of candidate placements and average fees earned per placement. The decrease in permanent placement talent revenues for the three months ended September 30, 2024, was due to a 13.6% decrease in the number of placements, partially offset by a 1.7% increase in average fees earned per placement. On an as adjusted basis, permanent placement talent solutions revenues decreased 13.2% for the third quarter of 2024, compared to the third quarter of 2023. In the U.S., revenues for the third quarter of 2024 decreased 9.0% on an as reported basis, and decreased 10.4% on an as adjusted basis, compared to the third quarter of 2023. International revenues for the third quarter of 2024 decreased 18.6% on an as reported basis and decreased 19.8% on an as adjusted basis, compared to the third quarter of 2023. Historically, demand for permanent placement talent solutions is even more sensitive to economic and labor market conditions than demand for contract talent solutions, and this is expected to continue.
Protiviti revenues were $511 million for the three months ended September 30, 2024, increasing by 6.4% compared to revenues of $481 million for the three months ended September 30, 2023. Key drivers of Protiviti revenues are the billable hours worked by consultants on client engagements and average hourly bill rates. The increase in Protiviti revenues for the three months ended September 30, 2024, was due to a 4.4% increase in average hourly bill rates, and a 2.0% increase in billable hours. On an as adjusted basis, Protiviti revenues increased 4.5% for the third quarter of 2024, compared to the third quarter of 2023. In the U.S., revenues in the third quarter of 2024 increased 9.3% on an as reported basis, and increased 7.6% on an as adjusted basis, compared to the third quarter of 2023. International revenues for the third quarter of 2024 decreased 5.6% on an as reported basis and decreased 8.1% on an as adjusted basis, compared to the third quarter of 2023.
A reconciliation of the non-GAAP year-over-year revenue growth rates to the as reported year-over-year revenue growth rates for the three months ended September 30, 2024, is presented in the following table:
GlobalUnited StatesInternational
Contract talent solutions
As Reported-11.9 %-12.4 %-10.6 %
Billing Days Impact-1.4 %-1.3 %-1.6 %
Currency Impact0.1 %―0.5 %
As Adjusted-13.2 %-13.7 %-11.7 %
Permanent placement talent solutions
As Reported-11.9 %-9.0 %-18.6 %
Billing Days Impact-1.4 %-1.4 %-1.6 %
Currency Impact0.1 %―0.4 %
As Adjusted-13.2 %-10.4 %-19.8 %
Protiviti
As Reported6.4 %9.3 %-5.6 %
Billing Days Impact-1.7 %-1.7 %-1.7 %
Currency Impact-0.2 %―-0.8 %
As Adjusted4.5 %7.6 %-8.1 %
Gross Margin.    The Company’s gross margin dollars were $572 million for the three months ended September 30, 2024, down 10.8% from $641 million for the three months ended September 30, 2023. Contributing factors for each reportable segment are discussed below in further detail.
Gross margin dollars for contract talent solutions represent revenues less costs of services, which consist of payroll, payroll taxes and benefit costs for engagement professionals, and reimbursable expenses. The key drivers of gross margin are: i) pay-bill spreads, which represent the differential between wages paid to engagement professionals and amounts billed to clients; ii) fringe costs, which are primarily composed of payroll taxes and benefit costs; and iii) conversion revenues, which are earned when a contract position converts to a permanent position with the Company’s client.
Gross margin dollars for contract talent solutions were $323 million for the three months ended September 30, 2024, decreasing by 13.9% from $375 million for the three months ended September 30, 2023. As a percentage of revenues, gross margin dollars for contract talent solutions were 38.9% in the third quarter of 2024, down from 39.8% in the third quarter of 2023. The decrease in gross margin percentage was primarily due to higher fringe costs and lower pay-bill spreads.

22

Gross margin dollars for permanent placement talent solutions represent revenues less reimbursable expenses. Gross margin dollars for permanent placement talent solutions were $123 million for the three months ended September 30, 2024, down 11.9% from $140 million for the three months ended September 30, 2023. Because reimbursable expenses for permanent placement talent solutions are de minimis, the decrease in gross margin dollars is substantially explained by the decrease in revenues previously discussed.
Gross margin dollars for Protiviti represent revenues less costs of services, which consist primarily of professional staff payroll, payroll taxes, benefit costs, and reimbursable expenses. The primary drivers of Protiviti’s gross margin are: i) the relative composition of and number of professional staff and their respective pay and bill rates; and ii) staff utilization, which is the relationship of time spent on client engagements in proportion to the total time available for the Company’s Protiviti staff. Gross margin dollars for Protiviti were $126 million for both the three months ended September 30, 2024 and 2023. As a percentage of revenues, reported gross margin dollars for Protiviti were 24.6% in the third quarter of 2024, down from 26.2% in the third quarter of 2023. As a percentage of revenues, adjusted gross margin dollars for Protiviti were 25.8% in the third quarter of 2024, up from 25.6% in the third quarter of 2023.
The Company’s gross margin by reporting segment is summarized as follows (in thousands):
Three Months Ended September 30,Relationships
As ReportedAs AdjustedAs ReportedAs Adjusted
20242023202420232024202320242023
Gross Margin
Contract talent solutions
$323,035 $375,158 $323,035 $375,158 38.9 %39.8 %38.9 %39.8 %
Permanent placement talent solutions
123,004 139,681 123,004 139,681 99.8 %99.8 %99.8 %99.8 %
Protiviti
125,617 126,100 131,707 123,255 24.6 %26.2 %25.8 %25.6 %
Total$571,656 $640,939 $577,746 $638,094 39.0 %41.0 %39.4 %40.8 %
The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the three months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended September 30, 2024
Contract Talent SolutionsPermanent Placement Talent SolutionsProtivitiTotal
$% of Revenue$% of Revenue$% of Revenue$% of Revenue
Gross Margin
As Reported$323,035 38.9 %$123,004 99.8 %$125,617 24.6 %$571,656 39.0 %
Adjustments (1)— — — — 6,090 1.2 %6,090 0.4 %
As Adjusted$323,035 38.9 %$123,004 99.8 %$131,707 25.8 %$577,746 39.4 %
Three Months Ended September 30, 2023
Contract Talent SolutionsPermanent Placement Talent SolutionsProtivitiTotal
$% of Revenue$% of Revenue$% of Revenue$% of Revenue
Gross Margin
As Reported$375,158 39.8 %$139,681 99.8 %$126,100 26.2 %$640,939 41.0 %
Adjustments (1)— — — — (2,845)(0.6 %)(2,845)(0.2 %)
As Adjusted$375,158 39.8 %$139,681 99.8 %$123,255 25.6 %$638,094 40.8 %
(1)Changes in the Company’s deferred compensation obligations related to Protiviti operations are included in costs of services, while the related investment (income) loss is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment (income) loss from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes.

23

Selling, General and Administrative Expenses.    The Company’s selling, general and administrative expenses consist primarily of staff compensation, advertising, variable overhead, depreciation, and occupancy costs. The Company’s reported selling, general and administrative expenses were $511 million for the three months ended September 30, 2024, increasing by 2.8% from $497 million for the three months ended September 30, 2023. As a percentage of revenues, reported selling, general and administrative expenses were 34.9% in the third quarter of 2024, up from 31.8% in the third quarter of 2023. The Company’s adjusted selling, general and administrative expenses were $488 million for the three months ended September 30, 2024, down 4.0% from $508 million for the three months ended September 30, 2023. As a percentage of revenues, adjusted selling, general and administrative expenses were 33.3% in the third quarter of 2024, up from 32.5% in the third quarter of 2023. Contributing factors for each reportable segment are discussed below in further detail.
Selling, general and administrative expenses for contract talent solutions, on an as reported basis, were $318 million for the three months ended September 30, 2024, increasing by 3.7% from $307 million for the three months ended September 30, 2023. As a percentage of revenues, reported selling, general and administrative expenses for contract talent solutions were 38.3% in the third quarter of 2024, up from 32.5% in the third quarter of 2023. As a percentage of revenues, adjusted selling, general and administrative expenses for contract talent solutions were 35.8% in the third quarter of 2024, up from 33.6% in the third quarter of 2023, due primarily to negative leverage as revenues decreased as a result of economic conditions during the quarter.
Selling, general and administrative expenses for permanent placement talent solutions were $113 million for the three months ended September 30, 2024, decreasing by 5.0% from $119 million for the three months ended September 30, 2023. As a percentage of revenues, reported selling, general and administrative expenses for permanent placement talent solutions were 92.0% in the third quarter of 2024, up from 85.3% in the third quarter of 2023. As a percentage of revenues, adjusted selling, general and administrative expenses for permanent placement were 89.9% in the third quarter of 2024, up from 86.2% in the third quarter of 2023, due primarily to negative leverage as revenues decreased as a result of economic conditions during the quarter.
Selling, general and administrative expenses for Protiviti were $80 million for the three months ended September 30, 2024, increasing by 12.4% from $71 million for the three months ended September 30, 2023. As a percentage of revenues, selling, general and administrative expenses for Protiviti services were 15.6% in the third quarter of 2024, up from 14.7% in the third quarter of 2023, due primarily to restructuring charges incurred during the third quarter of 2024.
The Company’s selling, general and administrative expenses by reportable segment are summarized as follows (in thousands):
Three Months Ended September 30,Relationships
As ReportedAs AdjustedAs ReportedAs Adjusted
20242023202420232024202320242023
Selling, General and
  Administrative Expenses
Contract talent solutions
$317,727 $306,503 $297,191 $316,683 38.3 %32.5 %35.8 %33.6 %
Permanent placement talent solutions
113,421 119,376 110,817 120,626 92.0 %85.3 %89.9 %86.2 %
Protiviti
79,638 70,853 79,638 70,853 15.6 %14.7 %15.6 %14.7 %
Total$510,786 $496,732 $487,646 $508,162 34.9 %31.8 %33.3 %32.5 %
The following tables provide reconciliations of the non-GAAP selling, general and administrative expenses to reported selling, general and administrative expenses for the three months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended September 30, 2024
Contract Talent SolutionsPermanent Placement Talent SolutionsProtivitiTotal
$% of Revenue$% of Revenue$% of Revenue$% of Revenue
Selling, General and
  Administrative Expenses
As Reported$317,727 38.3 %$113,421 92.0 %$79,638 15.6 %$510,786 34.9 %
Adjustments (1)(20,536)(2.5 %)(2,604)(2.1 %)— — (23,140)(1.6 %)
As Adjusted$297,191 35.8 %$110,817 89.9 %$79,638 15.6 %$487,646 33.3 %

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Three Months Ended September 30, 2023
Contract Talent SolutionsPermanent Placement Talent SolutionsProtivitiTotal
$% of Revenue$% of Revenue$% of Revenue$% of Revenue
Selling, General and
  Administrative Expenses
As Reported$306,503 32.5 %$119,376 85.3 %$70,853 14.7 %$496,732 31.8 %
Adjustments (1)10,180 1.1 %1,250 0.9 %— — 11,430 0.7 %
As Adjusted$316,683 33.6 %$120,626 86.2 %$70,853 14.7 %$508,162 32.5 %
(1)Changes in the Company’s employee deferred compensation plan obligations related to talent solutions operations are included in selling, general and administrative expenses, while the related investment (income) loss is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment (income) loss from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes.
(Income) Loss from Investments Held in Employee Deferred Compensation Trusts. Under the Company’s employee deferred compensation plans, employees direct the investment of their account balances, and the Company invests amounts held in the associated investment trusts consistent with these directions. As realized and unrealized investment gains and losses occur, the Company’s employee deferred compensation plan obligations change and adjustments are recorded in selling, general and administrative expenses, or in the case of Protiviti, costs of services. This incremental expense is completely offset by investment income related to the employee deferred compensation trust. The value of the related investment trust assets also changes by the equal and offsetting amount, leaving no net costs to the Company. The Company’s (income) loss from investments held in employee deferred compensation trusts consists primarily of unrealized and realized gains and losses, and dividend income from trust investments and is presented separately on the unaudited Condensed Consolidated Statements of Operations. The Company’s (income) loss from investments held in employee deferred compensation trusts was income of $29 million and a loss of $14 million for the three months ended September 30, 2024 and 2023, respectively. The income from trust investments during the third quarter of 2024 was due to positive market returns.
Income Before Income Taxes and Segment Income. The Company’s total income before income taxes was $95 million, or 6.5% of revenues, for the three months ended September 30, 2024, down from $136 million, or 8.7% of revenues, for the three months ended September 30, 2023. Combined segment income was $90 million, or 6.2% of revenues, for the three months ended September 30, 2024, down from $130 million, or 8.3% of revenues, for the three months ended September 30, 2023.
The Company’s non-GAAP combined segment income is summarized as follows (in thousands):
 Three Months Ended September 30,
 2024% of Revenue2023% of Revenue
Combined Segment Income
Contract talent solutions$25,844 3.1 %$58,475 6.2 %
Permanent placement talent solutions12,187 9.9 %19,055 13.6 %
Protiviti52,069 10.2 %52,402 10.9 %
Total$90,100 6.2 %$129,932 8.3 %
The following table provides a reconciliation of the non-GAAP combined segment income to reported income before income taxes for the three months ended September 30, 2024 and 2023 (in thousands):
 Three Months Ended September 30,
 2024% of Revenue2023% of Revenue
Income before income taxes$95,186 6.5 %$136,343 8.7 %
Interest income, net(5,391)(0.3 %)(7,131)(0.4 %)
Amortization of intangible assets305 0.0 %720 0.0 %
Combined segment income$90,100 6.2 %$129,932 8.3 %

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Provision for income taxes. The provision for income taxes was 31.2% and 29.9% for the three months ended September 30, 2024 and 2023, respectively. The higher tax rate for 2024 can primarily be attributed to the impact of nondeductible expenses.
In 2021, the Organization for Economic Co-operation and Development established an inclusive framework on base erosion and profit shifting and agreed on a two-pillar solution (“Pillar Two”) to global taxation, focusing on global profit allocation and a 15% global minimum effective tax rate. The Company continues to monitor developments and evaluate any potential tax impacts from Pillar Two. There were no material impacts for the three months ended September 30, 2024, nor are any expected throughout the remainder of 2024.
Nine Months Ended September 30, 2024 and 2023
Service Revenues. The Company’s revenues were $4.41 billion for the nine months ended September 30, 2024, a decrease of 10.3% compared to $4.92 billion for the nine months ended September 30, 2023. Revenues from U.S. operations decreased 10.0% to $3.44 billion (77.9% of total revenue) for the nine months ended September 30, 2024, compared to $3.82 billion (77.7% of total revenue) for the nine months ended September 30, 2023. Revenues from international operations decreased 11.1% to $976 million (22.1% of total revenue) for the nine months ended September 30, 2024, compared to $1.10 billion (22.3% of total revenue) for the nine months ended September 30, 2023. Contributing factors for each reportable segment are discussed below in further detail.
Contract talent solutions revenues were $2.57 billion for the nine months ended September 30, 2024, decreasing by 14.5% compared to revenues of $3.01 billion for the nine months ended September 30, 2023. Key drivers of contract talent solutions revenues include average hourly bill rates and the number of hours worked by the Company’s engagement professionals on client engagements. The decrease in contract talent solutions revenues for the nine months ended September 30, 2024, was primarily due to a 15.3% decrease in the number of hours worked by the Company’s engagement professionals, partially offset by a 1.6% increase in average bill rates. On an as adjusted basis, contract talent solutions revenues in the first three quarters of 2024 decreased 14.7% compared to the first three quarters of 2023. In the U.S., revenues in the first three quarters of 2024 decreased 15.9% on an as reported basis, and decreased 16.2% on an as adjusted basis, compared to the first three quarters of 2023. International revenues for the first three quarters of 2024 decreased 9.6% on an as reported basis, and decreased 9.5% on an as adjusted basis, compared to the first three quarters of 2023.
Permanent placement talent solutions revenues were $379 million for the nine months ended September 30, 2024, decreasing by 15.0% compared to revenues of $446 million for the nine months ended September 30, 2023. Key drivers of permanent placement talent solutions revenues consist of the number of candidate placements and average fees earned per placement. The decrease in permanent placement staffing revenues for the nine months ended September 30, 2024, was due to an 18.0% decrease in the number of placements, partially offset by a 3.0% increase in average fees earned per placement. On an as adjusted basis, permanent placement talent solutions revenues decreased 15.1% for the first three quarters of 2024, compared to the first three quarters of 2023. In the U.S., revenues for the first three quarters of 2024 decreased 13.5% on an as reported basis, and decreased 13.8% on an as adjusted basis, compared to the first three quarters of 2023. International revenues for the first three quarters of 2024 decreased 18.6% on an as reported basis, and decreased 18.4% on an as adjusted basis, compared to the first three quarters of 2023. Historically, demand for permanent placement talent solutions is even more sensitive to economic and labor market conditions than demand for contract talent solutions and this is expected to continue.
Protiviti revenues were $1.46 billion for the nine months ended September 30, 2024, decreasing by 0.3% compared to revenues of $1.47 billion for the nine months ended September 30, 2023. Key drivers of Protiviti revenues are the billable hours worked by consultants on client engagements and average hourly bill rates. The decrease in Protiviti revenues for the nine months ended September 30, 2024, was due to a 3.0% decrease in billable hours, partially offset by a 2.7% increase in average hourly bill rates. On an as adjusted basis, Protiviti revenues decreased 0.6% for the first three quarters of 2024, compared to the first three quarters of 2023. In the U.S., revenues in the first three quarters of 2024 increased 2.5% on an as reported basis, and increased 2.1% on an as adjusted basis, compared to the first three quarters of 2023. International revenues in the first three quarters of 2024 decreased 11.2% on an as reported basis, and decreased 11.5% on an as adjusted basis, compared to the first three quarters of 2023.


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A reconciliation of the non-GAAP year-over-year revenue growth rates to the as reported year-over-year revenue growth rates for the nine months ended September 30, 2024, is presented in the following table:
GlobalUnited StatesInternational
Contract talent solutions
As Reported-14.5 %-15.9 %-9.6 %
Billing Days Impact-0.3 %-0.3 %-0.4 %
Currency Impact0.1 %―0.5 %
As Adjusted-14.7 %-16.2 %-9.5 %
Permanent placement talent solutions
As Reported-15.0 %-13.5 %-18.6 %
Billing Days Impact-0.3 %-0.3 %-0.4 %
Currency Impact0.2 %―0.6 %
As Adjusted-15.1 %-13.8 %-18.4 %
Protiviti
As Reported-0.3 %2.5 %-11.2 %
Billing Days Impact-0.3 %-0.4 %-0.4 %
Currency Impact0.0 % ― 0.1 %
As Adjusted-0.6 %2.1 %-11.5 %
Gross Margin.    The Company’s gross margin dollars were $1.71 billion for the nine months ended September 30, 2024, down 14.0% from $1.99 billion for the nine months ended September 30, 2023. Contributing factors for each reportable segment are discussed below in further detail.
Gross margin dollars for contract talent solutions represent revenues less costs of services, which consist of payroll, payroll taxes and benefit costs for engagement professionals, and reimbursable expenses. The key drivers of gross margin are: i) pay-bill spreads, which represent the differential between wages paid to engagement professionals and amounts billed to clients; ii) fringe costs, which are primarily composed of payroll taxes and benefit costs; and iii) conversion revenues, which are earned when a contract position converts to a permanent position with the Company’s client.
Gross margin dollars for contract talent solutions were $1.01 billion for the nine months ended September 30, 2024, down 15.7% from $1.20 billion for the nine months ended September 30, 2023. As a percentage of revenues, gross margin dollars for contract talent solutions were 39.3% in the first three quarters of 2024, down from 39.8% in the first three quarters of 2023. The decrease in gross margin percentage was primarily due to higher fringe costs and lower pay-bill spreads.
Gross margin dollars for permanent placement talent solutions represent revenues less reimbursable expenses. Gross margin dollars for permanent placement talent solutions were $378 million for the nine months ended September 30, 2024, down 15.0% from $445 million for the nine months ended September 30, 2023. Because reimbursable expenses for permanent placement talent solutions are de minimis, the decrease in gross margin dollars is substantially explained by the decrease in revenues previously discussed.
Gross margin dollars for Protiviti represent revenues less costs of services, which consist primarily of professional staff payroll, payroll taxes, benefit costs, and reimbursable expenses. The primary drivers of Protiviti’s gross margin are: i) the relative composition of and number of professional staff and their respective pay and bill rates; and ii) staff utilization, which is the relationship of time spent on client engagements in proportion to the total time available for the Company’s Protiviti staff. Gross margin dollars for Protiviti were $323 million for the nine months ended September 30, 2024, down 7.3% from $348 million for the nine months ended September 30, 2023. As a percentage of revenues, reported gross margin dollars for Protiviti were 22.1% in the first three quarters of 2024, down from 23.8% in the first three quarters of 2023. As a percentage of revenues, adjusted gross margin dollars for Protiviti were 23.3% in the first three quarters of 2024, down from 24.3% in the first three quarters of 2023. The year-over-year decrease in adjusted gross margin percentage was primarily due to the relative composition of and number of professional staff and their respective pay and bill rates

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The Company’s gross margin by reportable segment are summarized as follows: (in thousands):
Nine Months Ended September 30,Relationships
As ReportedAs AdjustedAs ReportedAs Adjusted
20242023202420232024202320242023
Gross Margin
Contract talent solutions
$1,009,766 $1,197,419 $1,009,766 $1,197,419 39.3 %39.8 %39.3 %39.8 %
Permanent placement talent solutions
378,353 445,051 378,353 445,051 99.8 %99.8 %99.8 %99.8 %
Protiviti
323,013 348,370 340,690 355,621 22.1 %23.8 %23.3 %24.3 %
Total$1,711,132 $1,990,840 $1,728,809 $1,998,091 38.8 %40.5 %39.2 %40.6 %
The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the nine months ended September 30, 2024 and 2023 (in thousands):
Nine Months Ended September 30, 2024
Contract Talent SolutionsPermanent Placement Talent SolutionsProtivitiTotal
$% of Revenue$% of Revenue$% of Revenue$% of Revenue
Gross Margin
As Reported$1,009,766 39.3 %$378,353 99.8 %$323,013 22.1 %$1,711,132 38.8 %
Adjustments (1)— — — — 17,677 1.2 %17,677 0.4 %
As Adjusted$1,009,766 39.3 %$378,353 99.8 %$340,690 23.3 %$1,728,809 39.2 %
Nine Months Ended September 30, 2023
Contract Talent SolutionsPermanent Placement Talent SolutionsProtivitiTotal
$% of Revenue$% of Revenue$% of Revenue$% of Revenue
Gross Margin
As Reported$1,197,419 39.8 %$445,051 99.8 %$348,370 23.8 %$1,990,840 40.5 %
Adjustments (1)— — — — 7,251 0.5 %7,251 0.1 %
As Adjusted$1,197,419 39.8 %$445,051 99.8 %$355,621 24.3 %$1,998,091 40.6 %
(1)Changes in the Company’s deferred compensation obligations related to Protiviti operations are included in costs of services, while the related investment income is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment income from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes.
Selling, General and Administrative Expenses.    The Company’s selling, general and administrative expenses consist primarily of staff compensation, advertising, variable overhead, depreciation, and occupancy costs. The Company’s reported selling, general and administrative expenses were $1.53 billion for the nine months ended September 30, 2024, down 3.6% from $1.59 billion for the nine months ended September 30, 2023. As a percentage of revenues, reported selling, general and administrative expenses were 34.7% in the first three quarters of 2024, up from 32.3% in the first three quarters of 2023. The Company’s adjusted selling, general and administrative expenses were $1.46 billion for the nine months ended September 30, 2024, down 6.1% from $1.56 billion for the nine months ended September 30, 2023. As a percentage of revenues, adjusted selling, general and administrative expenses were 33.1% in the first three quarters of 2024, up from 31.6% in the first three quarters of 2023. Contributing factors for each reportable segment are discussed below in further detail.
Selling, general and administrative expenses for contract talent solutions, on an as-reported basis, were $958 million for the nine months ended September 30, 2024, decreasing by 2.8% from $986 million for the nine months ended September 30, 2023. As a percentage of revenues, reported selling, general and administrative expenses for contract talent solutions were 37.2% in the first three quarters of 2024, up from 32.8% in the first three quarters of 2023. Selling, general and administrative expenses for contract talent solutions, on an adjusted basis, were $896 million for the nine months ended September 30, 2024, down 6.3% from $955 million for the nine months ended September 30, 2023. As a percentage of revenues, adjusted selling, general and administrative expenses for contract talent solutions were 34.8% in the first three quarters of 2024, up from 31.8% in the first three quarters of 2023, due primarily to negative leverage as revenues decreased as a result of economic conditions.

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Selling, general and administrative expenses for permanent placement talent solutions were $346 million for the nine months ended September 30, 2024, decreasing by 9.8% from $384 million for the nine months ended September 30, 2023. As a percentage of revenues, reported selling, general and administrative expenses for permanent placement talent solutions were 91.3% in the first three quarters of 2024, up from 86.1% in the first three quarters of 2023. As a percentage of revenues, adjusted selling, general and administrative expenses for permanent placement talent solutions were 89.2% in the first three quarters of 2024, up from 85.3% in the first three quarters of 2023, due primarily to negative leverage as revenues decreased as a result of economic conditions.
Selling, general and administrative expenses for Protiviti were $229 million for the nine months ended September 30, 2024, increasing by 3.6% from $221 million for the nine months ended September 30, 2023. As a percentage of revenues, selling, general and administrative expenses for Protiviti were 15.6% in the first three quarters of 2024, up from 15.1% in the first three quarters of 2023.
The Company’s selling, general and administrative expenses by reportable segment are summarized as follows (in thousands):
Nine Months Ended September 30,Relationships
As ReportedAs AdjustedAs ReportedAs Adjusted
20242023202420232024202320242023
Selling, General and
  Administrative Expenses
Contract talent solutions
$958,201 $985,967 $895,658 $955,482 37.2 %32.8 %34.8 %31.8 %
Permanent placement talent solutions
346,282 384,066 338,163 380,439 91.3 %86.1 %89.2 %85.3 %
Protiviti
228,730 220,832 228,730 220,832 15.6 %15.1 %15.6 %15.1 %
Total$1,533,213 $1,590,865 $1,462,551 $1,556,753 34.7 %32.3 %33.1 %31.6 %
The following tables provide reconciliations of the non-GAAP selling, general and administrative expenses to reported selling, general and administrative expenses for the nine months ended September 30, 2024 and 2023 (in thousands):
Nine Months Ended September 30, 2024
Contract Talent SolutionsPermanent Placement Talent SolutionsProtivitiTotal
$% of Revenue$% of Revenue$% of Revenue$% of Revenue
Selling, General and
  Administrative Expenses
As Reported$958,201 37.2 %$346,282 91.3 %$228,730 15.6 %$1,533,213 34.7 %
Adjustments (1)(62,543)(2.4 %)(8,119)(2.1 %)— — (70,662)(1.6 %)
As Adjusted$895,658 34.8 %$338,163 89.2 %$228,730 15.6 %$1,462,551 33.1 %
Nine Months Ended September 30, 2023
Contract Talent SolutionsPermanent Placement Talent SolutionsProtivitiTotal
$% of Revenue$% of Revenue$% of Revenue$% of Revenue
Selling, General and
  Administrative Expenses
As Reported$985,967 32.8 %$384,066 86.1 %$220,832 15.1 %$1,590,865 32.3 %
Adjustments (1)(30,485)(1.0 %)(3,627)(0.8 %)— — (34,112)(0.7 %)
As Adjusted$955,482 31.8 %$380,439 85.3 %$220,832 15.1 %$1,556,753 31.6 %
(1)Changes in the Company’s employee deferred compensation plan obligations related to talent solutions operations are included in selling, general and administrative expenses, while the related investment income is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment income from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes.

29

(Income) Loss from Investments Held in Employee Deferred Compensation Trusts. Under the Company’s employee deferred compensation plans, employees direct the investment of their account balances, and the Company invests amounts held in the associated investment trusts consistent with these directions. As realized and unrealized investment gains and losses occur, the Company’s employee deferred compensation plan obligations change and adjustments are recorded in selling, general and administrative expenses, or in the case of Protiviti, costs of services. The value of the related investment trust assets also changes by the equal and offsetting amount, leaving no net costs to the Company. The Company’s income from investments held in employee deferred compensation trusts consists primarily of unrealized and realized gains and losses, and dividend income from trust investments and is presented separately on the unaudited Condensed Consolidated Statements of Operations. The Company’s income from investments held in employee deferred compensation trusts was $88 million and $41 million for the nine months ended September 30, 2024 and 2023, respectively. The income from trust investments was due to positive market returns during the first three quarters of 2024.
Income Before Income Taxes and Segment Income. The Company’s total income before income taxes was $282 million, or 6.4% of revenues, for the nine months ended September 30, 2024, down from $456 million, or 9.3% of revenues, for the nine months ended September 30, 2023. Combined segment income was $266 million, or 6.0% of revenues, for the nine months ended September 30, 2024, down from $441 million, or 9.0% of revenues, for the nine months ended September 30, 2023.
The Company’s non-GAAP combined segment income is summarized as follows (in thousands):
 Nine Months Ended September 30,
 2024% of Revenue2023% of Revenue
Combined Segment Income
Contract talent solutions$114,108 4.4 %$241,937 8.0 %
Permanent placement talent solutions40,190 10.6 %64,612 14.5 %
Protiviti111,960 7.7 %134,789 9.2 %
Total$266,258 6.0 %$441,338 9.0 %
The following table provides a reconciliation of the non-GAAP combined segment income to reported income before income taxes for the nine months ended September 30, 2024, and 2023 (in thousands):
 Nine Months Ended September 30,
2024% of Revenue2023% of Revenue
Income before income taxes$282,335 6.4 %$456,452 9.3 %
Interest income, net(16,990)(0.4 %)(17,276)(0.3)%
Amortization of intangible assets913 0.0 %2,162 0.0 %
Combined segment income$266,258 6.0 %$441,338 9.0 %
Provision for income taxes. The provision for income taxes was 30.1% and 29.1% for the nine months ended September 30, 2024 and 2023, respectively. The higher tax rate for 2024 can primarily be attributed to the impact of nondeductible expenses.
Liquidity and Capital Resources
The change in the Company’s liquidity during the nine months ended September 30, 2024 and 2023, is primarily the net effect of funds generated by operations and the funds used for capital expenditures, investment in employee deferred compensation trusts, net of redemptions from employee deferred compensation trusts, repurchases of common stock, and payment of dividends.
Cash and cash equivalents were $570 million and $729 million at September 30, 2024 and 2023, respectively. Operating activities provided cash flows of $255 million during the nine months ended September 30, 2024, partially offset by $58 million and $362 million of net cash used in investing activities and financing activities, respectively. Operating activities provided cash flows of $522 million during the nine months ended September 30, 2023, offset by $91 million and $354 million of net cash used in investing activities and financing activities, respectively. Fluctuations in foreign currency exchange rates had the effect of increasing reported cash and cash equivalents by $3 million during the nine months ended September 30, 2024, compared to a decrease of $6 million during the nine months ended September 30, 2023.

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Operating activities—Net cash provided by operating activities for the nine months ended September 30, 2024, was composed of net income of $197 million adjusted upward for non-cash items of $27 million and net cash provided by changes in working capital of $31 million. Net cash provided by operating activities for the nine months ended September 30, 2023, was composed of net income of $324 million adjusted upward for non-cash items of $75 million and net cash provided by changes in working capital of $123 million.
Investing activities—Cash used in investing activities for the nine months ended September 30, 2024, was $58 million. This was composed of capital expenditures of $42 million and investments in employee deferred compensation trusts of $50 million, partially offset by proceeds from employee deferred compensation trust redemptions of $34 million. Cash used in investing activities for the nine months ended September 30, 2023, was $91 million. This was composed of capital expenditures of $34 million, investments in employee deferred compensation trusts of $89 million, and $1 million in payments related to an acquisition, partially offset by proceeds from employee deferred compensation trust redemptions of $33 million.
Capital expenditures, including $23 million for cloud computing arrangements, for the nine months ended September 30, 2024, totaled $65 million, approximately 58% of which represented investments in software initiatives and technology infrastructure, both of which are important to the Company’s sustainability and future growth opportunities. Capital expenditures for cloud computing arrangements are included in cash flows from operating activities on the Company’s Condensed Consolidated Statements of Cash Flows. Capital expenditures included amounts spent on tenant improvements and furniture and equipment in the Company’s leased offices. The Company currently expects that 2024 capital expenditures will range from $80 million to $90 million, of which $45 million to $55 million relates to software initiatives and technology infrastructure, including capitalized costs related to implementation of cloud computing arrangements.
Financing activities—Cash used in financing activities for the nine months ended September 30, 2024, was $362 million. This included repurchases of $196 million in common stock and $166 million in dividends paid to stockholders. Cash used in financing activities for the nine months ended September 30, 2023, was $354 million. This included repurchases of $199 million in common stock and $155 million in dividends paid to stockholders.
As of September 30, 2024, the Company is authorized to repurchase, from time to time, up to 8.3 million additional shares of the Company’s common stock on the open market or in privately negotiated transactions, depending on market conditions. During the nine months ended September 30, 2024 and 2023, the Company repurchased 2.5 million shares, at a cost of $171 million, and 2.4 million shares, at a cost of $175 million, on the open market, respectively. Additional stock repurchases were made in connection with employee stock plans, whereby Company shares were tendered by employees for the payment of exercise price and applicable statutory withholding taxes. During the nine months ended September 30, 2024 and 2023, such repurchases totaled 0.3 million shares, at a cost of $22 million, and 0.3 million shares, at a cost of $22 million, respectively. Repurchases of shares have been funded with cash generated from operations.
The Company’s working capital at September 30, 2024, included $570 million in cash and cash equivalents, and $885 million in net accounts receivable, both of which will be a significant source of ongoing liquidity and financial resilience. The Company expects that internally generated cash will be sufficient to support the working capital needs of the Company, the Company’s fixed payments, dividends, and other obligations on both a short-term and long-term basis.
There is limited visibility into future cash flows as the Company’s revenues and net income are largely dependent on macroeconomic conditions. The Company’s variable direct costs related to its contract talent solutions business will largely fluctuate in relation to its revenues.
The Company has an unsecured revolving credit facility (the “Credit Agreement”) of $100.0 million, which matures in May 2026. Borrowings under the Credit Agreement will bear interest in accordance with the terms of the borrowing and will be calculated according to the adjusted term Secured Overnight Financing Rate (“SOFR”), or an alternative base rate, plus an applicable margin. The Credit Agreement is subject to certain financial covenants, and the Company was in compliance with these covenants as of September 30, 2024. There were no borrowings under the Credit Agreement as of September 30, 2024, or December 31, 2023.
On October 29, 2024, the Company announced a quarterly dividend of $0.53 per share to be paid to all shareholders of record as of November 25, 2024. The dividend will be paid on December 13, 2024.

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Material Cash Requirements from Contractual Obligations
Leases. As of September 30, 2024, the Company reported current and long-term operating lease liabilities of $66 million and $173 million, respectively. These balances consist of the minimum rental commitments for October 2024 and thereafter, discounted to reflect the Company’s cost of borrowing, under noncancellable lease contracts executed as of September 30, 2024.
The majority of these leases are for real estate. In the event the Company vacates a location prior to the end of the lease term, the Company may be obliged to continue making lease payments. For further information, see Note G—“Leases” to the Company’s Condensed Consolidated Financial Statements included under Part I—Item 1 of this report.
Purchase Obligations. Purchase obligations are discussed in more detail in Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. There have been no material changes to the Company’s contractual purchase obligations during the first three quarters of 2024.
Employee Deferred Compensation Plan. As of September 30, 2024, the Company reported employee deferred compensation plan obligations of $664 million in its accompanying unaudited Condensed Consolidated Statements of Financial Position. The balances are due to employees based upon elections they make at the time of deferring their funds. The timing of these payments may change based upon factors including termination of the Company’s employment arrangement with a participant. These obligations are funded through contributions to investment trusts, whose assets as of September 30, 2024, were substantially equal to the obligations. Assets of these plans are held by an independent trustee for the sole benefit of participating employees and consist of money market funds and mutual funds. For further information, see Note J—“Employee Deferred Compensation Plan Obligations” to the Company’s Condensed Consolidated Financial Statements included under Part I—Item 1 of this report.
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
Because a portion of the Company’s net revenues is derived from its operations outside the U.S. and is denominated in local currencies, the Company is exposed to the impact of foreign currency fluctuations. The Company’s exposure to foreign currency exchange rates relates primarily to the Company’s foreign subsidiaries. Exchange rates impact the U.S. dollar value of the Company’s reported revenues, expenses, earnings, assets and liabilities.
For the nine months ended September 30, 2024, approximately 22.1% of the Company’s revenues were generated outside of the U.S. These operations transact business in their functional currency, which is the same as their local currency. As a result, fluctuations in the value of foreign currencies against the U.S. dollar, particularly the Australian dollar and Brazilian real, British pound, Canadian dollar and Euro, have an impact on the Company’s reported results. Under GAAP, revenues and expenses denominated in foreign currencies are translated into U.S. dollars at the monthly average exchange rates prevailing during the period. Consequently, as the value of the U.S. dollar changes relative to the currencies of the Company’s international markets, the Company’s reported results vary.
During the first nine months of 2024, the U.S. dollar fluctuated, and generally strengthened, against the primary currencies in which the Company conducts business, compared to one year ago. Foreign currency exchange rates had the effect of decreasing reported service revenues by $4.6 million, or 0.1%, in the first three quarters of 2024 compared to the same period one year ago. The general strengthening of the U.S. dollar also affected the reported level of expenses incurred in the Company’s international operations. Because substantially all the Company’s international operations generated revenues and incurred expenses within the same country and currency, the effect of lower reported revenues is largely offset by the decrease in reported operating expenses. Reported net income was $0.8 million, or 0.3%, lower in the first three quarters of 2024, compared to the same period one year ago due to the effect of currency exchange rates. If currency exchange rates were to remain at September 30, 2024 levels throughout the remainder of 2024, the currency impact on the Company’s full-year reported revenues and operating expenses would be consistent with the first three quarters of 2024 results. Should current trends continue, the impact to reported net income would be immaterial.
Fluctuations in foreign currency exchange rates impact the U.S. dollar amount of the Company’s stockholders’ equity. The assets and liabilities of the Company’s international subsidiaries are translated into U.S. dollars at the exchange rates in effect at period end. The resulting translation adjustments are recorded in stockholders’ equity as a component of accumulated other comprehensive loss. Although currency fluctuations impact the Company’s reported results and shareholders’ equity, such fluctuations generally do not affect cash flow or result in actual economic gains or losses. The Company generally has few cross-border transfers of funds, consisting of dividends from the Company’s foreign subsidiaries, and transfers to and from the U.S. related to intercompany working capital requirements.

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ITEM 4. Controls and Procedures
Management, including the Company’s President and Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports the Company files and submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission and that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. In accordance with this review, no material changes to controls and procedures were made in the three months ended September 30, 2024.

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PART II—OTHER INFORMATION
ITEM 1. Legal Proceedings
There have been no material developments with regard to any of the other legal proceedings previously disclosed in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2023, and its quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2024.
ITEM 1A. Risk Factors
There have not been any material changes with regard to the risk factors previously disclosed in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2023.
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities
Total
Number
of Shares
Purchased		Average
Price Paid
per Share		Total Number
of Shares Purchased as Part of Publicly Announced Plans		Maximum Number of Shares that May Yet Be Purchased
Under Publicly Announced
Plans (c)
July 1, 2024 to July 31, 202425,982 $61.63 25,982 9,099,724 
August 1, 2024 to August 31, 2024774,000 (a)$62.25 773,844 8,325,880 
September 1, 2024 to September 30, 20241,012 (b)$61.78 — 8,325,880 
Total July 1, 2024 to September 30, 2024800,994 799,826 
(a)Includes 156 shares repurchased in connection with employee stock plans, whereby Company shares were tendered by employees for the payment of applicable withholding taxes.
(b)Represents shares repurchased in connection with employee stock plans, whereby Company shares were tendered by employees for the payment of applicable withholding taxes.
(c)Commencing in October 1997, the Company’s Board of Directors has, at various times, authorized the repurchase, from time to time, of the Company’s common stock on the open market or in privately negotiated transactions depending on market conditions. Since plan inception, a total of 138,000,000 shares have been authorized for repurchase, of which 129,674,120 shares have been repurchased as of September 30, 2024.
ITEM 3. Defaults Upon Senior Securities
None.
ITEM 4. Mine Safety Disclosure
Not applicable.
ITEM 5. Other Information

None.

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ITEM 6. Exhibits
    3.1
    3.2
  31.1
  31.2
  32.1
  32.2
101.1Part I, Item 1 of this Form 10-Q formatted in Inline XBRL.
104Cover page of this Form 10-Q formatted in Inline XBRL and contained in Exhibit 101.


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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
ROBERT HALF INC.
(Registrant)
/s/Michael C. Buckley
Michael C. Buckley
Executive Vice President and Chief Financial Officer
(Principal Financial Officer and
duly authorized signatory)
Date: October 30, 2024

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