Kforce revenue up nearly 16%, cites strength in technology business

February 08, 2022

Fourth-quarter revenue rose 15.9% at Kforce Inc. (NASDAQ: KFRC). The increase in revenue per billing day was 17.8%. The Tampa, Florida-based IT and finance/account staffing provider also reported gross margin improved.

“Perhaps most notable in 2021 was the record level of full-year organic growth we delivered in our technology business of approximately 22%, which meaningfully accelerated as the year progressed to greater than 30% growth in the fourth quarter of 2021,” President and CEO Joseph Liberatore said.

(US$ thousands) Q4 2021 Q4 2020 % change
Revenue $410,358 $354,048 15.9%
Gross profit $119,987 $100,461 19.4%
Gross margin percentage 29.2% 28.4%  
Net income $20,560 $18,285 12.4%

Technology direct-hire revenue at Kforce was up 84.9%.

Revenue by function and segment

(US$ thousands) Q4 2021 Q4 2020 % change
Total flex revenue $410,358 $354,048 15.9%
Total direct-hire revenue $14,582 $9,164 59.1%
       
Technology      
Technology flex revenue $337,962 $262,266 28.9%
Technology direct-hire revenue $8,462 $4,577 84.9%
Total technology revenue $346,424 $266,843 29.8%
       
Finance & Accounting      
Finance & Accounting flex revenue $57,814 $82,618 -30.0%
Finance & Accounting direct-hire revenue $6,120 $4,587 33.4%
Total Finance & Accounting revenue $63,934 $87,205 -26.7%

For full-year 2021, revenue was up 13.0%, while gross margin improved two basis points.

Full-year results

(US$ thousands) FY 2021 FY 2020 % change
Revenue $1,579,922 $1,397,700 13.0%
Gross profit $456,864 $396,224 15.3%
Gross margin percentage 28.9% 28.3%  
Net income $75,177 $56,039 34.2%

Guidance

Kforce forecast first-quarter revenue of between $403 million and $411 million, a year-over-year increase of between 11.0% and 13.2%.

It also forecast first-quarter gross margin of between 28.1% and 28.3%.

Share price and market cap

Shares in Kforce were up 7.80% to $73.40 as of 11:58 a.m. Eastern time; they were 9.91% below their 52-week high, according to FT.com. The company had a market cap of $1.46 billion.