RGP reports 28% revenue growth in fiscal year 2022

01 August 2022 Consulting.us

Resources Connection (RGP), an Irvine, CA-headquartered management consultancy, announced its fourth quarter and full-year results for the fiscal year ended May 28, 2022.

The firm in Q4 2022 grew revenue by 25.9% year-over-year (YoY) to reach $217 million in revenue. Adjusted Ebitda increased to $33.4 million (15.4% margin), with a 340 basis-point margin improvement. RGP in Q4 had diluted earnings per common share of $0.61, down from $0.70 in Q4 2021.

In FY 2022, the public company increased revenue by 27.9% to $805 million, while adjusted Ebitda margin was 12.8% – up 440 basis-points from 2021. Diluted earnings per common share was $2.00, up from $0.78 in 2021.

“We are very excited to have produced the strongest revenue and Adjusted EBITDA we’ve seen in over ten years for both the fourth quarter and full fiscal year. We accomplished this by successfully executing on our record pipeline of opportunities across all businesses, while remaining disciplined on the cost front,” said Kate Duchene, CEO of RGP. “As we look ahead, we are greatly encouraged by the solid trajectory of our pipeline supported by reoccurring projects from our strategic clients as they leverage RGP’s experienced talent to help them execute on transformations and fill on-demand talent gaps.”

RGP was founded in 1996 as a part of Deloitte US and spun off as a public company in 2000. The firm provides staffing solutions, project execution support, and end-to-end solution delivery in strategy and transformation, finance and accounting, risk and compliance, and technology and digital. RGP has 4,300 professionals globally and has served more than 88% of the Fortune 100.

“Our model presents an attractive alternative to execute on mission-critical work,” Duchene said. “Recent headlines declare that well-known companies are putting the brakes on full-time equivalent hiring and bringing more agility into their workforce. This foundational shift in talent strategy for greater resiliency is a favorable tailwind for our business.”