Consulting firm Resources Connection's Q1 net loss widens on lower project volume
RGP•Resources Connection's Q1 revenue fell 18% year over year to $98.09 million as lower project volume weighed on results, and its net loss widened to $7.97 million. Its adjusted loss per share of $0.16 slightly beat the $0.17 analyst estimate.
1. Quarterly results
Resources Connection reported Q1 revenue of $98.09 million, down 18% year over year, and a net loss of $7.97 million. Adjusted loss per share was $0.16, compared with an analyst estimate of $0.17.
2. Project volume and costs
The company said reduced project volume and cautious client decision-making weighed on revenue and profitability. Longer decision timelines and delayed project starts led to fewer billable hours. Cost reductions improved selling, general and administrative expenses, while pricing discipline helped support the average bill rate in its On-Demand Talent segment.
3. Company outlook
Resources Connection said it is focused on improving sales execution and reducing costs, and sees positive indicators in On-Demand Talent pricing and client relationships. It expects improvements in revenue growth and profitability to take time to materialize.
