Resources Connection, Inc. (NASDAQ:RGP) Q1 2024 Earnings Conference Call October 4, 2023 5:00 PM ET
Company Participants
Kate Duchene - CEO
Jenn Ryu - CFO
Conference Call Participants
Andrew Steinerman - JPMorgan
Marc Riddick - Sidoti
Operator
Good afternoon, ladies and gentlemen, and welcome to the Resources Connection, Inc. Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.
At this time, I would like to remind everyone that management will be commenting on results for the first quarter ended August 26, 2023. They will also refer to certain non-GAAP financial measures. An explanation and reconciliation of these measures to the most comparable GAAP financial measures are included in the press release issued today.
Today's press release can be viewed in the Investor Relations section of RGP's website and also filed today with the SEC. Also during this call, management may make forward-looking statements regarding plans, initiatives and strategies and the anticipated financial performance of the company. Such statements are predictions, and actual events or results may differ materially. Please see the Risk Factors section in RGP's report on Form 10-K for the year ended May 27, 2023, for a discussion of risks, uncertainties and other factors that may cause the company's business results of operations and financial condition to differ materially from what is expressed or implied by forward-looking statements made during this call.
I'll now turn the call over to RGP's CEO, Kate Duchene.
Kate Duchene
Thank you, operator. Good afternoon, everyone, and thanks for being with us.
We delivered solid performance during Q1 despite the continued uncertainty in the macro environment and despite Q1 traditionally being our most seasonally impacted quarter given summer holidays and consultant vacations. On both revenue and SG&A expense, we performed in the stronger half of our guidance range, while also continuing to deliver strong free cash flow.
During Q1, Countsy delivered solid growth over prior year quarter. The Northern Californian market grew sequentially, showing movement in the tech sector after 12 months of a quiet buying environment. Regional performance in the rest of North America reflected the overall choppy operating environment with clients remaining cautious about new spend while extending current engagements. Our pricing initiative is progressing as planned with over a 2% increase in bill rate in the U.S. quarter-over-quarter and 4% in Europe, constant currency.
Turning to our operational metrics. Pipeline remains resilient. Engagement extension showed an uptick from the prior sequential quarter, continuing to demonstrate the stickiness of our consultants within the client environment.