Resources Connection, Inc. (NASDAQ:RGP)
Q1 2023 Earnings Conference Call
October 05, 2022 5:00 PM ET
Company Participants
Kate Duchene - CEO
Tim Brackney - President & COO
Jenn Ryu - CFO
Conference Call Participants
Mark Marcon - Robert W. Baird
Marc Riddick - Sidoti
Presentation
Operator
Good afternoon, ladies and gentlemen, and welcome to the Resources Connection Inc. Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. 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 27, 2022. 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 28, 2022, 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're pleased to report sustained robust performance in Q1. Specifically, Q1 revenue was 17% higher than prior year excluding the taskforce business, which we divested at the end of May. Gross margin improved 190 basis points over prior year to 40.9%. Gross profit improved almost 17% quarter-over-quarter. Adjusted EBITDA margin improved 280 basis points over prior year to 15%. These results exceeded our guidance as we grew topline, improved pricing and maintain disciplined cost management.
During our prior call, we outlined the strategic objectives for fiscal year ‘23. I will briefly comment on technology and digitalization initiatives as we are progressing on all fronts. We've launched our technology modernization project to support continued topline growth and drive greater operational efficiency. This project will take approximately 24 months to complete globally. To remind you, we are replacing our core ERP system, our core talent acquisition and management system, and implementing a contract management product.