So today I'll walk through our second quarter results and the positive trends driving our business. Then Don will walk through our financials in detail. Let me start by summarizing the highlights for the quarter.
As you see, we delivered about $113 million this quarter, well ahead of our expectations, and this marks about 14% sequential quarterly growth. I'll comment on where the growth is coming from shortly, but we're delighted to see the strong demand from new clients that we had closed earlier. And as you know, it's about that nine month close-to-scale model that we have here.
And as we indicated at the last call, our existing top accounts are beginning to rebound a little earlier than we had expected. Total company gross margin was about 30.4%, reflecting the ongoing improvement from last quarter and again slightly ahead of, I think, the framework that we had shared.
With the growing revenue volume and benefits, our cost management is beginning to see some strong conversions of incremental revenue to opening profit compared to Q1. In fact, we saw about a 40% conversion of incremental revenue to operating profit on a sequential basis, and that's of course before our diminishing restructuring. So all the cost actions of the past 2 years are beginning to bear fruit, and now we're beginning to see the leverage from incremental revenue.Comparing Q2 to last year, revenue was up about 8% year over year. Again, very positive. The operating profit conversion year-on-year was masked by a negative currency effect and the shift in work mix as we ran up new accounts. We don't really have a fully GAAP auditable all the way through the statement currency macro, but our FP&A group does some currency activity, and this quarter in what looks to be constant currency, and that's latis, and yen, and euro, and all sorts of things. Actually, had very, very strong conversions compared to last year in a constant currency model.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV