ROBERT HALF REPORTS FOURTH-QUARTER FINANCIAL RESULTS

Rhea-AI Summary

Robert Half International Inc. (NYSE: RHI) reported its Q4 2022 results, revealing net income of $148 million, or $1.37 per share, on revenues of $1.727 billion. This marks a decrease from the prior year's Q4 net income of $168 million and revenues of $1.770 billion. For the full year 2022, the company achieved net income of $658 million, or $6.03 per share, with revenues of $7.238 billion, up from $599 million and $6.461 billion in 2021. CEO M. Keith Waddell noted that all major practice areas hit record levels, and the company remains optimistic in navigating the current economic environment.

Positive

• 2022 full-year revenues and EPS grew over 12%.
• All major practice areas reached new record levels.

Negative

• Q4 2022 net income decreased compared to Q4 2021.
• Q4 2022 revenues declined from the prior year's quarter.

MENLO PARK, Calif., Jan. 26, 2023 /PRNewswire/ -- Robert Half International Inc. (NYSE: RHI) today reported revenues and earnings for the fourth quarter ended December 31, 2022.

For the quarter ended December 31, 2022, net income was $148 million, or $1.37 per share, on revenues of $1.727 billion. Net income for the prior year's fourth quarter was $168 million, or $1.51 per share, on revenues of $1.770 billion.

For the year ended December 31, 2022, net income was $658 million, or $6.03 per share, on revenues of $7.238 billion. For the year ended December 31, 2021, net income was $599 million, or $5.36 per share, on revenues of $6.461 billion.

"2022 was a very successful year across the entire Robert Half enterprise. We grew full-year revenues and earnings per share — both by more than 12 percent — and achieved new record levels for each," said M. Keith Waddell, president and chief executive officer of Robert Half. "All of our major practice areas — contract, permanent placement and Protiviti — reached new all-time highs, over and above the very strong growth in the prior year. We enter 2023 optimistic about our ability to navigate the uncertain global macroeconomic environment and the tight labor markets around the world. 

"The energy and dedication of our global teams made possible a record number of awards and accolades in 2022. Fourth-quarter recognition included being named as one of the Best Workplaces for Parents™ and honored by Forbes as one of the World's Top Female-Friendly Companies. We are particularly proud of the recognition we continue to receive for our commitment to diversity, equity and inclusion," Waddell concluded.

Robert Half management will conduct a conference call today at 5 p.m. EST. The prepared remarks for this call are available now in the Investor Center of the Robert Half website (www.roberthalf.com/investor-center). Simply click on the Quarterly Conference Calls link. The dial-in number to listen to today's conference call is 888-394-8218 (+1-323-994-2093  outside the United States and Canada). The confirmation code to access the call is 6821099.

A taped recording of this call will be available for replay beginning at approximately 8 p.m. EST on January 26 and ending at 8 p.m. EST on February 23. To access the replay, visit https://webcasts.com/RobertHalfQ42022. The conference call also will be archived in audio format on the Company's website at www.roberthalf.com.

Robert Half is the world's first and largest specialized talent solutions and business consulting firm that connects opportunities at great companies with highly skilled job seekers. The Company offers contract and permanent placement talent solutions for finance and accounting, technology, marketing and creative, legal, and administrative and customer support roles.

Named to FORTUNE's World's Most Admired Companies^®, the Bloomberg Gender-Equality Index and Forbes' list of America's Best Employers for Diversity, Robert Half is the parent company of Protiviti, a global consulting firm that provides internal audit, risk, business and technology consulting solutions.

Robert Half has operations in more than 400 locations worldwide.

Certain information contained in this press release and its attachments may be deemed forward-looking statements regarding events and financial trends that may affect the Company's future operating results or financial positions. These statements may be identified by words such as "estimate", "forecast", "project", "plan", "intend", "believe", "expect", "anticipate", or variations or negatives thereof, or by similar or comparable words or phrases. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements.

These risks and uncertainties include, but are not limited to, the following: changes to or new interpretations of U.S. or international tax regulations; the global financial and economic situation; the duration and impact of the COVID-19 pandemic and efforts to mitigate its spread; changes in levels of unemployment and other economic conditions in the United States or foreign countries where the Company does business, or in particular regions or industries; reduction in the supply of candidates for contract employment or the Company's ability to attract candidates; the entry of new competitors into the marketplace or expansion by existing competitors; the ability of the Company to maintain existing client relationships and attract new clients in the context of changing economic or competitive conditions; the impact of competitive pressures, including any change in the demand for the Company's services; the Company's ability to maintain its margins; the possibility of the Company incurring liability for its activities, including the activities of its contract employees, or for events impacting its contract employees on clients' premises; the possibility that adverse publicity could impact the Company's ability to attract and retain clients and candidates; the success of the Company in attracting, training, and retaining qualified management personnel and other staff employees; the Company's ability to comply with governmental regulations affecting personnel services businesses in particular or employer/employee relationships in general; whether there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; the Company's reliance on short-term contracts for a significant percentage of its business; litigation relating to prior or current transactions or activities, including litigation that may be disclosed from time to time in the Company's SEC filings; the ability of the Company to manage its international operations and comply with foreign laws and regulations; the impact of fluctuations in foreign currency exchange rates; the possibility that the additional costs the Company will incur as a result of healthcare reform legislation may adversely affect the Company's profit margins or the demand for the Company's services; the possibility that the Company's computer and communications hardware and software systems could be damaged or their service interrupted; and the possibility that the Company may fail to maintain adequate financial and management controls, and as a result, suffer errors in its financial reporting.

Additionally, with respect to Protiviti, other risks and uncertainties include the fact that future success will depend on its ability to retain employees and attract clients; there can be no assurance that there will be ongoing demand for broad-based consulting, regulatory compliance, technology services, public sector or other high-demand advisory services; failure to produce projected revenues could adversely affect financial results; and there is the possibility of involvement in litigation relating to prior or current transactions or activities.

Because long-term contracts are not a significant part of the Company's business, future results cannot be reliably predicted by considering past trends or extrapolating past results. The Company undertakes no obligation to update information contained in this release.

A copy of this release is available at www.roberthalf.com/investor-center.

ATTACHED:

Summary of Operations   Supplemental Financial Information   Non-GAAP Financial Measures

 

 

ROBERT HALF INTERNATIONAL INC. SUMMARY OF OPERATIONS (in thousands, except per share amounts)
	Quarter Ended December 31,				Year Ended December 31,
	2022		2021		2022		2021
	(Unaudited)				(Unaudited)
Service revenues	$  1,727,026		$  1,769,917		$  7,238,142		$  6,461,444
Costs of services	1,007,979		1,025,799		4,144,093		3,765,416
Gross margin	719,047		744,118		3,094,049		2,696,028
Selling, general and administrative expenses	545,129		544,551		2,117,296		1,951,282
(Income) loss from investments held in employee deferred compensation trusts	(24,819)		(23,040)		86,139		(61,078)
Amortization of intangible assets	417		517		1,667		2,241
Interest income, net	(4,778)		(52)		(8,008)		(197)
Income before income taxes	203,098		222,142		896,955		803,780
Provision for income taxes	55,445		54,198		239,036		205,154
Net income	$   147,653		$   167,944		$   657,919		$   598,626
Diluted net income per share	$          1.37		$          1.51		$          6.03		$          5.36
Shares:
Basic	106,980		109,488		108,214		110,482
Diluted	107,808		111,020		109,171		111,718

 

ROBERT HALF INTERNATIONAL INC. SUPPLEMENTAL FINANCIAL INFORMATION (in thousands)
	Quarter Ended December 31,						Year Ended December 31,
	2022	% of Revenue		2021	% of Revenue		2022	% of Revenue		2021	% of Revenue
	(Unaudited)						(Unaudited)
BUSINESS SEGMENT INCOME   INFORMATION:
Contract talent solutions	$  105,420	9.8 %		$  114,174	10.2 %		$  492,281	10.9 %		$  393,872	9.8 %
Permanent placement talent solutions	$  21,365	13.7 %		$  27,202	17.2 %		$  127,622	17.6 %		$  106,465	18.7 %
Protiviti	$  71,952	14.4 %		$  81,231	16.4 %		$  270,711	13.7 %		$  305,487	16.5 %

 

		December 31,
		2022		2021
		(Unaudited)
SELECTED BALANCE SHEET INFORMATION:
Cash and cash equivalents		$    658,626		$    619,001
Accounts receivable, net		$ 1,018,287		$    984,691
Total assets		$ 2,964,488		$ 2,952,359
Total current liabilities		$ 1,216,202		$ 1,358,673
Total stockholders' equity		$ 1,568,558		$ 1,381,051

 

		Year Ended December 31,
		2022		2021
		(Unaudited)
SELECTED CASH FLOW INFORMATION:
Depreciation		$      47,398		$      52,210
Capitalized cloud computing implementation costs		$      40,357		$      31,240
Capital expenditures		$      61,120		$      36,611
Open market repurchases of common stock (shares)		3,318		2,796

 

ROBERT HALF INTERNATIONAL INC.
SUPPLEMENTAL FINANCIAL INFORMATION (UNAUDITED)
(in thousands)

The Company completed a multiyear process to unify its family of Robert Half endorsed divisional brands to one single specialized brand, Robert Half. This simplifies the Company's go-to-market brand structure for clients and candidates and provides leverage for greater brand awareness and allows future flexibility to expand the Company's existing practice groups without the need for new brands. The Company's financial disclosures for contract talent solutions (formerly temporary and consultant staffing) are based on functional specialization rather than the previously branded divisions. The functional specializations are: finance and accounting, administrative and customer support, and technology. Finance and accounting combines the former Accountemps and Robert Half Management Resources, administrative and customer support was previously OfficeTeam, and technology was formerly Robert Half Technology. Protiviti and permanent placement talent solutions continue to be reported separately. What was previously referred to as staffing operations is now referred to as talent solutions. There is no change to the underlying business operations or organization.

The Company's presentation of service revenues for finance and accounting, administrative and customer support, and technology include intersegment revenues from services provided to Protiviti in connection with the Company's blended business solutions. This is how the Company measures and manages these businesses internally. The combined amount of divisional intersegment revenues with Protiviti are aggregated and then eliminated as a single line item. The Company has prepared the below schedule to provide readers with historical comparative information to better evaluate the related trends.

	2020								2021								2022
	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
SERVICE REVENUES:
Finance and accounting	$   701,762		$   496,573		$   506,515		$   552,116		$   600,387		$   663,892		$   732,365		$   768,204		$   801,690		$   810,910		$   805,229		$   767,354
Administrative and customer    support	239,979		136,299		173,685		214,985		220,467		263,192		279,370		295,872		284,906		274,141		250,531		233,056
Technology	196,652		162,028		161,007		175,730		172,239		194,233		215,500		213,414		213,327		218,190		216,735		209,009
Elimination of intersegment    revenues	(46,273)		(41,514)		(59,816)		(92,393)		(103,818)		(143,036)		(172,534)		(161,004)		(144,200)		(137,548)		(132,745)		(137,738)
Total contract talent solutions	1,092,120		753,386		781,391		850,438		889,275		978,281		1,054,701		1,116,486		1,155,723		1,165,693		1,139,750		1,071,681
Permanent placement talent    solutions	120,489		71,030		87,203		91,387		111,703		143,640		156,444		158,133		186,782		200,096		182,329		155,948
Protiviti	294,082		283,910		321,303		362,261		397,402		458,660		501,421		495,298		472,329		497,038		511,376		499,397
Total service revenues	$  1,506,691		$  1,108,326		$  1,189,897		$  1,304,086		$  1,398,380		$  1,580,581		$  1,712,566		$  1,769,917		$  1,814,834		$  1,862,827		$  1,833,455		$  1,727,026

 

ROBERT HALF INTERNATIONAL INC.
NON-GAAP FINANCIAL MEASURES

The financial results of Robert Half International Inc. (the "Company") are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the SEC. To help readers understand the Company's financial performance, the Company supplements its GAAP financial results with the following non-GAAP measures: adjusted gross margin; adjusted selling, general and administrative expense; combined segment income; and as adjusted revenue growth rates.

The following measures: adjusted gross margin and adjusted selling, general and administrative expenses include gains and losses on investments held to fund the Company's obligations under employee deferred compensation plans. The Company provides these measures because they are used by management to review its operational results.

Combined segment income is income before income taxes, adjusted for interest income and amortization of intangible assets. The Company provides combined segment income because it is how management evaluates segment performance.

As adjusted revenue growth rates represent year-over-year revenue growth rates after removing the impacts on reported revenues from the changes in the number of billing days and foreign currency exchange rates. The Company provides this data because it focuses on the Company's revenue growth rates attributable to operating activities and aids in evaluating revenue trends over time. The impacts from the changes in billing days and foreign currency exchange rates are calculated as follows:

• Billing days impact is calculated by dividing each comparative period's reported revenues by the number of billing days for that period to arrive at a per billing day amount. Same billing day growth rates are then calculated based on the per billing day amounts. Management calculates a global, weighted-average number of billing days for each reporting period based upon inputs from all countries and all functional specializations and segments.
• Foreign currency impact is calculated by retranslating current period international revenues, using foreign currency exchange rates from the prior year's comparable period.

The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided on the following pages.

ROBERT HALF INTERNATIONAL INC. NON-GAAP FINANCIAL MEASURES ADJUSTED GROSS MARGIN (UNAUDITED): (in thousands)
	Quarter Ended December 31,								Relationships								Year Ended December 31,								Relationships
	As Reported				As Adjusted				As Reported				As Adjusted				As Reported				As Adjusted				As Reported				As Adjusted
	2022		2021		2022		2021		2022		2021		2022		2021		2022		2021		2022		2021		2022		2021		2022		2021
Gross Margin
Contract talent solutions	$  427,736		$  444,295		$  427,736		$  444,295		39.9 %		39.8 %		39.9 %		39.8 %		$ 1,804,029		$ 1,598,716		$ 1,804,029		$ 1,598,716		39.8 %		39.6 %		39.8 %		39.6 %
Permanent placement talent solutions	155,559		157,862		155,559		157,862		99.8 %		99.8 %		99.8 %		99.8 %		723,706		568,983		723,706		568,983		99.8 %		99.8 %		99.8 %		99.8 %
Protiviti	135,752		141,961		139,862		145,244		27.2 %		28.7 %		28.0 %		29.3 %		566,314		528,329		552,465		537,176		28.6 %		28.5 %		27.9 %		29.0 %
Total	$  719,047		$  744,118		$  723,157		$  747,401		41.6 %		42.0 %		41.9 %		42.2 %		$ 3,094,049		$ 2,696,028		$ 3,080,200		$ 2,704,875		42.7 %		41.7 %		42.6 %		41.9 %

The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the quarters ended December 31, 2022 and 2021:

	Quarter Ended December 31, 2022												Quarter Ended December 31, 2021
	Contract talent solutions			Permanent placement talent solutions			Protiviti			Total			Contract talent solutions			Permanent placement talent solutions			Protiviti			Total
	$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue
Gross Margin
As Reported	$   427,736	39.9 %		$ 155,559	99.8 %		$ 135,752	27.2 %		$   719,047	41.6 %		$   444,295	39.8 %		$ 157,862	99.8 %		$ 141,961	28.7 %		$   744,118	42.0 %
Adjustments (1)	—	—		—	—		4,110	0.8 %		4,110	0.3 %		—	—		—	—		3,283	0.6 %		3,283	0.2 %
As Adjusted	$   427,736	39.9 %		$ 155,559	99.8 %		$ 139,862	28.0 %		$   723,157	41.9 %		$   444,295	39.8 %		$ 157,862	99.8 %		$ 145,244	29.3 %		$   747,401	42.2 %

The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the years ended December 31, 2022 and 2021:

	Year Ended December 31, 2022												Year Ended December 31, 2021
	Contract talent solutions			Permanent placement talent solutions			Protiviti			Total			Contract talent solutions			Permanent placement talent solutions			Protiviti			Total
	$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue
Gross Margin
As Reported	$ 1,804,029	39.8 %		$ 723,706	99.8 %		$ 566,314	28.6 %		$ 3,094,049	42.7 %		$ 1,598,716	39.6 %		$ 568,983	99.8 %		$ 528,329	28.5 %		$ 2,696,028	41.7 %
Adjustments (1)	—	—		—	—		(13,849)	(0.7 %)		(13,849)	(0.1 %)		—	—		—	—		8,847	0.5 %		8,847	0.2 %
As Adjusted	$ 1,804,029	39.8 %		$ 723,706	99.8 %		$ 552,465	27.9 %		$ 3,080,200	42.6 %		$ 1,598,716	39.6 %		$ 568,983	99.8 %		$ 537,176	29.0 %		$ 2,704,875	41.9 %

(1)

Changes in the Company's deferred compensation obligations related to Protiviti operations are included in costs of services, while the related investment (income) loss is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment (income) loss from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes.

 

ROBERT HALF INTERNATIONAL INC. NON-GAAP FINANCIAL MEASURES ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED): (in thousands)
	Quarter Ended December 31,								Relationships								Year Ended December 31,								Relationships
	As Reported				As Adjusted				As Reported				As Adjusted				As Reported				As Adjusted				As Reported				As Adjusted
	2022		2021		2022		2021		2022		2021		2022		2021		2022		2021		2022		2021		2022		2021		2022		2021
Selling, General and   Administrative Expenses
Contract talent solutions	$  340,492		$  347,826		$  322,316		$  330,121		31.8 %		31.2 %		30.1 %		29.6 %		$ 1,248,378		$ 1,251,565		$ 1,311,748		$ 1,204,844		27.5 %		31.0 %		28.9 %		29.8 %
Permanent placement talent solutions	136,727		132,712		134,194		130,660		87.7 %		83.9 %		86.1 %		82.6 %		587,164		468,028		596,084		462,518		81.0 %		82.1 %		82.2 %		81.2 %
Protiviti	67,910		64,013		67,910		64,013		13.6 %		12.9 %		13.6 %		12.9 %		281,754		231,689		281,754		231,689		14.2 %		12.5 %		14.2 %		12.5 %
Total	$  545,129		$  544,551		$  524,420		$  524,794		31.6 %		30.8 %		30.4 %		29.7 %		$ 2,117,296		$ 1,951,282		$ 2,189,586		$ 1,899,051		29.3 %		30.2 %		30.3 %		29.4 %

The following tables provide reconciliations of the non-GAAP adjusted selling, general and administrative expenses to reported selling, general and administrative expenses for the quarters ended December 31, 2022 and 2021:

	Quarter Ended December 31, 2022												Quarter Ended December 31, 2021
	Contract talent solutions			Permanent placement talent solutions			Protiviti			Total			Contract talent solutions			Permanent placement talent solutions			Protiviti			Total
	$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue
Selling, General and   Administrative Expenses
As Reported	$   340,492	31.8 %		$ 136,727	87.7 %		$   67,910	13.6 %		$   545,129	31.6 %		$   347,826	31.2 %		$ 132,712	83.9 %		$   64,013	12.9 %		$   544,551	30.8 %
Adjustments (1)	(18,176)	(1.7 %)		(2,533)	(1.6 %)		—	—		(20,709)	(1.2 %)		(17,705)	(1.6 %)		(2,052)	(1.3 %)		—	—		(19,757)	(1.1 %)
As Adjusted	$   322,316	30.1 %		$ 134,194	86.1 %		$   67,910	13.6 %		$   524,420	30.4 %		$   330,121	29.6 %		$ 130,660	82.6 %		$   64,013	12.9 %		$   524,794	29.7 %

The following tables provide reconciliations of the non-GAAP adjusted selling, general and administrative expenses to reported selling, general and administrative expenses for the years ended December 31, 2022 and 2021:

	Year Ended December 31, 2022												Year Ended December 31, 2021
	Contract talent solutions			Permanent placement talent solutions			Protiviti			Total			Contract talent solutions			Permanent placement talent solutions			Protiviti			Total
	$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue		$	% of Revenue
Selling, General and   Administrative Expenses
As Reported	$  1,248,378	27.5 %		$ 587,164	81.0 %		$ 281,754	14.2 %		$  2,117,296	29.3 %		$  1,251,565	31.0 %		$ 468,028	82.1 %		$ 231,689	12.5 %		$  1,951,282	30.2 %
Adjustments (1)	63,370	1.4 %		8,920	1.2 %		—	—		72,290	1.0 %		(46,721)	(1.2 %)		(5,510)	(0.9 %)		—	—		(52,231)	(0.8 %)
As Adjusted	$  1,311,748	28.9 %		$ 596,084	82.2 %		$ 281,754	14.2 %		$  2,189,586	30.3 %		$  1,204,844	29.8 %		$ 462,518	81.2 %		$ 231,689	12.5 %		$  1,899,051	29.4 %

(1)

Changes in the Company's deferred compensation obligations related to talent solutions operations are included in selling, general and administrative expenses, while the related investment (income) loss is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment (income) loss from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes.

 

ROBERT HALF INTERNATIONAL INC.
NON-GAAP FINANCIAL MEASURES
COMBINED SEGMENT INCOME (UNAUDITED):
(in thousands)

The following tables provide reconciliations of the non-GAAP combined segment income to reported income before income taxes for the quarters and years ended December 31, 2022 and 2021:

	Quarter Ended December 31,								Year Ended December 31,
	2022		% of Revenue		2021		% of Revenue		2022		% of Revenue		2021		% of Revenue
Income before income taxes	$  203,098		11.8 %		$  222,142		12.6 %		$  896,955		12.4 %		$  803,780		12.4 %
Interest income, net	(4,778)		(0.3 %)		(52)		0.0 %		(8,008)		(0.1 %)		(197)		0.0 %
Amortization of intangible assets	417		0.0 %		517		0.0 %		1,667		0.0 %		2,241		0.1 %
Combined segment income	$  198,737		11.5 %		$  222,607		12.6 %		$  890,614		12.3 %		$  805,824		12.5 %

 

ROBERT HALF INTERNATIONAL INC. NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATES (%) (UNAUDITED):
		Year-Over-Year Growth Rates (As Reported)												Non-GAAP Year-Over-Year Growth Rates (As Adjusted)
		2021				2022								2021				2022
		Q3		Q4		Q1		Q2		Q3		Q4		Q3		Q4		Q1		Q2		Q3		Q4
Global
Finance and accounting		44.6		39.1		33.5		22.1		9.9		-0.1		43.5		39.8		34.6		24.4		12.8		2.9
Administrative and customer support		60.8		37.6		29.2		4.2		-10.3		-21.2		60.0		38.4		30.5		6.3		-7.8		-18.8
Technology		33.8		21.4		23.9		12.3		0.6		-2.1		33.1		21.8		24.6		13.9		2.5		0.5
Elimination of intersegment revenues (1)		188.4		74.3		38.9		-3.8		-23.1		-14.5		187.5		75.1		40.1		-1.9		-20.8		-11.5
Total contract talent solutions		35.0		31.3		30.0		19.2		8.1		-4.0		34.0		31.9		31.0		21.3		10.7		-1.2
Permanent placement talent solutions		79.4		73.0		67.2		39.3		16.5		-1.4		77.7		73.8		68.8		42.6		20.3		2.4
Total talent solutions		39.4		35.3		34.1		21.7		9.2		-3.7		38.4		36.0		35.2		24.0		12.0		-0.8
Protiviti		56.1		36.7		18.9		8.4		2.0		0.8		55.1		37.4		20.0		10.8		4.8		4.0
Total		43.9		35.7		29.8		17.9		7.1		-2.4		42.9		36.3		30.9		20.2		9.9		0.6
United States
Contract talent solutions		35.5		33.4		33.4		22.7		11.3		-3.4		35.5		33.6		33.4		22.7		11.3		-2.9
Permanent placement talent solutions		85.1		78.6		78.3		44.3		22.4		1.4		85.1		78.9		78.3		44.3		22.4		1.9
Total talent solutions		40.0		37.2		37.8		25.2		12.6		-2.9		40.0		37.4		37.8		25.2		12.6		-2.4
Protiviti		53.7		31.7		17.0		8.3		4.1		3.6		53.7		31.9		17.0		8.3		4.1		4.1
Total		43.8		35.6		31.7		20.2		10.0		-1.1		43.8		35.8		31.7		20.2		10.0		-0.6
International
Contract talent solutions		33.0		24.0		18.5		7.0		-3.2		-6.3		29.1		26.3		23.5		16.6		8.7		5.3
Permanent placement talent solutions		67.3		61.9		44.7		28.0		2.9		-7.5		62.1		64.0		50.0		39.0		15.4		4.3
Total talent solutions		37.7		29.2		22.5		10.5		-2.2		-6.5		33.7		31.6		27.5		20.3		9.8		5.2
Protiviti		65.9		58.3		26.2		8.6		-6.3		-9.2		61.4		61.2		32.3		20.6		7.3		3.7
Total		44.3		36.2		23.4		10.0		-3.3		-7.3		40.1		38.6		28.7		20.4		9.1		4.8

(1)	Service revenues for finance and accounting, administrative and customer support, and technology include intersegment revenues, which represent revenues from services provided to Protiviti in connection with the Company's blended business solutions. Intersegment revenues for each functional specialization are aggregated and then eliminated as a single line item.

The non-GAAP financial measures included in the table above adjust for the following items:

Billing Days. The "As Reported" revenue growth rates are based upon reported revenues. Management calculates the billing day impact by dividing each comparative period's reported revenues by the number of billing days for that period to arrive at a per billing day amount. Same billing day growth rates are then calculated based on the per billing day amounts. Management calculates a global, weighted-average number of billing days for each reporting period based upon input from all countries and all functional specializations and segments.

Foreign Currency Translation. The "As Reported" revenue growth rates are based upon reported revenues, which include the impact of changes in foreign currency exchange rates. The foreign currency impact is calculated by retranslating current period international revenues, using foreign currency exchange rates from the prior year's comparable period.

The term "As Adjusted" means that the impact of different billing days and constant currency fluctuations are removed from the revenue growth rate calculation. A reconciliation of the non-GAAP year-over-year revenue growth rates to the "As Reported" year-over-year revenue growth rates is included herein, on Pages 11-13.

ROBERT HALF INTERNATIONAL INC. NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
Year-Over-Year Revenue Growth – GLOBAL
		Q3 2021		Q4 2021		Q1 2022		Q2 2022		Q3 2022		Q4 2022
Finance and accounting
As Reported		44.6		39.1		33.5		22.1		9.9		-0.1
Billing Days Impact		-0.3		0.3		-0.2		0.0		0.2		0.8
Currency Impact		-0.8		0.4		1.3		2.3		2.7		2.2
As Adjusted		43.5		39.8		34.6		24.4		12.8		2.9
Administrative and customer support
As Reported		60.8		37.6		29.2		4.2		-10.3		-21.2
Billing Days Impact		-0.2		0.1		-0.2		0.0		0.1		0.7
Currency Impact		-0.6		0.7		1.5		2.1		2.4		1.7
As Adjusted		60.0		38.4		30.5		6.3		-7.8		-18.8
Technology
As Reported		33.8		21.4		23.9		12.3		0.6		-2.1
Billing Days Impact		-0.1		0.1		-0.2		0.0		0.1		0.9
Currency Impact		-0.6		0.3		0.9		1.6		1.8		1.7
As Adjusted		33.1		21.8		24.6		13.9		2.5		0.5
Elimination of intersegment revenues
As Reported		188.4		74.3		38.9		-3.8		-23.1		-14.5
Billing Days Impact		-0.4		0.1		-0.2		0.0		0.2		0.8
Currency Impact		-0.5		0.7		1.4		1.9		2.1		2.2
As Adjusted		187.5		75.1		40.1		-1.9		-20.8		-11.5
Total contract talent solutions
As Reported		35.0		31.3		30.0		19.2		8.1		-4.0
Billing Days Impact		-0.2		0.1		-0.2		0.0		0.1		0.8
Currency Impact		-0.8		0.5		1.2		2.1		2.5		2.0
As Adjusted		34.0		31.9		31.0		21.3		10.7		-1.2
Permanent placement talent solutions
As Reported		79.4		73.0		67.2		39.3		16.5		-1.4
Billing Days Impact		-0.2		0.1		-0.3		0.0		0.2		0.8
Currency Impact		-1.5		0.7		1.9		3.3		3.6		3.0
As Adjusted		77.7		73.8		68.8		42.6		20.3		2.4
Total talent solutions
As Reported		39.4		35.3		34.1		21.7		9.2		-3.7
Billing Days Impact		-0.2		0.2		-0.2		0.0		0.1		0.8
Currency Impact		-0.8		0.5		1.3		2.3		2.7		2.1
As Adjusted		38.4		36.0		35.2		24.0		12.0		-0.8
Protiviti
As Reported		56.1		36.7		18.9		8.4		2.0		0.8
Billing Days Impact		-0.3		0.2		-0.2		0.0		0.2		0.8
Currency Impact		-0.7		0.5		1.3		2.4		2.6		2.4
As Adjusted		55.1		37.4		20.0		10.8		4.8		4.0
Total
As Reported		43.9		35.7		29.8		17.9		7.1		-2.4
Billing Days Impact		-0.2		0.1		-0.2		0.0		0.2		0.8
Currency Impact		-0.8		0.5		1.3		2.3		2.6		2.2
As Adjusted		42.9		36.3		30.9		20.2		9.9		0.6

 

ROBERT HALF INTERNATIONAL INC. NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
Year-Over-Year Revenue Growth – UNITED STATES
		Q3 2021		Q4 2021		Q1 2022		Q2 2022		Q3 2022		Q4 2022
Contract talent solutions
As Reported		35.5		33.4		33.4		22.7		11.3		-3.4
Billing Days Impact		0.0		0.2		0.0		0.0		0.0		0.5
Currency Impact		―		―		―		―		―		―
As Adjusted		35.5		33.6		33.4		22.7		11.3		-2.9
Permanent placement talent solutions
As Reported		85.1		78.6		78.3		44.3		22.4		1.4
Billing Days Impact		0.0		0.3		0.0		0.0		0.0		0.5
Currency Impact		―		―		―		―		―		―
As Adjusted		85.1		78.9		78.3		44.3		22.4		1.9
Total talent solutions
As Reported		40.0		37.2		37.8		25.2		12.6		-2.9
Billing Days Impact		0.0		0.2		0.0		0.0		0.0		0.5
Currency Impact		―		―		―		―		―		―
As Adjusted		40.0		37.4		37.8		25.2		12.6		-2.4
Protiviti
As Reported		53.7		31.7		17.0		8.3		4.1		3.6
Billing Days Impact		—		0.2		—		0.0		0.0		0.5
Currency Impact		―		―		―		―		―		―
As Adjusted		53.7		31.9		17.0		8.3		4.1		4.1
Total
As Reported		43.8		35.6		31.7		20.2		10.0		-1.1
Billing Days Impact		0.0		0.2		0.0		0.0		0.0		0.5
Currency Impact		―		―		―		―		―		―
As Adjusted		43.8		35.8		31.7		20.2		10.0		-0.6

 

ROBERT HALF INTERNATIONAL INC. NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
Year-Over-Year Revenue Growth – INTERNATIONAL
		Q3 2021		Q4 2021		Q1 2022		Q2 2022		Q3 2022		Q4 2022
Contract talent solutions
As Reported		33.0		24.0		18.5		7.0		-3.2		-6.3
Billing Days Impact		-0.5		0.1		-0.4		0.2		0.5		2.1
Currency Impact		-3.4		2.2		5.4		9.4		11.4		9.5
As Adjusted		29.1		26.3		23.5		16.6		8.7		5.3
Permanent placement talent solutions
As Reported		67.3		61.9		44.7		28.0		2.9		-7.5
Billing Days Impact		-0.6		0.1		-0.5		0.2		0.6		2.2
Currency Impact		-4.6		2.0		5.8		10.8		11.9		9.6
As Adjusted		62.1		64.0		50.0		39.0		15.4		4.3
Total talent solutions
As Reported		37.7		29.2		22.5		10.5		-2.2		-6.5
Billing Days Impact		-0.5		0.2		-0.4		0.1		0.5		2.2
Currency Impact		-3.5		2.2		5.4		9.7		11.5		9.5
As Adjusted		33.7		31.6		27.5		20.3		9.8		5.2
Protiviti
As Reported		65.9		58.3		26.2		8.6		-6.3		-9.2
Billing Days Impact		-0.7		0.1		-0.5		0.2		0.5		2.1
Currency Impact		-3.8		2.8		6.6		11.8		13.1		10.8
As Adjusted		61.4		61.2		32.3		20.6		7.3		3.7
Total
As Reported		44.3		36.2		23.4		10.0		-3.3		-7.3
Billing Days Impact		-0.6		0.1		-0.4		0.2		0.5		2.2
Currency Impact		-3.6		2.3		5.7		10.2		11.9		9.9
As Adjusted		40.1		38.6		28.7		20.4		9.1		4.8

 

 

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SOURCE Robert Half

FAQ

What were Robert Half's Q4 2022 earnings results?

Robert Half reported Q4 2022 net income of $148 million, or $1.37 per share, on revenues of $1.727 billion.

How did Robert Half perform in 2022 compared to 2021?

In 2022, Robert Half achieved net income of $658 million and revenues of $7.238 billion, up from $599 million and $6.461 billion in 2021.

What insights did Robert Half's CEO provide about 2023?

CEO M. Keith Waddell expressed optimism about navigating the uncertain global economic landscape in 2023.

What recognition did Robert Half receive in 2022?

Robert Half was named one of the Best Workplaces for Parents™ and recognized by Forbes as one of the World's Top Female-Friendly Companies.