ROBERT HALF REPORTS THIRD-QUARTER FINANCIAL RESULTS

Rhea-AI Summary

Robert Half International Inc. (NYSE: RHI) reported third-quarter results for the period ending September 30, 2022, with net income of $166 million, or $1.53 per share, from revenues of $1.833 billion. This represents a 7% increase in revenue year-over-year compared to $1.713 billion in Q3 2021. For the nine months ending September 30, 2022, net income was $510 million ($4.65 per share) on revenues of $5.511 billion, up from $431 million ($3.85 per share) on $4.692 billion in the same period last year. The company noted strong growth in permanent placements and high returns on invested capital at 45%.

Positive

• 7% year-over-year revenue growth in Q3 2022.
• Net income for the nine-month period increased to $510 million.
• Permanent placement revenue grew by 17% in Q3.
• Return on invested capital of 45% in Q3.

Negative

• Net income decreased slightly from $171 million in Q3 2021 to $166 million in Q3 2022.

MENLO PARK, Calif., Oct. 20, 2022 /PRNewswire/ -- Robert Half International Inc. (NYSE: RHI) today reported revenues and earnings for the third quarter ended September 30, 2022.

For the quarter ended September 30, 2022, net income was $166 million, or $1.53 per share, on revenues of $1.833 billion. Net income for the prior year's third quarter was $171 million, or $1.53 per share, on revenues of $1.713 billion.

For the nine months ended September 30, 2022, net income was $510 million, or $4.65 per share, on revenues of $5.511 billion. For the nine months ended September 30, 2021, net income was $431 million, or $3.85 per share, on revenues of $4.692 billion.

"We are pleased to report third-quarter year-over-year revenue growth of 7 percent (10 percent adjusted for currency) over and above the very strong growth of 44 percent in the same quarter last year," said M. Keith Waddell, president and chief executive officer of Robert Half. "Permanent placement led the way, growing 17 percent (20 percent adjusted for currency), and Protiviti revenues reached new all-time highs. Return on invested capital for the Company was 45 percent in the third quarter.

"We are proud to have received several new accolades this quarter. We were named by FORTUNE as one of the Best Workplaces for Women and by Forbes as one of the World's Best Employers. The Robert Half Mobile App has been recognized for its excellence in innovation, receiving five awards in recent months — including a Gold Stevie. None of this recognition would be possible without the dedication and commitment of our employees across the globe," Waddell concluded.

Robert Half management will conduct a conference call today at 5 p.m. EDT. 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 800-289-0438 (+1-323-794-2423 outside the United States and Canada). The confirmation code to access the call is 8819341.

A taped recording of this call will be available for replay beginning at approximately 8 p.m. EDT on October 20 and ending at 8 p.m. EST on November 17. To access the replay, visit www.webcasts.com/RobertHalfQ32022. 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Unaudited)				(Unaudited)
Service revenues	$  1,833,455		$  1,712,566		$  5,511,116		$  4,691,527
Costs of services	1,045,846		987,239		3,136,114		2,739,618
Gross margin	787,609		725,327		2,375,002		1,951,909
Selling, general and administrative expenses	548,579		495,576		1,572,167		1,406,731
(Income) loss from investments held in employee deferred compensation trusts (which is completely offset by related costs and expenses)	15,335		1,759		110,958		(38,039)
Amortization of intangible assets	417		572		1,250		1,724
Interest income, net	(2,346)		(238)		(3,230)		(145)
Income before income taxes	225,624		227,658		693,857		581,638
Provision for income taxes	59,418		56,787		183,591		150,956
Net income	$   166,206		$   170,871		$   510,266		$   430,682
Diluted net income per share	$          1.53		$          1.53		$          4.65		$          3.85
Shares:
Basic	107,855		110,176		108,630		110,816
Diluted	108,618		111,490		109,630		111,954

 

ROBERT HALF INTERNATIONAL INC
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
		Nine Months Ended September 30,
		2022		2021
		(Unaudited)
SELECTED CASH FLOW INFORMATION:
Depreciation		$      34,769		$      40,536
Capitalized cloud computing implementation costs		$      29,697		$      23,735
Capital expenditures		$      48,637		$      24,797
Open market repurchases of common stock (shares)		2,493		2,254

 

		September 30,
		2022		2021
		(Unaudited)
SELECTED BALANCE SHEET INFORMATION:
Cash and cash equivalents		$    593,348		$    633,719
Accounts receivable, net		$ 1,101,305		$ 1,005,633
Total assets		$ 2,910,585		$ 2,931,718
Total current liabilities		$ 1,234,249		$ 1,341,602
Total stockholders' equity		$ 1,490,917		$ 1,316,043

 

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
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
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
Technology	196,652		162,028		161,007		175,730		172,239		194,233		215,500		213,414		213,327		218,190		216,735
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)
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
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
Protiviti	294,082		283,910		321,303		362,261		397,402		458,660		501,421		495,298		472,329		497,038		511,376
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

 

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; segment income; combined segment income; and as adjusted revenue growth rates.

The following measures: adjusted gross margin; adjusted selling, general and administrative expenses; and segment income 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.

Variations in the Company's financial results include the impact of changes in foreign currency exchange rates and billing days. The Company provides "as adjusted" revenue growth calculations to remove the impact of these items. These calculations show the year-over-year revenue growth rates for the Company's functional specializations and segments on both a reported basis and also on an as adjusted basis for global, U.S. and international operations. This information is presented for each of the six most recent quarters. The Company has provided 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 Company expresses year-over-year revenue changes as calculated percentages using the same number of billing days and constant currency exchange rates.

In order to calculate constant currency revenue growth rates, as reported amounts are retranslated using foreign currency exchange rates from the prior year's comparable period. Management then 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. In order to remove the fluctuations caused by comparable periods having different billing days, the Company calculates same billing day revenue growth rates by dividing each comparative period's reported revenues by the calculated number of billing days for that period to arrive at a per billing day amount. Same billing day growth rates are then calculated based upon the per billing day amounts. The term "as adjusted" means that the impact of different billing days and currency fluctuations are removed from the revenue growth rate calculation.

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 September 30,								Relationships								Nine Months Ended September 30,								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	$  449,579		$  421,419		$  449,579		$  421,419		39.4 %		40.0 %		39.4 %		40.0 %		$  1,376,293		$  1,154,420		$  1,376,293		$  1,154,420		39.8 %		39.5 %		39.8 %		39.5 %
Permanent placement talent solutions	182,034		156,170		182,034		156,170		99.8 %		99.8 %		99.8 %		99.8 %		568,147		411,122		568,147		411,122		99.8 %		99.8 %		99.8 %		99.8 %
Protiviti	155,996		147,738		153,296		147,461		30.5 %		29.5 %		30.0 %		29.4 %		430,562		386,367		412,603		391,932		29.1 %		28.5 %		27.9 %		28.9 %
Total	$  787,609		$  725,327		$  784,909		$  725,050		43.0 %		42.4 %		42.8 %		42.3 %		$  2,375,002		$  1,951,909		$  2,357,043		$  1,957,474		43.1 %		41.6 %		42.8 %		41.7 %

The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the quarters ended September 30, 2022 and 2021:

	Quarter Ended September 30, 2022												Quarter Ended September 30, 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	$  449,579	39.4 %		$  182,034	99.8 %		$  155,996	30.5 %		$  787,609	43.0 %		$  421,419	40.0 %		$  156,170	99.8 %		$  147,738	29.5 %		$  725,327	42.4 %
Adjustments (1)	—	—		—	—		(2,700)	(0.5 %)		(2,700)	(0.2 %)		—	—		—	—		(277)	(0.1 %)		(277)	(0.1 %)
As Adjusted	$  449,579	39.4 %		$  182,034	99.8 %		$  153,296	30.0 %		$  784,909	42.8 %		$  421,419	40.0 %		$  156,170	99.8 %		$  147,461	29.4 %		$  725,050	42.3 %

The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the nine months ended September 30, 2022 and 2021:

	Nine Months Ended September 30, 2022												Nine Months Ended September 30, 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	$  1,376,293	39.8 %		$  568,147	99.8 %		$  430,562	29.1 %		$  2,375,002	43.1 %		$  1,154,420	39.5 %		$  411,122	99.8 %		$  386,367	28.5 %		$  1,951,909	41.6 %
Adjustments (1)	—	—		—	—		(17,959)	(1.2 %)		(17,959)	(0.3 %)		—	—		—	—		5,565	0.4 %		5,565	0.1 %
As Adjusted	$  1,376,293	39.8 %		$  568,147	99.8 %		$  412,603	27.9 %		$  2,357,043	42.8 %		$  1,154,420	39.5 %		$  411,122	99.8 %		$  391,932	28.9 %		$  1,957,474	41.7 %

(1)

Changes in the Company's deferred compensation obligations are included in selling, general and administrative expense or, in the case of Protiviti, costs of services, while the related investment income is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment income 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 to income before income taxes.

 

ROBERT HALF INTERNATIONAL INC
NON-GAAP FINANCIAL MEASURES
ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED):
(in thousands)
	Quarter Ended September 30,								Relationships								Nine Months Ended September 30,								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	$  318,462		$  310,112		$  329,531		$  311,409		27.9 %		29.4 %		28.9 %		29.5 %		$  907,886		$  903,739		$  989,432		$  874,723		26.2 %		30.9 %		28.6 %		29.9 %
Permanent placement talent solutions	148,290		124,955		149,856		125,140		81.3 %		79.9 %		82.2 %		80.0 %		450,437		335,316		461,890		331,858		79.1 %		81.4 %		81.1 %		80.6 %
Protiviti	81,827		60,509		81,827		60,509		16.0 %		12.1 %		16.0 %		12.1 %		213,844		167,676		213,844		167,676		14.4 %		12.4 %		14.4 %		12.4 %
Total	$  548,579		$  495,576		$  561,214		$  497,058		29.9 %		28.9 %		30.6 %		29.0 %		$  1,572,167		$  1,406,731		$  1,665,166		$  1,374,257		28.5 %		30.0 %		30.2 %		29.3 %

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 September 30, 2022 and 2021:

	Quarter Ended September 30, 2022												Quarter Ended September 30, 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	$  318,462	27.9 %		$  148,290	81.3 %		$    81,827	16.0 %		$  548,579	29.9 %		$  310,112	29.4 %		$  124,955	79.9 %		$    60,509	12.1 %		$  495,576	28.9 %
Adjustments (1)	11,069	1.0 %		1,566	0.9 %		—	—		12,635	0.7 %		1,297	0.1 %		185	0.1 %		—	—		1,482	0.1 %
As Adjusted	$  329,531	28.9 %		$  149,856	82.2 %		$    81,827	16.0 %		$  561,214	30.6 %		$  311,409	29.5 %		$  125,140	80.0 %		$    60,509	12.1 %		$  497,058	29.0 %

The following tables provide reconciliations of the non-GAAP adjusted selling, general and administrative expenses to reported selling, general and administrative expenses for the nine months ended September 30, 2022 and 2021:

	Nine Months Ended September 30, 2022												Nine Months Ended September 30, 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	$  907,886	26.2 %		$  450,437	79.1 %		$  213,844	14.4 %		$  1,572,167	28.5 %		$  903,739	30.9 %		$  335,316	81.4 %		$  167,676	12.4 %		$  1,406,731	30.0 %
Adjustments (1)	81,546	2.4 %		11,453	2.0 %		—	—		92,999	1.7 %		(29,016)	(1.0 %)		(3,458)	(0.8 %)		—	—		(32,474)	(0.7 %)
As Adjusted	$  989,432	28.6 %		$  461,890	81.1 %		$  213,844	14.4 %		$  1,665,166	30.2 %		$  874,723	29.9 %		$  331,858	80.6 %		$  167,676	12.4 %		$  1,374,257	29.3 %

(1)

Changes in the Company's deferred compensation obligations are included in selling, general and administrative expense or, in the case of Protiviti, costs of services, while the related investment income is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment income 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 to income before income taxes.

 

ROBERT HALF INTERNATIONAL INC
NON-GAAP FINANCIAL MEASURES
COMBINED SEGMENT INCOME (UNAUDITED):
(in thousands)
	Quarter Ended September 30,								Relationships								Nine Months Ended September 30,								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
Segment Income
Contract talent solutions	$  131,117		$  111,307		$  120,048		$  110,010		11.5 %		10.6 %		10.5 %		10.4 %		$  468,407		$  250,681		$  386,861		$  279,697		13.5 %		8.6 %		11.2 %		9.6 %
Permanent placement talent solutions	33,744		31,215		32,178		31,030		18.5 %		20.0 %		17.6 %		19.8 %		117,710		75,806		106,257		79,264		20.7 %		18.4 %		18.7 %		19.2 %
Protiviti	74,169		87,229		71,469		86,952		14.5 %		17.4 %		14.0 %		17.3 %		216,718		218,691		198,759		224,256		14.6 %		16.1 %		13.4 %		16.5 %
Total	$  239,030		$  229,751		$  223,695		$  227,992		13.0 %		13.4 %		12.2 %		13.3 %		$  802,835		$  545,178		$  691,877		$  583,217		14.6 %		11.6 %		12.6 %		12.4 %

The following tables provide reconciliations of the non-GAAP combined segment income to reported income before income taxes for the quarters and nine months ended September 30, 2022 and 2021:

	Quarter Ended September 30,								Nine Months Ended September 30,
	2022		% of Revenue		2021		% of Revenue		2022		% of Revenue		2021		% of Revenue
Income before income taxes	$  225,624		12.3 %		$  227,658		13.3 %		$  693,857		12.6 %		$  581,638		12.4 %
Interest income, net	(2,346)		(0.1 %)		(238)		0.0 %		(3,230)		0.0 %		(145)		0.0 %
Amortization of intangible assets	417		0.0 %		572		0.0 %		1,250		0.0 %		1,724		0.0 %
Combined segment income	$  223,695		12.2 %		$  227,992		13.3 %		$  691,877		12.6 %		$  583,217		12.4 %

 

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
		Q2		Q3		Q4		Q1		Q2		Q3		Q2		Q3		Q4		Q1		Q2		Q3
Global
Finance and accounting		33.7		44.6		39.1		33.5		22.1		9.9		31.0		43.5		39.8		34.6		24.4		12.8
Administrative and customer support		93.1		60.8		37.6		29.2		4.2		-10.3		89.5		60.0		38.4		30.5		6.3		-7.8
Technology		19.9		33.8		21.4		23.9		12.3		0.6		17.9		33.1		21.8		24.6		13.9		2.5
Elimination of intersegment revenues (1)		244.5		188.4		74.3		38.9		-3.8		-23.1		240.9		187.5		75.1		40.1		-1.9		-20.8
Total contract talent solutions		29.9		35.0		31.3		30.0		19.2		8.1		27.2		34.0		31.9		31.0		21.3		10.7
Permanent placement talent solutions		102.2		79.4		73.0		67.2		39.3		16.5		96.9		77.7		73.8		68.8		42.6		20.3
Total talent solutions		36.1		39.4		35.3		34.1		21.7		9.2		33.2		38.4		36.0		35.2		24.0		12.0
Protiviti		61.6		56.1		36.7		18.9		8.4		2.0		58.8		55.1		37.4		20.0		10.8		4.8
Total		42.6		43.9		35.7		29.8		17.9		7.1		39.7		42.9		36.3		30.9		20.2		9.9
United States
Contract talent solutions		27.5		35.5		33.4		33.4		22.7		11.3		27.7		35.5		33.6		33.4		22.7		11.3
Permanent placement talent solutions		109.3		85.1		78.6		78.3		44.3		22.4		109.6		85.1		78.9		78.3		44.3		22.4
Total talent solutions		33.6		40.0		37.2		37.8		25.2		12.6		33.8		40.0		37.4		37.8		25.2		12.6
Protiviti		62.6		53.7		31.7		17.0		8.3		4.1		62.8		53.7		31.9		17.0		8.3		4.1
Total		41.1		43.8		35.6		31.7		20.2		10.0		41.3		43.8		35.8		31.7		20.2		10.0
International
Contract talent solutions		38.6		33.0		24.0		18.5		7.0		-3.2		25.1		29.1		26.3		23.5		16.6		8.7
Permanent placement talent solutions		87.8		67.3		61.9		44.7		28.0		2.9		70.5		62.1		64.0		50.0		39.0		15.4
Total talent solutions		44.8		37.7		29.2		22.5		10.5		-2.2		30.9		33.7		31.6		27.5		20.3		9.8
Protiviti		57.6		65.9		58.3		26.2		8.6		-6.3		43.5		61.4		61.2		32.3		20.6		7.3
Total		48.0		44.3		36.2		23.4		10.0		-3.3		33.9		40.1		38.6		28.7		20.4		9.1

(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:

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. In order to calculate "Constant Currency" revenue growth rates, as reported amounts are retranslated using foreign exchange rates from the prior year's comparable period.
 

Billing Days. The "As Reported" revenue growth rates are based upon reported revenues. Management calculates a global, weighted-average number of billing days for each reporting period based upon inputs from all countries and all functional specializations. In order to remove the fluctuations caused by comparable periods having different billing days, the Company calculates "same billing day" revenue growth rates by dividing each comparative period's reported revenues by the calculated number of billing days for that period to arrive at a "per billing day" amount. The "same billing day" growth rates are then calculated based upon the "per billing day" amounts.

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
		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		Q3 2022
Finance and accounting
As Reported		33.7		44.6		39.1		33.5		22.1		9.9
Billing Days Impact		-0.4		-0.3		0.3		-0.2		0.0		0.2
Currency Impact		-2.3		-0.8		0.4		1.3		2.3		2.7
As Adjusted		31.0		43.5		39.8		34.6		24.4		12.8
Administrative and customer support
As Reported		93.1		60.8		37.6		29.2		4.2		-10.3
Billing Days Impact		0.0		-0.2		0.1		-0.2		0.0		0.1
Currency Impact		-3.6		-0.6		0.7		1.5		2.1		2.4
As Adjusted		89.5		60.0		38.4		30.5		6.3		-7.8
Technology
As Reported		19.9		33.8		21.4		23.9		12.3		0.6
Billing Days Impact		0.0		-0.1		0.1		-0.2		0.0		0.1
Currency Impact		-2.0		-0.6		0.3		0.9		1.6		1.8
As Adjusted		17.9		33.1		21.8		24.6		13.9		2.5
Elimination of intersegment revenues
As Reported		244.5		188.4		74.3		38.9		-3.8		-23.1
Billing Days Impact		0.0		-0.4		0.1		-0.2		0.0		0.2
Currency Impact		-3.6		-0.5		0.7		1.4		1.9		2.1
As Adjusted		240.9		187.5		75.1		40.1		-1.9		-20.8
Total contract talent solutions
As Reported		29.9		35.0		31.3		30.0		19.2		8.1
Billing Days Impact		0.0		-0.2		0.1		-0.2		0.0		0.1
Currency Impact		-2.7		-0.8		0.5		1.2		2.1		2.5
As Adjusted		27.2		34.0		31.9		31.0		21.3		10.7
Permanent placement talent solutions
As Reported		102.2		79.4		73.0		67.2		39.3		16.5
Billing Days Impact		0.0		-0.2		0.1		-0.3		0.0		0.2
Currency Impact		-5.3		-1.5		0.7		1.9		3.3		3.6
As Adjusted		96.9		77.7		73.8		68.8		42.6		20.3
Total talent solutions
As Reported		36.1		39.4		35.3		34.1		21.7		9.2
Billing Days Impact		0.0		-0.2		0.2		-0.2		0.0		0.1
Currency Impact		-2.9		-0.8		0.5		1.3		2.3		2.7
As Adjusted		33.2		38.4		36.0		35.2		24.0		12.0
Protiviti
As Reported		61.6		56.1		36.7		18.9		8.4		2.0
Billing Days Impact		0.0		-0.3		0.2		-0.2		0.0		0.2
Currency Impact		-2.8		-0.7		0.5		1.3		2.4		2.6
As Adjusted		58.8		55.1		37.4		20.0		10.8		4.8
Total
As Reported		42.6		43.9		35.7		29.8		17.9		7.1
Billing Days Impact		0.0		-0.2		0.1		-0.2		0.0		0.2
Currency Impact		-2.9		-0.8		0.5		1.3		2.3		2.6
As Adjusted		39.7		42.9		36.3		30.9		20.2		9.9

 

ROBERT HALF INTERNATIONAL INC
NON-GAAP FINANCIAL MEASURES
REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
Year-Over-Year Revenue Growth – UNITED STATES
		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		Q3 2022
Contract talent solutions
As Reported		27.5		35.5		33.4		33.4		22.7		11.3
Billing Days Impact		0.2		0.0		0.2		0.0		0.0		0.0
Currency Impact		―		―		―		―		―		―
As Adjusted		27.7		35.5		33.6		33.4		22.7		11.3
Permanent placement talent solutions
As Reported		109.3		85.1		78.6		78.3		44.3		22.4
Billing Days Impact		0.3		0.0		0.3		0.0		0.0		0.0
Currency Impact		―		―		―		―		―		―
As Adjusted		109.6		85.1		78.9		78.3		44.3		22.4
Total talent solutions
As Reported		33.6		40.0		37.2		37.8		25.2		12.6
Billing Days Impact		0.2		0.0		0.2		0.0		0.0		0.0
Currency Impact		―		―		―		―		―		―
As Adjusted		33.8		40.0		37.4		37.8		25.2		12.6
Protiviti
As Reported		62.6		53.7		31.7		17.0		8.3		4.1
Billing Days Impact		0.2		0.0		0.2		0.0		0.0		0.0
Currency Impact		―		―		―		―		―		―
As Adjusted		62.8		53.7		31.9		17.0		8.3		4.1
Total
As Reported		41.1		43.8		35.6		31.7		20.2		10.0
Billing Days Impact		0.2		0.0		0.2		0.0		0.0		0.0
Currency Impact		―		―		―		―		―		―
As Adjusted		41.3		43.8		35.8		31.7		20.2		10.0

 

ROBERT HALF INTERNATIONAL INC
NON-GAAP FINANCIAL MEASURES
REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
Year-Over-Year Revenue Growth – INTERNATIONAL
		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		Q3 2022
Contract talent solutions
As Reported		38.6		33.0		24.0		18.5		7.0		-3.2
Billing Days Impact		-0.8		-0.5		0.1		-0.4		0.2		0.5
Currency Impact		-12.7		-3.4		2.2		5.4		9.4		11.4
As Adjusted		25.1		29.1		26.3		23.5		16.6		8.7
Permanent placement talent solutions
As Reported		87.8		67.3		61.9		44.7		28.0		2.9
Billing Days Impact		-1.1		-0.6		0.1		-0.5		0.2		0.6
Currency Impact		-16.2		-4.6		2.0		5.8		10.8		11.9
As Adjusted		70.5		62.1		64.0		50.0		39.0		15.4
Total talent solutions
As Reported		44.8		37.7		29.2		22.5		10.5		-2.2
Billing Days Impact		-0.8		-0.5		0.2		-0.4		0.1		0.5
Currency Impact		-13.1		-3.5		2.2		5.4		9.7		11.5
As Adjusted		30.9		33.7		31.6		27.5		20.3		9.8
Protiviti
As Reported		57.6		65.9		58.3		26.2		8.6		-6.3
Billing Days Impact		-0.8		-0.7		0.1		-0.5		0.2		0.5
Currency Impact		-13.3		-3.8		2.8		6.6		11.8		13.1
As Adjusted		43.5		61.4		61.2		32.3		20.6		7.3
Total
As Reported		48.0		44.3		36.2		23.4		10.0		-3.3
Billing Days Impact		-0.9		-0.6		0.1		-0.4		0.2		0.5
Currency Impact		-13.2		-3.6		2.3		5.7		10.2		11.9
As Adjusted		33.9		40.1		38.6		28.7		20.4		9.1

 

 

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SOURCE Robert Half

FAQ

What were Robert Half's earnings for Q3 2022?

Robert Half reported net income of $166 million, or $1.53 per share, for Q3 2022.

How did Robert Half's revenues change in Q3 2022?

Revenues increased by 7% year-over-year to $1.833 billion in Q3 2022.

What is Robert Half's guidance for future growth?

The company reported strong performance in permanent placements and high returns on invested capital, indicating a positive outlook.

What were Robert Half's revenues for the first nine months of 2022?

For the first nine months of 2022, Robert Half reported revenues of $5.511 billion.

What recognition has Robert Half received recently?

Robert Half was named one of the Best Workplaces for Women by FORTUNE and recognized by Forbes as one of the World's Best Employers.