21.07.2022 22:05:00

ROBERT HALF REPORTS SECOND-QUARTER FINANCIAL RESULTS

MENLO PARK, Calif., July 21, 2022 /PRNewswire/ -- Robert Half International Inc. (NYSE: RHI) today reported revenues and earnings for the second quarter ended June 30, 2022.

Robert Half (PRNewsfoto/Robert Half)

For the quarter ended June 30, 2022, net income was $176 million, or $1.60 per share, on revenues of $1.863 billion. Net income for the prior year's second quarter was $149 million, or $1.33 per share, on revenues of $1.581 billion.

For the six months ended June 30, 2022, net income was $344 million, or $3.12 per share, on revenues of $3.678 billion. For the six months ended June 30, 2021, net income was $260 million, or $2.32 per share, on revenues of $2.979 billion.

"We are pleased to once again report very strong results, which continue to reflect a robust global labor market and demand environment," said M. Keith Waddell, president and chief executive officer of Robert Half. "Talent solutions led the way with permanent placement and contract talent solutions growing 39 percent and 19 percent, respectively, on a year-over-year basis. Core Protiviti solutions also remained strong. Return on invested capital for the Company was 48 percent in the second quarter.

"We are proud to have been recently ranked number one by Forbes on three prestigious lists — America's Best Professional Recruiting Firms, America's Best Temporary Staffing Firms and America's Best Executive Recruiting Firms. This is the first time any company has placed first in all three categories. This is a credit to all of our employees and their incredible drive to deliver outstanding service to our clients and candidates," 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 800-289-0720 (+1-646-828-8073 outside the United States and Canada). The confirmation code to access the call is 1432797.

A taped recording of this call will be available for replay beginning at approximately 8 p.m. EDT on July 21 and ending at 8 p.m. EDT on August 20. The dial-in number for the replay is 888-203-1112 (+1-719-457-0820 outside the United States and Canada). To access the replay, enter conference code 1432797. 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
June 30,


Six Months Ended
June 30,


2022


2021


2022


2021


(Unaudited)


(Unaudited)









Service revenues

$  1,862,827


$  1,580,581


$  3,677,661


$  2,978,961

Costs of services

1,047,280


915,709


2,090,268


1,752,378









Gross margin

815,547


664,872


1,587,393


1,226,583









Selling, general and administrative expenses

509,394


488,093


1,023,588


911,155

(Income) loss from investments held in employee deferred compensation

trusts (which is completely offset by related costs and expenses)

65,622


(27,810)


95,623


(39,797)

Amortization of intangible assets

416


576


833


1,152

Interest (income) expense, net

(718)


151


(884)


105









Income before income taxes

240,833


203,862


468,233


353,968

Provision for income taxes

65,012


54,649


124,173


94,157









Net income

$    175,821


$    149,213


$    344,060


$    259,811









Diluted net income per share

$          1.60


$          1.33


$          3.12


$          2.32









Shares:








Basic

108,833


110,861


109,025


111,141

Diluted

109,696


111,889


110,143


112,191

 

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




Six Months Ended June 30,



2022


2021



(Unaudited)

SELECTED CASH FLOW INFORMATION:





Depreciation


$     22,907


$     27,715

Capitalized cloud computing implementation costs


$     19,540


$     16,236

Capital expenditures


$     35,275


$     16,114

Open market repurchases of common stock (shares)


1,386


1,514

 



June 30,



2022


2021



(Unaudited)

SELECTED BALANCE SHEET INFORMATION:





Cash and cash equivalents


$     590,909


$     542,805

Accounts receivable, net


$  1,091,598


$     907,947

Total assets


$  2,933,835


$  2,741,368

Total current liabilities


$  1,266,873


$  1,196,312

Total stockholders' equity


$  1,467,668


$  1,259,250

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 Office Team, 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

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

Administrative and customer support

239,979


136,299


173,685


214,985


220,467


263,192


279,370


295,872


284,906


274,141

Technology

196,652


162,028


161,007


175,730


172,239


194,233


215,500


213,414


213,327


218,190

Elimination of intersegment revenues

(46,273)


(41,514)


(59,816)


(92,393)


(103,818)


(143,036)


(172,534)


(161,004)


(144,200)


(137,548)

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

Permanent placement talent solutions

120,489


71,030


87,203


91,387


111,703


143,640


156,444


158,133


186,782


200,096

Protiviti

294,082


283,910


321,303


362,261


397,402


458,660


501,421


495,298


472,329


497,038

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





















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 expense; 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) expense, net 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 SUMMARY OF OPERATIONS RECONCILIATION (UNAUDITED)
(in thousands)



Quarter Ended June 30,


Relationships


2022


2021


2022


2021


2022


2021


Reported


Adjustments


Adjusted (1)


Reported


Adjustments


Adjusted (1)


Reported


Adjusted

SERVICE REVENUES:




















Finance and accounting

$     810,910


$               —


$     810,910


$     663,892


$               —


$     663,892


43.5 %


41.9 %


43.5 %


41.9 %

Administrative and customer support

274,141



274,141


263,192



263,192


14.7 %


16.7 %


14.7 %


16.7 %

Technology

218,190



218,190


194,233



194,233


11.7 %


12.3 %


11.7 %


12.3 %

Elimination of intersegment

revenues

(137,548)



(137,548)


(143,036)



(143,036)


(7.3 %)


(9.0 %)


(7.3 %)


(9.0 %)

Total contract talent solutions

1,165,693



1,165,693


978,281



978,281


62.6 %


61.9 %


62.6 %


61.9 %

Permanent placement talent solutions

200,096



200,096


143,640



143,640


10.7 %


9.1 %


10.7 %


9.1 %

Protiviti

497,038



497,038


458,660



458,660


26.7 %


29.0 %


26.7 %


29.0 %

Total

$ 1,862,827


$               —


$ 1,862,827


$ 1,580,581


$               —


$ 1,580,581


100.0 %


100.0 %


100.0 %


100.0 %





















GROSS MARGIN:




















Contract talent solutions

$     464,853


$               —


$     464,853


$     388,070


$               —


$     388,070


39.9 %


39.7 %


39.9 %


39.7 %

Permanent placement talent solutions

199,664



199,664


143,454



143,454


99.8 %


99.9 %


99.8 %


99.9 %

Protiviti

151,030


(11,413)


139,617


133,348


4,153


137,501


30.4 %


29.1 %


28.1 %


30.0 %

Total

$     815,547


$     (11,413)


$     804,134


$     664,872


$         4,153


$     669,025


43.8 %


42.1 %


43.2 %


42.3 %





















SELLING GENERAL AND

ADMINISTRATIVE EXPENSE:




















Contract talent solutions

$     284,090


$       47,196


$     331,286


$     315,114


$     (21,054)


$     294,060


24.4 %


32.2 %


28.4 %


30.1 %

Permanent placement talent solutions

155,900


7,013


162,913


115,458


(2,603)


112,855


77.9 %


80.4 %


81.4 %


78.6 %

Protiviti

69,404



69,404


57,521



57,521


14.0 %


12.5 %


14.0 %


12.5 %

Total

$     509,394


$       54,209


$     563,603


$     488,093


$     (23,657)


$     464,436


27.3 %


30.9 %


30.3 %


29.4 %





















OPERATING/SEGMENT INCOME:




















Contract talent solutions

$     180,763


$     (47,196)


$     133,567


$       72,956


$       21,054


$       94,010


15.5 %


7.5 %


11.5 %


9.6 %

Permanent placement talent solutions

43,764


(7,013)


36,751


27,996


2,603


30,599


21.9 %


19.5 %


18.4 %


21.3 %

Protiviti

81,626


(11,413)


70,213


75,827


4,153


79,980


16.4 %


16.5 %


14.1 %


17.4 %

Total

$     306,153


$     (65,622)


$     240,531


$     176,779


$       27,810


$     204,589


16.4 %


11.2 %


12.9 %


12.9 %

(Income) loss from investments held in

employee deferred compensation trusts

65,622


(65,622)



(27,810)


27,810



3.5 %


(1.7 %)



Amortization of intangible assets

416



416


576



576


0.0 %


0.0 %


0.0 %


0.0 %

Interest (income) expense, net

(718)



(718)


151



151


0.0 %


0.0 %


0.0 %


0.0 %

Income before income taxes

$     240,833


$               —


$     240,833


$     203,862


$               —


$     203,862


12.9 %


12.9 %


12.9 %


12.9 %


(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) loss is presented separately. The non-GAAP financial measures shown in the table above are adjusted to reclassify investment (income) loss from investments held in employee deferred compensation trusts to the same line item, which 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 SUMMARY OF OPERATIONS RECONCILIATION (UNAUDITED)
(in thousands)



Six Months Ended June 30,


Relationships


2022


2021


2022


2021


2022


2021


Reported


Adjustments


Adjusted (1)


Reported


Adjustments


Adjusted (1)


Reported


Adjusted

SERVICE REVENUES:




















Finance and accounting

$ 1,612,600


$               —


$ 1,612,600


$ 1,264,326


$               —


$ 1,264,326


43.9 %


42.5 %


43.9 %


42.5 %

Administrative and customer support

559,047



559,047


483,665



483,665


15.2 %


16.2 %


15.2 %


16.2 %

Technology

431,517



431,517


366,406



366,406


11.7 %


12.3 %


11.7 %


12.3 %

Elimination of intersegment

revenues

(281,748)



(281,748)


(246,840)



(246,840)


(7.7 %)


(8.3 %)


(7.7 %)


(8.3 %)

Total contract talent solutions

2,321,416



2,321,416


1,867,557



1,867,557


63.1 %


62.7 %


63.1 %


62.7 %

Permanent placement talent solutions

386,878



386,878


255,344



255,344


10.5 %


8.6 %


10.5 %


8.6 %

Protiviti

969,367



969,367


856,060



856,060


26.4 %


28.7 %


26.4 %


28.7 %

Total

$ 3,677,661


$               —


$ 3,677,661


$ 2,978,961


$               —


$ 2,978,961


100.0 %


100.0 %


100.0 %


100.0 %





















GROSS MARGIN:




















Contract talent solutions

$     926,714


$               —


$     926,714


$     733,003


$               —


$     733,003


39.9 %


39.2 %


39.9 %


39.2 %

Permanent placement talent solutions

386,113



386,113


254,951



254,951


99.8 %


99.8 %


99.8 %


99.8 %

Protiviti

274,566


(15,259)


259,307


238,629


5,842


244,471


28.3 %


27.9 %


26.8 %


28.6 %

Total

$ 1,587,393


$     (15,259)


$ 1,572,134


$ 1,226,583


$         5,842


$ 1,232,425


43.2 %


41.2 %


42.7 %


41.4 %





















SELLING GENERAL AND

ADMINISTRATIVE EXPENSE:




















Contract talent solutions

$     589,424


$       70,477


$     659,901


$     593,627


$     (30,312)


$     563,315


25.4 %


31.8 %


28.4 %


30.2 %

Permanent placement talent solutions

302,147


9,887


312,034


210,360


(3,643)


206,717


78.1 %


82.4 %


80.7 %


81.0 %

Protiviti

132,017



132,017


107,168



107,168


13.6 %


12.5 %


13.6 %


12.5 %

Total

$ 1,023,588


$       80,364


$ 1,103,952


$     911,155


$     (33,955)


$     877,200


27.8 %


30.6 %


30.0 %


29.4 %





















OPERATING/SEGMENT INCOME:




















Contract talent solutions

$     337,290


$     (70,477)


$     266,813


$     139,376


$       30,312


$     169,688


14.5 %


7.5 %


11.5 %


9.1 %

Permanent placement talent solutions

83,966


(9,887)


74,079


44,591


3,643


48,234


21.7 %


17.5 %


19.1 %


18.9 %

Protiviti

142,549


(15,259)


127,290


131,461


5,842


137,303


14.7 %


15.4 %


13.1 %


16.0 %

Total

$     563,805


$     (95,623)


$     468,182


$     315,428


$       39,797


$     355,225


15.3 %


10.6 %


12.7 %


11.9 %

(Income) loss from investments held in

employee deferred compensation trusts

95,623


(95,623)



(39,797)


39,797



2.6 %


(1.3 %)



Amortization of intangible assets

833



833


1,152



1,152


0.0 %


0.0 %


0.0 %


0.0 %

Interest (income) expense, net

(884)



(884)


105



105


0.0 %


0.0 %


0.0 %


0.0 %

Income before income taxes

$     468,233


$               —


$     468,233


$     353,968


$               —


$     353,968


12.7 %


11.9 %


12.7 %


11.9 %


(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) loss is presented separately. The non-GAAP financial measures shown in the table above are adjusted to reclassify investment (income) loss from investments held in employee deferred compensation trusts to the same line item, which 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 RECONCILIATION (UNAUDITED):




Quarter Ended June 30,


Six Months Ended June 30,



2022


2021


2022


2021










Income before income taxes


$   240,833


$   203,862


$   468,233


$   353,968

Interest (income) expense, net


(718)


151


(884)


105

Amortization of intangible assets


416


576


833


1,152

Combined segment income


$   240,531


$   204,589


$   468,182


$   355,225

 

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



Q1


Q2


Q3


Q4


Q1


Q2


Q1


Q2


Q3


Q4


Q1


Q2

Global

























Finance and accounting


-14.4


33.7


44.6


39.1


33.5


22.1


-14.5


31.0


43.5


39.8


34.6


24.4

Administrative and customer support


-8.1


93.1


60.8


37.6


29.2


4.2


-8.7


89.5


60.0


38.4


30.5


6.3

Technology


-12.4


19.9


33.8


21.4


23.9


12.3


-12.4


17.9


33.1


21.8


24.6


13.9

Elimination of intersegment revenues (1)


124.4


244.5


188.4


74.3


38.9


-3.8


127.3


240.9


187.5


75.1


40.1


-1.9

Total contract talent solutions


-18.6


29.9


35.0


31.3


30.0


19.2


-18.9


27.2


34.0


31.9


31.0


21.3

Permanent placement talent solutions


-7.3


102.2


79.4


73.0


67.2


39.3


-8.1


96.9


77.7


73.8


68.8


42.6

Total talent solutions


-17.5


36.1


39.4


35.3


34.1


21.7


-17.8


33.2


38.4


36.0


35.2


24.0

Protiviti


35.1


61.6


56.1


36.7


18.9


8.4


34.7


58.8


55.1


37.4


20.0


10.8

Total


-7.2


42.6


43.9


35.7


29.8


17.9


-7.6


39.7


42.9


36.3


30.9


20.2


























United States

























Contract talent solutions


-20.3


27.5


35.5


33.4


33.4


22.7


-19.4


27.7


35.5


33.6


33.4


22.7

Permanent placement talent solutions


-12.4


109.3


85.1


78.6


78.3


44.3


-11.4


109.6


85.1


78.9


78.3


44.3

Total talent solutions


-19.6


33.6


40.0


37.2


37.8


25.2


-18.6


33.8


40.0


37.4


37.8


25.2

Protiviti


35.5


62.6


53.7


31.7


17.0


8.3


37.1


62.8


53.7


31.9


17.0


8.3

Total


-8.7


41.1


43.8


35.6


31.7


20.2


-7.6


41.3


43.8


35.8


31.7


20.2


























International

























Contract talent solutions


-12.3


38.6


33.0


24.0


18.5


7.0


-17.0


25.1


29.1


26.3


23.5


16.6

Permanent placement talent solutions


5.2


87.8


67.3


61.9


44.7


28.0


0.3


70.5


62.1


64.0


50.0


39.0

Total talent solutions


-10.1


44.8


37.7


29.2


22.5


10.5


-14.8


30.9


33.7


31.6


27.5


20.3

Protiviti


33.8


57.6


65.9


58.3


26.2


8.6


26.1


43.5


61.4


61.2


32.3


20.6

Total


-2.0


48.0


44.3


36.2


23.4


10.0


-7.2


33.9


40.1


38.6


28.7


20.4


(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



Q1 2021


Q2 2021


Q3 2021


Q4 2021


Q1 2022


 Q2 2022

Finance and accounting













As Reported


-14.4


33.7


44.6


39.1


33.5


22.1

Billing Days Impact


0.7


-0.4


-0.3


0.3


-0.2


0.0

Currency Impact


-0.8


-2.3


-0.8


0.4


1.3


2.3

As Adjusted


-14.5


31.0


43.5


39.8


34.6


24.4

Administrative and customer support













As Reported


-8.1


93.1


60.8


37.6


29.2


4.2

Billing Days Impact


1.1


0.0


-0.2


0.1


-0.2


0.0

Currency Impact


-1.7


-3.6


-0.6


0.7


1.5


2.1

As Adjusted


-8.7


89.5


60.0


38.4


30.5


6.3

Technology













As Reported


-12.4


19.9


33.8


21.4


23.9


12.3

Billing Days Impact


1.1


0.0


-0.1


0.1


-0.2


0.0

Currency Impact


-1.1


-2.0


-0.6


0.3


0.9


1.6

As Adjusted


-12.4


17.9


33.1


21.8


24.6


13.9

Elimination of intersegment revenues













As Reported


124.4


244.5


188.4


74.3


38.9


-3.8

Billing Days Impact


2.7


0.0


-0.4


0.1


-0.2


0.0

Currency Impact


0.2


-3.6


-0.5


0.7


1.4


1.9

As Adjusted


127.3


240.9


187.5


75.1


40.1


-1.9

Total contract talent solutions













As Reported


-18.6


29.9


35.0


31.3


30.0


19.2

Billing Days Impact


1.0


0.0


-0.2


0.1


-0.2


0.0

Currency Impact


-1.3


-2.7


-0.8


0.5


1.2


2.1

As Adjusted


-18.9


27.2


34.0


31.9


31.0


21.3

Permanent placement talent solutions













As Reported


-7.3


102.2


79.4


73.0


67.2


39.3

Billing Days Impact


1.1


0.0


-0.2


0.1


-0.3


0.0

Currency Impact


-1.9


-5.3


-1.5


0.7


1.9


3.3

As Adjusted


-8.1


96.9


77.7


73.8


68.8


42.6

Total talent solutions













As Reported


-17.5


36.1


39.4


35.3


34.1


21.7

Billing Days Impact


1.1


0.0


-0.2


0.2


-0.2


0.0

Currency Impact


-1.4


-2.9


-0.8


0.5


1.3


2.3

As Adjusted


-17.8


33.2


38.4


36.0


35.2


24.0

Protiviti













As Reported


35.1


61.6


56.1


36.7


18.9


8.4

Billing Days Impact


1.6


0.0


-0.3


0.2


-0.2


0.0

Currency Impact


-2.0


-2.8


-0.7


0.5


1.3


2.4

As Adjusted


34.7


58.8


55.1


37.4


20.0


10.8

Total













As Reported


-7.2


42.6


43.9


35.7


29.8


17.9

Billing Days Impact


1.1


0.0


-0.2


0.1


-0.2


0.0

Currency Impact


-1.5


-2.9


-0.8


0.5


1.3


2.3

As Adjusted


-7.6


39.7


42.9


36.3


30.9


20.2

 

ROBERT HALF INTERNATIONAL INC.
NON-GAAP FINANCIAL MEASURES
REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED): 


Year-Over-Year Revenue Growth – UNITED STATES



Q1 2021


Q2 2021


Q3 2021


Q4 2021


Q1 2022


 Q2 2022

Contract talent solutions





As Reported


-20.3


27.5


35.5


33.4


33.4


22.7

Billing Days Impact


0.9


0.2


0.0


0.2


0.0


0.0

Currency Impact







As Adjusted


-19.4


27.7


35.5


33.6


33.4


22.7














Permanent placement talent solutions













As Reported


-12.4


109.3


85.1


78.6


78.3


44.3

Billing Days Impact


1.0


0.3


0.0


0.3


0.0


0.0

Currency Impact







As Adjusted


-11.4


109.6


85.1


78.9


78.3


44.3














Total talent solutions













As Reported


-19.6


33.6


40.0


37.2


37.8


25.2

Billing Days Impact


1.0


0.2


0.0


0.2


0.0


0.0

Currency Impact







As Adjusted


-18.6


33.8


40.0


37.4


37.8


25.2














Protiviti













As Reported


35.5


62.6


53.7


31.7


17.0


8.3

Billing Days Impact


1.6


0.2



0.2


0.0


0.0

Currency Impact







As Adjusted


37.1


62.8


53.7


31.9


17.0


8.3














Total













As Reported


-8.7


41.1


43.8


35.6


31.7


20.2

Billing Days Impact


1.1


0.2


0.0


0.2


0.0


0.0

Currency Impact







As Adjusted


-7.6


41.3


43.8


35.8


31.7


20.2

 

ROBERT HALF INTERNATIONAL INC.
NON-GAAP FINANCIAL MEASURES
REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED): 


Year-Over-Year Revenue Growth – INTERNATIONAL



Q1 2021


Q2 2021


Q3 2021


Q4 2021


Q1 2022


 Q2 2022

Contract talent solutions





As Reported


-12.3


38.6


33.0


24.0


18.5


7.0

Billing Days Impact


1.4


-0.8


-0.5


0.1


-0.4


0.2

Currency Impact


-6.1


-12.7


-3.4


2.2


5.4


9.4

As Adjusted


-17.0


25.1


29.1


26.3


23.5


16.6














Permanent placement talent solutions













As Reported


5.2


87.8


67.3


61.9


44.7


28.0

Billing Days Impact


1.7


-1.1


-0.6


0.1


-0.5


0.2

Currency Impact


-6.6


-16.2


-4.6


2.0


5.8


10.8

As Adjusted


0.3


70.5


62.1


64.0


50.0


39.0














Total talent solutions













As Reported


-10.1


44.8


37.7


29.2


22.5


10.5

Billing Days Impact


1.5


-0.8


-0.5


0.2


-0.4


0.1

Currency Impact


-6.2


-13.1


-3.5


2.2


5.4


9.7

As Adjusted


-14.8


30.9


33.7


31.6


27.5


20.3














Protiviti













As Reported


33.8


57.6


65.9


58.3


26.2


8.6

Billing Days Impact


2.1


-0.8


-0.7


0.1


-0.5


0.2

Currency Impact


-9.8


-13.3


-3.8


2.8


6.6


11.8

As Adjusted


26.1


43.5


61.4


61.2


32.3


20.6














Total













As Reported


-2.0


48.0


44.3


36.2


23.4


10.0

Billing Days Impact


1.6


-0.9


-0.6


0.1


-0.4


0.2

Currency Impact


-6.8


-13.2


-3.6


2.3


5.7


10.2

As Adjusted


-7.2


33.9


40.1


38.6


28.7


20.4

 

 

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SOURCE Robert Half

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