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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

 ____________________

FORM 8-K

 ____________________

 CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 26, 2023

 ____________________

Robert Half International Inc.

(Exact name of registrant as specified in its charter)

____________________

 

Delaware

01-10427

94-1648752

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

 

2884 Sand Hill Road, Suite 200,

Menlo Park,

CA

94025

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (650) 234-6000

NO CHANGE

(Former name or former address, if changed since last report.)

 ____________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, Par Value $.001 per Share			RHI			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).     Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐

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Item 2.02			Results of Operations and Financial Condition.

On January 26, 2023, Robert Half International Inc. issued a press release reporting earnings for the fourth fiscal quarter of 2022. A copy of the press release is attached hereto as Exhibit 99.1.

The foregoing information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference in any filing under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such future filing.

Item 9.01			Financial Statements and Exhibits.

(d)           Exhibits

Exhibit						Description
99.1						Robert Half International Inc. January 26, 2023 Press Release.
104						Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Robert Half International Inc.

Date: January 26, 2023

By:

/s/ Michael C. Buckley

Name:

Michael C. Buckley

Title:

Executive Vice President, Chief Financial Officer

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

Contact:

M. Keith Waddell President and Chief Executive Officer (650) 234-6000

ROBERT HALF REPORTS FOURTH-QUARTER FINANCIAL RESULTS

MENLO PARK, Calif., January 26, 2023 — Robert Half International Inc. (NYSE symbol: 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.

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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

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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

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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

 

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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

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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.

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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.

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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.

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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		%

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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.

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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

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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

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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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