SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________ FORM 10-Q ______________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM to . Commission File Number 1-10427 ROBERT HALF INTERNATIONAL INC. (Exact name of registrant as specified in its charter) ...

Robert Half International Inc. (NYSE:RHI) Q3 2022 Earnings Conference Call October 20, 2022 5:00 PM ET Company Participants Keith Waddell - Vice Chairman, President and Chief Executive Officer Michael Buckley - Executive Vice President and Chief Financial Officer Conference Call Participants Mark Marcon - Robert W. Baird & Co. Andrew Steinerman - JPMorgan Chase & Co. Jasper Bibb - Truist Securities, Inc. Kevin McVeigh - Credit Suisse AG George Tong - Goldman Sachs Group, Inc. Heather Balsky - Bank of Americ ...

[Form Details](index=1&type=section&id=Form%20Details) Key identification details for Robert Half International Inc., including filing status, incorporation, and shares outstanding [Registrant Information](index=1&type=section&id=Registrant%20Information) Key identification details for Robert Half International Inc., including filing status, incorporation, and shares outstanding - Robert Half International Inc. is a Delaware corporation, identified as a **large accelerated filer**[2](index=2&type=chunk)[4](index=4&type=chunk) Registrant Information | Metric | Value | | :----- | :---- | | Commission File Number | 1-10427 | | Shares Outstanding (as of July 31, 2022) | 109,567,871 | | Common Stock Par Value | $0.001 per share | [PART I—FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=2&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Unaudited condensed consolidated financial statements for periods ended June 30, 2022, and December 31, 2021 [Condensed Consolidated Statements of Financial Position (Unaudited)](index=2&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20POSITION%20(UNAUDITED)) Balance sheet shows slight decrease in total assets and liabilities, with increased stockholders' equity Condensed Consolidated Statements of Financial Position (Unaudited) | Metric (in thousands) | June 30, 2022 | December 31, 2021 | Change | | :-------------------- | :------------ | :---------------- | :----- | | **Assets** | | | | | Cash and cash equivalents | $590,909 | $619,001 | $(28,092) | | Accounts receivable, net | $1,091,598 | $984,691 | $106,907 | | Employee deferred compensation trust assets | $416,678 | $494,991 | $(78,313) | | Total current assets | $2,260,742 | $2,268,547 | $(7,805) | | Total assets | $2,933,835 | $2,952,359 | $(18,524) | | **Liabilities** | | | | | Total current liabilities | $1,266,873 | $1,358,673 | $(91,800) | | Total liabilities | $1,466,167 | $1,571,308 | $(105,141) | | **Stockholders' Equity** | | | | | Total stockholders' equity | $1,467,668 | $1,381,051 | $86,617 | [Condensed Consolidated Statements of Operations (Unaudited)](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20(UNAUDITED)) Strong revenue and net income growth for Q2 and H1 2022, driven by significant increases in service revenues Condensed Consolidated Statements of Operations (Unaudited) | Metric (in thousands, except per share) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | YoY Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | Service revenues | $1,862,827 | $1,580,581 | 17.98% | | Gross margin | $815,547 | $664,872 | 22.66% | | Income before income taxes | $240,833 | $203,862 | 18.13% | | Net income | $175,821 | $149,213 | 17.83% | | Diluted Net income per share | $1.60 | $1.33 | 20.30% | | Metric (in thousands, except per share) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | YoY Change (%) | | :------------------------------------ | :----------------------------- | :----------------------------- | :------------- | | Service revenues | $3,677,661 | $2,978,961 | 23.45% | | Gross margin | $1,587,393 | $1,226,583 | 29.42% | | Income before income taxes | $468,233 | $353,968 | 32.29% | | Net income | $344,060 | $259,811 | 32.43% | | Diluted Net income per share | $3.12 | $2.32 | 34.48% | [Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(LOSS)%20(UNAUDITED)) Total comprehensive income for Q2 and H1 2022 impacted by net income and negative foreign currency adjustments Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) | Metric (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | YoY Change | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | | Net income | $175,821 | $149,213 | $26,608 | | Foreign currency translation adjustments, net of tax | $(24,048) | $4,398 | $(28,446) | | Total other comprehensive income (loss) | $(24,033) | $4,437 | $(28,470) | | Total comprehensive income (loss) | $151,788 | $153,650 | $(1,862) | | Metric (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | YoY Change | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | | Net income | $344,060 | $259,811 | $84,249 | | Foreign currency translation adjustments, net of tax | $(25,016) | $(4,439) | $(20,577) | | Total other comprehensive income (loss) | $(24,985) | $(4,360) | $(20,625) | | Total comprehensive income (loss) | $319,075 | $255,451 | $63,624 | [Condensed Consolidated Statements of Stockholders' Equity (Unaudited)](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%27%20EQUITY%20(UNAUDITED)) Stockholders' equity increased from net income and stock-based compensation, partially offset by dividends and repurchases Condensed Consolidated Statements of Stockholders' Equity (Unaudited) | Metric (in thousands, except per share) | Balance at Dec 31, 2021 | Balance at June 30, 2022 | Change | | :------------------------------------ | :---------------------- | :----------------------- | :----- | | Total Stockholders' Equity | $1,381,051 | $1,467,668 | $86,617 | | Net income (Six Months) | N/A | $344,060 | N/A | | Other comprehensive income (loss) (Six Months) | N/A | $(24,985) | N/A | | Dividends declared (Six Months) | N/A | $(95,738) | N/A | | Stock-based compensation (Six Months) | N/A | $29,593 | N/A | | Repurchases of common stock (Six Months) | N/A | $(166,313) | N/A | | Shares outstanding (June 30, 2022) | 110,686 | 109,607 | (1,079) | | Shares outstanding (June 30, 2021) | 113,128 | 111,970 | (1,158) | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(UNAUDITED)) Net cash from operations increased, while investing and financing activities used more cash, leading to a net decrease Condensed Consolidated Statements of Cash Flows (Unaudited) | Metric (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | YoY Change | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | | Net cash flows provided by operating activities | $302,078 | $233,472 | $68,606 | | Net cash flows used in investing activities | $(55,196) | $(31,113) | $(24,083) | | Net cash flows used in financing activities | $(256,839) | $(231,910) | $(24,929) | | Change in cash and cash equivalents | $(28,092) | $(31,621) | $3,529 | | Cash and cash equivalents at end of period | $590,909 | $542,805 | $48,104 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Detailed notes on accounting policies, financial line items, and other relevant information, including revenue and leases [Note A—Summary of Significant Accounting Policies](index=7&type=section&id=Note%20A%E2%80%94Summary%20of%20Significant%20Accounting%20Policies) Outlines business model, brand unification, segment renaming, and key accounting policies for revenue and compensation - The Company completed a multiyear process to unify its divisional brands under a single **'Robert Half' brand**, simplifying its go-to-market structure and allowing for future flexibility[17](index=17&type=chunk)[88](index=88&type=chunk) - Reportable segments were renamed to **'contract talent solutions'**, **'permanent placement talent solutions'**, and **'Protiviti'**[17](index=17&type=chunk)[88](index=88&type=chunk) Advertising Costs | Metric (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :-------------------- | :------------------------------- | :------------------------------- | | Advertising Costs | $14,500 | $11,800 | Advertising Costs | Metric (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :-------------------- | :----------------------------- | :----------------------------- | | Advertising Costs | $28,700 | $20,200 | Employee Deferred Compensation Trust Assets and Allowance for Credit Losses | Metric (in thousands) | June 30, 2022 | December 31, 2021 | | :-------------------- | :------------ | :---------------- | | Employee deferred compensation trust assets | $416,678 | $494,991 | | Allowance for Credit Losses (Balance) | $22,835 | $21,530 | [Note B—New Accounting Pronouncements](index=10&type=section&id=Note%20B%E2%80%94New%20Accounting%20Pronouncements) ASU 2021-10 adoption had no material impact; no other new accounting pronouncements were yet adopted - The Company adopted ASU 2021-10, 'Government Assistance,' in January 2022, which did not materially impact the financial statements[37](index=37&type=chunk) - No other recently issued accounting pronouncements were yet adopted by the Company[38](index=38&type=chunk) [Note C—Revenue Recognition](index=10&type=section&id=Note%20C%E2%80%94Revenue%20Recognition) Details revenue recognition policies across three segments, including criteria for service delivery and revenue disaggregation - Contract talent solutions revenues are recognized on a **gross basis** as the Company acts as a principal, bearing the risk of hiring, selecting, pricing, and payment for engagement professionals[40](index=40&type=chunk)[41](index=41&type=chunk) - Permanent placement talent solutions revenues are primarily recognized when candidates accept permanent employment offers, with historical data used to estimate and accrue for guarantee period liabilities[43](index=43&type=chunk) - Protiviti's consulting revenues are recognized over time using a **proportional performance method** based on costs incurred, as services provided have no alternative use and contracts include enforceable payment rights[44](index=44&type=chunk) Service Revenues | Service Revenues (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Contract talent solutions | $1,165,693 | $978,281 | $2,321,416 | $1,867,557 | | Permanent placement talent solutions | $200,096 | $143,640 | $386,878 | $255,344 | | Protiviti | $497,038 | $458,660 | $969,367 | $856,060 | | Total service revenues | $1,862,827 | $1,580,581 | $3,677,661 | $2,978,961 | Contract Liabilities | Contract Liabilities (in thousands) | Amount | | :---------------------------------- | :----- | | Balance as of December 31, 2021 | $25,601 | | Payments in advance of satisfaction of performance obligations | $36,646 | | Revenue recognized | $(41,310) | | Balance as of June 30, 2022 | $20,061 | [Note D—Other Current Assets](index=12&type=section&id=Note%20D%E2%80%94Other%20Current%20Assets) Other current assets slightly decreased, with cloud computing costs rising and other miscellaneous assets falling Other Current Assets | Other Current Assets (in thousands) | June 30, 2022 | December 31, 2021 | Change | | :---------------------------------- | :------------ | :---------------- | :----- | | Prepaid expenses | $72,932 | $69,526 | $3,406 | | Unamortized cloud computing implementation costs | $50,410 | $44,692 | $5,718 | | Other | $38,215 | $55,646 | $(17,431) | | Total Other current assets | $161,557 | $169,864 | $(8,307) | [Note E—Property and Equipment, Net](index=12&type=section&id=Note%20E%E2%80%94Property%20and%20Equipment%2C%20Net) Net property and equipment increased due to additions in computer hardware and software, offset by depreciation Property and Equipment, Net | Property and Equipment (in thousands) | June 30, 2022 | December 31, 2021 | Change | | :------------------------------------ | :------------ | :---------------- | :----- | | Computer hardware | $168,714 | $157,408 | $11,306 | | Computer software | $248,496 | $246,013 | $2,483 | | Property and equipment, cost | $676,027 | $661,718 | $14,309 | | Accumulated depreciation | $(572,411) | $(568,315) | $(4,096) | | Property and equipment, net | $103,616 | $93,403 | $10,213 | [Note F—Leases](index=13&type=section&id=Note%20F%E2%80%94Leases) Operating lease expenses increased for Q2 and H1 2022, with a weighted average remaining lease term of 3.6 years Operating Lease Details | Metric (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :-------------------- | :------------------------------- | :------------------------------- | | Operating lease expenses | $22,500 | $21,700 | Operating Lease Details | Metric (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :-------------------- | :----------------------------- | :----------------------------- | | Operating lease expenses | $45,100 | $43,200 | | Cash paid for operating lease liabilities | $46,743 | $45,531 | | Right-of-use assets obtained from new leases | $17,384 | $8,467 | | Right-of-use assets from modifications | $17,744 | $13,829 | Lease Terms and Discount Rate | Metric | June 30, 2022 | December 31, 2021 | | :----- | :------------ | :---------------- | | Weighted average remaining lease term | 3.6 years | 3.9 years | | Weighted average discount rate | 2.3% | 2.3% | | Present value of operating lease liabilities | $250,591 | N/A | - As of June 30, 2022, the Company had additional future minimum lease obligations of **$6.1 million** under executed operating lease contracts that had not yet commenced[57](index=57&type=chunk) [Note G—Goodwill](index=14&type=section&id=Note%20G%E2%80%94Goodwill) Goodwill slightly decreased due to foreign currency adjustments, with no impairment identified in the annual assessment Goodwill | Goodwill (in thousands) | December 31, 2021 | June 30, 2022 | Change | | :---------------------- | :---------------- | :------------ | :----- | | Contract talent solutions | $134,584 | $134,215 | $(369) | | Permanent placement talent solutions | $26,189 | $26,117 | $(72) | | Protiviti | $62,082 | $61,936 | $(146) | | Total Goodwill | $222,855 | $222,268 | $(587) | - The Company's annual goodwill impairment assessment for the quarter ended June 30, 2022, determined no impairment events or circumstances[61](index=61&type=chunk) [Note H—Accrued Payroll and Benefit Costs](index=14&type=section&id=Note%20H%E2%80%94Accrued%20Payroll%20and%20Benefit%20Costs) Accrued payroll and benefit costs slightly increased due to higher payroll, partially offset by lower payroll taxes Accrued Payroll and Benefit Costs | Accrued Payroll and Benefit Costs (in thousands) | June 30, 2022 | December 31, 2021 | Change | | :----------------------------------------------- | :------------ | :---------------- | :----- | | Payroll and benefits | $471,325 | $449,246 | $22,079 | | Payroll taxes | $57,108 | $74,117 | $(17,009) | | Workers' compensation | $16,909 | $16,820 | $89 | | Total Accrued payroll and benefit costs | $545,342 | $540,183 | $5,159 | - The Company deferred paying **$51.1 million** of applicable payroll taxes under the CARES Act, expected to be paid within the next 12 months[62](index=62&type=chunk) [Note I—Employee Deferred Compensation Plan Obligations](index=14&type=section&id=Note%20I%E2%80%94Employee%20Deferred%20Compensation%20Plan%20Obligations) Nonqualified deferred compensation plan assets and liabilities decreased due to negative market returns in H1 2022 Employee Deferred Compensation Plan Obligations | Metric (in thousands) | June 30, 2022 | December 31, 2021 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Nonqualified plan asset value | $416,700 | $495,000 | $(78,300) | | Nonqualified plan liability value | $440,300 | $535,300 | $(95,000) | Employee Deferred Compensation Plan Expenses | Metric (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :-------------------- | :------------------------------- | :------------------------------- | | Contribution expense | $12,794 | $13,918 | | Increase (decrease) in employee deferred compensation expense | $(65,622) | $27,810 | Employee Deferred Compensation Plan Expenses | Metric (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :-------------------- | :----------------------------- | :----------------------------- | | Contribution expense | $24,996 | $23,472 | | Increase (decrease) in employee deferred compensation expense | $(95,623) | $39,797 | [Note J—Commitments and Contingencies](index=15&type=section&id=Note%20J%E2%80%94Commitments%20and%20Contingencies) Involved in two class-action lawsuits with unpredictable outcomes; maintains a $100 million undrawn revolving credit facility - The Company is defending against two class-action lawsuits in California (Gentry and Dorff) alleging unpaid compensation, misclassification of employees, and wage statement violations, with outcomes and potential loss ranges not feasible to predict[68](index=68&type=chunk)[69](index=69&type=chunk) - The Company has a **$100.0 million unsecured revolving credit facility**, extended to May 2024, with no borrowings outstanding as of June 30, 2022[73](index=73&type=chunk) [Note K—Stockholders' Equity](index=16&type=section&id=Note%20K%E2%80%94Stockholders%27%20Equity) Ongoing stock repurchase program with 5.8 million shares authorized; 1.4 million shares repurchased for $133.5 million - As of June 30, 2022, the Company is authorized to repurchase up to **5.8 million additional shares** of common stock[74](index=74&type=chunk)[151](index=151&type=chunk) Stock Repurchases | Stock Repurchases (in thousands, except shares) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :---------------------------------------------- | :----------------------------- | :----------------------------- | | Common stock repurchased (shares) | 1,386 | 1,514 | | Common stock repurchased (cost) | $133,527 | $124,210 | | Repurchases related to employee stock plans (shares) | 295 | 251 | | Repurchases related to employee stock plans (cost) | $32,786 | $19,345 | [Note L—Net Income Per Share](index=17&type=section&id=Note%20L%E2%80%94Net%20Income%20Per%20Share) Diluted net income per share increased for Q2 and H1 2022 due to higher net income and fewer diluted shares Net Income Per Share | Metric (in thousands, except per share) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Net income | $175,821 | $149,213 | | Diluted weighted average shares | 109,696 | 111,889 | | Diluted Net income per share | $1.60 | $1.33 | Net Income Per Share | Metric (in thousands, except per share) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net income | $344,060 | $259,811 | | Diluted weighted average shares | 110,143 | 112,191 | | Diluted Net income per share | $3.12 | $2.32 | [Note M—Business Segments](index=17&type=section&id=Note%20M%E2%80%94Business%20Segments) Operates in three segments: contract, permanent placement, and Protiviti, all showing revenue growth with varying income trends - The Company's three reportable segments are: **contract talent solutions**, **permanent placement talent solutions**, and **Protiviti**, providing specialized talent and consulting services[79](index=79&type=chunk) Segment Performance | Segment (in thousands) | Three Months Ended June 30, 2022 (Revenue) | Three Months Ended June 30, 2021 (Revenue) | Three Months Ended June 30, 2022 (Income) | Three Months Ended June 30, 2021 (Income) | | :--------------------- | :----------------------------------------- | :----------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Contract talent solutions | $1,165,693 | $978,281 | $133,567 | $94,010 | | Permanent placement talent solutions | $200,096 | $143,640 | $36,751 | $30,599 | | Protiviti | $497,038 | $458,660 | $70,213 | $79,980 | Segment Performance | Segment (in thousands) | Six Months Ended June 30, 2022 (Revenue) | Six Months Ended June 30, 2021 (Revenue) | Six Months Ended June 30, 2022 (Income) | Six Months Ended June 30, 2021 (Income) | | :--------------------- | :--------------------------------------- | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Contract talent solutions | $2,321,416 | $1,867,557 | $266,813 | $169,688 | | Permanent placement talent solutions | $386,878 | $255,344 | $74,079 | $48,234 | | Protiviti | $969,367 | $856,060 | $127,290 | $137,303 | - Intersegment revenues between contract talent solutions and Protiviti were **$137.5 million** for the three months and **$281.7 million** for the six months ended June 30, 2022[84](index=84&type=chunk) [Note N—Subsequent Events](index=18&type=section&id=Note%20N%E2%80%94Subsequent%20Events) Announced a quarterly dividend of $0.43 per share on August 2, 2022, payable September 15, 2022 Dividend Details | Dividend Details | Value | | :--------------- | :---- | | Quarterly dividend per share | $0.43 | | Declaration date | August 2, 2022 | | Record date | August 25, 2022 | | Payment date | September 15, 2022 | [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of financial condition and results, covering executive overview, operations, and liquidity [Executive Overview](index=19&type=section&id=Executive%20Overview) Strong Q2 and H1 2022 revenue and net income growth, driven by robust labor market demand and strategic capitalization - The Company completed a multiyear brand unification to **'Robert Half'** for simplified market structure and increased brand awareness[88](index=88&type=chunk) - Service revenues for the first half of 2022 increased by **23.5% to $3.68 billion**, with net income up **32.4% to $344 million** and diluted EPS up **34.5% to $3.12**[89](index=89&type=chunk) - Permanent placement talent solutions revenue grew **51.5% YoY**, contract talent solutions grew **24.3% YoY**, while Protiviti grew **13.2% YoY**[90](index=90&type=chunk) - The U.S. unemployment rate decreased from **3.9% in December 2021 to 3.6%** at the end of Q2 2022, indicating a robust labor market with significant talent shortages[92](index=92&type=chunk) [Critical Accounting Policies and Estimates](index=20&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) No material changes to critical accounting policies or estimates for the six months ended June 30, 2022 - No material changes occurred in the Company's critical accounting policies or estimates for the six months ended June 30, 2022[94](index=94&type=chunk) [Recent Accounting Pronouncements](index=20&type=section&id=Recent%20Accounting%20Pronouncements) Refers to Note B for details on recently adopted and issued accounting pronouncements - Refer to Note B for information on recent accounting pronouncements[95](index=95&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Operating results analyzed across three segments, with demand highly dependent on general economic and labor trends - Operating results are analyzed across three reportable segments: **contract talent solutions**, **permanent placement talent solutions**, and **Protiviti**[96](index=96&type=chunk) - Demand for the Company's services is largely dependent on general economic and labor trends, making future demand difficult to forecast[97](index=97&type=chunk) [Non-GAAP Financial Measures](index=21&type=section&id=Non-GAAP%20Financial%20Measures) Uses non-GAAP measures like 'as adjusted' revenue growth and combined segment income for operational performance insights - Non-GAAP measures include **'as adjusted' revenue growth rates**, **adjusted gross margin**, **adjusted selling, general and administrative expense**, and **segment income**, used to understand financial performance[100](index=100&type=chunk)[103](index=103&type=chunk) - Adjustments for 'as adjusted' revenue growth remove the impact of changes in foreign currency exchange rates and billing days to highlight growth from operating activities[101](index=101&type=chunk)[102](index=102&type=chunk) - Combined segment income is defined as income before income taxes, adjusted for net interest (income) expense and amortization of intangible assets, used by management to evaluate segment performance[104](index=104&type=chunk) [Three Months Ended June 30, 2022 and 2021](index=21&type=section&id=Three%20Months%20Ended%20June%2030%2C%202022%20and%202021) Strong Q2 2022 revenue growth across segments, improved gross margin, decreased SG&A percentage, and deferred compensation loss Service Revenues (in thousands) | Metric (in thousands) | June 30, 2022 | June 30, 2021 | YoY Change (%) | | :-------------------- | :------------ | :------------ | :------------- | | Total Service Revenues | $1,862,827 | $1,580,581 | 17.98% | | U.S. Revenues | $1,467,000 | $1,220,000 | 20.25% | | International Revenues | $396,000 | $360,000 | 10.00% | | Contract talent solutions revenues | $1,165,693 | $978,281 | 19.16% | | Permanent placement talent solutions revenues | $200,096 | $143,640 | 39.31% | | Protiviti revenues | $497,038 | $458,660 | 8.37% | Segment Revenue Growth (As Adjusted) | Segment Revenue Growth (As Adjusted) | Global | U.S. | International | | :----------------------------------- | :----- | :--- | :------------ | | Contract talent solutions | 21.3% | 22.7% | 16.6% | | Permanent placement talent solutions | 42.6% | 44.3% | 39.0% | | Protiviti | 10.8% | 8.3% | 20.6% | Financial Performance (in thousands) | Metric (in thousands) | June 30, 2022 | June 30, 2021 | YoY Change (%) | | :-------------------- | :------------ | :------------ | :------------- | | Total Gross Margin | $815,547 | $664,872 | 22.66% | | Contract talent solutions gross margin | $464,853 | $388,070 | 19.78% | | Protiviti gross margin | $151,030 | $133,348 | 13.26% | | Total SG&A Expenses | $509,394 | $488,093 | 4.36% | | Income before income taxes | $240,833 | $203,862 | 18.13% | | Combined segment income | $240,531 | $204,589 | 17.57% | | (Income) loss from investments held in employee deferred compensation trusts | $(65,622) | $27,810 | N/A | - Protiviti's adjusted gross margin percentage decreased year-over-year due to higher staff resource costs and continued headcount expansion[115](index=115&type=chunk) - The provision for income taxes was **27.0%** for Q2 2022, compared to **26.8%** for Q2 2021[125](index=125&type=chunk) [Six Months Ended June 30, 2022 and 2021](index=25&type=section&id=Six%20Months%20Ended%20June%2030%2C%202022%20and%202021) Substantial H1 2022 revenue growth across segments, mixed gross margin trends, increased SG&A, and deferred compensation loss Service Revenues (in thousands) | Metric (in thousands) | June 30, 2022 | June 30, 2021 | YoY Change (%) | | :-------------------- | :------------ | :------------ | :------------- | | Total Service Revenues | $3,677,661 | $2,978,961 | 23.45% | | U.S. Revenues | $2,880,000 | $2,300,000 | 25.22% | | International Revenues | $795,000 | $683,000 | 16.40% | | Contract talent solutions revenues | $2,321,416 | $1,867,557 | 24.30% | | Permanent placement talent solutions revenues | $386,878 | $255,344 | 51.52% | | Protiviti revenues | $969,367 | $856,060 | 13.23% | Segment Revenue Growth (As Adjusted) | Segment Revenue Growth (As Adjusted) | Global | U.S. | International | | :----------------------------------- | :----- | :--- | :------------ | | Contract talent solutions | 25.9% | 27.8% | 19.9% | | Permanent placement talent solutions | 54.1% | 58.8% | 44.0% | | Protiviti | 15.1% | 12.3% | 26.0% | Financial Performance (in thousands) | Metric (in thousands) | June 30, 2022 | June 30, 2021 | YoY Change (%) | | :-------------------- | :------------ | :------------ | :------------- | | Total Gross Margin | $1,587,393 | $1,226,583 | 29.42% | | Contract talent solutions gross margin | $926,714 | $733,003 | 26.43% | | Protiviti gross margin | $274,566 | $238,629 | 15.06% | | Total SG&A Expenses | $1,023,588 | $911,155 | 12.34% | | Income before income taxes | $468,233 | $353,968 | 32.29% | | Combined segment income | $468,182 | $355,225 | 31.80% | | (Income) loss from investments held in employee deferred compensation trusts | $(95,623) | $39,797 | N/A | - Protiviti's adjusted gross margin percentage decreased due to lower staff utilization rates and a significant increase in headcount[133](index=133&type=chunk) - The provision for income taxes was **26.5%** for H1 2022, compared to **26.6%** for H1 2021[143](index=143&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity driven by increased operating cash flow, used for capital expenditures, repurchases, and dividends, with strong working capital Cash Flow (in thousands) | Cash Flow (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :----------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $302,078 | $233,472 | | Net cash used in investing activities | $(55,196) | $(31,113) | | Net cash used in financing activities | $(256,839) | $(231,910) | | Cash and cash equivalents at end of period | $590,909 | $542,805 | - Capital expenditures for the first half of 2022 totaled **$55 million**, with approximately **82.5%** invested in software initiatives and technology infrastructure[149](index=149&type=chunk) - The Company expects 2022 capital expenditures to range from **$95 million to $105 million**, with **$75 million to $85 million** allocated to software and technology[149](index=149&type=chunk) - The Company repurchased **1.4 million shares** of common stock for **$133 million** in the first half of 2022, in addition to **$33 million** in repurchases related to employee stock plans[151](index=151&type=chunk) - The Company's working capital, including **$591 million in cash** and **$1.09 billion in accounts receivable**, is expected to provide significant ongoing liquidity[152](index=152&type=chunk) [Material Cash Requirements from Contractual Obligations](index=30&type=section&id=Material%20Cash%20Requirements%20from%20Contractual%20Obligations) Material cash requirements include operating lease liabilities and employee deferred compensation plan obligations Contractual Obligations | Contractual Obligation (in thousands) | Amount | | :------------------------------------ | :----- | | Current operating lease liabilities | $84,000 | | Noncurrent operating lease liabilities | $166,000 | | Employee deferred compensation plan obligations | $440,000 | - No material changes to the Company's contractual purchase obligations occurred during the first half of 2022[158](index=158&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Exposed to foreign currency risk, with a strengthening U.S. dollar unfavorably impacting H1 2022 revenues and net income - Approximately **21.6%** of the Company's revenues for the six months ended June 30, 2022, were generated outside the U.S., exposing it to foreign currency fluctuations[161](index=161&type=chunk) - The strengthening U.S. dollar in the first half of 2022 decreased reported service revenues by **$55 million (1.9%)** and reported net income by **$3 million (1.1%)**[162](index=162&type=chunk) - Currency fluctuations generally do not affect cash flow or result in actual economic gains or losses, as international operations generate revenues and incur expenses in the same local currency[162](index=162&type=chunk)[164](index=164&type=chunk) [ITEM 4. Controls and Procedures](index=32&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2022, with no material changes during the quarter - The Company's disclosure controls and procedures were evaluated as **effective** as of June 30, 2022[166](index=166&type=chunk) - No material changes were made to controls and procedures during the quarter ended June 30, 2022[166](index=166&type=chunk) [PART II—OTHER INFORMATION](index=33&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [ITEM 1. Legal Proceedings](index=33&type=section&id=ITEM%201.%20Legal%20Proceedings) No material developments in legal proceedings previously disclosed in the annual report on Form 10-K - No material developments occurred in legal proceedings previously disclosed in the annual report on Form 10-K[168](index=168&type=chunk) [ITEM 1A. Risk Factors](index=33&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the annual report on Form 10-K - No material changes to risk factors previously disclosed in the annual report on Form 10-K[169](index=169&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchases in Q2 2022, including publicly announced plans, with 5.8 million shares authorized Common Stock Repurchases | Period | Total Number of Shares Purchased | Average Price Paid per Share | Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Number of Shares that May Yet Be Purchased Under Publicly Announced Plans | | :----- | :------------------------------- | :--------------------------- | :----------------------------------------------------------- | :----------------------------------------------------------------------------- | | April 1, 2022 to April 30, 2022 | 308,566 | $106.44 | 75,165 | 6,601,110 | | May 1, 2022 to May 31, 2022 | 360,576 | $93.14 | 360,576 | 6,240,534 | | June 1, 2022 to June 30, 2022 | 475,208 | $79.00 | 475,000 | 5,765,534 | | Total April 1, 2022 to June 30, 2022 | 1,144,350 | N/A | 910,741 | N/A | - Repurchases include shares tendered by employees for payment of applicable withholding taxes (**233,401 shares** in April 2022 and **208 shares** in June 2022)[173](index=173&type=chunk) - Since plan inception in October 1997, **122,234,466 shares** have been repurchased out of **128,000,000 authorized**[173](index=173&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=33&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities during the reporting period - No defaults upon senior securities[171](index=171&type=chunk) [ITEM 4. Mine Safety Disclosure](index=33&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosure) Mine Safety Disclosure is not applicable to the company - Mine Safety Disclosure is not applicable to the Company[172](index=172&type=chunk) [ITEM 5. Other Information](index=34&type=section&id=ITEM%205.%20Other%20Information) No other information to report under this item - No other information to report[174](index=174&type=chunk) [ITEM 6. Exhibits](index=34&type=section&id=ITEM%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including corporate governance documents, CEO/CFO certifications, and XBRL data - Exhibits include corporate governance documents (Restated Certificate of Incorporation, Amended and Restated By-Laws), CEO and CFO certifications (Rule 13a-14(a) and Section 1350), and Inline XBRL financial data[177](index=177&type=chunk)

Robert Half International Inc. (NYSE:RHI) Q2 2022 Earnings Conference Call July 21, 2022 5:00 PM ET Company Participants Keith Waddell - President and CEO Mike Buckley - CFO Conference Call Participants Mark Marcon - Baird Heather Balsky - Bank of America Andrew Steinerman - JPMorgan Kevin McVeigh - Credit Suisse George Tong - Goldman Sachs Kartik Mehta - Northcoast Research Manav Patnaik - Barclays Tobey Sommer - Truist Securities Jeff Silber - BMO Capital Markets David Silver - CL King & Associates Operat ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM to . Commission File Number 1-10427 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________ FORM 10-Q ______________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2022 OR ROBERT HALF INTERNATIONAL INC. (Exact name of registrant as specified in its charter) Dela ...

Financial Data and Key Metrics Changes - Company-wide revenues for Q1 2022 were $1.815 billion, a 30% increase year-over-year, with net income per share rising 55% to $1.52 compared to $0.98 in Q1 2021 [11][9] - Cash flow from operations during the quarter was $69 million, and the return on invested capital was 47% [13][11] - A cash dividend of $0.43 per share was distributed, totaling $47 million, marking an 11.7% annual growth since 2004 [12] Business Line Data and Key Metrics Changes - Permanent placement talent solutions achieved a remarkable 67% year-over-year revenue growth [9] - Contract talent solutions and Protiviti reported revenue growth of 30% and 19% year-over-year, respectively [10] - Adjusted talent solutions revenue was up 35% year-over-year, with U.S. talent solutions revenue at $1.046 billion, up 38% [15] Market Data and Key Metrics Changes - Non-U.S. talent solutions revenue was $297 million, reflecting a 28% year-over-year increase [15] - Currency exchange rate movements negatively impacted reported talent solutions revenue growth by $13 million, reducing the growth rate by 1.3 percentage points [17] - Protiviti's global revenues were $472 million, with U.S. revenues at $369 million and non-U.S. revenues at $103 million, showing a 20% increase year-over-year [18] Company Strategy and Development Direction - The company is capitalizing on the shift towards remote and hybrid work models, enhancing its ability to recruit from broader talent pools [35] - Investments in technology and AI-driven solutions are aimed at improving recruitment efficiency and candidate engagement [57][58] - The company remains optimistic about the public sector's growth, expecting revenues to be flat to up 10% for the year [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit revenue growth for Protiviti, projecting mid-double digits for the full year [52] - The demand environment remains strong, with no signs of slowing observed in the business [55] - The company is optimistic about the year ahead, leveraging its technology, brand, and business model to connect talent with opportunities [47] Other Important Information - The company has 317 talent solutions locations worldwide, with 83 outside the U.S. [15] - The gross margin for contract talent solutions improved to 40% from 38.8% year-over-year, while overall talent solutions gross margin was 48.3% [20][21] - SG&A costs as a percentage of revenues decreased to 28.3% from 30.3% year-over-year [23] Q&A Session Summary Question: Sustainability of Protiviti's double-digit revenue growth - Management expects Protiviti to achieve double-digit growth for 2022, despite some short-term challenges [52] Question: Signs of cyclical slowing in business - Management has not observed any signs of slowing demand, remaining optimistic about future performance [55] Question: Impact of technology investments on margins - Investments in technology have led to improved margins and efficiency, with ongoing enhancements expected [56] Question: Protiviti margins and headcount impacts - Increased headcount and costs related to internal audits impacted margins, but management anticipates improvement in the coming quarters [66] Question: Bill rate growth and wage inflation outlook - Bill rates increased by over 9% year-on-year, with expectations of continued strong rates due to a tight labor market [89] Question: European market exposure and impact of geopolitical events - No significant impact observed in European markets, with Germany performing particularly well [93] Question: Growth in technology revenues within talent solutions - Improved execution and focus on technology talent solutions contributed to accelerated growth [95]

PART I [Item 1. Business](index=2&type=section&id=Item%201.%20Business) The company provides specialized staffing and risk consulting services through its various divisions and global operations - Robert Half International Inc provides specialized staffing and risk consulting services through divisions such as Accountemps, Robert Half Finance & Accounting, OfficeTeam, Robert Half Technology, Robert Half Management Resources, Robert Half Legal, The Creative Group, and Protiviti[10](index=10&type=chunk) - Protiviti, a global consulting firm, was established in 2002 and offers services in internal audit, technology consulting, risk and compliance consulting, and business performance improvement[11](index=11&type=chunk)[21](index=21&type=chunk) - The company operates **321 staffing offices** in 42 states and 17 foreign countries, and Protiviti has **64 offices** in 24 states and 12 foreign countries as of December 31, 2021[24](index=24&type=chunk)[25](index=25&type=chunk) - The expanded acceptance of remote work creates significant opportunities, strengthening the company's competitive position by leveraging its global brand, office network, candidate database, and AI-driven technologies for out-of-market recruitment[26](index=26&type=chunk) - As of December 31, 2021, approximately **55% of the Company's global workforce was female**, and **47% of managerial and leadership roles were held by women**[32](index=32&type=chunk) - Approximately **33% of the U.S. workforce was from underrepresented groups**[32](index=32&type=chunk) Human Capital Overview (2021 vs. 2020) | Category | 2021 | 2020 | | :-------------------------------- | :----- | :----- | | Full-time internal staff | 14,600 | 13,000 | | Protiviti operations staff | 5,700 | 5,000 | | Engagement professionals placed | 177,000 | 150,500 | [Item 1A. Risk Factors](index=6&type=section&id=Item%201A.%20Risk%20Factors) The company's business is exposed to risks from economic downturns, competition, regulations, and cybersecurity threats - Demand for the Company's services is highly dependent on global economic activity and employment levels; any reduction could significantly decrease revenues and profits[41](index=41&type=chunk) - The Company's reputation is critical, and client dissatisfaction or employee misconduct could harm its ability to attract and retain clients and candidates[42](index=42&type=chunk) - International operations are subject to risks such as political and economic conditions, foreign laws, U.S legal requirements for foreign operations, cultural differences, adverse tax consequences, and foreign currency exchange fluctuations[43](index=43&type=chunk)[44](index=44&type=chunk) - The **COVID-19 pandemic** has created significant uncertainty, impacting demand for services, disrupting operations, and increasing vulnerability to cybersecurity risks due to remote work[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - The Company faces intense competition in the staffing services business due to low barriers to entry and the presence of numerous national, regional, and local firms[54](index=54&type=chunk) - Potential liabilities include claims from temporary employees for workplace events and claims from clients for errors, omissions, theft, or misuse of confidential information by temporary employees[55](index=55&type=chunk) - Success is highly dependent on attracting and retaining qualified management personnel and employees, as the Company is a services business[56](index=56&type=chunk) - Failure to keep pace with rapid technological changes, including **AI, machine learning, and automation**, could negatively affect services, operations, and growth[57](index=57&type=chunk)[58](index=58&type=chunk) - The Company and its subsidiaries are defendants in several class and representative action lawsuits alleging wage and hour violations and non-compliance with the Fair Credit Reporting Act[65](index=65&type=chunk)[66](index=66&type=chunk) - Government-imposed vaccine mandates could lead to employee attrition or resistance to returning to onsite work, materially affecting business and results of operations[67](index=67&type=chunk) - The Company's computer and communications systems are vulnerable to damage, interruption, and cyberattacks, which could lead to security breaches and disclosure of confidential information[78](index=78&type=chunk)[79](index=79&type=chunk) - Changes in data privacy and protection laws (e.g., GDPR) could increase operating costs and lead to governmental enforcement actions or fines for non-compliance[80](index=80&type=chunk) - Failure to maintain adequate financial and management processes and controls could lead to errors in financial reporting, regulatory scrutiny, and loss of public confidence[81](index=81&type=chunk) [Item 1B. Unresolved Staff Comments](index=13&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) This section states that there are no unresolved staff comments - Not applicable[85](index=85&type=chunk) [Item 2. Properties](index=13&type=section&id=Item%202.%20Properties) The company operates from leased offices globally, with headquarters in California - Company headquarters are located in Menlo Park and San Ramon, California[86](index=86&type=chunk) - As of December 31, 2021, staffing services operated through **321 leased offices** in 42 states, the District of Columbia, and 17 foreign countries[86](index=86&type=chunk) - As of December 31, 2021, Protiviti had **64 leased offices** in 24 states and 12 foreign countries[86](index=86&type=chunk) [Item 3. Legal Proceedings](index=13&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in several legal proceedings, including class action lawsuits and a significant claim against Protiviti - Jessica Gentry filed a class action lawsuit in California alleging denial of compensation for interview time and inaccurate wage statements, seeking unspecified damages and penalties[87](index=87&type=chunk) - Shari Dorff filed a class action lawsuit in California alleging misclassification of salaried recruiters as exempt, failure to provide meal/rest breaks, untimely wage payments, and improper denial of expense reimbursement, seeking unspecified damages and penalties[88](index=88&type=chunk) - Protiviti Inc is a defendant in a lawsuit seeking **over $500 million**, filed by the Pennsylvania Insurance Commissioner, related to its role and performance of procedures regarding certain investments of Senior Health Insurance Company of Pennsylvania[89](index=89&type=chunk) - The Company believes it has meritorious defenses and intends to vigorously defend against all litigations, with legal costs expensed as incurred[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[91](index=91&type=chunk) [Item 4. Mine Safety Disclosure](index=14&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This section states that mine safety disclosure is not applicable to the Company - Not applicable[92](index=92&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=15&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details the company's common stock trading, shareholder information, and equity repurchase programs - The Company's Common Stock is listed on the New York Stock Exchange under the symbol **'RHI'**[95](index=95&type=chunk) - Since October 1997, the Board of Directors has authorized repurchases of common stock, totaling **128,000,000 shares authorized** and **120,848,307 shares repurchased** as of December 31, 2021[96](index=96&type=chunk) Common Stock Information | Metric | Value | | :-------------------------------- | :---------------- | | Holders of record (Jan 31, 2022) | 1,185 | | Outstanding shares (Jan 31, 2022) | 110,685,988 | | Market value (non-affiliates, Jun 30, 2021) | ~$9.68 billion | Issuer Purchases of Equity Securities (Q4 2021) | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased as Part of Publicly Announced Plans | Maximum Shares Remaining Under Publicly Announced Plans | | :-------------------------------- | :--------------------- | :--------------------------- | :--------------------------------------------------- | :------------------------------------------------------ | | Oct 1, 2021 to Oct 31, 2021 | — | $ — | — | 7,694,176 | | Nov 1, 2021 to Nov 30, 2021 | 259,591 | $ 116.02 | 259,591 | 7,434,585 | | Dec 1, 2021 to Dec 31, 2021 | 376,471 | $ 108.61 | 282,892 | 7,151,693 | | **Total Q4 2021** | **636,062** | | **542,483** | | Equity Compensation Plan Information (Dec 31, 2021) | Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans | | :------------------------------------------------ | :------------------------------------------------------------------------ | :------------------------------------------------------------------------ | :------------------------------------------------------------------------ | | Equity compensation plans approved by security holders | — | — | 3,945,882 | | Equity compensation plans not approved by security holders | — | — | — | | **Total** | **—** | **—** | **3,945,882** | [Item 6. Reserved](index=16&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information - Item 6 is reserved[100](index=100&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company achieved record revenues and net income in 2021, driven by strong global demand and economic recovery - The Company's growth in 2021 was driven by a broad-based, global acceleration in demand for its staffing and business consulting services, surpassing pre-pandemic levels[102](index=102&type=chunk)[115](index=115&type=chunk) - The expanded acceptance of remote work creates significant opportunities, leveraging the Company's global brand, office network, candidate database, and AI-driven technologies for out-of-market recruitment[103](index=103&type=chunk) - Protiviti continues to be a strong differentiator, showing consecutive growth across internal audit, technology consulting (especially cybersecurity), risk and compliance, and business performance improvement[104](index=104&type=chunk) - The U.S economic backdrop in 2021 was conducive to growth, with real GDP increasing **5.7%** and the unemployment rate declining from **6.7% to 3.9%**[105](index=105&type=chunk) - The Company's liquidity is strong, with **$619 million in cash and cash equivalents** and **$985 million in accounts receivable** as of December 31, 2021[146](index=146&type=chunk)[147](index=147&type=chunk)[152](index=152&type=chunk) - Operating activities provided **$603 million in cash** in 2021[146](index=146&type=chunk)[147](index=147&type=chunk)[152](index=152&type=chunk) - In 2021, the Company used **$288 million for common stock repurchases** and paid **$171 million in dividends**[150](index=150&type=chunk)[151](index=151&type=chunk)[154](index=154&type=chunk) - The **$100 million unsecured revolving credit facility** was extended to May 2024, with no borrowings outstanding[150](index=150&type=chunk)[151](index=151&type=chunk)[154](index=154&type=chunk) Key Financial Highlights (2021 vs. 2020) | Metric | 2021 | 2020 | Change (%) | | :-------------------- | :----------- | :----------- | :--------- | | Service Revenues | $6.46 billion | $5.11 billion | +26.5% | | Net Income | $599 million | $306 million | +95.5% | | Diluted EPS | $5.36 | $2.70 | +98.5% | Service Revenue Growth by Segment (2021 vs. 2020) | Segment | 2021 Revenue | YoY Growth (As Reported) | | :------------------------------------ | :------------- | :----------------------- | | Temporary and consultant staffing | $4.04 billion | +16.1% | | Permanent placement staffing | $570 million | +54.0% | | Risk consulting and internal audit services | $1.85 billion | +46.9% | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure stems from foreign currency fluctuations due to its international operations - The Company is exposed to foreign currency fluctuations, as approximately **22.5% of its 2021 revenues** were generated outside the United States[161](index=161&type=chunk)[162](index=162&type=chunk) - In 2021, the general weakening of the U.S dollar increased reported service revenues by **$56.9 million (1.1%)**, but this was largely offset by increased operating expenses in foreign operations[163](index=163&type=chunk) - Reported net income was **$3.4 million (1.1%) higher** in 2021 due to currency exchange rates[163](index=163&type=chunk) - Fluctuations in currency exchange rates impact the U.S dollar amount of stockholders' equity but generally do not affect cash flow or result in actual economic gains or losses[165](index=165&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=27&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements, supplementary data, and the independent auditor's report - The consolidated financial statements include the Statements of Financial Position, Operations, Comprehensive Income (Loss), Stockholders' Equity, and Cash Flows for the years ended December 31, 2021, 2020, and 2019[166](index=166&type=chunk)[168](index=168&type=chunk)[171](index=171&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk) - Notes to Consolidated Financial Statements provide detailed information on significant accounting policies, revenue recognition, assets, liabilities, equity, and other financial disclosures[179](index=179&type=chunk) - PricewaterhouseCoopers LLP issued an **unqualified opinion** on the consolidated financial statements and the effectiveness of internal control over financial reporting as of December 31, 2021[288](index=288&type=chunk)[289](index=289&type=chunk) - A critical audit matter identified was **income taxes**, due to significant management judgment and estimation in assessing tax laws and the realizability of deferred tax assets[297](index=297&type=chunk)[298](index=298&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=54&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This section states there have been no changes in or disagreements with accountants on accounting and financial disclosure - None[303](index=303&type=chunk) [Item 9A. Controls and Procedures](index=54&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were **effective** as of December 31, 2021[304](index=304&type=chunk) - No material changes in internal control over financial reporting were identified during the fourth quarter of 2021[305](index=305&type=chunk) - Management assessed and concluded that the Company maintained **effective internal control over financial reporting** as of December 31, 2021, a conclusion audited by PricewaterhouseCoopers LLP[306](index=306&type=chunk)[308](index=308&type=chunk) [Item 9B. Other Information](index=54&type=section&id=Item%209B.%20Other%20Information) This section states that there is no other information to report - None[309](index=309&type=chunk) PART III This part incorporates information by reference from the company's Definitive Proxy Statement for director and executive matters - Information for Items 10 through 14 of Part III is incorporated by reference from Item 1 of this report and the registrant's Definitive Proxy Statement[312](index=312&type=chunk) - The Proxy Statement, scheduled for mailing in May 2022, will cover topics such as director nominations, beneficial stock ownership, compensation discussion and analysis, corporate governance, and the independent registered public accounting firm[312](index=312&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=56&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed with the report - The section includes a list of consolidated financial statements found in Item 8, such as Statements of Financial Position, Operations, Comprehensive Income (Loss), Stockholders' Equity, and Cash Flows, along with their notes and the auditor's report[315](index=315&type=chunk) - Financial Statement Schedule II, 'Valuation and Qualifying Accounts,' is provided for the years ended December 31, 2021, 2020, and 2019[316](index=316&type=chunk) - A comprehensive list of exhibits, including organizational documents, employment agreements, compensation plans, credit agreements, and certifications, is provided[317](index=317&type=chunk) [Item 16. Form 10-K Summary](index=58&type=section&id=Item%2016.%20Form%2010-K%20Summary) This section indicates that there is no Form 10-K Summary provided - None[321](index=321&type=chunk) SIGNATURES The report is duly signed by the company's executive officers and directors as of February 14, 2022 - The report is signed by **Michael C Buckley**, Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)[325](index=325&type=chunk)[326](index=326&type=chunk) - Key signatories also include **Harold M Messmer, Jr** (Executive Chairman of the Board) and **M Keith Waddell** (President, Chief Executive Officer and Principal Executive Officer)[326](index=326&type=chunk) - Additional directors who signed the report include Julia L Coronado, Dirk A Kempthorne, Marc H Morial, Barbara J Novogradac, Robert J Pace, and Frederick A Richman[326](index=326&type=chunk) - All signatures are dated **February 14, 2022**[325](index=325&type=chunk)[326](index=326&type=chunk)

Robert Half International, Inc. (NYSE:RHI) Q4 2021 Earnings Conference Call January 27, 2022 5:00 PM ET Company Participants Keith Waddell - President & CEO Mike Buckley - CFO Conference Call Participants Mark Marcon - Robert W. Baird Andrew Steinerman - JPMorgan Hans Hoffman - Jefferies Jeff Silber - BMO Capital Markets Kevin McVeigh - Credit Suisse Tobey Sommer - Truist Securities George Tong - Goldman Sachs Operator Hello. And welcome to the Robert Half Fourth Quarter 2021 Conference Call. Our hosts ...

Th | Robert Half J.P. Morgan Virtual: Ultimate Services Investor Conference November 18, 2021 M. Keith Waddell President and CEO Robert Half Disclaimer Certain information contained in this presentation may be deemed forward-looking statements regarding events and financial trends that may affect the company's future operating results or financial positions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the stat ...

PART I—FINANCIAL INFORMATION [Financial Statements](index=2&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The unaudited financial statements show significant year-over-year growth in revenues and net income [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The company's financial position strengthened with asset growth and a significant increase in net income Condensed Consolidated Statements of Financial Position (in thousands) | | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $2,233,751 | $1,842,738 | | **Total assets** | $2,931,718 | $2,557,424 | | **Total current liabilities** | $1,341,602 | $1,046,626 | | **Total liabilities** | $1,615,675 | $1,352,135 | | **Total stockholders' equity** | $1,316,043 | $1,205,289 | Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Service revenues** | $1,712,566 | $1,189,897 | $4,691,527 | $3,804,914 | | **Gross margin** | $725,327 | $467,346 | $1,951,909 | $1,498,284 | | **Net income** | $170,871 | $75,749 | $430,682 | $211,860 | | **Diluted EPS** | $1.53 | $0.67 | $3.85 | $1.87 | Condensed Consolidated Statements of Cash Flows (Nine Months Ended Sep 30, in thousands) | | 2021 | 2020 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $458,265 | $564,641 | | **Net cash used in investing activities** | $(49,798) | $(43,432) | | **Net cash used in financing activities** | $(340,602) | $(208,476) | | **Change in cash and cash equivalents** | $59,293 | $316,522 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue disaggregation, segment performance, stock repurchases, and dividend declarations Service Revenues by Line of Business (Nine Months Ended Sep 30, in thousands) | Line of Business | 2021 | 2020 | | :--- | :--- | :--- | | Temporary and consultant staffing | $2,922,257 | $2,626,897 | | Permanent placement staffing | $411,788 | $278,722 | | Risk consulting and internal audit services | $1,357,482 | $899,295 | | **Total Service revenues** | **$4,691,527** | **$3,804,914** | Segment Income (Nine Months Ended Sep 30, in thousands) | Segment | 2021 | 2020 | | :--- | :--- | :--- | | Temporary and consultant staffing | $279,697 | $165,933 | | Permanent placement staffing | $79,264 | $20,791 | | Risk consulting and internal audit services | $224,256 | $105,311 | | **Combined segment income** | **$583,217** | **$292,035** | - The company is authorized to repurchase up to **7.7 million** additional shares of common stock as of September 30, 2021; during the first nine months of 2021, 2.25 million shares were repurchased for **$199.6 million**[87](index=87&type=chunk) - On October 28, 2021, the company declared a quarterly dividend of **$0.38 per share**, payable on December 15, 2021[100](index=100&type=chunk) [Management's Discussion and Analysis (MD&A)](index=20&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes record Q3 results to strong global demand for staffing and consulting services [Executive Overview and Results of Operations](index=20&type=section&id=Executive%20Overview%20and%20Results%20of%20Operations) Record Q3 2021 revenues were driven by strong demand, talent shortages, and expanded gross margins - The company achieved record service revenues and earnings in Q3 2021 due to a broad-based, global acceleration in demand; for the first nine months of 2021, service revenues increased **23.3%** to **$4.69 billion**, and net income increased **103.3%** to **$431 million**[102](index=102&type=chunk) - Key market trends driving growth include the adoption of flexible, hybrid, and remote work models, along with elevated employee attrition rates at client companies[103](index=103&type=chunk) As-Adjusted Revenue Growth vs. Reported (Q3 2021 vs Q3 2020) | Segment | Global Reported Growth | Global As-Adjusted Growth | | :--- | :--- | :--- | | Temporary and consultant staffing | 35.0% | 34.0% | | Permanent placement staffing | 79.4% | 77.7% | | Risk consulting and internal audit services | 56.1% | 55.1% | - For Q3 2021, combined segment income increased to **$228 million** (13.3% of revenues) from $103 million (8.6% of revenues) in Q3 2020, demonstrating significant operating leverage[136](index=136&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a robust liquidity position with strong operating cash flow funding shareholder returns - Cash and cash equivalents stood at **$634 million** as of September 30, 2021[158](index=158&type=chunk) - During the first nine months of 2021, the company used **$212 million** for stock repurchases and **$129 million** for dividend payments[161](index=161&type=chunk) - The company has a **$100 million** unsecured revolving credit facility maturing in May 2024, with no borrowings outstanding as of September 30, 2021[165](index=165&type=chunk) [Market Risk Disclosures](index=31&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The primary market risk is foreign currency fluctuation, with a weak U.S. dollar positively impacting results - Approximately **22.7%** of the company's revenues were generated outside of the United States in the first nine months of 2021[169](index=169&type=chunk) - For the first nine months of 2021, currency exchange rate fluctuations increased reported service revenues by **$63.6 million** (1.7%) and net income by **$3.6 million** (1.7%) compared to the same period in 2020[170](index=170&type=chunk)[171](index=171&type=chunk) [Controls and Procedures](index=32&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[173](index=173&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings and Risk Factors](index=33&type=section&id=ITEM%201%20%26%201A.%20Legal%20Proceedings%20and%20Risk%20Factors) No material changes in legal proceedings or risk factors were reported since the last annual filing - There have been no material developments in legal proceedings or material changes to risk factors since the last annual report[175](index=175&type=chunk)[176](index=176&type=chunk) [Issuer Purchases of Equity Securities](index=33&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its common stock repurchases for Q3 2021 and the remaining authorized amount Issuer Purchases of Equity Securities (Q3 2021) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2021 | — | $— | | August 2021 | 214,178 | $101.42 | | September 2021 | 527,749 | $102.08 | | **Total Q3 2021** | **741,927** | **N/A** | - As of September 30, 2021, the company may yet purchase up to **7,694,176 shares** under its publicly announced repurchase plan[177](index=177&type=chunk) [Other Items (Items 3, 4, 5, 6)](index=33&type=section&id=Other%20Items) This section confirms no defaults, mine safety issues, or other material information to disclose - The company reports no defaults upon senior securities, no mine safety disclosures, and no other information under Item 5[178](index=178&type=chunk)[179](index=179&type=chunk)[181](index=181&type=chunk)