Huron Consulting Group Inc. (NASDAQ:HURN) Q3 2022 Earnings Conference Call November 1, 2022 5:00 PM ET

Company Participants

Jim Roth - Chief Executive Officer

John Kelly - Chief Financial Officer

Mark Hussey - President

Ronnie Dail - Chief Operating Officer

Conference Call Participants

Tobey Sommer - Truist

Andrew Nicholas - William Blair

Kevin Steinke - Barrington Research

Operator

Good afternoon and welcome to Huron Consulting Group’s webcast to discuss Financial Results for the Third Quarter 2022. [Operator Instructions] As a reminder, this conference call is being recorded.

Before we begin, I would like to point all of you to the disclosure at the end of the company’s news release for information about any forward-looking statements that maybe made or discussed on this call. The news release is posted on Huron’s website. Please review that information along with the filings with the SEC for a disclosure of factors that may impact subject discussed in this afternoon’s webcast. The company will be discussing one or more non-GAAP financial measures. Please look at the earnings release on Huron’s website for all of the disclosures required by the SEC, including reconciliation to the most comparable GAAP numbers.

And now, I’d like to turn the call over to Jim Roth, Chief Executive Officer of Huron Consulting Group. Mr. Roth, please go ahead.

Jim Roth

Good afternoon and welcome to Huron Consulting Group’s third quarter 2022 earnings call. With me today are John Kelly, our Chief Financial Officer; Mark Hussey, our President; and Ronnie Dail, our Chief Operating Officer.

Our third quarter performance continued to reflect strong growth across all three operating segments. We achieved 27% revenue growth over the third quarter of 2021, primarily reflecting ongoing momentum in our education and healthcare industries and continued growth in our digital capability. Despite increased uncertainty in the broader economic environment, we continue to anticipate strong demand for our offerings, leading us to increase our full year revenue guidance while narrowing the range of our adjusted earnings per share guidance to the midpoint of the range.

I will now share some additional insight into our third quarter performance. During the third quarter, Healthcare segment revenues grew nearly 26% over the prior year quarter. The increase in revenues was driven by strong demand for our digital, financial advisory, revenue cycle managed services and performance improvement offerings. The macro trends within hospitals and health systems have continued to be challenging for most of our client base. During the past several months, many health systems have reported their largest financial losses in a decade. The reasons for those losses are familiar, in-patient volumes that are still lower than pre-COVID levels, volume shifts to outpatient and virtual, increased costs for labor, equipment and supplies, labor shortages and reimbursement rates that are generally have not kept up with the increased cost structure.