The Hackett Group, Inc. (NASDAQ:HCKT) Q3 2022 Earnings Conference Call November 8, 2022 5:00 PM ET

Company Participants

Rob Ramirez - Chief Financial Officer

Ted Fernandez - Chairman & Chief Executive Officer

Conference Call Participants

Jeff Martin - ROTH Capital Partners

Vincent Colicchio - Barrington Research

George Sutton - Craig-Hallum

Operator

Welcome to the Hackett Group Third Quarter Earnings Conference Call. Your lines have been placed on a listen-only mode until the question-and-answer session. Please be advised the conference is being recorded. Hosting tonight's call are Mr. Ted Fernandez, Chairman and CEO; and Mr. Rob Ramirez, Chief Financial Officer.

Mr. Ramirez, you may begin.

Rob Ramirez

Good afternoon, everyone, and thank you for joining us to discuss The Hackett Group's Third Quarter Results. Speaking on the call today, and here to answer your questions are Ted Fernandez, Chairman and CEO of The Hackett Group; and myself Rob Ramirez, Chief Financial Officer. A press announcement was released over the wires at 4:05 PM Eastern Time.

For a copy of the release, please visit our website at www.thehackettgroup.com. We will also place any additional financial or statistical data discussed on this call that is not contained in the release on the Investor Relations page of our website.

Before we begin, I would like to remind you that, in the following comments and in the question-and-answer session, we will be making statements about expected future results, which may be forward-looking statements for the purposes of the federal securities laws. These statements relate to our current expectations, estimates and projections, and are not a guarantee of future performance. They involve risks, uncertainties and assumptions that are difficult to predict, and which may not be accurate, especially in light of COVID-19. Actual results may vary. These forward-looking statements should be considered only in conjunction with the detailed information, particularly the risk factors that are contained in our SEC filings.

At this point, I would like to turn it over to Ted.

Ted Fernandez

Thank you, Rob, and welcome everyone to our third-quarter earnings call. As we normally do, I will open the call with some overview comments on the quarter. I will then turn it back over to Rob to review our detailed operating results, cash flow and provide our quarterly guidance. We will then review our market strategy-related comments, after which we will open it up for Q&A.

This afternoon, we reported total revenues of $72 million and revenues before reimbursements of $71 million, and adjusted earnings per share of $0.37, which was above our quarterly guidance, and up 19% on a year-over-year basis. Our results were driven by 11% growth in revenues before reimbursements from our Global S&BT Group, which also reported the year-over-year segment profit growth of 18%. This growth was driven by our strong S&BT consulting performance and by the growth and increasing revenue mix of our higher-margin Research Advisory and IP-as-a-service offering. This highlights the reasons, why we have accelerated our investments in this area.