HireRight Holdings Corporation (NYSE:HRT) Q2 2023 Earnings Conference Call August 8, 2023 5:00 PM ET

Company Participants

Andrew Hay - Vice President, Treasury and Investor Relations

Guy Abramo - President and Chief Executive Officer

Tom Spaeth - Chief Financial Officer

Conference Call Participants

Andrew Nicholas - William Blair

Sam Salvas - Needham

George Tong - Goldman Sachs

Shlomo Rosenbaum - Stifel

Mark Marcon - Baird

Ronan Kennedy - Barclays

Stephanie Moore - Jefferies

Operator

Good afternoon, ladies and gentlemen, and welcome to HireRight’s Second Quarter 2023 Conference Call. Joining today’s call is the company’s President and Chief Executive Officer, Guy Abramo; Chief Financial Officer, Tom Spaeth; and VP of Treasury and Investor Relations, Andrew Hay. [Operator Instructions]

I remind everyone that management will refer to certain non-GAAP financial measures. An explanation and reconciliation of these measures to the most comparable GAAP financial measures is included in the press release issued today, which is available in the Investor Relations section of HireRight’s website. Also, during this call, management’s remarks will include forward-looking statements, including related to macroeconomic conditions, demand for the company’s services and the company’s technology improvement and cost reduction initiatives as well as our updated guidance. Such statements or predictions and actual results may differ materially.

Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in Form 10-K filed with the Securities and Exchange Commission in the section of the document entitled Risk Factors, Forward-Looking Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Now, it is my pleasure to turn the call over to Guy Abramo. Please go ahead, sir.

Guy Abramo

Thank you, operator, and good afternoon. I appreciate everyone taking the time with us as we share our second quarter 2023 results. In the current global economic environment, as much as things change, they seem to stay the same. In spite of inconsistent conflicting economic signals, hiring reports and projections, our customers seasonal hiring patterns were consistent with prior years, albeit at a lower volume.

For the quarter, we generated revenues of $192.1 million. While revenues were down 13.6% compared to the same period in 2022, our adjusted EBITDA margin grew over 300 basis points to 27.4%. As I’ve discussed many times, since our IPO, we have invested in developing a more automated back-office fulfillment system, leveraging various AI technologies. The result is that this increases our degree of automation in completing a search, for example, automatically matching our customer search guidelines with our databases and public records.