HireRight Holdings Corporation (NYSE:HRT) Q3 2023 Earnings Conference Call November 7, 2023 8:30 AM ET

Company Participants

Guy Abramo - President & CEO

Tom Spaeth - CFO

Andrew Hay - VP, Treasury & IR

Conference Call Participants

Andrew Nicholas - William Blair

Mark Marcon - Baird

Kyle Peterson - Needham & Co.

Ronan Kennedy - Barclays

Scott Wurtzel - Wolfe Research

Stephanie Moore - Jefferies

George Tong - Goldman Sachs

Operator

Good morning, ladies and gentlemen, and welcome to HireRight's Third Quarter 2023 Conference Call.

Joining today's call are the company's President and Chief Executive Officer, Guy Abramo; Chief Financial Officer, Tom Spaeth; and VP of Treasury and Investor Relations, Andrew Hay. At this time, all participants are in a listen-only mode.

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 on 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, new business and customer retention, partnerships with HCM providers, biometric screening capabilities, cost reduction initiatives and improving profitability, cash flow and updated outlook. Such statements are 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 Annual Report on Form 10-K filed with the SEC, in particular, the section of that document entitled Cautionary Note Regarding Forward-Looking Statements and Risk Factors summary in the 10-K and Management's Discussion and Analysis of Financial Condition and Results of Operations.

It is now my pleasure to turn the call over to Guy Abramo.

Guy Abramo

Thank you, operator, and good morning.

I appreciate everyone taking the time with us as we share our third quarter 2023 results. For the past four quarters, we successfully executed in a challenging macro environment with inconsistent economic data, geopolitical turmoil and an ever-evolving employment market. With this as a backdrop, we remain focused on what we can control, and we are pleased with our execution to-date.

For the third quarter, revenue was $188.3 million, down $22 million year-over-year. Base hiring volumes remained significantly lower than this time last year, and Tom will provide a breakdown by our growth algorithm later in the call. To refresh your memory, when we say base hiring volumes, that is analogous to same-store sales and does not indicate client losses.