HireRight Holdings Corporation (NYSE:HRT) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET

Company Participants

Guy Abramo - CEO, President & Director

Thomas Spaeth - CFO

Conference Call Participants

George Tong - Goldman Sachs

Ashish Sabadra - RBC Capital Markets

Kevin McVeigh - Crédit Suisse

Kyle Peterson - Needham & Company

John Kennedy - Barclays Bank

Devin Au - KeyBanc Capital Markets

Mark Marcon - Robert W. Baird & Co.

Andrew Nicholas - William Blair & Company

Stephanie Moore - Jefferies

Gustavo Gala - Truist Securities

Operator

Good afternoon, ladies and gentlemen, and welcome to the HireRight Third Quarter 2022 Conference Call. Joining today's call is the company's President and Chief Executive Officer, Guy Abramo; and Chief Financial Officer, Tom Spaeth. [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 related to HireRight's market opportunities, customer retention, competitive differentiation, growth expectations, operational improvements, strategies to increase revenue and margins, growth prospects for industry sectors and our international business, labor market and economic trends, effects of macroeconomic uncertainty, future cash flows, and financial performance, including 2022 guidance.

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 forward-looking statements is contained in Form 10-K filed with the Securities and Exchange Commission, in particular, in the sections of that document entitled Risk Factors, Forward-Looking Statements, and Management's Discussion and Analysis of Financial Condition and Results of Operations.

Now it's my pleasure to turn the call over to Guy Abramo. Please go ahead.

Guy Abramo

Thank you, operator, and good afternoon, everyone. We're pleased to have you with us today as we celebrate 1 year as a public company and report another solid quarter of results in an increasingly uncertain environment.

For this fiscal third quarter, revenue was USD210 million, an increase of USD5 million over last year's solid results. Importantly, our strength reflects continued high client retention of 97%, increased upsells and package expansion to existing customers, new logo wins in our targeted end markets, and our team's commitment to growing our core verticals.

Our account management and go-to-market teams are focused on developing new global client relationships while expanding existing relationships across all of our regions. I indicated on our last call that we expected to see more normalizing trends as the year progressed and Q3 reflects just that. It is our first year-over-year normalized results following the impact of the pandemic on prior quarterly results and demonstrates the demand for our high-quality solutions across all of our regions and verticals.