Resources Connection, Inc. (NASDAQ:RGP) Q3 2022 Results Conference Call April 6, 2022 5:00 PM ET

Company Participants

Kate Duchene - CEO

Tim Brackney - President and COO

Jenn Ryu - CFO

Operator

Good afternoon, ladies and gentlemen, and welcome to the Resources Connection, Inc. Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

At this time, I'd like to remind everyone that management will be commenting on results for the Third Quarter Ended February 26, 2022. They will also refer to certain non-GAAP financial measures. An explanation and reconciliation of the measures to the most comparable GAAP financial measures are included in the press release issued today. Today's press release can be viewed in Investor Relations section of RGP's website and also filed today with the SEC.

Also during this call, management may make forward-looking statements regarding plans, initiatives, and strategies, and the anticipated financial performance of the Company. Such statements are predictions and actual events or results may differ materially. Please see the Risk Factors section in RGP's report on Form 10-K for the year ended May 28, 2021 for a discussion of risks, uncertainties, and other factors that may cause the Company's business, results of operations, and financial condition to differ materially from what is expressed or implied by forward-looking statements made during this call.

I'll now turn the call over to RGP's CEO, Kate Duchene.

Kate Duchene

Thank you, operator. Good afternoon, everyone, and welcome to our call today.

We will keep our remarks brief, as we hope to see you at our Investor Day next week on April 12th at NASDAQ MarketSite.

We’re pleased to announce outstanding Q3 operating results. We’ve achieved record top-line Q3 revenue and well exceeded the high end of our guidance range. Q3 revenue was the highest attained during the same period since the Company's founding over 23 years ago, with 32% growth year-over-year. Moreover, we achieved growth across all client segments, including strategic global accounts and regional accounts, as well as all major geographies. We’ve also dramatically improved profitability year-over-year. Adjusted EBITDA more than doubled versus the prior year quarter to $22.5 million and adjusted EBITDA margin improved to 11%. This is a fantastic result for a holiday-impacted quarter.

These financial accomplishments reinforce that our strategies are working. We have successfully built a business model and consulting capabilities that are more relevant and essential than ever in today's environment.