HIRERIGHT HOLDINGS CORP

Workforce Management Insights

• Hiring Trends

  • New customer bookings reached $23 million during the third quarter, driven by investments in technology and applicant-facing platforms.
  • Significant growth observed in health care, technology, financial services, and transportation sectors.
  • The ongoing recovery from the pandemic is expected to boost hiring volumes, especially among Small and Medium Businesses (SMBs), which hire nearly half of all U.S. labor.

• Diversity Initiatives

  • HireRight caters to a diverse international customer base across major industries, ensuring comprehensive screening solutions to meet complex hiring requirements driven by diverse job roles.

• Responses to Labor Shortages

  • The company has adapted its offerings to support gig economy leaders, positioning itself to cater to companies reliant on gig workers.
  • Partnerships with companies like Uber and Lyft have been established to enhance safety and security within their workforce.
  • Investment priorities have shifted towards automating back-office processes to improve the screening experience and reduce costs, which aligns with the overarching need for efficiency in addressing labor challenges.

Performance Metrics

• Third quarter total revenue for HireRight was $205 million, reflecting a 57% year-over-year increase.
• Adjusted EBITDA reached $51.6 million, showing an 84% growth compared to the same period in the previous year, indicating robust profitability amid the recovery phase.
• Net revenue retention stood at 134%, highlighting strong customer loyalty and upscale potential within existing accounts.

Geographical Growth

• International orders are growing twice as fast as U.S. orders, showcasing HireRight's expanding footprint.
• Recently opened a Latin American headquarters in Mexico City to enhance services in rapid-growth regions.

Summary

HireRight is effectively responding to workforce management challenges by focusing on technology investments, strengthening customer relationships, and enhancing its solutions to meet the complex demands of various industries. The company's performance metrics indicate a favorable trend amidst ongoing labor challenges and an evolving economic landscape.