HireRight Results Presentation Deck
Q3 2023 Highlights - Focus on Margin Improvement
Revenue
$188.3 million
Adjusted EBITDA (¹)
$52.1 million
Adjusted NI(¹)
$24.6 million
Balance Sheet/
Liquidity
Capital Allocation
(1) See Reference / Definitions
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Down ~10.5% vs. Q3 22 primarily due to reduced or deferred hiring patterns
9% growth from Upsells and New Logos
Strong Gross Retention of 96.8% across existing customers
Down $1.9 million vs. PY despite lower revenues
Adjusted EBITDA Margin grew over 200 bps to 27.7% due to improved delivery cost of service
Restructuring plan contributing to margin growth
~$5.2 million decline vs PY driven by lower operating income and higher interest rates on our debt
Net leverage ratio 3.7x vs. 2.9x at Q3 2022
$103 million of available unrestricted cash, $262 million total liquidity
Unlevered 9 months Free Cash Flow of $95.8 million essentially flat to prior year
Refinanced Term Loan increasing principal to $750M and extending the maturity to 2030
Added incremental $15M to Revolver Facility to $160M - No outstanding borrowings since Q4 21
Repurchased $24M shares in the quarter - Announced an incremental $25 million program in
September
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