2022 was a very successful year for Robert Half. We grew both full-year revenues and earnings per share by double digits and achieved new record levels for each. Our talent solutions and business consulting operations reached all-time highs, over and above the very strong growth achieved in the prior year. We successfully navigated globally tight labor markets to fulfill the critical talent needs of our clients by combining the power of our advanced artificial intelligence-based technologies with the unique expertise of our specialized recruiting professionals. We also provided clients the deep skills needed to solve their business problems through a diversified suite of consulting solutions.Full-year global revenues were $7.24 billion in 2022, an increase of 12% from $6.46 billion in 2021. U.S. revenues increased by 14% to $5.71 billion. International revenues grew by 5% (15% adjusted for currency) to $1.53 billion compared with 2021 and accounted for 21% of the total revenue for the Company.Net income increased 10% to $658 million, or $6.03 per share, compared with net income of $599 million, or $5.36 per share, in 2021.Cash flow from operations for the year was $684 million, up 13% from $603 million in 2021. In 2022, we distributed $1.72 per share in cash dividends to our shareholders for a total cash outlay of $189 million. We also repurchased approximately 3 million Robert Half shares during the year for $280 million. Return on invested capital was 45% for the year.Our talent solutions operations performed well in 2022 and grew revenues by 14% to $5.26 billion. Permanent placement led the way with revenue growth of 27%. Contract talent solutions also grew revenues by double digits, led by our finance and accounting practice group.Protiviti, our global business consulting subsidiary, celebrated its 20th anniversary by achieving record revenues of $1.98 billion and extended its streak of multiple years of consecutive growth. For 2022, it contributed over 30% of the Company’s combined segment income. Protiviti continues to have a very strong pipeline across its solutions offerings, including internal audit, technology consulting, regulatory risk and compliance, and business process improvement, which includes fast-growing blended solutions with our talent solutions operations.
Our enterprise values — integrity, inclusion, innovation and commitment to success — serve as the cornerstones for everything we do with our employees, clients, candidates and suppliers. Our values also drive our environmental, social and governance (ESG) efforts, which are embedded in our culture and include our ongoing commitment to diversity, equity and inclusion.We recently submitted science-based targets for validation by the Science Based Targets initiative, the leading standard-setter in emissions reductions. These targets formalize our commitment to operational and supply chain sustainability. We further amplify our own ESG impact through Protiviti’s ESG services to its clients.
"Our values also drive our environmental, social and governance efforts, which are embedded in our culture and include our ongoing commitment to diversity, equity and inclusion."
Read more about our ESG activities by topic area in our new report, Leading with Integrity: Robert Half’s 2022 ESG Report, available on our website.
In 2022, we made significant enhancements to our artificial intelligence (AI) capabilities to further transform the way we discover, assess and select talent for our clients. We have a tremendous amount of placement data, accumulated over decades, that is available only to us and is critical to our AI’s effectiveness. This includes over 30 million candidates in our global database.Our proprietary AI technology strengthens our ability to match top talent with hard-to-fill positions, and it plays an increasing role in the hundreds of thousands of placements we make annually. Using AI, we can generate in real time a shortlist of professionals who have a proven track record with Robert Half, who are active in the job market, and whose skills and work history closely match clients’ requirements. Hybrid and remote talent can also easily be included irrespective of geographic location. Our AI technology represents a meaningful competitive advantage for the Company.We’ve also embedded this technology in our award-winning mobile app, resulting in a very high placement rate for candidates who use it, particularly those who receive our AI-driven job recommendations. Our mobile app again received the prestigious Gold Stevie award for its excellence in innovation, including new features and functionality introduced in 2022.The world-class experience our clients and candidates have come to expect from us requires more than just AI and technology alone. It also requires the skills, judgment and expertise of our specialized recruiting professionals. It is our unique and powerful combination of both that sets us apart in the marketplace.
Global labor markets remain tight, and the demand for talent remains high, notwithstanding elevated levels of economic uncertainty. Clients continue to hire, albeit at a more measured pace, and this lengthens our sales cycle. While this cautiousness impacts us in the short term, we’re very optimistic about our longer-term outlook. We’ve successfully navigated many economic cycles in the past, each time achieving higher peaks. This was demonstrated by our ability to achieve the fastest recovery in our Company’s history following the COVID-19 downturn. We also continue to benefit from Protiviti’s resiliency, which stems from its diversified solutions offerings that are much less tied to the economic cycle.Further, we’re encouraged by the longer-term growth and margin prospects from our continued focus on services related to higher-skilled talent, both in talent solutions and Protiviti. In addition, the structural shift to remote work has created a new competitive advantage for us, as it leverages the combined strengths of our global brand, office network, candidate database and advanced AI-driven technologies.We remain committed to our time-tested corporate purpose — to connect people to meaningful work and provide clients with the talent and subject matter expertise they need to confidently compete and grow.We want to thank all our employees across the globe, who put so much energy into achieving our results during 2022 and whose dedication and exemplary efforts continue each and every day. Their efforts made possible a record number of awards and accolades in 2022, including, among many others, a Fortune® Most Admired Company™ for the 25th consecutive year, Forbes’ Best Employers for Diversity, Forbes’ Best Employers for Women, Fortune® Best Workplaces for Women™ and Best Workplaces for Parents™ by Great Place to Work®.
"We remain committed to our time-tested corporate purpose — to connect people to meaningful work and provide clients with the talent and subject matter expertise they need to confidently compete and grow."
We would also like to express our appreciation to our board of directors for their guidance and counsel during 2022 and to you, our shareholders, for your continued support of Robert Half.Respectfully submitted,