On this page of StockholderLetter.com we present the latest annual shareholder letter from CRA INTERNATIONAL, INC. — ticker symbol CRAI. Reading current and past CRAI letters to shareholders can bring important insights into the investment thesis.
Annual Report 2023
World Headquarters
200 Clarendon Street
Boston, Massachusetts
02116-5092
+1-617-425-3000 tel
www.crai.com
002CSNEB67
Charles River Associates
Charles River Associates   is a leading global consulting firm specializing in economic,
financial, and management consulting services. CRA advises clients on economic
and financial matters pertaining to litigation and regulatory proceedings, and guides
corporations through critical business strategy and performance-related issues. Since
1965, clients have engaged CRA for its unique combination of functional expertise and
industry knowledge, and for its objective solutions to complex problems. Headquartered
in Boston, CRA has offices throughout the world. Charles River Associates is a registered
trade name of CRA International, Inc.
Dear Fellow Shareholders:
I am pleased to report that CRA once again exhibited tremendous strength and resiliency during fiscal 2023,
a year characterized by macroeconomic disruptions that included bank failures, interest rate volatility, a slowdown
in M&A transaction activity, and geopolitical crises. Despite these challenges, CRA once again set a new financial
high as fiscal 2023 revenue grew by 5.6% to $624.0 million, topping what had been a record-setting fiscal 2022
and marking the sixth consecutive year in which CRA set a record for annual revenue.
The record revenue notwithstanding, CRA did experience some uncharacteristic volatility in fiscal 2023. The
conversion of project lead flow dipped below historical norms while employee retention was unusually high,
reaching rates not seen since the COVID-related lockdowns. These factors especially impacted our third quarter,
causing revenue growth to slow and margins to shrink. In the face of this unexpected weakness, CRA   s long
history of strong performance gave our management team the confidence to stay the course. Our conviction in
the quality of the business was quickly validated as the fourth quarter delivered a strong conclusion to the year,
with revenue increasing by 11.5% year over year and profits growing at even faster rates.
The resiliency of our results reflects the strength of our client relationships. CRA remains the firm of choice for
companies facing their most important legal, regulatory, and strategic challenges. As summarized in Exhibit 1
below, CRA   s market-leading position has driven our success over both the short term and the long run.
Exhibit 1: Selected Operating and Capital Metrics
Revenue
Growth
Fiscal Q4
2023**
Fiscal 2023
11%
6%
Headcount
Growth
EPS
Growth*
7%
19%
7%
-5%
46%
101%
utilization of 73%
49%
utilization of 72%
Cash
Dividends
$8M
$3M
$31M
$11M
$135M
$43M
average price of
$93 per share
utilization of 70%
Fiscal Years
2019-2023
Stock
Repurchases
average price of
$106 per share
average price of
$70 per share
*Presented on a non-GAAP basis.1 | **Growth rates are calculated on a year-over-year basis.
1
With respect to each non-GAAP financial measure presented in this letter, the comparable GAAP financial measure and a reconciliation of it to
the non-GAAP financial measure are presented on the page following this letter.
Operating Performance
As noted, fiscal 2023 was punctuated by an unexpected third-quarter slowdown in new project originations at a
time of higher-than-expected headcount, resulting in an unusual departure from CRA   s long history of delivering
revenue and profit expansion. These conditions proved brief, as performance bounced back in the fourth quarter.
With conversion rates improving and as consultant headcount better aligned with our expectations, firm-wide
utilization surged to 73% in the fourth quarter from the 66% reported in the prior quarter.
For the full year, CRA achieved utilization of 70%, while welcoming more than 200 new consulting colleagues to
the team. These additions pushed year-end headcount to 1,004, which represented a 6.9% increase year over
year and the tenth consecutive increase in CRA   s year-end consulting headcount. Exhibit 2 summarizes our
consulting headcount and utilization over the past five years.
Exhibit 2: Consulting Headcount and Utilization
100%
1,250
90%
1,000
75%
69%
75%
74%
80%
70%
70%
60%
750
50%
500
779
831
939
861
1,004
40%
30%
20%
250
10%
0%
0
2019
2020
2021
Year-End Headcount
2022
2023
Utilization
CRA once again established a new high for annual revenue, which increased 5.6% to $624.0 million. CRA   s
revenue growth for the year was balanced geographically, as our North American operations expanded by 5.3%
and international operations grew by 6.9%. For fiscal 2023, seven of CRA   s 11 practices expanded their top lines,
with two practices     Forensic Services and Labor & Employment     delivering double-digit revenue growth relative
to fiscal 2022. Exhibit 3 summarizes our revenue over the past five years.
 • shareholder letter icon 5/31/2024 Letter Continued (Full PDF)
 • stockholder letter icon 5/26/2023 CRAI Stockholder Letter
 • stockholder letter icon More "Business Services & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon CRAI Benford's Law Stock Score = 81


CRAI Shareholder/Stockholder Letter Transcript:

Annual Report 2023
World Headquarters
200 Clarendon Street
Boston, Massachusetts
02116-5092
+1-617-425-3000 tel
www.crai.com
002CSNEB67


Charles River Associates
Charles River Associates   is a leading global consulting firm specializing in economic,
financial, and management consulting services. CRA advises clients on economic
and financial matters pertaining to litigation and regulatory proceedings, and guides
corporations through critical business strategy and performance-related issues. Since
1965, clients have engaged CRA for its unique combination of functional expertise and
industry knowledge, and for its objective solutions to complex problems. Headquartered
in Boston, CRA has offices throughout the world. Charles River Associates is a registered
trade name of CRA International, Inc.

Dear Fellow Shareholders:
I am pleased to report that CRA once again exhibited tremendous strength and resiliency during fiscal 2023,
a year characterized by macroeconomic disruptions that included bank failures, interest rate volatility, a slowdown
in M&A transaction activity, and geopolitical crises. Despite these challenges, CRA once again set a new financial
high as fiscal 2023 revenue grew by 5.6% to $624.0 million, topping what had been a record-setting fiscal 2022
and marking the sixth consecutive year in which CRA set a record for annual revenue.
The record revenue notwithstanding, CRA did experience some uncharacteristic volatility in fiscal 2023. The
conversion of project lead flow dipped below historical norms while employee retention was unusually high,
reaching rates not seen since the COVID-related lockdowns. These factors especially impacted our third quarter,
causing revenue growth to slow and margins to shrink. In the face of this unexpected weakness, CRA   s long
history of strong performance gave our management team the confidence to stay the course. Our conviction in
the quality of the business was quickly validated as the fourth quarter delivered a strong conclusion to the year,
with revenue increasing by 11.5% year over year and profits growing at even faster rates.
The resiliency of our results reflects the strength of our client relationships. CRA remains the firm of choice for
companies facing their most important legal, regulatory, and strategic challenges. As summarized in Exhibit 1
below, CRA   s market-leading position has driven our success over both the short term and the long run.
Exhibit 1: Selected Operating and Capital Metrics
Revenue
Growth
Fiscal Q4
2023**
Fiscal 2023
11%
6%
Headcount
Growth
EPS
Growth*
7%
19%
7%
-5%
46%
101%
utilization of 73%
49%
utilization of 72%
Cash
Dividends
$8M
$3M
$31M
$11M
$135M
$43M
average price of
$93 per share
utilization of 70%
Fiscal Years
2019-2023
Stock
Repurchases
average price of
$106 per share
average price of
$70 per share
*Presented on a non-GAAP basis.1 | **Growth rates are calculated on a year-over-year basis.
1
With respect to each non-GAAP financial measure presented in this letter, the comparable GAAP financial measure and a reconciliation of it to
the non-GAAP financial measure are presented on the page following this letter.

Operating Performance
As noted, fiscal 2023 was punctuated by an unexpected third-quarter slowdown in new project originations at a
time of higher-than-expected headcount, resulting in an unusual departure from CRA   s long history of delivering
revenue and profit expansion. These conditions proved brief, as performance bounced back in the fourth quarter.
With conversion rates improving and as consultant headcount better aligned with our expectations, firm-wide
utilization surged to 73% in the fourth quarter from the 66% reported in the prior quarter.
For the full year, CRA achieved utilization of 70%, while welcoming more than 200 new consulting colleagues to
the team. These additions pushed year-end headcount to 1,004, which represented a 6.9% increase year over
year and the tenth consecutive increase in CRA   s year-end consulting headcount. Exhibit 2 summarizes our
consulting headcount and utilization over the past five years.
Exhibit 2: Consulting Headcount and Utilization
100%
1,250
90%
1,000
75%
69%
75%
74%
80%
70%
70%
60%
750
50%
500
779
831
939
861
1,004
40%
30%
20%
250
10%
0%
0
2019
2020
2021
Year-End Headcount
2022
2023
Utilization
CRA once again established a new high for annual revenue, which increased 5.6% to $624.0 million. CRA   s
revenue growth for the year was balanced geographically, as our North American operations expanded by 5.3%
and international operations grew by 6.9%. For fiscal 2023, seven of CRA   s 11 practices expanded their top lines,
with two practices     Forensic Services and Labor & Employment     delivering double-digit revenue growth relative
to fiscal 2022. Exhibit 3 summarizes our revenue over the past five years.



shareholder letter icon 5/31/2024 Letter Continued (Full PDF)
 

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