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Mar 31, 2020

Heidrick & Struggles Q1 2020 Earnings Report

First quarter results were announced, with net revenue in-line with the prior year and operating income increasing.

Key Takeaways

Heidrick & Struggles reported first quarter results with net revenue of $171.5 million, consistent with the prior year. Operating income increased by 10.7% to $18.2 million, and adjusted EBITDA grew by 14.6% to $23.6 million. The company ended the quarter with $322 million in liquidity.

Net revenue of $171.5 million was in-line with record year-ago results of $171.6 million.

Operating income grew 10.7% to $18.2 million compared to $16.4 million in 2019.

Adjusted EBITDA grew 14.6% over prior year period to $23.6 million.

Operating margin expanded 100 basis points to 10.6% compared to 9.6% in last year’s first quarter.

Total Revenue
$171M
Previous year: $172M
-0.1%
EPS
$0.44
Previous year: $0.62
-29.0%
Executive Search
$1.6M
Previous year: $1.7M
-5.9%
Avg. Revenue per Search
$119K
Previous year: $124K
-4.1%
Adjusted EBITDA
$23.6M
Previous year: $20.6M
+14.6%
Gross Profit
$53.8M
Previous year: $55.5M
-3.1%
Cash and Equivalents
$251M
Previous year: $114M
+119.4%
Free Cash Flow
-$167M
Previous year: -$156M
+7.2%
Total Assets
$793M
Previous year: $672M
+17.9%

Heidrick & Struggles

Heidrick & Struggles

Heidrick & Struggles Revenue by Segment

Heidrick & Struggles Revenue by Geographic Location

Forward Guidance

Given the continued uncertainty due to the COVID-19 pandemic, the Company believes it is prudent to refrain from providing financial guidance for the 2020 second quarter at this time.