•
Mar 31, 2021
Heidrick & Struggles Q1 2021 Earnings Report
Reported record first quarter results with net revenue up double digits sequentially and year over year and operating margins returned to double-digit levels.
Key Takeaways
Heidrick & Struggles reported a record first quarter with a double-digit improvement in net revenue both sequentially and year over year, driven by broad-based strength across all businesses and geographies. Adjusted operating margin reached 12.1%, the highest since 2008.
Record net revenue of $193.7 million, up 12.9% year-over-year and 20.3% sequentially.
Operating income of $19.6 million and operating margin of 10.1%, including a $3.9 million restructuring charge.
Adjusted EBITDA of $28.9 million, with adjusted EBITDA margin increasing to 14.9%.
Acquired Business Talent Group (BTG) to expand and diversify offerings.
Heidrick & Struggles
Heidrick & Struggles
Heidrick & Struggles Revenue by Segment
Heidrick & Struggles Revenue by Geographic Location
Forward Guidance
The Company expects 2021 second quarter consolidated net revenue of between $215 million and $225 million.
Positive Outlook
- Anticipated volume of new Executive Search confirmations
- Heidrick Consulting assignments
- BTG projects and the current backlog
- Consultant productivity
- Consultant retention
Challenges Ahead
- Continued fluidity of the COVID-19 pandemic that may impact quarterly results
- Based on the average currency rates in March 2021
- Seasonality of its business
- Unfavorable tax law changes and tax authority rulings
- Increased cybersecurity requirements, vulnerabilities, threats and more sophisticated and targeted cyber-related attacks that could pose a risk to our systems, networks, solutions, services and data