Heidrick & Struggles Q1 2022 Earnings Report
Key Takeaways
Heidrick & Struggles announced record first quarter 2022 results, with net revenue of $284 million, a 47% increase over the prior year. The company achieved record profitability, driven by strong performance in Executive Search, growth in On-Demand Talent, and the expanding impact of Heidrick Consulting.
Net revenue reached a record $283.9 million, an increase of 46.6% versus the prior year period.
Operating income increased to $30.2 million, 54.2% higher than the prior year period.
Adjusted EBITDA was $35.7 million and grew 19.4% year-over-year, and adjusted EBITDA margin was 12.6%.
Net income climbed 24.5% to $18.5 million, and diluted earnings per share was $0.90.
Heidrick & Struggles
Heidrick & Struggles
Heidrick & Struggles Revenue by Segment
Heidrick & Struggles Revenue by Geographic Location
Forward Guidance
The Company expects 2022 second quarter consolidated net revenue of between $290 million and $300 million, while acknowledging that some continued fluidity in external factors such as foreign conflicts, the interest rate environment, and the COVID-19 pandemic may impact quarterly results.
Positive Outlook
- Anticipated volume of new Executive Search confirmations
- On-Demand Talent projects
- Heidrick Consulting assignments
- Current backlog
- Consultant productivity
Challenges Ahead
- Foreign conflicts
- Interest rate environment
- COVID-19 pandemic
- Consultant retention
- Seasonality of the business
Revenue & Expenses
Visualization of income flow from segment revenue to net income