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Mar 31, 2023

Heidrick & Struggles Q1 2023 Earnings Report

Reported first quarter results, completed acquisitions of Atreus and businessfourzero, and maintained strong profitability despite macroeconomic headwinds.

Key Takeaways

Heidrick & Struggles reported a decrease in first quarter revenue compared to the previous year, but maintained strong profitability with an Adjusted EBITDA margin of nearly 12%. The company continued to advance its diversification strategy with the acquisition of businessfourzero and the ongoing integration of Atreus.

Net revenue of $239.3 million; on a constant currency basis net revenue was $244.8 million

Operating income of $17.8 million and operating margin of 7.4%

Adjusted EBITDA of $27.5 million with Adjusted EBITDA margin of 11.5%

Net income of $15.6 million and diluted earnings per share of $0.76

Total Revenue
$239M
Previous year: $284M
-15.7%
EPS
$0.76
Previous year: $0.9
-15.6%
Executive Search
$1.8M
Previous year: $2.5M
-28.0%
Avg. Revenue per Search
$124K
Previous year: $124K
+0.0%
Adjusted EBITDA
$27.5M
Previous year: $35.7M
-23.1%
Gross Profit
$60.4M
Previous year: $66.1M
-8.6%
Cash and Equivalents
$205M
Previous year: $268M
-23.6%
Free Cash Flow
-$341M
Previous year: -$264M
+29.1%
Total Assets
$891M
Previous year: $896M
-0.5%

Heidrick & Struggles

Heidrick & Struggles

Heidrick & Struggles Revenue by Segment

Heidrick & Struggles Revenue by Geographic Location

Forward Guidance

The Company expects 2023 second quarter consolidated net revenue of between $260 million and $280 million, while acknowledging that continued fluidity in external factors, such as the foreign exchange and interest rate environments, foreign conflicts, inflation and macroeconomic constraints on pricing actions, may impact quarterly results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income