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Jun 30, 2022

Heidrick & Struggles Q2 2022 Earnings Report

Reported record quarterly results with net revenue climbing 15% over prior year.

Key Takeaways

Heidrick & Struggles announced record quarterly revenue of $298.7 million, a 14.9% increase year-over-year. Diluted EPS was $1.19, with an adjusted EBITDA margin of 12.3%. The company's cash balance reached a second-quarter high of $336.6 million.

Net revenue reached a record $298.7 million, an increase of 14.9% versus the prior year period

Operating income increased to $33.9 million, 18.0% higher than the prior year period

Net income and adjusted net income were $24.1 million; diluted and adjusted diluted earnings per share were $1.19; year-to-date diluted earnings per share reached a record $2.08

Adjusted EBITDA was $36.8 million and adjusted EBITDA margin was 12.3%

Cash and cash equivalents was $336.6 million, 41.5% higher than at June 30, 2021

Total Revenue
$299M
Previous year: $260M
+14.9%
EPS
$1.19
Previous year: $1.14
+4.4%
Executive Search
$2.6M
Previous year: $2.4M
+8.3%
Avg. Revenue per Search
$153K
Previous year: $133K
+15.0%
Adjusted EBITDA
$36.8M
Previous year: $37.6M
-2.1%
Gross Profit
$76M
Previous year: $60.5M
+25.6%
Cash and Equivalents
$337M
Previous year: $238M
+41.5%
Free Cash Flow
$80.3M
Previous year: $88.5M
-9.3%
Total Assets
$982M
Previous year: $832M
+18.0%

Heidrick & Struggles

Heidrick & Struggles

Heidrick & Struggles Revenue by Segment

Heidrick & Struggles Revenue by Geographic Location

Forward Guidance

The Company expects 2022 third quarter consolidated net revenue of between $260 million and $270 million, while acknowledging that some continued fluidity in external factors such as foreign conflicts, inflation, the interest rate and foreign exchange rate environments may impact quarterly results.

Positive Outlook

  • Anticipated volume of new Executive Search confirmations
  • On-Demand Talent projects
  • Heidrick Consulting assignments
  • Consultant productivity
  • Consultant retention

Challenges Ahead

  • Some continued fluidity in external factors
  • Foreign conflicts
  • Inflation
  • Interest rate environment
  • Foreign exchange rate environments

Revenue & Expenses

Visualization of income flow from segment revenue to net income