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Jun 30, 2023

Heidrick & Struggles Q2 2023 Earnings Report

Reported a sequential revenue growth of 13%, including 10% organic growth, and maintained a strong balance sheet post-acquisitions.

Key Takeaways

Heidrick & Struggles reported second quarter results with a 13% sequential revenue increase, including 10% organic growth. The company's adjusted EBITDA increased 33% sequentially, and integrations of recent acquisitions are progressing smoothly.

Net revenue of $271.2 million increased 13% sequentially, 10% organically.

Operating income of $13.6 million decreased $4.2 million sequentially and operating margin was 5.0%.

Adjusted EBITDA of $36.4 million increased 33% sequentially and adjusted EBITDA margin was 13.4%.

Net income was $9.0 million and diluted earnings per share was $0.44; adjusted net income was $15.0 million and adjusted diluted earnings per share was $0.73.

Total Revenue
$271M
Previous year: $299M
-9.2%
EPS
$0.73
Previous year: $1.19
-38.7%
Executive Search
$1.9M
Previous year: $2.6M
-26.9%
Avg. Revenue per Search
$143K
Previous year: $153K
-6.3%
Adjusted EBITDA
$36.4M
Previous year: $36.8M
-1.1%
Gross Profit
$69.6M
Previous year: $76M
-8.5%
Cash and Equivalents
$218M
Previous year: $337M
-35.3%
Free Cash Flow
$43.9M
Previous year: $80.3M
-45.3%
Total Assets
$964M
Previous year: $982M
-1.8%

Heidrick & Struggles

Heidrick & Struggles

Heidrick & Struggles Revenue by Segment

Heidrick & Struggles Revenue by Geographic Location

Forward Guidance

The Company expects 2023 third quarter consolidated net revenue of between $245 million and $265 million.

Challenges Ahead

  • typical summer seasonality
  • continued fluidity in external factors, such as the foreign exchange and interest rate environments
  • foreign conflicts
  • inflation
  • macroeconomic constraints on pricing actions

Revenue & Expenses

Visualization of income flow from segment revenue to net income