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Jun 30, 2024

Heidrick & Struggles Q2 2024 Earnings Report

Delivered strong revenue performance with robust profitability. Restructuring for accelerated growth implemented in the quarter.

Key Takeaways

Heidrick & Struggles reported a strong second quarter with net revenue growing to $278.6 million, driven by all businesses. Adjusted EBITDA was $28.8 million with a margin of 10.3%. The company also implemented restructuring for accelerated growth during the quarter.

Net revenue grew to $278.6 million driven by all businesses

Adjusted EBITDA was $28.8 million

Adjusted EBITDA margin was 10.3%

Declared $0.15 Per Share Cash Dividend

Total Revenue
$279M
Previous year: $271M
+2.7%
EPS
$0.67
Previous year: $0.73
-8.2%
Executive Search
$2M
Previous year: $1.9M
+5.3%
Avg. Revenue per Search
$151K
Previous year: $143K
+5.6%
Adjusted EBITDA
$28.8M
Previous year: $36.4M
-20.9%
Gross Profit
$71M
Previous year: $69.6M
+2.1%
Cash and Equivalents
$297M
Previous year: $218M
+36.3%
Free Cash Flow
$52.2M
Previous year: $43.9M
+18.7%
Total Assets
$1.02B
Previous year: $964M
+5.4%

Heidrick & Struggles

Heidrick & Struggles

Heidrick & Struggles Revenue by Segment

Heidrick & Struggles Revenue by Geographic Location

Forward Guidance

The Company expects 2024 third quarter consolidated net revenue of between $260 million and $280 million, while acknowledging that continued fluidity in external factors may impact quarterly results.

Positive Outlook

  • Based on the average currency rates in June 2024
  • Reflects management's assumptions for the anticipated volume of new Executive Search confirmations
  • Reflects management's assumptions for the anticipated volume of new On-Demand Talent projects
  • Reflects management's assumptions for the anticipated volume of Heidrick Consulting assignments
  • Reflects management's assumptions for consultant productivity and retention

Challenges Ahead

  • Continued fluidity in external factors
  • 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