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Sep 30, 2023

Heidrick & Struggles Q3 2023 Earnings Report

Heidrick & Struggles reported a year-over-year revenue growth and maintained a double-digit adjusted EBITDA margin despite macro uncertainty.

Key Takeaways

Heidrick & Struggles reported a 3% year-over-year increase in revenue to $263.2 million for Q3 2023. The company's adjusted EBITDA margin remained strong at 12.3%. Growth was seen in On-Demand Talent, Heidrick Consulting, and Executive Search in Europe, which was partially offset by declines in Executive Search in Asia Pacific and the Americas.

Net revenue increased 3% year over year to $263.2 million.

Operating income increased sequentially by $8.6 million and the operating margin was 8.4%.

Adjusted EBITDA margin was 12.3%.

Diluted earnings per share was $0.73.

Total Revenue
$263M
Previous year: $255M
+3.1%
EPS
$0.73
Previous year: $1
-27.0%
Executive Search
$1.9M
Previous year: $2.2M
-13.6%
Avg. Revenue per Search
$153K
Previous year: $155K
-1.3%
Adjusted EBITDA
$32.3M
Previous year: $33.3M
-3.0%
Gross Profit
$70M
Previous year: $69M
+1.4%
Cash and Equivalents
$286M
Previous year: $275M
+4.0%
Free Cash Flow
$107M
Previous year: $135M
-20.7%
Total Assets
$1.04B
Previous year: $1.07B
-3.0%

Heidrick & Struggles

Heidrick & Struggles

Heidrick & Struggles Revenue by Segment

Heidrick & Struggles Revenue by Geographic Location

Forward Guidance

The Company expects 2023 fourth quarter consolidated net revenue of between $240 million and $260 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income