•
Dec 31, 2020

Heidrick & Struggles Q4 2020 Earnings Report

Reported a sequential net revenue growth of 12% exceeding the high end of guidance.

Key Takeaways

Heidrick & Struggles reported Q4 2020 results with net revenue of $161.0 million, a 12.2% increase from the third quarter. Adjusted diluted earnings per share were $0.59. The company's cash and cash equivalents totaled $336.5 million.

Net revenue of $161.0 million increased 12.2% from 2020 third quarter trough

Adjusted operating income of $12.8 million up sequentially from $9.9 million and adjusted operating margin of 7.9% up 100 basis points sequentially

Adjusted EBITDA of $18.4 million up from $15.9 million in the 2020 third quarter and adjusted EBITDA margin up 40 basis points

Strong cash flow from operations of $96.3 million creating total liquidity of $506.1 million at year end

Total Revenue
$161M
Previous year: $180M
-10.6%
EPS
$0.59
Previous year: $0.54
+9.3%
Executive Search
$1.6M
Previous year: $1.7M
-5.9%
Avg. Revenue per Search
$125K
Previous year: $149K
-16.2%
Adjusted EBITDA
$18.4M
Previous year: $20.5M
-10.4%
Gross Profit
$41.4M
Previous year: $54.8M
-24.4%
Cash and Equivalents
$316M
Previous year: $272M
+16.5%
Free Cash Flow
$96.1M
Previous year: $42.5M
+125.9%
Total Assets
$788M
Previous year: $844M
-6.7%

Heidrick & Struggles

Heidrick & Struggles

Heidrick & Struggles Revenue by Segment

Heidrick & Struggles Revenue by Geographic Location

Forward Guidance

The Company expects 2021 first quarter consolidated net revenue of between $160 million and $170 million.

Positive Outlook

  • Anticipated volume of new Executive Search confirmations
  • Heidrick Consulting assignments
  • Current backlog
  • Consultant productivity
  • Consultant retention

Challenges Ahead

  • Continued fluidity of the COVID-19 pandemic that will continue to impact quarterly results.
  • Based on the average currency rates in December 2020
  • Seasonality of its business
  • leadership changes
  • unfavorable tax law changes and tax authority rulings