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Dec 31, 2022
Heidrick & Struggles Q4 2022 Earnings Report
Reported record net revenue and progress in diversifying business.
Key Takeaways
Heidrick & Struggles reported Q4 2022 results with a net revenue of $235.7 million. Operating income was $19.8 million, and net income reached $16.0 million, with diluted earnings per share at $0.78. The company's focus on diversifying its business and investing in digital innovation contributed to these results.
Net revenue was $235.7 million; on a constant currency basis net revenue was $243.9 million.
Operating income and Adjusted EBITDA were $19.8 million and $30.9 million, respectively; operating margin was 8.4% and Adjusted EBITDA margin was 13.1%.
Net income was $16.0 million and diluted earnings per share was $0.78.
Acquired Atreus, a leading German on-demand talent business, on February 1, 2023; expands diversification strategy embarked upon in 2021 with the acquisition of BTG in the U.S.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company expects 2023 first quarter consolidated net revenue of between $235 million and $255 million, while acknowledging that continued fluidity in external factors such as the foreign exchange and interest rate environments, foreign conflicts, inflation and macroeconomic constraints on pricing actions may impact quarterly results.
Positive Outlook
- Expects 2023 first quarter consolidated net revenue of between $235 million and $255 million
- Outlook is based on the average currency rates in December 2022
- Reflects management's assumptions for the anticipated volume of new Executive Search confirmations
- Reflects management's assumptions for On-Demand Talent projects, and Heidrick Consulting assignments
- Reflects management's assumptions for consultant productivity and consultant retention
Challenges Ahead
- Acknowledges continued fluidity in external factors such as the foreign exchange and interest rate environments
- Acknowledges foreign conflicts
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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