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Dec 31, 2023

Heidrick & Struggles Q4 2023 Earnings Report

Reported solid growth in revenue and adjusted EBITDA, driven by diversified solutions.

Key Takeaways

Heidrick & Struggles reported a 7% increase in net revenue to $253.2 million and a 38% increase in adjusted EBITDA to $35.8 million for the fourth quarter of 2023. The adjusted EBITDA margin improved to 14.1%.

Net revenue increased by 7% year over year, reaching $253.2 million.

Adjusted EBITDA increased by 38% year over year, amounting to $35.8 million.

Adjusted EBITDA margin improved by 310 bps year over year, reaching 14.1%.

Diversified Solutions grew 44% during 2023 and represented 27% of fourth quarter revenue.

Total Revenue
$253M
Previous year: $236M
+7.4%
EPS
$0.72
Previous year: $0.78
-7.7%
Executive Search
$1.8M
Previous year: $2M
-10.0%
Avg. Revenue per Search
$138K
Previous year: $150K
-8.0%
Adjusted EBITDA
$35.8M
Previous year: $30.9M
+15.8%
Gross Profit
$71.9M
Previous year: $64.4M
+11.7%
Cash and Equivalents
$413M
Previous year: $355M
+16.1%
Free Cash Flow
$150M
Previous year: $157M
-4.7%
Total Assets
$1.14B
Previous year: $1.18B
-2.9%

Heidrick & Struggles

Heidrick & Struggles

Heidrick & Struggles Revenue by Segment

Heidrick & Struggles Revenue by Geographic Location

Forward Guidance

The Company expects 2024 first quarter consolidated net revenue of between $245 million and $265 million.

Challenges Ahead

  • 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