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Dec 31, 2024

Heidrick & Struggles Q4 2024 Earnings Report

Heidrick & Struggles reported strong Q4 2024 financial results with 9% revenue growth.

Key Takeaways

Heidrick & Struggles delivered a solid fourth quarter, reporting net revenue of $276.2 million, reflecting a 9% year-over-year growth. Adjusted net income increased by 54% to $22.9 million, with adjusted diluted EPS of $1.08. The company saw growth across all business segments, with Executive Search leading at a 10.1% increase. Adjusted EBITDA was $26.1 million, with a margin of 9.5%.

Q4 revenue increased by 9% year-over-year to $276.2 million.

Adjusted net income grew 54% to $22.9 million, with adjusted EPS of $1.08.

Executive Search revenue rose 10.1% to $202.5 million.

Adjusted EBITDA margin was 9.5%, reflecting solid profitability.

Total Revenue
$276M
Previous year: $253M
+9.1%
EPS
$1.08
Previous year: $0.72
+50.0%
Executive Search
$2M
Previous year: $1.8M
+11.1%
Avg. Revenue per Search
$151K
Previous year: $138K
+9.4%
Adjusted EBITDA
$26.1M
Previous year: $35.8M
-27.0%
Gross Profit
$65.1M
Previous year: $71.9M
-9.5%
Cash and Equivalents
$516M
Previous year: $413M
+25.0%
Free Cash Flow
$174M
Previous year: $150M
+15.7%
Total Assets
$1.19B
Previous year: $1.14B
+4.6%

Heidrick & Struggles

Heidrick & Struggles

Heidrick & Struggles Revenue by Segment

Heidrick & Struggles Revenue by Geographic Location

Forward Guidance

Heidrick & Struggles expects Q1 2025 revenue to range between $263 million and $273 million, with continued growth in Executive Search and Consulting services.

Positive Outlook

  • Projected Q1 2025 revenue between $263 million and $273 million.
  • Continued demand for leadership advisory and talent solutions.
  • Focus on consultant retention and productivity improvements.
  • Enhancing AI-driven consulting capabilities for long-term growth.
  • Expected strong cash flow generation and dividend continuity.

Challenges Ahead

  • Macroeconomic volatility may impact client hiring decisions.
  • Geopolitical risks could influence demand in international markets.
  • Competitive pressures in the talent consulting industry remain high.
  • Potential currency fluctuations may impact revenue performance.
  • Consulting segment faces margin pressure due to increased investments.

Revenue & Expenses

Visualization of income flow from segment revenue to net income