CHICAGO, April 21, 2025 /PRNewswire/ -- Heidrick & Struggles International, Inc. (Nasdaq: HSII) ("Heidrick & Struggles", "Heidrick" or the "Company"), a premier provider of global leadership advisory and on-demand talent solutions, today announced it will host its quarterly conference call to discuss 2025 first quarter financial results on Monday, May 5, 2025, at 5:00pm ET.The conference call and accompanying slides will be publicly available via live webcast on the investor relations section of the Heidric ...

CHICAGO, March 13, 2025 /PRNewswire/ -- Heidrick & Struggles International, Inc. (Nasdaq: HSII) ("Heidrick & Struggles", "Heidrick" or the "Company"), a premier provider of global leadership advisory and on-demand talent solutions, today announced that Chief Executive Officer Tom Monahan and Chief Financial Officer Nirupam Sinha will participate in a fireside chat at the Sidoti Virtual Investor Conference on Wednesday, March 19th at 8:30 AM Eastern Time. The presentation will be publicly available via live ...

Heidrick & Struggles International, Inc. (NASDAQ: HSII ) , which got its start sometime around the middle of the 20th century, is in the business of executive search and leadership consulting . In other words, it helps companiesThe mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing on small- to mid-cap companies, offering the Seeking Alpha ...

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $276.2 million, marking a 9.1% increase compared to Q4 2023 [33] - Full year 2024 revenue was $1.1 billion, a 7% increase versus 2023 [34] - Adjusted EBITDA for Q4 was $26.1 million with a margin of 9.5% [34] - Adjusted net income for Q4 increased 54.2% to $22.9 million, with adjusted diluted EPS of $1.08 [46] Business Line Data and Key Metrics Changes - Executive Search revenue grew 10% to $225 million, with regional increases of 11.1% in Americas, 8.1% in Europe, and 7.6% in APAC [39] - On-Demand Talent revenue increased 3% to $42.3 million, despite a projected 10% drop in the broader temporary staffing market [42] - Heidrick Consulting saw a 11.5% year-over-year organic revenue increase to $31.3 million [44] Market Data and Key Metrics Changes - Strong performance noted across North America, with Europe showing more caution [61] - Consumer confidence in the consumer sector was less robust, but other sectors remained strong [62] Company Strategy and Development Direction - The company is focused on three strategic priorities: being a trusted leadership partner, helping clients lead transformation, and innovating for continuous client engagement [16][19][26] - The company aims to build differentiated, deep, and durable client relationships to create unrivaled value [29] Management's Comments on Operating Environment and Future Outlook - Management noted that volatility and change create opportunities for growth, with clients increasingly questioning their leadership effectiveness [55][56] - The company expects first quarter revenue to be between $263 million and $273 million, indicating a solid start for 2025 [50] Other Important Information - A non-cash goodwill impairment charge of $43.3 million was reported in Q4 related to the On-Demand Talent business [45] - The company ended Q4 with a strong cash position of $563 million, up $85 million from December 2023 [48] Q&A Session Summary Question: What are you hearing from customers about confidence in launching new products? - Management indicated that volatility creates opportunities, and clients are focused on ensuring they have the right leaders in place [55][56] Question: How are you managing internal sales generating headcount? - The company plans to grow headcount in line with projected revenue growth, leveraging technology and senior productivity [58] Question: Are there geographic or industry verticals showing strength or weakness? - Strong momentum was noted across North America, with some caution in Europe and less robust consumer confidence in the consumer sector [61][62] Question: What are the drivers for anticipated adjusted EBITDA margin expansion in 2025? - Expected margin expansion will come from non-search businesses as the company aligns offerings better with client needs [64][68] Question: Can you elaborate on the variable compensation impact in Heidrick Consulting? - Management noted that Q4 saw a catch-up in variable compensation, but they do not foresee material changes going forward [70] Question: Have you factored in any meaningful impact from currency into the first quarter 2025 revenue outlook? - No significant currency impact was factored into the 2025 outlook [72] Question: What is the current level of C-suite turnover? - Management indicated that C-suite turnover has been consistent, with no significant spikes or dips [76] Question: How do you view potential M&A opportunities? - Management stated that while M&A is always a factor, they are not counting on it to change their guidance range for the quarter [84]

Core Viewpoint - Heidrick & Struggles (HSII) reported strong quarterly earnings, significantly exceeding expectations, indicating robust performance in the staffing industry [1][2]. Financial Performance - The company achieved earnings of $1.08 per share, surpassing the Zacks Consensus Estimate of $0.63 per share, and up from $0.72 per share a year ago, representing a 71.43% earnings surprise [1]. - Revenues for the quarter reached $276.19 million, exceeding the Zacks Consensus Estimate by 4.88% and up from $253.16 million year-over-year [2]. Market Performance - Heidrick & Struggles shares have declined approximately 7.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.2% [3]. - The company's current Zacks Rank is 3 (Hold), indicating expected performance in line with the market in the near future [6]. Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.68, with projected revenues of $264.38 million, and for the current fiscal year, the EPS estimate is $2.90 on revenues of $1.12 billion [7]. - The staffing industry, to which Heidrick & Struggles belongs, is currently ranked in the bottom 22% of Zacks industries, which may impact stock performance [8].

Revenue Performance - Consolidated net revenue increased by $71.7 million, or 7.0%, to $1.1 billion in 2024 from $1.0 billion in 2023[144] - Executive Search net revenue was $818.4 million in 2024, an increase of $38.3 million, or 4.9%, compared to 2023[144] - On-Demand Talent net revenue was $168.3 million in 2024, an increase of $15.8 million, or 10.4%, compared to 2023[144] - Heidrick Consulting net revenue was $111.9 million in 2024, an increase of $17.6 million, or 18.6%, compared to 2023[144] - Total revenue increased by $74.5 million, or 7.2%, to $1.1 billion in 2024 from $1.0 billion in 2023[154] - Net revenue before reimbursements rose by $71.7 million, or 7.0%, to $1.1 billion in 2024, with Executive Search net revenue at $818.4 million, up 4.9%[155] Profitability Metrics - Adjusted EBITDA as a percentage of revenue was 10.1% in 2024, compared to 12.2% in 2023[146] - Adjusted EBITDA decreased to $111.2 million in 2024 from $125.6 million in 2023, with an adjusted EBITDA margin of 10.1%[151][154] - Consolidated Adjusted EBITDA was $111.2 million in 2024, a decrease of $14.4 million, or 11.4%, compared to $125.6 million in 2023[164] Expenses - Salaries and benefits expense as a percentage of net revenue was 65.1% in 2024, compared to 63.9% in 2023[146] - Salaries and benefits expense increased by $59.6 million, or 9.1%, to $715.6 million in 2024, representing 65.1% of net revenue[157][159] - General and administrative expenses rose by $10.5 million, or 6.7%, to $167.0 million in 2024, maintaining 15.2% of net revenue[160][161] - Cost of services increased by $9.9 million, or 9.1%, to $119.0 million in 2024, primarily due to higher project volumes[161] - Research and development expenses increased by $0.4 million, or 1.6%, to $23.1 million in 2024, focusing on technology-enabled products and services[162] Consultant Metrics - The number of Executive Search consultants increased to 418 in 2024 from 414 in 2023[145] - The number of Executive Search consultants increased to 418 in 2024 from 414 in 2023, with productivity rising to $2.0 million per consultant[156] - The average revenue per executive search increased to $146,000 in 2024 compared to $140,000 in the prior year[145] Regional Performance - The Americas segment reported net revenue of $556.9 million in 2024, an increase of 6.5% from $523.0 million in 2023, driven by a 7.1% increase in executive search confirmations[168] - Europe segment net revenue decreased by 0.8% to $165.0 million in 2024, attributed to a 9.7% decrease in executive search confirmations[172] - Asia Pacific segment reported net revenue of $96.4 million in 2024, an increase of 6.3% compared to $90.7 million in 2023, despite a 2.5% decrease in executive search confirmations[177] Cash and Financing - Combined cash, cash equivalents, and marketable securities increased to $563.5 million, up $85.4 million from $478.2 million at December 31, 2023[147] - For the year ended December 31, 2024, cash provided by operating activities was $150.4 million, reflecting net income net of non-cash charges of $80.1 million and accrued expenses of $47.0 million[200] - Cash used in investing activities for the year ended December 31, 2024, was $14.6 million, primarily due to capital expenditures of $26.3 million and purchases of available for sale investments of $163.6 million[202] - Cash used in financing activities for the year ended December 31, 2024, was $16.7 million, mainly due to cash dividend payments of $12.9 million[205] - The Company entered into an Amended Credit Agreement, increasing the committed unsecured revolving credit facility to $200 million from $175 million, with a maturity date of July 13, 2026[196] Impairment and Goodwill - The company recognized an aggregate goodwill impairment charge of $59.5 million in 2024, indicating potential volatility in future results due to market conditions and operating performance[224] - The accounting estimate related to goodwill impairment is critical, as assumptions are highly susceptible to changes in operating results and cash flows[225] - Changes in the business climate, market capitalization, and recent operating performance are monitored for potential triggering events that could lead to impairment charges[224] Fair Value and Contingent Considerations - The fair value of contingent consideration obligations is assessed based on expected future payments, influenced by revenue forecasts, operating expense forecasts, discount rates, and volatility[226] - The company uses a variation of the income approach, known as the real options method, to determine the fair value of contingent consideration[226] - The fair value of reporting units is impacted by overall market capitalization and stock price volatility[224] - The company updates its assumptions for fair value estimates annually to reflect information concerning its reportable segments[224]

Revenue Performance - Q4 2024 net revenue was $276.2 million, a 9% increase year over year, exceeding the high end of the outlook[5] - Full year net revenue for 2024 reached $1,098.6 million, up 7% from $1,026.9 million in 2023[10] - Total revenue for Q4 2024 was $280,886,000, representing a 9.1% increase from $257,390,000 in Q4 2023[33] - Revenue before reimbursements for the three months ended December 31, 2024, was $276,191 thousand, an increase of 9.5% from $253,162 thousand in the same period of 2023[49] - Total revenue before reimbursements for the twelve months ended December 31, 2024, was $1,098,573,000, an increase from $1,026,864,000 in 2023, representing a growth of approximately 7%[53] Segment Performance - Executive Search segment revenue was $202.5 million in Q4 2024, a 10.1% increase from $184.0 million in Q4 2023[14] - On-Demand Talent segment revenue increased to $42.3 million in Q4 2024, up 3.0% from $41.1 million in Q4 2023[17] - Heidrick Consulting segment revenue was $31.3 million in Q4 2024, an 11.5% increase from $28.1 million in Q4 2023[19] - The Executive Search segment generated revenue of $818,358,000 in 2024, up from $780,045,000 in 2023, marking an increase of about 4.9%[53] - The On-Demand Talent segment reported revenue of $168,325,000 in 2024, compared to $152,506,000 in 2023, representing a growth of approximately 10.4%[53] - Heidrick Consulting's revenue decreased to $111,890,000 in 2024 from $94,313,000 in 2023, reflecting an increase of about 18.7%[53] Profitability Metrics - Adjusted EBITDA for Q4 2024 was $26.1 million, with an adjusted EBITDA margin of 9.5%, down from 14.1% in Q4 2023[9] - Adjusted net income for Q4 2024 was $22.9 million, a 54.2% increase compared to $14.9 million in Q4 2023[8] - Adjusted diluted earnings per share for 2024 was $3.12, up 7.2% from $2.91 in 2023[11] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $111,238,000, compared to $125,617,000 in 2023, indicating a decrease of about 11.5%[53] - The adjusted EBITDA margin for 2024 was 10.1%, down from 12.2% in 2023, reflecting a decline of 1.1 percentage points[53] Income and Expenses - Net income for Q4 2024 was a loss of $14,976,000 compared to a profit of $14,855,000 in Q4 2023, indicating a significant decline[33] - Operating expenses increased by 29.3% to $304,531,000 in Q4 2024, up from $235,526,000 in Q4 2023[33] - Net income for the twelve months ended December 31, 2024, decreased to $8,728, down from $54,410 in 2023, reflecting a significant decline[41] - Operating income for the twelve months ended December 31, 2024, was $7,528, a decrease of 90.0% compared to $75,357 in 2023[37] - Total operating expenses increased by 14.7% to $1,108,148 in 2024, up from $965,825 in 2023[37] Impairment and Charges - The company reported an impairment charge of $43,254,000 in Q4 2024, which was not present in Q4 2023[33] - The company recorded goodwill impairment charges of $58.0 million in the On-Demand Talent segment for the twelve months ended December 31, 2024[41] - Total impairment charges for the twelve months ended December 31, 2024, were $59,478 thousand, significantly higher than $7,246 thousand in 2023[49] - The company reported a restructuring charge of $6.9 million for the twelve months ended December 31, 2024[41] Cash and Assets - Cash and cash equivalents increased to $515,627 as of December 31, 2024, from $412,618 in 2023, reflecting a growth of 24.9%[43] - Total assets as of December 31, 2024, were $1,194,188, an increase from $1,141,591 in 2023[43] - Cash, cash equivalents, and restricted cash at the end of the period on December 31, 2024, totaled $515,813 thousand, up from $412,618 thousand at the end of 2023[47] Future Outlook - The company expects Q1 2025 revenue to be between $263 million and $273 million[21] - The company anticipates guidance for Q1 2025 based on current expectations and market conditions[29]

Quarterly Revenue Exceeds High End of OutlookAll Business Segments Contribute to Top Line GrowthFinancial Highlights: Q4 2024 net revenue of $276.2 million increased 9% year over year and full year net revenue of $1,098.6 million increased 7% year over year Adjusted EBITDA in Q4 2024 was $26.1 million with adjusted EBITDA margin of 9.5% and full year adjusted EBITDA was $111.2 million with adjusted EBITDA margin of 10.1% Q4 2024 adjusted net income was $22.9 million with adjusted diluted earnings per share ...

CHICAGO, Feb. 10, 2025 /PRNewswire/ -- Heidrick & Struggles International, Inc. (Nasdaq: HSII) ("Heidrick & Struggles", "Heidrick" or the "Company"), a premier provider of global leadership advisory and on-demand talent solutions, today announced it will host its quarterly conference call to discuss fourth quarter and full year 2024 financial results on Monday, March 3, 2025, at 5:00pm ET.The conference call and accompanying slides will be publicly available via live webcast on the investor relations sectio ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.In addition to t ...