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Heidrick & Struggles(HSII) - 2024 Q4 - Annual Results
HSIIHeidrick & Struggles(HSII)2025-03-03 21:13

Revenue Performance - Q4 2024 net revenue was 276.2million,a9276.2 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 1,026.9millionin2023[10]−TotalrevenueforQ42024was1,026.9 million in 2023[10] - Total revenue for Q4 2024 was 280,886,000, representing a 9.1% increase from 257,390,000inQ42023[33]−RevenuebeforereimbursementsforthethreemonthsendedDecember31,2024,was257,390,000 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 253,162thousandinthesameperiodof2023[49]−TotalrevenuebeforereimbursementsforthetwelvemonthsendedDecember31,2024,was253,162 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 1,026,864,000in2023,representingagrowthofapproximately71,026,864,000 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 184.0millioninQ42023[14]−On−DemandTalentsegmentrevenueincreasedto184.0 million in Q4 2023[14] - On-Demand Talent segment revenue increased to 42.3 million in Q4 2024, up 3.0% from 41.1millioninQ42023[17]−HeidrickConsultingsegmentrevenuewas41.1 million in Q4 2023[17] - Heidrick Consulting segment revenue was 31.3 million in Q4 2024, an 11.5% increase from 28.1millioninQ42023[19]−TheExecutiveSearchsegmentgeneratedrevenueof28.1 million in Q4 2023[19] - The Executive Search segment generated revenue of 818,358,000 in 2024, up from 780,045,000in2023,markinganincreaseofabout4.9780,045,000 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 152,506,000in2023,representingagrowthofapproximately10.4152,506,000 in 2023, representing a growth of approximately 10.4%[53] - Heidrick Consulting's revenue decreased to 111,890,000 in 2024 from 94,313,000in2023,reflectinganincreaseofabout18.794,313,000 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 22.9million,a54.222.9 million, a 54.2% increase compared to 14.9 million in Q4 2023[8] - Adjusted diluted earnings per share for 2024 was 3.12,up7.23.12, up 7.2% from 2.91 in 2023[11] - Adjusted EBITDA for the twelve months ended December 31, 2024, was 111,238,000,comparedto111,238,000, 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 14,976,000comparedtoaprofitof14,976,000 compared to a profit of 14,855,000 in Q4 2023, indicating a significant decline[33] - Operating expenses increased by 29.3% to 304,531,000inQ42024,upfrom304,531,000 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,downfrom8,728, down from 54,410 in 2023, reflecting a significant decline[41] - Operating income for the twelve months ended December 31, 2024, was 7,528,adecreaseof90.07,528, a decrease of 90.0% compared to 75,357 in 2023[37] - Total operating expenses increased by 14.7% to 1,108,148in2024,upfrom1,108,148 in 2024, up from 965,825 in 2023[37] Impairment and Charges - The company reported an impairment charge of 43,254,000inQ42024,whichwasnotpresentinQ42023[33]−Thecompanyrecordedgoodwillimpairmentchargesof43,254,000 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 59,478thousand,significantlyhigherthan59,478 thousand, significantly higher than 7,246 thousand in 2023[49] - The company reported a restructuring charge of 6.9millionforthetwelvemonthsendedDecember31,2024[41]CashandAssets−Cashandcashequivalentsincreasedto6.9 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 412,618in2023,reflectingagrowthof24.9412,618 in 2023, reflecting a growth of 24.9%[43] - Total assets as of December 31, 2024, were 1,194,188, an increase from 1,141,591in2023[43]−Cash,cashequivalents,andrestrictedcashattheendoftheperiodonDecember31,2024,totaled1,141,591 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 412,618thousandattheendof2023[47]FutureOutlook−ThecompanyexpectsQ12025revenuetobebetween412,618 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]