Heidrick & Struggles(US:HSII)2025-03-03 21:13Revenue 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]