Summary of Huron Consulting Group Conference Call Company Overview - Huron Consulting Group (Ticker: HURN) is a consultancy firm focused on strategy, operations, digital transformation, and financial advisory services [2][3] - The company serves clients primarily in healthcare, education, and commercial industries, with over 50% of revenue from healthcare and approximately 32% from education in 2024 [4][5] Financial Performance - In 2024, Huron achieved a 9% year-over-year revenue growth and a 120 basis points margin improvement, leading to a 32% growth in adjusted EPS [5][6] - The healthcare and education segments experienced strong double-digit growth, while the commercial segment faced challenges due to economic uncertainties [6][7] - The company anticipates the commercial segment to be the fastest-growing area in 2025, with a 7% overall digital growth reported [6][8] Industry Dynamics - Huron is witnessing a record pipeline in healthcare and education despite regulatory pressures and financial strains in these sectors [7][8] - The company positions itself as a trusted advisor, helping clients navigate financial pressures and improve performance [8][9] - The healthcare and education industries are undergoing significant regulatory changes, creating ongoing demand for consultancy services [20][21] Strategic Focus - Huron's strategy emphasizes leading positions in U.S. healthcare and higher education, with a focus on performance improvement and digital transformation [9][10] - The company aims to expand its capabilities in commercial industries such as financial services, industrials, and energy [12][14] - Huron plans to achieve low double-digit annual growth over the next five years, with expectations of organic growth in the mid to upper single-digit range [17][18] Margin and Cash Flow Management - Huron targets a margin increase to the 15% to 17% range over the next five years, with a current margin guidance of 14% to 14.5% [18][19] - The company has a strong free cash flow conversion rate, typically converting 75-80% of adjusted EBITDA to free cash flow [17][29] - Capital allocation strategy includes share buybacks and strategic tuck-in acquisitions, with a balanced approach expected over the next five years [29][30] Recent Acquisitions - Huron has made several acquisitions, including Eclipse Insights, Trilogy, and Wilson Perumal & Company, enhancing its capabilities in healthcare and financial services [32][34] - The acquisitions are aimed at strengthening Huron's performance improvement offerings and expanding its advisory services [33][34] Market Outlook - Huron is optimistic about its growth trajectory, citing increased demand for consultancy services in its core industries [41] - The company believes that the opportunities in healthcare and education are broad and will continue to grow, driven by ongoing market dynamics [21][30] Conclusion - Huron Consulting Group is well-positioned to capitalize on growth opportunities in its core industries, with a strong focus on performance improvement and digital transformation, supported by a robust financial strategy and recent acquisitions [30][41]