Huron Consulting(US:HURN)2025-04-30 01:48Financial Data and Key Metrics Changes - Revenues before reimbursable expenses (RBR) grew 11% year-over-year to $395.7 million in Q1 2025 from $356 million in Q1 2024 [18] - Net income increased 36.3% to $24.5 million, or $1.33 per diluted share, compared to $18 million, or $0.95 per diluted share in the prior year [18] - Adjusted EBITDA was $41.5 million, representing 10.5% of RBR, compared to $33.8 million, or 9.5% of RBR in Q1 2024 [19] Business Line Data and Key Metrics Changes - Healthcare segment RBR grew 10% year-over-year to $198.5 million, driven by strong demand for performance improvement financial advisory offerings [5][20] - Education segment RBR increased 10% to $122.7 million, supported by demand for strategy and operations advancement offerings [21] - Commercial segment RBR surged 17% to $74.5 million, primarily due to the acquisition of Axia and strong demand for digital offerings [12][23] Market Data and Key Metrics Changes - The healthcare segment accounted for 50% of total company RBR in Q1 2025, while the education segment contributed 31% and the commercial segment 19% [20][21][24] - Days Sales Outstanding (DSO) improved to 79 days in Q1 2025 from 91 days in Q1 2024, reflecting better collections on larger projects [26] Company Strategy and Development Direction - The company reaffirmed its annual guidance, indicating confidence in its growth strategy and ability to navigate a complex regulatory landscape [5][14] - The focus remains on expanding digital capabilities and enhancing advisory services through both organic growth and acquisitions [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance despite a dynamic external environment, highlighting strong client relationships and industry expertise [4][5] - The healthcare sector is expected to face ongoing financial pressures, prompting clients to seek performance improvement solutions [6][7] Other Important Information - The company divested its student education business at the end of 2024, which is reflected in the current financial results [16] - Cash flow used in operations was $106.8 million in Q1 2025, down from $130.7 million in Q1 2024, primarily due to annual incentive payments [26] Q&A Session Summary Question: Outlook for the commercial segment and any changes in growth expectations - Management noted no changes to segment-level guidance, with record sales conversion driven by the digital business [30][34] Question: Headcount growth and its alignment with revenue - Management expects headcount growth to align with revenue, particularly in the healthcare business, where demand remains strong [36][37] Question: New business and billings trends in education and healthcare - Management reported no notable changes in new business or billings, with strong sales conversion in Q1 [40][42] Question: Impact of policy changes on private universities - Management confirmed ongoing relationships with private universities, with no dramatic effects from recent policy changes [44] Question: Trends in performance improvement project assessments - Assessment activity remains robust, driven by clients facing financial strain and escalating costs [46][48]