Huron Consulting Group Inc. · NASDAQ:HURN

Huron Consulting — Investor Presentation (April 2024)

36 slides from Huron Consulting's investor presentation, Apr 30, 2024

  1. Slide 1: Huron Consulting Group Inc. Investor Presentation

    H UR O N I 1 © 2023 Huron Consulting Group Inc. and affiliates.huronco sulti ggroup.comA P R I L 2 0 2 4 Huron Consulting Group Inc. Investor Presentation

  2. Slide 2: Forward-Looking Statements

    H UR O N I 2 © 2023 Huron Consulting Group Inc. and affiliates. Forward-Looking Statements Statements in this presentation that are not historical in nature, including those concerning the company’s current expectations about its future results, are “forward-looking” statements as defined in Section

  3. Slide 3: Use of non-GAAP financial measures

    H UR O N I 3 © 2023 Huron Consulting Group Inc. and affiliates. Use of non-GAAP financial measures In evaluating the company’s financial performance and outlook, management uses EBITDA, adjusted EBITDA, adjusted EBITDA as a percentage of revenues, adjusted net income, adjusted diluted earnings per s

  4. Slide 4: Our Business

    H UR O N I 4 © 2023 Huron Consulting Group Inc. and affiliates. Our Business 2 H UR O N I 4

  5. Slide 5: Huron is a global professional services firm

    H UR O N I 5 © 2023 Huron Consulting Group Inc. and affiliates. Huron is a global professional services firm that partners with clients to develop growth strategies, optimize operations and accelerate digital transformation using an enterprise portfolio of technology, data and analytics solutions to

  6. Slide 6: Financial Results Q1 2024

    H UR O N I 6 © 2023 Huron Consulting Group Inc. and affiliates. Financial Results Q1 2024 Q1 2023 Q1 2024 vs. Q1 2023 Total Revenue $356M $318M 12% growth Net Income $18M $13M 34% growth Adj. EBITDA margins(1) 9.5% 9.3% 20 bps increase Diluted EPS $0.95 $0.68 40% growth Adj. Diluted EPS(1) $1.23 $0.

  7. Slide 7: Our strategy for driving increased shareholder value

    H UR O N I 7 © 2023 Huron Consulting Group Inc. and affiliates. Our strategy for driving increased shareholder value Medium Term Financial Targets:​ ------------------------------- • Low double-digit annual revenue growth • Mid-teen % adjusted EBITDA margins by 2025 • High teen % annual EPS growth •

  8. Slide 8: Capabilities Mix 2023 Revenue

    H UR O N I 8 © 2023 Huron Consulting Group Inc. and affiliates. Digital 43% Consulting and Managed Services 57% Capabilities Mix 2023 Revenue Compelling mix of industry-differentiated offerings Digital Helping organizations: (i) design and execute technology, data and analytic strategies that accele

  9. Slide 9: Our global enterprise platform

    H UR O N I 9 © 2023 Huron Consulting Group Inc. and affiliates. Our global enterprise platform is designed to provide a client-centric approach and bring the full breadth of Huron’s offerings to our industries of focus Healthcare Industry Education Industry Financial Services Industry Energy & Utili

  10. Slide 10: Five key corporate social responsibility commitments

    © 2023 Huron Consulting Group Inc. and affiliates. H UR O N I 1 0 Unlocking value for all stakeholders through our five key corporate social responsibility commitments We are committed to investing in our people and fostering a diverse and inclusive culture We serve clients in industries that have a

  11. Slide 11: Our Market Opportunity and Growth Initiatives

    H UR O N I 1 1 © 2023 Huron Consulting Group Inc. and affiliates. Our Market Opportunity and Growth Initiatives

  12. Slide 12: Large, growing professional services industry

    © 2024 Huron Consulting Group Inc. and affiliates. Operating in a large, growing professional services industry with core end markets facing significant disruption or regulatory change Education (2) $35B Healthcare (1) $53B $32B $95B $36B Title Total Addressable Market By Capability Consulting Manag

  13. Slide 13: Healthcare industry overview

    © 2023 Huron Consulting Group Inc. and affiliates. H UR O N I 1 3 $674 million Acute Care Providers 89% Non-Acute Care Providers 11% Healthcare Segment Revenue 2023 Managed Services 10% Digital 30% Performance Improvement 46% Financial Advisory 5% People Solutions 4% Consulting 60% Innosight 2% Reve

  14. Slide 14: Driving future growth in Healthcare

    H UR O N I 1 4 © 2023 Huron Consulting Group Inc. and affiliates. Driving future growth in Healthcare STRONG MOMENTUM TO DATE • Grew total Healthcare segment revenues 26% in 2023 as compared to 2022 • Grew Healthcare industry consulting revenues 36% in 2023 as compared to 2022 • Grew Healthcare indu

  15. Slide 15: Education industry overview

    © 2023 Huron Consulting Group Inc. and affiliates. H UR O N I 1 5 Providing Proven and Innovative Solutions to Address Key Industry Challenges • Disruption in the workforce and the war for talent is increasing • Enrollment challenges increasing despite rise in applications • Conventional research fu

  16. Slide 16: Driving future growth in Education

    H UR O N I 1 6 © 2023 Huron Consulting Group Inc. and affiliates. Driving future growth in Education STRONG MOMENTUM TO DATE • Grew total Education segment revenues 19% in 2023 as compared to 2022 • Grew Education industry Digital revenues 28% in 2023 as compared to 2022 • Grew research managed serv

  17. Slide 17: Commercial industry overview

    H UR O N I 1 7 © 2023 Huron Consulting Group Inc. and affiliates. Commercial industry overview Personas of Focus: • CEO • CFO • Chief Strategy Officer • CHRO • COO • Organizational advisors, including lenders and law firms In the Commercial segment, our financial advisory offerings grew 68% in 2023

  18. Slide 18: Driving future growth in Commercial

    H UR O N I 1 8 © 2023 Huron Consulting Group Inc. and affiliates. Driving future growth in Commercial STRONG MOMENTUM TO DATE • Grew total Commercial segment revenues 9% in 2023 as compared to 2022 • Grew Commercial industry Consulting revenues 13% in 2023 as compared to 2022 • Grew Commercial indus

  19. Slide 19: Our Proven Results

    H UR O N I 1 9 © 2023 Huron Consulting Group Inc. and affiliates. Our Proven Results 2 H UR O N I 1 9

  20. Slide 20: Delivering proven results for our clients

    H UR O N I 2 0 © 2023 Huron Consulting Group Inc. and affiliates. Delivering proven results for our clients Illustrative case studies Mon Health System, in collaboration with Huron, employed disease prediction modeling to pinpoint individuals at high risk for lung cancer within their community, wher

  21. Slide 21: Our Digital Capability

    H UR O N I 2 1 © 2023 Huron Consulting Group Inc. and affiliates. Our Digital Capability 2 H UR O N I 2 1

  22. Slide 22: Grew a $580M Digital platform since 2010

    H UR O N I 2 2 © 2023 Huron Consulting Group Inc. and affiliates. Grew a $580M Digital platform since 2010 through organic investments and $200M+ in deployed capital 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 • Acquired Blue Stone International (Oracle EPM) • 11% of total company revenue gene

  23. Slide 23: Digital capability integrated with industry focus

    H UR O N I 2 3 © 2023 Huron Consulting Group Inc. and affiliates. Education 37% Healthcare 34% Commercial 29% Digital Capability Revenue 2023 Deeply integrating our industry focus with our Digital capabilities to strengthen our competitive advantage and accelerate growth $580 million Providing Prove

  24. Slide 24: Our Financial Outlook

    H UR O N I 2 4 © 2023 Huron Consulting Group Inc. and affiliates. Our Financial Outlook 2 H UR O N I 2 4

  25. Slide 25: Strong 2023 performance

    H UR O N I 2 5 © 2023 Huron Consulting Group Inc. and affiliates. Strong 2023 performance demonstrates commitment to consistent revenue growth and margin expansion 26% Healthcare segment revenue growth year-over-year 19% Education segment revenue growth year-over-year 17% Digital capability revenue

  26. Slide 26: Primary revenue drivers for consistent revenue growth

    H UR O N I 2 6 © 2023 Huron Consulting Group Inc. and affiliates. Building on our primary revenue drivers to achieve consistent revenue growth $844 $906 $1,132 2020 2021 2022 2023 2024 Guidance Revenue ($ in millions) Low double-digit % annual growth Low double-digit percentage growth target expecte

  27. Slide 27: Foundation of recurring revenue to drive growth

    H UR O N I 2 7 © 2023 Huron Consulting Group Inc. and affiliates. Building on our primary revenue drivers, including our foundation of recurring revenue, to drive consistent growth Other recurring revenue models generated approx. 2% of total company revenues in 2023 Multi-year strategic and digital

  28. Slide 28: Adjusted EBITDA margin trajectory to mid-teen % in 2025

    H UR O N I 2 8 © 2023 Huron Consulting Group Inc. and affiliates. Adjusted EBITDA margin % is on a trajectory to achieve mid-teen % in 2025 10.3% 10.8% 11.6% 12.3% 20 20 20 21 20 22 20 23 20 24 Gu idance Uti li zati on Improvem ent Prici ng E nhance men t SG& A Scal in g Gl oba l De livery Mix Bu si

  29. Slide 29: Rapidly growing global delivery platform

    © 2022 Huron Consulting Group Inc. and affiliates. H UR O N I 2 9 Rapidly growing global delivery platform enables Huron to accelerate growth and expand margins 300+ 410+ 550+ 840+ 1570+ 2075+ 2018 2019 2020 2021 2022 2023 India Headcount Growth Digital 52% Managed Services 31% Corporate 17% India H

  30. Slide 30: Healthy balance sheet and strong cash flows

    H UR O N I 30 © 2023 Huron Consulting Group Inc. and affiliates. Healthy balance sheet and strong cash flows create flexibility to return capital to shareholders and drive future growth $120 $21 $61 $100 $115 - $145 9.3% 1.9% 4.1% 4.9% 0% 5% 10% 15% 20% $- $40 $80 $120 2020 2021 2022 2023 2024 Guida

  31. Slide 31: Disciplined approach to M&A

    H UR O N I 31 © 2023 Huron Consulting Group Inc. and affiliates. Disciplined approach to M&A will continue to provide opportunities to accelerate growth Criteria used to evaluate acquisition opportunities 1. Aligns with our business strategy • Expands our capabilities into adjacent offerings • Stren

  32. Slide 32: Disciplined and balanced capital allocation framework

    H UR O N I 32 © 2023 Huron Consulting Group Inc. and affiliates. Disciplined and balanced capital allocation framework underscores commitment to growth and returning capital to shareholders Operating in a large, growing professional services industry with core end markets facing significant disrupti

  33. Slide 33: Appendix

    H UR O N I 33 © 2023 Huron Consulting Group Inc. and affiliates. Appendix

  34. Slide 34: Reconciliation of net income to adjusted EBITDA

    H UR O N I 34 © 2023 Huron Consulting Group Inc. and affiliates. Reconciliations of non-GAAP measures Reconciliation of net income (loss) from continuing operations to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) (in millions) 2020 2021 2022 2023 Q1 2023 Q1 2024 R

  35. Slide 35: Reconciliation to adjusted net income

    H UR O N I 35 © 2023 Huron Consulting Group Inc. and affiliates. Reconciliations of non-GAAP measures Reconciliation of net income (loss) from continuing operations to adjusted net income from continuing operations (in millions, except earnings per share) 2020 2021 2022 2023 Q1 2023 Q1 2024 Net inco

  36. Slide 36: Reconciliation of cash from operations to free cash flow

    H UR O N I 36 © 2023 Huron Consulting Group Inc. and affiliates. Reconciliations of non-GAAP measures Reconciliation of cash from operating activities to free cash flow (in millions) 2020 2021 2022 2023 Q1 2023 Q1 2024 Cash from operating activities $ 137 $ 18 $ 85 $ 135 $ (92) $ (131) Less: Capital

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