Heidrick & Struggles International
Heidrick & Struggles International — Q4 2024 Earnings Presentation
26 slides from Heidrick & Struggles International's earnings presentation, Mar 3, 2025
Slide 1: Fourth Quarter 2024 Results
Fourth Quarter 2024 Results March 3, 2025
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding guidance for the first quarter of 2025. The forward-looking statements are based on current expectations
Slide 3: Non-GAAP Financial Measures & Currency Presentation
Non-GAAP Financial Measures & Currency Presentation NON-GAAP FINANCIAL MEASURES To supplement the financial results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Heidrick & Struggles presents certain non-GAAP financial measures. A “non-GAAP fina
Slide 4: Overview
Overview
Slide 5: Investment Highlights
Investment Highlights Immense opportunity to create value for clients, colleagues and investors by discovering, assessing and enabling exceptional leaders PREEMINENT LEADERSHIP CONSULTANCY EXPANSION OF CAPABILITIES & EXPERTISE • World class brand with top of the house relationships • Expanding in ar
Slide 6: Growing our impact and scale in the era of who and how
Growing our impact and scale in the era of who and how C R E AT I N G U N R I VA L E D VA LU E F O R CLIENTS D I F F E R E N T I AT E D DEEP DURABLE Secure C-Suite & Embed in Client Create Continuous By 2030, H&S aims Board Primacy Transformations Engagement to grow 1,000 differentiated, deep, and d
Slide 7: Multiple drivers of growth and profit
Multiple drivers of growth and profit T H ROUGH- CYCLE ORG ANIC R E VENUE LONG-TERM SOLUTION AREA GROWTH A D J U S T E D E B I T D A M A R G I N TA R G E T * Heidrick Search 4-6% 24-26% Heidrick On-Demand 7-11% 7-9% Heidrick Consulting 8-12% 11-13% In the near to mid term, we are targeting through c
Slide 8: Financial Highlights
Financial Highlights Heidrick & Struggles continues to deliver strong financial performance REVENUE ADJUSTED EBITDA* NET INCOME EARNINGS PER SHARE • Quarterly net revenue of $276.2 • Adjusted EBITDA* of $26.1 million • Net loss of $15.0 million for the fourth • Diluted loss per share of $0.73 for mi
Slide 9: Creating a Portfolio of Solutions that Addresses Urgent Client Need and Amplify Search Impact
Creating a Portfolio of Solutions that Addresses Urgent Client Need and Amplify Search Impact EXECUTIVE SEARCH ON–DEMAND TALENT HEIDRICK CONSULTING • 10.1% year over year revenue growth • 3.0% year over year revenue growth • 11.5% year over year revenue growth for the for the fourth quarter for the
Slide 10: Consolidated Results
Consolidated Results
Slide 11: Consolidated Financial Highlights
Consolidated Financial Highlights QUARTERLY NET REVENUE AND ADJUSTED EBITDA* TRENDS CONSOLIDATED NET REVENUE ADJUSTED EBITDA* $276.2M $26.1M $169.4M Pandemic $12.8M Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q4 2017 Q42018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Executiv
Slide 12: Consolidated Financial Highlights
Consolidated Financial Highlights QUARTERLY ADJUSTED EBITDA MARGIN* AND ADJUSTED DILUTED EPS* TRENDS ADJUSTED EBITDA MARGIN* ADJUSTED DILUTED EPS* $1.08 9.5% 7.6% $0.15 Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Con
Slide 13: Executive Search Results
Executive Search Results
Slide 14: Executive Search Financial Highlights
Executive Search Financial Highlights QUARTERLY NET REVENUE AND ADJUSTED EBITDA* TRENDS NET REVENUE ADJUSTED EBITDA* $202.5M Pandemic $50.5M $148.9M $18.4M Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Americas Europe
Slide 15: Executive Search Operational Highlights
Executive Search Operational Highlights CONSULTANT HEADCOUNT SEARCH CONFIRMATIONS CONSULTANT PRODUCTIVITY ($M) 414 418 $2.0 $1.9 1,338 1,345 Q4 2023 Q4 2024 Q4 2023 Q4 2024 TTM Q4 2023 TTM Q4 2024 1% year-over-year consultant 1% year-over-year increase in Trailing twelve-month productivity headcount
Slide 16: On-Demand Talent Results
On-Demand Talent Results
Slide 17: On-Demand Talent Financial Highlights
On-Demand Talent Financial Highlights QUARTERLY NET REVENUE AND ADJUSTED EBITDA* TRENDS $42.3M NET REVENUE ADJUSTED EBITDA* $2.1M Atreus Acquired $23.6M $(1.2)M Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2021 2022 2023 2024 2021 2022 2023 2024 3.0% year over year growth On-Demand Talent is currently in the investment
Slide 18: Heidrick Consulting Results
Heidrick Consulting Results
Slide 19: Heidrick Consulting Financial Highlights
Heidrick Consulting Financial Highlights QUARTERLY NET REVENUE AND ADJUSTED EBITDA* TRENDS NET REVENUE $31.3.M ADJUSTED EBITDA* B4Z Acquired $(1.8)M $20.5M $(5.0)M Q4 Q4 Q4 Q4 Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 2021 2022 2023 2024 6.3% CAGR since Q4 2017 Restructured in
Slide 20: Balance Sheet & Liquidity
Balance Sheet & Liquidity
Slide 21: Strong & Flexible Balance Sheet
Strong & Flexible Balance Sheet CASH & MARKETABLE SECURITIES, NET OF DEBT CASH PROVIDED BY OPERATING ACTIVITIES ($M) December 31, 2024 December 31, 2023 $621.6 For the quarter ending: $190.2 $155.9 $563.5 $545.2 $478.2 USE OF CASH PRIORITIZATION $456.0 $409.4 $422.0 $317.8 $348.3 $336.5 $336.6 $334.
Slide 22: Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 23: Adjusted Net Income & Earnings Per Share
2024 4 T H QUARTER AN D YEAR-TO-DA TE Adjusted Net Income & Earnings Per Share We define Adjusted Net Income as net income excluding impairment charges, restructuring charges and earnout fair value adjustments, net of tax. Three Months Ended Twelve Months Ended December 31, December 31, (In $ thousa
Slide 24: Adjusted EBITDA & Adjusted EBITDA Margin
2024 4 T H QUARTER Adjusted EBITDA & Adjusted EBITDA Margin Adjusted EBITDA is defined as net income before interest, other income or expense, income taxes, depreciation and amortization, as adjusted, to the extent they occur, for earnout accretion, earnout fair value adjustments, contingent compens
Slide 25: Adjusted EBITDA & Adjusted EBITDA Margin
2024 YEAR-TO-D AT E Adjusted EBITDA & Adjusted EBITDA Margin Adjusted EBITDA is defined as net income before interest, other income or expense, income taxes, depreciation and amortization, as adjusted, to the extent they occur, for earnout accretion, earnout fair value adjustments, contingent compen
Slide 26: Suzanne Rosenberg, VP, Investor Relations
Suzanne Rosenberg, VP, Investor Relations srosenberg@heidrick.com
Heidrick & Struggles International — Q4 2024 Earnings Presentation on 6ix