Heidrick & Struggles International
Heidrick & Struggles International — Q3 2024 Earnings Presentation
24 slides from Heidrick & Struggles International's earnings presentation, Nov 4, 2024
Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results November 4, 2024
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This presentation contains forward-looking statements within the meaning of the federal securities laws, including statements regarding guidance for the fourth quarter of 2024. 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 GLOBAL CONSULTANCY EXPANSION OF INDUSTRY EXPERTISE & CAPABILITIES • World class brand with top of the house relationships • Expanding
Slide 6: Financial Highlights
Financial Highlights Heidrick & Struggles continues to deliver strong financial performance REVENUE ADJUSTED EBITDA* NET INCOME EARNINGS PER SHARE • Quarterly net revenue of $278.6 • Adjusted EBITDA* of $30.4 million • Net income of $14.8 million for the third • Diluted earnings per share of $0.71 m
Slide 7: 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 • 2.8% year over year revenue growth • 12.6% year over year revenue growth • 19.9% year over year revenue for the third quarter for the third quarter gr
Slide 8: Consolidated Results
Consolidated Results
Slide 9: Consolidated Financial Highlights
Consolidated Financial Highlights QUARTERLY NET REVENUE AND ADJUSTED EBITDA* TRENDS CONSOLIDATED NET REVENUE ADJUSTED EBITDA* $278.6M $30.4M $159.8M Pandemic $18.4M Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 Executi
Slide 10: Consolidated Financial Highlights
Consolidated Financial Highlights QUARTERLY ADJUSTED EBITDA MARGIN* AND ADJUSTED DILUTED EPS* TRENDS ADJUSTED EBITDA MARGIN* ADJUSTED DILUTED EPS* 11.5% 10.9% $0.72 $0.43 Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 C
Slide 11: Executive Search Results
Executive Search Results
Slide 12: Executive Search Financial Highlights
Executive Search Financial Highlights QUARTERLY NET REVENUE AND ADJUSTED EBITDA* TRENDS NET REVENUE ADJUSTED EBITDA* $204.4M Pandemic $50.7M $144.1M $32.1M Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 Americas Europe
Slide 13: Executive Search Operational Highlights
Executive Search Operational Highlights CONSULTANT HEADCOUNT SEARCH CONFIRMATIONS CONSULTANT PRODUCTIVITY ($M) 417 414 $1.9 $1.9 1,303 1,374 Q3 2023 Q3 2024 Q3 2023 Q3 2024 TTM Q3 2023 TTM Q3 2024 1% year-over-year consultant 5% year-over-year increase in Trailing twelve-month productivity headcount
Slide 14: On-Demand Talent Results
On-Demand Talent Results
Slide 15: On-Demand Talent Financial Highlights
On-Demand Talent Financial Highlights QUARTERLY NET REVENUE AND ADJUSTED EBITDA* TRENDS $46.2M NET REVENUE ADJUSTED EBITDA* Atreus Acquired $1.8M $1.6M $24.3M Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 2021 2022 2023 2024 2021 2022 2023 2024 12.6% year over year growth On-Demand Talent is currently in the investment a
Slide 16: Heidrick Consulting Results
Heidrick Consulting Results
Slide 17: Heidrick Consulting Financial Highlights
Heidrick Consulting Financial Highlights QUARTERLY NET REVENUE AND ADJUSTED EBITDA* TRENDS NET REVENUE $27.9M ADJUSTED EBITDA* B4Z Acquired $(2.6)M $(1.0)M $15.7M Q3 Q3 Q3 Q3 Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 2021 2022 2023 2024 8.6% CAGR since Q3 2017 Restructured in Q
Slide 18: Balance Sheet & Liquidity
Balance Sheet & Liquidity
Slide 19: Strong & Flexible Balance Sheet
Strong & Flexible Balance Sheet CASH & MARKETABLE SECURITIES, NET OF DEBT CASH PROVIDED BY OPERATING ACTIVITIES ($M) September 30, 2024 September 30, 2023 $621.6 For the quarter ending: $101.1 $109.5 $545.2 $478.2 USE OF CASH PRIORITIZATION $456.0 $409.4 $422.0 $348.3 $336.5 $336.6 $334.0 $383.1 $28
Slide 20: Appendix
Appendix Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 21: Adjusted Net Income & Earnings Per Share
2 02 4 3 R D QU AR TE R AN D Y EA R -T O- D AT E 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 Nine Months Ended September 30, September 30, (
Slide 22: Adjusted EBITDA & Adjusted EBITDA Margin
2 02 4 3 R D QU AR TE R 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 co
Slide 23: Adjusted EBITDA & Adjusted EBITDA Margin
2 02 4 Y EA R- T O- 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
Slide 24: Suzanne Rosenberg, VP, Investor Relations
Suzanne Rosenberg, VP, Investor Relations srosenberg@heidrick.com
Heidrick & Struggles International — Q3 2024 Earnings Presentation on 6ix