NASDAQ$HSII

Heidrick & Struggles International Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported first quarter results, completed acquisitions of Atreus and businessfourzero, and maintained strong profitability despite macroeconomic headwinds.

Heidrick & Struggles reported a decrease in first quarter revenue compared to the previous year, but maintained strong profitability with an Adjusted EBITDA margin of nearly 12%. The company continued to advance its diversification strategy with the acquisition of businessfourzero and the ongoing integration of Atreus.

  • Net revenue of $239.3 million; on a constant currency basis net revenue was $244.8 million
  • Operating income of $17.8 million and operating margin of 7.4%
  • Adjusted EBITDA of $27.5 million with Adjusted EBITDA margin of 11.5%
  • Net income of $15.6 million and diluted earnings per share of $0.76

Headline financials

Total Revenue

$239M

Previous: $284M-15.7%
EPS (adj)

$0.76

Previous: $0.90-15.6%
Consultant Productivity

$1.8M

Previous: $2.5M-28.0%
Avg Revenue per Exec Search

$124K

Previous: $124K+0.0%
Adjusted EBITDA

$27.5M

Previous: $35.7M-23.1%
Adjusted EBITDA Margin

11.5%

Previous: 12.6%-8.7%
Capital Expenditures

$3.81M

Previous: $1.8M+111.1%
Free Cash Flow

-$341M

Previous: -$264M-29.1%
Net Income

$15.6M

Previous: $18.5M-15.8%
Operating Income

$17.8M

Previous: $30.2M-41.2%
Gross Profit

$60.4M

Previous: $66.1M-8.6%
Cash & Equivalents

$205M

Previous: $268M-23.6%
Total Assets

$891M

Previous: $896M-0.5%
Stock-Based Comp

$1.85M

Previous: $3.7M-49.9%

Revenue & EPS history

Heidrick & Struggles · Revenue · Quarterly

$239M

Q1 2023-15.7%vs Q1 2022
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Heidrick & Struggles · $239M total across 3 segments · Q1 2023

  • Executive Search
    $190M-21.4%
  • On-Demand Talent
    $31.1M+33.0%
  • Heidrick Consulting
    $17.7M-1.0%

Forward guidance

The Company expects 2023 second quarter consolidated net revenue of between $260 million and $280 million, while acknowledging that continued fluidity in external factors, such as the foreign exchange and interest rate environments, foreign conflicts, inflation and macroeconomic constraints on pricing actions, may impact quarterly results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 6 quarterly earnings reports

Historical avg

+2.0%

Avg return

Earnings day

+10.0%

Avg return

5 days after

+10.5%

Avg return

30 days after

58%

37 / 64 earnings

Positive

+27.6%

Q4 2018

Best reaction

-19.4%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+0.0%-0.0%+0.3%
Q2 2025+4.8%+3.8%+15.9%
Q1 2025+3.8%+8.2%+11.4%
Q4 2024+12.3%+18.0%+4.1%
Q3 2024+7.6%+20.7%+16.7%
Q2 2024+14.3%+6.1%+6.4%
Q1 2024-1.4%+8.3%+16.6%
Q4 2023+16.5%+15.2%+12.6%
Q3 2023+7.6%
Q2 2023+3.8%
Q1 2023-11.1%
Q4 2022+14.8%
Q3 2022-5.4%
Q2 2022+1.5%
Q1 2022-19.4%
Q4 2021-5.6%
Q3 2021+2.1%
Q2 2021+3.0%
Q1 2021+7.7%
Q4 2020+8.6%
Q3 2020+9.0%
Q2 2020+1.1%
Q1 2020-3.5%
Q4 2019-18.6%
Q3 2019+1.3%
Q2 2019-3.1%
Q1 2019-8.5%
Q4 2018+27.6%
Q3 2018+25.5%
Q2 2018+18.2%
Q1 2018+18.4%
Q4 2017+1.2%
Q3 2017+15.7%
Q2 2017-10.6%
Q1 2017-15.9%
Q4 2016+13.7%
Q3 2016-13.4%
Q2 2016+19.7%
Q1 2016-16.6%
Q4 2015-0.4%
Q3 2015+26.4%
Q2 2015-6.1%
Q1 2015+4.2%
Q4 2014+2.3%
Q3 2014-4.7%
Q2 2014+5.6%
Q1 2014-2.3%
Q4 2013+2.4%
Q3 2013+0.3%
Q2 2013+2.6%
Q1 2013+11.6%
Q4 2012-17.6%
Q3 2012-0.5%
Q2 2012-14.8%
Q1 2011-5.6%
Q1 2012-0.8%
Q4 2009+2.7%
Q4 2011+2.7%
Q3 2010+1.2%
Q3 2011+1.2%
Q2 2011-2.2%
Q2 2010-2.2%
Q4 2010-2.2%
Q1 2010-4.0%

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