NASDAQ$HSII

Heidrick & Struggles International Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported record results with net revenue climbing 79% year-over-year and 34% sequentially, driven by a successful BTG acquisition and strong contributions from all regions and lines of business.

Heidrick & Struggles announced record second-quarter results with net revenue of $260 million, a 79% increase year-over-year. The company's performance was driven by strong contributions from all regions and lines of business, including the successful acquisition of Business Talent Group (BTG).

  • Record net revenue of $260.0 million, up 78.6% from Q2 2020 and 34.2% from Q1 2021.
  • Operating income of $28.7 million, including a $3.2 million restructuring charge.
  • Adjusted EBITDA of $37.6 million, more than doubled with adjusted EBITDA margin increasing to 14.4%.
  • Established On-Demand Talent segment reflecting the acquisition of Business Talent Group (BTG).

Headline financials

Total Revenue

$260M

Previous: $146M+78.6%
EPS (adj)

$1.14

Previous: $0.37+208.1%
Consultant Productivity

$2.4M

Previous: $1.4M+71.4%
Avg Revenue per Exec Search

$133K

Previous: $142K-6.2%
Adjusted EBITDA

$37.6M

Previous: $12.4M+203.2%
Adjusted EBITDA Margin

14.4%

Previous: 8.5%+69.4%
Capital Expenditures

$1.76M

Previous: $2.8M-37.2%
Free Cash Flow

$88.5M

Previous: $38M+132.6%
Net Income

$20.8M

Previous: -$25.7M+180.8%
Operating Income

$28.7M

Previous: -$24M+219.7%
Gross Profit

$60.5M

Previous: $43.2M+40.1%
Cash & Equivalents

$238M

Previous: $219M+8.7%
Total Assets

$832M

Previous: $788M+5.5%
Stock-Based Comp

$2.86M

Previous: $1.32M+116.7%

Revenue & EPS history

Heidrick & Struggles · Revenue · Quarterly

$260M

Q2 2021+78.6%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Heidrick & Struggles · $260M total across 3 segments · Q2 2021

  • Executive Search
    $224M+67.0%
  • On-Demand Talent
    $18.7M
  • Heidrick Consulting
    $17.1M+49.4%

Forward guidance

The Company expects 2021 third quarter consolidated net revenue of between $245 million and $255 million, while acknowledging the continued fluidity of the COVID-19 pandemic that may impact quarterly results.

Tailwinds

  • Anticipated volume of new Executive Search confirmations
  • Heidrick Consulting assignments
  • On-Demand Talent projects
  • Current backlog
  • Consultant productivity

Headwinds

  • Continued fluidity of the COVID-19 pandemic
  • Seasonality of its business
  • Consultant retention
  • Average currency rates in June 2021
  • Other factors management's assumptions

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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