NASDAQ$HSII

Heidrick & Struggles International Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Delivered third consecutive quarter of record results.

Heidrick & Struggles' Q3 2021 net revenue reached a record $264 million, climbing 84% year-over-year, with net income growing to $24 million and diluted EPS reaching $1.21. The company's outlook guides to record Q4 levels.

  • Record net revenue (revenue before reimbursements) of $263.8 million increased 83.8% from the 2020 third quarter.
  • Record operating income was $33.3 million, and operating income margin expanded to 12.6% in the quarter.
  • Adjusted EBITDA of $36.1 million more than doubled from $15.9 million in the 2020 third quarter, and adjusted EBITDA margin increased 265 basis points to 13.7%.
  • Net income and diluted earnings per share grew to $24.5 million and $1.21, respectively.

Headline financials

Total Revenue

$264M

Previous: $144M+83.8%
EPS (adj)

$1.11

Previous: $0.39+184.6%
Consultant Productivity

$2.4M

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

$134K

No prior period
Adjusted EBITDA

$36.1M

Previous: $15.9M+127.0%
Adjusted EBITDA Margin

13.7%

Previous: 11.0%+24.5%
Capital Expenditures

$1.2M

Previous: $2.57M-53.4%
Free Cash Flow

$116M

Previous: $49.3M+135.2%
Net Income

$24.5M

Previous: -$26.2M+193.5%
Operating Income

$33.3M

Previous: -$38.2M+187.1%
Gross Profit

$60.7M

Previous: $40.6M+49.5%
Cash & Equivalents

$348M

Previous: $171M+104.2%
Total Assets

$949M

Previous: $713M+33.0%
Stock-Based Comp

$2.82M

Previous: $3.21M-12.2%

Revenue & EPS history

Heidrick & Struggles · Revenue · Quarterly

$264M

Q3 2021+83.8%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Heidrick & Struggles · $264M total across 3 segments · Q3 2021

  • Executive Search
    $222M+71.5%
  • On-Demand Talent
    $24.3M+69.9%
  • Heidrick Consulting
    $17.9M

Forward guidance

The Company expects 2021 fourth quarter consolidated net revenue of between $255 million and $265 million, while acknowledging that the continued fluidity of the COVID-19 pandemic 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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