NASDAQ$HSII

Heidrick & Struggles International Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Heidrick & Struggles reported a year-over-year revenue growth and maintained a double-digit adjusted EBITDA margin despite macro uncertainty.

Heidrick & Struggles reported a 3% year-over-year increase in revenue to $263.2 million for Q3 2023. The company's adjusted EBITDA margin remained strong at 12.3%. Growth was seen in On-Demand Talent, Heidrick Consulting, and Executive Search in Europe, which was partially offset by declines in Executive Search in Asia Pacific and the Americas.

  • Net revenue increased 3% year over year to $263.2 million.
  • Operating income increased sequentially by $8.6 million and the operating margin was 8.4%.
  • Adjusted EBITDA margin was 12.3%.
  • Diluted earnings per share was $0.73.

Headline financials

Total Revenue

$263M

Previous: $255M+3.1%
EPS (adj)

$0.73

Previous: $1.00-27.0%
Consultant Productivity

$1.9M

Previous: $2.2M-13.6%
Avg Revenue per Exec Search

$153K

Previous: $155K-1.3%
Adjusted EBITDA

$32.3M

Previous: $33.3M-3.0%
Adjusted EBITDA Margin

12.3%

Previous: 13.0%-5.4%
Capital Expenditures

-$2.81M

Previous: $3.94M-171.2%
Free Cash Flow

$107M

Previous: $135M-20.7%
Net Income

$15M

Previous: $20.8M-28.0%
Operating Income

$22.1M

Previous: $28.3M-22.0%
Gross Profit

$70M

Previous: $69M+1.4%
Cash & Equivalents

$286M

Previous: $275M+4.0%
Total Assets

$1.04B

Previous: $1.07B-3.0%
R&D Expense

$5.56M

No prior period
Stock-Based Comp

$3.56M

Previous: $4.21M-15.4%

Revenue & EPS history

Heidrick & Struggles · Revenue · Quarterly

$263M

Q3 2023+3.1%vs Q3 2022
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Heidrick & Struggles · $263M total across 3 segments · Q3 2023

  • Executive Search
    $199M-6.6%
  • On-Demand Talent
    $41.1M+76.6%
  • Heidrick Consulting
    $23.3M+21.8%

Forward guidance

The Company expects 2023 fourth quarter consolidated net revenue of between $240 million and $260 million.

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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