NASDAQ$HSII

Heidrick & Struggles International Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Heidrick & Struggles' Q4 2021 performance was marked by record net revenue and profitability, driven by growth across all regions and business segments.

Heidrick & Struggles reported a record quarterly net revenue of $285.5 million, a 77% increase year-over-year. The company's operating income grew significantly, with adjusted EBITDA reaching $36.8 million. This performance was fueled by strong growth in Executive Search, Heidrick Consulting, and the addition of On-Demand Talent.

  • Net revenue reached a record $285.5 million, up 77% year-over-year.
  • Operating income increased to $16.6 million, with adjusted operating income at $28.0 million.
  • Net income climbed to $12.5 million, and adjusted diluted earnings per share rose to $1.02.
  • Adjusted EBITDA was $36.8 million, with an adjusted EBITDA margin of 12.9%.

Headline financials

Total Revenue

$286M

Previous: $161M+77.4%
EPS (adj)

$1.02

Previous: $0.59+72.9%
Consultant Productivity

$2.7M

Previous: $1.6M+68.8%
Avg Revenue per Exec Search

$144K

Previous: $125K+15.1%
Adjusted EBITDA

$36.8M

Previous: $18.4M+100.5%
Adjusted EBITDA Margin

12.9%

Previous: 11.4%+13.2%
Capital Expenditures

$2.34M

Previous: $201K+1063.2%
Free Cash Flow

$204M

Previous: $96.1M+112.7%
Net Income

$12.5M

Previous: $5.54M+125.7%
Operating Income

$16.6M

Previous: $8.54M+94.4%
Gross Profit

$65.1M

Previous: $41.4M+57.3%
Cash & Equivalents

$545M

Previous: $316M+72.3%
Total Assets

$1.11B

Previous: $788M+40.5%
Stock-Based Comp

$4.09M

Previous: $3.05M+33.9%

Revenue & EPS history

Heidrick & Struggles · Revenue · Quarterly

$286M

Q4 2021+77.4%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Heidrick & Struggles · $286M total across 3 segments · Q4 2021

  • Executive Search
    $243M+66.3%
  • On-Demand Talent
    $23.6M
  • Heidrick Consulting
    $18.5M+26.4%

Forward guidance

The Company expects 2022 first quarter consolidated net revenue of between $270 million and $280 million, while acknowledging the continued fluidity of the COVID-19 pandemic and instability in Ukraine and Russia that may impact quarterly results.

Tailwinds

  • Anticipated volume of new Executive Search confirmations
  • Heidrick Consulting assignments
  • On-Demand Talent projects and the current backlog
  • Consultant productivity
  • Consultant retention

Headwinds

  • Continued fluidity of the COVID-19 pandemic
  • Instability in Ukraine and Russia that may impact quarterly results
  • Based on the average currency rates in December 2021
  • Seasonality of the business
  • 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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