Q2 2024 Heidrick & Struggles International Inc Earnings Call Transcript
Key Points
- Heidrick & Struggles International Inc (HSII) generated solid topline growth, exceeding the high end of their outlook range.
- The company made significant leadership changes to drive growth, including appointing new leaders for non-search business areas.
- Heidrick Consulting saw a 6% year-over-year revenue growth, driven by increased leadership assessment and development engagements.
- On-demand talent business grew its revenue by 7% despite a slowdown in the broader temporary staffing space.
- The company has a strong cash position of $296.9 million, up $58 million from the previous year, with no debt and a $275 million credit facility.
- Heidrick & Struggles International Inc (HSII) recorded a non-cash one-time goodwill impairment of $16.2 million due to higher interest rates.
- A one-time restructuring charge of $6.9 million was incurred related to leadership changes and reduction in force.
- Adjusted EBITDA margin decreased to 10.3% from 12.9% in the same quarter last year.
- General and administrative expenses increased to $46.4 million, or 16.7% of net revenue, compared to 14.9% in the previous year.
- The on-demand talent business recorded an adjusted EBITDA loss of $1.6 million, compared to a gain of $2.6 million in the same quarter last year.
Thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Heidrick & Struggles second-quarter 2024 earnings conference call. (Operator Instructions)
I will now turn the conference over to Suzanne Rosenberg, Vice President of Investor Relations. Suzanne, you may begin.
Thank you, and welcome to our 2024 second-quarter conference call. Joining me today is our CEO, Tom Monahan; and CFO, Mark Harris. We posted our accompanying slides on the IR homepage of our website at heidrick.com, and we encourage you to view these slides for additional context.
Please note that in the materials presented today, we may refer to non-GAAP financial measures that we believe provide additional insight into underlying results. Reconciliations between these non-GAAP financial measures and the most comparable GAAP measures may be found in the earnings press release.
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