Shares of executive search firm Heidrick & Struggles International Inc. (HSII) surged 7.72% in pre-market trading on Tuesday, after the company reported better-than-expected fourth quarter earnings and revenue growth.
The key highlights from Heidrick & Struggles' Q4 2024 results include: - Revenue increased 9.1% year-over-year to $276.2 million - Adjusted EBITDA of $26.1 million with a 9.5% margin - Strong 10% growth in executive search revenue across regions and sectors - 11.5% increase in Hydra Consulting revenue driven by leadership engagements - Ended Q4 with robust cash position of $563 million, up $85 million from prior year
However, some areas of concern were: - 19.4% jump in salaries and benefits expense weighed on profitability - Adjusted EBITDA losses in the on-demand talent and Hydra Consulting segments - $43.3 million non-cash impairment charge related to the on-demand talent business - Anticipation of higher 35% tax rate in 2025 due to non-deductible acquisition costs