XML 37 R23.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Segment Information
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has five operating segments. The Executive Search business operates in the Americas, Europe (which includes Africa) and Asia Pacific (which includes the Middle East), and the Heidrick Consulting and On-Demand Talent businesses operate globally.

In 2023, the Company changed its measure of segment profitability from operating income to Adjusted EBITDA. The following tables include Adjusted EBITDA, which is the measure of segment profitability reported to the chief operating decision maker for purposes of allocating resources to the segments and assessing their performance. For segment purposes, reimbursements of out-of-pocket expenses classified as revenue and other operating income are reported separately and, therefore, are not included in the results of each segment. The Company believes that analyzing trends in revenue before
reimbursements (net revenue), analyzing operating expenses as a percentage of net revenue, and analyzing Adjusted EBITDA and Adjusted EBITDA margin more appropriately reflect its core operations.

The Company evaluates performance and allocates resources based on the chief operating decision maker’s review of (1) net revenue and (2) net income before interest, taxes, depreciation and amortization, as adjusted, to the extent they occur, for earnout accretion, earnout fair value adjustments, contingent compensation, deferred compensation plan income or expense, certain reorganization costs, impairment charges and restructuring charges ("Adjusted EBITDA"). Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue in the same period.

Three Months Ended
March 31,
20242023
Revenue before reimbursements (net revenue)$265,197 $239,317 
Net income 14,032 15,586 
Interest, net(4,086)(3,249)
Other, net(2,571)(1,809)
Provision for income taxes8,899 7,243 
Operating income 16,274 17,771 
Adjustments
Depreciation2,493 2,004 
Intangible amortization2,297 1,869 
Earnout accretion466 191 
Acquisition contingent consideration1,988 1,659 
Deferred compensation plan2,350 2,133 
Total adjustments9,594 7,856 
Adjusted EBITDA$25,868 $25,627 
Adjusted EBITDA margin9.8 %10.7 %

Revenue and Adjusted EBITDA by segment are as follows:
 Three Months Ended
March 31,
 20242023
Revenue
Executive Search
Americas$136,679 $127,327 
Europe 41,481 38,931 
Asia Pacific23,321 24,229 
Total Executive Search201,481 190,487 
On-Demand Talent37,857 31,117 
Heidrick Consulting25,859 17,713 
Revenue before reimbursements (net revenue)265,197 239,317 
Reimbursements3,901 2,802 
Total revenue$269,098 $242,119 
 Three Months Ended
March 31,
 20242023
Adjusted EBITDA
Executive Search
Americas$41,871 $42,124 
Europe3,353 2,081 
Asia Pacific3,195 3,567 
Total Executive Search48,419 47,772 
On-Demand Talent(921)(1,347)
Heidrick Consulting(2,027)(2,795)
Total segment operating income 45,471 43,630 
Research and Development(4,925)(5,251)
Global Operations Support(14,678)(12,752)
Total Adjusted EBITDA$25,868 $25,627