XML 36 R23.htm IDEA: XBRL DOCUMENT
v3.24.3

Segment Information | 9 Months Ended
--- | ---
Sep. 30, 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) Adjusted EBITDA, which is defined as net income before interest, other income or expense, income 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 margin is defined as Adjusted EBITDA as a percentage of revenue in the same period.
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Revenue before reimbursements (net revenue) |  | $ | 278,559 |  |  | $ | 263,160 |  |  | $ | 822,382 |  |  | $ | 773,702 |
Net income |  | 14,829 |  |  | 14,987 |  |  | 23,704 |  |  | 39,555 |
Interest, net |  | (2,570) |  |  | (2,505) |  |  | (9,268) |  |  | (7,667) |
Other, net |  | 555 |  |  | 649 |  |  | (3,013) |  |  | (2,537) |
Provision for income taxes |  | 6,268 |  |  | 9,006 |  |  | 19,750 |  |  | 24,142 |
Operating income |  | 19,082 |  |  | 22,137 |  |  | 31,173 |  |  | 53,493 |
Adjustments |  |  |  |  |  |  |  |
Depreciation |  | 2,997 |  |  | 2,387 |  |  | 7,480 |  |  | 6,563 |
Intangible amortization |  | 1,953 |  |  | 2,353 |  |  | 6,170 |  |  | 6,869 |
Earnout accretion |  | 478 |  |  | 455 |  |  | 1,413 |  |  | 1,097 |
Earnout fair value adjustments |  | — |  |  | — |  |  | 1,211 |  |  | — |
Acquisition contingent consideration |  | 2,947 |  |  | 3,268 |  |  | 8,220 |  |  | 8,711 |
Deferred compensation plan |  | 2,958 |  |  | (1,427) |  |  | 6,264 |  |  | 2,309 |
Reorganization costs |  | — |  |  | 176 |  |  | — |  |  | 3,572 |
Impairment charges |  | — |  |  | — |  |  | 16,224 |  |  | 7,246 |
Restructuring charges |  | — |  |  | — |  |  | 6,939 |  |  | — |
Total adjustments |  | 11,333 |  |  | 7,212 |  |  | 53,921 |  |  | 36,367 |
Adjusted EBITDA |  | $ | 30,415 |  |  | $ | 29,349 |  |  | $ | 85,094 |  |  | $ | 89,860 |
Adjusted EBITDA margin |  | 10.9 | % |  | 11.2 | % |  | 10.3 | % |  | 11.6 | %
Revenue and Adjusted EBITDA by segment are as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Revenue |  |  |  |  |  |  |  |
Executive Search |  |  |  |  |  |  |  |
Americas |  | $ | 134,545 |  |  | $ | 132,320 |  |  | $ | 418,302 |  |  | $ | 398,210 |
Europe |  | 43,143 |  |  | 44,606 |  |  | 124,706 |  |  | 129,104 |
Asia Pacific |  | 26,701 |  |  | 21,888 |  |  | 72,829 |  |  | 68,766 |
Total Executive Search |  | 204,389 |  |  | 198,814 |  |  | 615,837 |  |  | 596,080 |
On-Demand Talent |  | 46,231 |  |  | 41,053 |  |  | 125,983 |  |  | 111,410 |
Heidrick Consulting |  | 27,939 |  |  | 23,293 |  |  | 80,562 |  |  | 66,212 |
Revenue before reimbursements (net revenue) |  | 278,559 |  |  | 263,160 |  |  | 822,382 |  |  | 773,702 |
Reimbursements |  | 4,256 |  |  | 4,736 |  |  | 12,408 |  |  | 10,090 |
Total revenue |  | $ | 282,815 |  |  | $ | 267,896 |  |  | $ | 834,790 |  |  | $ | 783,792 |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Adjusted EBITDA |  |  |  |  |  |  |  |
Executive Search |  |  |  |  |  |  |  |
Americas |  | $ | 40,465 |  |  | $ | 39,354 |  |  | $ | 130,448 |  |  | $ | 127,557 |
Europe |  | 5,022 |  |  | 8,950 |  |  | 11,215 |  |  | 16,487 |
Asia Pacific |  | 5,247 |  |  | 2,704 |  |  | 10,182 |  |  | 7,901 |
Total Executive Search |  | 50,734 |  |  | 51,008 |  |  | 151,845 |  |  | 151,945 |
On-Demand Talent |  | 1,763 |  |  | (580) |  |  | (787) |  |  | 660 |
Heidrick Consulting |  | (1,025) |  |  | (2,391) |  |  | (4,447) |  |  | (6,848) |
Total segment Adjusted EBITDA |  | 51,472 |  |  | 48,037 |  |  | 146,611 |  |  | 145,757 |
Research and Development |  | (4,606) |  |  | (4,927) |  |  | (14,312) |  |  | (15,396) |
Global Operations Support |  | (16,451) |  |  | (13,761) |  |  | (47,205) |  |  | (40,501) |
Total Adjusted EBITDA |  | $ | 30,415 |  |  | $ | 29,349 |  |  | $ | 85,094 |  |  | $ | 89,860 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration