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,
2024202320242023
Revenue before reimbursements (net revenue)$278,559 $263,160 $822,382 $773,702 
Net income14,829 14,987 23,704 39,555 
Interest, net(2,570)(2,505)(9,268)(7,667)
Other, net555 649 (3,013)(2,537)
Provision for income taxes6,268 9,006 19,750 24,142 
Operating income19,082 22,137 31,173 53,493 
Adjustments
Depreciation2,997 2,387 7,480 6,563 
Intangible amortization1,953 2,353 6,170 6,869 
Earnout accretion478 455 1,413 1,097 
Earnout fair value adjustments— — 1,211 — 
Acquisition contingent consideration2,947 3,268 8,220 8,711 
Deferred compensation plan2,958 (1,427)6,264 2,309 
Reorganization costs— 176 — 3,572 
Impairment charges— — 16,224 7,246 
Restructuring charges— — 6,939 — 
Total adjustments11,333 7,212 53,921 36,367 
Adjusted EBITDA$30,415 $29,349 $85,094 $89,860 
Adjusted EBITDA margin10.9 %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,
 2024202320242023
Revenue
Executive Search
Americas$134,545 $132,320 $418,302 $398,210 
Europe 43,143 44,606 124,706 129,104 
Asia Pacific26,701 21,888 72,829 68,766 
Total Executive Search204,389 198,814 615,837 596,080 
On-Demand Talent46,231 41,053 125,983 111,410 
Heidrick Consulting27,939 23,293 80,562 66,212 
Revenue before reimbursements (net revenue)278,559 263,160 822,382 773,702 
Reimbursements4,256 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,
 2024202320242023
Adjusted EBITDA
Executive Search
Americas$40,465 $39,354 $130,448 $127,557 
Europe5,022 8,950 11,215 16,487 
Asia Pacific5,247 2,704 10,182 7,901 
Total Executive Search50,734 51,008 151,845 151,945 
On-Demand Talent1,763 (580)(787)660 
Heidrick Consulting(1,025)(2,391)(4,447)(6,848)
Total segment Adjusted EBITDA51,472 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