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Segment Information
 12 Months Ended
Dec. 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. The Company's operating segments are based on the organizational structure for which financial results are regularly reviewed by our chief operating decision-maker to evaluate performance and allocate resources.

Executive Search partners with our clients - respected organizations across the globe - to help them build and sustain the best leadership teams in the world, with a specialized focus on the placement of top-level senior executives.

On-Demand Talent provides clients seamless on-demand access to top independent talent, including professionals with deep industry and functional expertise for interim leadership roles and critical, project-based initiatives.

Heidrick Consulting partners with organizations to unlock the power of their people. The Company's tools and experts use data and technology designed to bring science to the art of human capital development and organizational design. Our services allow our clients to accelerate their strategies and the effectiveness of individual leaders, teams and organizations as a whole.
The Company's chief operating decision-maker is its Chief Executive Officer. The Company evaluates performance and allocates resources based on the CODM'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 net revenue in the same period. The CODM considers actual to historical, actual to budgeted, and actual to forecasted results and variances on a monthly basis using net revenue and Adjusted EBITDA when making decisions about allocating resources to the segments and assessing performance.

The following table presents a reconciliation of net income to Adjusted EBITDA and Adjusted EBITDA margin:


December 31,
202420232022
Revenue before reimbursements (net revenue)$1,098,573 $1,026,864 $1,073,464 
Net income 8,728 54,410 79,486 
Interest, net(14,422)(11,617)(5,337)
Other, net(8,702)(1,697)2,367 
Provision for income taxes21,924 34,261 35,750 
Operating income 7,528 75,357 112,266 
Adjustments
Depreciation10,782 9,113 7,394 
Intangible amortization8,075 9,395 3,209 
Earnout accretion1,926 1,554 820 
Earnout fair value adjustments438 — (464)
Acquisition contingent consideration10,815 11,934 3,885 
Deferred compensation plan5,257 6,132 (6,232)
Reorganization costs— 4,886 — 
Impairment charges59,478 7,246 — 
Restructuring charges6,939 — — 
Total adjustments103,710 50,260 8,612 
Adjusted EBITDA$111,238 $125,617 $120,878 
Adjusted EBITDA margin10.1 %12.2 %11.3 %
The following tables present our segment information, including significant segment expenses, for the years ended December 31, 2024, 2023 and 2022:

Year Ended December 31, 2024
Executive Search
AmericasEuropeAsia PacificOn-Demand TalentHeidrick ConsultingTotal
Revenue
Revenue before reimbursements$556,944 $165,018 $96,396 $168,325 $111,890 $1,098,573 
Reimbursements17,103 
Total revenue1,115,676 
Operating Expenses
Salaries and benefits (1)339,294 120,416 66,816 46,739 85,742 659,007 
General and administrative (2)43,390 29,809 16,253 15,083 21,922 126,457 
Cost of services— — — 108,487 10,463 118,950 
Total segment operating expenses382,684 150,225 83,069 170,309 118,127 904,414 
Segment Adjusted EBITDA174,260 14,793 13,327 (1,984)(6,237)194,159 
Reconciling Items
Research and development expenses (3)— — — — — 19,016 
Global Operations Support expenses (3)— — — — — 63,905 
Total reconciling expenses— — — — — 82,921 
Adjusted EBITDA$174,260 $14,793 $13,327 $(1,984)$(6,237)$111,238 

Year Ended December 31, 2023
Executive Search
AmericasEuropeAsia PacificOn-Demand TalentHeidrick ConsultingTotal
Revenue
Revenue before reimbursements$522,988 $166,379 $90,678 $152,506 $94,313 $1,026,864 
Reimbursements14,318 
Total revenue1,041,182 
Operating Expenses
Salaries and benefits (1)304,486 116,748 64,176 39,395 72,862 597,667 
General and administrative (2)45,144 27,385 15,432 11,965 17,947 117,873 
Cost of services— — — 99,712 9,327 109,039 
Total segment operating expenses349,630 144,133 79,608 151,072 100,136 824,579 
Segment Adjusted EBITDA173,358 22,246 11,070 1,434 (5,823)202,285 
Reconciling Items
Research and development expenses (3)— — — — — 20,535 
Global Operations Support expenses (3)— — — — — 56,133 
Total reconciling expenses— — — — — 76,668 
Adjusted EBITDA$173,358 $22,246 $11,070 $1,434 $(5,823)$125,617 
Year Ended December 31, 2022
Executive Search
AmericasEuropeAsia PacificOn-Demand TalentHeidrick ConsultingTotal
Revenue
Revenue before reimbursements$612,881 $176,275 $112,766 $91,349 $80,193 $1,073,464 
Reimbursements10,122 
Total revenue1,083,586 
Operating Expenses
Salaries and benefits (1)405,816 128,240 76,888 22,568 66,284 699,796 
General and administrative (2)42,872 25,885 16,065 5,638 13,156 103,616 
Cost of services— — — 63,479 7,197 70,676 
Total segment operating expenses448,688 154,125 92,953 91,685 86,637 874,088 
Segment Adjusted EBITDA164,193 22,150 19,813 (336)(6,444)199,376 
Reconciling Items
Research and development expenses (3)— — — — — 19,965 
Global Operations Support expenses (3)— — — — — 58,533 
Total reconciling expenses— — — — — 78,498 
Adjusted EBITDA$164,193 $22,150 $19,813 $(336)$(6,444)$120,878 

(1) Includes base salaries, payroll taxes, retirement benefits, separation and stock-based compensation. Excludes contingent compensation, deferred compensation plan income or expense and reorganization costs as these income/expense items are not included within the Company's measure of segment profitability.
(2) Includes professional fees, business development travel, information technology, communication services, marketing, taxes and licenses, temporary labor, bad debt, and other operating expenses. Excludes depreciation, intangible amortization, earnout accretion and earnout fair value adjustments as these income/expense items are not included within the Company's measure of segment profitability.
(3) Excludes depreciation expense and deferred compensation plan income expense as these income/expense items are not included within the Company's measure of segment profitability.
Depreciation and amortization, and capital expenditures, by segment, are as follows:
 December 31,
 202420232022
Depreciation and amortization
Executive Search
Americas$2,918 $3,092 $3,498 
Europe1,165 1,343 1,451 
Asia Pacific831 976 1,126 
Total Executive Search4,914 5,411 6,075 
On-Demand Talent7,047 8,197 2,669 
Heidrick Consulting2,294 2,179 878 
Total segments14,255 15,787 9,622 
Research and development3,957 2,073 524 
Global Operations Support645 648 457 
Total depreciation and amortization$18,857 $18,508 $10,603 
Capital expenditures
Executive Search
Americas$3,846 $2,351 $1,890 
Europe12,326 1,827 683 
Asia Pacific1,785 618 1,497 
Total Executive Search17,957 4,796 4,070 
On-Demand Talent586 398 732 
Heidrick Consulting123 559 128 
Total segments18,666 5,753 4,930 
Research and development7,083 7,170 4,878 
Global Operations Support566 510 1,326 
Total capital expenditures$26,315 $13,433 $11,134 

Identifiable assets, and goodwill and other intangible assets, net, by segment, are as follows:
 December 31,
 20242023
Current assets
Executive Search
Americas$413,380 $360,111 
Europe147,156 139,803 
Asia Pacific95,571 92,071 
Total Executive Search656,107 591,985 
On-Demand Talent45,814 37,224 
Heidrick Consulting66,628 53,334 
Total segments768,549 682,543 
Global Operations Support4,428 10,671 
Total allocated current assets772,977 693,214 
Unallocated non-current assets270,867 225,283 
Goodwill and other intangible assets, net
Executive Search
Americas90,745 91,762 
Europe37 1,589 
Asia Pacific— — 
Total Executive Search90,782 93,351 
On-Demand Talent57,713 126,707 
Heidrick Consulting1,849 3,036 
Total goodwill and other intangible assets, net150,344 223,094 
Total assets$1,194,188 $1,141,591 
Net revenue attributed to an individual country, other than the U.S. and Germany in the years ended 2024, 2023, and other than the U.S. in 2022, did not account for more than 10% of the total net revenue. Net revenue classified by country is as follows:
December 31,
202420232022
Unites States$647,565 $602,574 $703,657 
Germany115,439 103,183 32,756 
All other countries335,569 321,107 337,051 
Total net revenue$1,098,573 $1,026,864 $1,073,464 

Other than the U.S. and United Kingdom in the years ended 2024 and 2023, no single country had over 10% of the total long-lived assets, excluding financial instruments, intangible assets and tax assets. Long-lived assets, excluding financial instruments and tax assets, classified by country, are as follows:
December 31,
20242023
Unites States$62,096 $57,258 
United Kingdom33,200 27,759 
All other countries39,907 36,797 
Total long-lived assets$135,203 $121,814 
No single client accounted for more than 10% of our net revenue in 2024, 2023, and 2022.