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
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.