Heidrick & Struggles International, Inc. (NASDAQ:HSII) Q4 2022 Earnings Conference Call February 27, 2023 5:00 PM ET

Company Representatives

Krishnan Rajagopalan - President, Chief Executive Officer

Mark Harris - Chief Financial Officer

Suzanne Rosenberg - Vice President of Investor Relations

Conference Call Participants

Kevin Steinke - Barrington Research

Marc Riddick - Sidoti

Tobey Sommer - Truist Securities

Operator

Good day, everyone. My name is [inaudible]. I'll be your conference operator for today. At this time I’d like to welcome everyone to the Fourth Quarter 2022 Heidrick & Struggles Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. As a reminder, today's call is being recorded.

It is now my pleasure to turn the conference over to Suzanne Rosenberg, Vice President of Investor Relations. Please go ahead, ma’am.

Suzanne Rosenberg

Thank you, and welcome to our 2022 fourth quarter and fiscal year end conference call. Joining me on today's call is our President and CEO, Krishnan Rajagopalan; and Chief Financial Officer, Mark Harris. We posted our accompanying slides on the IR home page of our website at heidrick.com and we encourage you to view these slides for additional context.

Please note that in the materials presented today we may refer to non-GAAP financial measures that we believe provide additional insight into underlying results. A reconciliation between these non-GAAP financial measures and the most comparable GAAP measures may be found in the earnings press release. Also in our remarks, we may make certain forward-looking statements. We ask that you please refer to the safe Harbor Language also contained in today's press release.

With that Krishnan, I'll now turn the call over to you.

Krishnan Rajagopalan

Thank you, Suzanne. Good afternoon, everyone. 2022 was another excellent year for our company as we managed our business through heightened geopolitical threats and global economic uncertainty, while successfully navigating the turn coming out of the pandemic and delivering for our clients.

I'm pleased to report we surpassed $1 billion in annual net revenue for a second consecutive year and beat last year's record by 7% or 10% on a constant currency basis. Additionally, we maintained our intense focus on profitability and delivered strong full year operating margins of 10.5% and adjusted EBITDA margin of 12.7%.

Our adjusted diluted earnings per share were $3.84 per share, which is meaningfully above the pre-pandemic levels. Overall, our strong performance was achieved even as we invested strategic and digital assets that we didn't have the previous year, and despite unfavorable foreign exchange rates and the market slowdown.