Heidrick & Struggles International, Inc. (NASDAQ:HSII) Q2 2022 Results Conference Call July 25, 2022 5:00 PM ET

Company Participants

Suzanne Rosenberg - VP, IR

Krishnan Rajagopalan - President and CEO

Mark Harris - CFO

Conference Call Participants

Kevin Steinke - Barrington Research

Tobey Sommer - Truist Securities

Marc Riddick - Sidoti

Operator

Good afternoon, and thank you for standing by. Welcome to the Heidrick & Struggles Q2 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. [Operator Instructions] During today’s call there will be a question-and-answer session. [Operator Instructions]

I will now turn the conference over to Suzanne Rosenberg, Vice President, Investor Relations. Please go ahead.

Suzanne Rosenberg

Thank you, and welcome to our 2022 second quarter conference call.

On today’s call is our President and CEO, Krishnan Rajagopalan; and Chief Financial Officer, Mark Harris. We posted our second quarter 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 material presented today, we may refer to non-GAAP financial measures that we believe provide additional insight into underlying results. A reconciliation between GAAP and non-GAAP financial 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, I’ll turn the call over to Krishnan.

Krishnan Rajagopalan

Thank you, Suzanne, and good afternoon, everyone. Let me begin with a brief recap of our financial highlights, which marked another truly stellar quarter of record results for our firm.

Today, we announced consolidated net revenue of $299 million, growing 15% over last year and marking a new milestone as the highest quarter of revenue in the Company’s history. Growth was seen across all segments of our business. And of note, Executive Search delivered its highest revenue quarter ever, and Heidrick Consulting reached its second highest level ever. On-Demand Talent posted revenue of more than $22 million, which puts us on an annual run rate of more than $90 million. Equally important, profitability was very strong with record operating income and record earnings per share.

Leadership trends in the marketplace remain strong, and we continue to see demand signals across each of our segments. While we have no current indication of any significant contraction, we do expect some near-term volatility given that we’re in a new and very dynamic environment with inflation at multi-decade high, central banks raising rates faster than previously anticipated, commodity prices holding at or near highs, continued uncertainty around COVID and the rising strength of the U.S. dollar. Importantly, we remain highly communicative with our clients as we actively monitor the horizon to respond quickly.