HSII - Earnings call transcript Q2 2021 | Heidrick & Struggles International, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Heidrick and Struggles Q2 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Suzanne Rosenberg. you. Thank ahead. go Please

Suzanne Rosenberg

and second for quarter everyone and in Struggles XXXX conference thank afternoon participating you Heidrick Good call.

Financial Joining our me Mark Chief President is Harris. Officer, and CEO, on Krishnan Rajagopalan; today's call and

underlying non-GAAP quarter second at remarks. page and the for measures the numbers can to insight in website our our we Safe call financial results. additional remarks, forward-looking our financial turn A posted With but and refer in you release. Also news our ask GAAP have slides the materials, reconciliation we won't of in the heidrick.com view IR to into Krishnan, non-GAAP please you found and language be I'll to believe opening specific now we we making between during over statements Harbor In be provide on we encourage contained context, our that, our our homepage them you. will to measures that referring to We be release. that additional refer

Krishnan Rajagopalan

Good our afternoon join for the you taking everyone thank and to Susan. today. time call you, Thank

performed see As year very market out Heidrick, well of strong half release, see the our trends a we exceptionally number we second of a quarter underway. first while and from you our can closed for press positive

in are also continue opportunities the it's clients they face the I monitoring our world the prepare difficult note help a navigate challenges to clients we post-pandemic vigilant closely them for the that as important around through and to We and the think many of and world. situation new communities our through advise pandemic. globally remain

momentum recovery Once into our team Building quarter another year-over-year. the accelerated quarter, record sequentially performance. delivered exceeded results. first and our our and of to outstanding both expectations growth robust on results second with the our our again, strong Turning our

our pre-pandemic in ahead performance and profitability. terms we're revenue both In growth levels addition, of of

sequentially. and revenue record increased quarter, XX% second XX% net the For year-over-year

in all-time more the growth talent basis than segment XX.X. increased $X.XX this last operates EPS tripled reached sequentially. XX% the our EBITDA which BTG, market with first from points high margin of year XXX on-demand quarter highs adjusted of acquired of adjusted Newly And also revenue than year to exceeded from our Profitability and the growth expectations. expanding more

including search, more inclusion, pandemic be is have on-demand more and projects and equity that fluid. the While performance we solve accelerated a executive a stage, the sustainability are these by and complex people by and trends Companies portion the some working a system, differently how its and to strong this of sets through forces, including pent-up more be in are The digital Through society can still with confluence stream. skill of helping the greater adaptive and to the really driven issues attributed agile, ESG must outperformance transformation, while consulting way seismic that demand clients is major change of new work revenue be addressing clients our capabilities, a at and diverse others. larger we successful. result working for diversity, required result

delivering We several past in are over developed digital searches transformation, years. market Through and changes operate own also strong solutions to we the a new in the virtually. our from made at we benefit and the pace we've faster continue our positioning way executing

on pandemic productivity productivity. per accelerated to XXXX, Additionally, When reached our peak million levels business, $X.X consultant. of in look around per one with consultant our $X.X would historical to in focused have through our where back In than client have Balancing capabilities Heidrick we added drop expanded our talent rate, journeys current we our are the demand most acquisition the advisers million and consultant we returning And we our role on impact. during with clients at on recently, we as can believe levels our average per leadership of previously our and expect that BTG. XXXX. see a we with rate These $X Consulting approach together had. trends and stickiness this insights annual the technology, enhanced our haven't tech this have we clients firm's businesses creating we IP, enabling and our business with data our has platform global million is

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reminder, and professionals a project bring skilled, pursuing of work expertise range are pool who As deep broad independent on and who across they largely with. to what work BTG's work control a their highly industries independent professional they increase includes talent over and functions

for already from address. of business of the services no needs on-demand and the new have to last While months, doubt the grow agile, with BTG benefiting we continues business working in is raised Demand ways the organizations accelerated have the be greatly engaging visibility the few to and that by was that COVID already there need C-suite. can

returning on collaboration projects. we teams, pipelines, collaboration workforces Search, and many our to The of Heidrick work how leadership and over with needs. Executive XX% companies consulting resets approach productivity leadership great businesses go-to-market the and across our by of other Consulting's ready integration and around terrific hybrid revenue driven Search. and future We've continue seen future culture the client work With our and assignments and on-demand, cross-border Executive coming from impacts leadership as a work, of re-energize drive assessments to innovation among focus of a with optimization culture for development their align model including

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with approach Our our resonating is to DE&I clients.

On year, XX%. side, our placements at were the halfway tracking into build the diverse overall U.S.

is there many representation at Advisory focusing developing accelerating clients diverse diverse U.S. also the inclusive in our to significant continue culture well. that and and of as a Board mid-year results. the seen on we've with and the globally. impact XX% the diversity Also strong on the placements focus in mark, We our levels was XX% cultures leaders figure at and Again on DE&I Board accelerating placements pipeline side, increase

expect We continue is talent. key attracting trend and as recognize and this retaining culture to even the that organizations accelerate to

have started to As returning COVID, impetus. also is work many post an companies additional there

at issues company's sharp of with are perspective, Sustainability [ph]. from demand and interest diversity searches relationships. to and Board position. landscape significant investment high In professional better and level their the take activity This a in at wanting the their tech concerned understand ESG, remains about functional in private prospect. into and number the multiple companies these We're increase a to of and where especially innovator's the establishing a see terms emerging From Chief growing ready portfolio and company we equity product and VC action. world, In VC Officer-Assignments disruptive translated in winning has we stakeholders seeing demand, are these see own talent also a we deeper clients who the and from are

implies moment, but On these of events play reflective into fluid, through into are visibility results post-pandemic and confident geopolitical going the we're Heidrick's the Mark opportunities in strong continued seeing year-to-date movements and take and remain we're forward. performance a and and strength quarter our guidance pandemic directly us basis, global in will the increasingly position. positive own second Our trends as our a

we our on we're and diversity. new utilizing with inclusion and are of models. adaptation on-demand a out filling to Importantly, are resonates urgencies hybrid think culture Consulting, their needs focus pandemic. companies needs an the to an and representation focus way as increasing we're BTG, and new challenges clients. back with clients address visible upcoming In and we agile on talent leaders top to helping coming placing and In our about on that in solution workplace, work priorities alternative advising Search, Executive employees providing office in And bringing Heidrick

on critical Heidrick's remain today. where top at most organizations focused our we and always, the fits As of working solving client's brand problems

Beyond growth multiple that executing scale our transformation. consulting, remain our and which To capture portfolio and and more Heidrick enable include continue creating technology enhancing client story way summary, to initiatives, our will delivering analytics deepen to one of investments and to in a offerings. further paths and of impact search us bring capabilities our our of to even both on our service three on our future our we are clients. and Heidrick's clients see growing this end, and growth the growth to tech the the solutions innovation experience the we platform first, IP, current to is we and premium deliver opportunities, focused and In impact making specific and data leverage enabling

and into development the value. new third, talent. areas the leadership doing and and drive with of to world are want the around strategic excellent investing expansion contributions I closing, future expanding product driven an an each address the performance. as every to deliver great such clients and shareholder towards work offerings with team the Second, we new and position growth they're development the advancing and thank and our complementary in capabilities tech day comparative innovative strategy employees solutions ongoing agendas. of help our for best in client all In to our and on-demand important make innovative adjacent And they for to clients'

Now, quarterly Mark? us our I'll turn Mark through to over walk call the third performance Heidrick's and very outlook. strong quarter to

Mark Harris

you The full in our the second afternoon our the good year. continue to and Heidrick pace on Struggles for deliver to work us EPS Krishnan, hard call you, quarter, everyone. allowed putting Thank the half of continued Thank for team results record first today. a joining & record

resulted management As by strong of This and each of businesses, growth our sequentially strong quarter all-time each the P&L both marked coupled with driven Krishnan year-over-year in in mentioned, improvements, by profitability. the region. revenue was high practices levels net our of in second double-digit

Before quarter, like find our I'd you'll on changes reporting to that the point out in begin helpful. my some think we I second review format

by and talent some and We're engagement as yet focus from continuing to trends, also today our clients the remarks the are third continue lesser communities to year's previous new cost that, advise the that services performance. as contract on our reporting the we item impacted delivery, the vigilant established in included very these and trends BTG in but disruptions and of P&L. we consolidated to the notice, current the general post-pandemic demand overall and remain acquisition expenses. item BTG, the world. global the will see sequential added a clearly of extent, independent new on we much continue administrative Heidrick struggle, many party comparisons world I cost BTGs of to to the of for you'll we challenges quarter. primarily monitor The most situation. pandemic with Last which services around a pandemic while both to believe we reflect grow closely of previously service more includes my third-party segment line year's pleased a the talent we a line called to meaningful First, clients of second in Related on With potential on-demand was Consulting's the market in quarter recognize related includes costs, were

hit Now, with in quarter, XX.X% in you our the net is let last first the we second own. and to $XXX July, was me time quarter quarter of year's crossed second also of guidance. that prepared we remarks. million some publicly later of results. quarter reflected above million thus which we record on revenue demand of announce far above more quarter which third pleased which call quarter, $XXX historic will coupled XX.X% year, last in momentum quarter with my Clearly, the we've I provide stronger is a the its on million comment the this net we commented we're was this our this a encouraged record reported in when revenue first our expected about details and a for I'm in in much the $XXX.X seen second over than and in

XX.X% million, Looking at Executive million revenue was the in last compared net to $XXX.X up million or quarter. Search, $XX.X $XXX.X

we in confirmations performance achieved our X.X% to This with sequentially, approximately XX.X%, quarter our confirmations XXXX of Europe record Asia increasing all record, of which year. confirmation first prior and nearly growth Looking the saw company's at up growth we compared increased Pacific to in the experienced we in reflected XX.X% the is XX%. of XXXX new growth regions, this Americas

adjustments adjusted the When of we Therefore, to in driven of Executive value the the also higher at period, addition we in compensation the these number hires. operating segments, numbers margin look deferred bonus, movements In is strategic than and the strength some expected the I engagements closed second in When look it's the catch-up numbers consultant more better by to Search achievements. quarter six-month was better higher searches. relevant the compare operating to adjusted the noise and to think you half decrease there of helpful points period you XXXX to year-to-date the quarter points beyond basis and XXXX, half see from first of basis a our XX improvement as Europe margin reflects the XXX in basis improvement will in Americas, the first by and points Asia. XXX

points, respective and short, Asia basis points our both mark-to-market Executive periods, Search. with we're from you when of improvements market However, a and pleased basis margin continue in points XXX given respectively In out our to in investments and basis back XXX accordingly. adjustments we on we see numbers invest in expect very over basis points to XXX the X,XXX or Europe improvements teams performance, continued overall in the Americas,

our quarter, million by and engagements. backlogs was second revenue which in the million net of $XX Consulting, of Heidrick to the XXXX, $XX.X client execution Turning was last up quarter was $X.X million of driven This outstanding an to compared XX%. increase new

in saw XXXX million we XXXX of first compared in backlog from our while $XX.X in confirmations million by end also to to quarter second XX% fact, XX% at quarter. $XX.X QX increase the increasing the the QX In

of this drive for quarter, embedded in All expectations guidance. revenue performance to which the our helps third our is

models. XX% an in revenue outstanding investment expected with our ago. is of was than this $XX.X revenue based performance new we As talent achievement the over our net in you million. added from also This our just year segment growth much see income second And on of quarter statement, stronger on-demand with a

to raise strong generated strategy. to Heidrick year-over-year. our in As revenue Further part an in with from growth growth important demand the show Krishnan mentioned, segment, performance growth channel continue of visibility the on-demand continues and we the

a decreased to expenses, salary we and plans. $XX.X percentage and primarily of in quarter, in of costs the increase the due compensation quarter benefits hiring fixed benefits as increases by XXXX. increasing by by revenue compared salaries revenue to first driven $X.X million with million record quarter. saw Turning the to XX% in deferred XX.X% the compensation and increased Variable primarily performance separation to in Irrespective compensation costs,

for partially expenses, and occupancy amortizations travel information acquisition due time they and general the administrative at million, associated technology, savings, were office essentially professional at and of bad first offset by increases of and quarter primarily lower Looking to debt, first intangible in $XX.X levels flat services entertainment. with BTG, the

improvement. As general of compared a percentage of the revenue, net expenses XX.X% and XX.X% basis XXX were in points administrative quarter to a XXXX, first

our bit to year, down With under expect I very travel, half of expectation to move pleased a G&A XX%, percentage normalize as is we're an revenue and costs XX% While imagine would be G&A levels. for to we of below the to XX%. increase see to the other as that, occupancy would closer a in annual historical second

we quarter As of real conference a of to charge estate call, in restructuring our anticipated the due disclosed is in quarter closings. our office million $X.X first specific charge timing related and accounting second recorded the strategy. This to

forward, do quarter real approximately in Moving very estate restructuring charges spillover third $X to limited additional the beyond. $X the but and in quarter expect pertaining of we million, fourth to

Excluding to a the was the $XX.X restructuring operating charge, of XXXX. first million increase quarter that income of second we're XXXX the we million, pleased quarter from the $XX.X in had in XX.X% report adjusted

of and the operating on-demand, the new the from improved of quarter over adjusted XX adjusted XX.X%. to This the that improve XXXX. we first first million, XX% to saw only a first margin XXXX, XX.X% it's all margin in and removing points $XX.X points to the the basis operating increase margins EBITDA XX.X% adjusted saw we adjusted translated XXX of includes basis EBITDA margins. quarter quarter While second only quarters approximately between on-demand second the note important When of

XXXX of increase million an million compared is in $XX.X or first half XXXX XX%. EBITDA now at to Our in $XX.X

basis Our in margins also to improved first the XXXX. half XXX points of XX.X%

from Our per quarter $XX.X the adjusted increased XXXX second of $XX.X the first quarter XX.X% of earnings net million XXXX $X.XX. of income of increased the share in XX.X% in diluted adjusted from million the and $X.XX

close pace first-half here Heidrick. $X, With EPS before are record XXXX at annual to out of an at adjusted on seen the never year we level the

Given Directors $X.XX that all quarter, paying record dividend we we August share Board per August for in approved our the of shareholders and on our of a were in performance second X. announced

This the million million acquisition amortization for BTG our name the of addition as next achievements. and now balance, XX, over balance over relationships which ended of and receivable period, of when revenue and June an discussed XX%. amortized trend at of while two cash second three amortized turn where three Now, out our the this quarter, with the target. compared of equivalents quarter million increase becomes the over maintaining to customer years earn driven given million reflects XXXX is let to performance we in million of $XX.X the facility continue our respect $X.X me software $XXX.X grew $X.X million, payout to [ph] XXXX years trade regards we expect the income to BTG's sheet talent clearly within as million and our balance to BTG DSO by our with for second backing sheet operating outstanding out, accrete to will estimable strong $XXX.X of credit a $XXX.X completion database the Also, years, accounts cash with XX-year more $X.X

to to XXXX. renewal, month, extending our of us $XXX our $XX.X to now market increase acquisition. execute new to facility advantage credit expanded with for to added earlier pleased terms powder our the option at million previous Finally, credit favorable cash we're note $XXX position million dry facility and With coupled we balance borrowings, to accordion With and growth for credit strong an renewing our even conditions that our also to of to we that plenty balance that as please the our of same flexibility further facility. this facility, strong well took outstanding also with this July strategy. by With our announce sheet goodwill no this as sheet, million allows up we regards the credit

Now, quarter to me turn let outlook. our third

performance the Given we're of third at be looking our $XXX in strong million. quarter in the will markets seeing and range revenue believe $XXX models, our million our to we

within [ph] or lockdowns Struggles unforeseen see as execute we well that or outstanding Of happy pre-pandemic trajectory. necessary was through returning the if course, the a to as and new at growth choose to global team quarter Heidrick Delta short How to which will the can events an time how position governments current period change of are this the Operator, driven through time. further markets. In experiencing. spikes the managed well take growth very impacted with our we and government's we'll especially has to take incredible the we continue variant With such Heidrick in anticipate your steps you. pleased past in successfully respond, in an stimulus, we're don't equity this financial on that, if by other questions. materially acute with we COVID-XX, very continuing at levels to events currently as we're Further, quickly this business XXXX macro other be Heidrick recession cycle summary, over are re-caveat &

Operator

question, have Josh, we line your is [Operator Sidoti. you. first our Instructions] Vogel from Josh For Thank open.

Josh Vogel

you taking first original this levels just demand just Thanks, that's obviously elevated the the given revenue discuss here. finding instances any guys. estimates and I need talent you were? for a exceeding pent-up war my where of questions. the good is afternoon what couple late. talent, My have uptick Are robust actual for one, for activity Thanks yielding comp the or

Mark Harris

Josh, just one time. Sure, Would Mark. mind it's repeating that more you

Josh Vogel

the you demand the how given coming war estimates if is than elevated companies? pent-up original and your comp from were was higher talent curious global any I uptick in benefiting actual where revenue for sure. Yes, by was just just

Mark Harris

Yes.

couple of is was yes. answer things. the So see what we a And to were able

modifications mix, seen as of as what well of one really in The terms any terms material that first etc. retainers, the normal is we is, haven't in

that pretty definitely well. held anticipated. structures we've well, in think come uptick the have pretty held have The stronger than I we So,

in strength. We was obviously higher but it have upticks periods, previous seen the a great

up in in about for Europe, in almost they Asia-Pacific, XX%. X% were they XX% were So, up were they up example almost Americas,

up we guidance. would had I in, clearly revenue had So, within is the great in confirmation disclosed we that those you on One was where trend. from than and that the the thought come confirmations XXXX not almost terms the of things ago. kind record everything of clearly and of two kind discipline helped more think We've XXXX going structure by maintaining quarter of holding a our both terms upticks in, just in and But out. components of it, with kicking

Josh Vogel

a you those and new a for may a I given that searches technology. use of environment And you pent-up pace be demand? by this could comment enabled had Thank norm executing or growing or current insights. a of quantify if just faster was search is technology the in the about the and function Krishnan, you it wondering at is process

Mark Harris

is fire try for there to going I'm a out of had you Josh, that Washington to going off the answer building. run Krishnan alarm in -- DC, and

best be if I'm okay. going that's do my Krishnan to So, to

Josh Vogel

Okay.

Mark Harris

kind to the technology really and of by enablement push to XX%. of us big almost a COVID reduce let's question has our a complete of with side days it, be bit, to of frank, One little answer that things allowed from the your the we saw, the is,

bit the the is the a forced interviewing, is but drop. I and seen And has in rate place. the and with a have we've we that. think but with we've We a might really for if lingering acceptance some the able that had to for hard call their methodology that, achieve come -- revenue, through. time, I again out think it There Zoom that. Similar to that they seen on That achieving candidates, is, this doesn't over be some -- of So new place can actually us meet Heidrick that without it kind a to is the changing of Consulting delivery lot over quickly how and accomplishment terms of of of kind final is. assessments, it flying to $XX I our of mechanism, That's put million nice where in $XX seem which again, of acceptance waiting but the to think it's everything of digital of technology Connect Heidrick quarter guess helped we again I candidates us targets were be long norm. much mile in revenue probably really digital unscramble million new seen implementation question speaking we've all the for the with

you in market. -- comparisons unlocking quarter have there BTG some and I think obviously think can it. us to we'll -- hopefully and So us the really of get for demonstrate some another and some helping rollout But differentiation, in we and kind is value that really we which really is

Josh Vogel

grows? couple of is a about how service it BTG there, fixed, think and about you. cost have quick Is line forward that going as should BTG it we in perspective? Thank run I think we more ones should quarterly just around rate the a helpful. And like of how variable just That's from

Mark Harris

to always Consulting Heidrick outside service unlike to us where come in So right? an from percentage kind going Search clearly going able independent to be there's cost or that model, of their Executive consultants going is of process, are internalization to engaging. BTG of that this have is an

the really able to we consultants see minus walk should have have you more pay The that behind first of it kind implement was should of that of show that of is be door reported really a percentage around idea because through. come grow we It to interim amount third-party to scale, going what to to out that continue for right? breakeven. their figure scale As than to element, and to we quarter kind nice that So, have work. we plus revenue project is or

business. always As again last to I've quarter of real does the there made the job going a the managing team quarter, comments that and a flirt minus in or it's on side with fantastic excellent side plus had about of They breakeven it.

expecting saw, up able think as with get again it I we're to a margin we a XX% the when to we in business. XX%, XX%, steady X.X% just To should kind further of that get always margin growth. be we will road to slightly that its So, it's down expectations, figure, This business of set this scale, but finally margin. be that state was maybe not considerably, of X%, above kind play

Josh Vogel

much That's using just rapidly your growing visibility BTG how guidance Executive thanks. on-demand that that, QX still a as And have you do I of curious tangent it's a BTG into base? QX number to the was I kind like small relative business. much And just pipeline helpful, think part to how in but the of Search. a or revenues

Mark Harris

Right? They client their strategy. know in the So a have in sales well-managed similar. backlog. very business. engagements. very pipeline It's They're what's They the a understand they

Executive right them can we and Europe dissimilar in really want business the is take about kind around where least. in and as the a what you're again, of going open be Asia-Pacific number in growth we it my one plus a you of break their here. would We terms So, the much in of little That's HC we of grow at out really all seeing would kind type that now obviously of where to three or too equal the not first very this this to, And guess on our up one I think U.S. again, work much centric or But but We is next. how Search. comment quarter, be guidance. we it's open quarter with see and channel up, expect, strategically, in on-demand really into don't one. really lump business our -- up and with bit

Josh Vogel

doing I in thank the number is is should BTG notes, you. run seen rate about think QX, XXXX? good growth have lastly; about just And Great, we my XX% a off million $XX XXXX, of that based

Mark Harris

it, been say you than that's say, is nice thinking Executive way Yes, we're would we when think think coming I accord it XX% going about very too Search, kind stage, Well, look in has high. kind than better that, with Search. we a as plugged again, into our that you where we're respective say be much. guess, being X% would I of if engine, to don't will, we growth would going year about, growth, into high that terms better third growth, high to expected I to certainly especially talk be growth X%, it's of significantly very, maybe and know, as business of early to a obviously they're etc. long-term I Executive

do so. we XX% think comment would is I ability --pretty a strong you're don't it's can I to growth, obviously, growth, overarching one. my achieve we going target. think But to see lofty think So, pretty be very the that

Josh Vogel

All right, you. for got Well, the for much insights questions. so taking my and thanks

Mark Harris

problem. No

Operator

have question, next our we open. Securities, Sommer Truist your Tobey from is for And Tobey, line

Tobey Sommer

together? coming of up together work catch years just like in you learned curious Thanks. recent and before kind the BTG entered if I because company was seems how us like how remind could partnerships to you it us Thanks. many of into has had

Mark Harris

also really you I call type that revenue we about Yes. externally. in a to if would this something bit become what And little We will different obviously Partnerships look do potential really have adjacency, of partnerships, way. don't a more vendor partnerships, at and partnership disclose again, of it technology lane we of, what share us, what Tobey, we that kind or an third and partnerships etc. call back was stream is partnering probably a we forth. similar it, very think won't are but That part

way methodology. of which goes efficient, it that land they days into it kind again technology, us of in can again more much alignment, complete making partnerships, land can categorize in in we can in XX% of in reduction processing to and So, the either that land terms our kind

So, those we we don't kind the out are we have. how with at types really in of to that want things look many go partnerships. But of our partnerships terms of

hear And So, announce like have than that's with those do the talk to talked BTG, we those we going announced it's we we will you're we ones -- we think concerning we to -- about just them. it. more something and when talk less you partnership, when and get we

Tobey Sommer

you C-suite the if C-suite, seniors or and you what in search Are geographically remote flexible might confirmations are work so now business? in city, sort work your their potentially the could in there people in mean client terms -- Search at implications Could different a seeing a are what top if is of a if not for Executive about business? Okay. least that locations the a talk more of primarily,

Mark Harris

Well, I think that's exactly right.

opened you I place. that. be on in much market is population greater what the to assistance, having a it's think would of if of the in clients probably Heidrick idea say example will, to a set good is a the because I up

York but and in very the think and us and bit a I lot interview to quality be going your sits placements been think Cullen, lack at more working because I probably in Enrolled helping cities travel in the is to very, that Krishnan that's about you have our in in of we lot New are Stanford kind more -- wherever sea be of candidates myself looking get the is a You the of person area, are is, may DC, model of little really where where you're candidates I of headquarter. Mike COO, population the -- is yet, quicker more it world topic, the a in of been not effective different of allows that to actually opens move located, we've also in to up that where less there on needs more companies growing where insistence if more he we've headquarters think the have to locations, you the Boston. up it is of like the important course

that to quite don't bit that's seen we've We're So, see that and continuing slow going trend bit. I down. a quite think to a

Tobey Sommer

upticks Is where recruiting be also a client be? higher because headquarters you a from contributor with if a the to the may of might to a living city cost your market, Thanks. out than it of you're able theoretically recruit

Mark Harris

of had kind It's what it a here's question. I And similar -- a bit gets.

First on the board work, it's kind of irrelevant.

I think you agree with that.

So, CFO where CEO I think, a of that as or or CEO you it's imagine Fortune XXX If of the much it's of just look that that's a again I the than would would we will differential you have more somebody what kind especially Coke, is? right? towards drives not a I as at that On less I'd that's location par competing you're pretty of and both that see in competing resource probably going the XXX Fortune competing against of a dramatic. it's But think They're where right? or CEO use imagine of industry, little for bit much is that that that be where kind the end on versus the that really play it space, agnostic for be going with if potentially role of Ireland. really really Cork, same it? expensive, type and we it's play the Pepsi, to to a most role, of seg Obviously, really part, London what of in would very

price. again, bit, see big difference in real do that's we don't differential of a think I the in, So, but it little terms think a I overall, in

Tobey Sommer

Okay.

with you to growth how to, benchmark do from markets or you able Just what a and seeing? performance the me, couple they're you're exposure in company's that rather have the end to extent communicate competitors more versus the view

Mark Harris

question. just Maybe an the Tobey, example, understand me help

Tobey Sommer

taking share, share losing keeping or based growth rates? Are you your on share

Mark Harris

competing in and of if on we're things market trends, on the the if growth be benchmark on having that you on to we're difficult, terms based jump of as manage have put that we're terms in market, of we And public terms rest highly get seeing, know, I'm very what our of as can. of on seeing I I based actually as it's in, we're in like we know he quite company terms it. are out wins, well. try is to, is in it we definitely Overall, That's kind lot that in some and for I'll there well. Krishnan survey answer that on private Krishnan, metrics want based don't gets always some of suspect we lot we're holding again, really, industry that if other of but but to to is terms measure, directly. you it doing do eyes the and difficult very ourselves know of wants one jump in it's is and you to it, and share, back don't against, the positive only us feel. Krishnan numbers know of specific what can market own will, a in see definitely it. And a I better audible, weight to I the what data that other the without we But

Krishnan Rajagopalan

and able we've our to buildings. entered Good it's to see systems apologies. information see continue on held these to as we Hi, own grab says, Emergency I own our the the, work think Marks that. Sure. last we to last we were in based Fire and held Look, hard -- tracked we more the than this year year

So, we share. excellent on we positive had momentum felt

well. do to we So, continue

think numbers. I the have a So, we're don't in it. good spot yet on We

more, six about a feeling in it. understand to bit that this take so months probably good we'll or but So, business pretty

Tobey Sommer

a or run and are surging whether has those but the to Consulting forward growth Executive the last been the headcount one at what and room that productivity have you Search Thanks. I of grow because the the continued from grow term, And in going you, thinking to know day, how me, about internal company? has you've over and business people to still end long it's got don't

Krishnan Rajagopalan

going gaps continue geographies and and Yes. strategically, Look, that. in we're add been is to what we've very to do our in filling hiring, continue going in areas, which strategic to we're We've practice to actually. done

productivity It's will Heidrick culture going to to at to we fits going heady going and if that time number the to limited now be doing to very is basis, it's look great back that. will So, level. not look be be productivity, just that be $X on to going and a I on back annualize million over it, we're think think if above little XXXX average, I right

continue given feel we as everything to good we productivity well. done, we've So, that drive that can

Tobey Sommer

Thank very you much.

Operator

is line Kevin, have your next open. from we Research. Steinke Kevin the Barrington For question, Instructions] [Operator

Kevin Steinke

Thank afternoon. Good you.

on to over long-term introducing current do you're to to little about needed as clients, you do about go bit about but business meet grow you you have of to how know, I independent the professionals independent term? part scaling the and I or to now it the you your a able, the longer So, network the you're with over the discussion term? BTG and that how growing longer attract your -- you number talent wanted network do just demand continue and need to business, go in that of on-demand that continuing that

Krishnan Rajagopalan

Yes.

as we've with add me want to well. It in asset and fantastic Look, -- a got Let you as well. that in was the at executive always at that the BTG, high to that. talent that we as we've only and a the end to with got And if of start talent Mark think premier grow well. level destination for Heidrick relationship helps we that continue

market as grows continue So, to grow we grow needs place that. and process in And it we well to augment, are -- and a there to as will. is continue the we that

So that isn't the limiter now. right

worried grow not about the asset. will we to we're continue it So, and

Kevin Steinke

area The of other independent an acquisition opportunities? to business? other scale the area further -- potential see Are on-demand this there for that would you Okay, space talent great. as

Krishnan Rajagopalan

to Yes. Look, a that think as BTG just I I is first want job growth. say doing organic great

to not to to two, number that continue look BTG is able to but and know then look augment grow channel ways BTG at look some markets different be in So, Heidrick well. it's Europe. be growth as in open the we'll to to that. I that Europe, clearly to do we in will We, everywhere business to to continue

there be there. opportunities So, could

growth that, opportunities looking at avenues we'll be open many there. job and a like doing for to great are various is other there BTG So, but

Kevin Steinke

sales to Can over get to need those on And the thanks. trying BTG. targeted -- more a to about you expense to of it talk you back term? levels over need business in the and just count? sense to of investment you're bit Is Just just you Okay, that scale I a that marketing you a sort leverage the finally little drive longer margin then, base? guess of the head G&A, cost or internal leverage some office get kind and scale how leveraging that

Mark Harris

again, cost always of the that remember going be Sure. percentage minus. is mean, or plus I to sales that

this going So, is, playing scale should here always in potentially what's left be it, the question And coming we at over. side there's this margin to your minor the with seeing to start where, leadership of improvements sales level but really some in. kind there, again the of above, that's and and you're is answer where start

call let's in double able kind to we it starting As come of is to call. kind margins really of early kind of, in part twofold you you discussed of the those business, where terms be see would of what the

closer So, of a of but to up business, incremental, discussing. going it and those doubling margin getting comment. the move not my to That and for bit it's It's closer overnight. you just for marginal, that that whichever be part it's argument expect we analytics of, of margins you'd will you sustainable were again the again, side of kind sake the kind a will over into be time, as would happen know, it,

Kevin Steinke

of any to we Just XX% of helpful. kind that around about to Okay, mentioned you will quarter? you more color a trend getting XX% target coming Should think think that's And revenues. it great, as closer Mark, G&A longer-term or this where that.

Mark Harris

people make even And that. to into that understood job, been dollar number the wanted at on cutting saw a line. I I just X.X%, revenue though a a of Yes. did when we've mean top it a gross I of sure is on heck value, we heck one was that

So, the last at in as good really rebalancing strategy as expectation. well done shift think kind maintaining ourselves at etc., a of we've job did the we year, estate real reasonable a that I

a well components, coming we the bit back mills think little as other would and that for XX%. as at will I will travel don't a makes that's -- bit the and better occupancy XX, go reason services me potentially of into look, than it is up come and a back last heck lot at when peak the professional people and hold mix some little costs. when it hopefully kind the as it's I XX most a Those to people start year part is costs, expense and mean, of of more our time understood expect

when revenue XX% function know, think XX%, about do is in really too holding objective. that that I of an kind So, too. we're a all as well, you But talking is of

this sure eager long So, that's like is, out. the maintaining market revenue is part find us, problem level that of all and have to the maintained, we're The no at I'm if that. question this we really would

Kevin Steinke

lastly; what just the Okay, some you thanks. to you reference for the drivers That's elongated your demand to And in future think prepared comments, Krishnan, potential -- of made helpful. I believe cycles, you then, what just mentioned a I market seeing. the future of maybe being and related market that you're meant lasting or demand terms elongated terms or drivers expand you by you're you're of cycle in upon Can longer about thinking seeing maybe just a now? in right

Kevin Steinke

absolutely. Yes,

talking I we as and things business that lot influencing Okay. are was think society about are the our economic opposed simply shaping well thematic of a cycles. as to

two cycles. journey to I as you while at if see continue a look examples. that a outside for of that's So, economic we give going you purely DE&I, mean

to what's happen starting with at see we're continue. you going ESG, side, look sustainability If that to

ago, as years actually We are started several which seeing digital transformation, continues well.

the well impacting a cycles, scenario. and a was I our are was themes that referring outside bit as in I talking positive that macro when traditional driving what is elongated to about GDP this So, business really way of go

Kevin Steinke

That's thanks. taking the Okay, appreciate commentary. you helpful questions. I

Mark Harris

Thank problem. No you.

Operator

for the further turn like comments. back no questions over to I to call would are closing this time, at There Krishnan

Krishnan Rajagopalan

and you joining you thank everyone thank for Great, the call.

of acknowledging close ahead times all great are somewhat me still These uncertain Let for just work by us. the of team. our

We universally rollouts yet. recognize some news not are positive encouraged progress that see with in but places, by also vaccine we that it's

also done not things performance. for clients, effort and also business but team taking focused hard in a on I think of care transform remain we've us our our to we control, global is focused for particularly as and can in has that putting incredible on team only off, job paying clients the our our been

today & we Struggles. of in and to for up a week thanks your great all Have So, and catching Heidrick soon. you look with interest you participating you. forward again Thank

Operator

This all for Thank concludes participating. conference you today's call.

now may You disconnect.

Heidrick & Struggles International (HSII) 27 Jul 212021 Q2 Earnings call transcript