Heidrick & Struggles International Inc (HSII) 2024 Q3 法說會逐字稿

Ladies and gentlemen, good afternoon and thank you for standing by. My name is Abby and I will be your conference operator today. At this time, I would like to welcome everyone to the Heidrick & Struggles International Third Quarter 2024 Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions)

女士們、先生們，下午好，謝謝你們的支持。我叫艾比，今天我將擔任你們的會議操作員。此時此刻，我謹歡迎大家參加海德思哲國際 2024 年第三季電話會議。所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節。（操作員說明）

Thank you. I would now like to turn the conference over to Suzanne Rosenberg, Investor Relations. You may begin.

謝謝。我現在想將會議交給投資者關係部門的蘇珊羅森伯格 (Suzanne Rosenberg)。你可以開始了。

Thank you and welcome to our 2024 3rd quarter conference call. Joining me today are our CEO Tom Monahan and Vice President and Controller Steve Bondi.

感謝並歡迎參加我們的 2024 年第三季電話會議。今天與我一起出席的是我們的執行長湯姆·莫納漢 (Tom Monahan) 和副總裁兼財務總監史蒂夫·邦迪 (Steve Bondi)。

We posted our accompanying slides on the IR homepage of our website at hydrid.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.

我們在 Hydrid.com 網站的 IR 主頁上發布了隨附的幻燈片，我們鼓勵您查看這些幻燈片以了解更多背景資訊。請注意，在今天提供的資料中，我們可能會參考非公認會計原則財務指標，我們認為這些指標可以提供對基本結果的更多了解。

Reconciliations 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 included in today's press release. With that, Tom, I'll turn the call over to you.

這些非公認會計原則財務指標與最具可比性的公認會計原則指標之間的調節可以在收益新聞稿中找到。此外，在我們的言論中，我們可能會做出某些前瞻性陳述。我們請您參閱今天新聞稿中包含的安全港語言。湯姆，我會把電話轉給你。

Thank you, Suzanne, and welcome to everyone joining on our earnings call today. I'm pleased to share that Heidrick & Struggles delivered a solid performance in the third quarter. A testament to our ongoing commitment to creating unrivaled value for our clients.

謝謝蘇珊娜，並歡迎大家參加我們今天的財報電話會議。我很高興地告訴大家，海德思哲在第三季取得了穩健的表現。這證明了我們持續致力於為客戶創造無與倫比的價值。

This client focus is especially notable given that we are continuing to drive leadership changes within our organization. Our new leadership team has done an excellent job of keeping our colleagues around the world focused on market opportunities and client needs as we more tightly target our solutions and prioritize scalability and profitability.

鑑於我們正在繼續推動組織內的領導層變革，這種對客戶的關注尤其值得注意。我們的新領導團隊做得非常出色，讓我們世界各地的同事專注於市場機會和客戶需求，因為我們更加緊密地瞄準我們的解決方案並優先考慮可擴展性和盈利能力。

While we still have much work to do, we saw some early returns from the important steps we took in the second quarter to position the company for growth and impact.

雖然我們還有很多工作要做，但我們在第二季度為公司的成長和影響力定位所採取的重要步驟中看到了一些早期回報。

We anticipate that Heidrick's near and mid-term growth will come from our ability to clarify what we do for clients, simplify, work for our people and amplify our message in the marketplace. Our leadership team is confident the steps we are taking will enable us to create substantial value for our clients, our colleagues and our fellow shareholders.

我們預計海德思哲的近期和中期成長將來自於我們澄清我們為客戶所做的事情、簡化工作、為我們的員工工作以及擴大我們在市場上的信息的能力。我們的領導團隊相信我們正在採取的步驟將使我們能夠為我們的客戶、我們的同事和我們的股東創造巨大的價值。

Today I'll provide a brief overview of our third quarter results. Share examples of how our approach is delivering tangible value for clients and outline our strategic priorities. After that, I'll hand over to Steve for a more in depth, look at our Q3 results and then we'll open the call for Q&A.

今天，我將簡要概述我們第三季的業績。分享我們的方法如何為客戶提供有形價值的範例，並概述我們的策略重點。之後，我將交給史蒂夫進行更深入的了解，看看我們第三季的結果，然後我們將開始問答環節。

Lastly as our Investor Day approaches, we look forward to seeing many of you on December 3rd, when we'll dive deeper into the important initiatives we're pursuing to drive value for both our clients and our investors. Let me start with a quick overview of our third quarter performance before Steve provides more detail. While we operate in a complex world, our business remains strong. Thanks to our team's exceptional work and staying close and relevant to our clients.

最後，隨著投資者日的臨近，我們期待在 12 月 3 日見到你們，屆時我們將更深入地探討我們正在追求的為客戶和投資者創造價值的重要舉措。在史蒂夫提供更多細節之前，讓我先快速概述一下我們第三季的業績。儘管我們在一個複雜的世界中運營，但我們的業務仍然強勁。感謝我們團隊的出色工作以及與客戶保持密切聯繫。

Our top line performance came in at the high end of our outlook with contributions from all areas of our business. Our core executive search business delivered excellent results driven by strong performances in the Americas and Asia Pacific regions. We also believe that the environment in Europe is beginning to stabilize.

在我們業務各個領域的貢獻下，我們的營收業績達到了我們預期的最高水準。在美洲和亞太地區的強勁表現的推動下，我們的核心獵頭業務取得了優異的業績。我們也認為歐洲的環境正在開始穩定。

Our on-demand talent business achieved solid growth despite the ongoing slowdown in the broader temporary staffing space, highlighting our unique position in attractive market segments. Heidrick's consulting gains were accompanied by strong confirmation increases. Just as important. Our third quarter top line growth translated into so well, it adjusted even EBITDA performance, although of course, we see room for continued improvement here and have urgent focus on making that happen.

儘管臨時招聘領域持續放緩，我們的按需人才業務仍實現了穩健成長，凸顯了我們在有吸引力的細分市場中的獨特地位。海德思哲諮詢業務的成長伴隨著確認函的強勁成長。同樣重要。我們第三季的營收成長轉化得非常好，甚至調整了 EBITDA 業績，當然，我們看到這裡還有持續改善的空間，並且迫切關注實現這一目標。

You may notice a shift in how we discuss our results as we place greater emphasis on highlighting organic performance. We have assembled unique capabilities to help our clients and now we need to work to bring them to life with this rich array of capabilities. Our leadership is focused on driving client impact to organic growth at market and client level.

您可能會注意到我們討論結果的方式發生了變化，因為我們更加重視突出有機績效。我們已經整合了獨特的功能來幫助我們的客戶，現在我們需要努力利用這些豐富的功能將它們變為現實。我們的領導力專注於推動客戶影響力，從而實現市場和客戶層面的有機成長。

Going forward, we will of course be willing and able to add new capabilities through select acquisitions. But given the strength of the assets we've already acquired, this needs to be. In addition to great execution on our organic growth opportunity.

展望未來，我們當然願意並且能夠透過選擇性收購來增加新功能。但考慮到我們已經獲得的資產的實力，這是必須的。除了對我們的有機成長機會的出色執行之外。

As you can see in the third quarter, we achieved revenue growth of 6% and on a year-to-date basis, organic revenue growth was 5%. Despite continued caution in some segments of the marketplace, this speaks to the power of our unique assets and the skill of our teams in shaping and responding to client need.

正如您在第三季度看到的，我們實現了 6% 的收入成長，而年初至今，有機收入成長了 5%。儘管市場的某些領域仍然保持謹慎態度，但這證明了我們獨特資產的力量以及我們團隊在塑造和回應客戶需求方面的技能。

We know that the most critical factor in driving corporate and organizational performance is having the right leaders in the right place and this presents an ever-expanding addressable market, of course, cycles and shifts in the macroeconomic environment are inevitable, but there will always be a significant market opportunity for the essential leadership advisory work. We provide this vast opportunity to support our clients combined with our strong positioning is super exciting and prepares us well for continued success.

我們知道，推動企業和組織績效的最關鍵因素是在正確的位置擁有正確的領導者，這代表著一個不斷擴大的潛在市場，當然，宏觀經濟環境的週期和變化是不可避免的，但總會有重要的領導力諮詢工作的重要市場機會。我們提供這個巨大的機會來支持我們的客戶，再加上我們強大的定位，這非常令人興奮，並為我們的持續成功做好了充分的準備。

With our world-class professional colleagues supported by our distinctive brand, powerful technology and valuable intellectual property. We have a strong platform to grow and scale and impact to accomplish this. We've set three strategic priorities, each of which are centered on building a differentiated, deep and durable client relationships.

我們擁有世界一流的專業同事，並以我們獨特的品牌、強大的技術和寶貴的智慧財產權為支持。我們擁有強大的平台來發展、擴大規模並發揮影響力來實現這一目標。我們設定了三個策略重點，每個策略重點都以建立差異化、深入和持久的客戶關係為中心。

First, to be the most trusted leadership partner to the C-suite and Board. Even in the rarefied air of top search firms, we believe that our focus on leadership talent differentiates us. We remain committed to consistently growing our executive search and assessment capabilities, which are the cornerstone of our enterprise.

首先，成為最高管理階層和董事會最值得信賴的領導夥伴。即使在頂級獵人頭公司的稀缺環境中，我們也相信，對領導人才的關注使我們與眾不同。我們仍然致力於不斷增強我們的高階主管搜尋和評估能力，這是我們企業的基石。

It's clear from our search results that we are deeply engaged in helping the world's most talent centered organizations drive impact by finding and elevating great leaders. This work not only immediately reflects client performance but also gives unmatched access to leaders and their priorities allowing us to build valuable insights and data sets.

從我們的搜尋結果可以清楚地看出，我們致力於透過尋找和提拔優秀領導者來幫助世界上最以人才為中心的組織發揮影響力。這項工作不僅可以立即反映客戶的績效，還可以提供無與倫比的接觸領導者及其優先事項的機會，使我們能夠建立有價值的見解和數據集。

Take, for example, recent research from our Board and CEO practice about the importance of testing would be C-suite leaders self-awareness. It began with the pattern recognition from our leaders in the field was validated by our assessment base of leadership performance and now informs both our search work and points to opportunities in our coaching and leadership development offers.

舉例來說，我們的董事會和執行長實踐最近研究了測試的重要性，即高階管理層領導者的自我意識。它始於我們在該領域的領導者的模式認可，並通過我們的領導力績效評估基礎進行了驗證，現在為我們的搜索工作提供信息，並為我們的輔導和領導力發展提供機會。

Spoiler alert, only 13% of leaders currently show this trait, the good news however is people can develop it and we can help clients both find people with this trait and shape this as part of people's leadership journeys. This rich intellectual property and deep and growing data asset also allows us to better arm our elite teams with the most effective tools to do their job.

劇透警告，目前只有13% 的領導者表現出這種特質，但好消息是人們可以培養這種特質，我們可以幫助客戶找到具有這種特質的人，並將其塑造為人們領導力旅程的一部分。這種豐富的智慧財產權和深入且不斷增長的數據資產也使我們能夠更好地為我們的精英團隊配備最有效的工具來完成他們的工作。

We have launched a couple of new tools on our OneSearch platform that enable our teams to do an even better job of partnering with our clients. We look forward to showing you some of these recent innovations in our upcoming Investor Day.

我們在 OneSearch 平台上推出了一些新工具，使我們的團隊能夠更好地與客戶合作。我們期待在即將到來的投資者日向您展示一些最新的創新成果。

Our second priority is to help clients lead transformation in the new world of leadership. Our richer set of capabilities in the hands of our thoughtful partners and advisers creates the opportunity to build larger deeper client relationships.

我們的第二要務是幫助客戶在新的領導世界中引領轉型。我們深思熟慮的合作夥伴和顧問手中擁有更豐富的能力，為建立更廣泛、更深入的客戶關係創造了機會。

We know that once we place or elevate a new leader, our work is just beginning. Each leader has a mandate to transform the performance of his or her organization. Our capabilities are often vital to that objective.

我們知道，一旦任命或提拔新領導者，我們的工作才剛開始。每個領導者都有責任改變組織的績效。我們的能力對於實現這一目標往往至關重要。

No matter what the end point of the transformation is could be margin improvement, digital transformation, faster growth, better agility, etcetera. A leader must always ask whether they have the right leaders around them, the right skills for the immediate term and the right ways of leading and performing as a team and as an organization.

無論轉型的終點是什麼，都可能是利潤率提高、數位轉型、更快的成長、更好的敏捷性等等。領導者必須始終詢問周圍是否有合適的領導者、短期內的合適技能以及作為團隊和組織的領導和執行的正確方法。

And we have lined up the resources to help them from assessing and where necessary augmenting their team through new talent to driving permanent changes to performance, through cultural change. We can meet them where they are and partner with them to get where they need to be.

我們已經安排了資源，幫助他們評估並在必要時透過新人才增強團隊，並透過文化變革推動績效的永久性改變。我們可以在他們所在的地方與他們會面，並與他們合作，到達他們需要去的地方。

The most obvious example right now is the ongoing effort to use AI to change work itself. As documented by our technology analytics and AI practice, nearly a third of clients surveyed have now installed an exec with this remit as a direct report to the CEO. And more broadly, we see this movement reshaping the roles and organizational structures around the C-suite from finance to HR to the supply chain.

目前最明顯的例子是利用人工智慧改變工作本身的持續努力。正如我們的技術分析和人工智慧實踐所記錄的那樣，近三分之一的受訪客戶現在已任命一名高階主管，其職責是直接向執行長報告。更廣泛地說，我們看到這項運動重塑了從財務到人力資源再到供應鏈的高階主管的角色和組織結構。

And with these new roles and skills come new ways of working and urgent gaps in capability, all of which are on demand and consulting offers can help shape. The broader point is that in this era, every client everywhere has a mandate to change and every client everywhere is confronting a change market for the talent to lead that change. It's our job to grow larger and more impactful client relationships by linking our work to ambitious client goals.

這些新角色和技能帶來了新的工作方式和緊迫的能力差距，所有這些都是按需提供的，而諮詢服務可以幫助塑造這些問題。更廣泛的一點是，在這個時代，世界各地的每個客戶都有變革的使命，世界各地的每個客戶都面臨著一個變革市場，需要人才來引領變革。我們的工作是將我們的工作與雄心勃勃的客戶目標連結起來，發展更大、更有影響力的客戶關係。

The great thing about this business attribute is that every economic and or paradigm shift, whether it's AI advancement M&A waves IPO cycles and beyond creates a need for new leaders and innovative new leadership approaches. These long term secular tailwinds are likely to keep expanding. Simply put when we execute effectively change plays to our strengths.

這種商業屬性的偉大之處在於，每一次經濟和/或範式轉變，無論是人工智慧進步、併購、IPO週期或其他，都需要新的領導者和創新的新領導方法。這些長期的長期順風可能會持續擴大。簡言之，當我們有效地執行改變時，就能發揮我們的優勢。

Our third priority is innovating to create continuous engagement with our clients. In our work with CEOs and Chief People officers, we continue to see an important theme emerging. Leadership and talent decisions are becoming an always-on activity, rather than waiting for retirement or a crisis to bring our teams in. Clients are asking us to partner with them to shape their leadership pipelines year in and year out.

我們的第三個優先事項是創新，與客戶建立持續的互動。在我們與執行長和首席人力官的合作中，我們不斷看到一個重要的主題正在出現。領導力和人才決策正在成為一項永遠持續的活動，而不是等待退休或危機來讓我們的團隊加入。客戶要求我們與他們合作，年復一年地塑造他們的領導梯隊。

This shouldn't be surprising. Many companies now talk openly in their 10-Ks or annual reports about leadership and critical talent being a key risk or opportunity for their business. And yet historically, the process for managing this risk has lacked consistency and rigor.

這並不奇怪。許多公司現在在 10-K 或年度報告中公開談論領導力和關鍵人才是其業務的關鍵風險或機會。但從歷史上看，管理這項風險的流程缺乏一致性和嚴格性。

This is obviously a great opportunity for us to develop larger and stickier relationships with clients. We turn this work, leadership assurance, knowing that companies face an urgent need to bring the same consistency, insight and rigor to leadership questions. As they do to say, financial reporting.

這顯然是我們與客戶建立更廣泛、更牢固的關係的絕佳機會。我們將這項工作轉向領導力保證，因為我們知道公司迫切需要為領導力議題提供相同的一致性、洞察力和嚴謹性。正如他們所說，財務報告。

Doing this well requires a different level of scale as rather than just assessing three finalists for an immediate CEO role. We now need to look at pipelines of dozens of high performing leaders to understand not only who can be CEO today but also who can be in the C-suite a decade from now.

要做好這一點，需要不同程度的規模，而不僅僅是評估三名決賽入圍者，以擔任直接執行長的角色。我們現在需要研究數十位高績效領導者的後備人才梯隊，不僅了解誰可以擔任今天的首席執行官，還了解誰可以在十年後擔任最高管理層。

Here's a recent example from our work, a major technology company partnered with us to recruit an exceptional external candidate to CEO. After working with us to evaluate both internal and external candidates. The new CEO told their team almost immediately that succession planning was everyday business and they set in motion an ongoing process through which we are partnering with them to continually assess the top team, advise on how best to organize and work, evaluate the team against best in class rivals and make selective additions to key external hires.

這是我們最近工作中的一個例子，一家大型科技公司與我們合作，招募一位優秀的外部執行長候選人。與我們合作評估內部和外部候選人後。新任執行長幾乎立即告訴他們的團隊，繼任計畫是日常事務，他們啟動了一個持續的流程，透過這個流程，我們與他們合作，不斷評估高層團隊，就如何最好地組織和工作提出建議，根據最佳團隊評估團隊與同類競爭對手競爭，並選擇性地增加關鍵的外部員工。

The next step is helping them find ways to bring technology and AI to scale the process even further. We don't expect every company to change how they work overnight, but we also can't imagine a world in which a topic as important as top of the house leadership will be an afterthought in ongoing corporate management.

下一步是幫助他們找到利用科技和人工智慧進一步擴展流程的方法。我們並不期望每家公司都能在一夜之間改變他們的工作方式，但我們也無法想像一個世界，在這個世界中，像最高層領導力這樣重要的話題將成為持續的企業管理中的事後想法。

The fourth part of our strategy is not a pillar but a foundation and that's Heidrick's talent at the core of these strategic pillars lies a strong commitment to fostering a culture of inclusion, collaboration and excellence. To that end, Tom Murray and I believe that our primary responsibility as leaders is to make HDRI a place where top talent can thrive and achieve their best work.

我們策略的第四部分不是支柱而是基礎，海德思哲的人才是這些策略支柱的核心，在於對培養包容、協作和卓越文化的堅定承諾。為此，湯姆·莫瑞和我相信，作為領導者，我們的首要責任是使 HDRI 成為頂尖人才得以茁壯成長並實現最佳工作的場所。

This applies not only to our existing teams but to great talent that wants to help us impact corporate performance globally by getting the right leaders into the right roles leading in the right way. This may be hard to believe given our reach and scale. But we still see opportunities to bring top talent into Heidrick to accelerate our growth and impact in search assessment and beyond. We'll share a little more about our targets for organic growth at Investor day.

這不僅適用於我們現有的團隊，也適用於那些希望透過讓合適的領導者擔任正確的角色並以正確的方式領導來幫助我們影響全球企業績效的優秀人才。考慮到我們的影響力和規模，這可能很難相信。但我們仍然看到將頂尖人才引入海德思哲的機會，以加速我們在搜尋評估及其他領域的發展和影響。我們將在投資者日分享更多有關有機成長目標的資訊。

In conclusion, we've made early progress, positioning us for the next phase of sustained organic growth and margin expansion with a vast market opportunity ahead, we are supported by a strong and experienced leadership team, solid momentum and the financial flexibility to innovate against client needs and attract great people. This combined with discipline execution will enable us to continue driving organic growth, expanding profitability and enhancing long term shareholder value.

總之，我們已經取得了早期進展，為下一階段的持續有機成長和利潤擴張奠定了基礎，未來廣闊的市場機遇，我們得到了強大且經驗豐富的領導團隊、堅實的動力和創新的財務靈活性的支援。這與紀律執行相結合將使我們能夠繼續推動有機成長，擴大獲利能力並提高長期股東價值。

Before I turn the call over to Steve, I would like to extend a warm welcome to both Vijaya Kaza and Tim Carter who joined our company's Board of Directors at the end of September. Vijaya brings deep expertise in digital products, user experience and cyber security. While Tim's impressive track record and value creation within public advisory businesses will strengthen our board's capabilities.

在將電話轉給 Steve 之前，我謹對 Vijaya Kaza 和 Tim Carter 於 9 月底加入我們公司董事會表示熱烈歡迎。Vijaya 帶來了數位產品、使用者體驗和網路安全方面深厚的專業知識。蒂姆在公共諮詢業務中令人印象深刻的業績記錄和價值創造將增強我們董事會的能力。

Notably, Tim's Public Company CFO experience adds an additional level of financial expertise to guide our strategic decisions as we continue to innovate and grow with that. I'll now hand the call over to Steve to provide a detailed review of our financial performance and outlook.

值得注意的是，蒂姆的上市公司財務長經驗增加了額外的財務專業知識，以指導我們的策略決策，因為我們不斷創新和發展。我現在將把電話轉交給史蒂夫，詳細審查我們的財務表現和前景。

Thank you, Tom and welcome, everyone joining us on the call. Today, I will provide you with a review of our third quarter results with organic revenue growth that came in at the high end of our guidance along with a solid adjusted even up performance in the quarter.

謝謝湯姆，歡迎大家加入我們的電話會議。今天，我將向您回顧我們第三季的業績，其中有機收入成長達到了我們指導的高端，並且該季度的調整後業績穩定成長。

Looking at our performance, it's on a consolidated basis, third quarter revenue was $279 million or 6% above third quarter 2023 results driven by each of our businesses. Adjusted EBITDA of $30.4 million compares to $29.3 million in the third quarter of 2023, and adjusted EBITDA margin was 10.9% compared to 11.2% last year.

從我們的業績來看，在合併的基礎上，第三季營收為 2.79 億美元，比 2023 年第三季由我們各項業務推動的業績高出 6%。調整後 EBITDA 為 3,040 萬美元，而 2023 年第三季為 2,930 萬美元，調整後 EBITDA 利潤率為 10.9%，而去年為 11.2%。

Now let's turn to each of our businesses for further details. In executive search revenue grew 3% to $204 million. Looking at our regional performance compared to the prior year quarter, we saw revenue increases in the Americas and Asia Pacific of 1.7% and 22% respectively. Europe was down 3.3% or 5% on a constant currency basis. Given the operating environment we commented on in the previous quarter.

現在讓我們轉向我們的每項業務以了解更多詳細資訊。高階主管獵人頭收入成長 3%，達到 2.04 億美元。與去年同期相比，我們的區域業績顯示，美洲和亞太地區的營收分別成長了 1.7% 和 22%。歐洲下跌 3.3%，以固定匯率計算則下跌 5%。鑑於我們在上一季評論的營運環境。

As we have a diversified practice platform with great client engagement. During the third quarter, we saw out performance by the Healthcare and Life Sciences, Global Technology and Services and the social impact practice groups. We also saw consultant productivity analyzed in the third quarter at $2 million compared to $1.9 million on the same basis in the year ago quarter, which continues to be within the longer term range of $1 million to $2 million we have commented on previously, we were also very pleased with executive search, maintaining strong profitability with a just a EBITDA of $50.7 million and a margin of 24.8%.

因為我們擁有多元化的實踐平台和良好的客戶參與度。在第三季度，我們看到了醫療保健和生命科學、全球技術和服務以及社會影響實踐小組的表現。我們也看到第三季顧問生產力分析為 200 萬美元，而去年同期為 190 萬美元，這仍然在我們之前評論過的 100 萬至 200 萬美元的長期範圍內，我們對獵頭業務也非常滿意，維持了強勁的獲利能力，EBITDA 僅為5,070 萬美元，利潤率為24.8%。

Turning down On-Demand talent revenue was $46 million, up 13% compared to third quarter, 2023. While we offer a variety of products with On-Demand Talent, we are especially pleased with our top line performance in this business and in the current market dynamics in the temporary staffing space. We saw increases in average contract values reflecting longer duration projects along with an increased number of extensions with higher extension values.

拒絕按需人才收入為 4,600 萬美元，比 2023 年第三季成長 13%。雖然我們提供各種按需人才產品，但我們對我們在該業務以及當前臨時人員配置領域的市場動態中的頂線表現感到特別滿意。我們看到平均合約價值的增加反映了專案持續時間更長以及延期數量增加和延期價值更高。

On-Demand Talent generated adjusted EBITDA of $1.8 million versus a loss of $0.6 million in the prior year quarter. With a new leader and plan in place, we have streamlined the business and make changes to the model to improve operating efficiency while fostering innovation in our products and services. As we pivot and accelerate growth.

On-Demand Talent 調整後 EBITDA 為 180 萬美元，而去年同期虧損 60 萬美元。隨著新的領導者和計劃的到位，我們精簡了業務並改變了模式，以提高營運效率，同時促進產品和服務的創新。當我們轉向並加速成長。

Our results demonstrate that On-Demand Talent is a valuable complement to our robust search business providing clients with essential talent and executives. As we simultaneously work on their long term placements, we see significant opportunities to continue growing this business which addresses an urgent client need and enhances our ability to serve clients comprehensively.

我們的結果表明，按需人才是對我們強大的搜尋業務的寶貴補充，為客戶提供必要的人才和高階主管。當我們同時致力於他們的長期安置時，我們看到了繼續發展這項業務的重大機會，這可以滿足客戶的迫切需求並增強我們為客戶提供全面服務的能力。

Looking at Heidrick consulting, we saw third quarter organic revenue increased 20% year-over-year to $27.9 million driven by increases in leadership assessment and development engagements along with purpose driven change solutions adjusted even a loss narrowed to $1 million versus a loss of $2.4 million. In the third quarter of 2023. We also delivered a 45% increase in confirmations from the year ago period and the number of consultants decreased $84 from $90.

從海德思哲顧問公司的情況來看，我們看到第三季的有機收入年增20%，達到2,790 萬美元，這得益於領導力評估和開發活動的增加，以及目標驅動的變革解決方案的調整，即使虧損從虧損2.4 美元收窄至100 萬美元。2023年第三季。我們的確認數量比去年同期增加了 45%，顧問數量從 90 美元減少了 84 美元。

Now, with the new leadership in place, Heidrick consulting is focused on its core strengths as we refine and simplify our solutions. While we are encouraged by our progress toward profitability, we know there is much work ahead.

現在，隨著新領導層的就位，海德思哲諮詢將專注於其核心優勢，以完善和簡化我們的解決方案。雖然我們對盈利方面取得的進展感到鼓舞，但我們知道前面還有很多工作要做。

Importantly, our new leadership team is clarity and conviction on this business is road map to profitability to accomplish our goals. We will concentrate our efforts on the most strategic elements of our offer portfolio and continue scaling them successfully.

重要的是，我們的新領導團隊對這項業務的清晰和信念是實現我們目標的獲利路線圖。我們將把精力集中在我們的產品組合中最具戰略意義的要素上，並繼續成功地擴展它們。

Turning to operating expenses. Salaries and benefits increased 9.5% from the prior year quarter. Fixed compensation increased $9.9 million in the third quarter of 2024. Primarily reflecting increases in expenses related to the non-cash mark to market adjustments associated with our deferred and stock compensation plans.

轉向營運費用。薪資和福利比去年同期成長 9.5%。2024 年第三季固定薪資增加 990 萬美元。主要反映了與我們的遞延薪酬和股票薪酬計劃相關的非現金市場調整相關費用的增加。

Variable compensation increased $5.9 million due to an increase in consulting production as a percentage of net revenue sellers and benefits was 65.7% versus 63.5% in the year ago period. General and administrative expenses increased $2.2 million versus the year ago period to $39.7 million. As a percentage of net revenue. General and administrative expenses were 14.3% which was left with the third quarter of 2023.

由於諮詢產出佔銷售人員淨收入的百分比增加，可​​變薪酬增加了 590 萬美元，而收益則從去年同期的 63.5% 增至 65.7%。一般及行政費用較去年同期增加 220 萬美元，達到 3,970 萬美元。佔淨收入的百分比。2023 年第三季的一般及管理費用為 14.3%。

The increase in dollars versus the year ago period is primarily due to bad debt office occupancy cost expenses related information technology and business development travel. Over the long term as the business grows and scales and we get more shared capabilities, G&A is an ongoing source of leverage in our operating model.

與去年同期相比，美元增加主要是由於與資訊科技和業務發展旅行相關的壞帳辦公室佔用成本費用。從長遠來看，隨著業務的成長和規模擴大以及我們獲得更多共享能力，G＆A 是我們營運模式中持續的槓桿來源。

With respect to R&D, as you've seen, we continue to invest in the future of Heidrick at the core of this investment are technology platforms and IP that power all our businesses including search hydric consulting in our digital product portfolio. R&D spend for the third quarter was $5.7 million or 2% of net revenue essentially flat. With the third quarter of 2023 for the full year, we continue to expect R&D to be approximately $25 million.

在研發方面，正如您所看到的，我們繼續投資海德思哲的未來，這項投資的核心是技術平台和智慧財產權，為我們所有業務提供動力，包括我們數位產品組合中的搜尋液壓諮詢。第三季的研發支出為 570 萬美元，佔淨收入的 2%，基本上持平。截至 2023 年第三季全年，我們繼續預計研發費用約為 2,500 萬美元。

Moving on to the bottom line, profitability adjusted net income for the quarter was $15.1 million and adjusted diluted EPS was $0.72, which compares to adjusted net income of $15 million and adjusted diluted EPS of $0.73 in the same quarter last year. The 2024 third quarter effective tax rate was positively impacted by a decrease in the company's estimated annual effective tax rate.

說到利潤，本季調整後淨利潤為 1,510 萬美元，調整後稀釋每股收益為 0.72 美元，而去年同期調整後淨利潤為 1,500 萬美元，調整後稀釋每股收益為 0.73 美元。2024年第三季有效稅率受到公司預計年度有效稅率下降的正面影響。

As a reminder, moving forward, we expect our tax rate in 2024 and 2025 to temporarily be around 38% driven by the non-deductibility of acquisition earn our cost. However, once these acquisition costs run off, we expect our tax rate to be back in a low 30% range assuming no other statutory tax changes.

提醒一下，展望未來，由於收購收入不可扣除，我們預計 2024 年和 2025 年的稅率將暫時維持在 38% 左右。然而，一旦這些收購成本消失，假設沒有其他法定稅收變化，我們預計我們的稅率將回到 30% 的低水平。

Now I'll turn to the balance sheet. We ended the third quarter with a strong cash position of $409 million, up $112 million from the end of June 2024 and up $75 million from September 2023. The year-over-year improvement was mainly driven by payments for earn outs and acquisitions which we did not have this year as we've discussed before. Our cash position typically builds through the year as employee bonuses are accrued, employee bonuses are paid out in the first quarter along with their associated tax and related cost.

現在我將轉向資產負債表。截至第三季末，我們的現金部位為 4.09 億美元，比 2024 年 6 月底增加了 1.12 億美元，比 2023 年 9 月增加了 7,500 萬美元。同比改善主要是由盈利和收購付款推動的，正如我們之前討論的，今年我們沒有這樣做。我們的現金部位通常會隨著員工獎金的累積而全年不斷增加，員工獎金及其相關稅收和相關成本在第一季度支付。

Our strong cash position with no debt along with our $275 million accordion credit facility or over $0.5billion dollars as a liquidity gives us great strength and flexibility to execute our strategic plan and return capital to our shareholders. Moving forward. While there is some uncertainty in global markets, we continue to see good demand signals and strong fundamentals across our businesses. Therefore, we expect the fourth quarter to be strong compared to last year allowing us to finish a third consecutive year north of $1 billion in revenue that said according to our fourth quarter, 2024 revenue guidance, we expect a range between 255 and $275 million.

我們強大的無債務現金狀況，加上 2.75 億美元的手風琴信貸額度或超過 5 億美元的流動資金，使我們有強大的實力和靈活性來執行我們的戰略計劃並向股東返還資本。繼續前進。儘管全球市場存在一些不確定性，但我們仍然看到良好的需求訊號和強勁的業務基本面。因此，我們預計第四季度將比去年強勁，使我們能夠連續第三年實現收入超過 10 億美元，根據我們的 2024 年第四季度收入指導，我們預計收入範圍在 255 至 2.75 億美元之間。

In conclusion, we delivered a solid performance in the third quarter with good organic revenue growth. We are particularly encouraged by the ongoing progress we are making as we build and enhance our portfolio of solutions that meets urgent client needs while amplifying our impact and search. With that operator, If you could please open the lines, Tom and I would be happy to take questions.

總之，我們在第三季取得了穩健的業績，有機收入成長良好。我們對不斷取得的進展感到特別鼓舞，因為我們建立和增強了解決方案組合，以滿足客戶的緊急需求，同時擴大了我們的影響力和搜尋範圍。對於那位接線生，如果您可以接通電話，湯姆和我將很樂意回答問題。

And we would now like to begin the question and answer session. (Operator Instructions) And your first question comes from the line of Toby Sommer with Truist Bank. Your line

現在我們要開始問答環節。（操作員說明）您的第一個問題來自 Truist Bank 的 Toby Sommer。你的線路

Thank you. I wanted to ask a question about executive search. Based on the confirmation data you have in your slide deck, it looks like confirmation is still down just to ever such a touch sequentially. Is, is it fair to describe the market is mostly driven by fee growth in, in not volume, at least in recent months. And I'm curious how October shaped up in the face of the US election. Thanks.

謝謝。我想問一個關於獵人頭的問題。根據幻燈片中的確認數據，看起來確認仍然是按順序進行的。公平地說，至少最近幾個月，市場主要是由費用成長驅動的，而不是數量成長。我很好奇面對美國大選，十月的情況如何。謝謝。

So you want to take the first part of that and I'll take the second part.

所以你想聽第一部分，我來聽第二部分。

I think confirmation growth is still strong. We're seeing if a quarter, over quarter in prior years, we're seeing strong growth in Asia Pacific and Americas. Sequentially, it's about flat October though, really strong. So, the October confirmations, both in search and HC were strong,

我認為確認成長仍然強勁。我們正在觀察亞太地區和美洲的季度是否比前幾年的季度強勁成長。接下來，十月的表現基本上持平，但非常強勁。因此，10 月的搜尋和 HC 方面的確認都很強勁，

Like any business services company we've been watching this period because see if client decisions freeze up, etcetera. And say we've seen that happen yet. I think part of it is two things. Number one, we now are in an era of permanent complexity. So clients are getting used to operating in this environment. And then second, but what we do is not discretionary in search, people need, if they need a key executive, they got a key GAAP, they need to drive they need our help to go get that done. So we have not seen any uncertainty, economy driving client decision-making at this time.

像任何商業服務公司一樣，我們一直在關注這段時期，因為看看客戶決策是否凍結等等。並說我們已經看到這種情況發生了。我認為其中有兩件事。第一，我們現在處於一個永久複雜的時代。所以客戶正在習慣在這種環境下操作。其次，我們在搜尋方面所做的並不是隨意的，人們需要，如果他們需要一位關鍵的高階主管，他們需要一個關鍵的公認會計原則，他們需要推動他們需要我們的幫助來完成這項工作。因此，我們目前沒有看到任何不確定性、經濟因素推動客戶決策。

Are you seeing the kind of customer decision-making the entering in new markets, the launching of new products and services that create new roles in the marketplace? Or is this a function you think at the executive level of turnover in existing rules?

您是否看到了進入新市場、推出新產品和服務以在市場中創造新角色的客戶決策類型？還是您認為這是現有規則中執行層人員流動的功能？

Yeah, I would say, look, we we're certainly to the turnover point we're certainly through the sort of war for talent of 21, 22 and the great resignation and there's lots of turnover. And the great thing about our business is every cyclical tailwind you see out there right now, the obvious one is people trying to figure out what to do with AI.

是的，我想說，看，我們肯定已經到了人員流動點，我們肯定正在經歷 21 歲、22 歲的人才爭奪戰，以及偉大的辭職和大量的人員流動。我們業務的偉大之處在於你現在看到的每一種週期性順風，顯而易見的是人們試圖弄清楚如何利用人工智慧。

As I said, on the call, people are creating new rules, they're changing rules, they're adding capabilities trying to get after that. So when things come through that things come through the economy, that way you end up, you end up being able to take advantage of, it does create new opportunities for us in addition to the normal turnover that we see.

正如我所說，在電話會議上，人們正在創建新規則，他們正在改變規則，他們正在添加試圖實現這一目標的功能。因此，當事情發生時，事情透過經濟發生時，你最終能夠利用，除了我們看到的正常營業額之外，它確實為我們創造了新的機會。

And some of this is also just great execution from our team, staying in front of clients. We've enjoyed a great engagement, retention from our teams this year. Teams stay really focused on ie even as we've driven some significant change to the organization. So I, I think it's both the fact that in this business, a major changes like in this particular cycle, AI create new roles and new profiles that people need. And our team is doing a great job of staying in front of clients and converting those opportunities for us.

其中一些也是我們團隊在客戶面前的出色執行力。今年我們團隊的參與度和留任率都很高。儘管我們已經對組織進行了一些重大變革，但團隊仍然真正專注於 ie。所以我認為，在這個行業中，像在這個特定週期中的重大變化，人工智慧創造了人們需要的新角色和新檔案。我們的團隊在保持客戶面前並為我們轉化這些機會方面做得非常出色。

I appreciate that. Last question for me. And thank you for entertaining my questions. In the newer businesses adjacent to executive search. Interim, I guess even consulting, newer than search itself. Are you changing your philosophy at all on how you're managing those businesses to be more profitable and have, a focus not just on revenue growth, but profit? did notice some improvement there and wonder if it's market conditions or a change. In approach as well?

我很欣賞這一點。對我來說最後一個問題。感謝您解答我的問題。在與高階主管獵頭相鄰的新興業務中。臨時的，我想甚至是諮詢，比搜尋本身更新。您是否正在改變管理這些業務以獲得更多利潤的理念，並且不僅關注收入成長，還關注利潤？確實注意到那裡有一些改善，想知道這是市場條件還是變化。在方法上也是如此？

Yeah, I don't think it's either ors. It's just really disciplined execution in both businesses that we, it's not either growth or profit. It's we believe we can profitably grow and the way that those two come together is we know what specific offers in those businesses are most attractive and scaling those making sure the growth comes in the areas that are most attractive or we have a strong, this competitive advantage in scaling up our great teams and great IP is how we're going to make those businesses performing hard very well. So no growth or profit is a very real focus on growing profitably and you're seeing us make some progress. And I don't think we're going to get any less intense about that tomorrow. We see a lot of work ahead, even as we've gotten some work done.

是的，我不認為這是非此即彼。這只是我們在這兩項業務中真正嚴格的執行，這不是成長或利潤。我們相信我們可以實現盈利增長，而這兩者結合在一起的方式是我們知道這些業務中哪些具體報價最具吸引力，並擴大這些報價以確保增長來自最具吸引力的領域，或者我們擁有強大的、有競爭力的領域擴大我們優秀團隊和優秀智慧財產權的優勢是我們讓這些業務表現出色的方式。因此，成長或利潤並不是真正關注獲利成長，你會看到我們取得了一些進展。我認為明天我們對此的熱情不會減弱。儘管我們已經完成了一些工作，但我們看到未來還有很多工作要做。

(Operator Instructions) And your next question comes from the line of Kevin Steinke with Barrington Research, your line is open.

（操作員說明）您的下一個問題來自 Barrington Research 的 Kevin Steinke，您的線路已開放。

Thanks. I wanted to just ask about your prepared comments where you, you really talked about the focus on organic growth. Just wondering if that implies a little bit less intensity in terms of seeking out acquisition opportunities or if you still view acquisitions as a meaningful.

謝謝。我想問您準備好的評論，您確實談到了對有機增長的關注。只是想知道這是否意味著在尋找收購機會方面的強度減弱，或者您仍然認為收購是有意義的。

Sure, I'll start with organic, which is we, we have acquired some pretty powerful capabilities over the past few years for acquisitions we've done On-Demand Talent, we've added capability to 100 consulting. And job one obviously is get those great capabilities in front of as many clients as need help in those areas, which is a huge segment to come.

當然，我將從有機開始，這就是我們，在過去幾年中，我們透過收購按需人才獲得了一些相當強大的能力，我們已經為 100 家諮詢公司增加了能力。第一個任務顯然是向盡可能多的需要這些領域幫助的客戶提供這些強大的功能，這是一個巨大的領域。

So we're, always going to start with have we gotten the right solutions in front of the right clients on a on a truly scaled basis, that's job one, we plan business and we see it's just a great opportunity to build a more differentiated, deeper and durable client relationships given the breadth of capabilities we've added. So that's planning horizon and job one is grow the great assets we have organically.

因此，我們總是先從是否在真正規模化的基礎上為正確的客戶提供了正確的解決方案，這是我們的首要任務，我們規劃業務，我們認為這是建立更具差異化的良好機會。考慮到我們所添加的廣泛功能，可以建立更深入、更持久的客戶關係。這就是規劃視野，第一個任務是有機地發展我們擁有的巨大資產。

That doesn't mean we don't continue to add great capabilities across time, but the value of those next capabilities, it is going to be made evident by how successful we are about bringing these capabilities and integrating them into our offer for clients. So it's just I think that focus on organics reflects the fact that we have a much richer and more compelling story to build distinctive, deep and durable relationships with clients and that that's going to be job one and of course, we're not capable of across time.

這並不意味著我們不會隨著時間的推移繼續增加強大的功能，但這些後續功能的價值將透過我們將這些功能引入我們為客戶提供的服務中的成功程度來體現。因此，我認為對有機物的關注反映了這樣一個事實，即我們有一個更豐富、更引人注目的故事來與客戶建立獨特、深入和持久的關係，這將是我們的首要任務，當然，我們沒有能力跨越時間。

Okay, thanks. And yeah, circling back on On-Demand Talent, I believe you mentioned the longer contracts or contracts, contract extensions in that segment. Again, I don't know if you attributed the market improving a bit the market environment or your execution or what, what led you to highlight that particular trend?

好的，謝謝。是的，回到按需人才，我相信您提到了該領域的較長合約或合約、合約延期。再說一遍，我不知道您是否將市場的改善歸因於市場環境或您的執行力，或者是什麼，是什麼讓您強調了這個特定趨勢？

I'll provide a frame and try to see for a little more detail. But the we've chosen to compete in some pretty narrow and specific places. So, I think it speaks more to the highly differentiated strategy. We have of key roles that people really, really need to to run their business and basically have two basic categories.

我將提供一個框架並嘗試查看更多細節。但我們選擇在一些相當狹窄和特定的地方競爭。所以，我認為這更說明了高度差異化的策略。我們擁有人們真正非常需要的關鍵角色來經營他們的業務，基本上有兩個基本類別。

One category is great interim talent, which you can't live without and you need help to get in the door as fast as you can. And the second is critical talent where you're never going to have enough. We think you think about a company, let's say that's going through a major M&A integration.

一類是偉大的臨時人才，沒有他們你就活不下去，你需要幫助才能盡快進入。第二個是關鍵人才，你永遠不會有足夠的人才。我們認為您會想到一家公司，假設該公司正在經歷重大併購整合。

There's a whole bunch of skills they need in that integration period that they don't need forever. So to some degree it speaks to the relevance and quality of our value prop in this market right now. Steve, I don't know if you want to add anything else to that.

他們在整合期間需要大量技能，但他們並不永遠需要。因此，在某種程度上，它說明了我們目前在這個市場上的價值支柱的相關性和品質。史蒂夫，我不知道你是否還想補充什麼。

I would say that in Europe, we saw more confirmations in on demand, talent in and in the US. It's, it's more of a value driven proposition. We saw higher contract value, we saw longer and higher extensions.

我想說的是，在歐洲，我們在美國和美國的按需人才方面看到了更多的確認。它更多的是一個價值驅動的主張。我們看到了更高的合約價值，我們看到了更長和更高的延期。

So, it was a mix between the two regions. On the on the very good quarter we had there on-demand help.

所以，這是兩個地區的混合體。在非常好的季度，我們得到了按需幫助。

I probably should know, we also did a lot of work in Q2 to set that business up for success. As we enter the back half of the, we took a sort of new leadership in there. We took some actions to position ourselves for growth in our strongest value proposition areas that start to flow through.

我可能應該知道，我們在第二季也做了很多工作，為該業務的成功做好準備。當我們進入後半部分時，我們在那裡採取了一種新的領導方式。我們採取了一些行動，以在我們最強大的價值主張領域開始實現成長。

Okay, good. He also talked about G&A expenses and that being a source of ongoing operating leverage as you grow the top line. Yeah, I think previously the company had been talking about G&A at around 15% of revenue or maybe little bit less. Is that kind of where you're still targeting, grow this top line sustainably?

好的，很好。他也談到了一般管理費用，以及隨著收入成長而持續營運槓桿的來源。是的，我想之前公司一直在談論 G&A 佔收入的 15% 左右，或者可能稍微少一點。這就是您仍然瞄準的目標，可持續成長營收嗎？

Yeah, II I think, we're not going to be the 2025-guide now, because we're still finalizing budget, we'll talk a little more and investigate around how we see the different elements of the P&L come together. But obviously, if we grow the business effectively G&A should be a source of leverage, but a lot of what we do is also variable cost. So on one hand, if we doubled the business tomorrow, I think it's highly unlikely, but the board would double time in my salary. So that's a source of leverage.

是的，我認為，我們現在不會成為 2025 年指南，因為我們仍在敲定預算，我們會多談一點，並調查我們如何看待損益表的不同要素。但顯然，如果我們有效地發展業務，一般費用應該是槓桿的來源，但我們所做的許多事情也是可變成本。因此，一方面，如果我們明天的業務增加一倍，我認為這不太可能，但董事會會將我的薪水增加一倍。所以這是槓桿的來源。

And other parts of the business, you do need to make sure that you're adding in capability. So it's a source of leverage. We'll give you some context around how we think that flows through. But it's part of the reason we talked about that focus on organic growth because that's the surest way to get G&A leverage.

和業務的其他部分一樣，您確實需要確保增加功能。所以它是槓桿的來源。我們將為您提供一些有關我們如何看待此流程的背景資訊。但這就是我們談論專注於有機成長的部分原因，因為這是獲得一般管理費用槓桿的最可靠方法。

Okay. Sounds good. Thanks for taking the questions. I'll turn it back over.

好的。聽起來不錯。感謝您提出問題。我會把它翻回來。

And that concludes our question in an answer session. I would now like to turn the conference back over to Mr. Tom Monahan for any closing remarks.

我們的問題就在回答環節結束了。現在我想將會議轉回湯姆·莫納漢先生發表閉幕詞。

First off, thanks to our colleagues for working to put together a continued track record of incredible client impact and a strong quarter.

首先，感謝我們的同事們努力創造了令人難以置信的客戶影響力和強勁的季度業績記錄。

Secondly, tax have dialed in, they brought up to forefront Heidrick story. It's exciting to share what we've got going on. And we look forward to continuing to do so. We'll see a number of you out on the road in between now and end of year.

其次，稅收已經介入，他們把海德里克的故事提到了最前線。分享我們正在發生的事情令人興奮。我們期待繼續這樣做。從現在到年底，我們會在路上見到你們中的一些人。

And hopefully we'll see many, many of you at Investor Day on December 3rd. So we'll be able to go a little deeper into some of the dynamics we talked about and show off some of our leading technology and we get to meet some of our exceptional leadership team. So I do hope folks have a market in their calendar planning as well.

希望我們能在 12 月 3 日的投資者日見到你們中的許多人。因此，我們將能夠更深入地探討我們所討論的一些動態，並展示我們的一些領先技術，並且我們將見到一些傑出的領導團隊。所以我確實希望人們的日曆規劃也有市場。

And ladies and gentlemen, this concludes today's conference call and we thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束，我們感謝你們的參與。您現在可以斷開連線。