Heidrick & Struggles International Inc (HSII) 2025 Q1 法說會逐字稿

Thank you and welcome to Heidrick & Struggles 2025 first quarter conference call. Participating on the call today are the company's CEO, Tom Monahan; and CFO, Nirupam Sinha. Accompanying slides are posted on the IR homepage of the company's website at heidrick.com, and you're encouraged to view these slides for additional context.

感謝您並歡迎參加 Heidrick & Struggles 2025 第一季電話會議。今天參加電話會議的有公司執行長湯姆·莫納漢 (Tom Monahan) 和財務長尼魯帕姆·辛哈 (Nirupam Sinha)。隨附的幻燈片發佈在公司網站 heidrick.com 的 IR 主頁上，我們鼓勵您查看這些幻燈片以了解更多背景資訊。

Please note that in the materials presented today, management may refer to non-GAAP financial measures that the company believes provide additional insight into underlying results. Reconciliations between these non-GAAP financial measures and the most comparable GAAP measures may be found in the earnings press release.

請注意，在今天提供的資料中，管理層可能會參考公司認為可以為基本結果提供更多見解的非 GAAP 財務指標。這些非 GAAP 財務指標與最具可比性的 GAAP 指標之間的對帳可以在收益新聞稿中找到。

Also, certain forward-looking statements may be made in management's remarks. Please refer to the Safe Harbor language also included in today's press release.

此外，管理階層的評論中可能包含某些前瞻性陳述。請參閱今天的新聞稿中也包含的安全港語言。

I will now turn the call over to Tom Manahan.

現在我將電話轉給湯姆·馬納漢。

Thank you for the kind introduction. Let me add my welcome and share an outline of the agenda for today's call. Today, I'll start by touching on our Q1 results and our strong operating performance.

謝謝您的熱情介紹。請容許我致歡迎詞並分享今天電話會議的議程摘要。今天，我首先要談談我們的第一季業績和強勁的營運表現。

I'll reflect quickly on what has become a suddenly tumultuous operating environment and comment on the threats and opportunities it presents for our business. I'll reaffirm our strategy to create unrivaled client value, particularly in times like these. Then finally, I'll hand the call over to Nirupam to walk us through a closer look at our Q1 results or go-forward guidance, and we'll both be available for Q&A.

我將快速反思突然變得動盪的經營環境，並評論它對我們的業務帶來的威脅和機會。我將重申我們的策略，即創造無與倫比的客戶價值，特別是在這樣的時期。最後，我將把電話交給 Nirupam，讓他帶我們更仔細地了解我們的第一季業績或未來指引，然後我們都可以回答問題。

Both our first quarter results and the momentum we are carrying into the second quarter are reflective of the ever-expanding need for organizations to engage and enable world-class leadership talent. In short, we delivered strong results in the first quarter of 2025 without performance on the top line and exceeded the high end of our outlook, coupled with robust profitability.

我們第一季的業績以及我們進入第二季的勢頭都反映出組織對吸引和培養世界級領導人才的需求日益增長。簡而言之，我們在 2025 年第一季取得了強勁的業績，沒有出現營收表現不佳的情況，並且超出了我們預期的高端，同時還具有強勁的盈利能力。

This performance, reinforced by the Q2 guidance which Nirupam will share, reflects the relevance of our strategy, the resilience of our business model, and the ability of our world-class team to create value for and with clients.

這項業績得到了 Nirupam 將分享的第二季指引的支持，反映了我們策略的相關性、我們商業模式的彈性以及我們世界一流的團隊為客戶創造價值以及與客戶共同創造價值的能力。

I want to spend just one moment to reflect on that last point. Think about the economic environment our clients expected in 2025 and compare it to what they actually encountered. Our team showed a remarkable ability to stay close to clients and pivot to serve their rapidly changing needs. Our outcomes are a reflection of their professional excellence and deep client focus.

我想花一點時間來思考最後一點。想想我們的客戶在 2025 年預期的經濟環境，並將其與他們實際遇到的情況進行比較。我們的團隊展現了卓越的能力，能夠貼近客戶並滿足他們快速變化的需求。我們的成果體現了他們的專業卓越性和對客戶的深度關注。

Turning to the second topic of my remarks, that mix of professional excellence and client focus will be vital to our success in a considerably more complex operating environment. Let me spend a minute sharing what we hear in client conversations, how we are responding, and how it might shape our performance.

談到我發言的第二個主題，專業卓越和客戶關注的結合對於我們在更為複雜的營運環境中取得成功至關重要。請允許我花一點時間來分享我們在客戶對話中聽到的內容、我們如何回應以及它如何影響我們的表現。

First, I'll state the obvious. This is not a business that benefits from the status quo. In simple terms, not a single client meeting in the last 72 years has ended with the following client quote. Things are going perfectly right now, and we are well set up for the future. Let's call Heidrick.

首先，我要說的是顯而易見的事。這不是一個能從現狀中獲益的生意。簡單來說，在過去 72 年裡，沒有一次客戶會議是以以下客戶引言結束的。目前一切進展順利，我們已經為未來做好了準備。我們打電話給海德里克吧。

Our opportunity to create value springs from the simple client need to drive great business outcomes by getting the right leaders in the right roles working in the right way. This need becomes more pronounced, more visible, and more urgent during times of economic chop.

我們創造價值的機會源自於客戶的簡單需求，即透過讓合適的領導者在合適的職位上以合適的方式工作來推動偉大的業務成果。在經濟動盪時期，這種需求變得更加明顯、更加明顯、更加迫切。

That said, this incredible opportunity for impact can sometimes be balanced by client caution in initiating, proceeding, or completing work. The net result is the dynamic we shared yesterday, where although we demonstrate consistent growth across time, individual quarters can show periods of volatility in periods of economic difficulty.

也就是說，客戶在啟動、進行或完成工作時是否謹慎有時可以平衡這產生影響的難得機會。最終結果就是我們昨天分享的動態，儘管我們表現出一段時間內的持續成長，但在經濟困難時期，個別季度可能會出現波動。

As you can see from our strong results and forecasts, we aren't seeing that dynamic. That said, we can obviously imagine a world where caution creeps into client decision-making, and the second half of the year looks different than the first half. We are staying very close to clients and monitoring activities, tone, and outcome really closely right now.

從我們強勁的業績和預測可以看出，我們並沒有看到這種動態。話雖如此，我們顯然可以想像，客戶在做決策時會更加謹慎，下半年的情況與上半年會有所不同。我們目前與客戶保持密切聯繫，密切監控活動、基調和結果。

Our resulting strategy for this environment is quite simple. Stay close to clients and arm our teams with the tools and resources to drive great client impact. We know that in times of uncertainty, clients look for help on a different set of issues, and we are putting in place tools and resources so that teams rapidly deliver on these needs.

我們針對這種環境所製定的策略非常簡單。密切關注客戶並為我們的團隊提供工具和資源，以產生巨大的客戶影響。我們知道，在不確定的時期，客戶會尋求針對不同問題的協助，我們正在提供工具和資源，以便團隊能夠快速滿足這些需求。

In this category, we are putting in place great resources to help them adapt leadership strategies to changing supply chain networks, link people's strategies to the opportunities and risks of AI, and drive resilient performance cultures in times of rapid change. That said, every client and every client's strategy is unique, and it's our job to stay in constant touch with them to shape their response and our support for these complex times.

在這一類別中，我們投入了大量資源，幫助他們調整領導策略以適應不斷變化的供應鏈網絡，將人們的策略與人工智慧的機會和風險聯繫起來，並在快速變化的時代推動有彈性的績效文化。也就是說，每個客戶和每個客戶的策略都是獨一無二的，我們的工作是與他們保持持續聯繫，以塑造他們的反應和我們對這些複雜時期的支持。

This client focus is enabled by some really attractive business model attributes that allow us to focus on client outcomes rather than financial engineering. These include revenue that is well diversified across geographies, industries, and solution areas, zero client concentration, a variable cost structure, low CapEx, and zero debt. These factors, combined with our incredible people and unique set of assets and capabilities, gives us great confidence in our medium-term through cycle targets shared in our investor day.

這種以客戶為中心的理念源自於一些真正有吸引力的商業模式屬性，這些屬性使我們能夠專注於客戶成果而不是金融工程。這些包括跨地域、行業和解決方案領域的多元化收入、零客戶集中度、變動成本結構、低資本支出和零債務。這些因素，加上我們優秀的人才和獨特的資產與能力，使我們對投資者日分享的中期週期目標充滿信心。

Organic revenue growth of mid to high single digits and organic adjusted EBITDA growth between 5% and 8% per year. This is a great place to transition to one more topic. Achieving these through cycle growth targets requires us to relentlessly focus on our long-term strategic priorities. Together, these will enable us to create unrivaled value for clients, colleagues, and shareholders by creating differentiated, deep, and durable client relationships.

有機收入成長率為中高個位數，有機調整後 EBITDA 成長率為每年 5% 至 8%。這是過渡到另一個主題的好地方。要實現這些週期性成長目標，就需要我們堅持不懈地專注於我們的長期策略重點。透過建立差異化、深厚和持久的客戶關係，我們將能夠為客戶、同事和股東創造無與倫比的價值。

Let me re-share these with you. First, we want to be the most trusted leadership partner for the C-suite and board. 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.

讓我與你們重新分享這些。首先，我們希望成為高階主管和董事會最信賴的領導合作夥伴。我們相信，對領導人才的關注使我們與眾不同。我們始終致力於不斷提升我們的高階主管搜尋和評估能力，這是我們企業的基石。

This work not only immediately inflects client performance, it gives us unmatched access to leaders and their priorities, allowing us to build valuable insights and rich data sets. We believe one of the most important C-suite roles that we help define and support is the Chief People Officer.

這項工作不僅能立即影響客戶的績效，還使我們能夠以無與倫比的方式了解領導者及其優先事項，從而讓我們建立有價值的見解和豐富的數據集。我們認為，我們幫助定義和支援的最重要的高階主管職位之一就是首席人力資源長。

It's a role that has undergone dramatic transformation in the past decade, and CPOs have been at the center of the most challenging issues of our time, from pandemic response to the hybrid work debate to the rapidly shifting dialogue about inclusion to the challenges posed by changing immigration approaches. But even as headlines whipsaw their daily agenda, CPOs are on the hook for architecting corporate strategies that reflect several of the most important challenges to the C-suite.

在過去十年中，這一角色發生了巨大的變化，首席保護官 (CPO) 一直處於我們這個時代最具挑戰性的問題的核心，從疫情應對到混合工作辯論，從關於包容性的快速變化的對話到不斷變化的移民方式帶來的挑戰。但即使頭條新聞不斷衝擊著首席採購官的日常議程，他們仍然需要負責制定能夠反映高階主管面臨的幾個最重要挑戰的公司策略。

Remaking work to best leverage the interplay of human and digital workers in the age of AI. Creating leadership and talent strategies for a world where demographic and labor mobility headwinds create real scarcity in leadership talent. Assuring the performance of leaders and leadership teams in a world where volatility is the norm, to name just a few.

重塑工作以最大程度地利用人工智慧時代人類和數位工作者的相互作用。為人口和勞動力流動阻力造成領導人才真正稀缺的世界制定領導力和人才策略。確保領導者和領導團隊在動盪的世界中的表現，僅舉幾例。

We've launched deep research and an event series to help CPOs balance this complex mandate and to help CEOs and boards select and leverage the next generation of key people partners. Second, to help clients lead transformation in the new world of leadership. As we shared at Investor Day, relationship size and stickiness correlate strongly with our ability to support clients in multiple ways.

我們開展了深入研究和一系列活動，以幫助首席採購官平衡這一複雜的任務，並幫助執行長和董事會選擇和利用下一代關鍵人才合作夥伴。第二，幫助客戶引領新時代領導力的轉型。正如我們在投資者日所分享的，關係規模和黏性與我們以多種方式支持客戶的能力密切相關。

This isn't some boiler room cross-selling effort. It's leveraging the access and insight of our exceptional consultants to accelerate client performance in new ways. We enjoy a substantial tailwind in this work. Every leader in every role in every industry has a transformation mandate.

這並不是什麼鍋爐房裡的交叉銷售活動。它利用我們傑出顧問的管道和洞察力，以新的方式加速客戶績效。我們在這項工作中享有相當大的順風。每個產業、每個職位的每個領導者都肩負著轉型的使命。

It might be to leverage AI or enter new markets or drive cost advantage. Regardless of the destination, this transformation invariably requires new leaders and new ways of leading and creates an opportunity for us to partner with them to drive great outcomes.

這可能是為了利用人工智慧或進入新市場或提高成本優勢。無論目的地如何，這種轉變總是需要新的領導者和新的領導方式，並為我們與他們合作以取得巨大成果創造了機會。

Obviously, the environment right now is leading to a reprioritization of key initiatives with topics like creating a cost-focused culture and rationalizing the corporate portfolio rising in prominence. In response, we have assembled toolkits that help our teams guide clients through this work and allow us to partner with them to accelerate their outcomes. We know that we grow larger and more impactful client relationships by linking our work to ambitious client goals. And no matter the environment, clients always have -- indeed, clients always need ambitious goals.

顯然，當前的環境正在導致關鍵措施的重新排序，其中創建以成本為中心的文化和合理化企業投資組合等主題變得越來越突出。作為回應，我們組裝了工具包，幫助我們的團隊引導客戶完成這項工作，並允許我們與他們合作加速他們的成果。我們知道，透過將我們的工作與雄心勃勃的客戶目標聯繫起來，我們可以建立更大、更有影響力的客戶關係。無論環境如何，客戶總是有——事實上，客戶總是需要雄心勃勃的目標。

Third, we're innovating to create continuous client engagement. In working with leading CEOs, boards, and Chief People Officers, we continue to see an important theme emerging. Leadership and talent decisions are becoming an always-on activity. This shouldn't be surprising, as there has been a step function increase in annual report language devoted to the economic importance of talent, culture, and succession.

第三，我們正在進行創新以創造持續的客戶參與。在與領先的執行長、董事會和首席人力資源長合作的過程中，我們不斷看到一個重要主題的出現。領導力和人才決策正在成為一項持續的活動。這並不奇怪，因為年度報告中關於人才、文化和繼任的經濟重要性的語言已經大幅增加。

And yet, historically, the process for managing this risk has lacked consistency and rigor. 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 a continued afterthought in ongoing corporate management. And we know that embedding this work at scaling companies will require just the type of at-scale digital tooling that our investments are targeting.

然而，從歷史上看，管理這種風險的過程缺乏一致性和嚴謹性。我們並不期望每家公司都能在一夜之間改變其工作方式，但我們也無法想像，在當今世界，像最高領導這樣重要的話題將在公司管理中被繼續忽視。我們知道，將這項工作嵌入擴大規模的公司中，需要的正是我們投資所針對的那種大規模數位工具。

In sum, while we confront a volatile market, we see enormous opportunities to grow our impact on clients and thereby our business. Our fast start to 2025 reflects our team's ability to create real value for clients in the face of this complex environment.

總而言之，雖然我們面臨著動盪的市場，但我們也看到了擴大對客戶影響力以及業務影響力的巨大機會。我們快速起步邁向2025年，體現了我們的團隊在複雜環境下為客戶創造真正價值的能力。

That said, we know that this complexity can slow down client decision-making but never eliminates their need to perform at a high level. Our roadmap for executing our strategy of creating differentiated, deep, and durable relationships will allow unrivaled value for clients, colleagues, and shareholders.

話雖如此，我們知道這種複雜性可能會減慢客戶的決策速度，但絕不會消除他們高水準表現的需求。我們執行創建差異化、深厚和持久關係策略的路線圖將為客戶、同事和股東帶來無與倫比的價值。

With that, I will now hand the call over to Nirupam to provide a detailed review of our financial performance and outlook.

現在，我將把電話交給 Nirupam，讓他詳細回顧我們的財務表現和前景。

Thank you, Tom. In a highly dynamic environment, we delivered strong results in the first quarter of 2025 without performance in the top line that exceeded the high end of our outlook and robust profitability. In the next few minutes, I'll walk through the details of our performance along with our Q2 outlook.

謝謝你，湯姆。在高度動態的環境中，我們在 2025 年第一季取得了強勁的業績，但營收表現並未超出我們預期的高端，獲利能力也十分強勁。在接下來的幾分鐘內，我將詳細介紹我們的業績以及第二季的展望。

First quarter revenue reached approximately $284 million, marking a 7% increase compared to Q1 2024. Adjusted EBITDA improved $3.3 million to $29.1 million, and adjusted EBITDA margin expanded 50 basis points to 10.3%.

第一季營收達到約 2.84 億美元，與 2024 年第一季相比成長 7%。調整後的 EBITDA 增加了 330 萬美元，達到 2,910 萬美元，調整後的 EBITDA 利潤率擴大了 50 個基點，達到 10.3%。

Looking more deeply at operating expenses, salary and benefits increased 8.6% from the prior quarter. Fixed compensation increased $4.2 million in the first quarter of 2025 due to higher separation, base salaries and payroll taxes, retirement and benefits, and talent acquisition and retention costs, partially offset by decreases in the deferred compensation plan and stock compensation. Variable compensation increased $10.9 million, benefiting from an increase in consultant productivity.

更深入地看一下營運費用，薪資和福利比上一季增加了 8.6%。2025 年第一季固定薪酬增加了 420 萬美元，原因是離職、基本工資和工資稅、退休和福利以及人才獲取和保留成本增加，但遞延薪酬計劃和股票薪酬的減少部分抵消了這一增長。由於顧問生產力的提高，浮動薪酬增加了 1,090 萬美元。

As a percentage of net revenue, salaries and benefits were 66.8% versus 65.8% in the year-ago period. Excluding a $3.7 million operational reorganization charge, salaries and benefits would have been 65.5%. Consistent with our prior commentary, for the full year, we continue to expect the normalized earn rate to be in the 65% range.

薪資和福利佔淨收入的百分比為 66.8%，去年同期為 65.8%。不計 370 萬美元的營運重組費用，薪資和福利將達到 65.5%。與我們先前的評論一致，對於全年而言，我們仍然預計標準化收益率將在 65％ 左右。

General administrative expenses of $41.4 million were relatively flat versus the year-ago period and include a fair value earn-out adjustment, which is excluded from our adjusted results. As a percentage of net revenue, general administrative expenses improved 100 basis points from the prior year to 14.6%. With respect to R&D, as we have described previously, we continue to invest in the future of Heidrick.

一般管理費用為 4,140 萬美元，與去年同期相比基本持平，其中包括公允價值盈利調整，該調整不計入我們的調整後結果。作為淨收入的百分比，一般管理費用比上年提高了 100 個基點，達到 14.6%。關於研發，正如我們之前所描述的，我們將繼續投資於海德思哲的未來。

At the core of this investment is IP that powers all our businesses, including search, Heidrick consulting, and our digital product portfolio. R&D spent for the first quarter was $6.4 million, or 2.3% of net revenue. Now let's turn to each of our businesses for further details.

這項投資的核心是支持我們所有業務的智慧財產權，包括搜尋、海德思哲諮詢和我們的數位產品組合。第一季研發支出為 640 萬美元，佔淨收入的 2.3%。現在讓我們進一步了解各個業務的詳情。

In executive search, revenue grew 6% to $213 million. Looking at our regional performance compared to the prior year quarter, we saw revenue increases of 6% in the Americas, 9% in Europe, and 1% in APAC. As you know, we have a diversified practice platform with great client engagement.

在高階主管搜尋方面，營收成長 6%，達到 2.13 億美元。與去年同期相比，我們各地區的表現來看，美洲地區營收成長了 6%，歐洲地區營收成長了 9%，亞太地區營收成長了 1%。如您所知，我們擁有多元化的實踐平台，並擁有良好的客戶參與度。

In the first quarter, we saw outperformance by the majority of our practice groups. Consultant productivity annualized in the first quarter at $2 million compared to $1.9 million on the same basis in the year-ago quarter, and we saw increases in confirmations and average revenue for executive search. We're also very pleased with executive search improving its already strong profitability with adjusted EBITDA of $52.3 million and an adjusted EBITDA margin of 24.5%.

在第一季度，我們的大多數業務團隊都表現出色。第一季顧問生產力年化為 200 萬美元，而去年同期為 190 萬美元，而且我們看到高階主管搜尋的確認量和平均收入都有所增加。我們也非常高興地看到高階主管搜尋業務獲利能力的進一步提升，調整後的 EBITDA 為 5,230 萬美元，調整後的 EBITDA 利潤率為 24.5%。

Turning to on-demand talent, revenue increased 12% to $43 million, marking a continued outperformance amid market dynamics. We saw increases in volume in both wins and project extensions. On-demand talent recorded adjusted EBITDA of $0.4 million versus an adjusted EBITDA loss of $0.9 million in the year-ago period. This business addresses an urgent client need, complements our search business, enhances our ability to serve clients comprehensively. We're continuing to foster innovation in our products and services as we pivot and accelerate growth, particularly on the interim talent side of our on-demand business.

談到按需人才，收入成長了 12%，達到 4,300 萬美元，標誌著在市場動態中繼續表現出色。我們看到中標數量和項目延期數量都有所增加。按需人才調整後的 EBITDA 為 40 萬美元，而去年同期調整後的 EBITDA 虧損為 90 萬美元。這項業務滿足了客戶的緊急需求，補充了我們的搜尋業務，增強了我們全面服務客戶的能力。隨著我們轉型並加速成長，我們將繼續促進產品和服務的創新，特別是在按需業務的臨時人才方面。

Looking at Heidrick consulting, we saw first-quarter organic revenue increase 7% year-over-year to $28 million, driven by increases in leadership assessment as we implement a more intense focus on pairing assessments with executive search. Adjusted EBITDA loss was $2.1 million for the quarter. Moving forward, we are focused on growing the business while benefiting from efficiency gains as we refine and simplify Heidrick consulting's offerings and focus on its core strengths.

縱觀海德思哲顧問公司，我們發現第一季有機收入年增 7%，達到 2,800 萬美元，這得益於我們更加重視將評估與高階主管搜尋相結合，從而推動了領導力評估的成長。本季調整後的 EBITDA 虧損為 210 萬美元。展望未來，我們將專注於發展業務，同時透過改進和簡化海德思哲諮詢服務並專注於其核心優勢來提高效率。

Turning to the bottom-line performance, adjusted net income for the quarter was $14.2 million, which includes a fair value adjustment related to the on-demand talent business versus $14 million last year. 2025 first-quarter adjusted diluted EPS was $0.67, consistent with the year-ago period.

談到底線表現，本季調整後的淨收入為 1,420 萬美元，其中包括與按需人才業務相關的公允價值調整，而去年為 1,400 萬美元。 2025 年第一季調整後稀釋每股收益為 0.67 美元，與去年同期持平。

Now let's turn to the balance sheet. We ended the first quarter in a strong cash position of $325 million, up $72 million from $253 million at the end of March 2024. This balance, coupled with our credit facility, gives us great strength and flexibility to execute our sheet plan and return capital to our shareholders.

現在讓我們來看看資產負債表。我們第一季末的現金狀況強勁，達到 3.25 億美元，比 2024 年 3 月底的 2.53 億美元增加了 7,200 萬美元。這筆餘額加上我們的信貸額度，為我們執行資產負債表計劃和向股東返還資本提供了強大的實力和靈活性。

Moving forward, we expect second-quarter revenue to be within a range of $285 million to $305 million. This compares to $279 million in Q2 of 2024. As we discussed previously, the current economic climate can heighten uncertainty, which may lead clients to delay initiating new projects or to temporarily pause ongoing ones. In most cases, the underlying demand does not dissipate, and this client work resumes once there is greater clarity or stability in the macro environment.

展望未來，我們預計第二季的營收將在 2.85 億至 3.05 億美元之間。相比之下，2024 年第二季為 2.79 億美元。正如我們之前討論過的，當前的經濟環境可能會加劇不確定性，這可能會導致客戶推遲啟動新專案或暫時停止正在進行的專案。在大多數情況下，潛在需求不會消失，一旦宏觀環境變得更加清晰或穩定，客戶工作就會恢復。

In conclusion, our performance underscores the strength and diversification of our business model, which continues to enable us to deliver for clients across a variety of market environments. These results are a testament to the dedication and focus of our global teams, who remain committed to serving our clients with excellence amid ongoing macroeconomic uncertainty.

總而言之，我們的業績凸顯了我們業務模式的優勢和多樣化，這使我們能夠繼續在各種市場環境中為客戶提供服務。這些結果證明了我們全球團隊的奉獻精神和專注力，在持續的宏觀經濟不確定性中，他們仍然致力於為客戶提供卓越的服務。

As we look ahead, we remain confident in our ability to navigate the evolving landscape with discipline while continuing to drive long-term value for our shareholders.

展望未來，我們仍然有信心，我們有能力以紀律性引領不斷變化的環境，同時繼續為股東創造長期價值。

With that, Operator, if you could please open the line, Tom and I would be happy to take questions.

接線員，如果您能接通電話，湯姆和我很樂意回答您的問題。

(Operator Instructions) Marc Riddick, Sidoti and Company.

（操作員指示）Marc Riddick，Sidoti and Company。

Hey, good evening. So given all the headlines and what have you, I was wondering if you could talk a little bit about what we're thinking, and given the past disruptions and recessions that Heidrick has gone through, I was wondering if there are any that were specifically or particularly relevant in assessing how things might downturn here in 2025 and how that could impact the business, or put another way, do you view today's circumstances as being unique, or can we draw on any meaningful parallels in the past?

嘿，晚上好。因此，考慮到所有的頭條新聞和您所知道的信息，我想知道您是否可以談談我們的想法，考慮到海德思哲過去經歷過的混亂和衰退，我想知道是否有任何具體或特別相關的內容可以評估 2025 年的情況可能如何下滑以及這將如何影響業務，或者換句話說，您是否認為今天的情況是有意義的，或者我們是否可以藉鑑過去的任何東西？

Obviously, it's something we talk about internally. Like pretty much every other business, there are segments of what we do that slow down during periods of economic distress. To the good, as you can see from our results and our forecast, we're not seeing them yet.

顯然，這是我們內部討論的事情。與幾乎所有其他業務一樣，在經濟困難時期，我們的一些業務也會放緩。好的一面是，正如您從我們的結果和預測中看到的那樣，我們還沒有看到它們。

And as the adage goes, if you've seen one economic downturn, you've seen exactly one economic downturn. Just think for a second about the contrast between the global financial crisis and the COVID era. The first one was sector-focused and long, the second broad-based with a fast snapback. So even over the last two decades, the economic uncertainty periods have looked very different.

正如諺語所說，如果你經歷過一次經濟衰退，那麼你就只經歷過一次經濟衰退。想想全球金融危機與新冠疫情時代的對比。第一個是專注於某個行業且持續時間較長的，第二個是廣泛且快速反彈的。因此，即使在過去二十年裡，經濟不確定時期看起來也非常不同。

And look, we like boom times as much as anyone else, but our business does have some attributes that allow us to weather these storms better than others and certainly better than the past. First, great economic attributes. No debt, little CapEx, embedded flexibility due to variable costs. We have a business mix that is well-diversified across region, industry, and service lines. And most importantly, we have a leisure-like focus on client value that gives clients the fastest return of any advisory category.

瞧，我們和其他人一樣喜歡繁榮時期，但我們的業務確實具有一些特性，使我們能夠比其他公司更好地度過這些風暴，當然也比過去更好。一是經濟屬性強。沒有債務，資本支出很少，由於成本變動而具有內在彈性。我們的業務組合在地區、產業和服務領域都多元化了。最重要的是，我們非常注重客戶價值，為客戶帶來任何諮詢類別中最快的回報。

Fourth, remember, across all our service lines, our projects don't require years of work or tens of millions of dollars in cost, like let's say a major software implementation or digital re-architecture. You can move quickly at a fraction of the cost of some of those major transformations to really lift performance.

第四，請記住，在我們所有的服務線上，我們的專案不需要多年的工作或數千萬美元的成本，例如大型軟體實施或數位重新架構。您可以以一些重大轉型成本的一小部分快速採取行動，真正提升績效。

So by staying close to clients, we can make ourselves highly relevant, and that's our job. But yeah, more broadly, we're not seeing any of this yet, as you can see from our outcomes, but we keep our eyes very closely on activity levels and client tone.

因此，透過與客戶保持密切聯繫，我們可以使自己高度相關，這就是我們的工作。但是，是的，從更廣泛的角度來看，我們還沒有看到任何這些情況，正如您從我們的結果中看到的那樣，但我們密切關注活動水平和客戶基調。

Great, and then I was wondering if you could talk a little bit about the, it's obviously a good time to have a strong balance sheet and zero debt. I was wondering if you could talk a little bit about your thoughts on use of cash, and maybe more broadly, maybe what you're seeing out there as a potential acquisition pipeline, whether much has changed, given the headlines that we've seen over the last few months.

太好了，然後我想知道您是否可以稍微談談，現在顯然是擁有強勁資產負債表和零債務的好時機。我想知道您是否可以談談您對使用現金的看法，也許更廣泛地說，也許您所看到的潛在收購管道，考慮到我們在過去幾個月看到的頭條新聞，是否發生了很大變化。

Yeah, thanks, Marc. It's Nirupam here. So, as a quick reminder, we still have our now payments in 2026 from some of our past acquisitions. So as we think about the cash, we're obviously managing cash to be able to pay those out. And so cash kind of usage and how we think about cash, certainly that factor will play in.

是的，謝謝，馬克。我是 Nirupam。因此，快速提醒一下，我們仍然可以從過去的一些收購中獲得 2026 年的付款。因此，當我們考慮現金時，我們顯然正在管理現金以便能夠支付這些款項。因此，現金的使用方式以及我們如何看待現金，這些因素肯定會發揮作用。

Now, as always, we're constantly ensuring we can make the right organic investments into our service lines, and we continue to see that as the overall priority. Now, as we've noticed in the past, in our business, and as people will know in any professional service business, often, as you're thinking about organic investments or a hiring conversation, that sometimes turns into an acquisition or a lift-out, especially if you're talking about boutiques or smaller players.

現在，像往常一樣，我們不斷確保能夠對我們的服務線進行正確的有機投資，並且我們繼續將其視為整體優先事項。現在，正如我們過去在我們的業務中註意到的那樣，正如人們在任何專業服務業務中所知，通常，當您考慮有機投資或招聘談話時，有時會變成收購或收購，特別是當您談論精品店或小型企業時。

And so we view that as a matter of regular business to evaluate those opportunities, to be in those dialogues, and to ensure we're staying ahead of opportunities that could help us. So that's how we kind of think about M&A at this point in cash usage. So number one, we have our announced pay. Number two, we think organic investments is still a priority. And then three, some of those organic investments turn into acquisitions, and that's life of what we do here.

因此，我們認為，評估這些機會、參與這些對話並確保我們始終領先於可以幫助我們的機會，是正常業務。這就是我們目前對現金使用情況的併購的看法。首先，我們已經宣布了薪酬。第二，我們認為有機投資仍然是優先事項。第三，一些有機投資變成了收購，這就是我們在這裡所做的事情。

Okay, and then sort of pivoting a bit on the -- in a way, on the M&A kind of conversation, could you sort of share any thoughts as to what you're seeing as far as M&A being a driver of client demand? We've seen sort of an interesting wave of global M&A activity year to date, and I was maybe wondering if you could give sort of an update as to what you're seeing or whether it was similar to or met your expectations at the beginning of the year. Thanks.

好的，然後稍微轉變一下話題——在某種程度上，關於併購之類的對話，您能否分享一下您對併購作為客戶需求驅動因素的看法？今年迄今為止，我們看到了全球併購活動的有趣浪潮，我可能想知道您是否可以更新您所看到的情況，或者它是否與您年初的預期相似或符合。謝謝。

Look, I think M&A falls right in that category of every client's working on something, right? And M&A scale or tuck-in creates a lot of opportunities for us to engage them around making sure they have the right team. Are they harmonizing their culture? How do they assess when you combine two companies, who gets what role?

看，我認為併購就屬於每個顧客都在做的事情的類別，對嗎？併購規模或收購為我們創造了許多機會，讓我們與他們接觸，確保他們擁有合適的團隊。他們是否在協調他們的文化？當兩家公司合併時，他們如何評估誰扮演什麼角色？

So there's a lot of activities that spring out of that, either at scale or think about just restructuring cap table, whatever it is. And it's one of a bunch of things where you look and say -- gosh, pretty much anything that if you could look inside the folder where any CEO carries around their MBOs, you could look at the five or six things they have absolutely got to get done, and they all have significant implications for leadership.

因此，由此會產生許多活動，無論是大規模的，還是僅僅考慮重組股權結構表，不管它是什麼。這是一系列讓你看了就會說的事情之一——天哪，如果你能看看任何一位 CEO 隨身攜帶的 MBO 文件夾，你就會發現他們必須要完成的五六件事，這些事情都對領導力有著重要的影響。

Because even if they're not doing, integrating M&A, they might be doing a cost out. They might be doing the digital transformation. They might be doing, going the other direction on M&A and carving out a business. And every one of them has lots of places for us to bring our expertise to bear to help them be successful.

因為即使他們不進行整合併購，他們也可能會進行成本計算。他們可能正在進行數位轉型。他們可能正在採取另一種方式進行併購並開拓業務。我們可以在每一個公司發揮自己的專業知識，幫助他們取得成功。

Great. Thank you very much.

偉大的。非常感謝。

Kevin Steinke, Barrington Research.

凱文‧史坦克，巴靈頓研究中心。

Great. Thank you. Wanted to ask about a comment you made in your prepared remarks as it relates to Heidrick Consulting. I believe you mentioned simplifying their operations and maybe how that relates to increasing the profitability of that business as we move forward. I don't know if there's any more color or flavor you could add to that.

偉大的。謝謝。想詢問您在準備好的演講中對 Heidrick Consulting 所做的評論。我相信您提到了簡化他們的運營，以及這與未來業務盈利能力的提高有何關係。我不知道您是否可以添加其他顏色或味道。

Yeah, I'm happy to take that, Kevin. It's Nirupam. A couple of things here. I think, one, there were some one-time items in Q1 that impacted you, including a reorganization charge. On a quarter-to-quarter basis, there can be a timing issue. As you think about profitability in that business -- if you look back to and think about Q1 last year, the business was in a very different spot than it is today.

是的，我很樂意接受這個，凱文。是 Nirupam。這裡有幾件事。我認為，首先，第一季有一些一次性項目對您產生了影響，包括重組費用。從季度來看，可能會存在時間問題。當您考慮該業務的盈利能力時——如果您回顧並思考去年第一季度，您會發現當時的業務狀況與現在大不相同。

You can imagine that bonus accruals were also in a different perspective than they are right now. So assuming the business sustains momentum, we'll hit more normalized comps in the back half of the year. That's the first thing to just keep in mind.

你可以想像，獎金累積的情況也跟現在不同。因此，假設業務保持良好勢頭，我們將在今年下半年實現更正常的業績。這是首先要記住的事情。

I Think second, we continue to see improvements in how we perform in that business. And I think longer term, we're still very focused on hitting the long-term guidance that we gave back in Investor Day. So 11% to 13% for consulting that we shared then is still what we expect, and we're making progress on that on a steady basis daily.

我認為其次，我們繼續看到我們在該業務中的表現有所改善。我認為從長遠來看，我們仍然非常注重實現我們在投資者日給予的長期指導。因此，我們當時所分享的諮詢收入佔比 11% 至 13% 仍然是我們的預期，而且我們每天都在穩步取得進展。

Great. Okay, great. Can you just refresh us on organic investments? You mentioned that, obviously, as a capital allocation priority, I guess, beyond hiring. Is there anything you're focused on specifically that you could update us on?

偉大的。好的，太好了。能否簡單介紹一下有機投資？您提到，顯然，作為資本配置優先事項，我想，這超出了招募的範圍。您特別關注的是什麼，可以向我們更新嗎？

I think the good news is our business is pretty straightforward. It's how many great people do we have, and how are we making them even more successful? Think of any organic growth investment that's going to fit comfortably into one of those two buckets.

我認為好消息是我們的業務非常簡單。關鍵在於我們有多少優秀人才，以及我們如何讓他們有更大的成功？想想看，任何有機成長投資都可以輕鬆地歸入這兩個類別之一。

First and foremost, adding great people, either growing them in our system or putting great people on the Heidrick platform so they can be more successful, and then investments in, obviously, some of our digital tools, some of our intellectual property, marketing, and development to help everyone get stronger and better and make them --- It's an easy business. I know May 4, has passed, but it's more Jedi Knights and better lightsabers, right? That's kind of -- When we think about growing this business, that's what it comes down to.

首先也是最重要的，增加優秀人才，要么在我們的系統中培養他們，要么將優秀人才放在海德里克平台上，這樣他們就能取得更大的成功，然後顯然還要投資於我們的一些數字工具、一些知識產權、營銷和開發，以幫助每個人變得更強大、更好，並讓他們——這是一項簡單的業務。我知道 5 月 4 日已經過去了，但會有更多的絕地武士和更好的光劍，對吧？這就是——當我們考慮發展這項業務時，這就是關鍵所在。

Okay, great. And when we think about the current environment we're in, I know you were talking about Chief People Officers, as an example, but have you seen any sort of particular type of search going on or consulting project or type of talent being sourced in on-demand talent? Is there been any kind of meaningful change in the types of activities that clients are seeking from you across the segments?

好的，太好了。當我們思考我們所處的當前環境時，我知道您以首席人才官為例，但您是否看到任何特定類型的搜尋或諮詢項目或按需人才的尋找？客戶在各個領域向您尋求的活動類型是否發生了一些有意義的變化？

No. The short answer is there's always little peaks and valleys, right? There's stuff that goes on. I think if you work, sort of see through some of what's going on short-term, there are some longer-term themes that are driving how companies are thinking about their top talent.

不。簡短的回答是，總是有小高峰和小低谷，對嗎？有些事情正在發生。我認為，如果你工作，就能看透一些短期發生的事情，你會發現一些長期主題正在推動公司如何考慮他們的頂尖人才。

One is, look, set aside whatever's going on in tariffs. We've been on a long cycle stretching back to [Brexit] and beyond where borders matter more indifferently than they had for sort of 20 years before. And so people are asking questions like, how do I organize at the top of the house? How do I want to think about my supply chain? Do I need resilience? People looked at the supply chain challenges during COVID.

一是，你看，把關稅方面的事情放在一邊。我們已經處於一個漫長的周期，可以追溯到[英國脫歐]及之後，與20年前相比，邊界問題變得更加無關緊要。因此人們會問這樣的問題：我該如何整理屋頂？我該如何考慮我的供應鏈？我需要韌性嗎？人們關注新冠疫情期間的供應鏈挑戰。

And so thematically, that sometimes shows up as your regional work structure. Sometimes it shows up as where you're locating work. It sometimes shows up as I need new and different supply chain talent. It may show up as new and different finance talent, right? So the theme tends to be the issue that each company actualizes differently.

因此從主題上來說，這有時會表現為您的區域工作結構。有時它會顯示您的工作地點。有時當我需要新的和不同的供應鏈人才時就會出現這種情況。它可能表現為新的和不同的金融人才，對嗎？因此，主題往往是每個公司以不同方式實現的問題。

Similarly, we went through a long, long time of interest rates being really low. And now we're seeing a cycle where interest rates are higher and people, particularly let's say in private equity or any sort of capital allocation method are thinking about, okay, what's the sort of talent I need there? Do I need different CEO profiles? Do I need different CFO profiles? How do I think about different skill sets?

同樣，我們經歷了很長一段時間的低利率時期。現在，我們看到一個利率不斷走高的周期，人們，特別是私募股權或任何類型的資本配置方法的人們，都在思考，好吧，我需要什麼樣的人才？我需要不同的 CEO 簡介嗎？我需要不同的 CFO 簡介嗎？我如何看待不同的技能組合？

We highlighted the CPO because every one of these problems, from the -- what's our expectation for office attendance on Monday, all the way up to how to digital workers interface with human workers, lands on their desks.

我們強調 CPO 的重要性，因為每一個問題，從我們對週一辦公室出勤率的期望，一直到數位員工如何與人類員工互動，都會落在他們的辦公桌上。

So they are absolutely really busy right now and we're trying to partner with them to make them incredibly successful so they can drive value. But yeah, I think the thematic, it tends to be more a set of themes that show up and then present differently at different clients in terms of how they decide what to go to work on.

所以他們現在真的很忙，我們正試圖與他們合作，讓他們取得巨大成功，從而創造價值。但是的，我認為主題往往是一組主題，這些主題會出現，然後在不同的客戶那裡以不同的方式呈現，以決定他們如何進行工作。

All right. Well, that's good color. I appreciate the comments. I will turn it back over.

好的。嗯，顏色不錯。我很感謝這些評論。我會把它翻過來。

Thank you.

謝謝。

Tobey Sommer, Truist Securities.

托比·索默（Tobey Sommer），Truist Securities。

Good afternoon. This is Tyler Barishaw on for Toby. Can we discuss some of your trends in Europe? Revenue up like 9% and even close to 50%. Just curious. Can you discuss what are some of the drivers of that and any changes going on post the liberation day with changes in trends in Europe? Thank you.

午安.這是泰勒·巴里肖 (Tyler Barishaw) 代替托比 (Toby)。我們可以討論一下你們在歐洲的一些趨勢嗎？收入成長了9%甚至接近50%。只是好奇。您能否討論一下造成這種情況的一些因素以及解放日之後歐洲趨勢發生的變化？謝謝。

Yeah, I'm happy to start there, Tyler. So in general, I mean, I think we've seen across the board sort of Europe perform pretty well. I mean, there's not one particular sector that's kind of standing out for us. You see it across technology, financial services, industrials, consumer. I mean, I think across the board we've seen pretty good performance there.

是的，我很高興從那裡開始，泰勒。所以總的來說，我認為我們看到歐洲整體表現相當不錯。我的意思是，沒有哪個特定的領域對我們來說是突出的。您可以在科技、金融服務、工業和消費者領域看到它。我的意思是，我認為從整體上看，我們看到了相當不錯的表現。

Now, how much is that attributed back to liberation day exactly? I don't know if I can I can exactly tell you that. I mean, Tom, maybe you can comment on that. But but generally, I think it's it's good performance across the board.

那麼，這到底在多大程度上可以歸因於解放日呢？我不知道我是否可以準確地告訴你這一點。我的意思是，湯姆，也許你可以對此發表評論。但總體來說，我認為它的整體表現還是不錯的。

Yeah, I mean, first of all, liberation day was in this quarter. So, yeah -- so you have seen some stimulative activity by a couple of European governments. And that, on balance gives people confidence. You've seen if certain sectors are becoming -- getting coming in focus. Think, we European Aerospace and Defense, which feels there's going to be a lot of resourcing heading their way.

是的，我的意思是，首先，解放日就在這個季度。是的—您已經看到一些歐洲政府採取了一些刺激措施。總的來說，這給了人們信心。您已經看到某些行業正在成為人們關注的焦點。想想看，我們歐洲航空航天和防務公司認為將會有大量資源湧向他們。

So, but I think it's more just -- again, our business is not unlike all of our clients. Having a great team in place is number one. And having that team working in focus the right way is is the second big piece of that. So I think we're just seeing a great, great team building that has gone on over there, continuing to pay dividends. But I don't use one thing necessarily.

所以，但我認為這更公正——再說一次，我們的業務與我們所有的客戶並沒有什麼不同。擁有優秀的團隊是第一位的。讓團隊以正確的方式集中精力工作是其中的第二個重要部分。所以我認為我們看到那裡正在進行著一場偉大的團隊建設，並且正在繼續產生效益。但我不一定會使用某樣東西。

Got it. And just transitioning to some of the other segments, on-demand talent and consulting. Can you just talk about maybe profitability expectations for the year? Should we expect them both to be profitable, finish the year profitable?

知道了。並且剛剛轉向其他一些領域，按需人才和諮詢。您能談談今年的獲利預期嗎？我們是否應該期望它們都能獲利，並在年底實現盈利？

I think as I said about consulting a second ago, I think the same would be true for on-demand talent. I mean, I think we saw on-demand talent break into profitability this quarter, which we're pleased by. But I think for us, it's less of the focus quarter by quarter. It's more are we kind of marching towards the guidance that we've given. And I think we feel good about the guidance that we've given and sort of marching towards the longer term profitability goals.

我想，正如我剛才談到諮詢時所說的那樣，按需人才也是如此。我的意思是，我認為我們本季看到按需人才開始獲利，我們對此感到高興。但我認為對我們來說，每季的關注度都會下降。我們更像是在朝著我們所給予的指導方向前進。我認為我們對給予的指導感到滿意，並正在朝著長期盈利目標邁進。

So for us, that's how we sort of think about it. With, on-demand talent 7% to 9% and consulting at 11% to 13%, as we've shared previously.

所以對我們來說，這就是我們的想法。正如我們之前分享的，按需人才佔 7% 至 9%，諮詢佔 11% 至 13%。

Got it. And then just one final one. Can you discuss any difference in demand trends among different end markets and maybe particular financial services? If there's anything to call out there. Thank you.

知道了。最後再說一句。您能否討論不同終端市場以及特定金融服務的需求趨勢有何差異？如果有什麼需要呼叫的話。謝謝。

Could you repeat the question that got a little blurred on this end? Sorry.

您能重複一下這邊有點模糊的問題嗎？對不起。

Yeah. Sure. Just wondering if you could talk about demand trends in different key end markets and particularly financial services.

是的。當然。只是想知道您是否可以談談不同主要終端市場尤其是金融服務的需求趨勢。

I mean, I think we've sort of seen good demand across. I mean, if I look at us by sector, it's been pretty broad based this past quarter. We've seen it across financial services, global technology and services, industrials, consumers. So there's no one real part standing out for us. And I think financial services has been part of what's performed pretty well globally for us.

我的意思是，我認為我們已經看到了良好的需求。我的意思是，如果我按行業來看，上個季度我們的行業分佈相當廣泛。我們在金融服務、全球技術和服務、工業和消費者領域都看到了它。因此，對我們來說，沒有什麼真正突出的部分。我認為金融服務是我們在全球範圍內表現良好的部分原因。

Thank you. That's all the questions I have.

謝謝。這就是我所有的問題。

I will turn the call back over to Tom Monahan for closing remarks.

我將把電話轉回給湯姆·莫納漢，請他做最後發言。

Thank you, Kate. We appreciate everyone dialing in today. We look forward to keeping you posted as we move through the year. And we know we'll see many of you at upcoming investor conferences that we're out on the road.

謝謝你，凱特。我們感謝今天撥打電話的各位。我們期待在新的一年向您通報最新進展。我們知道，在即將召開的投資者會議上，我們會見到你們中的許多人。

In the meantime, please don't hesitate to reach out with any questions and hope folks enjoy the evening and have a great, although I'm guessing busy week, given what you all do. So thanks very much. Bye now.

同時，如果您有任何問題，請隨時與我們聯繫，並希望大家享受這個夜晚並度過一個美好的時光，儘管考慮到你們所做的事情，我猜這週會很忙。非常感謝。再見了。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。