Heidrick & Struggles International (HSII) 24 Oct 222022 Q3 Earnings call transcript

Welcome to the Third Quarter 2022 Heidrick & Struggles Earnings Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded. It is now my pleasure to turn the conference over to Suzanne Rosenberg, Vice President of Investor Relations. Please go ahead, Ms. Rosenberg.

to third welcome conference and you, our quarter XXXX call. Thank and call Harris. Rajagopalan; is today's CEO, our Mark On Officer, President Krishnan Financial and Chief posted underlying materials view measures provide these homepage for the non-GAAP additional heidrick.com, slides financial that third that results. we slides we our additional in may note the to and to website believe at today, insight We IR you encourage context. Please our presented into quarter we of on refer non-GAAP financial earnings and may be A the GAAP reconciliation measures found in press between release. certain Also in may we our remarks, forward-looking make statements. the We press harbor ask that the you please now I'll also refer call today's to in to you. safe contained turn over language release. Krishnan,

Suzanne. everyone. Good you, afternoon, Thank

with and bottom and the pleased last historic This performance operating in to market $XX to year. year line delivered foreign weathered inevitable another record already assets are investments approaching million. achieved income to strong make slowdown. report rates, XXXX's year-to-date X-month continued an our top full while operating neared results digital along of Profitability we income was which of compared specifically, is $XX and We exchange million, the unfavorable of highs, set on both

bottom at of margins line, operating on diluted Third quarter we quarter XX.X%. $X.XX. And third remained robust achieved the EPS

On our revenue quarter in the of expectations revenue milestone top met the line, highest third the constant $XXX and new million currency net history. as marked a company's

including quarter our the invest which addition to flexibility our In diversification we provides financial results, of great digital third cash our with with as balance in development strong ended we $XXX strategy, us to highest assets. of million, these the continue

expected, of as several been for has past over are slowdown. see beginning quarters As to we now X extraordinary market business a years. we've the the now, pace And we discussed

in we believe see and we record the years stage, revenue delivered However, to continue above XXXX we'll pre-pandemic XXXX. this at

of in Consulting weathering demonstrated historically, higher the executive normal and minute, in slowdown, business. seasonality diversification the which anchored the will more discuss operate on-demand pandemic at it's fourth talent quarter relatively reflects the recently of XXXX dip. Similarly, tight that believe on-demand short core late Heidrick guidance as was back a strong our an is most grow has large concerns our business business talent economic This environment. when still labor in during better Mark particularly a macro in been following a bounced The too demand a As versus segment downturns. to will advantage this continues is tight companies inflow prioritization assessment to labor and market comments, the leadership environment succession market an strategy, and companies of versus and discuss to planning by solely in talent new in relevance bench. Bigger more to are his demand, build leaders relying I'll operating market fixed external our on growing their leadership on invest very development supported a search are in continue variable future driving and where of cost in picture. priority. Also we is The and

leadership on leaders, Beyond agile for we the scale. snapshot, identifying, is shifts. a imperatives work other of we're and leaders, Whether see workplace world to assessing about and workplaces, & need and changing a quarterly developing continue hybrid mobility many the and I future-ready that talking global DE

trusted marketplace issues. our gratifying permission with resonating truly increasingly of positioned our availing strategy solve and of that themselves multiple a in cycle number the complex clients gives strategically tandem to premium these and to virtuous us building working and Importantly, increasing these across is services. business the our of an of clients, differentiated address offerings in we believe leadership our to segments synergistically for brand It's new advise offerings introduce various areas, help Heidrick is

Heidrick fact, increasingly Consulting client over business that was XX% positive for XX% Heidrick by Search expanding cross-collaboration value. of on-demand year-to-date, the Executive referrals diversified but talent building with our not and opportunities long-term driven drive our roughly future only success also was In becomes as by driven create channel. We're revenue from of momentum the shareholder

that challenges tight Our of talent, Clients diversification Each with capacity focused new for. executive search other time, or solved the and are a and be clients also on executive strategy very assess their more and are broader, reflects leaders their in clients human level. growth future At comprehensive business what is talent. supports our of looking and near-term ways one as same to natural well looking can existing in way. also workplace and and as our need asking have talent often to challenges solutions overall. the in capital better this organizations market particularly demand for develop the strengthen interim cultures project-based for on their at

analytics and develop In attract, of talent. looking clients retain, more addition, potential ways the predict to to powerful are and leverage their better data for

has While dependence because have search, had nonsearch on we historically countercyclical our business businesses executive attributes. our of believe cyclicality its

we'll to engagements helping global them more bring with to an platform broader grow, out cycles. pressing resilient even fuller build our clients, their thereby more while businesses creating expect and advisory more future to to of challenges. our these be as services suite from So sustainable We'll leadership continue

assets digital clients leaders. visibility In our developing help leadership to key support on topics we on remain that bring their how transform and focused and companies can addition, development

Executive delivered turn our performance me record let slightly each to compared revenue quarter of constant currency strong search last its with segments. third to up a Now performance year.

XX-month maintain consultant. market per an gain to and continue million we believe trailing outstanding $X.X we productivity of Importantly, share

greater above per process. and consultant, levels, on calls, settle sustainable automation reflecting gains productivity in levels we expect around to we've the from pre-pandemic $X discussed hiring efficiencies prior million As

we see the As quarter Americas. anticipated, decrease given the in by market slowdown, global led did the confirmations

and assess through year-to-date deepening in Globally, growing we from and Regionally, that roles industry and to clients and industry our in client we efficiently sectors performance. all variety see year's sustainability expansion our continue burgeoning remain However, geographies were opportunities partner go-to-market to growing last focused such hybrid search slightly every with areas DE&I, relationships demand as digital industries. up practice. strategy on of confirmations emerging new incredible we continue in optimizing and a by in on tech

segment model independent. leadership workers on this openness level, labor significant that the to a to grew to growth to remote changing enterprise-wide becoming grow Next, client for This see on-demand Overall, increased project a and XXXX. tight XX% on-demand year-to-date continues the growing strength business work, executive go in C-suite need to the show work. strategic clients talent comfort high-end who flexible great $XX fast, faster interim compared driving very indicate the more number has this XXXX. to for this a revenue talent. million response continues increasingly the saw through growth million, on-demand grow sources as the at Clients ongoing choosing $XX the and talent. Key million need with space to we with the talent turning up basis, When look liquidity, that's to in on drivers talent or that TAM as XX% awareness demonstrating strength track of talent looking and whether at to revenue companies External platform. independent trailing over be the XX-month of high leadership positive for to access on-demand the and more Heidrick continues in growth include market market of solutions, $XX flexible landscape with leaders

position our opportunity. and continues We leadership expand. accelerating on as client and expect additional in growth and future this reinvesting as the focused in market U.S. the U.K. We're geographic awareness continue organic Building investments to growth as sales to the marketing outside on in we're market space, grows well expansion given

on to client areas across our and our $XX by multiple brand delivering from relationships we expect basis. focus Heidrick seen add delivered Heidrick we nearly continue third currency higher our through awareness was growth search revenue organizations to expanding to more accelerated we a and the In future-ready Growth to up resources side leaders, increase XX% as of benefit our as of cross-sell to of impactful solutions the Consulting, revenue develop the cultures. across drive quarter, ability and all also that this the constant net segment continue services We this on business. In offerings. demonstrates channel million,

Importantly, how our with navigate clients continue to culture for right we're as have we And they and challenging Who does align to do headwinds. addition, and in wrestle as to labor as In such talent, clients see are return services strong our economic the strategy leaders? place? market demand issues around with office we our future a and purpose? strategic leaders questions advising our

like organizations data view Companies is or address capabilities they drive lack Leadership of diversification limited. identify strategy the programs the and for critical map of intelligence piece or leaders as and as is don't Current organization-wide a leadership leadership. succession are can't roles, digital build such our of to area and their internal an planning companies needs our impactful manual a impact. firm often Today, effectively growth And another result, need key leadership assets. fragmented. experiences scale many and drive Lastly, future mobility the of development to needs. development solutions visibility to business systems our and

been on first these We working address AI asset Eightfold with actively needs. unmet have our digital to partner our

portfolio, We're been on that to our on & achieve path we full early continued generation positive beta our execution, it excited and We're named Consulting, leadership enable sharing multiyear still over to beginning to now businesses, performance the our the talent, executive quarters. In launch. the leading been X be search will Navigator, a faster has come. providing expand we reflect maps the a look date clients. new Heidrick in our road digital ambitious cornerstone as beta business beta we to product right have look to as nonsearch progress growth our into it coming as fast-changing heading reception. testing adjacencies Heidrick will growth With our X world's successful are over strong into positive an product world. advance the the as strong program advisory their of our assets a companies We of The in closing, to forward to and several direction. pace talent more from continue services we and Struggles And adopters about we next market level to from seeing response from of Heidrick client with to and our feedback transform work course we've higher executive results months journey, forward on-demand to we're The look with additional firm, incorporated initial clients. with our other program and

time team our like to our turn contributions November, the with I'd the we each our commitment serve. advance, day I'll we over advancing will towards proud important in also they hard service, from of and turn annual only in our how where all for and to Mark, not employees the that, call thank a to for participate long-term team. communities call to of Mark. our and day over want to event, work in back I global Before to firm global with but am close I as shareholder clients' which and contributions value. With many their their every this I deliver In generating the success give

and afternoon, good for you today. joining call you, Krishnan, everyone. our Thank Thank

hurt $X.XX. $X in in anticipated achieved kept shareholders, of constant Irrespective, It's last for of over fifth time generated focused This through quarter again also this has record-breaking revenue to that quarters this pleased the have million year our we XXXX an behind operating year-to-date management the for delivering currency phenomenal EPS has is is entire we X we're income profitability market excess basis marks this that on to given mentioned, $X. the a posting bottom quarterly strengthening XXXX, of EPS steadfastly currency company Krishnan only Asia by year's very our markets. operating slowdown, incredible which diluted noteworthy income generated past the the strong team this as line and on with dollar Europe the trend reported pace As achievement.

the quarter, to are vacation holidays from summer moderation speaking ongoing through continued our strengthening revenue impact the U.S. the quarter models as fourth as in performance recognition our the our works its guidance Before as third reflects of dollar. well way impact the great

insights. transformation market downturn, well given challenging we have done looming much diversity to charter digital of through in with and stickiness account global positioned along about business, believe we the the our and market key we there's navigate from are dynamics, global IP, data the as past, growth technology, client and our reach, resulting While our

Net to was results. $XXX.X $XXX.X on to our to million, revenue net XX% Now details the and consolidated increase. provide revenue on let compared constant year. third of million was basis, Year-to-date, million revenue for net a year-to-date $XXX.X million me quarter last currency for some quarter increased a compared a basis $XXX.X $XXX.X revenue million,

to net Let first revenue where about Executive declined me X% turn Search, quarterly year-over-year.

However, year. essentially excluding was search with levels flat currency, revenue fluctuations of the last record

regions, engagements, decreased decreased our the versus in offset engagements. by of decreased X.X% reflecting and X.X%. an number value of Asia the year-ago at Looking Europe period, X.X% Pacific the Americas increase the

on on-demand cyclicality and only rapidly growing remind but as some in this provides talent in key overall our talent with of sizes below remained time. in is continue accounts, continued However, was was an as along economic on-demand third last year, to expect around are Nevertheless, anticipated talent remains the on revenue while growth business, seeing on-demand I'd XXXX, but long the in $XX.X seen post-pandemic in the $X.X comfortable extensions, all use. all talent basis, quarter Therefore, year, Europe results driven it's our to growth segment strong, to beginning the product Asia initiative support across million strategic consistency third were project quarter size, reflective is Consultant given in invest we increasing of increase $X.X slowdown. offset increasing our average continue the as and by levels currency expanding is of for fuel and demand rate second serves above market pre-pandemic seeing and the down component investors bottom productivity this and a seasonal high-end becomes aggregate that flat, our will business not X.X% X.X% but by offset time, was but kept line. and the $X.X a million we of expect a higher margin strategy penetrate settle of executive this margins growth services future value metric of up below to talent on-demand as in our unsustainable environment niche engagements. business to of we XXXX. On-demand last the the X% of industries to to recognizing over that percentage means which is of expand to we're up of XX.X% in on-demand search. The our of invest accretive focusing quarter expect which million was the key and a and more over this also and down versus dollars by be vision. the diversification of importantly, normal with dilutive and the This the of from segment both from million which conditions XXXX, to was benefits constant higher space the driven most are revenue, and as $X million to be where company clients new strong essentially reflect we becoming

to would to this believe the results apply time. we significant on-demand be business true revenue if We one PE to an of again, EBITDA trailing see were $XX the potential talent But given continue of over million. XX-month missed multiples today's of nascency or with growth value

the X.X% increased market. the prior currency Headcount particular we in to leadership quarterly by capitalize constant Heidrick market Consulting driven in we're and to demand a is opportunities turn me additional let This where tight in anticipate assessment to increased year-over-year, labor pleased projects. development on also and hiring Heidrick and revenue a on or Heidrick seeing, Consulting report period year the from primarily Consulting, we're Now XX.X% basis.

from company, in backlog referrals search. and quarter Heidrick highs, the Importantly, collaboration within to revenue this third remained segment its over historical benefit continues Consulting's cross of strong from the with XX% executive by driven

increased and Turning to salary quarter. lower offset the to Fixed compensation to or due related were $XX.X and retirement partially in third X.X% to Variable and lower plan compensation million and the benefits operating year's in decreased by by and last million production retention expenses. compensation Salary in taxes quarter benefits, and to talent compared quarter. million decreases costs. $XX.X $X.X base payroll acquisition deferred

low we'll is expensed rate full basis into expect of year were and and a we quarter future. reported in third and anticipated in be results development expenses research as and invest part $XX.X revenue. market. XXX profitability run our administrative to last million in As evident to improved have in stage, At the net to expenses we a internal was the and continued as product compared amortized line third exceeded to related in introduction XXXX, evaluate annual general increase, XXXX, that million, with benefit on in XX.X% to million Year-to-date, initiatives our research was revenue, the report our spend and of this and upon it a compared will the which of we continue X.X% quarter investment $XX million XX.X% be $XX.X expectations result, and we've very XXXX. planning of of our this remained similar in process. million focus third we $X.X associated General or second the development business to capitalized continue the of to basis, as for even XX.X% points salary pleased Despite with to quarter R&D in We're the for R&D on down $XX.X million quarter quarter, XXXX. In revenue administrative from development. percentage expenses year, primarily sequentially $X.X $XX.X travel the third the at and million of to

where strong even earlier. invested million $XX.X R&D a of resulted margin EBITDA $XX.X $X.X margin discussed in XX%. This EBITDA, with at and was was XX.X%, operating also though at was we in adjusted strong million million, it income operating Specifically, robust income

company's Our consistently trend subject any quarter, tax We third to the effective rate tax rate of and XX.X% continue anticipate rate of quarter changes. effective into year-to-date mid-XX% fourth the in law to the tax continues a range. was tax XX.X% this X-year to low

income for in the that a period quarter we're was to year. $XX.X On last and million income $XX.X net earnings was very million to to Finally, $X.XX. million diluted year-to-date net same basis, report pleased $XX.X the share compared per rose

million. cash Now I'd balance shows the like third to quarter highest $XXX turn our which to sheet, of balance company's

Employee As are strategic a no employee quarter, reminder, balance the opportunities. with about future With our sheet, very initiatives and positioned to and cash bonuses our accrue. loyalty as in associated first costs. paid along well position through bonuses year builds the typically the debt taxes be we're to our fund growth on

access We our a have liquidity robust complete position. $XXX putting receivables, and credit to million strong our cash facility and in

our between we $XXX revenue at the $XXX fourth million expect Looking to range quarter million. guidance,

is which will note range our given embarked the to do of You that we broaden business, pace revenue $X another on and diversification the upon. that billion scale in have strategy our we

built have summary, quarter. In down and businesses to near comparisons, year-to-date the pleased into term, extremely new for our in slow global fourth in normal We dynamics both coupled we're considering search the that impacts ago seasonality quarter third tremendous and with the with performance. an executive year expectation market

on the exciting both search in improvements a of to accelerating an everyone will model resilient and terrific the which and is on businesses, and line. of the management give in journey We're our Our meaningful growth record-setting which profitability more at the of business we accomplishment continue company the our nonsearch transformation company. We're focus business by deliver future. turn in our XXXX, bottom performance and range the path within us our continues to

opportunities, be take market our great on With questions. create expect have and capitalizing strategic are will the to Operator, that, shareholders. your you. further we our strength, position we right which over and I given in to for highly value Lastly, Krishnan liquidity flexibility happy to

Securities. question comes of Tobey line Sommer Your with Instructions] first [Operator from the Truist

to you I saw about consultant and settle out basis? In confirmation productivity, is expecting measure annual annual production search, XX%. are down a like at terms of on executive what the per sequentially

that as where you next of you the kind see in couple wondering of get quarters? So

Mark. it's Tobey,

to the answer the here's question. So

think made of really long first in $X.X and over too that know, you I was XXXX term. one the as we just the into is, high productivity of XXXX, the not rate million comments million, and $X.X sustainable

the XXXX, technology of able or in we We million comments back achieved the that give how through $X.X also at like and going made still are permanent redevelopment saw XXXX, us gains our executive productivity just have be process some we either search that gains. we we do to to feel

view would pretty But a million will as consistent we go minus we think is $X it This as steady or months. that around of plus probably Our what know, XX kind maintain into of state. you trailing consider more we of quarter. guiding productivity our fluctuate potentially, coming recessions, safe a course, little think first of in levels. we the to that bit between a cetera, our out recessions, that's I expansions do pretty But be still range promotionals those et and

think add I you gained there. Krishnan, to we've know I want if So to don't some that.

shot up think I productivity us. look, levels No, The sense that XX%. over makes well -- by to that

think So I $X feel wasn't we that pretty sustainable. million, But that comfortable. about

look geographies weakness you within those geographic of distribution strength and as basis confirmations the give relative executive out, And at a try color to on the search? among we the on any we or could kind us model of

Yes.

And maintained pace Europe been in a happy very that, Mark. very way. I has look, with start speaking, me Let with think we've nice relatively its Europe.

pace miles to been a XXX that. running a still really in rather mentioned, were in... declines that as running Americas, on what pleased But think So to good we've hour. forecasting as some big if us saw, XXXX, there's not we over running faster we we're look, boundary kind still but than in here XXXX. there, was going growth a cetera, drew it of I which here seen for still war We lines happens, engine. In We're an we're remains be et still, in with the we at that there's

a We've bit seen some than bit Europe. there's strength and out less usual. been I out Obviously, actually of of strength mean little the seeing Americas are little coming a Asia. different coming of mix in a we

going look they're I parts So shuffle still that from weight and and pretty XX differently they're as what we've a over months COVID. because the we're getting overall, imagine would bit mixes through kind of strength those been some of regions. just to the that's consistent we of little of watching coming us the up, particular the But post last

a don't think seen shift exception inflationary that with amounts. of I So sense in we've big the minor

Okay.

some and You environment indicated with capitalized your and the but In you're that growing so indicators stable initiatives of your pretty more doing on planning. managing differently? transformational in the the stay expect meaningfully, shuffle guidance forward you do forth down, this coming year any investments rapid emerging as in into money-losing to of some kind sequentially down next maybe of look your businesses deck you you

see that today a reasonably able look, believe Krishnan for Tobey, about to going solution to about some a of it us we places acceptance returns. the required. macro, mean make are see here. where look well. labor talent market. valued. to an market variable as market, a we I as existed is seeing in if that on-demand before the investments we I that need talent hasn't be we're entering variable a strong it investment Yes, at the it's We're long tight lens, think see we be the costs being think is think We to way We Yes, markets think through we we those

large of up. So well. people are research shows opting model And as that into groups us going external awareness this is

is enterprise So and investing benefit us long it for to the hey, that term. bullish over leaves the say, the scaling and growing of the and in shareholder

in things not as continue that do we're double this I managing the we going to that. to we're be focus continue thesis on market. going this We'll we where to like continue see going of to and that. we'll okay? down we've we're on But the market, have, that. been ahead to get prudent investment think costs quarter, And So be on our thoughtful to the But

question Kevin next Barrington from of line comes Research. Your with the Steinke

evolving So towards about you you parse you weighted unsustainable of how out macro trying little slowdown maybe XXXX was confirmation just more inevitable more anticipated. talked just market is to in slowdown record slowdown clients? I'm bit high market do the quarter of the think concerns it among those the Is recessionary a concerns. kind that off levels normalizing coming think to versus how the much had is release kind seen You that and of in you mentioned first of just press your you looming the the related here?

of kind factors just So of seeing? you're you the weight of would get those to market terms in a slowdown wanted sense how

Yes.

to So that, again, part kind currency, I think at big of playing look taking thing a on clearly the been constant of first remember that. is you Kevin, when very are dollar a actually the has

when in been So look this when QX we take our compared it at terms actually has year. revenue side a year look at last to the you revenue pretty flat of it, performance right, of the

too of part talent become impacting want European dollar and our business. with as on-demand So who's both to because Asia, has well platforms that underscore Consulting, that's business bigger has they our don't really of a think been important is kind which much got the and Heidrick I I Europe European/Asia a

The we that slowdown even multiples The XXXX. higher what So seeing I of element. wasn't it, off XXXX. the in think are of levels and XXXX revenue clearly and watching were and much it's just very we these XXXX we're there's were itself insanity than that unanticipated, still in but slower expecting and

we think insanity us in focus is the is I even the we crisis. focus our really done, technology the on our can reshaped that strong profitability on kind job to we it, good team, play, did reshaped which a of really what put the think talent. acute margins, levers making I COVID added side or management different I did estate real This we real of in strategy, levels estate pull, we've excellent of does back maintaining that understand job on-demand which that think, single-digit really a sure of

flows and buoy job a we've done think this. kind ebbs of good to the of in I that ourselves really during

are be And we positioned maintain attached if relationships, So back historical to work transactional, expected, much we, it we've can the to course I of think into a maybe Krishnan, more in could were pretty certainly our again, think, much to is ourselves slowing and say with how I good I more we think how during these we It's Krishnan days it. which down. our it like applying times that. clients versus go

no, No, Yes. no.

And introduce over offerings able to our We sticky. stickiness really are relationships in service the working of well. the think outstanding. other and that allows to additionally I that as which there, the programs of we're accounts I measure be really well, kind are think,

I one them confidence some think solutions. is things talent us market. So from of changed. perspective, need the People fundamentally that where the with problems in that we are a tight are okay? and solve haven't for gives to a labor we they're fundamentally, looking

of supply it's side there And okay, supply a so is the terms issue that. side, in still,

we're to continue continue the in market, going demand to a to of So result that. to in be as we're be and going

Great. right. All

guess if think even perform you as I So I given guess like sounds slows. remain and labor it the it continues could to tight I mean, economy yes, market pretty you the well, tight,

this XXXX. than draw here, that's to look at said performing at some and at trying this time to and Yes. ourselves a talk market greater I mean, XXXX into we've I we here. as in level we see thing clients We again, the our guardrails mean, point as

those well. us markets thought pretty as heady were we So for

So good performance. a that will be we think

to to just the you revenue trying Mark, a million a $XX.X sense currency currency quarter specific And results, constant get third $XXX.X on to there. mentioned Okay. basis, million. of

you more the currency had that belief imply the weakened headwinds mean, expected already some your progressed? million was as currency constant built that guidance currency to $XXX within quarter that range. you But that I million My is than So does $XXX into range.

So the the does headwinds million you imply $XXX.X expected? were greater had that than

million revenue to at currency year? fundamentally compared questions. our was look what same those one first which constant when answer is was, million, first the I is slowing important we that I you a last performance, think, at $XXX I do think the million have $XXX.X we No, to look we periods, the aggravating trying speak. the you what you have or do think been these situation, is so down my actually lot that's And because And really of in $XXX.X between currency Like I how thing would is, X%. would think search. to can at is answer been X different see the comment up and versus period And is it's

basis, think, last would $XXX million versus on we third currency quarter, a flat. I done identical million almost have year's constant $XXX

currency, seeing is all while it in looks that's year, a last was to on QX, QX result that So you're to it trying actually I'm down the constant convey flat. pretty

about X the we And think of saw rate probably is we FX did part the I QX QX's a actually first that's if then XXX there different reported. question how is the use the QX versus that between periods? $XXX FX from The change million were FX your answer. answer to we to

terms we in over range end had the a at bottom So the about $X would have that again, of then relate guidance. impact situation. of And just currency the to our itself really million it been

off. a was bit it So

in we to much going Now was it the took of was what vacation. A it to within was try the range of thought be great pretty typically, somewhere. down. because August last in that July, like is a weeks July, X lot much to people with be shutting people bit we'd off little unanticipated. which slowness But the pretty

very rush I I slow, don't think right think it. September rolled in people into and back

bit we were a we caught think I of they number that, were weren't little drastic on seeing. again, really that off So, differentials but

I X bit got in is December, QX, imagine, as again, lighter is the more you it's quarter always with drag. typically the real of in then because you've numbers go a and least, of holidays there a a the little then we same. And pace. And typically, currency holidays major Thanksgiving those vacation and same type the down normally can great of think about there with answer the see would at U.S.

QX think the QX. the $XXX that and I for drop about $XXX sounds between million QX when again, about to million, million right $XXX from a So

there. did at uncommon XXXX $XXX XXXX, or in slowing exceeding million, we $XXX It's revenue, I of million, rates, those and where and believe, are But still very certainly please those nothing mind, strong Kevin, far a respectively. So million pace. keep $XXX just again,

quarterly hope rates, well So we're basis. annual so helps. a still those above I that that's that on even run

helpful. yes, No, Yes. understood. I That's

tie so to search third ago And and quite would relative heightened you've of help you out talked can increased you the a know I in vacation confirmations XX% the time vacation called that yes, the you can specifically decline don't think decline meaningful to in quarter? you proportion quarter a this can there the year about bit Do time. it, tie, you do but if you

me, how we we when mean, you have I levels, the at take a difference. months we type excuse kind summer very at that of performed big answer the of saw comparative, again, a would similar absolutely, similar back, at you when using look look is a had

in year. metrics again, we say So equation. what about, is looking at I'd that as XX% -- of the really was of vacation talked this we side QX compared to looking that at XX%, we I in kind just of QX were just about, lot great And were the higher probably, about the we saw think you're a last year

All right. Great.

And and a the launches of like I come offerings series get digital the been you and to doing in going of And It maybe product Just Navigator there. we lastly, spend are or sounds a sense eventual be, going to that Okay. in into 'XX. broad a about think as the the nearing talked as XXXX guess, trying out digital you've launch? that to offering that will side? number on guess, how pilot Heidrick the in an I R&D services about broader should of then first

Yes.

We're think as ones think first chunky appropriate about about I several. look, So big of ones. than that's to thinking the little it though small rather

now, Heidrick the So amount into of we've beta first Navigator investment and done in that. is right

learning get launch. go learnings you'll on the into we can before going a of it of really investment little additional So a kind probably back based do through product cycle it out to

afterwards, a parallel, ideas got right. on will So we've So subsequently which we're of think be I in clear, other sequenced couple to okay? that's be working

about going after here. that what I think ones it. is we're But big think are way meaty generally, right to that's the and

Your Sidoti. Riddick comes question from with next line Marc the of

evening. Good

little was you're about place industry of bit I So in sort sort of verticals, you in the areas. seeing if what's and have taking technology the differentiation which wondering touch some in you financial a could the slides of around

to You life are be expectations little a if to what had your just commentary forward similar that. and could composition fairly maybe on as far you maybe going contributions as doing bring talk and bit up a sciences. that are potential But maybe wonder seeing I little about Or specifically industry areas what could is us you're speed on better? some maybe you

off Sure. got you then to add. Mark, let probably that thoughts kick me and some

that Inside So industry Sciences for if sizing we some for where quarters, I and we've structure in to continue our broadly well. speaking, clearly opportunities growth growth think, remain at couple and Healthcare, same we saw least was for of will we look IT got out transaction mean think saw hot, I see terms as of the still a we'll asset fairly industrial fintech Life management, technology, in the like finance, that to consumer banking. we the in places things opportunities is probably services that recently. spike robust and us, closer the were of relatively are FS, things kinds These

continue. that expect We to

hear a care opportunities biotech lot inside consumer there. opportunity we've whole as Healthcare, inside in Sciences, well. saw The hospitality over and got supply strength products managed so and affords industrial. We as transportation about opportunity You logistics, chain, well. Life that's And space an

some that. you I will don't future, to I these, at the least So expect add continue. of know, if want to Mark, in foreseeable

QX, slowdown thing at board. much the to across pretty only is add compared there I of gradual when we and would The look QX you kind saw pretty

to was the of proximity, consumer a think kind all financial are when GTS, side one summer months. good said, driving services, really what last several reasonable down we're kind those. look very, during the August, the was strength was really of that again, more fundamental of very, think is and a you of But months, quiet different in that some I of only them which in maintained X again. And weeks July through just some that at the month really certainly I of healthcare, the just as that's the slowdown very I

don't think that. specify rightly specify I I Krishnan So one as would articulates I could

getting have As as start of QX. we'll started, good how into well the a looking, we're as some which seeing on you see to to go a will but reshape industries. what But least not now, economic things as XXXX, and depending better yet indication at understanding kind themselves outlook other right start it. is just of your of the It's industries into not perform we're

I tech, beginning still. to that would we're And tech themes only as as vertical, clearly not there Yes. across see horizontal, tech, tech, the just add, a healthcare, are consumer so out industrial cutting a big

of few to activity that view? changes of I the top or Great. as Or wondering sort last going weeks? little still order Are of Have touch those some types And bit to was into these a clients then of is come if you those as in changed bit on beginning sort assignments. far types make your of to gradually flow sort could see priorities? the of we a

come. still That's to Yes.

of of seen kinds not in We getting. terms the any have marked we're change that projects

I are some think quite that hot. still there's

If hot, functional you the quite these are quarter on were double as they CFO's click last all positions, well. still remain

So...

And side. I was little expectations wondering your bit a touch then if about headcount could you on

seeing planning me maybe and many how forward forward the I year think end to looking if right what I I we're now, open remember with and there? going up of about year-over-year, but windows bear of it's with X% you're X%, sort correctly about too think sort

Yes.

important growth businesses, of for look it we roughly January frame, if will think been I think with promotion on I It's we the So continue an cycle. we element will as different at us. our time

that of that through And partners will so new a come class we'll have process.

search pockets and executive see. that hiring We've we some gaps Our will strategic. be got very

pretty on-demand it's going headcount. from continue with as we to of select sales referenced addition talent got in be perspective. sales to opportunities, We've to that grow that So

leadership of Consulting grow along journey opportunity support. So we'll lines an those continue to as the that well, continue the particularly we to make gives Heidrick to us investments.

very in we as growth going it. at to our targeted So we're be look

but And still pockets. target so it to be on growth, we is enormous that I don't think going headcount see

if how you Maybe maybe of there's Or can might given pipeline maybe sort be may that is be? your that update for the you speed be there you what current sort of you little something right sort is for there would what sort environment you're maybe acquisition of about can things what up a on bring if might now? think room like of your you? And talk to potential to look or sort us bit appetite at maybe of could desirable, thoughts some opportunities looking

acquisition. think there's ways different at the kind that of we're looking I X

looking in first think markets extra seeing on is what's I cover. the need [indiscernible], air and the we're always one think going where we and on we

again, And that element to we I and pointed our Heidrick be look with and to we have really, of what is path we're that in again, think of and really vendors continue they to see help one that partnerships excellent that how versus wanted services probably which going think into going an rightly this at is those. future of an delivering Krishnan working making acquisition. the and Digital Heidrick it the kind is bit the and It's investment us part products as to to on and be they market. out, of more their acquisitions specific than with benefit think add our is, allow probably other could that's as Consulting do really a investment I just

depending what's down market, but people's think, the if at of that mean, I you have is at point, to answer look think always entertain I look, the it's on conversations but the think more is I execute plus intriguing started can valuations, normalized. So on right X which Mark, I kind into have come X that, they been and around that expectations, this willing really it's, X to engaging same. And The really conversations. we equal to get become interesting then

for no like CEO, Krishnan call the to back closing being turn remarks. I'd Rajagopalan, There to questions, further

again journey, much. we're our Thank ongoing you, you progress next pleased quarter. diversification We're and support. transformation, our we're very we you the participation and on excited updating everyone, forward on making your and look so with for Thank continue to to

call. concludes This today's conference

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