Heidrick & Struggles (NASDAQ: HSII) reported Q1 EPS of $0.44, $0.05 worse than the analyst estimate of $0.49. Revenue for the quarter came in at $174.85 million versus the consensus estimate of $168.56 million.

First Quarter Highlights:

• Net revenue of $171.5 million was in-line with record year-ago results of $171.6 million
• Operating income grew 10.7% to $18.2 million compared to $16.4 million in 2019
• Adjusted EBITDA grew 14.6% over prior year period to $23.6 million
• Operating margin expanded 100 basis points to 10.6% compared to 9.6% in last year\'s first quarter
• Adjusted EBITDA margin expanded 180 basis points to 13.8% over prior year period
• General and administrative expense, as a percent of net revenue, improved 120 basis points to 18.8% from 20.0% in the prior year period

"We generated revenue in the upper half of our guidance range and effectively managed expenses, driving strong operating income growth of 11%. Our team continued to deliver solid results, despite the onset of the COVID-19 pandemic and typical seasonality at the end of the prior quarter," stated Heidrick & Struggles' President and Chief Executive Officer, Krishnan Rajagopalan. "We expect to successfully navigate through the current adverse global conditions by leveraging our strong balance sheet, our market-leading position and our cycle-tested team of professionals. Specifically, our teams continue to leverage our proven and distinctive, data-driven and technology-enabled talent and leadership solutions to proactively and seamlessly address our clients' needs. Our focus on the top leaders of organizations yields many positive underlying demand characteristics, particularly during times of stress. In today's operating environment of constant change and uncertainty, leaders have the ability to accelerate their business performance and transform with agility. As always, we are committed to supporting our clients as their trusted global advisor."

2020 Second Quarter Outlook

Given the continued uncertainty due to the COVID-19 pandemic, the Company believes it is prudent to refrain from providing financial guidance for the 2020 second quarter at this time.

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