Technology

Heidrick & Struggles Reports Second Quarter 2024 Results

Published

2 months ago

July 29, 2024

Delivers Strong Revenue Performance with Robust Profitability

Restructuring for Accelerated Growth Implemented in the Quarter

Declares $0.15 Per Share Cash Dividend

CHICAGO, July 29, 2024 /PRNewswire/ — Heidrick & Struggles International, Inc. (Nasdaq: HSII) (“Heidrick & Struggles”, “Heidrick” or the “Company”), a premier provider of global leadership advisory and on-demand talent solutions, today announced financial results for its second quarter ended June 30, 2024.

Second Quarter Highlights:

Net revenue grew to $278.6 million driven by all businessesAdjusted EBITDA was $28.8 millionAdjusted EBITDA margin was 10.3%

“Our team delivered a strong second quarter. In a very complex operating environment, clients continue to need help engaging, assessing and enabling critical leadership talent – and our world-class colleagues met those needs with energy and creativity. This work helped propel our second quarter revenue beyond the high end of our outlook range while generating a double-digit EBITDA margin,” stated CEO Tom Monahan.

“Even as we continued to deliver value to clients, we also made important changes to our leadership team and staffing levels. As a result, we enter the second half of the year with more targeted solutions and better alignment of our organization with client needs. Going forward, we are tightly focused on accelerating returns from our recent investment cycle and on creating unmatched value for clients, colleagues and investors.”

2024 Second Quarter Results

Consolidated net revenue of $278.6 million compared to $271.2 million in the 2023 second quarter. The Company experienced revenue growth in On-Demand Talent, Heidrick Consulting, and Executive Search in the Americas and Asia Pacific, partially offset by a decrease in Executive Search in Europe.

Adjusted EBITDA was $28.8 million compared to $34.9 million in the 2023 second quarter. Adjusted EBITDA margin was 10.3%, compared to 12.9% in the 2023 second quarter. In Executive Search, Adjusted EBITDA was $52.7 million compared to $53.2 million in the prior year period. In On-Demand Talent, Adjusted EBITDA was a loss of $1.6 million versus a gain of $2.6 million in the prior year period. In Heidrick Consulting, Adjusted EBITDA was a loss of $1.4 million compared to a loss of $1.7 million in the prior year period.

In the 2024 second quarter, the company recorded a non-cash goodwill impairment charge of $16.2 million primarily related to the Company’s On-Demand Talent segment, a $6.9 million restructuring charge and a $1.2 million earnout fair value adjustment. In the 2023 second quarter, the Company recorded a non-cash goodwill impairment charge of $7.2 million associated with the Company’s Heidrick Consulting segment.

Including these unusual charges in the 2024 second quarter, net loss was $5.2 million and diluted loss per share was $0.25. Excluding these unusual charges in both the 2024 and 2023 second quarters, adjusted net income was $14.1 million and adjusted diluted earnings per share was $0.67, with an adjusted effective tax rate of 40.9%, in the 2024 second quarter. This compares to adjusted net income of $15.0 million and adjusted diluted earnings per share of $0.73, with an adjusted effective tax rate of 37.7% in the 2023 second quarter.

Executive Search net revenue of $210.0 million increased 1.5% compared to net revenue of $206.8 million in the 2023 second quarter. Excluding the impact of exchange rate fluctuations, which negatively impacted results by 0.4%, or $0.9 million, net revenue increased 2.0%, or $4.1 million from the 2023 second quarter. Net revenue increased 6.1% in the Americas (up 6.3% on a constant currency basis), decreased 12.0% in Europe (down 11.7% on a constant currency basis), and increased 0.7% in Asia Pacific (up 3.3% on a constant currency basis) when compared to the prior year second quarter. All practice groups, except for Consumer and Industrial, exhibited growth over the prior year period.

The Company had 415 Executive Search consultants at June 30, 2024, compared to 423 at June 30, 2023. Productivity, as measured by annualized Executive Search net revenue per consultant, was $2.0 million compared to $1.9 million in the 2023 second quarter, reflecting a lower number of consultants combined with higher revenue. Average revenue per executive search was approximately $151,000 compared to $146,000 in the prior year period. The number of search confirmations decreased 1.6% compared to the year-ago period.

On-Demand Talent net revenue of $41.9 million increased 6.8% compared to net revenue of $39.2 million in the 2023 second quarter. Excluding the impact of exchange rate fluctuations, which negatively impacted results by $0.2 million, or 0.5%, net revenue increased 7.3%, or $2.9 million from the 2023 second quarter.

Heidrick Consulting net revenue of $26.8 million increased 6.2% compared to net revenue of $25.2 million in the 2023 second quarter. The Company had 85 Heidrick Consulting consultants at June 30, 2024, compared to 89 at June 30, 2023.

Consolidated salaries and benefits decreased $1.0 million to $177.9 million compared to $178.9 million in the 2023 second quarter. Year-over-year, fixed compensation expense decreased $3.0 million due to decreases in separation expense, talent acquisition and retention costs, retirement and benefits expenses, and expenses related to the deferred compensation plan, partially offset by increases in stock compensation, and base salaries and payroll taxes. Variable compensation increased $1.9 million due to an increase in consultant production. Salaries and benefits expense was 63.8% of net revenue for the quarter, compared to 66.0% in the 2023 second quarter.

General and administrative expenses increased $5.9 million, or 14.7%, to $46.5 million compared to $40.5 million in the 2023 second quarter. The increase was due to the 2024 Global Conference, earnout fair value adjustments, professional fees, office occupancy, hiring fees, IT, and marketing, partially offset by decreases in intangible amortization, travel and entertainment, and the use of external third-party consultants. As a percentage of net revenue, general and administrative expenses were 16.7% for the 2024 second quarter compared to 14.9% in the 2023 second quarter.

The Company’s cost of services was $29.7 million, or 10.7% of net revenue for the quarter, compared to $25.3 million, or 9.3% of net revenue in the 2023 second quarter. This primarily related to an increase in the volume of On-Demand Talent and Heidrick Consulting projects.

The Company’s research and development expenses were $5.6 million, or 2.0%, of net revenue for the quarter compared to $5.7 million, or 2.1%, of net revenue for the second quarter 2023.

Net cash provided by operating activities was $62.5 million compared to net cash provided by operating activities of $46.9 million in the 2023 second quarter. Cash, cash equivalents and marketable securities at June 30, 2024 was $296.9 million compared to $239.0 million at June 30, 2023 and $478.2 million at December 31, 2023. The Company’s cash position typically builds throughout the year as employee bonuses are accrued, mostly to be paid out in the first half of the year following the year in which they are earned.

Dividend

The Board of Directors declared a 2024 second quarter cash dividend of $0.15 per share payable on August 22, 2024, to shareholders of record at the close of business on August 9, 2024.

2024 Third Quarter Outlook

The Company expects 2024 third quarter consolidated net revenue of between $260 million and $280 million, while acknowledging that continued fluidity in external factors, such as the foreign exchange and interest rate environments, foreign conflicts, inflation and macroeconomic constraints on pricing actions, may impact quarterly results. In addition, this outlook is based on the average currency rates in June 2024 and reflects, among other factors, management’s assumptions for the anticipated volume of new Executive Search confirmations, On-Demand Talent projects, and Heidrick Consulting assignments, consultant productivity, consultant retention, and the seasonality of the business along with the current backlog.

Quarterly Webcast and Conference Call

Heidrick & Struggles will host a conference call to review its second quarter results today, July 29, 2024 at 5:30 pm Eastern Time. Participants may access the Company’s call and supporting slides through its website at www.heidrick.com or by dialing (800) 715-9871 or (646) 307-1963, conference ID# 4805686. For those unable to participate on the live call, a webcast and copy of the slides will be archived at www.heidrick.com and available for up to 30 days following the investor call.

About Heidrick & Struggles International, Inc.

Heidrick & Struggles (Nasdaq: HSII) is a premier provider of global leadership advisory and on-demand talent solutions, serving the senior-level talent and consulting needs of the world’s top organizations. In our role as trusted leadership advisors, we partner with our clients to develop future-ready leaders and organizations, bringing together our services and offerings in executive search, diversity and inclusion, leadership assessment and development, organization and team acceleration, culture shaping and on-demand, independent talent solutions. Heidrick & Struggles pioneered the profession of executive search more than 70 years ago. Today, the firm provides integrated talent and human capital solutions to help our clients change the world, one leadership team at a time. ® www.heidrick.com

Non-GAAP Financial Measures

To supplement the financial results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Heidrick & Struggles presents certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of comprehensive income, balance sheets or statements of cash flow of the Company.

Non-GAAP financial measures used within this earnings release are Adjusted EBITDA, Adjusted EBITDA margin, and consolidated net revenue excluding the impact of exchange rate fluctuations (referred to as on a constant currency basis). These measures are presented because management uses this information to monitor and evaluate financial results and trends. Management believes this information is also useful for investors to evaluate the comparability of financial information presented. Reconciliations of these non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with GAAP are provided as schedules attached to this release.

Adjusted EBITDA refers to net income before interest, other income or expense, income taxes, depreciation and amortization, as adjusted, to the extent they occur, for earnout accretion, earnout fair value adjustments, contingent compensation, deferred compensation plan income or expense, certain reorganization costs, impairment charges and restructuring charges.

Adjusted EBITDA margin refers to Adjusted EBITDA as a percentage of net revenue in the same period.

Adjusted net income and adjusted diluted earnings per share reflect the exclusion of goodwill impairment, restructuring charges and earnout fair value adjustments, net of tax.

Adjusted effective tax rate reflects the exclusion of goodwill impairment, restructuring charges and earnout fair value adjustments, net of tax.

The Company evaluates its results of operations on both an as reported and a constant currency basis. The constant currency presentation is a non-GAAP financial measure, which excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding its results of operations, consistent with how it evaluates its performance. The Company calculates constant currency percentages by converting its financial results in a local currency for a period using the average exchange rate for the prior period to which it is comparing. This calculation may differ from similarly titled measures used by other companies.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding guidance for the third quarter of 2024. The forward-looking statements are based on current expectations, estimates, forecasts, and projections about the industry in which we operate and management’s beliefs and assumptions. Forward-looking statements may be identified by the use of words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “outlook,” “projects,” “forecasts,” “aim” and similar expressions. Forward-looking statements are not guarantees of future performance, rely on a number of assumptions, and involve certain known and unknown risks and uncertainties that are difficult to predict, many of which are beyond our control. Factors that may cause actual outcomes and results to differ materially from what is expressed, forecasted or implied in the forward-looking statements include, among other things, our ability to attract, integrate, develop, manage, retain and motivate qualified consultants and senior leaders; our ability to prevent our consultants from taking our clients with them to another firm; our ability to maintain our professional reputation and brand name; our clients’ ability to restrict us from recruiting their employees; our heavy reliance on information management systems; risks arising from our implementation of new technology and intellectual property to deliver new products and services to our clients; our dependence on third parties for the execution of certain critical functions; the fact that we face the risk of liability in the services we perform; the fact that data security, data privacy and data protection laws and other evolving regulations and cross-border data transfer restrictions may limit the use of our services and adversely affect our business; any challenges to the classification of our on-demand talent as independent contractors; the fact that increased cybersecurity requirements, vulnerabilities, threats and more sophisticated and targeted cyber-related attacks could pose a risk to our systems, networks, solutions, services and data; the fact that our net revenue may be affected by adverse macroeconomic or labor market conditions, including impacts of inflation and effects of geopolitical instability; the aggressive competition we face; the impact of foreign currency exchange rate fluctuations; our ability to access additional credit; social, political, regulatory, legal and economic risks in markets where we operate, including the impact of the ongoing war in Ukraine and the conflict in Israel and the Gaza strip, the risks of an expansion or escalation of those conflicts and our ability to quickly and completely recover from any disruption to our business; unfavorable tax law changes and tax authority rulings; our ability to realize the benefit of our net deferred tax assets; the fact that we may not be able to align our cost structure with net revenue; any impairment of our goodwill, other intangible assets and other long-lived assets; our ability to maintain an effective system of disclosure controls and internal control over our financial reporting and produce accurate and timely financial statements; our ability to execute and integrate future acquisitions; and the fact that we have anti-takeover provisions that make an acquisition of us difficult and expensive. We caution the reader that the list of factors may not be exhaustive. For more information on these risks, uncertainties and other factors, refer to our Annual Report on Form 10-K for the year ended December 31, 2023, under the heading “Risk Factors” in Item 1A. The forward-looking statements contained in this press release speak only as of the date of this press release. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts:

Investors & Analysts:
Suzanne Rosenberg, Vice President, Investor Relations
srosenberg@heidrick.com

Media:
Bianca Wilson, Director of Public Relations
bwilson@heidrick.com

Heidrick & Struggles International, Inc.

Consolidated Statements of Comprehensive Income (Loss)

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

June 30,

2024

2023

$ Change

% Change

Revenue

Revenue before reimbursements (net revenue)

$ 278,626

$ 271,225

$ 7,401

2.7 %

Reimbursements

4,251

2,552

1,699

66.6 %

Total revenue

282,877

273,777

9,100

3.3 %

Operating expenses

Salaries and benefits

177,892

178,916

(1,024)

(0.6) %

General and administrative expenses

46,453

40,514

5,939

14.7 %

Cost of services

29,696

25,306

4,390

17.3 %

Research and development

5,605

5,658

(53)

(0.9) %

Impairment charges

16,224

7,246

8,978

123.9 %

Restructuring charges

6,939

—

6,939

100.0 %

Reimbursed expenses

4,251

2,552

1,699

66.6 %

Total operating expenses

287,060

260,192

26,868

10.3 %

Operating income (loss)

(4,183)

13,585

(17,768)

(130.8) %

Non-operating income

Interest, net

2,612

1,913

Other, net

997

1,377

Net non-operating income

3,609

3,290

Income (loss) before income taxes

(574)

16,875

Provision for income taxes

4,583

7,893

Net income (loss)

(5,157)

8,982

Other comprehensive loss, net of tax

(2,094)

(75)

Comprehensive income (loss)

$ (7,251)

$ 8,907

Weighted-average common shares outstanding

Basic

20,259

20,010

Diluted

20,259

20,637

Earnings (loss) per common share

Basic

$ (0.25)

$ 0.45

Diluted

$ (0.25)

$ 0.44

Salaries and benefits as a % of net revenue

63.8 %

66.0 %

General and administrative expenses as a % of net revenue

16.7 %

14.9 %

Cost of services as a % of net revenue

10.7 %

9.3 %

Research and development as a % of net revenue

2.0 %

2.1 %

Operating margin

(1.5) %

5.0 %

Heidrick & Struggles International, Inc.

Segment Information

(In thousands)

(Unaudited)

Three Months Ended June 30,

2024

2023

Change

% Change

2024
Margin1

2023
Margin1

Revenue

Executive Search

Americas

$ 147,078

$ 138,563

$ 8,515

6.1 %

Europe

40,082

45,567

(5,485)

(12.0) %

Asia Pacific

22,807

22,649

158

0.7 %

Total Executive Search

209,967

206,779

3,188

1.5 %

On-Demand Talent

41,895

39,240

2,655

6.8 %

Heidrick Consulting

26,764

25,206

1,558

6.2 %

Revenue before reimbursements (net revenue)

278,626

271,225

7,401

2.7 %

Reimbursements

4,251

2,552

1,699

66.6 %

Total revenue

$ 282,877

$ 273,777

$ 9,100

3.3 %

Adjusted EBITDA

Executive Search

Americas

$ 48,112

$ 46,079

$ 2,033

4.4 %

32.7 %

33.3 %

Europe

2,840

5,456

(2,616)

(47.9) %

7.1 %

12.0 %

Asia Pacific

1,740

1,630

110

6.7 %

7.6 %

7.2 %

Total Executive Search

52,692

53,165

(473)

(0.9) %

25.1 %

25.7 %

On-Demand Talent

(1,629)

2,587

(4,216)

(163.0) %

(3.9) %

6.6 %

Heidrick Consulting

(1,395)

(1,662)

267

16.1 %

(5.2) %

(6.6) %

Total segments

49,668

54,090

(4,422)

(8.2) %

17.8 %

19.9 %

Research and Development

(4,781)

(5,218)

437

8.4 %

(1.7) %

(1.9) %

Global Operations Support

(16,076)

(13,988)

(2,088)

(14.9) %

(5.8) %

(5.2) %

Total operating income

$ 28,811

$ 34,884

$ (6,073)

(17.4) %

10.3 %

12.9 %

1 Margin based on revenue before reimbursements (net revenue).

Heidrick & Struggles International, Inc.

Consolidated Statements of Comprehensive Income

(In thousands, except per share amounts)

(Unaudited)

Six Months Ended

June 30,

2024

2023

$ Change

% Change

Revenue

Revenue before reimbursements (net revenue)

$ 543,823

$ 510,542

$ 33,281

6.5 %

Reimbursements

8,152

5,354

2,798

52.3 %

Total revenue

551,975

515,896

36,079

7.0 %

Operating expenses

Salaries and benefits

352,305

337,775

14,530

4.3 %

General and administrative expenses

87,816

74,841

12,975

17.3 %

Cost of services

57,128

48,138

8,990

18.7 %

Research and development

11,320

11,186

134

1.2 %

Impairment charges

16,224

7,246

8,978

123.9 %

Restructuring charges

6,939

—

6,939

100.0 %

Reimbursed expenses

8,152

5,354

2,798

52.3 %

Total operating expenses

539,884

484,540

55,344

11.4 %

Operating income

12,091

31,356

(19,265)

(61.4) %

Non-operating income

Interest, net

6,698

5,162

Other, net

3,568

3,186

Net non-operating income

10,266

8,348

Income before income taxes

22,357

39,704

Provision for income taxes

13,482

15,136

Net income

8,875

24,568

Other comprehensive income (loss), net of tax

(6,185)

368

Comprehensive income

$ 2,690

$ 24,936

Weighted-average common shares outstanding

Basic

20,202

19,958

Diluted

21,061

20,701

Earnings per common share

Basic

$ 0.44

$ 1.23

Diluted

$ 0.42

$ 1.19

Salaries and benefits as a % of net revenue

64.8 %

66.2 %

General and administrative expenses as a % of net revenue

16.1 %

14.7 %

Cost of services as a % of net revenue

10.5 %

9.4 %

Research and development as a % of net revenue

2.1 %

2.2 %

Operating margin

2.2 %

6.1 %

Heidrick & Struggles International, Inc.

Segment Information

(In thousands)

(Unaudited)

Six Months Ended June 30,

2024

2023

Change

2024
Margin1

2023
Margin1

Revenue

Executive Search

Americas

$ 283,757

$ 265,890

$ 17,867

6.7 %

Europe

81,563

84,498

(2,935)

(3.5) %

Asia Pacific

46,128

46,878

(750)

(1.6) %

Total Executive Search

411,448

397,266

14,182

3.6 %

On-Demand Talent

79,752

70,357

9,395

13.4 %

Heidrick Consulting

52,623

42,919

9,704

22.6 %

Revenue before reimbursements (net revenue)

543,823

510,542

33,281

6.5 %

Reimbursements

8,152

5,354

2,798

52.3 %

Total revenue

$ 551,975

$ 515,896

$ 36,079

7.0 %

Adjusted EBITDA

Executive Search

Americas

$ 89,983

$ 88,203

$ 1,780

2.0 %

31.7 %

33.2 %

Europe

6,193

7,537

(1,344)

(17.8) %

7.6 %

8.9 %

Asia Pacific

4,935

5,197

(262)

(5.0) %

10.7 %

11.1 %

Total Executive Search

101,111

100,937

174

0.2 %

24.6 %

25.4 %

On-Demand Talent

(2,550)

1,240

(3,790)

(3.2) %

1.8 %

Heidrick Consulting

(3,422)

(4,457)

1,035

23.2 %

(6.5) %

(10.4) %

Total segments

95,139

97,720

(2,581)

(2.6) %

17.5 %

19.1 %

Research and Development

(9,706)

(10,469)

763

7.3 %

(1.8) %

(2.1) %

Global Operations Support

(30,754)

(26,740)

(4,014)

(15.0) %

(5.7) %

(5.2) %

Total Adjusted EBITDA

$ 54,679

$ 60,511

$ (5,832)

(9.6) %

10.1 %

11.9 %

1 Margin based on revenue before reimbursements (net revenue).

Heidrick & Struggles International, Inc.

Reconciliation of Net Income (Loss) and Adjusted Net Income (Non-GAAP)

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2024

2023

2024

2023

Net income (loss)

$ (5,157)

$ 8,982

$ 8,875

$ 24,568

Adjustments

Impairment charges, net of tax1

14,190

6,038

14,190

6,038

Earnout fair value adjustment, net of tax2

749

—

749

—

Restructuring charges, net of tax3

4,291

—

4,291

—

Total adjustments

19,230

6,038

19,230

6,038

Adjusted net income

$ 14,073

$ 15,020

$ 28,105

$ 30,606

Weighted-average common shares outstanding

Basic

20,259

20,010

20,202

19,958

Diluted

20,865

20,637

21,061

20,701

Earnings per common share

Basic

$ (0.25)

$ 0.45

$ 0.44

$ 1.23

Diluted

$ (0.25)

$ 0.44

$ 0.42

$ 1.19

Adjusted earnings per common share

Basic

$ 0.69

$ 0.75

$ 1.39

$ 1.53

Diluted

$ 0.67

$ 0.73

$ 1.33

$ 1.48

1 The Company recorded goodwill impairment charges of $14.8 million in the On-Demand Talent segment and $1.5 million in the Europe segment for the three and six months ended June 30, 2024. The Company recorded a goodwill impairment charge of $7.2 million in the Heidrick Consulting segment for the three and six months ended June 30, 2023.

2 The Company recorded a fair value adjustment to increase the On-Demand Talent earnout by $1.1 million and increase the Heidrick Consulting earnout by $0.1 million for the three and six months ended June 30, 2024.

3 The Company recorded restructuring charges of $6.9 million for the three and six months ended June 30, 2024.

Heidrick & Struggles International, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

June 30,
2024

December 31,
2023

Current assets

Cash and cash equivalents

$ 189,922

$ 412,618

Marketable securities

106,963

65,538

Accounts receivable, net

187,113

133,128

Prepaid expenses

28,016

23,597

Other current assets

43,745

47,923

Income taxes recoverable

7,660

10,410

Total current assets

563,419

693,214

Non-current assets

Property and equipment, net

48,434

35,752

Operating lease right-of-use assets

82,114

86,063

Assets designated for retirement and pension plans

10,779

11,105

Investments

55,927

47,287

Other non-current assets

26,875

17,071

Goodwill

183,150

202,252

Other intangible assets, net

16,411

20,842

Deferred income taxes

29,216

28,005

Total non-current assets

452,906

448,377

Total assets

$ 1,016,325

$ 1,141,591

Current liabilities

Accounts payable

$ 19,515

$ 20,837

Accrued salaries and benefits

190,225

322,744

Deferred revenue

44,679

45,732

Operating lease liabilities

18,044

21,498

Other current liabilities

25,693

21,823

Income taxes payable

8,593

6,057

Total current liabilities

306,749

438,691

Non-current liabilities

Accrued salaries and benefits

51,404

52,108

Retirement and pension plans

70,855

62,100

Operating lease liabilities

78,120

78,204

Other non-current liabilities

42,562

41,808

Deferred income taxes

5,703

6,402

Total non-current liabilities

248,644

240,622

Total liabilities

555,393

679,313

Stockholders’ equity

460,932

462,278

Total liabilities and stockholders’ equity

$ 1,016,325

$ 1,141,591

Heidrick & Struggles International, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three Months Ended

June 30,

2024

2023

Cash flows – operating activities

Net income

$ (5,157)

$ 8,982

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

3,910

4,819

Deferred income taxes

(2,246)

(223)

Stock-based compensation expense

3,465

1,919

Accretion expense related to earnout payments

469

451

Gain on marketable securities

(441)

(49)

Loss on disposal of property and equipment

247

Impairment charges

16,224

7,246

Changes in assets and liabilities, net of effects of acquisition:

Accounts receivable

(14,717)

(35,658)

Accounts payable

(255)

(1,777)

Accrued expenses

57,843

52,164

Restructuring accrual

4,386

—

Deferred revenue

(2,624)

396

Income taxes recoverable and payable, net

645

495

Retirement and pension plan assets and liabilities

347

333

Prepaid expenses

3,339

4,500

Other assets and liabilities, net

(2,913)

3,341

Net cash provided by operating activities

62,522

46,940

Cash flows – investing activities

Acquisition of businesses, net of cash acquired

—

(5,842)

Capital expenditures

(10,365)

(3,006)

Purchases of marketable securities and investments

(109,862)

(21,511)

Proceeds from sales of marketable securities and investments

289

153

Net cash used in investing activities

(119,938)

(30,206)

Cash flows – financing activities

Repurchases of common stock

—

(904)

Cash dividends paid

(3,182)

(3,122)

Payment of employee tax withholdings on equity transactions

(885)

—

Net cash used in financing activities

(4,067)

(4,026)

Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash

(1,426)

376

Net increase (decrease) in cash, cash equivalents and restricted cash

(62,909)

13,084

Cash, cash equivalents and restricted cash at beginning of period

252,831

204,733

Cash, cash equivalents and restricted cash at end of period

$ 189,922

$ 217,817

Heidrick & Struggles International, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Six Months Ended

June 30,

2024

2023

Cash flows – operating activities

Net income

$ 8,875

$ 24,568

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization

8,700

8,692

Deferred income taxes

(2,333)

6,446

Stock-based compensation expense

6,109

3,772

Accretion expense related to earnout payments

935

642

Gain on marketable securities

(980)

(1,694)

Loss on disposal of property and equipment

261

131

Impairment charges

16,224

7,246

Changes in assets and liabilities:

Accounts receivable

(55,842)

(59,990)

Accounts payable

(2,324)

(2,914)

Accrued expenses

(124,747)

(273,811)

Restructuring accrual

4,386

—

Deferred revenue

(673)

543

Income taxes recoverable and payable, net

5,368

(2,588)

Retirement and pension plan assets and liabilities

5,800

6,403

Prepaid expenses

(4,652)

(2,635)

Other assets and liabilities, net

(6,009)

(4,902)

Net cash used in operating activities

(140,902)

(290,091)

Cash flows – investing activities

Acquisition of business, net of cash acquired

—

(35,749)

Capital expenditures

(16,538)

(6,814)

Purchases of marketable securities and investments

(115,262)

(27,683)

Proceeds from sales of marketable securities and investments

66,574

268,118

Net cash provided by (used in) investing activities

(65,226)

197,872

Cash flows – financing activities

Repurchases of common stock

—

(904)

Cash dividends paid

(6,398)

(6,234)

Payment of employee tax withholdings on equity transactions

(3,747)

(4,141)

Acquisition earnout payments

—

(35,946)

Net cash used in financing activities

(10,145)

(47,225)

Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash

(6,423)

1,772

Net decrease in cash, cash equivalents and restricted cash

(222,696)

(137,672)

Cash, cash equivalents and restricted cash at beginning of period

412,618

355,489

Cash, cash equivalents and restricted cash at end of period

$ 189,922

$ 217,817

Heidrick & Struggles International, Inc.

Reconciliation of Net Income (Loss) to Adjusted EBITDA (Non-GAAP)

(In thousands)

(Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2024

2023

2024

2023

Revenue before reimbursements (net revenue)

$ 278,626

$ 271,225

$ 543,823

$ 510,542

Net income (loss)

(5,157)

8,982

8,875

24,568

Interest, net

(2,612)

(1,913)

(6,698)

(5,162)

Other, net

(997)

(1,377)

(3,568)

(3,186)

Provision for income taxes

4,583

7,893

13,482

15,136

Operating income (loss)

(4,183)

13,585

12,091

31,356

Adjustments

Depreciation

1,990

2,172

4,483

4,176

Intangible amortization

1,920

2,647

4,217

4,516

Earnout accretion

469

451

935

642

Earnout fair value adjustments

1,211

—

1,211

—

Acquisition contingent consideration

3,285

3,784

5,273

5,443

Deferred compensation plan

956

1,603

3,306

3,736

Reorganization costs

—

3,396

—

3,396

Impairment charges

16,224

7,246

16,224

7,246

Restructuring charges

6,939

—

6,939

—

Total adjustments

32,994

21,299

42,588

29,155

Adjusted EBITDA

$ 28,811

$ 34,884

$ 54,679

$ 60,511

Adjusted EBITDA margin

10.3 %

12.9 %

10.1 %

11.9 %

Heidrick & Struggles International, Inc.

Reconciliation of Operating Income to Adjusted EBITDA by Line of Business (Non-GAAP)

(In thousands)

(Unaudited)

Three Months Ended June 30, 2024

Executive Search

On-Demand Talent

Heidrick Consulting

Research & Development

Global
Operations Support

Total

Revenue before reimbursements (net revenue)

$ 209,967

$ 41,895

$ 26,764

$ —

$ 278,626

Operating income (loss)1

46,821

(21,695)

(6,530)

(5,605)

(17,174)

(4,183)

Adjustments

Depreciation

863

117

809

119

1,990

Intangible amortization

1,533

367

—

1,920

Earnout accretion

—

409

—

469

Earnout fair value adjustments

—

1,125

—

1,211

Acquisition contingent compensation

295

1,835

1,155

—

3,285

Deferred compensation plan

920

—

956

Impairment charges

1,463

14,761

—

16,224

Restructuring charges

2,310

286

3,367

—

976

6,939

Total adjustments

5,871

20,066

5,135

824

1,098

32,994

Adjusted EBITDA

$ 52,692

$ (1,629)

$ (1,395)

$ (4,781)

$ (16,076)

$ 28,811

Adjusted EBITDA margin

25.1 %

(3.9) %

(5.2) %

(1.7) %

(5.8) %

10.3 %

Three Months Ended June 30, 2023

Executive Search

On-Demand Talent

Heidrick Consulting

Research & Development

Global
Operations Support

Total

Revenue before reimbursements (net revenue)

$ 206,779

$ 39,240

$ 25,206

$ —

$ 271,225

Operating income (loss)1

46,940

(2,862)

(10,686)

(5,658)

(14,149)

13,585

Adjustments

Depreciation

1,297

116

183

416

160

2,172

Intangible amortization

2,151

443

—

2,647

Earnout accretion

—

394

—

451

Acquisition contingent compensation

1,165

1,561

1,058

—

3,784

Deferred compensation plan

1,541

—

1,603

Reorganization costs

2,169

1,227

—

3,396

Impairment charges

—

7,246

—

7,246

Total adjustments

6,225

5,449

9,024

440

161

21,299

Adjusted EBITDA

$ 53,165

$ 2,587

$ (1,662)

$ (5,218)

$ (13,988)

$ 34,884

Adjusted EBITDA margin

25.7 %

6.6 %

(6.6 %)

(1.9) %

(5.2) %

12.9 %

1 The Company does not allocate interest income or expense, other income or expense, and the provision for income taxes to the Company’s reportable operating segments. As such, the Company has concluded that operating income (loss) represents the most directly comparable measure of financial performance presented in accordance with U.S. GAAP for the reconciliation of Adjusted EBITDA in this presentation.

Heidrick & Struggles International, Inc.

Reconciliation of Operating Income (Loss) to Adjusted EBITDA (Non-GAAP)

(In thousands)

(Unaudited)

Six Months Ended June 30, 2024

Executive Search

On-Demand Talent

Heidrick Consulting

Research & Development

Global
Operations
Support

Total

Revenue before reimbursements (net revenue)

$ 411,448

$ 79,752

$ 52,623

$ —

$ 543,823

Operating income (loss)1

92,353

(26,544)

(10,372)

(11,320)

(32,026)

12,091

Adjustments

Depreciation

2,104

248

279

1,563

289

4,483

Intangible amortization

3,368

812

—

4,217

Earnout accretion

—

815

120

—

935

Earnout fair value adjustments

—

1,125

—

1,211

Acquisition contingent compensation

(335)

3,391

2,217

—

5,273

Deferred compensation plan

3,179

—

3,306

Impairment charges

1,463

14,761

—

16,224

Restructuring charges

2,310

286

3,367

—

976

6,939

Total adjustments

8,758

23,994

6,950

1,614

1,272

42,588

Adjusted EBITDA

$ 101,111

$ (2,550)

$ (3,422)

$ (9,706)

$ (30,754)

$ 54,679

Adjusted EBITDA margin

24.6 %

(3.2 %)

(6.5 %)

(1.8 %)

(5.7) %

10.1 %

Six Months Ended June 30, 2023

Executive Search

On-Demand Talent

Heidrick Consulting

Research & Development

Global
Operations Support

Total

Revenue before reimbursements (net revenue)

$ 397,266

$ 70,357

$ 42,919

$ —

$ 510,542

Operating income (loss)1

90,633

(7,226)

(13,802)

(11,186)

(27,063)

31,356

Adjustments

Depreciation

2,640

201

351

664

320

4,176

Intangible amortization

105

3,868

543

—

4,516

Earnout accretion

—

585

—

642

Acquisition contingent compensation

1,800

2,585

1,058

—

5,443

Deferred compensation plan

3,590

—

3,736

Reorganization costs

2,169

1,227

—

3,396

Impairment charges

—

7,246

—

7,246

Total adjustments

10,304

8,466

9,345

717

323

29,155

Adjusted EBITDA

$ 100,937

$ 1,240

$ (4,457)

$ (10,469)

$ (26,740)

$ 60,511

Adjusted EBITDA margin

25.4 %

1.8 %

(10.4 %)

(2.1 %)

(5.2 %)

11.9 %

View original content:https://www.prnewswire.com/news-releases/heidrick–struggles-reports-second-quarter-2024-results-302208923.html

SOURCE Heidrick & Struggles

Technology

CPC Corporation, Taiwan’s Lee Shun-Chin Receives Master Entrepreneur Honor at the Asia Pacific Enterprise Awards 2024

Published

2 hours ago

September 30, 2024

SINGAPORE, Sept. 30, 2024 /PRNewswire/ — The Esteemed Chairman and Standing Director of CPC Corporation, Taiwan, Lee Shun-Chin, has been recognized as a Master Entrepreneur at the Asia Pacific Enterprise Awards (APEA) 2024. The awards ceremony took place at the Grand Hyatt Taipei on 13 September.

The renowned Asia Pacific Enterprise Awards (APEA) honors exceptional entrepreneurs for their leadership while shining light on enterprises demonstrating corporate excellence. This year, in addition to honoring its chairman, the APEA also recognized CPC Corporation, Taiwan under the Inspirational Brand category for its outstanding achievements and ESG-centric approach.

CPC Corporation, Taiwan has established a strong presence throughout Taiwan and is involved in everything from importing petrochemical materials to supplying finished consumer goods. As it caters to various oil products, the company has implemented a few production and sales models as well as established many offices for effective oversight and governance.

CPC is shifting its focus from traditional energy to sustainable energy. The company aims to produce valuable fuel materials, reduce carbon emissions and fight climate change by introducing strategies that aim to produce valuable petrochemicals, reduce carbon emissions, and use renewable energy. Strategies implemented include improving its refining processes, adding value to chemicals, and carbon capture and reuse. The company also uses its expertise in carbon fiber composite materials to design special space-grade composite.

CPC aims to provide the people of Taiwan with a green, safe, and healthy social environment. It believes that sustainable growth needs balance in the economy, society, and environment. Hence, the company plans to focus on national development, improving its business practices, and promoting green energy to achieve low-carbon development. It aligns with ESG principles to promote “High-value Petrochemical, Low Carbon Emission, Lean-Renewable Energy” in order to realize sustainable development.

The company is dedicated to improving energy efficiency and promoting renewable energy to achieve net zero carbon emissions. With the goal of reducing carbon emissions by 40.6% and 49.5% by 2025 and 2030, 62 measures will be implemented to reduce carbon emissions by 262,000 metric tons, saving 74,000 metric tons of oil equivalent. CPC will also develop geothermal and hydrogen energy and build hydrogen refueling demonstration stations and hydrogen energy transmission and storage facilities to promote clean energy.

Through his “High-value Petrochemical, Low Carbon Emission, Lean-Renewable Energy” transformation strategies, Chairman Lee Shun-Chin’s transformation strategies for CPC Corporation, Taiwan has enabled the organization to build resilience in areas of governance excellence, environmental friendliness, and social prosperity. His admiral leadership skills and vision for the company make him truly deserving of the APEA’s Master Entrepreneur recognition.

PR Newswire is the Official News Release Distribution Partner of Asia Pacific Enterprise Awards 2024.

About Enterprise Asia

Enterprise Asia is a non-governmental organization in pursuit of creating an Asia that is rich in entrepreneurship as an engine towards sustainable and progressive economic and social development within a world of economic equality. Its two pillars of existence are an investment in people and responsible entrepreneurship. Enterprise Asia works with governments, NGOs, and other organizations to promote competitiveness and entrepreneurial development, uplift the economic status of people across Asia, and ensure a legacy of hope, innovation, and courage for future generations. Please visit www.enterpriseasia.org for more information.

About Asia Pacific Enterprise Awards

Launched in 2007, the Asia Pacific Enterprise Awards is the region’s most prestigious award for outstanding entrepreneurship, continuous innovation, and sustainable leadership. The Award provides a platform for companies and governments to recognize entrepreneurial excellence, hence spurring greater innovation, fair business practices, and growth in entrepreneurship. As a regional award, it groups together leading entrepreneurs as a powerful voice for entrepreneurship and serves as a by-invitation-only networking powerhouse. The program has grown to encompass 16 countries/ regions and markets all over Asia. For further information, please visit www.apea.asia.

View original content:https://www.prnewswire.com/apac/news-releases/cpc-corporation-taiwans-lee-shun-chin-receives-master-entrepreneur-honor-at-the-asia-pacific-enterprise-awards-2024-302262019.html

SOURCE Enterprise Asia

Technology

Payfare Initiates Strategic Review Process to Enhance Value

Published

2 hours ago

September 30, 2024

TORONTO, Sept. 29, 2024 /PRNewswire/ – Payfare Inc. (“Payfare” or the “Company”) (TSX: PAY) (OTCQX: PYFRF), a leading international Earned Wage Access (“EWA”) company powering instant access to earnings and digital banking solutions for workforces, today announced that its Board of Directors has initiated, with the assistance of outside legal and financial advisors, a comprehensive and thorough strategic review process to explore and evaluate a broad range of potential options for the Company to enhance value.

The foundation, funding, and execution of Payfare’s ongoing programs remain secure with a robust pipeline of potential new opportunities in the gig economy and EWA space. To support conversion of these new opportunities and alleviate concentration risk, the Board has decided to initiate a strategic review to accelerate these goals. During this process, Payfare remains focused on executing its current business strategy and will continue to provide industry-leading financial solutions for its clients and cardholders. This review process will assess strategic alternatives that may include, but are not limited to strategic partnerships, strategic investments, accretive acquisitions, a potential sale, merger or other business combination.

In conducting the strategic review, the Company’s Board and management team are committed to acting in the best interests of the Company, its shareholders and its stakeholders. There is no deadline or definitive timetable for the completion of the strategic review and Payfare does not intend to comment further unless the Board has approved a specific transaction or otherwise determined that disclosure is necessary or appropriate. There can be no assurances that the strategic review will result in any specific transaction or outcome.

Advisor

The Board has engaged Keefe, Bruyette & Woods Inc. (KBW) as financial advisor to assist with the strategic review process.

Support for DasherDirect Program and Cardholders Through Early 2025

Payfare is proud to have built DasherDirect, an award-winning digital banking solution providing cardholders with free instant pay, cashback rewards, and other meaningful benefits. Since inception, the program has successfully serviced millions of cardholders and processed billions of dollars of transactions. The level of adoption, user reviews, and app store ratings, including its consistent position as the top finance app as ranked by unitQ, demonstrates both the value proposition to cardholders and Payfare’s ability to deliver a best-in-class user experience. Payfare will continue its role as a good partner supporting the DasherDirect program and cardholders through early 2025.

Long-Term Client Renewals with Uber and Lyft Executed in 2024

On July 25, 2024, the Company announced the long-term renewal of its agreement with Lyft Inc. to power the Lyft Direct program. The renewal allows drivers on the Lyft platform to continue benefiting from free instant pay, a feature-rich digital banking product and cashback rewards for years to come. Subsequent to the extension, Payfare also announced new value-added product enhancements to Lyft Direct including Balance Protection, Lyft Direct Savings, and more. Active Lyft Direct users have increased by more than fifty percent year to date, demonstrating the ongoing success of the program.

On March 5, 2024, the Company announced the launch of the Uber Pro Card, a new program with Uber providing free instant payouts after every trip or delivery, enhanced loyalty features for drivers and delivery people, and backup balance for qualifying users on the Uber platform in Canada, powered by Payfare’s leading digital banking app. Active users of the Uber Pro Card have increased by more than five times compared to the legacy program.

Well-Funded to Support Future Growth

Payfare has over $100 million in cash, cash equivalents, and guaranteed investment certificates and is well capitalized to fund ongoing operations and new strategic initiatives. Although the loss of the DasherDirect program will have a substantial impact on the Company’s revenue profile, Payfare intends to right size its operating expenses to align with the near to mid-term reduction in revenues while providing the flexibility to execute on new business and initiatives to build long-term value.

About Payfare (TSX:PAY, OTCQX: PYFRF)

Payfare is a leading, international Earned Wage Access (“EWA”) company powering instant access to earnings through an award-winning digital banking platform for today’s workforce. Payfare partners with leading e-commerce marketplaces, payroll platforms, and employers to provide financial security and inclusion for all workers.

Cautionary Statement Regarding Forward Looking Information

Information and statements contained in this news release that are not historical facts are “forward-looking information” within the meaning of applicable securities legislation that involve risks and uncertainties relating, but not limited, to Payfare’s current expectations, intentions, plans, and beliefs. Forward-looking information can often be identified by forward-looking words such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “target”, “intend”, “estimate”, “could”, “should”, “may” and “will” or the negative of these terms or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Examples of forward-looking information in this news release include, without limitation the strategic review process and timing and length of such process, exploring potential options including strategic partnerships, strategic investments, accretive acquisitions, a potential sale, merger or other business combination, execution of Payfare’s current business strategy and continued provision of industry-leading financial solutions for its clients and cardholders, support for the DasherDirect program and cardholders through early 2025, the impact of the loss of the DasherDirect program to the Company’s revenue profile, intentions to right size operating expenses and impacts to Payfare’s liquidity position, and executing on new opportunities and initiatives. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information.

Security holders, potential security holders and other prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Such risks include the factors discussed from time to time in Payfare’s filings with the Canadian Securities Authorities, copies of which can be found under Payfare’s profile on the SEDAR+ website at www.sedarplus.ca. In addition, there is risk that opportunities identified through the strategic review may take longer than anticipated or may not be a fit or appropriate for the Company or will not be at terms that are acceptable to the Company, and right sizing efforts may not have the intended impacts as expected by management on its liquidity.

Security holders, potential security holders and other prospective investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Payfare undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

View original content:https://www.prnewswire.com/news-releases/payfare-initiates-strategic-review-process-to-enhance-value-302261975.html

SOURCE Payfare Inc.

Technology

vivo Unveils Funtouch OS 15: New Era of Smooth

Published

2 hours ago

September 30, 2024

SHENZHEN, China, Sept. 30, 2024 /PRNewswire/ — vivo today announced the launch of Funtouch OS 15 for users in international markets, ushering in a new era of smooth and an enhanced mobile experience. Building upon user feedback and requests, the latest Funtouch OS 15 is vivo’s take on the new Android 15 version, delivering unparalleled smoothness, a suite of new personalization options, and optimized features focused on photography, gaming, and productivity. Funtouch OS 15 seamlessly connects vivo users to the digital world, enhancing efficiency in everyday life.

Go Beyond Smooth: Experience Unparalleled Fluidity

Funtouch OS 15 improves the overall fluidity of the Android system and animated elements that bring the device to life. By replacing Android’s existing Fair Scheduling algorithm with vivo’s proprietary Priority Scheduling model, Funtouch OS 15 prioritizes computing power for foreground processes. This results in a 15% increase in average app startup speed, even under overload scenarios.

To further enhance performance, the new Memory Enhancement Technology employs an optimized zRAM memory compression algorithm, resulting in a remarkable 40% increase in compression speed. Additionally, it reduces GPU memory consumption for background applications, enabling users to run multiple apps simultaneously without compromising the device’s smoothness.

Funtouch OS 15 also introduces vivo’s exclusive Origin Animation, an innovative approach that enhances animation smoothness and interaction responsiveness. The Lightning-Speed Engine creates a dedicated channel for animation execution and improves app startup response speed by 20%. Inspired by nature, the Aqua Dynamic Effect enhances system interactions with animated effects that evoke the movement of water, making each interaction feel smoother and more natural. Last but not least, 700+ touch scenarios have been optimized based on extensive ergonomics research, ensuring a consistently Smooth Touch experience all around.

Notice: These features are only available on select models. Data is obtained from the company labs. Actual performance shall prevail.

Naturally You: Craft Your Own Digital Space

Funtouch OS 15 empowers users to express their individuality. With 3,800+ redesigned design elements, including updated system colors, fonts, icons, and illustrations, Funtouch OS 15 offers a clean and minimalistic aesthetic. Users can further personalize their devices with a wide array of options, including nine general system themes and a variety of Static, Immersive, and Video Wallpapers. Four new fingerprint recognition animations, customizable app icon styles, and adjustable icon shapes and sizes provide even greater control over the user interface.

Be Pro, So Easy: Efficiency at Your Fingertips

Recognizing the integral role smartphones play in everyday life, Funtouch OS 15 enhances creativity, elevates entertainment, and boosts efficiency. The AI Image Lab allows users to automatically enhance photo quality and remove shadows from documents using AI-powered tools. For avid mobile gamers, the upgraded Ultra Game Mode introduces a convenient sidebar with a performance panel, game tools, and the Game Small Window feature. This allows for quick access to social apps and easy setting adjustments, such as the screen refresh rate and touch sampling rate, without interrupting gameplay.

In terms of productivity, Funtouch OS 15’s optimized Link to Windows feature enhances cross-device collaboration between vivo devices and PCs, allowing users to sync content in real-time, manage file sharing efficiently, view recent photos across devices, and more. Additionally, the overhauled S-Capture feature now allows for annotations during screen recording, supports multiple audio tracks, and includes a control panel for microphone volume and system sound recordings.

Availability

Funtouch OS 15 will be available for upgrade starting from mid-October on vivo X Fold3 Pro, X100 Series and iQOO 12.

About vivo

vivo is a technology company that creates great products based on a design-driven value, with smart devices and intelligent services as its core. The company aims to build a bridge between humans and the digital world. Through unique creativity, vivo provides users with an increasingly convenient mobile and digital life.

While bringing together and developing the best local talents to deliver excellence, vivo is supported by a network of R&D centers in Shenzhen, Dongguan, Nanjing, Beijing, Hangzhou, Shanghai, Xi’an and more cities, including 5G, artificial intelligence, industrial design, photography and other up-and-coming technologies. vivo has also set up an intelligent manufacturing network (including those authorized by vivo), with an annual production capacity of nearly 200 million smartphones. As of now, vivo has branched out its sales network across more than 60 countries and regions, and is loved by more than 500 million users worldwide.

Following the company’s core values, which include Benfen*, user-orientation, design-driven value, continuous learning and team spirit, vivo has implemented a sustainable development strategy with the vision of developing into a healthier, more sustainable world-class corporation.

*”Benfen” is a term describing the attitude on doing the right things and doing things right – which is the ideal description of vivo’s mission to create value for society.

SOURCE vivo