Huron Announces Record Fourth Quarter 2024 Financial Results and Provides 2025 Guidance

FOURTH QUARTER 2024 FINANCIAL HIGHLIGHTS

• Revenues before reimbursable expenses increased $49.2 million, or 14.5%, to a record $388.4 million in Q4 2024 from $339.2 million in Q4 2023.
  
  
  
  
• Net income increased $31.2 million to $34.0 million in Q4 2024, compared to $2.8 million in Q4 2023. Results for Q4 2023 include a non-cash unrealized loss of $19.4 million, net of tax, related to the company's investment in a hospital-at-home company.
  
  
  
  
• Adjusted EBITDA⁽¹⁰⁾, a non-GAAP measure, increased $15.4 million, or 37.3%, to $56.8 million in Q4 2024 from $41.4 million in Q4 2023.
  
  
  
  
• Diluted earnings per share increased $1.69, to $1.84 in Q4 2024, compared to $0.15 in Q4 2023. Results for Q4 2023 include the non-cash unrealized loss related to the company's investment in a hospital-at-home company, which had an unfavorable impact of $1.00 on diluted earnings per share in Q4 2023.
  
  
  
  
• Adjusted diluted earnings per share⁽¹⁰⁾, a non-GAAP measure, increased $0.61, or 47.3%, to $1.90 in Q4 2024 from $1.29 in Q4 2023.
  
  
  
  
• Net cash provided by operating activities increased $59.2 million, or 73.7%, to a record $139.6 million in Q4 2024, compared to $80.4 million in Q4 2023.

FULL YEAR 2024 FINANCIAL HIGHLIGHTS AND 2025 GUIDANCE

• Revenues before reimbursable expenses increased $124.0 million, or 9.1%, to a record $1.49 billion for 2024 from $1.36 billion for 2023.
  
  
  
  
• Net income increased $54.1 million, or 86.7%, to $116.6 million for 2024, compared to $62.5 million for 2023. Results for 2024 include an $11.1 million litigation settlement gain, net of tax, related to a completed legal matter in which Huron was the plaintiff. Results for 2023 include a non-cash unrealized loss of $19.4 million, net of tax, related to the company's investment in a hospital-at-home company.
  
  
  
  
• Adjusted EBITDA⁽¹⁰⁾, a non-GAAP measure, increased $33.8 million, or 20.2%, to $201.2 million for 2024 from $167.3 million for 2023.
  
  
  
  
• Diluted earnings per share increased $3.08, or 96.6%, to a record $6.27 for 2024, compared to $3.19 for 2023. Results for 2024 include the litigation settlement gain related to the completed legal matter in which Huron was the plaintiff, which had a favorable impact of $0.60 on diluted earnings per share for the period. Results for 2023 include the non-cash unrealized loss related to the company's investment in a hospital-at-home company, which had an unfavorable impact of $0.99.
  
  
  
  
• Adjusted diluted earnings per share⁽¹⁰⁾, a non-GAAP measure, increased $1.56, or 31.8%, to a record $6.47 for 2024 from $4.91 for 2023.
  
  
  
  
• Net cash provided by operating activities increased $66.1 million, or 48.8%, to a record $201.3 million for 2024, compared to $135.3 million for 2023.
  
  
  
  
• Huron returned $122.2 million to shareholders by repurchasing 1.2 million shares of the company's common stock in 2024, representing 6.6% of the company's common stock outstanding as of December 31, 2023.
  
  
  
  
• Huron provides full year 2025 guidance, including revenues before reimbursable expenses in a range of $1.58 billion to $1.66 billion.

OTHER HIGHLIGHTS

• Huron will host an Investor Day on Tuesday, March 25, 2025 with members of Huron's leadership team to provide an update on the company's strategy and financial goals.
  
  
  
  
• Huron was named a "Best Place to Work" by Glassdoor, one of the world's largest and most influential communities for workplace conversations, for a 2nd consecutive year.
  
  
  
  
• Huron was named a "Best Place to Work for Supporting Family Caregiving" by U.S. News & World Report. Huron was recognized as one of the 80 best publicly traded companies across 29 industries to help employees and job seekers make decisions about workplaces that best support their responsibility of caring for loved ones.

Global professional services firm Huron (NASDAQ:HURN) today announced financial results for the quarter and year ended December 31, 2024.

"The fourth quarter of 2024 produced record revenues before reimbursable expenses (RBR) as our growth rate accelerated, reflecting strong performance across all three operating segments. We also drove strong margin expansion over the prior year period," said Mark Hussey, chief executive officer and president of Huron. "2024 was another strong year for Huron, consistent with the financial goals we established at our 2022 Investor Day. Full year RBR achieved a record high and was our fourth year of consecutive growth, delivering 9% growth over the prior year. We also expanded our margins, while generating record diluted earnings per share and cash flows. It is only because of our highly talented and dedicated team and our clients that these results were possible."

"Building on our recent momentum, we believe that the primary end markets in which we compete will continue to create growth opportunities for our broad portfolio of offerings. Our integrated growth strategy focused on combining our broad portfolio of offerings with our leading market positions in healthcare and education, our expanding presence in commercial industries, and our rapidly growing digital capabilities position us well to respond to ongoing market demand and continue to create sustainable value for our shareholders," added Hussey.

FOURTH QUARTER 2024 RESULTS

Revenues before reimbursable expenses increased $49.2 million, or 14.5%, to a record $388.4 million for the fourth quarter of 2024, compared to $339.2 million for the fourth quarter of 2023. This revenue growth was highlighted by 19.0% growth in the Consulting and Managed Services capability and 8.6% growth in the Digital capability in the aggregate across all industries; and reflects the company's focus on accelerating its growth in the healthcare and education industries and growing its presence in commercial industries.

Net income increased $31.2 million to $34.0 million, or 8.5% of total revenues, for the fourth quarter of 2024, compared to $2.8 million, or 0.8% of total revenues, for the same quarter last year. Results for Q4 2023 include a non-cash unrealized loss of $19.4 million, net of tax, related to the company's investment in a hospital-at-home company. Diluted earnings per share increased $1.69, to $1.84 for the fourth quarter of 2024, compared to $0.15 for the fourth quarter of 2023. The non-cash unrealized loss related to the investment had an unfavorable impact of $1.00 on diluted earnings per share in the fourth quarter of 2023.

Fourth quarter 2024 earnings before interest, taxes, depreciation and amortization ("EBITDA")⁽¹⁰⁾ increased $46.2 million to $58.9 million, compared to $12.7 million in the same prior year period. Results for the fourth quarter of 2023 include the non-cash unrealized pre-tax loss of $26.3 million related to the company's investment in a hospital-at-home company.

In addition to using EBITDA to evaluate the company's financial performance, management uses other non-GAAP financial measures, which exclude the effect of the following items (in thousands).

Adjusted EBITDA⁽¹⁰⁾ increased $15.4 million, or 37.3%, to $56.8 million, or 14.6% of revenues before reimbursable expenses⁽¹⁰⁾, in the fourth quarter of 2024, compared to $41.4 million, or 12.2% of revenues before reimbursable expenses⁽¹⁰⁾, in the same quarter last year. Adjusted net income⁽¹⁰⁾ increased $10.1 million, or 40.4%, to $35.2 million, or $1.90 per diluted share, for the fourth quarter of 2024, compared to $25.1 million, or $1.29 per diluted share, for the same quarter in 2023.

The number of revenue-generating professionals⁽¹⁾, excluding Managed Services professionals, increased 5.0% to 4,694 as of December 31, 2024 from 4,469 as of December 31, 2023. The utilization rate⁽⁹⁾ of the company's Consulting capability was 77.2% during the fourth quarter of 2024, compared to 76.8% during the same period last year. The utilization rate⁽⁹⁾ for the company's Digital capability was 77.7% during the fourth quarter of 2024, compared to 80.5% during the same period last year. The number of Managed Services professionals increased 45.7% to 1,530 as of December 31, 2024 from 1,050 as of December 31, 2023.

FULL YEAR 2024 RESULTS

Revenues before reimbursable expenses increased $124.0 million, or 9.1%, to a record $1.49 billion for full year 2024, compared to $1.36 billion for full year 2023. The increase in revenues before reimbursable expenses was driven by continued strength in demand for both the company's Consulting and Managed Services capability and Digital capability within the Healthcare and Education segments, and reflects the company's focus on accelerating growth in the healthcare and education industries. These increases in demand were partially offset by a decrease in demand for Commercial's Digital and Consulting and Managed Services capabilities.

Net income increased $54.1 million, or 86.7%, to $116.6 million, or 7.7% of total revenues, for full year 2024, compared to $62.5 million, or 4.5% of total revenues, in the same prior year period. Results for full year 2024 include an $11.1 million litigation settlement gain, net of tax, related to a completed legal matter in which Huron was the plaintiff; and results for full year 2023 include a non-cash unrealized loss of $19.4 million, net of tax, related to the company's investment in a hospital-at-home company. Diluted earnings per share increased $3.08, or 96.6%, to a record $6.27 for full year 2024, compared to $3.19 in the same prior year period. The litigation settlement gain recognized in the second quarter of 2024 had a favorable impact of $0.60 on diluted earnings per share for in 2024. The non-cash unrealized loss related to the investment had an unfavorable impact of $0.99 on diluted earnings per share in 2023.

EBITDA⁽¹⁰⁾ for full year 2024 increased $75.9 million, or 58.8%, to $205.0 million, compared to $129.1 million in the same prior year period. Results for full year 2024 include the pre-tax $15.0 million litigation settlement gain related to the completed legal matter in which Huron was the plaintiff. Results for full year 2023 include the non-cash unrealized pre-tax loss of $26.3 million related to the company's investment in a hospital-at-home company.

In addition to using EBITDA⁽¹⁰⁾ to evaluate the company's financial performance, management uses other non-GAAP financial measures, which exclude the effect of the following items (in thousands):

Adjusted EBITDA⁽¹⁰⁾ increased $33.8 million, or 20.2%, to $201.2 million, or 13.5% of revenues before reimbursable expenses⁽¹⁰⁾, for full year 2024, compared to $167.3 million, or 12.3% of revenues before reimbursable expenses⁽¹⁰⁾, in the same prior year period. Adjusted net income⁽¹⁰⁾ increased $24.2 million, or 25.1%, to $120.4 million, or a record of $6.47 per diluted share, for full year 2024, compared to $96.2 million, or $4.91 per diluted share, for the same prior year period.

The number of revenue-generating professionals⁽¹⁾, excluding Managed Services professionals, increased 5.0% to 4,694 as of December 31, 2024 from 4,469 as of December 31, 2023. The utilization rate⁽⁹⁾ of the company's Consulting capability was 73.6% for full year 2024, compared to 76.6% during the same period last year. The utilization rate⁽⁹⁾ for the company's Digital capability increased to 76.0% for full year 2024, compared to 75.3% during the same period last year. The number of Managed Services professionals increased 45.7% to 1,530 as of December 31, 2024 from 1,050 as of December 31, 2023.

Additionally, Huron returned $122.2 million to shareholders in 2024 through repurchases of 1,218,434 shares of the company's common stock, representing 6.6% of the company's common stock outstanding as of December 31, 2023.

OPERATING INDUSTRIES

The company's full year 2024 revenues before reimbursable expenses by operating segment as a percentage of total company revenues before reimbursable expenses are as follows: Healthcare (51%); Education (32%); and Commercial (17%). Financial results by operating industry are included in the attached schedules and in Huron's forthcoming Annual Report on Form 10-K filing for the year ended December 31, 2024.

OUTLOOK FOR 2025

Based on currently available information, the company provided guidance for full year 2025 revenues before reimbursable expenses in a range of $1.58 billion to $1.66 billion. The company also anticipates adjusted EBITDA as a percentage of revenues before reimbursable expenses⁽¹⁰⁾ in a range of 14.0% to 14.5%, and adjusted diluted earnings per share⁽¹⁰⁾ guidance in a range of $6.80 to $7.60.

FOURTH QUARTER 2024 WEBCAST

The company will host a webcast to discuss its financial results today, February 25, 2025, at 5:00 p.m. Eastern Time, 4:00 p.m. Central Time. The conference call is being webcast by Notified and can be accessed from Huron's website at http://ir.huronconsultinggroup.com. A replay will be available approximately two hours after the conclusion of the webcast and for 90 days thereafter.

INVESTOR DAY

Huron will host an Investor Day on Tuesday, March 25, 2025 beginning at 9:00 a.m. Eastern Time (8:00 a.m. Central Time). Interested parties attending in person must register for the event on Huron's investor relations website at http://ir.huronconsultinggroup.com prior to March 18, 2025. In-person participation is open to institutional investors and analysts.

Chief executive officer and president, C. Mark Hussey, chief financial officer, John D. Kelly, and other members of Huron's leadership team will provide an update on the company's strategy and financial goals. In addition to management's prepared remarks, there will be a question-and-answer ("Q&A") session.

After the conclusion of the event, a transcript and replay of the video webcast, including the Q&A session, will be available on Huron's investor relations website at http://ir.huronconsultinggroup.com for one year.

USE OF NON-GAAP FINANCIAL MEASURES⁽¹⁰⁾

In evaluating the company's financial performance and outlook, management uses EBITDA, adjusted EBITDA, adjusted EBITDA as a percentage of revenues before reimbursable expenses, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP measures. Management uses these non-GAAP financial measures to gain an understanding of the company's comparative operating performance (when comparing such results with previous periods or forecasts). These non-GAAP financial measures are used by management in their financial and operating decision making because management believes they reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing their business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. Management believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Huron's current operating performance and future prospects in the same manner as management does, if they so choose, and in comparing in a consistent manner Huron's current financial results with Huron's past financial results. Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States.

Management has provided its outlook regarding adjusted EBITDA as a percentage of revenues before reimbursable expenses and adjusted diluted earnings per share, both of which are non-GAAP financial measures and exclude certain charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort.

ABOUT HURON

Huron is a global professional services firm that partners with clients to put possible into practice by creating sound strategies, optimizing operations, accelerating digital transformation, and empowering businesses to own their future. By embracing diverse perspectives, encouraging new ideas and challenging the status quo, we create sustainable results for the organizations we serve. Learn more at www.huronconsultinggroup.com.

Statements in this press release that are not historical in nature, including those concerning the company's current expectations about its future results, are "forward-looking" statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as "may," "should," "expects," "provides," "anticipates," "assumes," "can," "will," "meets," "could," "likely," "intends," "might," "predicts," "seeks," "would," "believes," "estimates," "plans," "continues," "goals," "guidance," or "outlook," or similar expressions. These forward-looking statements reflect the company's current expectations about future requirements and needs, results, levels of activity, performance, or achievements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: failure to achieve expected utilization rates, billing rates, and the necessary number of revenue-generating professionals; inability to expand or adjust our service offerings in response to market demands; our dependence on renewal of client-based services; dependence on new business and retention of current clients and qualified personnel; failure to maintain third-party provider relationships and strategic alliances; inability to license technology to and from third parties; the impairment of goodwill; various factors related to income and other taxes; difficulties in successfully integrating the businesses we acquire and achieving expected benefits from such acquisitions; risks relating to privacy, information security, and related laws and standards; and a general downturn or volatility in market conditions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors, including, among others, those described under "Item 1A. Risk Factors" in Huron's Annual Report on Form 10-K for the year ended December 31, 2024 that may cause actual results, levels of activity, performance or achievements to be materially different from any anticipated results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. The company disclaims any obligation to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.

Please note that information contained in any referenced website is not incorporated by reference in this press release or considered to be part of this document. Such website references are intended to be inactive textual references only.

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MEDIA CONTACT

Allie Bovis

[email protected]

INVESTOR CONTACT

John D. Kelly

[email protected]