Technology

Heidrick & Struggles Reports Second Quarter 2024 Results

Published

2 years 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 %

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SOURCE Heidrick & Struggles

Technology

Singtel Receives Four Frost & Sullivan 2026 Recognitions for Leadership in Enterprise Connectivity, Cybersecurity, and Digital Transformation

Published

48 minutes ago

July 19, 2026

The recognitions highlight Singtel’s leadership in secure connectivity, network transformation, IoT innovation, and cybersecurity, delivering customer value through intelligent digital infrastructure and AI-enabled enterprise services.

SAN ANTONIO, July 19, 2026 /CNW/ — Frost & Sullivan is pleased to honor Singtel with the 2026 Southeast Asia IoT Connectivity Service Provider Company of the Year, 2026 Singapore Network Transformation Customer Value Leadership, 2026 Singapore Cybersecurity Services Company of the Year, and 2026 Singapore SD-WAN and SASE Service Provider Company of the Year recognitions. These acknowledgements reflect Singtel’s outstanding achievements in delivering secure, intelligent, and scalable digital infrastructure that enables enterprises to modernize operations, simplify complexity, and accelerate digital transformation across Singapore and Southeast Asia. They underscore the company’s consistent leadership in strategy execution, customer value creation, and innovation across enterprise connectivity, cybersecurity, software-defined networking, and IoT connectivity services.

Frost & Sullivan evaluates companies through a rigorous benchmarking process across two core dimensions: strategy effectiveness and strategy execution. Singtel excelled in both, demonstrating its ability to anticipate evolving enterprise requirements while consistently translating long-term vision into measurable customer outcomes. Through platforms such as Singtel CUBΣ (CUBE) and its multidomestic IoT connectivity architecture, the company continues to unify networking, cybersecurity, automation, and AI-driven intelligence into integrated solutions that address the growing complexity of hybrid, multicloud, and connected environments. “Singtel has established itself as a benchmark for enterprise digital infrastructure by converging connectivity, cybersecurity, network intelligence, and IoT orchestration into a unified, customer-centric ecosystem. Its disciplined execution, platform-led innovation, and commitment to simplifying complex enterprise environments continue to strengthen operational resilience and deliver sustained value for organizations across the region,” said Kenny Yeo, Director at Frost & Sullivan.

Guided by a long-term strategy focused on digital innovation, intelligent infrastructure, and customer-centric transformation, Singtel has moved well-beyond traditional telecommunications to a trusted technology partner for enterprises navigating increasingly connected and data-driven environments. Its strategic investments in AI-enabled operations, cloud-native platforms, secure connectivity, and ecosystem partnerships enable organizations to modernize critical infrastructure while maintaining the flexibility to support future business growth.

The company’s strategic agility and sustained investment in integrated digital platforms have enabled it to scale innovative services across local, regional, and global enterprise environments. Innovation remains central to Singtel’s approach through solutions including the CUBΣ connected intelligence platform, multidomestic IoT connectivity powered by eSIM orchestration, managed cybersecurity services, AI-driven network automation, and network-as-a-service capabilities. These solutions simplify network and security management, strengthen cyber resilience, improve operational visibility, and provide enterprises with scalable, secure, and high-performing connectivity across cloud, edge, IoT, and hybrid infrastructures.

By streamlining service delivery through intelligent automation, centralized orchestration, proactive monitoring, and flexible managed and co-managed service models, Singtel continues to help organizations reduce operational complexity while improving service reliability and business agility. Its ability to integrate best-of-breed technologies in a unified operational framework, combined with strong regional network ownership and localized expertise, enables customers to confidently scale digital initiatives while maintaining security, governance, and operational excellence.

Frost & Sullivan commends Singtel for setting a high standard in competitive strategy, execution, and customer value across multiple technology domains. By combining intelligent networking, secure digital infrastructure, AI-enabled operations, and cross-border IoT capabilities in an integrated platform strategy, the company is shaping the future of enterprise connectivity while helping organizations build resilient, future-ready digital ecosystems.

Each year, Frost & Sullivan presents its Company of the Year and Customer Value Leadership recognitions to organizations that demonstrate outstanding strategy development and implementation, resulting in measurable improvements in customer satisfaction, competitive positioning, and business performance. These recognitions honor forward-thinking companies that continuously raise industry standards through innovation, operational excellence, and long-term value creation.

Frost & Sullivan Best Practices Recognition
Frost & Sullivan’s Best Practices Recognitions honor companies across regional and global markets that exhibit exceptional achievement and consistent excellence in areas such as leadership, technological innovation, customer experience, and strategic product development. Each recognition is the result of a rigorous analytical process in which Frost & Sullivan industry experts benchmark performance through comprehensive interviews, deep-dive analysis, and extensive secondary research. The goal is to identify true best-in-class organizations that are driving transformative growth and setting new industry standards.
Contact us: Start the discussion.

Contact:
Tarini Singh
E: Tarini.Singh@frost.com

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SOURCE Frost & Sullivan

Technology

Emdoor Launches “Ailyn” AI Hub at WAIC 2026: Unifying Intelligence Across Every Device

Published

5 hours ago

July 19, 2026

SHANGHAI, July 18, 2026 /PRNewswire/ — Emdoor, a leading provider of intelligent computing devices, unveiled its latest innovation — Ailyn, an integrated software-hardware AI hub — at the World Artificial Intelligence Conference (WAIC) 2026. Under the theme “Intelligence in All Things, Boundless Edge Intelligence”, Emdoor’s Booth X1B-804 showcases four immersive scenarios spanning personal, home, enterprise, and industrial use cases, demonstrating how AI can flow seamlessly across devices.

With decades of experience across cloud, edge, device, and wearable form factors, Emdoor has established one of the industry’s most comprehensive intelligent hardware portfolios. Yet the company recognized a critical gap: while individual devices grow smarter, they often operate in isolation.

Ailyn is Emdoor’s answer to this challenge. Introduced on the WAIC Magic Box stage, Ailyn serves as a unified intelligence layer that orchestrates storage, computing power, AI models, and data across PCs, NAS systems, computing boxes, and IoT devices. The result is a scalable, centrally managed intelligence platform that delivers seamless cross-device collaboration, data privacy, and AI capabilities that improve with use.

At its core, Ailyn follows a device-first, multi-device connected philosophy. By prioritizing on-device model deployment, it reduces costs while preserving privacy, minimizing latency, and enabling offline functionality. Key capabilities include unified data access, uninterrupted task handoff between devices, intelligent multi-model routing, and dynamic compute scaling — plus built-in features for knowledge accumulation, skill expansion, persona customization, and automated task execution.

Four Scenarios, One Intelligent Ecosystem

The enterprise lineup features high-performance AI workstations, AI servers, AI NAS, Mini PCs, and motherboards. Workstations support up to 96-core processors and four double-width GPUs with integrated BMC remote management. AI servers run dual Intel Xeon scalable processors with up to eight mainstream AI accelerators. The single-GPU workstation series offers dual-platform compatibility with both Intel and AMD, featuring a PCIe 5.0 ×16 slot and up to 128GB DDR5 memory. Available in two form factors — a 23.9L tower chassis and a 15.3L compact chassis with tempered glass side panel — it delivers balanced performance for both creative workloads and local AI inference. The AI NAS unifies storage and AI computing power in one device, with192GB of octa-channel LPDDR5X memory to support local large model deployment. Ailyn unifies these resources into a private computing backbone, intelligently offloading heavy workloads so users get instant on-device responsiveness with datacenter-grade power on demand.

For individual users, the showcase includes Mini PCs, AI PCs, AI tablets, and multimodal wearables. The AP16, powered by Intel’s 3rd Generation Core™ Ultra processor, delivers 180 TOPS of AI performance with sustained 54W output — capable of running large models locally. Multimodal wearable solutions built on Qualcomm and BES chips offer faster time-to-market for brand partners. Within the Ailyn ecosystem, PCs handle heavy computing while wearables provide continuous environmental awareness, each device strengthening the whole.

Industrial visitors will find AI BOX units, rugged AI notebooks, handheld terminals, and industrial PCs. AI BOX devices come preloaded with industry-specific models for production line visual inspection. Rugged notebooks deliver reliable performance for mobile field operations. Industrial PCs feature industrial-grade architecture for 24/7 uptime. Through Ailyn, these connected devices break down traditional data silos, enabling intelligent resource orchestration and a closed-loop perception-decision-execution system that accelerates industrial digital transformation.

At the center of the home scenario are AI tablets and home NAS, connected to a full-house AIoT network. The NAS acts as the family’s private data and computing hub, while the tablet serves as the primary interface for senior health reminders and children’s learning support. Ailyn weaves these devices into a cohesive system covering family memories, health care, companionship, and home security — bringing intelligence into daily life without intruding on it.

The launch of Ailyn marks a significant evolution for Emdoor — shifting from a hardware manufacturer to a builder of intelligent infrastructure. It represents the convergence of the company’s deep hardware heritage and its AI innovation roadmap. Moving forward, Emdoor will continue investing in edge AI technology and expanding the Ailyn ecosystem alongside partners, bringing distributed intelligence from the showroom into everyday life.

Company: Emdoor Digital Technology Co.,Ltd.
Contact Person: Yao Zhou
Email: marketing.digi@emdoor.com
Website: http://www.emdoordigi.com/
City: Shenzhen, China

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SOURCE Emdoor Digital

Technology

AI-Powered Connectivity: APAC Charts a Path to a Smarter Digital Future

Published

14 hours ago

July 18, 2026

Asia-Pacific’s first Broadband Development Summit brings regulators and operators to Bangkok to set the agenda

BANGKOK, July 19, 2026 /PRNewswire/ — Government officials, standards bodies and telecom operators gathered in Bangkok on 14 July for the inaugural Broadband Development Summit APAC 2026, convened by the World Broadband Association (WBBA) to build consensus on AI-era networks.

Participants included the ITU, Thailand’s National Board of the Digital Economy and Society, WBBA, IAB, FNCAP, WAA, NIDA and the IPv6 Council, alongside operators Telkomsel, XLSmart, Surge, Globe, AIS, CMI and HKT and Huawei.

Denny Deng, President of Huawei Asia Pacific Carrier Business, envisions a “faster, smarter, greener” Asia-Pacific.

VOICES FROM THE SUMMIT

“To seize the opportunities of the AI era, we call on the industry to accelerate broadband evolution, advance computing-network synergy, and strengthen the cross-border connectivity. Together, let us build faster, smarter, and greener digital infrastructure for Asia-Pacific.”
— Denny Deng, President of Asia Pacific Carrier Business, Huawei

“High-speed broadband is no longer just about ‘getting online’ — it is the vital infrastructure upon which the entire AI revolution is being built. We view AI not merely as a tool, but as a primary engine for national competitiveness and a catalyst for improving the quality of life for all.”
— Wetang Phuangsup, Ph.D., Secretary-General, the National Board of the Digital Economy and Society, Thailand

“Three initiatives define the road to 2030. We must close the quality divide so the value of broadband reaches everyone. We must build AI-ready networks — 10G access, 800GE cores, intelligence end to end. And we must do it together, through shared standards.”
— Martin Creaner, Director General of WBBA

“Moving towards next-generation networks, network architectures must continue to evolve to deliver broader connectivity, superior quality, enhanced security, and greater intelligence. This evolution is essential for Net5.5G, positioning the network not simply as infrastructure, but as the foundation that enables AI, strengthens resilience and efficiency, and supports digital transformation across industries.”
— Dhruv Dhody, Industry Standardization Expert at Huawei, Chair of the IAB, IETF

“Across Asia-Pacific, fibre is extending beyond homes and offices into rooms, devices, and machines. By working together, we can accelerate fibre innovation and adoption to build truly AI-ready infrastructure.”
— Ilham Nandana, Chair of the Market Intelligence Committee, Fiber Network Council APAC (FNCAP)

“We fixed it before you feel it! AIS is redefining premium home broadband by combining ultra-fast connectivity with AI-driven network intelligence and smart home ecosystem — delivering proactive, invisible service excellence that transforms connectivity into differentiated customer value and sustainable ARPU growth.”
— Thanit Chaiyaboonthanit, Head of Technology Department, Broadband Business, AIS

“Connecting the Unconnected: Affordable Broadband at Scale. Create equal access to global information and empower Indonesia’s digital society.”
— Shannedy Ong, CTO of Surge Indonesia

“Beyond Connectivity: Telkomsel is transforming into a true value creator. By leveraging our FBB market-leading footprint, we power growth through service excellence, customer loyalty, and a next-generation home ecosystem.”
— Stanislaus Susatyo, Director of Sales, Telkomsel Indonesia

“We stopped treating AI as an add-on feature. Instead, our approach at Globe starts with architecture, embedding intelligence into the very core of how we build, how we sell, and how we operate.
AI continuously monitors network health, customer behavior and service quality. Rather than waiting for failures, the system predicts degradation and initiates corrective actions. By maintaining minute-level awareness of network health, our systems automatically resolve 30% of all Wi-Fi issues without any human intervention.”
— Danny Theseira, Head of Broadband Business Group at Globe Telecom

“Huawei is driving the Optics-AI Synergy to foster their collaborative growth. Through AI-ON, operators could build an AI-centric all-optical target network and establish 1-5-20ms latency circles across the Asia Pacific region. AI-ON also supports efficient computing access and usage while delivering an ultimate network experience through gigabit/ultra-gigabit home broadband, accelerating the widespread adoption of AI services.”
— Kim Jin, Vice President & Chief Marketing Officer Optical Business Product Line, Huawei

“Connectivity is not just about technology. It is a lifeline, a platform for opportunity, and a driver of sustainable development. I believe the intersection of connectivity and artificial intelligence will shape the future of smarter, more resilient networks.”
— Dr. Cosmas Zavazava, Director of the Telecommunication Development Bureau, ITU

“Performance and user experience are the essential path to the next-generation WLAN. Based on standards and AI-driven innovation, let’s jointly explore the path to the future autonomous WLAN with all the stakeholders.”
— Dr. Crane H. Yang, Secretary-General, World WLAN Application Alliance (WAA)

“At the summit, NIDA and WBBA signed an MOU to accelerate next-generation network evolution and establish pioneering smart city benchmarks through the co-development of industry standards, the harmonization of global regulations, and the sharing of vertical industry insights.
NIDA focuses on advancing network architecture standards, while WBBA drives global consensus on broadband evolution. This natural strategic complementarity creates vast opportunities for future collaboration.”
— Joey Deng, Secretary-General of NIDA

“ION-2030 develops the global standard for next generation optical networks in the AI era. It provides exceptional AI application and service experience. The WBBA and ITU will jointly accelerate its development, and this is a unique opportunity for Asia-Pacific stakeholders to actively influence the future of optical broadband networks.”
— Dr. Marcus Brunner, Chief Expert Standardization, WBBA WG1 Chair and Vice-Chair of ETSI ISG F5G

“The transition into the AI era demands a high-quality, deterministic digital foundation. By releasing Net5.5G policy guidelines, Malaysia is accelerating the evolution of next-generation network standards based on IPv6, establishing an innovative infrastructure to unleash AI’s value and drive a prosperous digital economy for 2030.”
— Prof. Sureswaran Ramadass, Chair of APAC at IPv6 Council, Industry Partner of WBBA

“The digital economy is thriving across the Asia-Pacific region, with AI emerging as a core catalyst for intelligent transformation. China Mobile International (CMI) is driving regional growth by integrating China’s advanced AI capabilities with comprehensive communications, computing, and AI services. Moving forward, CMI will collaborate closely with industry partners to foster a shared, AI-driven future for the region.”
— Paul Lin, Managing Director of Commercial and Technology, Asia Pacific, China Mobile International

“Next-generation network infrastructure is the oxygen of the intelligent economy. By integrating cutting-edge 800G connectivity with quantum-safe security, HKT is laying the essential foundations to keep Hong Kong’s enterprises highly competitive, secure, and ready for the computing paradigm shifts of tomorrow.”
— Wilson Cheung, Vice President, Broadband Design & Cyber Security, HKT

“The evolution toward Net5.5G AI WAN is an important step in strengthening XLSMART’s transport network for the future. By progressively adopting AI-assisted operations, SRv6, SDN, service differentiation, and higher-capacity transport infrastructure, we are enhancing network intelligence, operational efficiency, and service resilience while supporting long-term sustainability. This transformation is a continuous journey that aligns with the industry’s vision of AI-native broadband networks. Through collaboration with our technology partners and the broader ecosystem, we will continue to develop capabilities that deliver better network performance and support Indonesia’s growing digital connectivity needs.”
— Regie Ginanjar, Head of Transport Autonomy & Orchestration, Transport Network Transformation, XLSMART

“For the AI era, Huawei upgrades the IP bearer network via security resilience, multi-dimensional awareness, and network autonomy. This empowers carriers to guarantee service experience, accelerate monetization, and enhance efficiency, ushering in a new chapter of intelligent connectivity.”
— Arthur Wang, Vice President of Data Communication Product Line, Huawei

A CONVERGING VIEW

Speakers agreed AI is shifting networks from connectivity to intelligent connectivity, as broadband, IP, computing and cross-border infrastructure converge to support innovation and coordination.

WBBA launched the AI-Net Certification, a global benchmark for national policy, industrial ecosystems and network intelligence. XLSmart was named first AI-Net Champion, and Indonesia was among the first with a certified operator, backed by its Net5.5G roadmap.

In another high-profile segment, WBBA Director General Martin Creaner presented the Gigacity Certification to KOMDIGI, SURGE, Telkomsel, AIS, TRUE, HKT and Globe, recognizing regional broadband pioneers.

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SOURCE HUAWEI