On this page of StockholderLetter.com we present the latest annual shareholder letter from Huron Consulting Group Inc. — ticker symbol HURN. Reading current and past HURN letters to shareholders can bring important insights into the investment thesis.
2023
ANNUAL
REPORT

2023 ANNUAL REPORT
| HURON | I
A L E T T E R F R O M C H I E F E XE C U T I V E O F F I C E R A N D P R E S I D E N T M A R K H U S S E Y
2023 culminated in record performance for our business.
Driven by strong growth in all three operating segments and
across our digital capability, we achieved record revenues and
expanded our adjusted EBITDA margins for the third consecutive
year. Two years ago, we committed to achieving sustainable
revenue growth and margin expansion, while returning capital
to shareholders. Our financial performance demonstrates the
incredible work of our talented team and the foundation we
have established to continue delivering on those medium-term
investor objectives.
2023 Performance Highlights
     We achieved record revenues of $1.36
billion in 2023, growing 20% over 2022.
     Digital capability revenues grew 17% over
the prior year as our clients continued
their focus on aligning their strategy and
digital initiatives to better serve their
     Healthcare segment revenues grew 26%
over 2022, led by strong growth across our
customers, advance their competitive
positioning, and optimize their businesses.
portfolio of performance improvement,
financial advisory, strategy and innovation,
and digital offerings.
     Our consolidated adjusted EBITDA
margin increased 70 basis points in 2023,
compared to 2022.
     Education segment revenues grew 19%
over the prior year, led by strong growth
across our portfolio of digital, strategy and
operations, and research offerings.
     During 2023, we deployed $124 million to
repurchase 1.5 million shares, representing
7.4% of our outstanding shares as of the
beginning of the year.
     Commercial segment revenues grew 9%
over 2022, led by strong growth in our
financial advisory offerings and continued
growth in our digital capability.
II
| HURON | 2023 ANNUAL REPORT
Executing Our Growth Strategy
Our growth strategy has delivered strong
Growing Presence in Commercial Industries
results in recent years, and we believe it will
Despite macroeconomic headwinds and
continue to be the bedrock from which we
uncertainties, our Commercial segment grew
will achieve top- and bottom-line growth
9% in 2023 over 2022. Our financial advisory
into the future. Each pillar of our growth
business had a record year driven by the
strategy reinforces and builds upon one
demand for our restructuring and turnaround
another, and when executed together
offerings as clients managed through
will help us enhance our ability to deliver
distressed environments. We also achieved
on our clients    most complex challenges,
growth in our digital offerings despite slower
strengthen our competitive advantage, and
buying patterns for larger, transformational
create value for our shareholders.
opportunities in some industries due to
Accelerating Growth in Healthcare
and Education
economic uncertainty. Within Commercial,
we remain focused on diversifying our
portfolio and end markets by expanding on
To maintain and advance our leading market
the range of capabilities we deliver to clients
positions in the healthcare and education
in commercial industries, primarily financial
industries, we continue to innovate and
services, energy and utilities, and the public
expand our offerings. In 2023, we achieved
sector. We believe that new avenues for
combined growth in our healthcare and
growth in the Commercial segment will help
education segments of 23% compared to
position us to achieve accelerated growth in
2022. We believe the combination of our
the years ahead.
deep industry expertise, the breadth of our
consulting, digital and managed services
offerings, and our proven track record of
delivering results for our clients positions
us well to create more sustainable growth
in our two largest businesses and increase
value for our shareholders.
Rapidly Growing Our Digital Capability
Driven primarily by strong demand in the
healthcare and education industries, our
digital capability grew 17% in 2023 over 2022.
Our ability to provide a broad portfolio of
digital offerings that supports the strategic
and operational needs of our clients is at the
foundation of our strategy. Technology, data
2023 ANNUAL REPORT
| HURON | III
and analytics continue to rapidly evolve,
Strong Balance Sheet and Cash Flows
and we are well positioned to help our
One of the critical elements of our strategy
clients integrate digital solutions into their
businesses to increase their competitive
positions in their markets.
Solid Foundation for Margin Expansion
2023 culminated in our third consecutive
year of 50+ basis point adjusted EBITDA
margin improvement. While we still have
work to do to achieve our mid-teen level
margin goal, we believe we have the right
operating model, incentives and leadership
commitment to drive sustainable margin
improvement     while still funding the
organic investments necessary in our
people and our business to achieve our
growth goals.
is to maintain a strong balance sheet
and execute a balanced capital allocation
strategy. In 2023, we generated free cash
flow of $100 million, and used our cash to
return $124 million to shareholders via share
repurchases, while investing $35 million
in our business via capital expenditures.
While we closed one acquisition in 2023,
we continued to execute against a strong
M&A pipeline, evaluating and engaging in
due diligence on multiple opportunities. We
will continue to be in the market to invest
in businesses that enhance our competitive
position and drive strong growth and returns
for our shareholders.
KEY PILLARS WITHIN OUR GROWTH STRATEGY
Accelerating Growth in Healthcare and
Solid Foundation for Margin Expansion:
Education: Huron has leading market
The Company is well positioned to achieve
positions in healthcare and education,
consistent margin expansion as well as
providing comprehensive offerings to the
strong annual adjusted diluted earnings
largest health systems, academic medical
per share growth. We are committed
centers, colleges and universities, and
to adjusted EBITDA margin expansion
research institutes in the United States.
by growing the areas of the business
Growing Presence in Commercial
that provide the most attractive returns,
Industries: Huron   s commercial industry
focus has increased the diversification of the
Company   s portfolio and end markets while
improving the operational efficiency of
our client delivery, and scaling our selling,
general, and administrative
expanding the range of capabilities it can
expense as we grow.
deliver to clients, providing new avenues
Strong Balance Sheet and Cash Flows:
for growth and an important balance to its
Strong free cash flow has and will continue
healthcare and education focus.
to be a hallmark of Huron   s financial
Rapidly Growing Global Digital Capability:
strength and business model.
Huron   s ability to provide a broad portfolio
of digital offerings that supports the
strategic and operational needs of its clients
is at the foundation of the Company   s
strategy. Huron will continue to advance its
integrated digital platform to support its
strong growth trajectory.
The Company is committed to deploying
capital in a strategic and balanced
manner, including returning capital to
shareholders and executing strategic,
tuck-in acquisitions.
 • shareholder letter icon 3/22/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/5/2023 HURN Stockholder Letter
 • stockholder letter icon More "Business Services & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon HURN Benford's Law Stock Score = 95


HURN Shareholder/Stockholder Letter Transcript:

2023
ANNUAL
REPORT


2023 ANNUAL REPORT
| HURON | I
A L E T T E R F R O M C H I E F E XE C U T I V E O F F I C E R A N D P R E S I D E N T M A R K H U S S E Y
2023 culminated in record performance for our business.
Driven by strong growth in all three operating segments and
across our digital capability, we achieved record revenues and
expanded our adjusted EBITDA margins for the third consecutive
year. Two years ago, we committed to achieving sustainable
revenue growth and margin expansion, while returning capital
to shareholders. Our financial performance demonstrates the
incredible work of our talented team and the foundation we
have established to continue delivering on those medium-term
investor objectives.
2023 Performance Highlights
     We achieved record revenues of $1.36
billion in 2023, growing 20% over 2022.
     Digital capability revenues grew 17% over
the prior year as our clients continued
their focus on aligning their strategy and
digital initiatives to better serve their
     Healthcare segment revenues grew 26%
over 2022, led by strong growth across our
customers, advance their competitive
positioning, and optimize their businesses.
portfolio of performance improvement,
financial advisory, strategy and innovation,
and digital offerings.
     Our consolidated adjusted EBITDA
margin increased 70 basis points in 2023,
compared to 2022.
     Education segment revenues grew 19%
over the prior year, led by strong growth
across our portfolio of digital, strategy and
operations, and research offerings.
     During 2023, we deployed $124 million to
repurchase 1.5 million shares, representing
7.4% of our outstanding shares as of the
beginning of the year.
     Commercial segment revenues grew 9%
over 2022, led by strong growth in our
financial advisory offerings and continued
growth in our digital capability.

II
| HURON | 2023 ANNUAL REPORT
Executing Our Growth Strategy
Our growth strategy has delivered strong
Growing Presence in Commercial Industries
results in recent years, and we believe it will
Despite macroeconomic headwinds and
continue to be the bedrock from which we
uncertainties, our Commercial segment grew
will achieve top- and bottom-line growth
9% in 2023 over 2022. Our financial advisory
into the future. Each pillar of our growth
business had a record year driven by the
strategy reinforces and builds upon one
demand for our restructuring and turnaround
another, and when executed together
offerings as clients managed through
will help us enhance our ability to deliver
distressed environments. We also achieved
on our clients    most complex challenges,
growth in our digital offerings despite slower
strengthen our competitive advantage, and
buying patterns for larger, transformational
create value for our shareholders.
opportunities in some industries due to
Accelerating Growth in Healthcare
and Education
economic uncertainty. Within Commercial,
we remain focused on diversifying our
portfolio and end markets by expanding on
To maintain and advance our leading market
the range of capabilities we deliver to clients
positions in the healthcare and education
in commercial industries, primarily financial
industries, we continue to innovate and
services, energy and utilities, and the public
expand our offerings. In 2023, we achieved
sector. We believe that new avenues for
combined growth in our healthcare and
growth in the Commercial segment will help
education segments of 23% compared to
position us to achieve accelerated growth in
2022. We believe the combination of our
the years ahead.
deep industry expertise, the breadth of our
consulting, digital and managed services
offerings, and our proven track record of
delivering results for our clients positions
us well to create more sustainable growth
in our two largest businesses and increase
value for our shareholders.
Rapidly Growing Our Digital Capability
Driven primarily by strong demand in the
healthcare and education industries, our
digital capability grew 17% in 2023 over 2022.
Our ability to provide a broad portfolio of
digital offerings that supports the strategic
and operational needs of our clients is at the
foundation of our strategy. Technology, data

2023 ANNUAL REPORT
| HURON | III
and analytics continue to rapidly evolve,
Strong Balance Sheet and Cash Flows
and we are well positioned to help our
One of the critical elements of our strategy
clients integrate digital solutions into their
businesses to increase their competitive
positions in their markets.
Solid Foundation for Margin Expansion
2023 culminated in our third consecutive
year of 50+ basis point adjusted EBITDA
margin improvement. While we still have
work to do to achieve our mid-teen level
margin goal, we believe we have the right
operating model, incentives and leadership
commitment to drive sustainable margin
improvement     while still funding the
organic investments necessary in our
people and our business to achieve our
growth goals.
is to maintain a strong balance sheet
and execute a balanced capital allocation
strategy. In 2023, we generated free cash
flow of $100 million, and used our cash to
return $124 million to shareholders via share
repurchases, while investing $35 million
in our business via capital expenditures.
While we closed one acquisition in 2023,
we continued to execute against a strong
M&A pipeline, evaluating and engaging in
due diligence on multiple opportunities. We
will continue to be in the market to invest
in businesses that enhance our competitive
position and drive strong growth and returns
for our shareholders.
KEY PILLARS WITHIN OUR GROWTH STRATEGY
Accelerating Growth in Healthcare and
Solid Foundation for Margin Expansion:
Education: Huron has leading market
The Company is well positioned to achieve
positions in healthcare and education,
consistent margin expansion as well as
providing comprehensive offerings to the
strong annual adjusted diluted earnings
largest health systems, academic medical
per share growth. We are committed
centers, colleges and universities, and
to adjusted EBITDA margin expansion
research institutes in the United States.
by growing the areas of the business
Growing Presence in Commercial
that provide the most attractive returns,
Industries: Huron   s commercial industry
focus has increased the diversification of the
Company   s portfolio and end markets while
improving the operational efficiency of
our client delivery, and scaling our selling,
general, and administrative
expanding the range of capabilities it can
expense as we grow.
deliver to clients, providing new avenues
Strong Balance Sheet and Cash Flows:
for growth and an important balance to its
Strong free cash flow has and will continue
healthcare and education focus.
to be a hallmark of Huron   s financial
Rapidly Growing Global Digital Capability:
strength and business model.
Huron   s ability to provide a broad portfolio
of digital offerings that supports the
strategic and operational needs of its clients
is at the foundation of the Company   s
strategy. Huron will continue to advance its
integrated digital platform to support its
strong growth trajectory.
The Company is committed to deploying
capital in a strategic and balanced
manner, including returning capital to
shareholders and executing strategic,
tuck-in acquisitions.



shareholder letter icon 3/22/2024 Letter Continued (Full PDF)
 

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