Daily News
View All NewsHeidrick Q1 net revenue up 14%; search fuels overall growth, but consulting revenue falls
Net revenue rose at Heidrick & Struggles International Inc. (NASD: HSII) in the first quarter by 14.3%, or 10.2% in constant currency. Double-digit increases in executive search revenue were reported in the Americas as well as Europe and Asia Pacific. However, consulting revenue fell.
| (US$ thousands) | Q1 2018 | Q1 2017 | % change | % change constant currency |
| Net revenue | $160,071 | $140,006 | 14.3% | 10.2% |
| Reimbursements | $4,587 | $4,171 | 10.0% | |
| Total revenue | $164,658 | $144,177 | 14.2% | |
| Net loss/income | $10,168 | $650 | nm |
The Chicago-based company said areas driving growth in executive search revenue were financial services, global technology and services, and consumer markets.
Net revenue by segment and geography
| (US$ thousands) | Q1 2018 | Q1 2017 | % change |
| Executive search | |||
| Americas | $86,303 | $77,098 | 11.9% |
| Europe | $35,681 | $26,205 | 36.2% |
| Asia Pacific | $23,848 | $21,182 | 12.6% |
| Total executive search | $145,832 | $124,485 | 17.1% |
| Heidrick Consulting | $14,239 | $15,521 | -8.3% |
| Total revenue | $164,658 | $144,177 | 14.2% |
The decline in consulting revenue largely reflects the impact of new revenue recognition accounting on enterprise license agreements, the company reported. Consulting revenue includes Heidrick’s leadership consulting and culture-shaping businesses, which it combined into one reporting segment on Jan. 1.
Guidance
Heidrick forecasts second-quarter revenue of between $160 million and $170 million, a year-over-year increase of between 5.1% and 11.7%.
Share price and market cap
Shares in Heidrick rose 17.59% to $38.10 as of 2:02 p.m. Eastern time today. The company had a market cap of $713.03 million.