Heidrick & Struggles International Inc. (NASDAQ: HSII), a Chicago-based provider of executive search, on-demand talent and consulting, reported second-quarter revenue fell 9.0% on a constant currency basis, or 9.2% on a reported basis. Executive search, the company’s largest business line, saw revenue fall 18.2% year over year in constant currency, reflecting an anticipated market slowdown.

Heidrick President and CEO Krishnan Rajagopalan noted the results include the first full-quarter results from its acquisitions of Atreus GmbH, a Munich, Germany-based firm that provides interim C-suite executives, and businessfourzero, a London-based consultancy focused on developing and implementing change.

“Importantly, the integrations of both our recent acquisitions are progressing smoothly,” Rajagopalan said in a press release. “We are advancing our diversification strategy while continuing to make appropriate investments in our digital capabilities and technologies throughout the company.”

Executive search revenue was down across geographies. Heidrick had 423 executive search consultants on June 30, compared to 388 on June 30, 2022. Net revenue per consultant was $1.9 million during the most-recent quarter, compared to $2.6 million a year ago.

In Heidrick’s “on-demand talent” segment, revenue rose 73.8% year over year in constant currency, driven by the acquisition of Atreus.

Consulting revenue fell 11.8% in constant currency.

Second-quarter results included an impairment charge of $7.2 million related to the company’s consulting segment. Heidrick conducted an interim goodwill impairment evaluation after its acquisition of businessfourzero.

Guidance

Heidrick forecast third-quarter revenue of between $245 million and $265 million, which ranges from a decline of 4.0% to an increase of 3.8%.

Share price and market cap

Shares in Heidrick were up 2.17% to $27.86 as of 10:53 a.m. Eastern time today; they were 22.26% above their 52-week low, according to FT.com. The company had a market cap of $546.2 million.