Net revenue rose 18.4% in constant currency at Heidrick & Struggles International Inc. (NASD: HSII) in the second quarter, driven by its executive search business. Revenue in the Chicago-based firm’s consulting business decreased. Heidrick posted net income in the second quarter compared to a net loss in the year-ago quarter, due mainly to a $39.2 million impairment charge.

Heidrick reported practice areas driving executive search growth in the third quarter included global technology and services, financial services, consumer markets and industrial.

The decline in consulting revenue largely reflects the effect of new revenue recognition accounting on enterprise license agreements, which increased deferred revenue compared to prior quarters by approximately $800,000, the company reported. Consulting revenue includes Heidrick’s leadership consulting and culture-shaping businesses, which it combined into one reporting segment on Jan. 1.

Net revenue by segment and geography

Quote

“Our outlook for the market demand for executive search and leadership advisory services continues to be positive,” President and CEO Krishnan Rajagopalan said.

Guidance

Heidrick forecasts third-quarter revenue of between $170.0 million and $180.0 million, a year-over-year increase of between 6.4% and 12.6%.

Share price and market cap

Shares in Heidrick rose 19.88% to $41.00 as of 12:37 p.m. Eastern time today. The company had a market cap of $775.86 million.