Third-quarter net revenue at Heidrick & Struggles International Inc. (NASDA: HSII) rose 0.7% year over year on a constant currency basis, with growth coming from its executive search and Heidrick consulting segments. The increase was 3.3% on a reported basis to $255.2 million.

“We are proud of our results, as they were achieved in a slowing global market that is being impacted by looming recessionary concerns given rampant inflation and rising interest rates,” President and CEO Krishnan Rajagopalan said.

The Chicago-based company reported net revenue in its executive search segment edged up 0.2% year over year in constant currency, with growth coming from Europe — the firm posted declines in search revenue from the Americas and Asia Pacific.

Revenue also rose in its Heidrick Consulting segment, which posted a 7.5% increase in revenue as measured in constant currency. However, in on-demand talent, the company’s final segment, revenue fell 4.3%.

“On a constant currency basis, revenue for the quarter exceeded our record year-ago levels,” Rajagopalan said. “Further, even with the current market slowdown and the strength of the US dollar, we still expect to see our performance to be above the record years we delivered pre-pandemic in 2018 and 2019.”

Heidrick noted the revenue decline in its on-demand talent segment reflects an anticipated seasonal slowdown.

In the Heidrick consulting segment, where revenue rose, the company reported it had 72 consultants in the third quarter of this year compared to 66 in the third quarter of last year.

Click on image to enlarge.

Guidance

Heidrick forecast fourth-quarter revenue of between $215 million and $235 million.

Share price and market cap

Shares in Heidrick were down 6.61% to $26.70 as of 11:58 a.m. Eastern time; they set a new 52-week low during trading this morning when they reached $22.79, according to FT.com. Heidrick had a market cap of $568.6 million.