Heidrick & Struggles International Inc. (NASDAQ: HSII), a Chicago-based provider of executive search, on-demand talent and consulting, reported third-quarter revenue rose 3.1% on a reported basis. The company posted growth in its “on-demand talent” segment, Heidrick Consulting, and executive search in Europe, partially offset by declines in executive search in Asia Pacific and the Americas.

Executive search, the company’s largest business line, saw revenue fall 7.9% year over year in constant currency, reflecting a decrease in the volume of executive search confirmations.

“We are very pleased with our third-quarter results, posting year-over-year revenue growth and another double-digit adjusted EBITDA margin quarter despite ongoing macro uncertainty,” President and CEO Krishnan Rajagopalan said in a press release. “These results reflect the benefits of our One Heidrick strategy, which is to bring the best permanent executive level and on-demand talent to our clients and to help leadership and organizations be more effective through our diversified product offering.”

Rajagopalan said diversified solutions of on-demand talent, Heidrick Consulting and soon to include Heidrick Digital will continue to be an increasing percentage of the business and now contribute nearly 25% of its revenues.

Executive search revenue rose in Europe by 1% in constant currency but was down across the other geographies. Heidrick had 417 executive search consultants on Sept. 30 compared to 389 on Sept. 30, 2022. Net revenue per consultant was $1.9 million during the most-recent quarter compared to $2.2 million a year ago, reflecting a higher number of consultants combined with lower revenue. 

In Heidrick’s on-demand Talent segment, revenue rose 76.6% year over year on a reported basis, primarily due to the acquisition of Atreus Group GmbH, partially offset by a decrease in the volume of legacy on-demand projects.

Consulting revenue rose 21.8% due to organic growth coupled with the acquisition of businessfourzero. The company had 90 Heidrick Consulting consultants on Sept. 30 compared to 72 on Sept. 30, 2022. 

Guidance

Heidrick forecast fourth-quarter net revenue of between $240 million and $260 million, which ranges from an increase of 0.6% to 8.9%.

Share price

Shares in Heidrick were up 11.68% to $25.73 as of 11:12 a.m. Eastern time today; they were 14.25% above their 52-week low, according to FT.com.