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View All NewsHeidrick Q4 net revenue falls 11% year over year, but up from low point in third quarter
Executive search firm Heidrick & Struggles International Inc. (NASDAQ: HSII) reported fourth-quarter net revenue fell 10.6% year over year, but it improved from the low point in the third quarter. The impact of exchange rates boosted results by $1.7 million, or 1.0%, in the quarter.
“Our fourth-quarter results capped an unprecedented year throughout which our team demonstrated tremendous resilience while adapting our business for rapidly shifting market conditions,” Heidrick President and CEO Krishnan Rajagopalan said. “Business trends improved from the third quarter trough, and we are encouraged by the current momentum.”
| (US$ thousands) | Q4 2020 | Q4 2019 | % change |
| Net revenue | $160,987 | $180,034 | -10.6% |
| Reimbursements | $1,200 | $4,615 | -74.0% |
| Total revenue | $162,187 | $184,649 | -12.2% |
| Net income | $5,538 | $10,555 | -47.5% |
The company also reported a restructuring charge of $4.3 million in the fourth quarter primarily related to a reduction in Heidrick’s real estate expenses.
Executive search revenue by geography
| (US$ thousands) | Q4 2020 | Q4 2019 | % change |
| Americas | $96,328 | $106,755 | -9.8% |
| Europe | $32,135 | $31,826 | 1.0% |
| Asia Pacific | $17,857 | $24,433 | -26.9% |
| Total executive search | $146,320 | $163,014 | -10.2% |
Heidrick had 361 executive search consultants on Dec. 31, 2020, compared with 380 on Dec. 31, 2019.
Full-year results
| (US$ thousands) | 2020 | 2019 | % change |
| Net revenue | $621,615 | $706,924 | -12.1% |
| Reimbursements | $7,755 | $18,690 | -58.5% |
| Total revenue | $629,370 | $725,614 | -13.3% |
| Net loss/income | ($37,707) | $46,869 | nm |
Guidance
Heidrick forecast first-quarter net revenue of between $160 million and $170 million, a year-over-year decrease of between 0.9% and 6.7%.
Share price and market cap
Shares in Heidrick were up 3.44% to $37.14 as of 12:17 p.m. Eastern time; they set a new 52-week high today when they reached $38.36, according to FT.com. The company has a market cap of $695.0 million.