Heidrick & Struggles International Inc. (Nasdaq: HSII) reported fourth-quarter net revenue fell 14.6% year over year on a constant currency basis to $235.7 million.

However, the Chicago-based executive search provider reported net revenue increased 10.1% in constant currency in its full fiscal 2022 to a record $1.07 billion compared to $1.00 billion in 2021.

“We are pleased with the financial, operational and strategic progress achieved during fiscal 2022 as we reported record net revenue on top of the historic billion-dollar milestone we achieved last year,” Heidrick President and CEO Krishnan Rajagopalan said. “Our strong top- and bottom-line results are a testament to our ongoing efforts to further diversify our business as we continue to make investments for the long-term in digital product innovation and aim to set the stage for prolonged, profitable growth.”

Heidrick’s on-demand talent revenue was $22.4 million in the fourth quarter, down 5.3% year over year, reflecting trends associated with softening around potential macroeconomic conditions, which led to some delays in projects, according to the company.

The company’s consulting net revenue rose 17.5% year over year in constant currency to $20.7 million in the fourth quarter.

Guidance

Heidrick & Struggles expects 2023 first-quarter consolidated net revenue of between $235 million and $255 million while acknowledging that continued fluidity in external factors such as the foreign exchange and interest rate environments, foreign conflicts, inflation and macroeconomic constraints on pricing actions may impact quarterly results.

“Despite the current market slowdown and the strength of the US dollar, our business in January remained on pace with the fourth quarter of 2022, and we expect to continue to operate above the heightened levels achieved during the pre-pandemic years of 2018 and 2019,” Rajagopalan said.

Share price and market cap

Shares in Heidrick & Struggles were up 14.64% to $34.30 as of 12:04 p.m. Eastern time; they were 20.93% below their 52-week high of $43.38 set on Feb. 28, according to FT.com. The company had a market cap of $594.23 million.