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View All NewsHeidrick net revenue up 11% in constant currency; exec search revenue up 13%
Third-quarter net revenue rose 10.6% in constant currency at Heidrick & Struggles International Inc. (NASD: HSII), driven by strong year-over-year growth in executive search. Net revenue exceeded the high end of the company’s guidance of $158 million at the Chicago-based executive search, leadership consulting and culture-shaping firm.
| (US$ thousands) | Q3 2017 | Q3 2016 | % change | % change constant currency |
| Net revenue | $159,800 | $143,519 | 11.3% | 10.6% |
| Reimbursements | $4,665 | $4,720 | -1.2% | |
| Total revenue | $164,465 | $148,239 | 10.9% | |
| Net loss/income | $8,171 | $6,940 | 17.7% |
Quote
“We are pleased with the continued strong performance of our executive search business in the third quarter,” said President and CEO Krishnan Rajagopalan, who was appointed in July to the role after serving as acting CEO and interim principal executive officer since April. “Almost all of our financial and key performance metrics improved in the third quarter. We also made progress integrating our leadership consulting and culture shaping operations into a single business, Heidrick Consulting.”
Net revenue by segment and geography
| Q3 2017 | Q3 2016 | % change | % change constant currency | |
| Executive search | ||||
| Americas | $88,254 | $75,602 | 16.7% | |
| Europe | $33,994 | $27,844 | 22.1% | 18.9% |
| Asia Pacific | $21,865 | $22,813 | -4.2% | |
| Total executive search | $144,113 | $126,259 | 14.1% | 13.3% |
| Leadership consulting | $8,771 | $8,635 | 1.6% | |
| Culture shaping | $6,916 | $8,625 | -19.8% |
Guidance
Heidrick forecasts consolidated fourth-quarter net revenue of between $150 million and $160 million, which represents a year-over-year decrease of 6.1% to an increase of 0.1%.
Share price and market cap
Shares in Heidrick rose 16.08% in early afternoon trading today to $24.90, and the company had a market cap of $468.68 million, according to Yahoo.