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View All NewsHeidrick revenue up 10% in constant currency, cites strength across business
Heidrick & Struggles International Inc. (NASDAQ: HSII) reported first-quarter net revenue rose 10.2% in constant currency.
“Our results reflect a strong rebound from the global downturn,” Heidrick President and CEO Krishnan Rajagopalan said. “Record net revenue in the first quarter marked a double-digit improvement both sequentially and year over year, driven by broad based strength across all businesses and geographies.”
| (US$ thousands) | Q1 2021 | Q1 2020 | % change | % change constant currency |
| Net revenue | $193,656 | $171,481 | 12.9% | 10.2% |
| Reimbursements | $1,075 | $3,366 | -68.1% | |
| Total revenue | $194,731 | $174,847 | 11.4% | |
| Net income | $14,832 | $8,666 | 71.2% |
The first quarter at the Chicago-based executive search provider included a restructuring charge of almost $3.9 million primarily related to the timing of office closures.
Executive search revenue by geography
| (US$ thousands) | Q1 2021 | Q1 2020 | % change | % change constant currency |
| Executive search | ||||
| Americas | $116,506 | $100,301 | 16.2% | 16.5% |
| Europe | $37,643 | $33,082 | 13.8% | 4.8% |
| Asia Pacific | $25,469 | $22,070 | 15.4% | 8.2% |
| Total executive search | $179,618 | $155,453 | 15.5% | |
| Heidrick Consulting | $14,038 | $16,028 | -12.4% | -15.0% |
Earlier this month, Heidrick had announced the acquisition of Business Talent Group, an online marketplace for high-end independent talent on demand. Heidrick noted BTG had revenue of approximately $50 million in 2020 and was acquired for initial consideration of $32.6 million with an anticipated future payment in 2023.
Guidance
Heidrick forecast second-quarter revenue growth of between 47.7% and 54.5% year over year, which includes the BTG business.
Share price and market cap
Shares in Heidrick were up 13.52% to $42.83 as of 11:56 a.m. Eastern time; they set a new 52-week high today when they reached $45.91, according to FT.com. The company had a market cap of $739.0 million.