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View All NewsHeidrick revenue up 12%
Second-quarter net revenue rose 11.9% at Heidrick & Struggles International Inc. (NASD: HSII). The increase was 12.2% in constant currency at the Chicago-based executive search and leadership consulting firm and within forecasted guidance.
Both business lines — executive search and leadership consulting, and culture shaping — drove the increase. Specific to executive search and leadership consulting, the Americas and Europe regions drove second-quarter revenue, partially offset by a decline in Asia-Pacific revenue.
Heidrick in the fourth quarter acquired Co Company, a London-based leadership advisory firm, and in February acquired Decision Strategies International, a Philadelphia-based strategy and leadership advisory firm.
| (US$ thousands) | Q2 2016 | Q2 2015 | % change | constant currency (US$ 000s) |
| Net revenue | $148,861 | $133,045 | 11.9% | 12.2% |
| Reimbursements | $4,955 | $4,641 | 6.8% | |
| Total revenue | $153,816 | $137,686 | 11.7% | |
| Net income | $6,655 | $4,956 | 34.3% |
Quote
“Our strong second-quarter results were driven by revenue growth in the Americas and Europe, as well as in culture shaping,” President and CEO Tracy Wolstencroft said. “Our continued focus on attracting and retaining the highest caliber consultants in the industry contributed to increases in all our key metrics and revenue growth in almost every practice. The solid revenue growth achieved in the second quarter helped drive good improvements in operating income and margin and adjusted EBITDA and margin.”
Revenue by segment and geography
| Q2 2016 | Q2 2015 | % change | % growth in constant currency | |
| Executive search and leadership consulting | ||||
| Americas | $84,158 | $75,820 | 11.0% | |
| Europe | $31,361 | $24,075 | 30.3% | 32.6% |
| Asia Pacific | $23,640 | $24,777 | -4.6% | -3.2% |
| Total executive search and leadership consulting | $139,159 | $124,672 | 11.6% | |
| Culture shaping | $9,702 | $8,373 | 15.9% |
Guidance
Heidrick forecasts consolidated net revenue of between $140 million and $150 million in the third quarter, a year-over-year increase of between 1.2% and 8.4%.
Share price and market cap
Shares in Heidrick rose 9.18% in early afternoon trading today to $19.03, and the company had a market cap of $352.47 million, according to Yahoo!