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View All NewsHeidrick revenue up 16% in constant currency
First-quarter net revenue rose 13.1% at Heidrick & Struggles International Inc. (NASD: HSII). However, the increase was 15.9% in constant currency at the Chicago-based executive search and leadership consulting firm.
From a global practices perspective, Heidrick’s global technology and services, healthcare and life sciences, and financial services practices drove year-over-year growth in the first quarter, according to the company.
Heidrick in the fourth quarter acquired Co Company, a London-based leadership advisory firm, and acquired Decision Strategies International, a Philadelphia-based strategy and leadership advisory firm, in February. The company incurred a one-time charge of $2.1million related to the acquisitions for salary and employee benefits and general and administrative expenses that were severance related, primarily in Europe.
Heidrick & Struggles in the first quarter also invested $2.2 million in new and existing leadership and client service talent for its culture-shaping firm, Senn Delaney.
| (US$ thousands) | Q1 2016 | Q1 2015 | % change | constant currency (US$ 000s) |
| Net revenue | $130,189 | $115,153 | 13.1% | 15.9% |
| Reimbursements | $4,098 | $3,326 | 23.2% | |
| Total revenue | $134,287 | $118,479 | 13.3% | |
| Net income/loss | $1,325 | $3,426 | -61.3% |
Quote
“Our first quarter results reflect continued strengthening of our executive search business, with especially strong results in the Americas and Europe driving revenue growth,” said President and CEO Tracy Wolstencroft. “The results also reflect our investments in non-search businesses to improve our ability to serve clients as well as to deliver growth and profitability going forward. The February acquisition of DSI and subsequent realignment within leadership consulting were important steps in building our service offering. We also made planned investments in our culture shaping business, in leadership and new client service talent, to sustain the growth of this business and develop the next generation of culture practitioners.”
Revenue by segment and geography
| Q1 2016 | Q1 2015 | % change | % growth in constant currency | |
| Executive search and leadership consulting | ||||
| Americas | $75,201 | $64,475 | 16.6% | 19.0% |
| Europe | $26,761 | $19,658 | 36.1% | 40.8% |
| Asia Pacific | $19,884 | $22,904 | -13.2% | -9.9% |
| Total executive search and leadership consulting | $121,846 | $107,037 | 13.8% | 16.8% |
| Culture shaping | $8,343 | $8,116 | 2.8% |
Guidance
Heidrick forecasts consolidated net revenue of between $145 million and $155 million in the second quarter, a year-over-year increase of between 9.0% and 16.5%.
Share price and market cap
Shares in Heidrick fell 12.73% in early afternoon trading today to $20.88, and the company had a market cap of $387.25 million, according to Yahoo!