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View All NewsHeidrick revenue up 23% in constant currency, Europe leads growth
Fourth-quarter net revenue rose 19.2% at Heidrick & Struggles International Inc. (NASD: HSII), but was up 23.4% in constant currency.
Among segments, Europe revenue posted the largest increase at the Chicago-based executive search and leadership consulting firm, up 37.2% on a constant-currency basis. Americas revenue rose 20.8% while Asia Pacific revenue rose 9.9%, both on a constant-currency basis.
From a global practices perspective, the healthcare and life sciences, financial services, and global technology and services practices drove year-over-year growth, according to the company.
Heidrick this month acquired Decision Strategies International, a Philadelphia-based strategy and leadership advisory firm. It also added former eBay executive Elizabeth L. Axelrod and finance executive T. Willem Mesdag to its board.
| Q4 2015 (USD 000s) | Q4 2014 (USD 000s) | % growth | constant currency (US$ 000s) | |
| Net revenue | 144,520 | 121,262 | 19.2% | 23.4% |
| Reimbursements | 4,776 | 5,226 | -8.6% | |
| Total revenue | 149,296 | 126,488 | 18.0% | |
| Net income/loss | 1,260 | 762 | 65.4% |
Quote
“Our fourth quarter and 2015 results reflect a second year of year-over-year growth in net revenue, profitability, and consultant headcount,” said President and CEO Tracy Wolstencroft. “The results show continued progress on our four priorities — our talent, clients, diversified solutions and internal operations. In 2015, Heidrick & Struggles attracted and retained exceptional consultant talent across our global platform, delivered valuable leadership expertise and service to our clients, improved revenue growth and profitability, and increased shareholder value.”
Revenue by segment and geography
| Q4 2015 (USD 000s) | Q4 2015 (USD 000s) | % growth | % growth in constant currency | |
| Executive search and leadership consulting | ||||
| Americas | 81,913 | 67,796 | 20.8% | 22.2% |
| Europe | 30,927 | 24,347 | 27.0% | 37.2% |
| Asia Pacific | 21,021 | 20,570 | 2.2% | 9.9% |
| Total executive search and leadership consulting | 133,861 | 112,713 | 18.8% | 23.2% |
| Culture shaping | 10,659 | 8,549 | 24.7% |
Full-year results
| (US$ thousands) | 2015 | 2014 | % growth |
| Net revenue | $531,139 | $494,292 | 7.5% |
| Reimbursements | $17,172 | $18,947 | -9.4% |
| Total revenue | $548,311 | $513,239 | 6.8% |
| Net income | $17,132 | $6,787 | 152.4% |
Guidance
Heidrick forecasts consolidated net revenue of between $120 million and $130 million in the first quarter, an increase of 8.5% at the midpoint of the range.
Share price and market cap
Shares in Heidrick edged down 0.39% in early afternoon trading to $22.74, and the company had a market cap of $418.05 million, according to Yahoo!