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View All NewsSearch firm Heidrick reports solid market, but Q2 net revenue down 3.6% in constant currency
Heidrick & Struggles Inc. (NASDAQ: HSII) second-quarter net revenue fell 3.6% on a constant currency basis, but net income rose 24.6%. And solid market conditions were reported by the Chicago-based provider of executive search, leadership assessment and other services.
“We are running just as hard as we did in 2018, a record year, and are still seeing solid market conditions, even with the geographic variability,” President and CEO Krishnan Rajagopalan said.
| (US$ thousands) | Q2 2019 | Q2 2018 | % change | % change constant currency |
| Net revenue | $173,122 | $183,056 | -5.4% | -3.6% |
| Reimbursements | $5,051 | $4,630 | 9.1% | |
| Total revenue | $178,173 | $187,689 | -5.1% | |
| Net income/loss | $14,280 | $11,463 | 24.6% |
Heidrick noted all industry practice groups experienced a reduction in billings with the exception of the “healthcare and life sciences” practice.
Revenue fell across all geographies with the biggest decrease in the Asia-Pacific region.
Net revenue by segment and geography
| (US$ thousands) | Q2 2019 | Q2 2018 | % change | % change constant currency |
| Executive search | ||||
| Americas | $100,517 | $102,692 | -2.1% | |
| Europe | $34,864 | $37,286 | -6.5% | -1.0% |
| Asia Pacific | $23,163 | $26,517 | -12.7% | -9.4% |
| Total executive search | $158,544 | $166,495 | -4.8% | -2.9% |
| Heidrick Consulting | $14,578 | $16,564 | -12.0% | |
| Total revenue | $178,173 | $187,689 | -5.1% |
Guidance
Heidrick forecast third-quarter revenue of between $175 million and $185 million, representing a year-over-year decline of between 6.7% and 1.4%.
Share price and market cap
Shares in Heidrick were down 3.81% to $29.32 as of 11:04 a.m. Eastern time; the company had a market cap of $582.7 million, according to FT.com.