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View All NewsHeidrick executive search revenue rises in Europe, falls elsewhere
Executive search firm Heidrick & Struggles International Inc. (NASD: HSII) reported net revenue rose 5.8 percent in the third quarter to $125.8 million. Executive search revenue rose 16.4 percent in Europe but fell in the Americas and Asia Pacific. Revenue in the Chicago-based company's culture-shaping division rose 5.8 percent.
Quote
“Our third quarter results reflect steady progress in stabilizing and rebuilding our business,” said President and CEO Tracy Wolstencroft. “During the quarter, we advanced several initiatives that support our vision to provide integrated leadership solutions to the world’s leading organizations. We began working on our largest integrated search, leadership consulting and culture shaping services assignment to date and we rolled out two recently developed tools that add to our data and analytical capabilities and enhance the judgment we provide our clients making human capital decisions. Although our results are trending in the right direction, we need to accelerate improvements, with revenue growth being the most important deliverable.”
Revenue
| Q3 2014 (000s) | Q32013 (000s) | % growth | |
| Net revenue | $125,829 | $118,981 | 5.8% |
| Reimbursements | $4,432 | $4,523 | -2.0% |
| Total revenue | $130,261 | $123,504 | 5.5% |
Net revenue by segment and geography
| Q3 2014 (000s) | Q3 2013 (000s) | % growth | |
| Executive search and leadership consulting | |||
| Americas | $64,982 | $65,522 | -0.8% |
| Europe | $27,207 | $23,366 | 16.4% |
| Asia Pacific | $23,305 | $23,528 | -0.9% |
| Total executive search and leadership consulting | $115,494 | $112,416 | 2.7% |
| Culture shaping | $10,335 | $6,565 | 57.4% |
Net income
| Q3 2014 (000s) | Q3 2013 (000s) | % growth | |
| Net income | $2,992 | $4,124 | -27.4% |
Guidance
Heidrick forecasts fourth-quarter revenue of between $112 million and $123 million; this compares with net revenue of $118 million in the fourth quarter of the previous year.
Share price and market cap
Shares in Heidrick fell 1.07 percent in early afternoon trading to $21.25 and the company had a market cap of approximately $387.41 million, according to Yahoo!