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View All NewsHeidrick revenue up 16% in constant currency, Americas leads growth
Third-quarter net revenue rose 10.0% at Heidrick & Struggles International Inc. (NASD: HSII), but was up 15.8% in constant currency.
Among segments, Americas revenue posted the largest increase at the Chicago-based executive search and leadership consulting firm, up 22.4% on a constant currency basis. Asia Pacific revenue rose 18.5% while European revenue rose 7.5%, both on a constant currency basis.
Heidrick this month acquired Co Company, a London-based leadership advisory firm. It also added Ron Lumbra as region leader for the Americas.
| (US$ thousands) | Q3 2015 | Q3 2014 | % growth |
| Net revenue | $138,421 | $125,829 | 10.0% |
| Reimbursements | $4,429 | $4,432 | -0.1% |
| Total revenue | $142,850 | $130,261 | 9.7% |
| Net income/loss | $7,490 | $2,992 | 150.3% |
Quote
“Solid revenue growth in the third quarter, up 15.8% in constant currency, drove good improvements in adjusted EBITDA, operating income and net income,” said President and CEO Tracy Wolstencroft. “It is gratifying to see the positive results of the concerted focus we have made to hire and retain the highest quality consultants in the business. We will continue to focus our initiatives and gauge our progress on our four priorities — talent, clients, diversified solutions and operations — in order to drive long-term shareholder value.”
Revenue by segment and geography
| (US$ thousands) | Q3 2015 | Q3 2014 | % growth | % growth in constant currency |
| Executive search and leadership consulting | ||||
| Americas | $78,265 | $64,982 | 20.4% | 22.4% |
| Europe | $25,946 | $27,207 | -4.6% | 7.5% |
| Asia Pacific | $25,031 | $23,305 | 7.4% | 18.5% |
| Total executive search and leadership consulting | $129,242 | $115,494 | 11.9% | 18.1% |
| Culture shaping | $9,179 | $10,335 | -11.2% |
Guidance
Heidrick forecasts consolidated net revenue of between $128 million and $138 million in the fourth quarter, an increase of 9.7% at the midpoint of the range.
Share price and market cap
Shares in Heidrick rose 10.53% in early afternoon trading to $24.24, and the company had a market cap of $445.48 million, according to Yahoo!