Heidrick & Struggles International Inc. (NASDAQ: HSII), the US-based provider of executive search, on-demand talent and consulting, reported second-quarter revenue fell 9.0% on a constant currency basis, or 9.2% on a reported basis.

Executive search, the company’s largest business line, saw revenue fall 18.2% year over year in constant currency, reflecting an anticipated market slowdown.

Heidrick President and CEO Krishnan Rajagopalan noted the company’s results include the first full-quarter results from its acquisitions of Atreus GmbH, a Munich, Germany-based firm that provides interim C-suite executives, and businessfourzero, a London-based consultancy focused on developing and implementing change.

“Importantly, the integrations of both our recent acquisitions are progressing smoothly,” Rajagopalan said in a press release. “We are advancing our diversification strategy while continuing to make appropriate investments in our digital capabilities and technologies throughout the company.”

Executive search revenue was down across geographies. Net revenue decreased 21.3% in the Americas (down 21.2% on a constant currency basis), decreased 5.3% in Europe (down 6.1% on a constant currency basis), and decreased 23.9% in Asia Pacific (down 20.5% on a constant currency basis) when compared to the prior year second quarter. The Social Impact and Industrial practice groups exhibited growth over the prior year. 

Heidrick had 423 executive search consultants on 30 June, compared to 388 on 30 June, 2022. Net revenue per consultant was $1.9 million during the most-recent quarter, compared to $2.6 million a year ago.

In Heidrick’s “on-demand talent” segment, revenue rose 73.8% year over year in constant currency, driven by the acquisition of Atreus.

Consulting revenue fell 11.8% in constant currency.

Adjusted EBITDA was $36.4 million compared to $36.8 million in the 2022 second quarter.

Second-quarter results included an impairment charge of $7.2 million related to the company’s consulting segment. Heidrick conducted an interim goodwill impairment evaluation after its acquisition of businessfourzero.

Looking ahead Heidrick forecast third-quarter revenue of between $245 million and $265 million, which ranges from a decline of 4.0% to an increase of 3.8%.

Heidrick & Struggles International shares closed yesterday at $28.12, up 3.12% on the day and 23.39% above the 52-week low of $22.79 set on 25 October 2022. The company has a market cap of $546.15 million.