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View All NewsHeidrick revenue up 7.4% with boost from acquisitions
Heidrick & Struggles International Inc. (NASDAQ; HSII) reported fourth-quarter net revenue rose 7.4% to $253.2 million. Executive search revenue fell in all regions, but revenue rose in both its on-demand talent and Heidrick consulting operations thanks to organic growth and acquisition.
Executive search confirmations rose by 4.0% year over year in the fourth quarter, and Heidrick had 414 executive search consultants compared to 390 at the end of the previous year. However, annualized executive search net revenue per consultant fell to $1.8 million in 2023 from $2.0 million in the previous year.
On-demand talent revenue rose 83.7% in the fourth quarter. Results included the acquisition of Atreus Group GmbH. This segment provides independent talent on an on-demand basis.
Heidrick consulting revenue rose 35.8% and included the acquisition of businessfourzero.
The Heidrick consulting segment had 89 consultants as of 31 December 2023, compared to 70 as of 31 December 2022. This segment provides consulting in leadership development, team effectiveness and culture.
Heidrick had announced in January that President and CEO Krishnan Rajagopalan will retire effective 4 March. Taking over the CEO role will be Thomas Monahan III.
| (USD thousands) | Q4 2023 | Q4 2022 | Change | % constant currency |
| Net revenue | 253,162 | 235,717 | 7.4% | - |
| Reimbursements | 4,228 | 2,952 | 43.2% | - |
| Total revenue | 257,390 | 238,669 | 7.8% | - |
| Net income | 14,855 | 16,044 | -7.4% | - |
Net revenue by segment and geography
| Executive search | Q4 2023 | Q4 2022 | Change | % constant currency |
| Americas | 124,778 | 130,561 | -4.4% | -4.7% |
| Europe | 37,275 | 37,258 | 0.0% | -4.9% |
| Asia Pacific | 21,912 | 24,838 | -11.8% | -11.2% |
| Total executive search | 183,965 | 192,657 | -4.5% | -5.6% |
| On-demand talent | 41,096 | 22,368 | 83.7% | - |
| Heidrick consulting | 28,101 | 20,692 | 35.8% | - |
Full-year results
| (USD thousands) | FY 2023 | FY 2022 | Change | % constant currency |
| Net revenue | 1,026,864 | 1,073,464 | -4.3% | -4.6% |
| Reimbursements | 14,318 | 10,122 | 41.5% | - |
| Total revenue | 1,041,182 | 1,083,586 | -3.9% | - |
| Net income | 54,410 | 79,486 | -31.5% | - |
Looking ahead, Heidrick forecast first-quarter revenue of between $245 million and $265 million, a year-over-year increase of between 2.4% and 10.7%.
Heidrick & Struggles International Inc shares closed at $34.44, up 18.96% on the day and 2.02% below its 52-week high of $35.15, set on 28 February 2023. The company has a market cap of $582.54 million.