Net revenue rose at Heidrick & Struggles International Inc. (NASD: HSII) in the fourth quarter ending 31 December 2018 by 9.4%.

Excluding the impact of exchange rate fluctuations which negatively impacted results by $2.6 million, or 1.4%, consolidated net revenue increased 10.9%.

The US-based company said revenue growth was driven by strong results in Executive Search. The group’s consulting segment reported a decrease in net revenue.

On 1 January 2018, the company adopted ASC 606Revenue from Contracts with Customers, and applied the modified retrospective method. This adoption increased consolidated net revenue in the  fourth quarter of  2018 by $2.9 million and increased 2018 consolidated net revenue by $4.2 million.

In Q4 2017, the company recorded restructuring charges related to strategic actions taken to reduce overall costs and improve operational efficiencies which led to an operating loss. A net loss in Q4 2017 reflected the impairment and restructuring charges and two tax-related charges related to the Tax Cuts & Jobs Act. This year, the company saw a return to growth with Net Income at $11.2 million and (not too sure why you put them in capitals, is it some reporting standard?) operating income at $16.7 million.

Heidrick & Struggles' President and Chief Executive Officer, Krishnan Rajagopalan, commented, “We achieved another strong quarter that contributed to our second consecutive year of record net revenue as we execute on our plan to drive profitable growth and operating excellence.”

"The launch of Heidrick Consulting in 2018 perfectly complements our Executive Search business and enhances our ability to help clients navigate volatile and fast-changing markets. Our fourth quarter and 2018 results reflect the tremendous efforts and contributions of our employees globally and I extend my sincere appreciation.”

Net Revenue by segment and geography was as follows.

The company said the year-over-year decline in Heidrick Consulting largely reflects the impact of new revenue recognition accounting on enterprise license agreements, which increased deferred revenue compared to prior quarters, thereby reducing net revenue by approximately $3.8 million, as well as the company's realignment initiatives within this segment.

Heidrick and Struggles also published full year net revenue for 2018 of $716.0 million, an increase of 15.2% compared to 2017, or 14.6% in constant currency.

“The new year has started well and our outlook for the executive search and leadership advisory markets is positive,” Rajagopalan said.

The company expects 2019 first quarter consolidated net revenue of between $165 million and $175 million.

In trading yesterday, Heidrick & Struggles shares closed at $33.86 up 0.15% on the day and 25.23% below its 52-week high of $45.29, set on 23 August 2018. Based on its current share price the company has a market value of $641.94 million.