Caldwell says economic uncertainty weighed on Q4 search volumes
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Executive search and on-demand recruitment provider The Caldwell Partners International (TSX:CWL) reported continued economic and market uncertainty kept search volumes down in its fiscal year ended Aug. 31. Revenue fell 15% to C$22.2 million (US$16.5 million) in its fiscal fourth quarter.
Executive search professional fees fell 12.7% year over year and were weaker than anticipated as new search volumes declined during July and August, CEO Chris Beck said in a press release. IQTalent professional fees fell 26.2% in the fourth quarter.
“While results in both segments reflect broader economic uncertainties, we are seeing an increase in new search volumes in our first quarter ending Nov. 30, 2024, and expect to deliver marked improvement over our fourth quarter ended Aug. 31, 2024, and last year’s first quarter ended Nov. 30, 2023,” Beck said.
“With the US election behind us and expectations of increased economic clarity, we are optimistic that improved hiring demand will follow,” he said.
The Caldwell Partners International - Q4 2024
(C$ thousands) | Q4 2024 | Q4 2023 | % change | Q4 2024 (US$ thousands) |
Professional fees - Caldwell | 19,157 | 21,934 | -12.7% | 14,204 |
Professional fees - IQTalent | 2,894 | 3,924 | -26.2% | 2,146 |
Consolidated professional fees | 22,051 | 25,858 | -14.7% | 16,349 |
Direct expense reimbursements | 182 | 295 | -38.3% | 135 |
Revenue | 22,233 | 26,153 | -15.0% | 16,484 |
Gross profit | 4,529 | 5,464 | -17.1% | 3,358 |
Gross margin | 20.4% | 20.9% | - | - |
Net loss after tax | (471) | (6,505) | nm | (349) |
Full-Year Earnings
(C$ thousands) | FY 2024 | FY 2023 | % change | FY 2024 (US$ thousands) |
Professional fees - Caldwell | 74,669 | 77,102 | -3.2% | 55,362 |
Professional fees - IQTalent | 11,643 | 19,831 | -41.3% | 8,632 |
Consolidated professional fees | 86,312 | 96,933 | -11.0% | 63,994 |
Direct expense reimbursements | 839 | 868 | -3.3% | 622 |
Revenue | 87,151 | 97,801 | -10.9% | 64,616 |
Gross profit | 17,692 | 16,221 | 9.1% | 13,117 |
Gross margin | 20.3% | 16.6% | - | - |
Net earnings/loss after tax | 4,188 | (11,303) | nm | 3,105 |
Share price
Shares in Caldwell were at C$1.07 (US$0.76) as of last trade and 10.83% below their 52-week high.