Heidrick net revenue rises 2.7% in Q2 across business lines
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Heidrick & Struggles International net revenue rose 2.7% in the second quarter with growth in its executive search, on-demand talent and consulting businesses. Executive search revenue rose in the America and Asia Pacific but declined in Europe.
“Our team delivered a strong second quarter,” CEO Tom Monahan said in a press release. “In a very complex operating environment, clients continue to need help engaging, assessing and enabling critical leadership talent — and our world-class colleagues met those needs with energy and creativity.”
Still, Heidrick swung to a net loss in the second quarter amid a noncash goodwill impairment charge of $16.2 million mainly related to its on-demand talent segment, a $6.9 million restructuring charge relating to a workforce reduction and a $1.2 million earnout fair value adjustment.
“Even as we continued to deliver value to clients, we also made important changes to our leadership team and staffing levels,” Monahan continued. “As a result, we enter the second half of the year with more targeted solutions and better alignment of our organization with client needs.”
In its executive search division, the company said the number of executive search consultants fell to 415 in the second quarter from 423 in the second quarter of last year. Productivity, as measured by annualized executive search net revenue per consultant, was $2.0 million compared to $1.9 million, reflecting a lower number of consultants combined with higher revenue.
Heidrick & Struggles International Inc. - Q2 2024
(US$ thousands) | Q2 2024 | Q2 2023 | % change | % constant currency |
Net revenue | 278,626 | 271,225 | 2.70% | - |
Reimbursements | 4,251 | 2,552 | 66.60% | - |
Total revenue | 282,877 | 273,777 | 3.30% | - |
Net loss/net income | -5,157 | 8,982 | nm | - |
Net revenue by segment and geography
(US$ thousands) | Q2 2024 | Q2 2023 | % change | % constant currency |
Executive search | ||||
Americas | 147,078 | 138,563 | 6.10% | 6.30% |
Europe | 40,082 | 45,567 | -12.00% | -11.70% |
Asia Pacific | 22,807 | 22,649 | 0.70% | 3.30% |
Total executive search | 209,967 | 206,779 | 1.50% | 2.00% |
On-demand talent | 41,895 | 39,240 | 6.80% | 7.30% |
Heidrick consulting | 26,764 | 25,206 | 6.20% | - |
Guidance
Heidrick forecast third-quarter revenue of between $260 million and $280 million, which ranges from a year-over-year decrease of 1.2% to growth of 6.4%.
Heidrick & Struggles shares closed yesterday at $35.78, down 0.75% on the day and 1.60% below its 52-week high of $36.36, set on 24 May 2024. The company has a market cap of $724.49 million.