July 25 2017
Net revenue rose 4.1% in constant currency in the second quarter at executive search firm Heidrick & Struggles International Inc. (NASD: HSII), but the firm posted a net loss of $18.2 million.
|(US$ thousands)||Q2 2017||Q2 2016||% change||constant currency (US$ 000s)|
Second-quarter revenue from executive search rose across all regions except Asia Pacific at the Chicago-based firm. In addition, revenue rose 35.3% in the company’s leadership consulting operations thanks to both organic growth and the acquisition of Philosophy IB last September.
However, Heidrick’s “culture shaping” business saw revenue decline 35.7%, and the company announced a noncash impairment charge of $39.2 million to write off the long-lived asset and goodwill impairment cause by the business line’s performance.
Heidrick reported it plans to combine leadership consulting and culture shaping into a combined offering going forward called “Heidrick Consulting.” The firm had acquired culture-shaping provider Senn-Delaney Leadership Consulting Group in December 2012.
Revenue by segment and geography
|Q2 2017||Q2 2016||% change||% growth in constant currency|
|Total executive search and leadership consulting||$134,540||$130,709||2.9%||4.3%|
Heidrick forecasts consolidated third-quarter net revenue of between $148 million and $158 million.
Share price and market cap
Shares in Heidrick fell 13.74% in early afternoon trading today to $19.15, and the company had a market cap of $358.8 million, according to Yahoo.