Consolidated net revenue down at year-end 2019 for Heidrick & Struggles
Heidrick & Struggles International has released its results for the fourth quarter and fiscal year ending 31st December 2019.
Consolidated net revenue in the fourth quarter was $180.0m was down 2.8% from $185.3m in Q4 2018. Executive search net revenue was down 3.3% to $163.0m. Heidrick Consulting’s net revenue was $17.0m, up 1.4% on Q4 2018. Operating income was $14.3m while net income was $10.6m, both down on the previous year’s quarter. Adjusted EBITDA in the fourth quarter also fell to $20.5m.
For the full year, consolidated net revenue was down 1.3% to $706.9m from $716.0m in 2018. Executive search net revenue decreased to $646.4m while Heidrick Consulting net revenue fell to $60.6m. Operating income for the year fell to $63.5m and net income decreased to $46.9m. Adjusted EBITDA for the year also decreased by $1.6m to $89.1m.
“By successfully navigating market volatility, we produced quarterly net revenue at the high end of our guidance and closed the year within one percent of last year’s record net revenue results,” stated Heidrick & Struggles’ president and chief executive officer, Krishnan Rajagopalan. “Our full-year adjusted earnings surpassed a very strong 2018, as our continued focus on operational efficiencies allowed us to deliver consistent adjusted operating margin on slightly lower revenue. Cross-collaboration between Executive Search and Heidrick Consulting also continues to generate synergies as evidenced by Heidrick Consulting’s sequential net revenue growth. Our recent acquisition of 2Get in Brazil expands our growth platform throughout Latin America, where we see compelling opportunities for both Executive Search and Heidrick Consulting. We are particularly excited about innovative and transformational projects such as digital transformation, sustainability and diversity & inclusion, that we are participating in with both our clients and internally.
“Through our C-suite focus, we’re playing a pivotal role in shaping our clients’ future. We continue to uncover attractive opportunities emerging across the increasingly complex and fast changing industry landscape. In 2020, we intend to leverage our market position and strong cash flow to make additional disciplined investments in our product teams and provide new innovative offerings to broaden our capabilities and support the foundational changes our clients seek to implement. We take a long-term approach to the business, and believe that investing in innovation and growth is directly correlated with the ultimate creation of shareholder value.”
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