Heidrick & Struggles Reports Second Quarter 2016 Financial Results

Heidrick & Struggles has seen revenues increase 11% year-on-year, buoyed by revenue growth in its American and European operations, according to results for its second quarter ended 30 June 2016.

The results, published late yesterday, reveal consolidated net revenue (revenue before reimbursements) rose 11.9%, or $15.8m (£12m), to $148.9m from $133m in Q2 2015, while net revenue increased 12.2% on a constant currency basis.

Net revenue from the group’s executive search and leadership consulting operations increased 11.6% year-on-year to $139.2m from $124.7m in Q2 2015, with the group’s Americas and Europe regions driving second quarter revenue growth. Net revenue from these divisions were up 11% in the Americas and up 30.3% in Europe.

However, revenue in Asia Pacific declined 4.6% over the period.

Across the group, every industry practice contributed to growth in the second quarter, apart from education & social enterprise.

H&S Q2 results at a glance:

• Consolidated net revenue (revenue before reimbursements) increased 11.9%, or $15.8m, to $148.9m from $133m in Q2 2015.
• Net revenue increased 12.2% on a constant currency basis.
• The number of executive search and leadership consulting consultants was 336 at 30 June 2016, compared to 332 at 31 March 2016, and 325 at 30 June 2015.
• Operating income increased 27.5% or $2.5m, to $11.7m and adjusted EBITDA increased 29.1%, or $4.1m, to $18.1m compared to Q2 2015.
• Net revenue from culture shaping services increased 15.9%, or $1.3m, to $9.7m from $8.4m Q2 2015. The impact of exchange rate fluctuations adversely affected results by $0.1m or 1.4%.
• The number of Executive Search and Leadership Consulting consultants was 336 at June 30, 2016, compared to 332 at March 31, 2016, and 325 at June 30, 2015.

"Our strong second quarter results were driven by revenue growth in the Americas and Europe, as well as in Culture Shaping," said Tracy Wolstencroft, Heidrick & Struggles' President and Chief Executive Officer. "Our continued focus on attracting and retaining the highest caliber consultants in the industry contributed to increases in all our key metrics and revenue growth in almost every practice. The solid revenue growth achieved in the second quarter helped drive good improvements in operating income and margin and adjusted EBITDA and margin."

Read the full report here.