Heidrick & Struggles International Inc. (NASDAQ: HSII) reported fourth-quarter revenue rose 78.0% in constant currency, a fourth-quarter record for the Chicago-based firm. Growth in executive search revenue was led by its Americas operations.
“2021 was an exciting year of geographic expansion and industry-leading productivity in executive search, increased demand for our broad array of leadership, organizational effectiveness and culture shaping offerings from Heidrick Consulting, the addition of our high-growth On-Demand Talent business segment, and the initiation of a partnership for future digital innovation,” said President and CEO Krishnan Rajagopalan.
| (US$ thousands) | Q4 2021 | Q4 2020 | % change | % change constant currency |
| Net revenue | $285,539 | $160,987 | 77.4% | 78.0% |
| Reimbursements | $1,654 | $1,200 | 37.8% | |
| Total revenue | $287,193 | $162,187 | 77.1% | |
| Net income | $12,477 | $5,538 | 125.3% |
Revenue by geography
| (US$ thousands) | Q4 2021 | Q4 2020 | % change | % change constant currency |
| Executive search | ||||
| Americas | $168,700 | $96,328 | 75.1% | 75.1% |
| Europe | $45,084 | $32,135 | 40.3% | 42.4% |
| Asia Pacific | $29,579 | $17,857 | 65.6% | 67.6% |
| Total executive search | $243,363 | $146,320 | 66.3% | 67.0% |
| On-demand talent | $23,630 | — | nm | |
| Heidrick consulting | $18,546 | $14,667 | 26.4% | 26.4% |
Heidrick had 365 executive search consultants on Dec. 31, 2021, compared with 361 on Dec. 31, 2020. The company had 69 consultants in its Heidrick Consulting division on Dec. 31, 2021, compared with 65 on the same day a year ago.
Heidrick entered the talent platform space last year with its acquisition of Business Talent Group on April 1. The new On-Demand Talent business segment recorded year-to-date net revenue of $66.6 million and exceeded the company’s expectations due to increases in large account penetration, project wins, and higher than anticipated average project size when compared to the prior year, according to the company.
Full-year results
| (US$ thousands) | 2021 | 2020 | % change | % change constant currency |
| Net revenue | $1,003,001 | $621,615 | 61.4% | 59.2% |
| Reimbursements | $5,473 | $7,755 | -29.4% | |
| Total revenue | $1,008,474 | $629,370 | 60.2% | |
| Net income/loss | $72,572 | ($37,707) | nm |
Guidance
Heidrick forecast first-quarter net revenue to rise by between 39.4% and 44.6% year over year to between $270 million and $280 million.
Share price and market cap
Shares in Heidrick & Struggles were down 2.83% to $41.54 as of 11:40 a.m. Eastern time today; they were 24.93% above their 52-week low, according to FT.com. The company had a market cap of $837.54 million.