Heidrick & Struggles International Sees Growth

Revenue Increase Drives Stock Rise

Shares of Heidrick & Struggles International saw a notable increase after the company's fourth-quarter revenue grew, driven by the strength of its non-executive search offerings.

Positive Stock Performance

The stock surged by 18% to $34.08 on Tuesday, reflecting an overall increase of about 27% in the last three months.

Revenue Growth

The Chicago-based management consulting and executive search firm reported a 7.8% increase in revenue, totaling $257.4 million. While executive search revenue faced declines, the company's on-demand talent and consulting businesses proved to be key growth drivers.

Diversification Success

Chief Executive Krishnan Rajagopalan expressed satisfaction with the company's progress, stating that significant achievements were made in expanding and diversifying revenue streams.

Strong Performance of Additional Offerings

Rajagopalan highlighted the exceptional performance of on-demand talent, Heidrick Consulting, and Heidrick Digital, which experienced a remarkable 44% growth in 2023. These segments accounted for more than a quarter of revenue in the fourth quarter.

Financial Overview

Heidrick & Struggles achieved a profit of $14.9 million, or 72 cents per share, in the quarter ending Dec. 31, compared to $16 million, or 78 cents per share, in the previous year.

Future Projections

The firm anticipates revenue between $245 million and $265 million in the first quarter, surpassing the $239.3 million reported a year earlier.