October 26, 2021
Heidrick & Struggles International Inc. (NASDAQ: HSII) third quarter net sales increased 83.8% to $ 263.8 million. Excluding the impact of exchange rate fluctuations, which had a positive impact of $ 2.3 million on year-over-year results, consolidated net revenues increased by 82.2 %.
The US-based executive search firm also reported a record operating profit of $ 33.3 million, and operating profit margin increased to 12.6% in the quarter.
Net sales growth was driven by all regions of executive search, as well as Heidrick Consulting and On-Demand Talent.
Executive Search revenue in Europe was $ 42.6 million, up 47.7% from the same period a year earlier. Revenue in Asia-Pacific was $ 30.1 million, an increase of 47.7%. In the Americas, sales jumped 86.2%.
| (in thousands of dollars) | Q3 2021 | Q3 2020 | % cash |
| Net revenue | 263 825 | 143,544 | 83.8% |
| Refunds | 1490 | 957 | 55.7% |
| Total income | 265 315 | 144,501 | 83.6% |
| Net loss / income | 24,498 | -26,178 | – |
For the nine months ended September 30, 2021, record consolidated net sales were $ 717.5 million, compared to $ 460.6 million in the first nine months of 2020. Excluding the impact of fluctuations exchange rates, which had a positive impact on earnings of $ 14.3 million, consolidated net sales increased by $ 52.7 million. %.
“Our strong third quarter and year-to-date results demonstrate growing market demand for our powerful combination of executive search, on-demand talent and consulting activities,” said Krishnan Rajagopalan, president and CEO of Heidrick & Struggles. “Our team’s remarkable agility in adapting to market changes is evident as we continue to grow our accounts, deepen our relationships with our clients and differentiate ourselves in the market. “
The group reported third quarter 2021 executive search net sales of $ 221.6 million, up 71.5% from net sales of $ 129.2 million. dollars in the third quarter of 2020. Excluding the impact of exchange rate fluctuations, which had a positive impact of $ 2.0 million on year-over-year results, net business grew 70.0%.
Heidrick Consulting’s net sales of $ 17.9 million increased 25.1%, compared to net sales of $ 14.3 million in the third quarter of 2020. Excluding the impact of fluctuations in exchange rates, which had a positive impact of $ 0.3 million on year-over-year results, Heidrick Consulting’s net sales increased 23.0%.
On-Demand Talent, a new business segment, generated net sales of $ 24.3 million, exceeding company expectations.
Executive search revenue by geographic area
| (in thousands of dollars) | Q3 2021 | Q3 2020 | % cash | % constant currency exchange |
| Americas | 148,844 | 79,947 | 86.2% | 85.6% |
| Europe | 42 676 | 28,902 | 47.7% | 43.4% |
| Asia Pacific | 30,126 | 20,394 | 47.7% | 46.1% |
The company has 368 Executive Search consultants as of September 30, 2021, compared to 362 as of September 30, 2020.
Rajagopalan continued, “Strategically, we continue to make significant transformational progress by investing in innovative and technology-driven offerings to meet the future needs of our customers, while driving growth and shareholder value. “
Shares of Heidrick & Struggles International closed yesterday at $ 46.06, up 2.95% on the day and 7.94% below its 52-week high of $ 50.03, set on the 8th. October 2021. The company has a market capitalization of $ 899.52 million.
