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Dec 31, 2019
Heidrick & Struggles Q4 2019 Earnings Report
Heidrick & Struggles' Q4 2019 financial results were announced, with net revenue at the high end of guidance.
Key Takeaways
Heidrick & Struggles reported Q4 2019 net revenue of $180.0 million, which was at the high end of their guidance. While this was a decrease of 2.8% compared to Q4 2018, the company highlighted Heidrick Consulting's sequential net revenue growth and their focus on operational efficiencies.
Net revenue for the fourth quarter was $180.0 million, at the high end of the company's guidance.
Heidrick Consulting's net revenue was $17.0 million in the fourth quarter, marking the third consecutive quarter of sequential growth.
The average revenue per executive search was $149,300, compared to $142,000 in the fourth quarter of 2018.
Cash and marketable securities totaled $332.9 million at the end of the year.
Heidrick & Struggles
Heidrick & Struggles
Heidrick & Struggles Revenue by Segment
Heidrick & Struggles Revenue by Geographic Location
Revenue by Segment
Executive Search Revenue
CapyFin.comOn-Demand Talent Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
The company expects 2019 first quarter consolidated net revenue of between $165 million and $175 million.
Positive Outlook
- The outlook is based on the average currency rates in December 2019.
- The outlook reflects management’s assumptions for the anticipated volume of new Executive Search confirmations.
- The outlook reflects management’s assumptions for Heidrick Consulting assignments.
- The outlook reflects management’s assumptions the current backlog.
- The outlook reflects management’s assumptions consultant productivity and consultant retention, and the seasonality of its business.
Challenges Ahead
- The company is proactively monitoring the significant level of uncertainty associated with the Coronavirus.
- The company is keeping in close communication with its team and clients in affected regions.
- The situation is still fluid and it is too early to quantify.
- It is reasonable to assume that along with the reported economic pressure, the Coronavirus could have a related impact on first quarter results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income