Caldwell Posts 39 Percent Second Quarter Revenue Gain

As the pandemic subsides, executive search firms are roaring back. The latest to report is Caldwell, which today delivers results for its fiscal 2021 second quarter. It reveals a solid gain from a year ago and optimistic forecasts for the rest of the year. Let’s go inside the latest numbers!

April 9, 2021 – Caldwell has posted fiscal 2021 second quarter revenues of $24.1 million (Canadian), a 39 percent increase from the same period a year ago. Financial results include those of IQTalent Partners, Inc. (IQTP) beginning on the date of acquisition of December 31, 2020.

“In our year-end review we talked about our work to transform Caldwell into a high growth technology-powered talent acquisition firm,” said John Wallace, CEO. “We have made great strides towards that goal since our acquisition of IQTP, as evidenced by the strong revenue growth we are seeing in all aspects of our business.”

Second quarter net income was $370,000 ($0.016 per share), as compared to net income of $316,000 ($0.015 per share) in the comparable period a year earlier. Direct expense reimbursements decreased $338,000 due to decreased expenses incurred on travel for partners and candidates due to pandemic-related travel restrictions resulting in a shift in the search process. “More than just recovering from the economic impact of the global pandemic, we’ve had a record setting start to fiscal 2021 – an incredible feat and a huge tribute to the entire team of Caldwell and IQTalent Partners,” he said. “Our most recent quarterly revenue of $24 million was a 33 percent increase over the prior quarter, nearly a 40 percent increase year-over-year, and is the highest in our firm’s history.” New business booking activity has been steadily rising at Caldwell and that trend is expected to continue.

Recent Acquisition

Caldwell recently signed an agreement to acquire IQTalent Partners. “For 50 years, Caldwell has been connecting clients with transformational talent. With this merger, we are setting our sights on transforming the world of talent,” said Mr. Wallace at the time of the purchase. “IQTalent Partners’ unique service model and innovative use of technology, paired with Caldwell’s expertise, network and resources will allow us to serve our clients in a more integrated fashion and allow us to have a greater impact on their long-term success, which remains our primary mandate.”

Related: Heidrick & Struggles Acquires Business Talent Group

“Our merger with IQTP represents a transformational event for the firm as we evolve into a technology-focused recruitment model for the benefit of our clients,” Mr. Wallace said. “Our vision for our two organizations, working together, is for IQTP to be a constant presence at our clients, providing recurring talent acquisition support, while Caldwell will continue to be engaged for higher-level retained executive searches not in the purview of the in-house teams. Together, we provide a seamless integration of talent acquisition solutions at all levels for our clients.”

Related: Mill Rock Capital Takes Investment Stake in The Execu|Search Group

Founded in 2009, IQTalent Partners provides talent acquisition solutions to 300 corporations from Fortune 500s to startups across a wide range of industries and functions throughout North America, Europe, Australia, Asia, and South America. The firm recently launched IQTalent Xchange, a market concept using advanced artificial intelligence (AI) combined with human expertise to create a passive candidate marketplace. The proprietary platform includes more than 300 million global professionals, offering its customers unprecedented access to the most qualified candidates.

Senior Leadership Changes

Caldwell also announced changes to its senior leadership team as the firm expands operations after its acquisition of IQTP. Mr. Wallace has relinquished the role of president of Caldwell, and the board has appointed Chris Beck in his place. Mr. Wallace will continue in his role as CEO and Mr. Beck will continue in his role as CFO. In his expanded position, Mr. Beck will be responsible for all financial and investor relations functions of the enterprise, and will provide day-to-day leadership and management of the executive search business. He will focus on the firm’s growth strategies and he continue to lead Caldwell’s diversity, equity and inclusion initiatives.

Related: Riviera Partners Acquires Arete Partners, Creates Riviera Ventures

Additionally, David Windley has been appointed as president of IQTP, responsible for the day-to-day leadership and management of the firm and focused on the its continued growth. He will also join Caldwell Partners’ executive leadership team. And Mike Falagario has been appointed vice president, finance of Caldwell, responsible for the finance and accounting functions of both Caldwell and IQTalent Partners. He will remain as corporate secretary.

Related: ZRG Acquires Turnkey Search

“These changes are part of an overall growth strategy as we continue to transform into a technology-powered talent acquisition firm specializing in recruitment at all levels,” said Mr. Wallace. “By combining our two firms’ capabilities, expertise, network and resources, our teams will have the ability to strengthen our client offerings and create a seamless recruiting experience all the way through the C-suite and the boardroom for our clients. Chris, David and Mike are experienced Caldwell and IQTP employees who are well-placed to usher in this exciting new era of growth for our combined organizations and to ensure that our teams are able to remain wholly focused on one thing: putting clients together with the right talent to fuel their success.”

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor  – Hunt Scanlon Media

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