Caldwell Posts Record Q3 Revenue Growth

As the pandemic subsides, executive search firms are roaring back. The latest to report is Caldwell, which posted a 210 percent revenue gain in its fiscal Q3 results. Let’s go inside the numbers.

July 12, 2021 – Caldwell has posted fiscal 2021 third quarter revenues of $35.8 million (Canadian), a 210 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 Dec. 31, 2020.

“Our third quarter revenue of $35.8 million represents a 210 percent increase over the prior year and our operating profit of $3.2 million represents a 336 percent increase over the prior year,” said John Wallace, chief executive officer. “Both financial results are the highest in our history, and while we are all participating in a vibrant market, there is no doubt that this has been a breakthrough year for Caldwell, in all aspects of our business.”

“Our Caldwell executive search organization saw a year-over-year increase of 134 percent – all of which came from organic growth,” Mr. Wallace said. “We have a larger partner team who are working on more searches per year at higher fee levels. Our IQTalent Partners segment delivered 76 percent of the consolidated year-over-year increase in revenue, responding to the ongoing economic recovery in the talent sector and seeing significant and sustained growth in demand for its services since pandemic lows. IQTalent Partners’ flexible on-demand pricing model coupled with their innovative use of AI technology is resonating with clients. In addition, our lead generation programs and robust word-of-mouth referrals continue to provide a strong pipeline for IQTalent Partners’ growth.”

Related: Skills Gap Points to Why We Need to Invest in People

“Our continuing vision for our two brands, working in tandem, is for IQTalent Partners to be a constant presence at our clients, providing recurring talent acquisition support, with Caldwell engaged for higher-end retained executive searches not done by the in-house teams,” Mr. Wallace said. “Together, we have created a comprehensive and seamless integration of products and services that addresses the talent acquisition needs at all levels for our clients.”

Trading on the OTCQX Best Market

OTC Markets Group, operator of financial markets for 11,000 U.S. and global securities, announced yesterday that Caldwell has qualified to trade on the OTCQX Best Market. Caldwell now trades on OTCQX under the symbol CWLPF. U.S. investors can find current financial disclosure and real-time quotes for the company on Upgrading to the OTCQX Market is an important step for companies seeking to provide transparent trading for their U.S. investors. For companies listed on a qualified international exchange, streamlined market standards enable them to utilize their home market reporting to make their information available in the U.S. To qualify for OTCQX, companies must meet high financial standards, follow best practice corporate governance and demonstrate compliance with applicable securities laws.

“Upgrading to the OTCQX market is an important step for our firm, our employees and our shareholders,” said Mr. Wallace. “The United States has been an important market for us and the primary source of our growth since we entered it in 2009.Through the first half of F’21, more than 80 percent of the firm’s total revenues were generated in the U.S. As we continue to transform into a high growth technology powered talent acquisition firm, we expect that a growing number of U.S. shareholders will be interested in Caldwell as an investment opportunity, so facilitating easier trading for them has been an important goal for us.”

Caldwell also recently closed its acquisition of 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.”

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: Recruiters Up Their Game in Diversity

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

Share This Article


Notify of
Inline Feedbacks
View all comments