Heidrick & Struggles Posts 14.9 Percent Q2 Revenue Gain

As the pandemic continues to fade and hiring picks up, the turn for executive search firms is encouraging. Heidrick & Struggles is the latest to show positive signs, posting a 14.9 percent increase in revenue for the second quarter from the 2021 period. Let’s go inside its latest report to Wall Street.

July 26, 2022 – Executive search, leadership consulting, and culture shaping services provider Heidrick & Struggles / (NASDAQ:HSII) has posted second quarter revenues of $298.7 million, an increase of 14.9 percent vs. the prior year period. Revenue growth was driven by all regions in executive search, by Heidrick Consulting, and by the addition of on-demand talent.

“Our firm generated all-time high quarterly revenue and delivered another very strong margin performance,” said Krishnan Rajagopalan, president and CEO of Heidrick. “As companies adopt revolutionary new ways of working and make stronger than ever commitments to DE&I, purpose, and sustainability, our firm is transforming and building a virtuous cycle of leadership offerings, including new digital leadership solutions, that address our clients’ evolving and most critical needs.”

“Each of these offerings drives interconnectivity through our one Heidrick approach, while leveraging our unique assets – executive search, on-demand talent, Heidrick Consulting,” he said. Our differentiated strategy is working, and we are already starting to benefit from an increasingly diversified business with expanding cross-collaboration opportunities that drive our clients’ success and create long-term shareholder value.”

Executive search net revenue of $253.9 million increased by $29.8 million, or 13.3 percent, compared to net revenue of $224.1 million in the 2021 second quarter. Net revenue increased 19.4 percent in the Americas (up 19.3 percent on a constant currency basis), increased 7.2 percent in Europe (up 20.2 percent on a constant currency basis), and decreased 6.5 percent in Asia-Pacific (down 1.4 percent on a constant currency basis). All industry practices exhibited growth compared to the prior year, except for healthcare and life sciences.

Heidrick had 388 executive search consultants on June 30, 2022, compared to 369 at June 30, 2021. Productivity, as measured by annualized executive search net revenue per consultant, was $2.6 million up from $2.4 million in the 2021 second quarter. Average revenue per executive search was approximately $152,600, up from $132,700 a year earlier. The number of confirmed searches decreased 1.5 percent compared to the year-ago period.

On-demand talent net revenue of $22.4 million increased by $3.6 million, or 19.4 percent, compared to net revenue of $18.7 million in the 2021 second quarter. This was generated by an increase in average project size reflecting strategic initiatives to expand and penetrate key accounts, along with an increase in project extensions.

Heidrick Consulting net revenue of $22.4 million increased by $5.3 million, or 31 percent, compared to net revenue of $17.1 million in the 2021 second quarter. The firm had 66 Heidrick Consulting consultants at June 30, 2022, compared to 65 at June 30, 2021.

The Chicago-headquartered recruiter — the fifth largest global firm as ranked by Hunt Scanlon Media — recorded net income and adjusted net income of $24.1 million; diluted and adjusted diluted earnings per share of$1.19; year-to-date diluted earnings per share reached a record $2.08.

During the quarter, Heidrick’s board of directors declared a 2022 third quarter cash dividend of $0.15 per share payable on Aug. 19, to shareholders of record at the close of business on Aug. 5.

New Chief Diversity Officer

Heidrick & Struggles recently named Cecilia Nelson-Hurt as its new chief diversity officer. Ms. Nelson-Hurt joins the firm from L’Oréal USA, where she served as vice president, diversity, equity, and inclusion. She was responsible for shaping the company’s diversity and inclusion efforts that underscore its commitment to building an inclusive beauty brand and as an equal opportunity workplace. She also developed and facilitated its diversity and inclusion programs and worked with the company’s employee-led Think Tanks to create and implement strategies and initiatives that positively impacted employee engagement, consumer insights and community outreach. She takes the place of Kamau Coar, who shifted from a role as the organization’s chief legal officer to chief inclusion officer, overseeing its diversity and inclusion efforts, including talent development, employee resources, and culture.

Related: Heidrick & Struggles Names Chief Legal Officer and Corporate Secretary

“At Heidrick & Struggles, we are committed to building diverse leadership teams and organizations and creating inclusive workplace cultures, both for our employees and our clients,” said Mr. Rajagopalan. “We are delighted to welcome Cecilia who brings her deep passion, experience and commitment to advancing diversity, equity and inclusion to our firm. We look forward to further strengthening our focus and efforts on increasing representation and fostering an equitable and inclusive environment where all of our employees can thrive and achieve success.”

“It is an incredibly exciting time to join Heidrick & Struggles as the firm looks to accelerate its transformation and growth journey globally,” said Ms. Nelson-Hurt. “I am honored to have this opportunity to lead the company’s diversity, equity, and inclusion strategy and deliver long-term, sustainable programs and initiatives that build on its values and commitment to creating the most diverse and inclusive executive talent and leadership advisory firm in the industry.”

Growth in the Americas

Leanne Arcinue recently joined Heidrick as a consultant in the New York office, bringing prior experience from Egon Zehnder. She specializes in seeing the evolution of client leadership and seeks talent solutions in the technology services and Fintech sector. Ms. Arcinue brings expertise in consulting and IT services, including outsourcing sectors within the global technology and services practice.

Tonya W. Muse joined Heidrick as a consultant in the Washington, D.C., office. She was previously with Odgers Berndtson and had an almost 30-year career as an association executive. Within the social impact practice, Ms. Muse advises clients on government affairs, association leadership, and organizational initiatives.

“In these increasingly uncertain times, clients seek talent solutions that help them accelerate performance and growth and also deliver a sustainable, inclusive culture,” said Jaimee Eddington, regional leader, Americas. “These new consultants will provide organizations with the talent solutions and the support necessary to reach their strategic objectives while meeting today’s business challenges.”


Heidrick expects 2022 third quarter consolidated net revenue of between $260 million and $270 million, while acknowledging that some continued fluidity in external factors such as foreign conflicts, inflation, the interest rate and foreign exchange rate environments may impact quarterly results. In addition, this outlook is based on the average currency rates in June 2022 and reflects, among other factors, management’s assumptions for the anticipated volume of new executive search confirmations, on-demand talent projects, and Heidrick Consulting assignments, consultant productivity, consultant retention, and the seasonality of the business, along with the current backlog.

Related: Korn Ferry Posts 26 Percent Quarterly Revenue Gain

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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