HSII - Earnings call transcript Q4 2018 | Heidrick & Struggles International, Inc.

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Operator

Good afternoon. This is Heidrick & Struggles’ Fourth Quarter and 2018 Quarterly Conference Call. This call is being recorded. It may not be reproduced or retransmitted without the company’s consent. At this time, all participants are in a listen-only mode. a conduct will we question-and-answer session. Later, be will provided at time. that Instructions

will Now of over to ahead. Investor the Julie call and I Estate. turn Real Creed, go Please Relations Vice President

Julie Creed

and for Good everyone, Heidrick Fourth and you XXXX afternoon, participating call. conference thank & in Struggles quarter

also adjusted we encourage the and and in non-GAAP posted homepage on is turn measures to forward-looking Also, call in and we refer won’t remarks, our adjusted of our for be heidrick.com, slides slides. in be and net adjusted the the you. X of between GAAP be EPS. language income, IR page we non-GAAP Rajagopalan; we’ll are operating explain and press opening XXXX Slide please release results. our reconciliation Krishnan, third schedule and but on speak our our our them me slides, are margin. our in found supporting that I’ll we'll Financial ask comments. website better Officer, and quarterly over of our And you believe and CEO, to our can These making income quarter A our margin, now that Harbor referring last referring to Joining in financial Safe to release the Chief statements contained measures news and presentation. and specific President remarks adjusted financial some our to Mark EBITDA of numbers EBITDA additional at today’s adjusted to adjusted Krishnan opening operating during call print to our we you In Harris. Specific We on context, our results

Krishnan Rajagopalan

and and great We the and transformational which afternoon front a everyone, quarter I'm to joining issues thank culture, on Struggles' world, experience. results. our relevant achieved We thank center privacy. pleased leadership around on planning, the records. employees solutions our a and including It enhance call. tech company made were we you. our XXXX year succession progress for report enabled service fourth data of number to diversity in On annual and data-driven, & most our was journey behalf inclusion of Heidrick Julie, you Good and

compared to searches, XXXX. $XXX,XXX and following culture average First, the let me share by for business the This row a Every productivity integration shaping. of which confirmed financial to net growth. and driven year XXXX key was revenue some $XXX were million every Search. was up practice transformational than our growth of XX% revenue was More XX% Net in record of year for leadership Heidrick our $XXX revenue group region in year. the compared XX-year Search Executive of last more annual highlights $X.X million revenue in to per nearly increased to XXXX growth. of was million, also search revenue XXXX. and of Executive company sixth consulting history, of This a year-over-year than consultant our per a contributed growth Consulting

services in going number and clients and search integrated focused single We're of of a meaningful now advisory our assignments to a are is line the higher are in of We seeing with this consulting increase growth. revenue. quality reflected and integrated on a

XX% these all X.X% best we share income of margin results, of We achieved to Turning of of administrative operating increased million. revenue. general delivered consolidated diluted $XX.X reduce under our XX to back years. the and in $X.XX, We earnings net expenses and to per operating

last on increase for To to communicated $X.XX clients quarterly of tech two drive having we service was financial share, for and that premium a and streamlining Finally, businesses, experience enterprise the cross reflecting achieved the Key an per data-driven cash XX%. steadfast our collaborations, enabled of dividend our cash we increase our than focus scale these focus to our business future, are the structure. our strong cost impact more in to increase to our results year. four confidence a position our to on priorities and increasing maintain

we an to Some examples initiatives program strategic with Board through team platform effectively training collaboration with than these for the the emerging our were practice opportunities intelligence to Heidrick is solutions. business can the we insights executed and trained and increase. data, executive artificial firm a and who Search two footprint needs clients disruptive presence the the clients more Connect, second, more client continued More drive launched for larger, Ireland. our areas, and Executive diverse is clients to assessing sessions. via acquisition machine communicating expanded companies proprietary We publicly new supports We of and with learning and candidates, increase leadership in identify our office numerous capturing businesses and diversity growing broader search new in executives than business talent through their fast a XXXX and enterprise our globally. driving region consistently cross wide the to establish employees portal first Denmark innovators our AI searches first Way, recognizing and of leadership committed and helping between XXX Heidrick strategies a Heidrick Dublin, Consulting Nordic transformation our continues We our that We data in on search sharing were, delivering the were accounts adoption our new imperative. Director in our through and searches to

over our operational as our goals. strategic, future values, going especially initiatives I'm in key of our Mark? call about our to growth one progress Mark I'm firm the results, by We potential. XXXX. discussing turn our to to are discuss finish the excited financial then and and in achieving some I'll win further to living financial

Mark Harris

quarter of strong driven by or $X.X $XX the forecast XX% been I'll million would on the upticks Americas guidance. XX.X% in of a our which our of of at or of as Krishnan Without revenue and have growth our the was of fourth performance year-over-year. upticks. annual result you, the today. in confirmations, so revenue finished recognition Thank Search Good to high-end which almost an of the for afternoon average results. of for five up impacted increase due call fourth highlights $XXX.X on Revenue Executive X.X hit quarter; Krishnan. license Executive the quarter to in higher ASC XXX compared the market. enterprise we to XXXX, however, you a was in revenue joining the on fourth to adoption now the million, million XX.X% everyone million of related years. uptick the of agreements. thank are retainers, or strong us to and in region year-over-year as declined methodology $XX.X Enterprise was year difficult Search, higher impact X.X% previous that the quarter variability This of over than is million Irrespective focus Consulting Heidrick license result one years recognized decline the agreements guidance

was pro million. by year-on-year. annually, revenue However, a X% when this impacted looking on $X.X annually Consulting ASC Thus basis marginally down only XXX x at forma Heidrick was

were increase related higher from X.X% fixed related to primarily for to fourth $X.X XXXX's be Given $X.X was numerous in and performance XXXX was Salaries quarter, XXXX. forward we and XXXX pleased to invest strategy of by their as in increased pivot million employee a with million the to discussed business, we look benefits consultant have compensation that their going we growth for year costs into our or talent future. continue the times to

performance in The other $XXX,XXX variable the of with the search. was related to increase compensation strong associated

the of in quarter of service last quarter, For general costs, travel XX% a and same lowering quarter and in Much the regional our XXXX we down external quarter fell worth was fifth XXXX $XXX,XXX. consultant costs, is practice lieu office costs. the $XX.X year's global and XX.X% G&A approximately meeting. of to second a X.X% fourth entertainment result of in administration meetings expenses in was down declined will that from percentage or decline of and It noting occupancy the million have revenue G&A last this of as consecutive year-over-year. year. meeting the the

the As these to $XXX,XXX expect such, of pertaining we expense for only incremental approximately meetings. G&A year

technology in Now of operating quarter XXXX of from million of operating our of income which Operating million income this improved margin of margin operating proud X%. adoption fourth the turning platform. through and was significantly XXXX increasing fourth $X.X was in operating achievement part $XX.X X% income. the and last quarter to year's enabled very We're adjusted

focus income quarter diluted were I of far also Finally, to to on at quarter of year. per earnings share times really last was share know net last fourth million what we full $X.XX. $X.XX in adjusted diluted highlight what earnings and share in of $X.XX want I year's XXXX's fourth quarter, I commented income per achieve. nearly just for of were the $X.X year's $XX.X earnings fourth with the and income growth $XX.X to improved demonstrates this and but per share highest years. achieved This earnings $X.XX net X.X adjusted the Net our of over diluted per million XX shareholders and million year can

fourth XXXX, higher flows our bonus and entered cash XX%. $XXX.X increase $XXX.X stronger lower our balance of million paid in in we an in turning equivalents payments for with compared related XXXX, the of to end and compared sheet, by increase capital that expenditures, the and investment severance Now million XXXX reflects to of offset cash of quarter cash balance payments at XXXX to partially to The Denmark. restructuring and XXXX late operating cash

the million for to that each compensation the out Earlier performance. consultant and cash this of position April year most compensation we our And we portion related pay to billed will this quarter year of variable approximately million throughout related in $XX accrue approximately paid know, deferred $XXX As are as year. you year's last bonuses we March in in bonuses.

shareholders. two flows, expenditures, anticipate leverage result to XX% & to Heidrick future for Struggles' flow a capital our our absent $X.XX on pertaining time acquisitions. shareholders, to to different we a from would and us to free always approved any excess quarter expect using our increase run working from strategy of our performance, always quarter will quarter. Based increase lower to this cash has we dividend balance cash We in strategy needs, past led invest cash first will to be our long ability rate and adequately evolving. our capital in operating commitment strong by above don't growth the our $X.XX capital the and return This the assuming of As years. XXXX allocation Thus operating

me in quarter. Now you first provide the the outlook let

$XXX.X showed million is back over quarters, at to and the fourth of million, of on delivered first the regards the the we expect maintain in quarter and seasonality continued our and will compared we to another same As We With climate. for net fees, be our achievements. growth, and last expectations shareholder on quarter. year's based with deliver reduction search to Heidrick to we turn In and the revenue the $XXX first to for value. confirms many future Krishnan. search a discipline economic in historical With cost fourth outstanding finished guidance intend investment the Consulting the end first reminder, XXXX year call in that, balancing quarter I'll initiatives focus trends with summary, million the backlog confirmation anticipated the range assignments, in the XXXX this, $XXX of quarter,

Krishnan Rajagopalan

all see strongest We've usual Slide January with trends the can Mark, across experienced search delivered you another it's a holidays and four thank continue in years. to regard quarter the robust regions. XX was the market which confirmations seasonal you. results we around been in to our great see We

market. to solid are see continuing We a

drive service priorities serviced businesses, to containment and in and the continue enterprise drive Our experience our focus initiatives collaboration, We improve our already cross our in initiatives of premium They well increased our clients for four XXXX. increased further maintain to a impact structure. XXXX. cost will scale on two a cost

focus to consultants promotions and practices Effective January drive internal see growth. to We women X, Simultaneously, consultant XX programs. consultant a men annual huge XX where internal opportunities number will development into almost markets XX our and as the strategically process, expansion we promoted and teams. of we to double good support to will individuals principal new opportunistically on we we in promoted year continue our training programs for and hire consultants continue development and total last testament part our for

partner Heidrick our we promotions a last fantastic announce Consulting In What start business that We momentum continue will in XXXX. we build to expect we continue. March. the year to to launched and

is than XXXX into going going was higher backlog into it Our XXXX.

XXXX, greater in seeking initiatives search to development and our and training services. bringing holistic leadership collaborative relationship have the we value of a result a As advisory clients and stronger between consulting much are

few their ongoing XXXX. for demand we hires need in trusted strong areas overall have age our positioning we a provide of and revenge, inclusion, launched they continuously growth starting to who disruption. a the the our hiring digital attract are and framework are hit in and leadership XXXX. for business the of this capital leadership, new culture the talent strengthen XXXX the how increased and which in aiming market. our culture accelerating Our digital of advisor plan proposition book, Recent a are in of in build the implications we and are come in increase companies can digital expand wide human and and manage businesses, at right the Earlier capital with and how are investments acceleration, leadership talent, solutions. diversity aligned To with which stride continuous we human and solutions innovation month, range are principals simplicity of looks and of performance both These understand partners offerings acceleration our organizational back are just executive of can and talent battling established and to helping disruption value of thought drivers our leaders in impact that our the a Goliath's

has end focus finished our service executive is seamless help Talent talent from company us allowing Last am the Rauch, candidates Directors most to our rolling data exciting and globe of Stacey an assessment for the competitors. to XXXX of thank the and more our our help to premium on and data-driven to tech and the we is support can of capture I this impact, hard on us access formidable platforms I way with to incredibly what collection continued on-demand experience serve their and getting an will absolutely The providing positive. This been our high see on we priority talent It enabled year. with do. high one is by deeper performance. demand pressing business announced efficiency our assessment for better also are at their employees for another guidance and them BTG's to time. their providing and of help example, clients thank they successful work a placements transformation In our Heidrick. accelerate valuable January. our we Board agreement led needs. tools called board energized welcome clients around BTG us Again, leadership January solutions like internally fulfill you For This that on I'd yet Business who and and about our points. best be joined a out us we externally solutions. that XX clients because drive at at clients, more new their to offer exclusive us premier improving results highly capitalize the response the journey differentiates with better can candidates want Group search our end year momentum place has of

the forward continuing are XXXX to future. and We momentum are about excited looking in

Now questions. we'll be take your to happy

Operator

Steinke Kevin with Barrington question Instructions] from you. comes first Thank [Operator Our Research.

Kevin Steinke

Good afternoon.

really of you So driving streamlining XXXX year margin had terms cost obviously in a and nice base. expansion your in

assuming reasonable are forward to margin you drive we going level get the base growth there streamline line As operating of still continued look to opportunities a forward? cost and top XXXX, expansion

Mark Harris

we we as and those side to lenses, search expect respective at I expanding take answer is Mark into their stab in and think the grab would Asia we we as margins the it it at it's first at on scale at look two the look expand. to first Harris. and of kind I'll look the expanding And yes. different markets have within Kevin, Europe, Sure we Pacific also

on part the again most we enterprise will the would it. pivot on organically to XXXX again and see one side you be strategy on lead second expansion on and Consulting over growth we're for from point view. potentially Heidrick of overall the that their in be of those XXXX really where The made organically an What margin some would focused continued expansion and

we will continue enable was some think as improvements I more margin the think well. addressing there's think side question fence, our we from heck I that's the technology of a do if as but in of derive to we I and that lot G&A, pertains it a I on doing search think also a to consulting, job as XX%, don't to we're up that

Krishnan Rajagopalan

is it here. Krishnan Kevin,

me we implement the and our we as think are so just technology the search that see get advantages add, benefits Let platforms, some that still look to on expect additional I continuing that of to through well.

through So midway to we is this. and driving will the journey continue be

Kevin Steinke

Do I investments on increasing helpful. and of you us any sense know you mean year? plan referenced your Okay a for planned in you perhaps other year. could the any increase hiring for XXXX? this I anticipate that meaningful scale touch you investments this give have of

Krishnan Rajagopalan

that search so to yes we've great promote look going just and continuing internal we're got Sure, I people. perspective think development to headcount on be a program the Kevin, a from side,

new class I we of As promoting said will in partners March. be a here

as develop to to need we'll We hiring platform also principals grow and pool in levels Heidrick to areas, think will while be historically, probably search seen partners that We which be less is we'll and don't I area. some to strategic terrific that that in to but you've extraordinary but our continue markets doing continue will in internal investing continue and so well be Consulting, an than be going level. talent hiring. we the hiring It into that's

more Consulting in modest see probably some on platform. aggressive the growth see you'll the growth and So search Heidrick you'll

we'll before data-driven to invest H putting driving a well. with continue addition see [indiscernible] In as in agenda we our to Labs that, becoming little more and towards of a will money that be bit in business we

Kevin Steinke

you you Do Okay, in Consulting, obviously the pretty at in can great. margin that a XXXX and the Heidrick some think realignment on generate integration where enough to you up in Heidrick much maybe you you're done Heidrick from where potentially in expansion now XXX is with start some business point mentioned had Consulting? And is XXXX. know following growth Mark Consulting in the organic driving headwind XXXX, pipeline in you ASC their solid

Krishnan Rajagopalan

Krishnan. it's Kevin, Yes

we're me Let got great well then grow this that take here XXXX as I business The generation year Look, some got think that culture is next and was and a this That we offerings for ready done. We've where doing and as is and jump talent created one poised in to now can you pivot can Heidrick talent Consulting, performing business we It's Mark lot good of a this of business. all are. is we've well. team, of new back. grow. that's well. exactly

we is in backlog previous as year. mentioned the better Our

contract value pulled we that XXXX Our business. total was for in, in the XXXX larger

are Our stride. to their hit new we partners hired beginning

optimistic we're the add…? you do we're this to Mark want So grow at point business. and think

Mark Harris

No, to not much more it. to add

Kevin Steinke

okay. it, Got

you the kind think partners here XXs, question number in consultant housekeeping talked your presentation it only, seems the a headcount of for Just previously Heidrick you've Consulting? about what headcount? change a the is I talked You and of did

Mark Harris

important was it think I and that change change we to did make. we wanted an Kevin,

and you what you is critical bench the we think do show way when which demonstrate which we it, in is, showed of thing We the I side consultancy as partners consultants. principal that where also on same As want all have the the we've level, and felt the really principals really we to report side. it know, used partner component that a both like do search to we the just is it search

and So is see speaking XX do. continues to where which where trying pivot was earlier XX from are what Krishnan what to to when this of tells it to you in the we terms grow

the on we're quality going we also principals not think quality as range growth I partners and very strong plan. a that strong but only well to of partner we do have have continue

Kevin Steinke

the hearing Okay, lastly outlook good. globally in some clients I or Europe what signs there, economic from impact signs slowing it guess you might any on been in in economic your business? and Europe, anywhere me, there's all else that from things its be your terms are of weakness of

Krishnan Rajagopalan

I in but haven’t it's so Kevin, been little the offset by conversations, we seen would is and think we in Europe those anything materialize Yes rest. more quite Germany we've I less than in but the France, volume what Europe Clearly hear –but seen you. UK, tell

actually probably having, we conversations, same as we're the but same that's the same see look read conversations is the some pretty this So that at and of solid of headlines now. data what data We on right some you're our seeing. hear the

Kevin Steinke

Okay, much. thank you got very it,

Krishnan Rajagopalan

Thank you.

Operator

Thank you.

comes Our from next Tobey with Sommer question SunTrust.

Tobey Sommer

about I quality of describe of the that had [indiscernible] and question metrics quality would diversification one of kind to what use you revenue improvement? the Thanks.

Mark Harris

was there line. bit Yes, on of echo little that a

can reframe question the around is I quality comment was of think I made revenue, right? if that I was it here on your it

Tobey Sommer

sorry exactly That's for that. right,

Mark Harris

Consulting, the no many long-term we're Yes, search collaboratively a of what opportunities across in are that. think work brands so a that we we're look as with and well us the the about nice clients gives We're them as now I coming is quality of problem. a and with terms in Heidrick seeing result across the uptick as to how seeing are nice beginning working then, that's optimism there uptick that revenue, of up in are of we that and at that it search Yes, that. when

And when underneath strong driving it's in the those Heidrick So about think that, side. clients. we're we are that clients revenue going how right

we by [ph]. quality what that's the improvement mean So

Tobey Sommer

it look describe I company at trends your XXXX basis? would market are on you an you like average looks in you with the your understanding, line how with top-line, outgrew do the your as the share, sticking Okay, first market for guess guidance markets the growing you think in end at quarter, that you or

Krishnan Rajagopalan

I absolutely think that's right.

growth at the the some think very we're past getting share able our doing are what was us. our very also What of and We're we're terms as what similar comment only is, increasing the the we're made share just revenue, continuing getting staying look I fact delivering. good market also to by in is our to important in well. I that know is not than that we build we're, get which general and winning from the staying work reputation is engagements we're the terms the on the to top a revenue team and we the seeing outstanding that that think and So data which we of clients but we're to seeing yours from more hopefully do at able brand to in grow with there we

Tobey Sommer

of to respect whether larger or the market just [indiscernible]? players sources can clarify not share, you With are or they

Julie Creed

and we then Sorry, that ASC. from from [indiscernible] was releases public information obviously is the One is the Julie. press see the, this

Tobey Sommer

more on a Okay, upticks, year what's going the and strong curious trend were then trends of has entering the quarters what's very those couple because been? just recent this ago

Krishnan Rajagopalan

of generating what role in roles. want really that It of we Well have and need terms is market market you education that become reality to reported the of what than fact the the that really really for come in terms more in were their they appropriately up of does the and thinks to positions into believing and over in unemployment cost. have wants quite terms moving role new market lot et seen you pay pay low our they average anticipated of or of at. is and very people retainers a upticks. this bit our we pay current as versus kind the for that's in us Well, to of more the leave to across the of for to actually And that the upticks an kind been internalizing QX stronger such us is have strong, where what it market actually really a drove and those have the looking we cetera, we we're guidance strongly were

For because the are kind it the the that believing have you then from. great of example those so to really acquiring what revenues they're really of down a that market that's versus beginning and speak limits and cycle where of that in on maybe at the uptick cost course the the come same that's CFO and uptick still year

Mark Harris

is, between do pretty Tobey consistent to the so you of X. annual QX even were know total one you little in could know X The uptick and is The unexpected make though is actual comment QX our XX% though amount I even both want terms and and ‘XX XX% bit Qs ‘XX chunky, they be a year-over-year between and revenue.

twelve-month see you So look at trailing much it again as we it quarter-to-quarter. a don't you from basis when as see it

Tobey Sommer

whether now? this caught at are or had Okay, as the good getting elevated data probably baby Do level of C an see effects in any whether early, you sense we we've suite have the not retirement boomers mainly seen only levels. demand right of experiencing have trouble the is talk of of driver and it's and about in this space a to other you time for a executive a of kind turnover for potential long

Krishnan Rajagopalan

the we mean retirements than certainly somewhat we while I past, year look searches of in saw greater a Yes, roles the been having things CEO CEO might number a due going well. to in cetera, what as for et this tenure call level on last and

the - activity continue happening going So we to see and to to we're due that et those in continue marketplaces forecast industry. definitely that ages some seeing retirement are to that we're things and then cetera in like that

see level definitely that we So it. at

Tobey Sommer

to the to on what pivots period players make more marketplace into reach means Okay, simultaneously revenue their higher companies is time larger trying out queue, back I'll strategic the become comment kind we've me what for to that last ability kind in on clients. effect diversify others their of for question is multiple the for something from Could you that of an that company's others short pivoting to to from here to employees a the from helping is that that, and separately get streams then the and heard change? connectivity relatively of been trying potential and or incremental acquisition whether the

Krishnan Rajagopalan

we've that Yes, assets from so that that the Kevin we in that allow IP that space the pivoting across we we're on got, conversation in how definitely - to are in, connects for to service we're pivoting, supports that offerings are. us the built, that the one our companies another to client. to we've It's pivot uniquely hard comment other somewhat think me IP

So attract that unique. well. for as We believe we uniqueness this kind onto others opportunity of of the as think an platform that creates being to us that of

So positive we are all those things. think that

at Fortune approximately but BTG opportunity that to well. we acquire, BTG opportunities represented well. partner right looking the partnership with types to XXX for working continue focus if the partnership there, our there, search to like is resonates somebody you advisory that, our we opportunities the so at With over numbers focusing see we're working XX% as saw well. which well of example We there productivity, with well, brand and look we service as companies we're and types top as the and that our a see. work average so on an with et cetera, And opportunities best right that synergies they're offerings of the that's that's look with I are at where just as as acquisitions works you our think of of not what opportunities where where

Tobey Sommer

much. you Thank very

Operator

Tim [Operator McHugh William Instructions] next Our you. Blair comes with Thank and Company. from question

Tim McHugh

and the per I us essentially highs your about the And look in but topic, the follow so of I you leverage driver side would Thanks. sense and lot Europe high. in guys up time consultants prior a about want of the consulting essentially search coin if be and margin guess on then and opportunity revenue based or probably you're the Asian makes above going to in the is be not benefits. business kind it's I just segment so telling salary data on the margin other at comments to of G&A the the well leverage report, all

ever much hear I other I your about that argument productivity already and higher on using is productivity talk the than guess hand technology you but the guess I seen. So we've

So I that years about over we think for the next as when about the - about salary and factor leverage you you how of couple as think that source and margins? can benefits talk here guess, you

Krishnan Rajagopalan

Sure.

talked that of help also me, have we about example, Europe in excuse eliminate in of streamline couple able et all us to we'll to that, regions addition will think a out. duplication cetera, an as We of offices we able that we different and some those to in be be still think offices, we'll

won't one we other the still hoping we're you down accruals year have we it know achieved scale again salaries some year the X% at what So more that when this that looked this the last that we to we were off year. is than and is next be thing margin - benefits. around really X% achieved year versus required comes The

component to around greatly the similar salaries by if took of we'd alone similar So to again we believe my being benefits without team's we're a margin have ourselves productivity about just The comment from driving. mid be competitors on reduced million and reduced. what up sitting that trailer terms we at scale of would focus $XXX would that be generating and we're be really in the

But is we that productivity margins that Asia us the in the versus As of an we're the to with Pacific continue you and those side maintain get current know we with it. to attain. we're European region enterprise scale really believe $X.X the having region million as would trying regional

Tim McHugh

comment I mainly – not reductions expecting you're still in absolute as Okay, there's guess a are revenue, you G&A so there makes G&A? of is percentage the guess dollar trying leverage to on I the

Krishnan Rajagopalan

was think below I XX% we're about, I and comment think my more sitting would maintain how we really that. so about can

So we we'd G&A again, maintain believe, million that XX% $XXX to if were XX% we fictitiously at area. increase can revenue by to still that

at in significant to was line expanding by you basis XXX kind really G&A grow of lowest down operating So to income in holding type really so the in we've to but That as shareholders is it additional maintain a points. of of had the would saw absolute XXXX really terms dollars margin kind comes contributor our it, amongst bottom us being the which speak.

Tim McHugh

our on across the can nature to you I last going And thanks. of that works? deploy I individual business? search the maybe are BTG, you guess Okay guess cross-selling partnership how you the and that, plan talk be consultants question how that to directly the

Krishnan Rajagopalan

teams, our or and Yes a our Americas we're referrals, our a and cuts got identify clients, to able with partnership of across and working there's have we're to being it accounts talking yes, their back and that's Great, that exactly got are approach opportunities. this in an targeted is focused clients, cross highly you. that referrals. as to how our works. starting nice well. where first yes. regions we've the well way teams We've them Sure large thank to there in functional going partnership with opportunities a of pipeline them where a it and There's drive got each between program forth We've cross a and as

Tim McHugh

Are these or trying to the search sell consultants it? selling or both are consulting they

Krishnan Rajagopalan

consultants they are, predominantly search are pretty but both intended they're right Yes, now, both. for it's

Tim McHugh

you. great. Thank Okay

Operator

Thank you.

question from with Kevin Research. next Barrington Our Steinke comes

Kevin Steinke

Just here. a of follow ups couple

throughout that contributed we is financial growth read very of you attribute every as financial the the with the anything which rest trend noted particular throughout You that exception to to would so was fourth practice of or into region to services down there more slightly, any XXXX? industry the services that - quarter in move

Krishnan Rajagopalan

think into it built quarter really well. reasonably more Fourth periods Krishnan. some there's was interesting don't read much Yes, I into Kevin, had vacation that. It it’s flat. to as

So we don't read too into much that.

Kevin Steinke

low think moving then kind And this lastly forward. sustainable rate, ranges XX%, XXs of tax is you Okay. do

Mark Harris

Absolutely.

and exactly which everything low in governments XX%. the is where states on is a given in. this is basis we in as we're to which the view be obviously in the expect Our operate But constant we to to operate susceptible assuming it where we

Kevin Steinke

thank Okay, you.

Julie Creed

Kevin. Thanks

Operator

like And speakers questions remarks. for further time. to Thank would I our the this no to we at turn you. closing conference back now have

Krishnan Rajagopalan

most thank XXXX our results. on and to for transforming start is us focused human journey. promises all be the We're much. another and you very driving you leadership exciting colleagues. clients year this business, to our a off Heidrick my our and very addressing thank capital But issues to Okay, XXXX critical good on shareholders. and was a chapter perfect

have thank great a So you much everybody week. very and

Operator

and this Ladies today's presentation. gentlemen concludes

disconnect. may You now

Heidrick & Struggles International (HSII) 25 Feb 192018 Q4 Earnings call transcript