Caldwell Partners International Inc., a Toronto-based executive search and recruiting firm, has experienced a dramatic reduction in revenue for their fiscal second quarter. At the same time, CEO John Wallace has observed a stabilization of hiring demand. Although at a lower level than the prior-year period, the company remains optimistic of its hopes to return to profitability in the fiscal year.
Wallace elaborated, “Clients who have been broadly talking about resuming hiring have, in part, pushed those plans further into calendar 2023 pending more certainty on evolving economic conditions.” Restructuring expenses in staffing levels and lease costs, as well as the spin off of IQTalent’s software business and development team, are expected to reduce costs and enable Caldwell Partners to reach their goal of profitability.
Investors responded positively to this news, with shares in the company up 4.76% as of 11:04 a.m. Eastern time. Despite being 46.0% below fiscal second quarter revenue from the prior year, and a market cap of C$32.77 million, there is still cause for optimism and a feeling of security for investors in Caldwell Partners.