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    Korn Ferry Announces Third Quarter Fiscal 2024 Results of Operations

    Korn Ferry (NYSE: KFY), a global organizational consulting firm, today announced third quarter fee revenue of $668.7 million. In addition, third quarter diluted earnings per share was $1.13 and adjusted diluted earnings per share was $1.07.

    “I am pleased with our third quarter results, as we generated $669 million in fee revenue, down 2% year-over-year, with our non-search offerings providing a substantial buffer against the more cyclically sensitive recruiting offerings. Earnings and profitability increased year-over-year and sequentially as we delivered $102 million of Adjusted EBITDA, at a 15.2% margin,” said Gary D. Burnison, CEO, Korn Ferry.

    “Fee revenue from Consulting and Digital (up 3% and 6% over the prior year, respectively), when combined with our Interim fee revenue, now generate 50% of our top line. Our Consulting bill rate increased 12% and our Digital subscription and license fee revenue increased 11%,” Burnison added. “The strategy is clearly working – I am enormously proud of our organization and the results demonstrate the resiliency and potential for Korn Ferry.”

     

    Selected Financial Results

    (dollars in millions, except per share amounts) (a)

     

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Fee revenue

    $

    668.7

     

     

    $

    680.8

     

     

    $

    2,071.9

     

     

    $

    2,104.5

     

    Total revenue

    $

    676.9

     

     

    $

    686.8

     

     

    $

    2,095.6

     

     

    $

    2,125.7

     

    Operating income

    $

    49.9

     

     

    $

    12.5

     

     

    $

    129.5

     

     

    $

    243.8

     

    Operating margin

     

    7.5

    %

     

     

    1.8

    %

     

     

    6.2

    %

     

     

    11.6

    %

    Net income attributable to Korn Ferry

    $

    59.1

     

     

    $

    11.2

     

     

    $

    104.0

     

     

    $

    162.0

     

    Basic earnings per share

    $

    1.14

     

     

    $

    0.21

     

     

    $

    2.00

     

     

    $

    3.07

     

    Diluted earnings per share

    $

    1.13

     

     

    $

    0.21

     

     

    $

    1.99

     

     

    $

    3.05

     

    Adjusted Results (b):

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Adjusted EBITDA

    $

    101.7

     

     

    $

    96.1

     

     

    $

    295.9

     

     

    $

    359.4

     

    Adjusted EBITDA margin

     

    15.2

    %

     

     

    14.1

    %

     

     

    14.3

    %

     

     

    17.1

    %

    Adjusted net income attributable to Korn Ferry (c)

    $

    55.8

     

     

    $

    53.0

     

     

    $

    158.3

     

     

    $

    209.1

     

    Adjusted basic earnings per share (c)

    $

    1.07

     

     

    $

    1.01

     

     

    $

    3.04

     

     

    $

    3.96

     

    Adjusted diluted earnings per share (c)

    $

    1.07

     

     

    $

    1.01

     

     

    $

    3.03

     

     

    $

    3.93

     

    ______________________

    (a)

     

    Numbers may not total due to rounding.

    (b)

     

    Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization, further adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right of use assets and restructuring charges, net when applicable. Adjusted results on a consolidated basis are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations):

     

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Impairment of fixed assets

    $

     

    $

    4.4

     

    $

    1.6

     

    $

    4.4

    Impairment of right of use assets

    $

     

    $

    5.5

     

    $

    1.6

     

    $

    5.5

    Integration/acquisition costs

    $

    3.9

     

    $

    2.5

     

    $

    13.1

     

    $

    9.5

    Restructuring charges, net

    $

    4.6

     

    $

    41.2

     

    $

    68.6

     

    $

    41.2

    (c)

     

    Due to actions taken in connection with the worldwide minimum tax, the Company recorded a $9.7 million non-recurring tax benefit in the quarter ended January 31, 2024 that resulted in the release of a valuation allowance, which is included in the Company's US GAAP results but excluded from the Adjusted results.

    The Company reported fee revenue in Q3 FY'24 of $668.7 million, a year-over-year decrease of 2% at both actual and constant currency. Fee revenue decreased primarily due to decreases in our permanent placement talent acquisition offerings. This decrease was due to a decline in demand driven by uncertain and challenging global economic environment. This was partially offset by the increases in Consulting and Digital fee revenue, as well as in the Interim portion of Professional Search & Interim, resulting from the acquisition of Salo ('the Acquisition") which was effective February 1, 2023.

    Operating margin was 7.5% in Q3 FY'24, compared to 1.8% in the year-ago quarter, an increase of 570bps. Adjusted EBITDA margin was 15.2% in Q3 FY'24, compared to 14.1% in the year-ago quarter, an increase of 110bps. Net income attributable to Korn Ferry was $59.1 million in Q3 FY'24, compared to $11.2 million in Q3 FY'23 and Adjusted EBITDA was $101.7 million in Q3 FY'24 compared to $96.1 million in Q3 FY'23.

    Operating income and margin increased compared to the year-ago quarter primarily due to 1) lower restructuring charges, net recorded in Q3 FY'24 compared to the year-ago quarter, 2) a decrease in compensation and benefits expense driven by the previous quarter's cost reduction actions, and 3) a decrease in charges for impairment of fixed and right of use assets in the year-ago quarter. This increase was partially offset by the decrease in fee revenue discussed above, and higher cost of services expense associated with the acquired Interim businesses. Net income attributable to Korn Ferry increased due to the same factors discussed above.

    Adjusted EBITDA and margin increased due to the previous quarter's cost reduction actions, partially offset by the decrease in fee revenue discussed above and an increase in cost of services expense associated with the acquired businesses.

     

    Results by Line of Business

    Selected Consulting Data

    (dollars in millions) (a)

     

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Fee revenue

    $

    166.9

     

     

    $

    162.2

     

     

    $

    512.8

     

     

    $

    501.7

     

    Total revenue

    $

    169.9

     

     

    $

    164.4

     

     

    $

    521.7

     

     

    $

    509.0

     

     

     

     

     

     

     

     

     

    Ending number of consultants and execution staff (b)

     

    1,687

     

     

     

    1,877

     

     

     

    1,687

     

     

     

    1,877

     

    Hours worked in thousands (c)

     

    381

     

     

     

    414

     

     

     

    1,239

     

     

     

    1,340

     

    Average bill rate (d)

    $

    438

     

     

    $

    392

     

     

    $

    414

     

     

    $

    374

     

     

     

     

     

     

     

     

     

    Adjusted Results (e):

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Adjusted EBITDA

    $

    27.8

     

     

    $

    23.3

     

     

    $

    81.9

     

     

    $

    83.9

     

    Adjusted EBITDA margin

     

    16.7

    %

     

     

    14.4

    %

     

     

    16.0

    %

     

     

    16.7

    %

    ______________________

    (a)

     

    Numbers may not total due to rounding.

    (b)

     

    Represents number of employees originating, delivering and executing consulting services.

    (c)

     

    The number of hours worked by consultant and execution staff during the period.

    (d)

     

    The amount of fee revenue divided by the number of hours worked by consultants and execution staff.

    (e)

     

    Adjusted results exclude the following:

     

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Impairment of fixed assets

    $

     

    $

    2.8

     

    $

     

    $

    2.8

    Impairment of right of use assets

    $

     

    $

    3.1

     

    $

    0.6

     

    $

    3.1

    Restructuring charges, net

    $

    1.1

     

    $

    10.8

     

    $

    18.9

     

    $

    10.8

    Fee revenue was $166.9 million in Q3 FY'24 compared to $162.2 million in Q3 FY'23, an increase of $4.7 million or 3% at both actual and constant currency. The increase in Consulting fee revenue was primarily driven by growth in our organizational strategy offering.

    Adjusted EBITDA was $27.8 million in Q3 FY'24 compared to Adjusted EBITDA of $23.3 million, in the year-ago quarter. Adjusted EBITDA margin in the quarter increased year-over-year by 230bps from 14.4% last year to 16.7% this year. This increase in Adjusted EBITDA and Adjusted EBITDA margin resulted primarily from the increase in fee revenue discussed above, combined with the previous quarter's cost reduction actions, partially offset by an increase in cost of services expense.

     

    Selected Digital Data

    (dollars in millions) (a)

     

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Fee revenue

    $

    90.3

     

     

    $

    85.1

     

     

    $

    275.4

     

     

    $

    263.2

     

    Total revenue

    $

    90.4

     

     

    $

    85.1

     

     

    $

    275.6

     

     

    $

    263.5

     

     

     

     

     

     

     

     

     

    Ending number of consultants

     

    275

     

     

     

    365

     

     

     

    275

     

     

     

    365

     

    Subscription & License fee revenue

    $

    32.8

     

     

    $

    29.6

     

     

    $

    97.7

     

     

    $

    88.1

     

     

     

     

     

     

     

     

     

    Adjusted Results (b):

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Adjusted EBITDA

    $

    27.4

     

     

    $

    22.2

     

     

    $

    80.7

     

     

    $

    73.9

     

    Adjusted EBITDA margin

     

    30.3

    %

     

     

    26.0

    %

     

     

    29.3

    %

     

     

    28.1

    %

    ______________________

    (a)

     

    Numbers may not total due to rounding.

    (b)

     

    Adjusted results exclude the following:

     

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Impairment of fixed assets

    $

     

    $

    1.5

     

    $

    1.5

     

    $

    1.5

    Impairment of right of use assets

    $

     

    $

    1.7

     

    $

     

    $

    1.7

    Restructuring charges, net

    $

    0.6

     

    $

    2.9

     

    $

    9.5

     

    $

    2.9

    Fee revenue was $90.3 million in Q3 FY'24 compared to $85.1 million in Q3 FY'23, an increase of $5.2 million or 6% at both actual and constant currency. The increase was primarily driven by increases in leadership and professional development and assessment & succession solutions.

    Adjusted EBITDA was $27.4 million in Q3 FY'24 compared to $22.2 million in the year-ago quarter. Adjusted EBITDA margin in the quarter increased year-over-year by 430bps from 26.0% last year to 30.3% this year. The increase in Adjusted EBITDA and margin was mainly driven by the increase in fee revenue discussed above.

     

    Selected Executive Search Data(a)

    (dollars in millions) (b)

     

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Fee revenue

    $

    199.3

     

     

    $

    212.0

     

     

    $

    607.5

     

     

    $

    663.2

     

    Total revenue

    $

    201.2

     

     

    $

    213.8

     

     

    $

    613.5

     

     

    $

    668.7

     

     

     

     

     

     

     

     

     

    Ending number of consultants

     

    562

     

     

     

    616

     

     

     

    562

     

     

     

    616

     

    Average number of consultants

     

    574

     

     

     

    619

     

     

     

    582

     

     

     

    601

     

    Engagements billed

     

    3,469

     

     

     

    4,080

     

     

     

    7,269

     

     

     

    8,272

     

    New engagements (c)

     

    1,367

     

     

     

    1,516

     

     

     

    4,349

     

     

     

    4,835

     

     

     

     

     

     

     

     

     

    Adjusted Results (d):

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Adjusted EBITDA

    $

    43.4

     

     

    $

    46.4

     

     

    $

    125.6

     

     

    $

    163.2

     

    Adjusted EBITDA margin

     

    21.8

    %

     

     

    21.9

    %

     

     

    20.7

    %

     

     

    24.6

    %

    ______________________

    (a)

     

    Executive Search is the sum of the individual Executive Search Reporting Segments described in our annual and quarterly reporting on Forms 10-K and 10-Q and is presented on a consolidated basis as it is consistent with the Company’s discussion of its Lines of Business, and financial metrics used by the Company’s investor base.

    (b)

     

    Numbers may not total due to rounding.

    (c)

     

    Represents new engagements opened in the respective period.

    (d)

     

    Executive Search Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures that adjust for the following:

     

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Impairment of fixed assets

    $

     

    $

     

    $

    0.1

     

    $

    Impairment of right of use assets

    $

     

    $

     

    $

    0.9

     

    $

    Restructuring charges, net

    $

    2.3

     

    $

    19.4

     

    $

    28.2

     

    $

    19.4

    Fee revenue was $199.3 million and $212.0 million in Q3 FY'24 and Q3 FY'23, respectively, a year-over-year decrease of $12.7 million or 6% (down 7% on a constant currency basis). The decrease in fee revenue was primarily driven by a decline in executive search activity, resulting from the uncertain and challenging global economic environment.

    Adjusted EBITDA was $43.4 million in Q3 FY'24 compared to Adjusted EBITDA of $46.4 million in the year-ago quarter. The decrease in Adjusted EBITDA was primarily due to the decrease in fee revenue discussed above, partially offset by the previous quarter's cost reduction actions. Despite the year-over-year decrease in fee revenue and Adjusted EBITDA, Adjusted EBITDA margin remained essentially flat year-over-year due to the previous quarter's cost reduction actions.

     

    Selected Professional Search & Interim Data

    (dollars in millions) (a)

     

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Fee revenue

    $

    130.9

     

     

    $

    118.0

     

     

    $

    411.5

     

     

    $

    351.7

     

    Total revenue

    $

    131.8

     

     

    $

    118.6

     

     

    $

    414.3

     

     

    $

    354.4

     

     

     

     

     

     

     

     

     

    Permanent Placement:

     

     

     

     

     

     

     

    Fee revenue

    $

    52.4

     

     

    $

    65.0

     

     

    $

    167.2

     

     

    $

    218.5

     

    Engagements billed

     

    1,901

     

     

     

    2,428

     

     

     

    4,511

     

     

     

    6,104

     

    New engagements (b)

     

    995

     

     

     

    1,460

     

     

     

    3,414

     

     

     

    5,122

     

    Ending number of consultants

     

    344

     

     

     

    448

     

     

     

    344

     

     

     

    448

     

    Interim:

     

     

     

     

     

     

     

    Fee revenue

    $

    78.5

     

     

    $

    53.0

     

     

    $

    244.3

     

     

    $

    133.1

     

    Average bill rate (c)

    $

    129

     

     

    $

    107

     

     

    $

    126

     

     

    $

    110

     

    Average weekly billable consultants (d)

     

    1,283

     

     

     

    1,061

     

     

     

    1,352

     

     

     

    878

     

     

     

     

     

     

     

     

     

    Adjusted Results (e):

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Adjusted EBITDA

    $

    23.8

     

     

    $

    22.0

     

     

    $

    73.7

     

     

    $

    83.6

     

    Adjusted EBITDA margin

     

    18.2

    %

     

     

    18.6

    %

     

     

    17.9

    %

     

     

    23.8

    %

    _____________________

    (a)

     

    Numbers may not total due to rounding.

    (b)

     

    Represents new engagements opened in the respective period.

    (c)

     

    Fee revenue from interim divided by the number of hours worked by consultants.

    (d)

     

    The number of billable consultants based on a weekly average in the respective period.

    (e)

     

    Adjusted results exclude the following:

     

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Impairment of fixed assets

    $

     

    $

    0.1

     

    $

     

    $

    0.1

    Impairment of right of use assets

    $

     

    $

    0.6

     

    $

     

    $

    0.6

    Integration/acquisition costs

    $

    3.8

     

    $

    1.7

     

    $

    12.7

     

    $

    6.6

    Restructuring charges, net

    $

     

    $

    4.8

     

    $

    3.8

     

    $

    4.8

    Fee revenue was $130.9 million in Q3 FY'24, an increase of $12.9 million or 11% at both actual and constant currency. The increase in fee revenue was mainly driven by additional fee revenue from the Acquisition, partially offset by a decrease in permanent placement fee revenue.

    Adjusted EBITDA was $23.8 million in Q3 FY'24 compared to $22.0 million in the year-ago quarter. The increase in Adjusted EBITDA was primarily due to the increase in fee revenue discussed above and the previous quarter's cost reduction actions, partially offset by higher cost of services expense due to the Acquisition. Adjusted EBITDA margin declined slightly (40bps) year-over-year due to the factors noted above as well as a change in the mix of fee revenue which included more Interim fee revenue, which has lower profitability but is less cyclical as compared to professional search permanent placement which comprised a greater portion of fee revenue in the year-ago quarter.

     

    Selected Recruitment Process Outsourcing ("RPO") Data

    (dollars in millions) (a)

     

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Fee revenue

    $

    81.2

     

     

    $

    103.5

     

     

    $

    264.7

     

     

    $

    324.8

     

    Total revenue

    $

    83.6

     

     

    $

    104.9

     

     

    $

    270.5

     

     

    $

    330.1

     

     

     

     

     

     

     

     

     

    Remaining revenue under contract (b)

    $

    695.8

     

     

    $

    836.9

     

     

    $

    695.8

     

     

    $

    836.9

     

    RPO new business (c)

    $

    122.1

     

     

    $

    44.0

     

     

    $

    311.2

     

     

    $

    482.7

     

     

     

     

     

     

     

     

     

    Adjusted Results (d):

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Adjusted EBITDA

    $

    9.3

     

     

    $

    9.8

     

     

    $

    28.6

     

     

    $

    43.6

     

    Adjusted EBITDA margin

     

    11.4

    %

     

     

    9.5

    %

     

     

    10.8

    %

     

     

    13.4

    %

    ______________________

    (a)

     

    Numbers may not total due to rounding.

    (b)

     

    Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.

    (c)

     

    Estimated total value of a contract at the point of execution of the contract.

    (d)

     

    Adjusted results exclude the following:

     

    Third Quarter

     

    Year to Date

     

    FY’24

     

    FY’23

     

    FY’24

     

    FY’23

    Impairment of right of use assets

    $

     

    $

    0.1

     

    $

    0.1

     

    $

    0.1

    Restructuring charges, net

    $

    0.7

     

    $

    3.1

     

    $

    7.9

     

    $

    3.1

    Fee revenue was $81.2 million in Q3 FY'24, a decrease of $22.3 million or 22% at both actual and constant currency basis. RPO fee revenue decreased due to reduced demand for the number of placements being requested by existing clients as a result of the challenging global economic environment as well as a continuation of clients "labor hoarding".

    Adjusted EBITDA was $9.3 million in Q3 FY'24 compared to $9.8 million in the year-ago quarter. The decrease resulted from the decline in fee revenue which was partially offset by cost reductions taken in the previous quarter. Despite the year-over-year decrease in fee revenue and Adjusted EBITDA, Adjusted EBITDA margin increased 190bps year-over-year from 9.5% to 11.4% due to the previous quarter's cost reduction actions.

    Outlook

    Assuming worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:

    • Q4 FY’24 fee revenue is expected to be in the range of $675 million and $695 million; and
    • Q4 FY’24 diluted earnings per share is expected to range between $1.06 to $1.14.

    On a consolidated adjusted basis:

    • Q4 FY’24 adjusted diluted earnings per share is expected to be in the range from $1.09 to $1.17.

     

    Q4 FY’24

    Earnings Per Share Outlook

     

    Low

     

    High

     

     

     

     

    Consolidated diluted earnings per share

    $

    1.06

     

     

    $

    1.14

     

    Integration/acquisition and restructuring charges

     

    0.05

     

     

     

    0.05

     

    Tax Rate Impact

     

    (0.02

    )

     

     

    (0.02

    )

    Consolidated adjusted diluted earnings per share(1)

    $

    1.09

     

     

    $

    1.17

     

    ______________________

    (1)

     

    Consolidated adjusted diluted earnings per share is a non-GAAP financial measure that excludes the items listed in the table.

    Earnings Conference Call Webcast

    The earnings conference call will be held today at 12:00 PM (EST) and hosted by CEO Gary Burnison, CFO Robert Rozek, SVP Business Development & Analytics Gregg Kvochak and VP Investor Relations Tiffany Louder. The conference call will be webcast and available online at ir.kornferry.com. We will also post to the investor relations section of our website earnings slides, which will accompany our webcast, and other important information, and encourage you to review the information that we make available on our website.

    About Korn Ferry

    Korn Ferry is a global organizational consulting firm. We help clients synchronize strategy and talent to drive superior performance. We work with organizations to design their structures, roles, and responsibilities. We help them hire the right people to bring their strategy to life. And we advise them on how to reward, develop, and motivate their people. Visit kornferry.com for more information.

    Forward-Looking Statements

    Statements in this press release and our conference call that relate to our outlook, projections, goals, strategies, future plans and expectations, including statements relating to expected demand for and relevance of our products and services, our workforce reduction plan, and other statements of future events or conditions are forward-looking statements that involve a number of risks and uncertainties. Words such as “believes”, “expects”, “anticipates”, “goals”, “estimates”, “guidance”, “may”, “should”, “could”, “will” or “likely”, and variations of such words and similar expressions are intended to identify such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Such statements are based on current expectations; actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties that are beyond the control of Korn Ferry. The potential risks and uncertainties include those relating to global and local political and or economic developments in or affecting countries where we have operations, such as inflation, interest rates, global slowdowns, or recessions, competition, geopolitical tensions, shifts in global trade patterns, changes in demand for our services as a result of automation, dependence on and costs of attracting and retaining qualified and experienced consultants, impact of inflationary pressures on our profitability, our ability to maintain relationships with customers and suppliers and retaining key employees, maintaining our brand name and professional reputation, potential legal liability and regulatory developments, portability of client relationships, consolidation of or within the industries we serve, changes and developments in government laws and regulations, evolving investor and customer expectations with regard to environmental, social and governance matters, currency fluctuations in our international operations, risks related to growth, alignment of our cost structure, including as a result of recent workforce, real estate, and other restructuring initiatives, restrictions imposed by off-limits agreements, reliance on information processing systems, cyber security vulnerabilities or events, changes to data security, data privacy, and data protection laws, dependence on third parties for the execution of critical functions, limited protection of our intellectual property ("IP"), our ability to enhance, develop and respond to new technology, including artificial intelligence, our ability to successfully recover from a disaster or other business continuity problems, employment liability risk, an impairment in the carrying value of goodwill and other intangible assets, treaties, or regulations on our business and our Company, deferred tax assets that we may not be able to use, our ability to develop new products and services, changes in our accounting estimates and assumptions, the utilization and billing rates of our consultants, seasonality, the expansion of social media platforms, the ability to effect acquisitions and integrate acquired businesses, including Salo, resulting organizational changes, our indebtedness, those relating to the ultimate magnitude and duration of any pandemic or outbreaks. For a detailed description of risks and uncertainties that could cause differences from our expectations, please refer to Korn Ferry’s periodic filings with the Securities and Exchange Commission. Korn Ferry disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    Use of Non-GAAP Financial Measures

    This press release contains financial information calculated other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). In particular, it includes:

    • Adjusted net income attributable to Korn Ferry, adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right of use assets, and restructuring charges, net of income tax effect and to exclude a $9.7 million non-recurring tax benefit from actions taken in connection with the worldwide minimum tax that resulted in the release of a valuation allowance;
    • Adjusted basic and diluted earnings per share, adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right of use assets, and restructuring charges, net of income tax effect, and to exclude a $9.7 million non-recurring tax benefit from actions taken in connection with the worldwide minimum tax that resulted in the release of a valuation allowance;
    • Constant currency (calculated using a quarterly average) percentages that represent the percentage change that would have resulted had exchange rates in the prior period been the same as those in effect in the current period;
    • Consolidated and Executive Search Adjusted EBITDA, which is earnings before interest, taxes, depreciation and amortization, further adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right of use assets and restructuring charges, net when applicable, and Consolidated and Executive Search Adjusted EBITDA margin.

    This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

    Management believes the presentation of non-GAAP financial measures in this press release provides meaningful supplemental information regarding Korn Ferry’s performance by excluding certain charges that may not be indicative of Korn Ferry’s ongoing operating results. These non-GAAP financial measures are performance measures and are not indicative of the liquidity of Korn Ferry. These charges, which are described in the footnotes in the attached reconciliations, represent 1) costs we incurred to acquire and integrate a portion of our Professional Search & Interim business, 2) impairment of fixed assets primarily due to software impairment charge in our Digital segment in FY'24 and impairment on leasehold improvements due to terminating and deciding to sublease some of our office leases in FY'23, 3) impairment of right of use assets due to the decision to terminate and sublease some of our offices, 4) Restructuring charges, net to align workforce to the challenging macroeconomic business environment arising from persistent inflationary pressures, rising interest rates and global economic and geopolitical uncertainty and 5) to exclude a $9.7 million non-recurring tax benefit from actions taken in connection with the worldwide minimum tax that resulted in the release of a valuation allowance. The use of non-GAAP financial measures facilitates comparisons to Korn Ferry’s historical performance. Korn Ferry includes non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its evaluation of Korn Ferry’s ongoing operations and financial and operational decision-making. Adjusted net income attributable to Korn Ferry, adjusted basic and diluted earnings per share and Consolidated and Executive Search Adjusted EBITDA, exclude certain charges that management does not consider on-going in nature and allows management and investors to make more meaningful period-to-period comparisons of the Company’s operating results. Management further believes that Consolidated and Executive Search Adjusted EBITDA is useful to investors because it is frequently used by investors and other interested parties to measure operating performance among companies with different capital structures, effective tax rates and tax attributes and capitalized asset values, all of which can vary substantially from company to company. In the case of constant currency percentages, management believes the presentation of such information provides useful supplemental information regarding Korn Ferry's performance as excluding the impact of exchange rate changes on Korn Ferry's financial performance allows investors to make more meaningful period-to-period comparisons of the Company’s operating results, to better identify operating trends that may otherwise be masked or distorted by exchange rate changes and to perform related trend analysis, and provides a higher degree of transparency of information used by management in its evaluation of Korn Ferry's ongoing operations and financial and operational decision-making.

     

    KORN FERRY AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME

    (in thousands, except per share amounts)

     

     

    Three Months Ended

    January 31,

     

    Nine Months Ended

    January 31,

     

     

    2024

     

     

     

    2023

     

     

     

    2024

     

     

     

    2023

     

     

    (unaudited)

    Fee revenue

    $

    668,679

     

     

    $

    680,782

     

     

    $

    2,071,871

     

     

    $

    2,104,534

     

    Reimbursed out-of-pocket engagement expenses

     

    8,194

     

     

     

    6,063

     

     

     

    23,711

     

     

     

    21,178

     

    Total revenue

     

    676,873

     

     

     

    686,845

     

     

     

    2,095,582

     

     

     

    2,125,712

     

     

     

     

     

     

     

     

     

    Compensation and benefits

     

    456,216

     

     

     

    479,382

     

     

     

    1,389,956

     

     

     

    1,409,774

     

    General and administrative expenses

     

    62,661

     

     

     

    72,785

     

     

     

    194,315

     

     

     

    202,328

     

    Reimbursed expenses

     

    8,194

     

     

     

    6,063

     

     

     

    23,711

     

     

     

    21,178

     

    Cost of services

     

    75,814

     

     

     

    57,903

     

     

     

    231,516

     

     

     

    157,152

     

    Depreciation and amortization

     

    19,509

     

     

     

    17,037

     

     

     

    58,075

     

     

     

    50,359

     

    Restructuring charges, net

     

    4,612

     

     

     

    41,162

     

     

     

    68,558

     

     

     

    41,162

     

    Total operating expenses

     

    627,006

     

     

     

    674,332

     

     

     

    1,966,131

     

     

     

    1,881,953

     

     

     

     

     

     

     

     

     

    Operating income

     

    49,867

     

     

     

    12,513

     

     

     

    129,451

     

     

     

    243,759

     

    Other income, net

     

    23,817

     

     

     

    13,097

     

     

     

    23,559

     

     

     

    4,824

     

    Interest expense, net

     

    (4,946

    )

     

     

    (5,378

    )

     

     

    (16,282

    )

     

     

    (20,088

    )

    Income before provision for income taxes

     

    68,738

     

     

     

    20,232

     

     

     

    136,728

     

     

     

    228,495

     

    Income tax provision

     

    9,018

     

     

     

    8,463

     

     

     

    29,779

     

     

     

    63,575

     

    Net income

     

    59,720

     

     

     

    11,769

     

     

     

    106,949

     

     

     

    164,920

     

    Net income attributable to noncontrolling interest

     

    (649

    )

     

     

    (522

    )

     

     

    (2,984

    )

     

     

    (2,885

    )

    Net income attributable to Korn Ferry

    $

    59,071

     

     

    $

    11,247

     

     

    $

    103,965

     

     

    $

    162,035

     

     

     

     

     

     

     

     

     

    Earnings per common share attributable to Korn Ferry:

     

     

     

     

     

     

     

    Basic

    $

    1.14

     

     

    $

    0.21

     

     

    $

    2.00

     

     

    $

    3.07

     

    Diluted

    $

    1.13

     

     

    $

    0.21

     

     

    $

    1.99

     

     

    $

    3.05

     

     

     

     

     

     

     

     

     

    Weighted-average common shares outstanding:

     

     

     

     

     

     

     

    Basic

     

    51,126

     

     

     

    51,278

     

     

     

    51,129

     

     

     

    51,639

     

    Diluted

     

    51,343

     

     

     

    51,431

     

     

     

    51,329

     

     

     

    51,999

     

     

     

     

     

     

     

     

     

    Cash dividends declared per share:

    $

    0.33

     

     

    $

    0.15

     

     

    $

    0.69

     

     

    $

    0.45

     

     

    KORN FERRY AND SUBSIDIARIES

    FINANCIAL SUMMARY BY REPORTING SEGMENT

    (dollars in thousands)

    (unaudited)

     

     

    Three Months Ended January 31,

     

    Nine Months Ended January 31,

     

    2024

     

    2023

     

    % Change

     

    2024

     

    2023

     

    % Change

    Fee revenue:

     

     

     

     

     

     

     

     

     

     

     

    Consulting

    $

    166,947

     

    $

    162,155

     

    3.0

    %

     

    $

    512,830

     

    $

    501,731

     

    2.2

    %

    Digital

     

    90,317

     

     

    85,071

     

    6.2

    %

     

     

    275,395

     

     

    263,161

     

    4.6

    %

    Executive Search:

     

     

     

     

     

     

     

     

     

     

     

    North America

     

    121,449

     

     

    132,810

     

    (8.6

    %)

     

     

    381,459

     

     

    426,839

     

    (10.6

    %)

    EMEA

     

    48,999

     

     

    48,960

     

    0.1

    %

     

     

    138,873

     

     

    140,661

     

    (1.3

    %)

    Asia Pacific

     

    21,324

     

     

    22,621

     

    (5.7

    %)

     

     

    65,167

     

     

    72,410

     

    (10.0

    %)

    Latin America

     

    7,541

     

     

    7,654

     

    (1.5

    %)

     

     

    22,041

     

     

    23,283

     

    (5.3

    %)

    Total Executive Search (a)

     

    199,313

     

     

    212,045

     

    (6.0

    %)

     

     

    607,540

     

     

    663,193

     

    (8.4

    %)

    Professional Search & Interim

     

    130,890

     

     

    117,980

     

    10.9

    %

     

     

    411,453

     

     

    351,670

     

    17.0

    %

    RPO

     

    81,212

     

     

    103,531

     

    (21.6

    %)

     

     

    264,653

     

     

    324,779

     

    (18.5

    %)

    Total fee revenue

     

    668,679

     

     

    680,782

     

    (1.8

    %)

     

     

    2,071,871

     

     

    2,104,534

     

    (1.6

    %)

    Reimbursed out-of-pocket engagement expenses

     

    8,194

     

     

    6,063

     

    35.1

    %

     

     

    23,711

     

     

    21,178

     

    12.0

    %

    Total revenue

    $

    676,873

     

    $

    686,845

     

    (1.5

    %)

     

    $

    2,095,582

     

    $

    2,125,712

     

    (1.4

    %)

    (a)

     

    Total Executive Search is the sum of the individual Executive Search Reporting Segments and is presented on a consolidated basis as it is consistent with the Company’s discussion of its Lines of Business, and financial metrics used by the Company’s investor base.

     

    KORN FERRY AND SUBSIDIARIES

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (in thousands, except per share amounts)

     

     

    January 31,
    2024

     

    April 30,
    2023

     

    (unaudited)

     

     

    ASSETS

     

     

     

    Cash and cash equivalents

    $

    736,797

     

     

    $

    844,024

     

    Marketable securities

     

    45,727

     

     

     

    44,837

     

    Receivables due from clients, net of allowance for doubtful accounts of $50,302 and $44,377 at January 31, 2024 and April 30, 2023, respectively

     

    589,717

     

     

     

    569,601

     

    Income taxes and other receivables

     

    63,020

     

     

     

    67,512

     

    Unearned compensation

     

    60,071

     

     

     

    63,476

     

    Prepaid expenses and other assets

     

    49,377

     

     

     

    49,219

     

    Total current assets

     

    1,544,709

     

     

     

    1,638,669

     

     

     

     

     

    Marketable securities, non-current

     

    204,326

     

     

     

    179,040

     

    Property and equipment, net

     

    163,600

     

     

     

    161,876

     

    Operating lease right-of-use assets, net

     

    167,441

     

     

     

    142,690

     

    Cash surrender value of company-owned life insurance policies, net of loans

     

    216,450

     

     

     

    197,998

     

    Deferred income taxes

     

    121,267

     

     

     

    102,057

     

    Goodwill

     

    909,330

     

     

     

    909,491

     

    Intangible assets, net

     

    95,151

     

     

     

    114,426

     

    Unearned compensation, non-current

     

    111,286

     

     

     

    103,607

     

    Investments and other assets

     

    22,765

     

     

     

    24,590

     

    Total assets

    $

    3,556,325

     

     

    $

    3,574,444

     

     

     

     

     

    LIABILITIES AND STOCKHOLDERS' EQUITY

     

     

     

    Accounts payable

    $

    46,368

     

     

    $

    53,386

     

    Income taxes payable

     

    23,599

     

     

     

    19,969

     

    Compensation and benefits payable

     

    423,268

     

     

     

    532,934

     

    Operating lease liability, current

     

    36,895

     

     

     

    45,821

     

    Other accrued liabilities

     

    312,511

     

     

     

    324,150

     

    Total current liabilities

     

    842,641

     

     

     

    976,260

     

     

     

     

     

    Deferred compensation and other retirement plans

     

    427,464

     

     

     

    396,534

     

    Operating lease liability, non-current

     

    151,159

     

     

     

    119,220

     

    Long-term debt

     

    396,755

     

     

     

    396,194

     

    Deferred tax liabilities

     

    5,709

     

     

     

    5,352

     

    Other liabilities

     

    25,186

     

     

     

    27,879

     

    Total liabilities

     

    1,848,914

     

     

     

    1,921,439

     

     

     

     

     

    Stockholders' equity

     

     

     

    Common stock: $0.01 par value, 150,000 shares authorized, 77,511 and 76,693 shares issued and 52,345 and 52,269 shares outstanding at January 31, 2024 and April 30, 2023, respectively

     

    428,413

     

     

     

    429,754

     

    Retained earnings

     

    1,378,140

     

     

     

    1,311,081

     

    Accumulated other comprehensive loss, net

     

    (102,930

    )

     

     

    (92,764

    )

    Total Korn Ferry stockholders' equity

     

    1,703,623

     

     

     

    1,648,071

     

    Noncontrolling interest

     

    3,788

     

     

     

    4,934

     

    Total stockholders' equity

     

    1,707,411

     

     

     

    1,653,005

     

    Total liabilities and stockholders' equity

    $

    3,556,325

     

     

    $

    3,574,444

     

     

    KORN FERRY AND SUBSIDIARIES

    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

    (dollars in thousands)

    (unaudited)

     

     

    Three Months Ended
    January 31,

     

    Nine Months Ended
    January 31,

     

     

    2024

     

     

     

    2023

     

     

     

    2024

     

     

     

    2023

     

     

     

     

     

     

     

     

     

    Net income attributable to Korn Ferry

    $

    59,071

     

     

    $

    11,247

     

     

    $

    103,965

     

     

    $

    162,035

     

    Net income attributable to non-controlling interest

     

    649

     

     

     

    522

     

     

     

    2,984

     

     

     

    2,885

     

    Net income

     

    59,720

     

     

     

    11,769

     

     

     

    106,949

     

     

     

    164,920

     

    Income tax provision

     

    9,018

     

     

     

    8,463

     

     

     

    29,779

     

     

     

    63,575

     

    Income before provision for income taxes

     

    68,738

     

     

     

    20,232

     

     

     

    136,728

     

     

     

    228,495

     

    Other income, net

     

    (23,817

    )

     

     

    (13,097

    )

     

     

    (23,559

    )

     

     

    (4,824

    )

    Interest expense, net

     

    4,946

     

     

     

    5,378

     

     

     

    16,282

     

     

     

    20,088

     

    Operating income

     

    49,867

     

     

     

    12,513

     

     

     

    129,451

     

     

     

    243,759

     

    Depreciation and amortization

     

    19,509

     

     

     

    17,037

     

     

     

    58,075

     

     

     

    50,359

     

    Other income, net

     

    23,817

     

     

     

    13,097

     

     

     

    23,559

     

     

     

    4,824

     

    Integration/acquisition costs (1)

     

    3,899

     

     

     

    2,456

     

     

     

    13,057

     

     

     

    9,472

     

    Impairment of fixed assets (2)

     

     

     

     

    4,375

     

     

     

    1,575

     

     

     

    4,375

     

    Impairment of right of use assets (3)

     

     

     

     

    5,471

     

     

     

    1,629

     

     

     

    5,471

     

    Restructuring charges, net (4)

     

    4,612

     

     

     

    41,162

     

     

     

    68,558

     

     

     

    41,162

     

    Adjusted EBITDA

    $

    101,704

     

     

    $

    96,111

     

     

    $

    295,904

     

     

    $

    359,422

     

     

     

     

     

     

     

     

     

    Operating margin

     

    7.5

    %

     

     

    1.8

    %

     

     

    6.2

    %

     

     

    11.6

    %

    Depreciation and amortization

     

    2.9

    %

     

     

    2.5

    %

     

     

    2.8

    %

     

     

    2.4

    %

    Other income, net

     

    3.5

    %

     

     

    1.9

    %

     

     

    1.2

    %

     

     

    0.2

    %

    Integration/acquisition costs (1)

     

    0.6

    %

     

     

    0.4

    %

     

     

    0.6

    %

     

     

    0.4

    %

    Impairment of fixed assets (2)

     

    %

     

     

    0.7

    %

     

     

    0.1

    %

     

     

    0.2

    %

    Impairment of right of use assets (3)

     

    %

     

     

    0.8

    %

     

     

    0.1

    %

     

     

    0.3

    %

    Restructuring charges, net (4)

     

    0.7

    %

     

     

    6.0

    %

     

     

    3.3

    %

     

     

    2.0

    %

    Adjusted EBITDA margin

     

    15.2

    %

     

     

    14.1

    %

     

     

    14.3

    %

     

     

    17.1

    %

     

     

     

     

     

     

     

     

    Net income attributable to Korn Ferry

    $

    59,071

     

     

    $

    11,247

     

     

    $

    103,965

     

     

    $

    162,035

     

    Integration/acquisition costs (1)

     

    3,899

     

     

     

    2,456

     

     

     

    13,057

     

     

     

    9,472

     

    Impairment of fixed assets (2)

     

     

     

     

    4,375

     

     

     

    1,575

     

     

     

    4,375

     

    Impairment of right of use assets (3)

     

     

     

     

    5,471

     

     

     

    1,629

     

     

     

    5,471

     

    Restructuring charges, net (4)

     

    4,612

     

     

     

    41,162

     

     

     

    68,558

     

     

     

    41,162

     

    Tax effect on the adjusted items (5)

     

    (2,092

    )

     

     

    (11,705

    )

     

     

    (20,763

    )

     

     

    (13,410

    )

    Tax adjustment (6)

     

    (9,714

    )

     

     

     

     

     

    (9,714

    )

     

     

     

    Adjusted net income attributable to Korn Ferry

    $

    55,776

     

     

    $

    53,006

     

     

    $

    158,307

     

     

    $

    209,105

     

    Explanation of Non-GAAP Adjustments

    (1)

     

    Costs associated with previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses to combine the companies.

    (2)

     

    Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment in FY'24 and impairment on leasehold improvements due to terminating and deciding to sublease some of our office leases in FY'23.

    (3)

     

    Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our office leases.

    (4)

     

    Restructuring charges incurred to align our workforce to the challenging macroeconomic business environment arising from persistent inflationary pressures, rising interest rates and global economic geopolitical uncertainty.

    (5)

     

    Tax effect on integration/acquisition costs, impairment of fixed assets and right of use assets, and restructuring charges, net.

    (6)

     

    Due to actions taken in connection with the worldwide minimum tax, the Company recorded a $9.7 million non-recurring tax benefit in the quarter ended January 31, 2024 that resulted in the release of a valuation allowance, which is included in the Company's US GAAP results but excluded from the Adjusted results.

     

    KORN FERRY AND SUBSIDIARIES

    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED

    (unaudited)

     

     

    Three Months Ended
    January 31,

     

    Nine Months Ended
    January 31,

     

     

    2024

     

     

     

    2023

     

     

     

    2024

     

     

     

    2023

     

     

     

     

     

     

     

     

     

    Basic earnings per common share

    $

    1.14

     

     

    $

    0.21

     

     

    $

    2.00

     

     

    $

    3.07

     

    Integration/acquisition costs (1)

     

    0.07

     

     

     

    0.05

     

     

     

    0.25

     

     

     

    0.18

     

    Impairment of fixed assets (2)

     

     

     

     

    0.08

     

     

     

    0.03

     

     

     

    0.08

     

    Impairment of right of use assets (3)

     

     

     

     

    0.10

     

     

     

    0.03

     

     

     

    0.10

     

    Restructuring charges, net (4)

     

    0.09

     

     

     

    0.80

     

     

     

    1.32

     

     

     

    0.79

     

    Tax effect on the adjusted items (5)

     

    (0.04

    )

     

     

    (0.23

    )

     

     

    (0.40

    )

     

     

    (0.26

    )

    Tax adjustment (6)

     

    (0.19

    )

     

     

     

     

     

    (0.19

    )

     

     

     

    Adjusted basic earnings per share

    $

    1.07

     

     

    $

    1.01

     

     

    $

    3.04

     

     

    $

    3.96

     

     

     

     

     

     

     

     

     

    Diluted earnings per common share

    $

    1.13

     

     

    $

    0.21

     

     

    $

    1.99

     

     

    $

    3.05

     

    Integration/acquisition costs (1)

     

    0.07

     

     

     

    0.05

     

     

     

    0.25

     

     

     

    0.18

     

    Impairment of fixed assets (2)

     

     

     

     

    0.08

     

     

     

    0.03

     

     

     

    0.08

     

    Impairment of right of use assets (3)

     

     

     

     

    0.10

     

     

     

    0.03

     

     

     

    0.10

     

    Restructuring charges, net (4)

     

    0.09

     

     

     

    0.80

     

     

     

    1.32

     

     

     

    0.78

     

    Tax effect on the adjusted items (5)

     

    (0.04

    )

     

     

    (0.23

    )

     

     

    (0.40

    )

     

     

    (0.26

    )

    Tax adjustment (6)

     

    (0.18

    )

     

     

     

     

     

    (0.19

    )

     

     

     

    Adjusted diluted earnings per share

    $

    1.07

     

     

    $

    1.01

     

     

    $

    3.03

     

     

    $

    3.93

     

    Explanation of Non-GAAP Adjustments

    (1)

     

    Costs associated with previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses to combine the companies.

    (2)

     

    Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment in FY'24 and impairment on leasehold improvements due to terminating and deciding to sublease some of our office leases in FY'23.

    (3)

     

    Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our office leases.

    (4)

     

    Restructuring charges incurred to align our workforce to the challenging macroeconomic business environment arising from persistent inflationary pressures, rising interest rates and global economic geopolitical uncertainty.

    (5)

     

    Tax effect on integration/acquisition costs, impairment of fixed assets and right of use assets, and restructuring charges, net.

    (6)

     

    Due to actions taken in connection with the worldwide minimum tax, the Company recorded a $9.7 million non-recurring tax benefit in the quarter ended January 31, 2024 that resulted in the release of a valuation allowance, which is included in the Company's US GAAP results but excluded from the Adjusted results.

     

    KORN FERRY AND SUBSIDIARIES

    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED

    (unaudited)

     

     

    Three Months Ended January 31,

     

    2024

     

    2023

     

    Fee revenue

     

    Total revenue

     

    Adjusted EBITDA

     

    Adjusted EBITDA margin

     

    Fee revenue

     

    Total revenue

     

    Adjusted EBITDA

     

    Adjusted EBITDA margin

     

    (dollars in thousands)

    Consulting

    $

    166,947

     

    $

    169,929

     

    $

    27,812

     

     

    16.7

    %

     

    $

    162,155

     

    $

    164,414

     

    $

    23,305

     

     

    14.4

    %

    Digital

     

    90,317

     

     

    90,394

     

     

    27,370

     

     

    30.3

    %

     

     

    85,071

     

     

    85,087

     

     

    22,153

     

     

    26.0

    %

    Executive Search:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    North America

     

    121,449

     

     

    123,059

     

     

    29,382

     

     

    24.2

    %

     

     

    132,810

     

     

    134,255

     

     

    30,446

     

     

    22.9

    %

    EMEA

     

    48,999

     

     

    49,171

     

     

    7,799

     

     

    15.9

    %

     

     

    48,960

     

     

    49,195

     

     

    7,981

     

     

    16.3

    %

    Asia Pacific

     

    21,324

     

     

    21,384

     

     

    4,500

     

     

    21.1

    %

     

     

    22,621

     

     

    22,694

     

     

    5,538

     

     

    24.5

    %

    Latin America

     

    7,541

     

     

    7,543

     

     

    1,750

     

     

    23.2

    %

     

     

    7,654

     

     

    7,658

     

     

    2,462

     

     

    32.2

    %

    Total Executive Search

     

    199,313

     

     

    201,157

     

     

    43,431

     

     

    21.8

    %

     

     

    212,045

     

     

    213,802

     

     

    46,427

     

     

    21.9

    %

    Professional Search & Interim

     

    130,890

     

     

    131,824

     

     

    23,795

     

     

    18.2

    %

     

     

    117,980

     

     

    118,616

     

     

    21,969

     

     

    18.6

    %

    RPO

     

    81,212

     

     

    83,569

     

     

    9,291

     

     

    11.4

    %

     

     

    103,531

     

     

    104,926

     

     

    9,849

     

     

    9.5

    %

    Corporate

     

     

     

     

     

    (29,995

    )

     

     

     

     

     

     

     

     

    (27,592

    )

     

     

    Consolidated

    $

    668,679

     

    $

    676,873

     

    $

    101,704

     

     

    15.2

    %

     

    $

    680,782

     

    $

    686,845

     

    $

    96,111

     

     

    14.1

    %

     

    Nine Months Ended January 31,

     

    2024

     

    2023

     

    Fee revenue

     

    Total revenue

     

    Adjusted EBITDA

     

    Adjusted EBITDA margin

     

    Fee revenue

     

    Total revenue

     

    Adjusted EBITDA

     

    Adjusted EBITDA margin

     

    (dollars in thousands)

    Consulting

    $

    512,830

     

    $

    521,675

     

    $

    81,920

     

     

    16.0

    %

     

    $

    501,731

     

    $

    508,994

     

    $

    83,944

     

     

    16.7

    %

    Digital

     

    275,395

     

     

    275,563

     

     

    80,678

     

     

    29.3

    %

     

     

    263,161

     

     

    263,479

     

     

    73,855

     

     

    28.1

    %

    Executive Search:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    North America

     

    381,459

     

     

    386,405

     

     

    87,574

     

     

    23.0

    %

     

     

    426,839

     

     

    431,286

     

     

    112,164

     

     

    26.3

    %

    EMEA

     

    138,873

     

     

    139,621

     

     

    19,056

     

     

    13.7

    %

     

     

    140,661

     

     

    141,443

     

     

    24,577

     

     

    17.5

    %

    Asia Pacific

     

    65,167

     

     

    65,454

     

     

    14,690

     

     

    22.5

    %

     

     

    72,410

     

     

    72,669

     

     

    18,723

     

     

    25.9

    %

    Latin America

     

    22,041

     

     

    22,050

     

     

    4,296

     

     

    19.5

    %

     

     

    23,283

     

     

    23,289

     

     

    7,686

     

     

    33.0

    %

    Total Executive Search

     

    607,540

     

     

    613,530

     

     

    125,616

     

     

    20.7

    %

     

     

    663,193

     

     

    668,687

     

     

    163,150

     

     

    24.6

    %

    Professional Search & Interim

     

    411,453

     

     

    414,348

     

     

    73,746

     

     

    17.9

    %

     

     

    351,670

     

     

    354,430

     

     

    83,587

     

     

    23.8

    %

    RPO

     

    264,653

     

     

    270,466

     

     

    28,617

     

     

    10.8

    %

     

     

    324,779

     

     

    330,122

     

     

    43,562

     

     

    13.4

    %

    Corporate

     

     

     

     

     

    (94,673

    )

     

     

     

     

     

     

     

     

    (88,676

    )

     

     

    Consolidated

    $

    2,071,871

     

    $

    2,095,582

     

    $

    295,904

     

     

    14.3

    %

     

    $

    2,104,534

     

    $

    2,125,712

     

    $

    359,422

     

     

    17.1

    %

     


    The Korn Ferry Stock at the time of publication of the news with a raise of +0,42 % to 59,25EUR on Lang & Schwarz stock exchange (06. März 2024, 12:49 Uhr).


    Business Wire (engl.)
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    Korn Ferry Announces Third Quarter Fiscal 2024 Results of Operations Korn Ferry (NYSE: KFY), a global organizational consulting firm, today announced third quarter fee revenue of $668.7 million. In addition, third quarter diluted earnings per share was $1.13 and adjusted diluted earnings per share was $1.07. “I am …