Korn Ferry Announces Second Quarter Fiscal 2025 Results of Operations
Korn Ferry (KFY) reported Q2 FY'25 results with fee revenue of $674.4 million, down 4% year-over-year but flat sequentially. Operating income reached $87.5 million with a 13.0% margin, marking the sixth consecutive quarter of improved profitability. Net income was $60.8 million with diluted EPS of $1.14 and adjusted diluted EPS of $1.21.
The company's Adjusted EBITDA was $117.0 million with a 17.4% margin, representing a 340bps increase from the previous year. During the quarter, Korn Ferry repurchased 456,250 shares for $32.6 million and declared a quarterly dividend of $0.37 per share. The company also completed the acquisition of Trilogy, expanding its interim professional offerings in EMEA.
Korn Ferry (KFY) ha riportato i risultati del secondo trimestre dell'anno fiscale '25 con ricavi da quote di $674,4 milioni, in calo del 4% rispetto all'anno precedente ma stabili rispetto al trimestre precedente. L'utile operativo ha raggiunto $87,5 milioni con un margine del 13,0%, segnando il sesto trimestre consecutivo di redditività in miglioramento. L'utile netto è stato di $60,8 milioni con un EPS diluito di $1,14 e un EPS diluito rettificato di $1,21.
L'EBITDA rettificato della società è stato di $117,0 milioni con un margine del 17,4%, rappresentando un incremento di 340 punti base rispetto all'anno precedente. Durante il trimestre, Korn Ferry ha riacquistato 456.250 azioni per $32,6 milioni e ha dichiarato un dividendo trimestrale di $0,37 per azione. La società ha anche completato l'acquisizione di Trilogy, ampliando la sua offerta professionale interinale in EMEA.
Korn Ferry (KFY) reportó resultados del segundo trimestre del año fiscal '25 con ingresos por honorarios de $674,4 millones, una disminución del 4% en comparación con el año anterior, pero estables en comparación con el trimestre anterior. El ingreso operativo alcanzó $87,5 millones con un margen del 13,0%, marcando el sexto trimestre consecutivo de rentabilidad mejorada. El ingreso neto fue de $60,8 millones con un EPS diluido de $1,14 y un EPS diluido ajustado de $1,21.
El EBITDA Ajustado de la compañía fue de $117,0 millones con un margen del 17,4%, representando un aumento de 340 puntos básicos en comparación con el año anterior. Durante el trimestre, Korn Ferry recompró 456.250 acciones por $32,6 millones y declaró un dividendo trimestral de $0,37 por acción. La compañía también completó la adquisición de Trilogy, expandiendo su oferta profesional interina en EMEA.
Korn Ferry (KFY)는 2025 회계 연도 2분기 실적을 발표하며 수수료 수익이 $674.4 백만으로, 전년 대비 4% 감소했지만 전 분기와는 변동이 없었다고 보고했습니다. 운영 수익은 $87.5 백만에 도달하였으며, 13.0%의 마진을 기록하여 여섯 분기 연속으로 수익성 개선을 기록했습니다. 순이익은 $60.8 백만이며, 희석 EPS는 $1.14, 조정된 희석 EPS는 $1.21이었습니다.
회사의 조정된 EBITDA는 $117.0 백만으로 17.4%의 마진을 가지고 있으며, 지난해 대비 340bps 증가한 수치를 나타냅니다. 이번 분기 동안 Korn Ferry는 456,250주를 $32.6 백만에 재매입하고, 주당 $0.37의 분기 배당금을 선언했습니다. 또한, 회사는 Trilogy의 인수를 완료하여 EMEA에서의 임시 전문 서비스 제공을 확장했습니다.
Korn Ferry (KFY) a annoncé les résultats du deuxième trimestre de l'exercice '25 avec des revenus de frais de $674,4 millions, en baisse de 4 % par rapport à l'année précédente mais stables par rapport au trimestre précédent. Le revenu d'exploitation a atteint $87,5 millions avec une marge de 13,0 %, marquant le sixième trimestre consécutif d'amélioration de la rentabilité. Le revenu net était de $60,8 millions avec un EPS dilué de $1,14 et un EPS dilué ajusté de $1,21.
EBITDA ajusté de la société était de $117,0 millions avec une marge de 17,4 %, représentant une augmentation de 340 points de base par rapport à l'année précédente. Au cours du trimestre, Korn Ferry a racheté 456 250 actions pour $32,6 millions et a déclaré un dividende trimestriel de $0,37 par action. L'entreprise a également finalisé l'acquisition de Trilogy, élargissant son offre professionnelle intérimaire dans la région EMEA.
Korn Ferry (KFY) hat die Ergebnisse des zweiten Quartals des Geschäftsjahres 25 veröffentlicht, mit Honorareinnahmen von $674,4 Millionen, was einem Rückgang von 4% im Jahresvergleich entspricht, jedoch im Vergleich zum Vorquartal stabil blieb. Der Betriebsgewinn belief sich auf $87,5 Millionen bei einer Marge von 13,0%, was das sechste aufeinanderfolgende Quartal mit verbesserter Rentabilität markiert. Der Nettogewinn betrug $60,8 Millionen mit einem verwässertem EPS von $1,14 und einem angepassten verwässerten EPS von $1,21.
Das bereinigte EBITDA des Unternehmens belief sich auf $117,0 Millionen mit einer Marge von 17,4%, was einem Anstieg von 340 Basispunkten im Vergleich zum Vorjahr entspricht. Im Laufe des Quartals hat Korn Ferry 456.250 Aktien für $32,6 Millionen zurückgekauft und eine vierteljährliche Dividende von $0,37 pro Aktie erklärt. Das Unternehmen hat auch die Akquisition von Trilogy abgeschlossen und damit seine interimsprofessionelle Angebot in der EMEA-Region erweitert.
- Operating margin increased 980bps year-over-year to 13.0%
- Adjusted EBITDA margin improved 340bps to 17.4%
- Sixth consecutive quarter of improved profitability
- Executive Search revenue increased 1% year-over-year
- Share repurchase program active with $32.6 million in buybacks
- Fee revenue declined 4% year-over-year to $674.4 million
- Professional Search & Interim revenue decreased 13% year-over-year
- Consulting revenue fell 6% compared to previous year
- Digital revenue declined 4% year-over-year
Insights
Q2 FY25 results show mixed performance with notable margin improvements despite revenue headwinds. Fee revenue decreased 4% YoY to
The company's cost management initiatives are clearly paying off, with operating income nearly quadrupling to
The outlook suggests some caution with Q3 FY25 revenue guidance of
The company's performance demonstrates resilience in challenging market conditions. Executive Search segment showed strength with
Strategic initiatives are yielding results, particularly the launch of Korn Ferry Talent Suite, which positions the company well in the high-growth HR tech market. The
The Trilogy acquisition is strategically important, expanding their interim talent capabilities in EMEA and US markets. This move, combined with improving Digital segment trends and steady Consulting performance, suggests a well-balanced growth strategy despite near-term market uncertainties.
Highlights
-
Fee revenue in Q2 FY'25 was
$674.4 million 4% , flat on a sequential quarter basis. -
Completed our sixth consecutive quarter of improved profitability:
-
Operating income was
$87.5 million $117.0 million -
Operating margin increased 980bps year-over-year to
13.0% . Adjusted EBITDA margin was17.4% , a 340bps increase compared to the year-ago quarter.
-
Operating income was
-
Net income attributable to Korn Ferry was
$60.8 million $1.14 $1.21 -
The Company repurchased 456,250 shares of stock during the quarter for
$32.6 million -
Declared a quarterly dividend of
$0.37 -
On November 1, 2024, Korn Ferry completed the acquisition of Trilogy, a leading provider of technology/digital interim talent across
Europe and inthe United States , which will be included in the Professional Search & Interim segment starting in Q3 FY'25.
“I am pleased with our second quarter results, as we generated
“Overall, our execution has been solid,” added Burnison. “The durability and potential of our business were evident once again during the quarter with stability in our Talent Acquisition fee revenues and new business, Digital new business trends improving and steady performance in Consulting. We also continue to invest for the future, as evidenced by the launch of the Korn Ferry Talent Suite, which brings together our assessment, development, talent management, and total rewards solutions, allowing our clients to license our decades of expertise, proprietary insights and data-driven intelligence via a subscription-based model. Additionally, our recent Trilogy International investment expands our interim professional offerings to EMEA, which is a substantial addressable market opportunity.”
Selected Financial Results |
|||||||||||||||
(dollars in millions, except per share amounts) (a) |
|||||||||||||||
|
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Fee revenue |
$ |
674.4 |
|
|
$ |
704.0 |
|
|
$ |
1,349.3 |
|
|
$ |
1,403.2 |
|
Total revenue |
$ |
682.0 |
|
|
$ |
712.4 |
|
|
$ |
1,364.7 |
|
|
$ |
1,418.7 |
|
Operating income |
$ |
87.5 |
|
|
$ |
22.8 |
|
|
$ |
163.5 |
|
|
$ |
79.6 |
|
Operating margin |
|
13.0 |
% |
|
|
3.2 |
% |
|
|
12.1 |
% |
|
|
5.7 |
% |
Net income (loss) attributable to Korn Ferry |
$ |
60.8 |
|
|
$ |
(1.7 |
) |
|
$ |
123.4 |
|
|
$ |
44.9 |
|
Basic earnings (loss) per share |
$ |
1.16 |
|
|
$ |
(0.04 |
) |
|
$ |
2.34 |
|
|
$ |
0.86 |
|
Diluted earnings (loss) per share |
$ |
1.14 |
|
|
$ |
(0.04 |
) |
|
$ |
2.30 |
|
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Results (b): |
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Adjusted EBITDA |
$ |
117.0 |
|
|
$ |
98.5 |
|
|
$ |
228.2 |
|
|
$ |
194.2 |
|
Adjusted EBITDA margin |
|
17.4 |
% |
|
|
14.0 |
% |
|
|
16.9 |
% |
|
|
13.8 |
% |
Adjusted net income attributable to Korn Ferry |
$ |
64.7 |
|
|
$ |
51.0 |
|
|
$ |
127.8 |
|
|
$ |
102.5 |
|
Adjusted basic earnings per share |
$ |
1.23 |
|
|
$ |
0.98 |
|
|
$ |
2.42 |
|
|
$ |
1.97 |
|
Adjusted diluted earnings per share |
$ |
1.21 |
|
|
$ |
0.97 |
|
|
$ |
2.38 |
|
|
$ |
1.96 |
|
______________________ |
||
(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): |
|
|
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Integration/acquisition costs |
$ |
3.9 |
|
$ |
5.0 |
|
$ |
5.0 |
|
$ |
9.2 |
||||
Restructuring charges, net |
$ |
0.6 |
|
|
$ |
63.5 |
|
|
$ |
0.6 |
|
|
$ |
63.9 |
|
Impairment of fixed assets |
$ |
— |
|
|
$ |
1.5 |
|
|
$ |
— |
|
|
$ |
1.6 |
|
Impairment of right-of-use assets |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1.6 |
|
The Company reported fee revenue in Q2 FY'25 of
Operating income was
Operating income, operating margin, and net income attributable to Korn Ferry increased as a result of decreases in restructuring charges, net, integration/acquisition costs, disciplined cost management, and lower cost of services expense compared to the year-ago quarter. These decreases in expenses were partially offset by the decrease in fee revenue discussed above.
Adjusted EBITDA and margin increased due to the same factors above excluding restructuring charges, net and integration/acquisition costs.
Results by Line of Business |
|||||||||||||||
Selected Consulting Data |
|||||||||||||||
(dollars in millions) (a) |
|||||||||||||||
|
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Fee revenue |
$ |
166.8 |
|
|
$ |
177.8 |
|
|
$ |
334.6 |
|
|
$ |
345.9 |
|
Total revenue |
$ |
169.4 |
|
|
$ |
181.0 |
|
|
$ |
340.2 |
|
|
$ |
351.7 |
|
|
|
|
|
|
|
|
|
||||||||
Ending number of consultants and execution staff (b) |
|
1,646 |
|
|
|
1,780 |
|
|
|
1,646 |
|
|
|
1,780 |
|
Hours worked in thousands (c) |
|
398 |
|
|
|
431 |
|
|
|
793 |
|
|
|
858 |
|
Average bill rate (d) |
$ |
419 |
|
|
$ |
413 |
|
|
$ |
422 |
|
|
$ |
403 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Results (e): |
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Adjusted EBITDA |
$ |
29.1 |
|
|
$ |
28.9 |
|
|
$ |
58.4 |
|
|
$ |
54.1 |
|
Adjusted EBITDA margin |
|
17.5 |
% |
|
|
16.3 |
% |
|
|
17.5 |
% |
|
|
15.6 |
% |
______________________ |
||
(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: |
|
|
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Restructuring charges, net |
$ |
0.4 |
|
$ |
17.6 |
|
$ |
0.4 |
|
$ |
17.8 |
||||
Impairment of right-of-use assets |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.6 |
|
Fee revenue was
Adjusted EBITDA was
Selected Digital Data |
|||||||||||||||
(dollars in millions) (a) |
|||||||||||||||
|
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Fee revenue |
$ |
92.9 |
|
|
$ |
97.1 |
|
|
$ |
181.1 |
|
|
$ |
185.1 |
|
Total revenue |
$ |
93.0 |
|
|
$ |
97.2 |
|
|
$ |
181.2 |
|
|
$ |
185.2 |
|
|
|
|
|
|
|
|
|
||||||||
Ending number of consultants |
|
260 |
|
|
|
284 |
|
|
|
260 |
|
|
|
284 |
|
Subscription & License fee revenue |
$ |
34.6 |
|
|
$ |
32.4 |
|
|
$ |
68.7 |
|
|
$ |
64.9 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Results (b): |
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Adjusted EBITDA |
$ |
29.2 |
|
|
$ |
29.0 |
|
|
$ |
55.8 |
|
|
$ |
53.3 |
|
Adjusted EBITDA margin |
|
31.4 |
% |
|
|
29.9 |
% |
|
|
30.8 |
% |
|
|
28.8 |
% |
______________________ |
||
(a) |
Numbers may not total due to rounding. |
|
(b) |
Adjusted results exclude the following: |
|
|
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Restructuring charges, net |
$ |
— |
|
$ |
8.9 |
|
$ |
— |
|
$ |
8.9 |
||||
Impairment of fixed assets |
$ |
— |
|
|
$ |
1.5 |
|
|
$ |
— |
|
|
$ |
1.5 |
|
Fee revenue was
Adjusted EBITDA was
Selected Executive Search Data(a) |
|||||||||||||||
(dollars in millions) (b) |
|||||||||||||||
|
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Fee revenue |
$ |
206.0 |
|
|
$ |
203.0 |
|
|
$ |
414.6 |
|
|
$ |
408.2 |
|
Total revenue |
$ |
208.0 |
|
|
$ |
204.8 |
|
|
$ |
418.3 |
|
|
$ |
412.4 |
|
|
|
|
|
|
|
|
|
||||||||
Ending number of consultants |
|
555 |
|
|
|
586 |
|
|
|
555 |
|
|
|
586 |
|
Average number of consultants |
|
557 |
|
|
|
599 |
|
|
|
549 |
|
|
|
594 |
|
Engagements billed |
|
3,566 |
|
|
|
3,488 |
|
|
|
5,474 |
|
|
|
5,555 |
|
New engagements (c) |
|
1,567 |
|
|
|
1,531 |
|
|
|
3,123 |
|
|
|
3,080 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Results (d): |
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Adjusted EBITDA |
$ |
51.4 |
|
|
$ |
39.7 |
|
|
$ |
100.8 |
|
|
$ |
82.2 |
|
Adjusted EBITDA margin |
|
24.9 |
% |
|
|
19.6 |
% |
|
|
24.3 |
% |
|
|
20.1 |
% |
______________________ |
||
(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: |
|
|
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Restructuring charges, net |
$ |
0.2 |
|
$ |
25.7 |
|
$ |
0.2 |
|
$ |
25.9 |
||||
Impairment of right-of-use assets |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.9 |
|
Impairment of fixed assets |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.1 |
|
Fee revenue was
Adjusted EBITDA was
Selected Professional Search & Interim Data |
|||||||||||||||
(dollars in millions) (a) |
|||||||||||||||
|
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Fee revenue |
$ |
121.1 |
|
|
$ |
138.4 |
|
|
$ |
242.8 |
|
|
$ |
280.6 |
|
Total revenue |
$ |
122.0 |
|
|
$ |
139.5 |
|
|
$ |
244.7 |
|
|
$ |
282.5 |
|
|
|
|
|
|
|
|
|
||||||||
Permanent Placement: |
|
|
|
|
|
|
|
||||||||
Fee revenue |
$ |
52.8 |
|
|
$ |
56.5 |
|
|
$ |
105.0 |
|
|
$ |
114.8 |
|
Engagements billed |
|
1,740 |
|
|
|
2,018 |
|
|
|
2,844 |
|
|
|
3,455 |
|
New engagements (b) |
|
947 |
|
|
|
1,184 |
|
|
|
1,919 |
|
|
|
2,419 |
|
Ending number of consultants |
|
292 |
|
|
|
383 |
|
|
|
292 |
|
|
|
383 |
|
Interim: |
|
|
|
|
|
|
|
||||||||
Fee revenue |
$ |
68.3 |
|
|
$ |
81.9 |
|
|
$ |
137.8 |
|
|
$ |
165.8 |
|
Average bill rate (c) |
$ |
140 |
|
|
$ |
126 |
|
|
$ |
137 |
|
|
$ |
124 |
|
Average weekly billable consultants (d) |
|
980 |
|
|
|
1,336 |
|
|
|
1,024 |
|
|
|
1,387 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Results (e): |
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Adjusted EBITDA |
$ |
27.2 |
|
|
$ |
25.6 |
|
|
$ |
52.9 |
|
|
$ |
50.0 |
|
Adjusted EBITDA margin |
|
22.5 |
% |
|
|
18.5 |
% |
|
|
21.8 |
% |
|
|
17.8 |
% |
_____________________ |
||
(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: |
|
|
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Integration/acquisition costs |
$ |
1.4 |
|
$ |
4.9 |
|
$ |
2.5 |
|
$ |
8.9 |
||||
Restructuring charges, net |
$ |
— |
|
|
$ |
3.8 |
|
|
$ |
— |
|
|
$ |
3.8 |
|
Fee revenue was
Adjusted EBITDA was
Selected Recruitment Process Outsourcing ("RPO") Data |
|||||||||||||||
(dollars in millions) (a) |
|||||||||||||||
|
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Fee revenue |
$ |
87.6 |
|
|
$ |
87.7 |
|
|
$ |
176.1 |
|
|
$ |
183.4 |
|
Total revenue |
$ |
89.6 |
|
|
$ |
90.1 |
|
|
$ |
180.3 |
|
|
$ |
186.9 |
|
|
|
|
|
|
|
|
|
||||||||
Remaining revenue under contract (b) |
$ |
659.2 |
|
|
$ |
680.5 |
|
|
$ |
659.2 |
|
|
$ |
680.5 |
|
RPO new business (c) |
$ |
101.1 |
|
|
$ |
140.9 |
|
|
$ |
204.7 |
|
|
$ |
189.1 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Results (d): |
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Adjusted EBITDA |
$ |
12.9 |
|
|
$ |
8.9 |
|
|
$ |
25.4 |
|
|
$ |
19.3 |
|
Adjusted EBITDA margin |
|
14.7 |
% |
|
|
10.1 |
% |
|
|
14.4 |
% |
|
|
10.5 |
% |
______________________ |
||
(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: |
|
|
Second Quarter |
|
Year to Date |
||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
||||||||
Restructuring charges, net |
$ |
— |
|
$ |
7.2 |
|
$ |
— |
|
$ |
7.2 |
||||
Impairment of right-of-use assets |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.1 |
|
Fee revenue was
Adjusted EBITDA was
Outlook
Assuming worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:
-
Q3 FY’25 fee revenue is expected to be in the range of
$635 million $665 million -
Q3 FY’25 diluted earnings per share is expected to range between
$1.02 $1.16
On a consolidated adjusted basis:
-
Q3 FY’25 adjusted diluted earnings per share is expected to be in the range from
$1.06 $1.18
|
Q3 FY’25 Earnings Per Share Outlook |
||||||
|
Low |
|
High |
||||
Consolidated diluted earnings per share |
$ |
1.02 |
|
|
$ |
1.16 |
|
Integration/acquisition costs |
|
0.05 |
|
|
|
0.03 |
|
Tax rate impact |
|
(0.01 |
) |
|
|
(0.01 |
) |
Consolidated adjusted diluted earnings per share(1) |
$ |
1.06 |
|
|
$ |
1.18 |
|
______________________ |
||
(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, expected results of our business diversification strategy, expected benefits of the acquisition of Trilogy, 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, resulting organizational changes, our indebtedness, and 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
- 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;
- 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;
- 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; and
- 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, 3) impairment of right-of-use assets due to the decision to terminate and sublease some of our offices and 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. 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 OPERATIONS |
|||||||||||||||
(in thousands, except per share amounts) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
|
(unaudited) |
||||||||||||||
Fee revenue |
$ |
674,365 |
|
|
$ |
704,003 |
|
|
$ |
1,349,311 |
|
|
$ |
1,403,192 |
|
Reimbursed out-of-pocket engagement expenses |
|
7,595 |
|
|
|
8,444 |
|
|
|
15,410 |
|
|
|
15,517 |
|
Total revenue |
|
681,960 |
|
|
|
712,447 |
|
|
|
1,364,721 |
|
|
|
1,418,709 |
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits |
|
437,427 |
|
|
|
453,859 |
|
|
|
889,202 |
|
|
|
933,740 |
|
General and administrative expenses |
|
64,541 |
|
|
|
65,737 |
|
|
|
124,540 |
|
|
|
131,654 |
|
Reimbursed expenses |
|
7,595 |
|
|
|
8,444 |
|
|
|
15,410 |
|
|
|
15,517 |
|
Cost of services |
|
64,657 |
|
|
|
78,512 |
|
|
|
132,201 |
|
|
|
155,702 |
|
Depreciation and amortization |
|
19,688 |
|
|
|
19,554 |
|
|
|
39,266 |
|
|
|
38,566 |
|
Restructuring charges, net |
|
576 |
|
|
|
63,525 |
|
|
|
576 |
|
|
|
63,946 |
|
Total operating expenses |
|
594,484 |
|
|
|
689,631 |
|
|
|
1,201,195 |
|
|
|
1,339,125 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
87,476 |
|
|
|
22,816 |
|
|
|
163,526 |
|
|
|
79,584 |
|
Other income (loss), net |
|
5,391 |
|
|
|
(13,835 |
) |
|
|
19,896 |
|
|
|
(258 |
) |
Interest expense, net |
|
(5,626 |
) |
|
|
(6,596 |
) |
|
|
(9,571 |
) |
|
|
(11,336 |
) |
Income before provision for income taxes |
|
87,241 |
|
|
|
2,385 |
|
|
|
173,851 |
|
|
|
67,990 |
|
Income tax provision |
|
24,898 |
|
|
|
2,341 |
|
|
|
47,252 |
|
|
|
20,761 |
|
Net income |
|
62,343 |
|
|
|
44 |
|
|
|
126,599 |
|
|
|
47,229 |
|
Net income attributable to noncontrolling interest |
|
(1,543 |
) |
|
|
(1,755 |
) |
|
|
(3,195 |
) |
|
|
(2,335 |
) |
Net income (loss) attributable to Korn Ferry |
$ |
60,800 |
|
|
$ |
(1,711 |
) |
|
$ |
123,404 |
|
|
$ |
44,894 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per common share attributable to Korn Ferry: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.16 |
|
|
$ |
(0.04 |
) |
|
$ |
2.34 |
|
|
$ |
0.86 |
|
Diluted |
$ |
1.14 |
|
|
$ |
(0.04 |
) |
|
$ |
2.30 |
|
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
51,957 |
|
|
|
51,328 |
|
|
|
51,953 |
|
|
|
51,131 |
|
Diluted |
|
52,750 |
|
|
|
51,328 |
|
|
|
52,864 |
|
|
|
51,401 |
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per share: |
$ |
0.37 |
|
|
$ |
0.18 |
|
|
$ |
0.74 |
|
|
$ |
0.36 |
|
KORN FERRY AND SUBSIDIARIES |
|||||||||||||||||||||
FINANCIAL SUMMARY BY REPORTING SEGMENT |
|||||||||||||||||||||
(dollars in thousands) |
|||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||
|
Three Months Ended October 31, |
|
Six Months Ended October 31, |
||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
||
Fee revenue: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consulting |
$ |
166,771 |
|
$ |
177,795 |
|
(6.2 |
%) |
|
$ |
334,641 |
|
$ |
345,883 |
|
(3.3 |
%) |
||||
Digital |
|
92,893 |
|
|
|
97,092 |
|
|
(4.3 |
%) |
|
|
181,073 |
|
|
|
185,078 |
|
|
(2.2 |
%) |
Executive Search: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
129,891 |
|
|
|
132,512 |
|
|
(2.0 |
%) |
|
|
264,643 |
|
|
|
260,010 |
|
|
1.8 |
% |
EMEA |
|
46,788 |
|
|
|
43,098 |
|
|
8.6 |
% |
|
|
92,769 |
|
|
|
89,874 |
|
|
3.2 |
% |
|
|
21,464 |
|
|
|
19,304 |
|
|
11.2 |
% |
|
|
42,043 |
|
|
|
43,843 |
|
|
(4.1 |
%) |
|
|
7,856 |
|
|
|
8,079 |
|
|
(2.8 |
%) |
|
|
15,179 |
|
|
|
14,500 |
|
|
4.7 |
% |
Total Executive Search (a) |
|
205,999 |
|
|
|
202,993 |
|
|
1.5 |
% |
|
|
414,634 |
|
|
|
408,227 |
|
|
1.6 |
% |
Professional Search & Interim |
|
121,107 |
|
|
|
138,384 |
|
|
(12.5 |
%) |
|
|
242,848 |
|
|
|
280,563 |
|
|
(13.4 |
%) |
RPO |
|
87,595 |
|
|
|
87,739 |
|
|
(0.2 |
%) |
|
|
176,115 |
|
|
|
183,441 |
|
|
(4.0 |
%) |
Total fee revenue |
|
674,365 |
|
|
|
704,003 |
|
|
(4.2 |
%) |
|
|
1,349,311 |
|
|
|
1,403,192 |
|
|
(3.8 |
%) |
Reimbursed out-of-pocket engagement expenses |
|
7,595 |
|
|
|
8,444 |
|
|
(10.1 |
%) |
|
|
15,410 |
|
|
|
15,517 |
|
|
(0.7 |
%) |
Total revenue |
$ |
681,960 |
|
|
$ |
712,447 |
|
|
(4.3 |
%) |
|
$ |
1,364,721 |
|
|
$ |
1,418,709 |
|
|
(3.8 |
%) |
(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) |
|||||||
|
October 31,
|
|
April 30,
|
||||
|
(unaudited) |
|
|
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
694,850 |
|
|
$ |
941,005 |
|
Marketable securities |
|
40,658 |
|
|
|
42,742 |
|
Receivables due from clients, net of allowance for doubtful accounts of |
|
579,696 |
|
|
|
541,014 |
|
Income taxes and other receivables |
|
55,033 |
|
|
|
40,696 |
|
Unearned compensation |
|
64,265 |
|
|
|
59,247 |
|
Prepaid expenses and other assets |
|
47,945 |
|
|
|
49,456 |
|
Total current assets |
|
1,482,447 |
|
|
|
1,674,160 |
|
|
|
|
|
||||
Marketable securities, non-current |
|
231,956 |
|
|
|
211,681 |
|
Property and equipment, net |
|
160,805 |
|
|
|
161,849 |
|
Operating lease right-of-use assets, net |
|
162,441 |
|
|
|
160,464 |
|
Cash surrender value of company-owned life insurance policies, net of loans |
|
236,928 |
|
|
|
218,977 |
|
Deferred income taxes |
|
122,344 |
|
|
|
133,564 |
|
Goodwill |
|
908,662 |
|
|
|
908,376 |
|
Intangible assets, net |
|
76,504 |
|
|
|
88,833 |
|
Unearned compensation, non-current |
|
122,263 |
|
|
|
99,913 |
|
Investments and other assets |
|
22,303 |
|
|
|
21,052 |
|
Total assets |
$ |
3,526,653 |
|
|
$ |
3,678,869 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Accounts payable |
$ |
44,051 |
|
|
$ |
50,112 |
|
Income taxes payable |
|
14,652 |
|
|
|
24,076 |
|
Compensation and benefits payable |
|
346,434 |
|
|
|
525,466 |
|
Operating lease liability, current |
|
38,526 |
|
|
|
36,073 |
|
Other accrued liabilities |
|
274,120 |
|
|
|
298,792 |
|
Total current liabilities |
|
717,783 |
|
|
|
934,519 |
|
|
|
|
|
||||
Deferred compensation and other retirement plans |
|
458,089 |
|
|
|
440,396 |
|
Operating lease liability, non-current |
|
142,415 |
|
|
|
143,507 |
|
Long-term debt |
|
397,336 |
|
|
|
396,946 |
|
Deferred tax liabilities |
|
5,542 |
|
|
|
4,540 |
|
Other liabilities |
|
22,623 |
|
|
|
21,636 |
|
Total liabilities |
|
1,743,788 |
|
|
|
1,941,544 |
|
|
|
|
|
||||
Stockholders' equity |
|
|
|
||||
Common stock: |
|
368,260 |
|
|
|
414,885 |
|
Retained earnings |
|
1,509,986 |
|
|
|
1,425,844 |
|
Accumulated other comprehensive loss, net |
|
(100,501 |
) |
|
|
(107,671 |
) |
Total Korn Ferry stockholders' equity |
|
1,777,745 |
|
|
|
1,733,058 |
|
Noncontrolling interest |
|
5,120 |
|
|
|
4,267 |
|
Total stockholders' equity |
|
1,782,865 |
|
|
|
1,737,325 |
|
Total liabilities and stockholders' equity |
$ |
3,526,653 |
|
|
$ |
3,678,869 |
|
(1) |
Information is derived from audited financial statements included in Form 10-K. |
|
KORN FERRY AND SUBSIDIARIES |
|||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
(dollars in thousands, except per share amounts) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Korn Ferry |
$ |
60,800 |
|
|
$ |
(1,711 |
) |
|
$ |
123,404 |
|
|
$ |
44,894 |
|
Net income attributable to non-controlling interest |
|
1,543 |
|
|
|
1,755 |
|
|
|
3,195 |
|
|
|
2,335 |
|
Net income |
|
62,343 |
|
|
|
44 |
|
|
|
126,599 |
|
|
|
47,229 |
|
Income tax provision |
|
24,898 |
|
|
|
2,341 |
|
|
|
47,252 |
|
|
|
20,761 |
|
Income before provision for income taxes |
|
87,241 |
|
|
|
2,385 |
|
|
|
173,851 |
|
|
|
67,990 |
|
Other (income) loss, net |
|
(5,391 |
) |
|
|
13,835 |
|
|
|
(19,896 |
) |
|
|
258 |
|
Interest expense, net |
|
5,626 |
|
|
|
6,596 |
|
|
|
9,571 |
|
|
|
11,336 |
|
Operating income |
|
87,476 |
|
|
|
22,816 |
|
|
|
163,526 |
|
|
|
79,584 |
|
Depreciation and amortization |
|
19,688 |
|
|
|
19,554 |
|
|
|
39,266 |
|
|
|
38,566 |
|
Other income (loss), net |
|
5,391 |
|
|
|
(13,835 |
) |
|
|
19,896 |
|
|
|
(258 |
) |
Integration/acquisition costs (1) |
|
3,896 |
|
|
|
5,030 |
|
|
|
4,972 |
|
|
|
9,158 |
|
Impairment of fixed assets (2) |
|
— |
|
|
|
1,452 |
|
|
|
— |
|
|
|
1,575 |
|
Impairment of right-of-use assets (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,629 |
|
Restructuring charges, net (4) |
|
576 |
|
|
|
63,525 |
|
|
|
576 |
|
|
|
63,946 |
|
Adjusted EBITDA |
$ |
117,027 |
|
|
$ |
98,542 |
|
|
$ |
228,236 |
|
|
$ |
194,200 |
|
|
|
|
|
|
|
|
|
||||||||
Operating margin |
|
13.0 |
% |
|
|
3.2 |
% |
|
|
12.1 |
% |
|
|
5.7 |
% |
Depreciation and amortization |
|
2.9 |
% |
|
|
2.8 |
% |
|
|
2.9 |
% |
|
|
2.7 |
% |
Other income (loss), net |
|
0.8 |
% |
|
|
(1.9 |
%) |
|
|
1.5 |
% |
|
|
0.0 |
% |
Integration/acquisition costs (1) |
|
0.6 |
% |
|
|
0.7 |
% |
|
|
0.4 |
% |
|
|
0.7 |
% |
Impairment of fixed assets (2) |
|
— |
% |
|
|
0.2 |
% |
|
|
— |
% |
|
|
0.1 |
% |
Impairment of right-of-use assets (3) |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.1 |
% |
Restructuring charges, net (4) |
|
0.1 |
% |
|
|
9.0 |
% |
|
|
0.0 |
% |
|
|
4.5 |
% |
Adjusted EBITDA margin |
|
17.4 |
% |
|
|
14.0 |
% |
|
|
16.9 |
% |
|
|
13.8 |
% |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Korn Ferry |
$ |
60,800 |
|
|
$ |
(1,711 |
) |
|
$ |
123,404 |
|
|
$ |
44,894 |
|
Integration/acquisition costs (1) |
|
3,896 |
|
|
|
5,030 |
|
|
|
4,972 |
|
|
|
9,158 |
|
Impairment of fixed assets (2) |
|
— |
|
|
|
1,452 |
|
|
|
— |
|
|
|
1,575 |
|
Impairment of right-of-use assets (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,629 |
|
Restructuring charges, net (4) |
|
576 |
|
|
|
63,525 |
|
|
|
576 |
|
|
|
63,946 |
|
Tax effect on the adjusted items (5) |
|
(585 |
) |
|
|
(17,252 |
) |
|
|
(1,145 |
) |
|
|
(18,671 |
) |
Adjusted net income attributable to Korn Ferry |
$ |
64,687 |
|
|
$ |
51,044 |
|
|
$ |
127,807 |
|
|
$ |
102,531 |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per common share |
$ |
1.16 |
|
|
$ |
(0.04 |
) |
|
$ |
2.34 |
|
|
$ |
0.86 |
|
Integration/acquisition costs (1) |
|
0.07 |
|
|
|
0.10 |
|
|
|
0.09 |
|
|
|
0.18 |
|
Impairment of fixed assets (2) |
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
|
0.03 |
|
Impairment of right-of-use assets (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
Restructuring charges, net (4) |
|
0.01 |
|
|
|
1.24 |
|
|
|
0.01 |
|
|
|
1.24 |
|
Tax effect on the adjusted items (5) |
|
(0.01 |
) |
|
|
(0.35 |
) |
|
|
(0.02 |
) |
|
|
(0.37 |
) |
Adjusted basic earnings per share |
$ |
1.23 |
|
|
$ |
0.98 |
|
|
$ |
2.42 |
|
|
$ |
1.97 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per common share |
$ |
1.14 |
|
|
$ |
(0.04 |
) |
|
$ |
2.30 |
|
|
$ |
0.86 |
|
Integration/acquisition costs (1) |
|
0.07 |
|
|
|
0.10 |
|
|
|
0.09 |
|
|
|
0.18 |
|
Impairment of fixed assets (2) |
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
|
0.03 |
|
Impairment of right-of-use assets (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
Restructuring charges, net (4) |
|
0.01 |
|
|
|
1.23 |
|
|
|
0.01 |
|
|
|
1.23 |
|
Tax effect on the adjusted items (5) |
|
(0.01 |
) |
|
|
(0.35 |
) |
|
|
(0.02 |
) |
|
|
(0.37 |
) |
Adjusted diluted earnings per share |
$ |
1.21 |
|
|
$ |
0.97 |
|
|
$ |
2.38 |
|
|
$ |
1.96 |
|
Explanation of Non-GAAP Adjustments |
||
(1) |
Costs associated with current and previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses. |
|
(2) |
Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment. |
|
(3) |
Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices. |
|
(4) |
Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment. |
|
(5) |
Tax effect on integration/acquisition costs, impairment of fixed assets and right-of-use assets, and restructuring charges, net. |
|
KORN FERRY AND SUBSIDIARIES |
|||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED |
|||||||||||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||||||||||
|
Three Months Ended October 31, |
||||||||||||||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||||||||||||||
|
Fee
|
|
Total
|
|
Adjusted
|
|
Adjusted
|
|
Fee
|
|
Total
|
|
Adjusted
|
|
Adjusted
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
(dollars in thousands) |
||||||||||||||||||||||||||||
Consulting |
$ |
166,771 |
|
$ |
169,384 |
|
$ |
29,106 |
|
|
17.5 |
% |
|
$ |
177,795 |
|
$ |
180,953 |
|
$ |
28,928 |
|
|
16.3 |
% |
||||
Digital |
|
92,893 |
|
|
|
93,038 |
|
|
|
29,188 |
|
|
31.4 |
% |
|
|
97,092 |
|
|
|
97,157 |
|
|
|
28,983 |
|
|
29.9 |
% |
Executive Search: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
129,891 |
|
|
|
131,419 |
|
|
|
36,907 |
|
|
28.4 |
% |
|
|
132,512 |
|
|
|
133,933 |
|
|
|
29,436 |
|
|
22.2 |
% |
EMEA |
|
46,788 |
|
|
|
47,132 |
|
|
|
7,487 |
|
|
16.0 |
% |
|
|
43,098 |
|
|
|
43,315 |
|
|
|
5,619 |
|
|
13.0 |
% |
|
|
21,464 |
|
|
|
21,540 |
|
|
|
4,432 |
|
|
20.6 |
% |
|
|
19,304 |
|
|
|
19,460 |
|
|
|
3,875 |
|
|
20.1 |
% |
|
|
7,856 |
|
|
|
7,859 |
|
|
|
2,552 |
|
|
32.5 |
% |
|
|
8,079 |
|
|
|
8,085 |
|
|
|
805 |
|
|
10.0 |
% |
Total Executive Search |
|
205,999 |
|
|
|
207,950 |
|
|
|
51,378 |
|
|
24.9 |
% |
|
|
202,993 |
|
|
|
204,793 |
|
|
|
39,735 |
|
|
19.6 |
% |
Professional Search & Interim |
|
121,107 |
|
|
|
121,988 |
|
|
|
27,203 |
|
|
22.5 |
% |
|
|
138,384 |
|
|
|
139,455 |
|
|
|
25,622 |
|
|
18.5 |
% |
RPO |
|
87,595 |
|
|
|
89,600 |
|
|
|
12,899 |
|
|
14.7 |
% |
|
|
87,739 |
|
|
|
90,089 |
|
|
|
8,855 |
|
|
10.1 |
% |
Corporate |
|
— |
|
|
|
— |
|
|
|
(32,747 |
) |
|
|
|
|
— |
|
|
|
— |
|
|
|
(33,581 |
) |
|
|
||
Consolidated |
$ |
674,365 |
|
|
$ |
681,960 |
|
|
$ |
117,027 |
|
|
17.4 |
% |
|
$ |
704,003 |
|
|
$ |
712,447 |
|
|
$ |
98,542 |
|
|
14.0 |
% |
|
Six Months Ended October 31, |
||||||||||||||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||||||||||||||
|
Fee
|
|
Total
|
|
Adjusted
|
|
Adjusted
|
|
Fee
|
|
Total
|
|
Adjusted
|
|
Adjusted
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
(dollars in thousands) |
||||||||||||||||||||||||||||
Consulting |
$ |
334,641 |
|
$ |
340,151 |
|
$ |
58,400 |
|
|
17.5 |
% |
|
$ |
345,883 |
|
$ |
351,746 |
|
$ |
54,108 |
|
|
15.6 |
% |
||||
Digital |
|
181,073 |
|
|
|
181,249 |
|
|
|
55,811 |
|
|
30.8 |
% |
|
|
185,078 |
|
|
|
185,169 |
|
|
|
53,308 |
|
|
28.8 |
% |
Executive Search: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
264,643 |
|
|
|
267,506 |
|
|
|
72,005 |
|
|
27.2 |
% |
|
|
260,010 |
|
|
|
263,346 |
|
|
|
58,192 |
|
|
22.4 |
% |
EMEA |
|
92,769 |
|
|
|
93,408 |
|
|
|
14,752 |
|
|
15.9 |
% |
|
|
89,874 |
|
|
|
90,450 |
|
|
|
11,257 |
|
|
12.5 |
% |
|
|
42,043 |
|
|
|
42,244 |
|
|
|
8,650 |
|
|
20.6 |
% |
|
|
43,843 |
|
|
|
44,070 |
|
|
|
10,190 |
|
|
23.2 |
% |
|
|
15,179 |
|
|
|
15,185 |
|
|
|
5,350 |
|
|
35.2 |
% |
|
|
14,500 |
|
|
|
14,507 |
|
|
|
2,546 |
|
|
17.6 |
% |
Total Executive Search |
|
414,634 |
|
|
|
418,343 |
|
|
|
100,757 |
|
|
24.3 |
% |
|
|
408,227 |
|
|
|
412,373 |
|
|
|
82,185 |
|
|
20.1 |
% |
Professional Search & Interim |
|
242,848 |
|
|
|
244,718 |
|
|
|
52,909 |
|
|
21.8 |
% |
|
|
280,563 |
|
|
|
282,524 |
|
|
|
49,951 |
|
|
17.8 |
% |
RPO |
|
176,115 |
|
|
|
180,260 |
|
|
|
25,393 |
|
|
14.4 |
% |
|
|
183,441 |
|
|
|
186,897 |
|
|
|
19,326 |
|
|
10.5 |
% |
Corporate |
|
— |
|
|
|
— |
|
|
|
(65,034 |
) |
|
|
|
|
— |
|
|
|
— |
|
|
|
(64,678 |
) |
|
|
||
Consolidated |
$ |
1,349,311 |
|
|
$ |
1,364,721 |
|
|
$ |
228,236 |
|
|
16.9 |
% |
|
$ |
1,403,192 |
|
|
$ |
1,418,709 |
|
|
$ |
194,200 |
|
|
13.8 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241127978293/en/
Investor Relations: Tiffany Louder, (214) 310-8407
Media: Dan Gugler, (310) 226-2645
Source: Korn Ferry
FAQ
What was Korn Ferry's (KFY) revenue in Q2 FY2025?
What was KFY's earnings per share in Q2 FY2025?
How much did Korn Ferry (KFY) spend on share repurchases in Q2 FY2025?
What is Korn Ferry's (KFY) dividend payment for Q2 FY2025?
