Korn Ferry Posts 14 Percent Revenue Increase

December 8, 2022 – Korn Ferry (NYSE:KFY) has posted 2023 second first quarter revenue of $727.8 million, an increase of 14 percent from the second quarter of last year. Revenue increased in all lines of business except executive search which was down about seven percent compared to the same period a year ago. The acquisitions of Lucas Group, Patina and Infinity Consulting Solutions which are included in the professional search & interim segment, were a significant factor in the year-over-year increase in fee revenue compared to the year-ago quarter.

The Los Angeles-headquartered executive recruiter and leadership consultant – the largest globally and in the Americas as ranked by Hunt Scanlon Media – recorded net income of $73.5 million and diluted earnings per share was $1.53 and adjusted diluted earnings per share was $1.43.

“During the fiscal second quarter we generated $728 million in fee revenue, up 14 percent year-over-year and up 20 percent at constant currency,” said Gary D. Burnison, CEO, Korn Ferry. “Our diluted earnings per share and Adjusted earnings per share were $1.38 and $1.43, respectively, and our adjusted EBITDA was $131 million, representing an 18 percent margin.”

“It’s clear that the global economy has been in transition for several months,” said Mr. Burnison. “We are seeing change on every front – from over a decade of high liquidity and historically low interest rates to changes in central bank policies, significant shifts in global trade lanes and persistent inflationary pressures. In response, companies and our clients will undoubtedly have to continue adjusting their organizational and workforce strategies to tomorrow, which is opportunity for Korn Ferry.”

Korn Ferry repurchased 622,500 shares of stock during the quarter for $33.1 million. In addition, the firm declared a quarterly dividend of $0.15 per share on December 7, 2022, which is payable on January 13, 2023 to stockholders of record on December 21, 2022.

Boosting Interim Solutions

Korn Ferry recently acquired Infinity Consulting Solutions (ICS). Terms of the deal were not disclosed. The acquisition is expected to be immediately accretive to Korn Ferry’s adjusted earnings. “Infinity Consulting Solutions will be a great fit, with interim professional placement offerings and expertise that are highly relevant for the new world of work,” said Mr. Burnison. “Today, Boomers are retiring and career nomads are looking for change – early and often. Our clients have entered a new reality where shortages of skilled labor are projected to persist, particularly in high-demand areas such as IT. Korn Ferry’s acquisition of ICS echoes our commitment to scale our solutions and further increase our focus at the intersection of talent and strategy – wherever and however the needs of organizations evolve.”

Headquartered in New York, with nine offices throughout the U.S., ICS offers interim professional solutions expertise which will further enhance Korn Ferry’s portfolio. ICS is a provider of senior-level IT interim professional solutions with additional expertise in the areas of compliance and legal, accounting and finance, and human resources.

Related: Caldwell Posts Record Q3 Revenue Growth

Korn Ferry also recently acquired interim executive solutions provider Patina Solutions Group. “This combination presents real, tangible opportunity for Korn Ferry and our clients looking for the right talent, who are highly agile, with specialized skills and expertise, to help them drive superior performance, including on an interim basis,” said Mr. Burnison. “Patina offers ideal solutions for today’s nomadic labor market.”


Korn Ferry Announces Board Changes
Korn Ferry has elected Charles Harringtonv as a new member to its board of directors and appointed Jerry Leamon as a new non-executive chair. Christina Gold, who has served on the firm’s board since 2014, and most recently as the non-executive chair since 2019, has retired from the board. In addition, George Shaheen retired from the board after more than 12 years of total service, including as non-executive chair from 2012 to 2019.

“We are pleased to have Chuck join our board,” said Gary D. Burnison, CEO of Korn Ferry. “I believe his extensive business experience, technology credentials, and financial acumen will be a great fit for Korn Ferry as we continue our efforts to broaden the scope of our offerings and help companies synchronize their strategy, operations, and talent to drive superior performance.”


Patina brings to Korn Ferry interim executive solutions expertise across multiple industry verticals. Patina’s network of C-suite, and professional interim talent spans functional areas of expertise including finance, operations, legal, human resources, and IT.

“As part of Korn Ferry, Patina will have even more great solutions to offer our clients,” said Mike Harris, CEO of Patina. “Korn Ferry is a leading global organizational consulting firm, with world-class solutions and we look forward to further bolstering our interim executive solutions with them. We are thrilled to be joining Korn Ferry and excited for the opportunities ahead.”

Looking Ahead

Despite the continuing strength in new business trends coming out of Q1 FY’23, Korn Ferry says that economic factors like global inflation, rising interest rates, and escalating geo-political tensions present a level of risk and uncertainty that is difficult to quantify.

With this in mind and assuming no new major pandemic related lockdowns or further changes in worldwide geopolitical conditions, economic conditions, financial markets or foreign exchange rates, on a consolidated basis Korn Ferry anticipates Q2 FY’23 fee revenue is expected to be in the range of $678 million and $708 million; and Q2 FY’23 diluted earnings per share is expected to range between $1.28 to $1.45.

Korn Ferry shares have lost about 28.8 percent since the beginning of the year versus the S&P 500’s decline of -17.5 percent.

Related: Heidrick & Struggles Posts Record Revenue Gain

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media

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