Korn Ferry Posts 45 Percent Revenue Gain

The largest SHREK firm posted a 45 percent revenue gain in its 2022 fiscal year-end revenues. Korn Ferry saw revenues rise in all regions, with North America leading the charge. Let’s go inside the latest numbers.

June 22, 2022 – Korn Ferry (NYSE:KFY) has posted 2022 fiscal year-end revenues of $2.6 billion, up 45 percent from a year ago. The Los Angeles-headquartered executive recruiter and leadership consultant – the largest globally and in the Americas as ranked by Hunt Scanlon Media – also reported fourth quarter revenue of $721.1 million, an increase of 30 percent. The rise in revenue was primarily due to an increase in demand for the firm’s integrated service offerings and acquisitions in the RPO and professional search segment. These increases were across all regions with the largest increase in North America.

“I am extremely pleased with our financial results during the fiscal fourth quarter, as Korn Ferry once again achieved new highs,” said Gary D. Burnison, CEO of Korn Ferry. “We generated $721 million in fee revenue, up 30 percent (33 percent at constant currency) year over year. Our diluted earnings per share and adjusted diluted earnings per share, at $1.70 and $1.75, respectively, were new highs, and our adjusted EBITDA margin of 20 percent represents our sixth consecutive quarter at 20 percent or greater.”

“The world and our clients have entered a new reality – a Covid transitory era in which there will be a contest for not only growth, but also relevancy and profitability,” said Mr. Burnison. “Companies will have to reassess all aspects of their strategy including their organizational, leadership and talent imperatives. We are also in a cycle in which, regardless of economic activity, shortages of skilled labor are projected to persist for years to come.”

Net income attributable to Korn Ferry for the fourth quarter and full year was $91.7 million and $326.4 million, respectively, while diluted and adjusted diluted earnings per share were $1.70 and $1.75 in Q4, and were $5.98 and $6.23 for the full year, respectively, all reaching new highs.

During the quarter, Korn Ferry repurchased 1,035,000 shares of stock for $67.2 million, bringing full year share repurchases to 1,471,000 for $98.8 million. Further, the board authorized an incremental $300 million for future share repurchases.

Recent Acquisition

Korn Ferry 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.”

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.”

New AI-Enabled Talent Analytics Platform

Korn Ferry recently expanded its digital footprint with the launch of Korn Ferry Intelligence Cloud, a new AI-enabled talent analytics platform. The HR technology combines data-driven insights with Korn Ferry’s consulting expertise and IP. Intelligence Cloud helps solve the challenges of acquiring, managing, and mobilizing the right talent and skills. “Intelligence Cloud builds on Korn Ferry’s 50-plus years of consulting expertise and insights,” said Byrne Mulrooney, CEO of Korn Ferry Digital. “When combined with labor market data and our clients’ HR information system (HRIS) data, the platform helps clients better understand and act on today’s talent shortages and design talent strategies for the workforce of tomorrow.”

Related: Caldwell Posts Record Q3 Revenue Growth

“Intelligence Cloud’s AI-enabled digital apps help organizations gain a clearer, real-time picture of their workforce,” Korn Ferry said in a statement. “With this holistic view, they can model how the environment might change, and map the actions needed to reach their business goals. Intelligence Cloud advances traditional HR data with a greater depth of insight and guidance, which helps uncover and develop the talent and skills organizations need. It’s also vital for creating a talent blueprint—the organization’s best possible design of its future workforce.”

“Today, with so many people on the move, shortages of skills and talent are rapidly becoming business critical,” Mr. Mulrooney said. “CHROs need a single, accurate source of insight to guide decision-making and bring talent strategy and business strategy closer together.”

Korn Ferry shares have lost about 28.9 percent since the beginning of the year versus the S&P 500’s decline of 21 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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