Korn Ferry Posts Eight Percent Revenue Gain

The largest SHREK firm posted an eight percent revenue gain in its 2023 fiscal year-end revenues. Korn Ferry saw revenues rise in all regions and the firm continued its growth via acquisition. Let’s go inside the latest numbers.

June 27, 2023 – Korn Ferry (NYSE:KFY) has posted 2023 fiscal year-end revenues of $2.8 billion, up eight 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 $731 million, an increase of one percent. The revenue gains were primarily due to an increase in the interim portion of professional search and interim, resulting from the acquisitions of Patina, Infinity Consulting Solutions, and Salo. This was partially offset by decreases in executive search, the permanent placement portion of professional search and interim, and RPO mainly due to a decline in demand driven by global economic factors.

“During fiscal year 2023 our fee revenue reached an all-time high of $2.84 billion, up eight percent at actual, 12 percent constant currency,” said Gary D. Burnison, CEO of Korn Ferry. “The story of this period though is really about the success of our diversification strategy, set forth over the past few years, which has created new revenue streams and offerings, as clearly evidenced by our clients and in our results.”

“In FY’23 we added a completely new capability – an interim and transition management business with more than $400 million of annual revenue on a run rate basis,” said Mr. Burnison. “Additionally, the consulting and digital businesses have never been more relevant as our clients increasingly seek transformation, growth, and profitability. With a world immersed in generative AI, Korn Ferry will continue to invest not only in these technologies, but also in advancing our proprietary data, assessment instruments, and knowledge as these will be the ultimate differentiators.”

Net income attributable to Korn Ferry for the fourth quarter and full year was $47.5 million and $209.5 million, respectively, while diluted and adjusted diluted earnings per share were $0.91 and $1.01 in Q4, and were $3.95 and $4.94 for the full year, respectively.

Korn Ferry repurchased 255,000 shares of stock during the quarter for $13.4 million and paid dividends of $8 million. On June 26, the firm increased its regular quarterly cash dividend by 20 percent to $0.18 per share, which is payable on July 31, to stockholders of record on July 7.

Boosting Interim Solutions Via Acquisition

Korn Ferry recently completed its previously disclosed acquisition of Salo LLC, a provider of finance, accounting, and HR interim talent. “Salo will be a great fit, with highly relevant interim professional offerings and expertise that speak to today’s world of work – a new workscape in which more than one-third of the U.S. workforce alone considers themselves to be independent,” said Mr. Burnison. “The Salo acquisition reflects our continued focus on high-demand areas emerging in this environment, as we scale our solutions at the intersection of talent and strategy.”

Related: With Job Cuts Underway, Korn Ferry to Acquire Third Interim Business

“Through the acquisition of Salo, Korn Ferry will further broaden its ability to deliver to organizations experienced professionals, who will take on impactful roles on an interim or project basis, particularly in the high-demand areas of finance, accounting, and HR,” Korn Ferry said. “Now, with Korn Ferry, we will be part of a global network of colleagues, with access to vast IP and more expansive client relationships and opportunities at every turn,” said Lisa Brezonik, CEO of Salo. “Our track record of success and deep interim professional solutions expertise, combined with Korn Ferry’s expansive credentials, will provide clients with greater opportunities to make an impact. We’re excited to be joining Korn Ferry and look forward to what the future holds.”

Korn Ferry also 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.”

Korn Ferry Announces Board Changes
Korn Ferry has elected Charles Harrington 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.”

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.

Korn Ferry also 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.


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 first quarter fee revenue is expected to be in the range of $668 million and $698 million and Q1 diluted earnings per share is expected to range between $0.78 to $0.95.

Related: Korn Ferry Launches AI-Enabled Talent Analytics Platform

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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