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Jul 31, 2021

Korn Ferry Q1 2022 Earnings Report

Korn Ferry achieved record results driven by strong demand across all lines of business and effective cost management.

Key Takeaways

Korn Ferry reported record first quarter fee revenue of $585.4 million, a 70% increase year-over-year. The company's profitability was also strong, with diluted earnings per share at $1.37 and Adjusted EBITDA margin at 20.7%.

Korn Ferry reported record quarterly fee revenue of $585.4 million in Q1 FY’22, an increase of 70% from Q1 FY’21 and a sequential increase of 5% from Q4 FY’21.

Operating income and Adjusted EBITDA were both all-time highs in Q1 FY’22 at $101.3 million (operating margin of 17.3%) and $121.3 million (Adjusted EBITDA margin of 20.7%), respectively.

Record net income attributable to Korn Ferry and record diluted earnings per share of $74.8 million and $1.37 in Q1 FY’22, respectively.

Declared a quarterly dividend of $0.12 per share on September 7, 2021, which is payable on October 15, 2021 to stockholders of record on September 23, 2021.

Total Revenue
$588M
Previous year: $347M
+69.5%
EPS
$1.37
Previous year: -$0.19
-821.1%
Executive Search Engagements Billed
4.18K
Previous year: 2.67K
+56.3%
Executive Search New Engagements
1.75K
Previous year: 1.12K
+56.5%
Digital Subscription License Revenue
$24.4M
Previous year: $21.1M
+15.6%
Gross Profit
$563M
Previous year: $330M
+70.8%
Cash and Equivalents
$649M
Previous year: $543M
+19.6%
Free Cash Flow
-$170M
Previous year: -$153M
+10.8%
Total Assets
$2.94B
Previous year: $2.62B
+12.4%

Korn Ferry

Korn Ferry

Korn Ferry Revenue by Segment

Forward Guidance

Korn Ferry expects Q2 FY'22 fee revenue to be in the range of $585 million and $615 million, and diluted earnings per share to range between $1.30 to $1.44, assuming no new major pandemic lockdowns and steady worldwide economic conditions, financial markets, and foreign exchange rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income