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Jul 31, 2022

Korn Ferry Q1 2023 Earnings Report

Korn Ferry's first quarter fiscal 2023 results were announced, featuring a 19% increase in fee revenue and diluted earnings per share of $1.45.

Key Takeaways

Korn Ferry reported a strong first quarter in fiscal year 2023, with fee revenue reaching $695.9 million, a 19% increase year-over-year. Diluted earnings per share were $1.45, and adjusted diluted earnings per share was $1.50. The company's Adjusted EBITDA was $132 million, representing a 19% margin.

Fee revenue increased by 19% to $695.9 million, or 24% on a constant currency basis.

Net income attributable to Korn Ferry was $77.2 million.

Diluted earnings per share was $1.45, and adjusted diluted earnings per share was $1.50.

Operating income was $111.6 million, with an operating margin of 16.0%.

Total Revenue
$703M
Previous year: $588M
+19.6%
EPS
$1.5
Previous year: $1.37
+9.5%
Executive Search Engagements Billed
4.13K
Previous year: 4.18K
-1.0%
Executive Search New Engagements
1.68K
Previous year: 1.75K
-3.6%
Digital Subscription License Revenue
$29.6M
Previous year: $24.4M
+21.3%
Gross Profit
$658M
Previous year: $563M
+16.8%
Cash and Equivalents
$640M
Previous year: $649M
-1.5%
Free Cash Flow
-$249M
Previous year: -$170M
+46.6%
Total Assets
$3.2B
Previous year: $2.94B
+8.9%

Korn Ferry

Korn Ferry

Korn Ferry Revenue by Segment

Korn Ferry Revenue by Geographic Location

Forward Guidance

Korn Ferry anticipates Q2 FY'23 fee revenue to be in the range of $678 million to $708 million, with diluted earnings per share expected to range between $1.28 and $1.45, and adjusted diluted earnings per share between $1.34 and $1.50.

Positive Outlook

  • Continuing strength in new business trends coming out of Q1 FY’23.
  • Q2 FY’23 fee revenue is expected to be in the range of $678 million and $708 million.
  • Q2 FY’23 diluted earnings per share is expected to range between $1.28 to $1.45.
  • Q2 FY’23 adjusted diluted earnings per share is expected to be in the range from $1.34 to $1.50.
  • Assuming no new major pandemic related lockdowns.

Challenges Ahead

  • Global inflation presents a level of risk and uncertainty.
  • Rising interest rates present a level of risk and uncertainty.
  • Escalating geo-political tensions present a level of risk and uncertainty.
  • Further changes in worldwide geopolitical conditions could impact the company.
  • Economic conditions could impact the company.

Revenue & Expenses

Visualization of income flow from segment revenue to net income