•
Oct 31, 2020

Korn Ferry Q2 2021 Earnings Report

Korn Ferry's financial performance rebounded sharply in Q2 2021, with revenue up 27% sequentially and improved earnings and profitability.

Key Takeaways

Korn Ferry reported a strong second quarter with fee revenue of $435.4 million, a 27% increase sequentially. Net income attributable to Korn Ferry was $27.8 million, with an operating margin of 11.1%. Adjusted EBITDA was $66.2 million, with an adjusted EBITDA margin of 15.2%.

Fee revenue was $435.4 million, a decrease of 12% year-over-year but a 27% increase sequentially.

Net income attributable to Korn Ferry was $27.8 million.

Operating income was $48.2 million, with an operating margin of 11.1%.

Diluted earnings per share was $0.51, and adjusted diluted earnings per share was $0.54.

Total Revenue
$438M
Previous year: $492M
-11.1%
EPS
$0.54
Previous year: $0.81
-33.3%
Executive Search Engagements Billed
3.08K
Previous year: 3.85K
-19.9%
Executive Search New Engagements
1.33K
Previous year: 1.58K
-15.5%
Digital Subscription License Revenue
$22.7M
Previous year: $15.9M
+42.8%
Gross Profit
$420M
Previous year: $474M
-11.5%
Cash and Equivalents
$553M
Previous year: $464M
+19.1%
Free Cash Flow
$45.7M
Previous year: $44.7M
+2.1%
Total Assets
$2.69B
Previous year: $2.49B
+8.3%

Korn Ferry

Korn Ferry

Korn Ferry Revenue by Segment

Forward Guidance

Due to the uncertainty caused by COVID-19, Korn Ferry will not issue specific revenue or earnings guidance for the third quarter of FY'21.

Positive Outlook

  • Announcements around vaccines that have greater than 90% effectiveness.
  • The world has adopted new ways of working and interacting with substantial acceptance of business being conducted in a virtual world.

Challenges Ahead

  • Unanswered questions regarding the capacity to manufacture the vaccines at scale.
  • Unanswered questions regarding how vaccines will be distributed and administered to the population at large.
  • Governments are putting lockdowns back in place as the number of COVID-19 cases and hospitalizations reach all-time highs.
  • Constantly evolving and unprecedented nature of what we are currently experiencing.
  • Ever-changing datapoints continues to cloud the near-term predictability of our business.

Revenue & Expenses

Visualization of income flow from segment revenue to net income