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Oct 31, 2023
Korn Ferry Q2 2024 Earnings Report
Korn Ferry's Q2 2024 financial results reflected a decrease in fee revenue, impacted by restructuring charges and a challenging macroeconomic environment, while consulting and digital segments showed resilience.
Key Takeaways
Korn Ferry reported a 3% year-over-year decrease in fee revenue to $704.0 million for Q2 FY'24. The company experienced a net loss of $1.7 million, which included a $52.8 million charge related to restructuring. Consulting and Digital segments showed revenue resilience, growing by almost 3%.
Q2 FY'24 fee revenue was $704.0 million, a 3% decrease year-over-year (5% at constant currency).
Net loss attributable to Korn Ferry was $1.7 million, including a $52.8 million restructuring charge; diluted loss per share was $0.04, and adjusted diluted earnings per share were $0.97.
Operating income was $22.8 million (3.2% margin), and Adjusted EBITDA was $98.5 million (14.0% margin).
Consulting and Digital fee revenue each grew almost 3% year-over-year.
Korn Ferry
Korn Ferry
Korn Ferry Revenue by Segment
Revenue by Segment
Consulting Revenue
CapyFin.comDigital Revenue
CapyFin.comExecutive Search Revenue
CapyFin.comProf. Search & Interim Revenue
CapyFin.com Forward Guidance
Korn Ferry expects Q3 FY'24 fee revenue to be in the range of $645 million to $665 million, with diluted earnings per share between $0.87 and $0.95, and adjusted diluted earnings per share between $0.96 and $1.02, assuming no major pandemic-related lockdowns or changes in worldwide geopolitical, economic, or financial conditions.
Positive Outlook
- Q3 FY'24 fee revenue is expected to be in the range of $645 million and $665 million.
- Q3 FY'24 diluted earnings per share is expected to range between $0.87 to $0.95.
- Q3 FY'24 adjusted diluted earnings per share is expected to be in the range from $0.96 to $1.02.
- Guidance assumes no new major pandemic related lockdowns.
- Guidance assumes no further changes in worldwide geopolitical conditions.
Challenges Ahead
- Guidance is subject to economic conditions.
- Guidance is subject to financial markets.
- Guidance is subject to foreign exchange rates.
- Guidance is subject to economic conditions.
- Guidance is subject to financial markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income