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Jan 31, 2021

Korn Ferry Q3 2021 Earnings Report

Korn Ferry's Q3 2021 financial results demonstrated business resilience with strong sequential fee revenue growth and record earnings and profitability.

Key Takeaways

Korn Ferry announced third quarter fiscal 2021 results with fee revenue of $475.4 million, a sequential increase of 9% from Q2 FY'21. The company reported record net income of $51.3 million, and diluted earnings per share of $0.94 and adjusted diluted earnings per share of $0.95, both all-time highs.

Fee revenue of $475.4 million in Q3 FY’21, a sequential increase of 9% from Q2 FY’21.

Record net income attributable to Korn Ferry of $51.3 million in Q3 FY’21.

Operating income and Adjusted EBITDA were both all-time highs at $65.2 million (operating margin of 13.7%) and $96.7 million (Adjusted EBITDA margin of 20.3%), respectively.

Highest diluted earnings per share and adjusted diluted earnings per share to date at $0.94 and $0.95, respectively, for Q3 FY’21.

Total Revenue
$478M
Previous year: $528M
-9.5%
EPS
$0.95
Previous year: $0.75
+26.7%
Executive Search Engagements Billed
3.26K
Previous year: 3.77K
-13.5%
Executive Search New Engagements
1.3K
Previous year: 1.57K
-16.9%
Digital Subscription License Revenue
$22.6M
Previous year: $21.3M
+6.1%
Gross Profit
$455M
Previous year: $485M
-6.0%
Cash and Equivalents
$694M
Previous year: $564M
+23.1%
Free Cash Flow
$139M
Previous year: $151M
-8.2%
Total Assets
$2.86B
Previous year: $2.74B
+4.5%

Korn Ferry

Korn Ferry

Korn Ferry Revenue by Segment

Korn Ferry Revenue by Geographic Location

Forward Guidance

Korn Ferry expects Q4 FY'21 fee revenue to be in the range of $475 million and $500 million, and diluted earnings per share is expected to range between $0.95 to $1.05, assuming no new major pandemic lockdowns and steady worldwide economic conditions, financial markets, and foreign exchange rates.

Positive Outlook

  • Q4 FY'21 fee revenue is expected to be in the range of $475 million and $500 million.
  • Q4 FY'21 diluted earnings per share is expected to range between $0.95 to $1.05.
  • Assuming no new major pandemic lockdowns.
  • Assuming worldwide economic conditions remain steady.
  • Assuming financial markets and foreign exchange rates remain steady.

Revenue & Expenses

Visualization of income flow from segment revenue to net income