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Korn Ferry
🇺🇸 NYSE:KFY
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Jan 31, 2022

Korn Ferry Q3 2022 Earnings Report

Korn Ferry reported strong Q3 2022 results with record fee revenue and EPS.

Key Takeaways

Korn Ferry announced record third quarter fiscal 2022 results, with fee revenue reaching $680.7 million, a 43% increase year-over-year. Diluted earnings per share was $1.54, and adjusted diluted earnings per share was $1.59, both new highs. Operating income and Adjusted EBITDA also reached new highs.

Korn Ferry reports quarterly fee revenue of $680.7 million in Q3 FY’22, an increase of 43% from Q3 FY’21 and a sequential increase of 6% from Q2 FY’22.

Net income attributable to Korn Ferry of $84.1 million and diluted and adjusted diluted earnings per share of $1.54 and $1.59 in Q3 FY’22, respectively, all reaching new highs.

Operating income and Adjusted EBITDA both reached new highs in Q3 FY’22 at $126.3 million (operating margin of 18.6%) and $138.3 million (Adjusted EBITDA margin of 20.3%), respectively.

During the third quarter, the Company completed the acquisition of Lucas Group, which is included in the RPO and Professional Search segment.

Total Revenue
$685M
Previous year: $478M
+43.3%
EPS
$1.59
Previous year: $0.95
+67.4%
Executive Search Engagements Billed
4.34K
Previous year: 3.26K
+33.0%
Executive Search New Engagements
1.79K
Previous year: 1.3K
+37.4%
Digital Subscription License Revenue
$29M
Previous year: $22.6M
+28.3%
Gross Profit
$649M
Previous year: $455M
+42.5%
Cash and Equivalents
$847M
Previous year: $694M
+22.0%
Free Cash Flow
$250M
Previous year: $139M
+80.3%
Total Assets
$3.34B
Previous year: $2.86B
+16.5%

Korn Ferry

Korn Ferry

Korn Ferry Revenue by Segment

Forward Guidance

Korn Ferry expects Q4 FY'22 fee revenue to be in the range of $670 million and $690 million, and diluted earnings per share to range between $1.44 to $1.60. Adjusted diluted earnings per share is expected to be in the range from $1.49 to $1.63.

Positive Outlook

  • Q4 FY’22 fee revenue is expected to be in the range of $670 million and $690 million
  • Q4 FY’22 diluted earnings per share is expected to range between $1.44 to $1.60.
  • Q4 FY’22 adjusted diluted earnings per share is expected to be in the range from $1.49 to $1.63.

Challenges Ahead

  • The very recent situation in Eastern Europe presents a level of risk and uncertainty that is difficult to quantify.
  • Guidance assumes no new major pandemic related lockdowns
  • Guidance assumes no further changes in worldwide geopolitical conditions
  • Guidance assumes no further changes in economic conditions
  • Guidance assumes no further changes in financial markets or foreign exchange rates

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Korn Ferry