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Jan 31, 2024

Korn Ferry Q3 2024 Earnings Report

Korn Ferry's Q3 FY24 results saw a decrease in fee revenue but an increase in earnings and profitability.

Key Takeaways

Korn Ferry reported Q3 FY24 fee revenue of $668.7 million, a 2% year-over-year decrease. However, earnings and profitability increased, with Adjusted EBITDA reaching $101.7 million and a margin of 15.2%. Consulting and Digital segments showed resilience, with revenue up 3% and 6% respectively.

Fee revenue was $668.7 million, down 2% year-over-year.

Diluted earnings per share was $1.13, and adjusted diluted earnings per share was $1.07.

Adjusted EBITDA was $101.7 million, with a margin of 15.2%.

Consulting and Digital fee revenue increased by 3% and 6%, respectively.

Total Revenue
$677M
Previous year: $687M
-1.5%
EPS
$1.07
Previous year: $1.01
+5.9%
Executive Search Engagements Billed
3.47K
Previous year: 4.08K
-15.0%
Executive Search New Engagements
1.43K
Previous year: 1.52K
-6.0%
Digital Subscription License Revenue
$32.8M
Previous year: $29.6M
+10.8%
Gross Profit
$117M
Previous year: $623M
-81.2%
Cash and Equivalents
$783M
Previous year: $772M
+1.4%
Free Cash Flow
$152M
Previous year: $174M
-12.7%
Total Assets
$3.56B
Previous year: $3.41B
+4.4%

Korn Ferry

Korn Ferry

Korn Ferry Revenue by Segment

Korn Ferry Revenue by Geographic Location

Forward Guidance

Korn Ferry expects Q4 FY24 fee revenue to be in the range of $675 million to $695 million, with diluted earnings per share between $1.06 and $1.14, and adjusted diluted earnings per share between $1.09 and $1.17.

Positive Outlook

  • Q4 FY’24 fee revenue is expected to be in the range of $675 million and $695 million.
  • Q4 FY’24 diluted earnings per share is expected to range between $1.06 to $1.14.
  • Q4 FY’24 adjusted diluted earnings per share is expected to be in the range from $1.09 to $1.17.

Revenue & Expenses

Visualization of income flow from segment revenue to net income