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Apr 30, 2022

Korn Ferry Q4 2022 Earnings Report

Announced fourth quarter and full year FY’22 results, achieving new highs in fee revenue, diluted earnings per share, and adjusted diluted earnings per share.

Key Takeaways

Korn Ferry reported a strong fourth quarter with fee revenue reaching $721.1 million, up 30% year-over-year. Diluted earnings per share was $1.70 and adjusted diluted earnings per share was $1.75, both new highs. The Adjusted EBITDA margin was 20%.

Korn Ferry reports Q4 FY’22 fee revenue of $721.1 million, a new all-time high.

Net income attributable to Korn Ferry for the fourth quarter was $91.7 million, with diluted earnings per share of $1.70 and adjusted diluted earnings per share of $1.75, all reaching new highs.

Operating income and Adjusted EBITDA both reached new highs in Q4 FY’22 at $138.8 million and $144.4 million, respectively.

The Company repurchased 1,035,000 shares of stock during the quarter for $67.2 million.

Total Revenue
$727M
Previous year: $557M
+30.4%
EPS
$1.75
Previous year: $1.21
+44.6%
Executive Search Engagements Billed
4.42K
Previous year: 3.79K
+16.4%
Executive Search New Engagements
1.85K
Previous year: 1.71K
+8.1%
Digital Subscription License Revenue
$29.1M
Previous year: $23.6M
+23.3%
Gross Profit
$685M
Previous year: $533M
+28.4%
Cash and Equivalents
$978M
Previous year: $851M
+15.0%
Free Cash Flow
$263M
Previous year: $189M
+39.5%
Total Assets
$3.46B
Previous year: $3.06B
+13.3%

Korn Ferry

Korn Ferry

Korn Ferry Revenue by Segment

Korn Ferry Revenue by Geographic Location

Forward Guidance

Q1 FY’23 fee revenue is expected to be in the range of $680 million and $710 million and diluted earnings per share is expected to range between $1.35 to $1.51.

Positive Outlook

  • Q1 FY’23 fee revenue is expected to be in the range of $680 million and $710 million
  • Q1 FY’23 diluted earnings per share is expected to range between $1.35 to $1.51
  • Q1 FY’23 adjusted diluted earnings per share is expected to be in the range from $1.42 to $1.58.

Challenges Ahead

  • Economic factors like global inflation present a level of risk and uncertainty that is difficult to quantify.
  • Rising interest rates present a level of risk and uncertainty that is difficult to quantify.
  • Escalating geo-political tensions present a level of risk and uncertainty that is difficult to quantify.
  • No new major pandemic related lockdowns or further changes in worldwide geopolitical conditions.
  • Economic conditions, financial markets or foreign exchange rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income