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Apr 30, 2023

Korn Ferry Q4 2023 Earnings Report

Korn Ferry's Q4 FY23 results reflected a mix of growth in some segments offset by declines in others, influenced by global economic factors and strategic shifts towards interim solutions.

Key Takeaways

Korn Ferry reported Q4 FY'23 fee revenue of $730.9 million, a 1% increase year-over-year (3% on a constant currency basis). Net income attributable to Korn Ferry was $47.5 million, with diluted earnings per share at $0.91 and adjusted diluted earnings per share at $1.01. The company's diversification strategy and acquisitions in the interim business contributed to revenue, while declines in Executive Search and Permanent Placement impacted overall operating margin.

Fee revenue increased by 1% to $730.9 million, driven by growth in the Interim portion of Professional Search & Interim.

Net income attributable to Korn Ferry decreased to $47.5 million, with diluted EPS of $0.91.

Operating margin was 9.9%, and Adjusted EBITDA margin was 13.4%, reflecting a change in fee revenue mix.

The company repurchased 255,000 shares of stock for $13.4 million and increased its quarterly cash dividend by 20%.

Total Revenue
$738M
Previous year: $727M
+1.5%
EPS
$1.01
Previous year: $1.75
-42.3%
Executive Search Engagements Billed
3.77K
Previous year: 4.42K
-14.6%
Executive Search New Engagements
1.51K
Previous year: 1.85K
-18.5%
Digital Subscription License Revenue
$31.6M
Previous year: $29.1M
+8.6%
Gross Profit
$650M
Previous year: $685M
-5.1%
Cash and Equivalents
$844M
Previous year: $978M
-13.7%
Free Cash Flow
$235M
Previous year: $263M
-10.9%
Total Assets
$3.57B
Previous year: $3.46B
+3.2%

Korn Ferry

Korn Ferry

Korn Ferry Revenue by Segment

Forward Guidance

Korn Ferry expects Q1 FY'24 fee revenue to be in the range of $668 million and $698 million, with diluted earnings per share between $0.78 and $0.95, and adjusted diluted earnings per share between $0.84 and $1.00.

Revenue & Expenses

Visualization of income flow from segment revenue to net income