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Korn Ferry revenue up 7% in constant currency on RPO and professional search

September 06, 2019

Revenue rose 7% in constant currency at Korn Ferry International Inc. (NYSE: KFY) in its fiscal first quarter ended July 31; it was up 4.1% on a reported basis. The increase was primarily attributed to growth in RPO and professional search.

The Los Angeles-headquartered firm also reported net income increased to $42.9 million from a loss of $36.8 million in the previous fiscal first quarter. The company attributed the improvement to a decrease in general and administrative expenses — mainly due to a $106.6 million tradename write-off in the prior-year period — partially offset by an increase in income tax provisions in the current fiscal year’s first quarter.

Korn Ferry provides executive search, leadership and talent consulting, and recruitment process outsourcing.

(US$ thousands) Q1 2020 Q1 2019 % change % change (constant currency)
Fee revenue $484,549 $465,568 4.1% 7%
Net income/loss $42,951 -$38,611 nm  

Fee revenue by segment

(US$ thousands) Q1 2020 Q1 2019 % change % change (constant currency)
Total executive search $193,199 $192,924 0.1% 2%
Advisory $195,526 $195,375 0.1% 3%
RPO and professional search $95,824 $77,269 24.0% 27%

Executive search fee revenue by geography

(US$ thousands) Q1 2020 Q1 2019 % change
North America $111,722 $112,097 -0.3%
Europe, the Middle East and Africa $46,530 $46,654 -0.3%
Asia Pacific $27,362 $26,295 4.1%
Latin America $7,585 $7,878 -3.7%

Guidance

Korn Ferry forecast fee revenue of between $485 million and $505 million in its fiscal second quarter, which ranges from a decrease of 2.1% to an increase of 2.0% on a year-over-year basis.

Share price and market cap

Korn Ferry shares were down 5.11% to $37.35 at 9:42 a.m. Eastern time today; the company had a market cap of $2.21 billion, according to FT.com.

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