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Korn Ferry revenue up 14.6% in constant currency in fiscal Q2

December 06 2018

Korn Ferry International Inc. (NYSE: KFY) yesterday reported total fee revenue rose 14.6% in constant currency in its fiscal second quarter ended Oct. 31. The increase was 11.8% on a reported basis. It was driven by organic growth in all three lines of business.

(US$ thousands) Q2 2019 Q2 2018 % change % change (constant currency)
Fee revenue $495,205 $443,018 11.8% 14.6%
Net income $47,317 $36,732 28.8%  

The Los Angeles-based provider of executive search and consulting also announced that it will formally change its name from Korn/Ferry International to Korn Ferry, effective Jan. 1. The company said the move is part of a rebranding campaign under which it is sunsetting all sub-brands and moving to one unified brand.

Quote

“For Korn Ferry’s recently completed second quarter, we achieved the highest top line and bottom line results in our history, with fee revenue of approximately $495 million and adjusted EBITDA and adjusted EBITDA margin of approximately $80 million and 16.2%, respectively,” said CEO Gary Burnison.

Fee revenue by segment

(US$ thousands) Q2 2019 Q2 2018 % change % change (constant currency)
Total executive search $197,634 $176,766 11.8% 14.0%
Advisory $217,089 $199,953 8.6% 11.8%
RPO and professional search $80,482 $66,299 21.4% 24.4%

Executive search fee revenue by geography

(US$ thousands) Q2 2019 Q2 2018 % change
North America $115,863 $101,544 14.1%
Europe, the Middle East and Africa $44,928 $41,346 8.7%
Asia Pacific $27,936 $25,912 7.8%
Latin America $8,907 $7,964 11.8%

Guidance

Korn Ferry expects third-quarter fee revenue to range between $470 million and $490 million.

Share price and market cap

Korn Ferry shares were down 4.6% to $43.14 at 1:15 p.m. Eastern time; the company had a market cap of $2.58 billion, according to FT.com.

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