NYSE$KFY

Korn Ferry · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Korn Ferry's financial performance rebounded sharply in Q2 2021, with revenue up 27% sequentially and improved earnings and profitability.

Korn Ferry reported a strong second quarter with fee revenue of $435.4 million, a 27% increase sequentially. Net income attributable to Korn Ferry was $27.8 million, with an operating margin of 11.1%. Adjusted EBITDA was $66.2 million, with an adjusted EBITDA margin of 15.2%.

  • Fee revenue was $435.4 million, a decrease of 12% year-over-year but a 27% increase sequentially.
  • Net income attributable to Korn Ferry was $27.8 million.
  • Operating income was $48.2 million, with an operating margin of 11.1%.
  • Diluted earnings per share was $0.51, and adjusted diluted earnings per share was $0.54.

Headline financials

Total Revenue

$438M

Previous: $504M-13.2%
EPS (adj)

$0.54

Previous: $0.81-33.3%
Exec Search Engagements Billed

3.1K

Previous: 3.8K-19.9%
Exec Search New Engagements

1.3K

Previous: 1.6K-15.5%
Digital Sub & License Revenue

$22.7M

Previous: $15.9M+42.8%
Consulting Avg Bill Rate

$318.00

Previous: $311.00+2.3%
Capital Expenditures

-$15.3M

Previous: -$23.8M+35.6%
Free Cash Flow

$12.4M

Previous: $19M-34.4%
Net Income

$27.8M

Previous: $42.8M-35.1%
Operating Income

$48.2M

Previous: $61.9M-22.1%
Gross Profit

$195K

Previous: $53K+267.9%
Cash & Equivalents

$553M

Previous: $464M+19.1%
Total Assets

$2.69B

Previous: $2.49B+8.3%
Stock-Based Comp

$7.23M

Previous: $6.06M+19.3%

Revenue & EPS history

Korn Ferry · Revenue · Quarterly

$438M

Q2 2021-13.2%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Korn Ferry · $436M total across 4 segments · Q2 2021

  • Executive Search
    $148M-21.2%
  • Consulting
    $127M-12.0%
  • Professional Search & Interim
    $85.7M-9.6%
  • Digital
    $75M+14.2%

Forward guidance

Due to the uncertainty caused by COVID-19, Korn Ferry will not issue specific revenue or earnings guidance for the third quarter of FY'21.

Tailwinds

  • Announcements around vaccines that have greater than 90% effectiveness.
  • The world has adopted new ways of working and interacting with substantial acceptance of business being conducted in a virtual world.

Headwinds

  • Unanswered questions regarding the capacity to manufacture the vaccines at scale.
  • Unanswered questions regarding how vaccines will be distributed and administered to the population at large.
  • Governments are putting lockdowns back in place as the number of COVID-19 cases and hospitalizations reach all-time highs.
  • Constantly evolving and unprecedented nature of what we are currently experiencing.
  • Ever-changing datapoints continues to cloud the near-term predictability of our business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.1%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-0.3%

Avg return

30 days after

49%

34 / 69 earnings

Positive

+15.1%

Q3 2018

Best reaction

-23.2%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-0.3%+0.2%
Q3 2026-1.5%-4.6%+0.5%
Q2 2026+4.2%+7.6%+4.7%
Q1 2026+0.4%-0.3%-2.9%
Q4 2025+0.0%+6.7%+11.2%
Q3 2025+7.6%+7.7%+0.7%
Q2 2025-9.0%-8.5%-13.5%
Q1 2025-6.6%-1.6%+2.3%
Q4 2024+5.2%+4.9%+6.5%
Q3 2024+1.5%+1.2%-0.8%
Q2 2024+1.0%+4.8%+3.4%
Q1 2024-2.6%-3.6%-2.6%
Q4 2023-5.2%-2.6%+2.0%
Q3 2023+2.6%-5.1%-10.0%
Q2 2023-5.4%-4.6%-3.9%
Q1 2023-14.7%-11.9%-17.0%
Q4 2022+3.6%+7.8%+16.0%
Q3 2022-0.1%+2.8%+5.9%
Q2 2022+1.2%+1.6%-4.5%
Q1 2022+3.3%+0.3%+4.3%
Q4 2021+8.4%+12.3%+0.3%
Q3 2021+11.4%+8.8%+6.8%
Q2 2021+7.1%+9.2%+16.0%
Q1 2021-5.1%-6.1%-5.1%
Q4 2020-3.0%-9.1%-7.5%
Q3 2020-5.5%-7.2%-3.3%
Q2 2020-0.8%-0.3%+6.7%
Q1 2020-5.2%-4.5%-6.5%
Q4 2019-15.7%-18.7%-17.4%
Q3 2019-4.7%-0.6%+0.5%
Q2 2019-3.5%-0.7%-10.3%
Q1 2019-23.2%-23.5%-25.7%
Q4 2018+13.4%+14.4%+14.8%
Q3 2018+15.1%+16.8%+24.3%
Q2 2018-1.1%-2.1%-1.0%
Q1 2018+7.9%+8.0%+19.9%
Q4 2017+4.3%+3.0%+3.5%
Q3 2017-3.2%-3.5%-5.9%
Q2 2017+10.4%+14.5%+6.0%
Q1 2017-5.3%-9.3%-12.1%
Q4 2016-21.1%-20.8%-18.2%
Q3 2016-6.6%
Q2 2016-1.9%
Q1 2016+0.9%
Q4 2015+2.3%
Q3 2015-2.8%
Q2 2015+1.3%
Q1 2015-1.3%
Q4 2014-3.4%
Q3 2014+13.9%
Q2 2014+4.4%
Q1 2014+14.0%
Q4 2013+4.5%
Q3 2013-1.3%
Q2 2013+2.3%
Q1 2013-5.3%
Q4 2012-0.5%
Q3 2012+2.8%
Q2 2012-1.7%
Q1 2012-1.3%
Q4 2009+1.5%
Q4 2011+1.5%
Q3 2010-0.3%
Q3 2011-0.3%
Q2 2011+1.6%
Q1 2011+3.5%
Q1 2010+3.5%
Q4 2010+3.5%
Q2 2010+3.5%

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