NYSE$KFY

Korn Ferry · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Korn Ferry reported an increase in fee revenue and net income, with diluted earnings per share at $1.38 and adjusted diluted earnings per share at $1.43.

Korn Ferry announced Q2 Fiscal Year 2023 results, with fee revenue of $727.8 million, a 14% increase year-over-year (20% at constant currency). Diluted earnings per share were $1.38, and adjusted diluted earnings per share were $1.43. The company completed the acquisition of Infinity Consulting Solutions during the quarter.

  • Fee revenue was $727.8 million, up 14% year-over-year and 20% at constant currency.
  • Net income attributable to Korn Ferry was $73.5 million, with diluted EPS of $1.38 and adjusted diluted EPS of $1.43.
  • Operating income was $119.6 million (16.4% margin), and Adjusted EBITDA was $131.1 million (18.0% margin).
  • The company repurchased 622,500 shares for $33.1 million and declared a dividend of $0.15 per share.

Headline financials

Total Revenue

$736M

Previous: $643M+14.3%
EPS (adj)

$1.43

Previous: $1.53-6.5%
Exec Search Engagements Billed

4.1K

Previous: 4.4K-7.1%
Exec Search New Engagements

1.6K

Previous: 1.8K-10.5%
Digital Sub & License Revenue

$28.9M

Previous: $26.3M+9.9%
Consulting Avg Bill Rate

$371.00

Previous: $371.00+0.0%
Interim Average Bill Rate

$107.00

No prior period
Capital Expenditures

-$36.9M

Previous: -$19M-94.2%
Free Cash Flow

$36.7M

Previous: $56.8M-35.4%
Net Income

$73.5M

Previous: $75.8M-2.9%
Operating Income

$120M

Previous: $104M+15.3%
Gross Profit

$738K

Previous: $228K+223.7%
Cash & Equivalents

$594M

Previous: $725M-18.1%
Total Assets

$3.26B

Previous: $3.12B+4.6%
Stock-Based Comp

$9.67M

Previous: $7.49M+29.1%

Revenue & EPS history

Korn Ferry · Revenue · Quarterly

$736M

Q2 2023+14.3%vs Q2 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Korn Ferry · $621M total across 4 segments · Q2 2023

  • Executive Search
    $218M-7.3%
  • Consulting
    $173M+5.0%
  • Professional Search & Interim
    $135M
  • Digital
    $94.3M+6.4%

Forward guidance

Korn Ferry anticipates Q3 FY'23 fee revenue to be in the range of $660 million to $690 million, with diluted earnings per share expected to range between $0.40 and $0.66. Adjusted diluted earnings per share is expected to be in the range from $0.88 to $1.00. Adjusted EBITDA margin is expected to be in the range of 14% to 15%.

Tailwinds

  • New business trends coming out of Q2 FY’23 remain strong.

Headwinds

  • Global inflation presents a level of risk and uncertainty.
  • Rising interest rates present a level of risk and uncertainty.
  • Escalating geo-political tensions present a level of risk and uncertainty.

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 2023

Historical avgQ2 2023

+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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