NYSE$KFY

Korn Ferry · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Korn Ferry's Q3 2021 financial results demonstrated business resilience with strong sequential fee revenue growth and record earnings and profitability.

Korn Ferry announced third quarter fiscal 2021 results with fee revenue of $475.4 million, a sequential increase of 9% from Q2 FY'21. The company reported record net income of $51.3 million, and diluted earnings per share of $0.94 and adjusted diluted earnings per share of $0.95, both all-time highs.

  • Fee revenue of $475.4 million in Q3 FY’21, a sequential increase of 9% from Q2 FY’21.
  • Record net income attributable to Korn Ferry of $51.3 million in Q3 FY’21.
  • Operating income and Adjusted EBITDA were both all-time highs at $65.2 million (operating margin of 13.7%) and $96.7 million (Adjusted EBITDA margin of 20.3%), respectively.
  • Highest diluted earnings per share and adjusted diluted earnings per share to date at $0.94 and $0.95, respectively, for Q3 FY’21.

Headline financials

Total Revenue

$478M

Previous: $528M-9.5%
EPS (adj)

$0.95

Previous: $0.75+26.7%
Exec Search Engagements Billed

3.3K

Previous: 3.8K-13.5%
Exec Search New Engagements

1.3K

Previous: 1.6K-16.9%
Digital Sub & License Revenue

$22.6M

Previous: $21.3M+6.1%
Consulting Avg Bill Rate

$367.00

Previous: $328.00+11.9%
Capital Expenditures

-$22.8M

Previous: -$33.8M+32.3%
Free Cash Flow

$28.5M

Previous: -$13.8M+307.0%
Net Income

$51.3M

Previous: $20M+156.7%
Operating Income

$65.2M

Previous: $31.6M+106.2%
Gross Profit

$186K

Previous: $217K-14.3%
Cash & Equivalents

$694M

Previous: $564M+23.1%
Total Assets

$2.86B

Previous: $2.74B+4.5%
Stock-Based Comp

$7.02M

Previous: $5.47M+28.3%

Revenue & EPS history

Korn Ferry · Revenue · Quarterly

$478M

Q3 2021-9.5%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Korn Ferry · $475M total across 4 segments · Q3 2021

  • Executive Search
    $168M-8.4%
  • Consulting
    $136M-3.0%
  • Professional Search & Interim
    $95.2M+3.6%
  • Digital
    $75.8M-23.8%

Forward guidance

Korn Ferry expects Q4 FY'21 fee revenue to be in the range of $475 million and $500 million, and diluted earnings per share is expected to range between $0.95 to $1.05, assuming no new major pandemic lockdowns and steady worldwide economic conditions, financial markets, and foreign exchange rates.

Tailwinds

  • Q4 FY'21 fee revenue is expected to be in the range of $475 million and $500 million.
  • Q4 FY'21 diluted earnings per share is expected to range between $0.95 to $1.05.
  • Assuming no new major pandemic lockdowns.
  • Assuming worldwide economic conditions remain steady.
  • Assuming financial markets and foreign exchange rates remain steady.

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 Q3 2021

Historical avgQ3 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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