NYSE$KFY

Korn Ferry · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Korn Ferry reported strong Q3 2022 results with record fee revenue and EPS.

Korn Ferry announced record third quarter fiscal 2022 results, with fee revenue reaching $680.7 million, a 43% increase year-over-year. Diluted earnings per share was $1.54, and adjusted diluted earnings per share was $1.59, both new highs. Operating income and Adjusted EBITDA also reached new highs.

  • Korn Ferry reports quarterly fee revenue of $680.7 million in Q3 FY’22, an increase of 43% from Q3 FY’21 and a sequential increase of 6% from Q2 FY’22.
  • Net income attributable to Korn Ferry of $84.1 million and diluted and adjusted diluted earnings per share of $1.54 and $1.59 in Q3 FY’22, respectively, all reaching new highs.
  • Operating income and Adjusted EBITDA both reached new highs in Q3 FY’22 at $126.3 million (operating margin of 18.6%) and $138.3 million (Adjusted EBITDA margin of 20.3%), respectively.
  • During the third quarter, the Company completed the acquisition of Lucas Group, which is included in the RPO and Professional Search segment.

Headline financials

Total Revenue

$685M

Previous: $478M+43.3%
EPS (adj)

$1.59

Previous: $0.95+67.4%
Exec Search Engagements Billed

4.3K

Previous: 3.3K+33.0%
Exec Search New Engagements

1.8K

Previous: 1.3K+37.4%
Digital Sub & License Revenue

$29M

Previous: $22.6M+28.3%
Consulting Avg Bill Rate

$384.00

Previous: $367.00+4.6%
Capital Expenditures

-$32.7M

Previous: -$22.8M-43.0%
Free Cash Flow

$51.4M

Previous: $28.5M+80.6%
Net Income

$84.1M

Previous: $51.3M+63.9%
Operating Income

$126M

Previous: $65.2M+93.8%
Gross Profit

$283K

Previous: $186K+52.2%
Cash & Equivalents

$847M

Previous: $694M+22.0%
Total Assets

$3.34B

Previous: $2.86B+16.5%
Stock-Based Comp

$7.33M

Previous: $7.02M+4.4%

Revenue & EPS history

Korn Ferry · Revenue · Quarterly

$685M

Q3 2022+43.3%vs Q3 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Korn Ferry · $681M total across 4 segments · Q3 2022

  • Executive Search
    $239M+42.2%
  • Professional Search & Interim
    $189M+98.2%
  • Consulting
    $163M+19.5%
  • Digital
    $90.2M+19.0%

Forward guidance

Korn Ferry expects Q4 FY'22 fee revenue to be in the range of $670 million and $690 million, and diluted earnings per share to range between $1.44 to $1.60. Adjusted diluted earnings per share is expected to be in the range from $1.49 to $1.63.

Tailwinds

  • Q4 FY’22 fee revenue is expected to be in the range of $670 million and $690 million
  • Q4 FY’22 diluted earnings per share is expected to range between $1.44 to $1.60.
  • Q4 FY’22 adjusted diluted earnings per share is expected to be in the range from $1.49 to $1.63.

Headwinds

  • The very recent situation in Eastern Europe presents a level of risk and uncertainty that is difficult to quantify.
  • Guidance assumes no new major pandemic related lockdowns
  • Guidance assumes no further changes in worldwide geopolitical conditions
  • Guidance assumes no further changes in economic conditions
  • Guidance assumes no further changes in financial markets or foreign exchange rates

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 2022

Historical avgQ3 2022

+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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