NYSE$KFY

Korn Ferry · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Korn Ferry's Q3 FY24 results saw a decrease in fee revenue but an increase in earnings and profitability.

Korn Ferry reported Q3 FY24 fee revenue of $668.7 million, a 2% year-over-year decrease. However, earnings and profitability increased, with Adjusted EBITDA reaching $101.7 million and a margin of 15.2%. Consulting and Digital segments showed resilience, with revenue up 3% and 6% respectively.

  • Fee revenue was $668.7 million, down 2% year-over-year.
  • Diluted earnings per share was $1.13, and adjusted diluted earnings per share was $1.07.
  • Adjusted EBITDA was $101.7 million, with a margin of 15.2%.
  • Consulting and Digital fee revenue increased by 3% and 6%, respectively.

Headline financials

Total Revenue

$677M

Previous: $687M-1.5%
EPS

$1.13

Previous: $1.01+11.9%
Exec Search Engagements Billed

3.5K

Previous: 4.1K-15.0%
Exec Search New Engagements

1.4K

Previous: 1.5K-6.0%
Digital Sub & License Revenue

$32.8M

Previous: $29.6M+10.8%
Consulting Avg Bill Rate

$438.00

Previous: $392.00+11.7%
Capital Expenditures

-$43.3M

Previous: -$54M+19.9%
Free Cash Flow

$15.8M

Previous: -$42.8M+136.9%
Net Income

$59.1M

Previous: $11.2M+425.2%
Operating Income

$49.9M

Previous: $12.5M+298.5%
Gross Profit

$1.1M

Previous: $1.02M+7.6%
Cash & Equivalents

$737M

Previous: $772M-4.5%
Total Assets

$3.56B

Previous: $3.41B+4.4%
Stock-Based Comp

$10.3M

Previous: $9.48M+8.7%

Revenue & EPS history

Korn Ferry · Revenue · Quarterly

$677M

Q3 2024-1.5%vs Q3 2023
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Korn Ferry · $616M total across 4 segments · Q2 2024

  • Executive Search
    $203M-7.1%
  • Consulting
    $178M+2.7%
  • Professional Search & Interim
    $138M+2.7%
  • Digital
    $97.1M+3.0%

Forward guidance

Korn Ferry expects Q4 FY24 fee revenue to be in the range of $675 million to $695 million, with diluted earnings per share between $1.06 and $1.14, and adjusted diluted earnings per share between $1.09 and $1.17.

Tailwinds

  • Q4 FY’24 fee revenue is expected to be in the range of $675 million and $695 million.
  • Q4 FY’24 diluted earnings per share is expected to range between $1.06 to $1.14.
  • Q4 FY’24 adjusted diluted earnings per share is expected to be in the range from $1.09 to $1.17.

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 2024

Historical avgQ3 2024

+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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