NYSE$KFY

Korn Ferry · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Korn Ferry reported record fee revenue and adjusted diluted earnings per share in Q4 FY'21.

Korn Ferry announced record fourth quarter fee revenue of $555.2 million, an increase of 26% from Q4 FY’20. Diluted earnings per share and adjusted diluted earnings per share were $1.21. Operating income and Adjusted EBITDA were all-time highs at $86.3 million and $112.8 million, respectively.

  • Korn Ferry reported record fee revenue of $555.2 million in Q4 FY’21, an increase of 26% from Q4 FY’20.
  • Record net income attributable to Korn Ferry and adjusted diluted earnings per share of $66.2 million and $1.21 in Q4 FY’21, respectively.
  • Operating income and Adjusted EBITDA were both all-time highs in Q4 FY’21 at $86.3 million and $112.8 million, respectively.
  • Declared a quarterly dividend of $0.12 per share on June 21, 2021, a 20% increase in the quarterly dividend.

Headline financials

Total Revenue

$557M

Previous: $449M+24.1%
EPS (adj)

$1.21

Previous: $0.60+101.7%
Exec Search Engagements Billed

3.8K

Previous: 3.4K+10.8%
Exec Search New Engagements

1.7K

Previous: 1.2K+39.3%
Digital Sub & License Revenue

$23.6M

Previous: $20.9M+12.9%
Consulting Avg Bill Rate

$359.00

Previous: $292.00+22.9%
Capital Expenditures

$8.28M

Previous: $7.71M+7.4%
Free Cash Flow

$189M

Previous: $172M+10.1%
Net Income

$66.2M

Previous: -$802K+8354.4%
Operating Income

$86.3M

Previous: $22.2M+288.3%
Gross Profit

$533M

Previous: $421M+26.7%
Cash & Equivalents

$851M

Previous: $689M+23.4%
Total Assets

$3.06B

Previous: $2.74B+11.4%
Stock-Based Comp

$6.95M

Previous: $5.83M+19.2%

Revenue & EPS history

Korn Ferry · Revenue · Quarterly

$557M

Q4 2021+24.1%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Korn Ferry · $555M total across 4 segments · Q4 2021

  • Executive Search
    $201M+19.6%
  • Consulting
    $154M+27.0%
  • Professional Search & Interim
    $120M+46.2%
  • Digital
    $80.5M+16.2%

Forward guidance

Assuming no new major pandemic lockdowns, worldwide economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:

Tailwinds

  • Q1 FY’22 fee revenue is expected to be in the range of $535 million and $555 million
  • Q1 FY’22 fee revenue is expected to be in the range of $535 million and $555 million
  • Q1 FY’22 diluted earnings per share is expected to range between $1.04 to $1.14.
  • Q1 FY’22 diluted earnings per share is expected to range between $1.04 to $1.14.

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 Q4 2021

Historical avgQ4 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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