NYSE$KFY

Korn Ferry · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Korn Ferry's Q4 FY23 results reflected a mix of growth in some segments offset by declines in others, influenced by global economic factors and strategic shifts towards interim solutions.

Korn Ferry reported Q4 FY'23 fee revenue of $730.9 million, a 1% increase year-over-year (3% on a constant currency basis). Net income attributable to Korn Ferry was $47.5 million, with diluted earnings per share at $0.91 and adjusted diluted earnings per share at $1.01. The company's diversification strategy and acquisitions in the interim business contributed to revenue, while declines in Executive Search and Permanent Placement impacted overall operating margin.

  • Fee revenue increased by 1% to $730.9 million, driven by growth in the Interim portion of Professional Search & Interim.
  • Net income attributable to Korn Ferry decreased to $47.5 million, with diluted EPS of $0.91.
  • Operating margin was 9.9%, and Adjusted EBITDA margin was 13.4%, reflecting a change in fee revenue mix.
  • The company repurchased 255,000 shares of stock for $13.4 million and increased its quarterly cash dividend by 20%.

Headline financials

Total Revenue

$738M

Previous: $727M+1.5%
EPS (adj)

$1.01

Previous: $1.75-42.3%
Exec Search Engagements Billed

3.8K

Previous: 4.4K-14.6%
Exec Search New Engagements

1.5K

Previous: 1.9K-18.5%
Digital Sub & License Revenue

$31.6M

Previous: $29.1M+8.6%
Consulting Avg Bill Rate

$390.00

Previous: $369.00+5.7%
Interim Average Bill Rate

$124.00

No prior period
Capital Expenditures

$16.3M

Previous: $16.7M-2.5%
Free Cash Flow

$235M

Previous: $263M-10.9%
Net Income

$47.5M

Previous: $91.7M-48.2%
Operating Income

$72.6M

Previous: $139M-47.7%
Gross Profit

$650M

Previous: $685M-5.1%
Cash & Equivalents

$844M

Previous: $978M-13.7%
Total Assets

$3.57B

Previous: $3.46B+3.2%
Stock-Based Comp

$9.38M

Previous: $7.24M+29.6%

Revenue & EPS history

Korn Ferry · Revenue · Quarterly

$738M

Q4 2023+1.5%vs Q4 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Korn Ferry · $631M total across 4 segments · Q4 2023

  • Executive Search
    $213M-12.9%
  • Consulting
    $175M+0.8%
  • Professional Search & Interim
    $152M-28.9%
  • Digital
    $91.5M+2.2%

Forward guidance

Korn Ferry expects Q1 FY'24 fee revenue to be in the range of $668 million and $698 million, with diluted earnings per share between $0.78 and $0.95, and adjusted diluted earnings per share between $0.84 and $1.00.

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 2023

Historical avgQ4 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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