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View All NewsKorn Ferry fee revenue rises 29.9% in fiscal Q4, growth across business lines
Korn Ferry (NYSE: KFY) fee revenue rose 29.9% year over year in the company’s fiscal fourth quarter ended April 30. The Los Angeles-based firm noted revenue rose in all business lines and its “RPO and professional search” segment benefited from the acquisitions of Lucas Group and Patina Solutions Group.
| (US$ thousands) | Q4 2022 | Q4 2021 | % change | % constant currency |
| Fee revenue | $721,139 | $555,151 | 29.9% | 33% |
| Reimbursed expenses | $5,864 | $2,243 | 161.4% | |
| Total revenue | $727,003 | $557,394 | 30.4% | |
| Net income | $93,059 | $66,751 | 39.4% |
CEO Gary Burnison said he was pleased with Korn Ferry’s results and noted that shortages of skilled labor are projected for years to come regardless of economic activity.
“The world and our clients have entered a new reality — a Covid transitory era in which there will be a contest for not only growth, but also relevancy and profitability,” Burnison said.
Fee revenue by segment
| (US$ thousands) | Q4 2022 | Q4 2021 | % change | % constant currency |
| Consulting | $173,944 | $153,573 | 13.3% | 16% |
| Digital | $89,521 | $80,499 | 11.2% | 15% |
| Total executive search | $244,199 | $200,728 | 21.7% | 23% |
| RPO and professional search | $213,475 | $120,351 | 77.4% | 81% |
Executive search revenue growth was driven by an increase in new search engagements and an increase in average fee revenue per search. Growth took place across all regions with the largest increase in North America.
Growth in consulting revenue was driven by “significant client workforce transformation initiatives” that included diversity, equity and inclusion as well as environmental and social governance initiatives.
Fee revenue in Korn Ferry’s “digital” segment reflected growth in total rewards and leadership development offerings.
In the RPO and professional search segment, RPO revenue rose 43% and professional search fee revenue rose 142% with a boost from acquisitions. Professional search engagements also increased, and the weighted-average fee billed per engagement increased as well, the company reported.
Korn Ferry noted that it completed its acquisition of Patina Solutions in the fourth quarter.
Executive search fee revenue by geography
| (US$ thousands) | Q4 2022 | Q4 2021 | % change |
| North America | $156,232 | $130,790 | 19.5% |
| Europe, the Middle East and Africa | $49,502 | $41,253 | 20.0% |
| Asia Pacific | $30,211 | $23,604 | 28.0% |
| Latin America | $8,254 | $5,081 | 62.4% |
Fourth-quarter net income rose 39.4%.
Full-year results
| (US$ thousands) | FY 2022 | FY 2021 | % change | % constant currency |
| Fee revenue | $2,626,718 | $1,810,047 | 45.1% | 45% |
| Reimbursed expenses | $16,737 | $9,899 | 69.1% | |
| Total revenue | $2,643,455 | $1,819,946 | 45.2% | |
| Net income | $330,845 | $115,562 | 186.3% |
Guidance
Korn Ferry forecast fee revenue of between $680 million and $710 million for the fiscal first quarter.
Share price and market cap
Shares in Korn Ferry were up 4.94% to $56.50 as of 12:37 p.m. Eastern time; they were 10.62% above their 52-week low, according to FT.com. The company had a market cap of $2.90 billion.