Daily News
View All NewsKorn Ferry reports revenue up 43% in fiscal Q3, cites new business
Fee revenue rose 43.2% at Korn Ferry (NYSE: KFY) in its fiscal third quarter ended Jan. 31 amid increases in new business. Executive search revenue at the Los Angeles-based firm jumped 42.2% in the third quarter as the number of new searches rose 37% year over year. Average fee revenue per search also rose.
Korn Ferry also reported a surge in RPO and professional search revenue of 98.2% year over year in the third quarter thanks to increases of 150% in professional search fee revenue and 67% in RPO revenue. Professional search revenue growth was fueled by more engagements billed and a higher weighted-average fee billed per engagement; in addition, the company closed on its acquisition of the Lucas Group during the quarter.
“I am extremely pleased with our results during the fiscal third quarter, as Korn Ferry once again achieved new financial performance highs,” CEO Gary Burnison said.
| (US$ thousands) | Q3 2022 | Q3 2021 | % change | % constant currency |
| Fee revenue | $680,741 | $475,360 | 43.2% | 46% |
| Reimbursed expenses | $4,215 | $2,520 | 67.3% | |
| Total revenue | $684,956 | $477,880 | 43.3% | |
| Net income | $85,057 | $51,588 | 64.9% |
Consulting revenue rose 19.5% and was driven by significant client workforce transformation initiatives such as those in diversity, equity and inclusion as well as environmental, social and governance. Meanwhile, revenue in the company’s digital segment rose 19.0%.
Fee revenue by segment
| (US$ thousands) | Q3 2022 | Q3 2021 | % change | % constant currency |
| Consulting | $162,889 | $136,268 | 19.5% | 22% |
| Digital | $90,194 | $75,791 | 19.0% | 22% |
| Total executive search | $238,999 | $168,104 | 42.2% | 44% |
| RPO and professional search | $188,659 | $95,197 | 98.2% | 101% |
Executive search fee revenue by geography
| (US$ thousands) | Q3 2022 | Q3 2021 | % change |
| North America | $152,597 | $106,002 | 44.0% |
| Europe, the Middle East and Africa | $47,509 | $35,991 | 32.0% |
| Asia Pacific | $31,425 | $21,643 | 45.2% |
| Latin America | $7,468 | $4,468 | 67.1% |
Guidance
Korn Ferry noted the situation in Eastern Europe presents a level of risk and uncertainty that is difficult to quantify; however, the company expects fourth-quarter revenue to range between $670 million and $690 million.
Share price and market cap
Shares in Korn Ferry were up 5.29% to $64.24 as of 11:37 a.m. Eastern time; they were 9.01% above their 52-week low, according to FT.com. The company had a market cap of $3.32 billion.