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View All NewsKorn Ferry revenue down 12% in fiscal Q2
Executive search firm Korn Ferry Inc. (NYSE: KFY) reported fee revenue fell 11.6% in its fiscal second quarter ended Oct. 31 because of the ongoing Covid-19 crisis. Net income improved from a loss in the first quarter, although it was down compared to the second quarter of last year. The Los Angeles-based company reinstated full base pay for top executives that was reduced earlier this year.
Fee revenue fell across most business lines, but the year-over-year declines were less steep than those in the first quarter.
“I’m not only encouraged by the financial results, but extremely proud of all that has been accomplished by our Korn Ferry colleagues to help our business rebound so dramatically,” CEO Gary Burnison said in a statement.
Korn Ferry reported $2.4 million in restructuring charges in the second fiscal quarter, but that is down from the $27.5 million in reported in the first quarter.
| (US$ thousands) | Q2 2021 | Q2 2020 | % change |
| Fee revenue | $435,439 | $492,389 | -11.6% |
| Reimbursed expenses | $2,350 | $11,788 | -80.1% |
| Total revenue | $437,789 | $504,177 | -13.2% |
| Net income | $28,078 | $43,032 | -34.8% |
Korn Ferry in a regulatory filing also announced the board’s compensation committee voted to restore the full base salaries of executive officers and the annual cash retainers for nonemployee board members. Executive officers’ base salaries and the cash retainers were set to be reduced by 50% from May 1 to Dec. 31 because of the Covid-19 crisis.
Fee revenue by segment
| (US$ thousands) | Q2 2021 | Q2 2020 | % change |
| Total executive search | $148,060 | $187,855 | -21.2% |
| Digital | $75,043 | $65,724 | 14.2% |
| Consulting | $126,685 | $144,036 | -12.0% |
| RPO and professional search | $85,651 | $94,774 | -9.6% |
Executive search, consulting, RPO and professional search revenue continued to be impacted by a decline in demand caused by the response to Covid-19. Digital fee revenue increased primarily due to the acquisition of Miller Heiman Group, AchieveForum and Strategy Execution in the third quarter of the previous fiscal year.
Executive search fee revenue by geography
| (US$ thousands) | Q2 2021 | Q2 2020 | % change |
| North America | $91,168 | $113,818 | -19.9% |
| Europe, the Middle East and Africa | $31,629 | $39,821 | -20.6% |
| Asia Pacific | $20,807 | $25,944 | -19.8% |
| Latin America | $4,456 | $8,272 | -46.1% |
Guidance
Korn Ferry did not release guidance citing the continued uncertainty surrounding Covid-19.
Share price and market cap
Shares in Korn Ferry were up 3.48% to $39.58 as of 12:38 p.m. Eastern time; shares were 10.03% below their 52-week high set Jan. 22. The company had a market cap of $2.12 billion.