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View All NewsKorn Ferry revenue down 29% in fiscal first quarter, but cites improving conditions
Revenue fell across business lines and geographies at Korn Ferry (NYSE: KFY) in its fiscal first quarter ended July 31. Total fee revenue fell 29.0% at the Los Angeles-based provider of executive search and other services. It also reported $27.5 million in restructuring charges during the quarter. However, the company did report improving business trends.
“It’s been nearly six months since the pandemic was declared, and the world temporarily paused,” CEO Gary Burnison said. “But the key word is temporarily — our firm is continuing to see some more green shoots, with July new business better than June, June better than May and May better than April.”
| (US$ thousands) | Q1 2021 | Q1 2020 | % change | % change (constant currency) |
| Fee revenue | $344,097 | $484,549 | -29.0% | -27.8% |
| Reimbursed expenses | $2,786 | $11,649 | -76.1% | |
| Total revenue | $346,883 | $496,198 | -30.1% | |
| Net income | ($30,855) | $43,650 | -170.7% |
The economic impact of Covid-19 drove fee revenue down during the quarter, Korn Ferry reported.
Fee revenue by segment
| (US$ thousands) | Q1 2021 | Q1 2020 | % change |
| Total executive search | $120,143 | $193,199 | -37.8% |
| Digital | $55,973 | $57,984 | -3.5% |
| Consulting | $99,318 | $137,542 | -27.8% |
| RPO and professional search | $68,663 | $95,824 | -28.3% |
Executive search fee revenue by geography
| (US$ thousands) | Q1 2021 | Q1 2020 | % change |
| North America | $69,315 | $111,722 | -38.0% |
| Europe, the Middle East and Africa | $30,081 | $46,530 | -35.4% |
| Asia Pacific | $17,252 | $27,362 | -36.9% |
| Latin America | $3,495 | $7,585 | -53.9% |
Guidance
Korn Ferry is withholding guidance given the uncertainty surrounding Covid-19.
Share price and market cap
Shares in Korn Ferry were down 4.11% to $29.83 as of 12:06 p.m. Eastern time; they were 39.07% above their 52-week low. The company had a market cap of $1.75 billion.