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View All NewsKorn Ferry revenue rises on growth in Futurestep, North American executive search
Korn Ferry International Inc. (NYSE: KFY) reported total fee revenue rose 1.5%, or 3.2% on a constant currency basis, in its fiscal fourth quarter ended April 30. The increase was driven by organic growth at its Futurestep division — which includes recruitment process outsourcing, project-based recruitment and other services — and in North American executive search.
| (US$ thousands) | Q4 2017 | Q4 2016 | % growth |
| Fee revenue | $406,065 | $399,960 | 1.5% |
| Net income | $27,736 | $6,375 | nm |
Quote
“There is notable runway in this market for broader talent offerings,” CEO Gary Burnison said. “We continue to benefit from strong demand for our holistic approach — from our anchor executive search offering to organizational advisory services, leadership development, compensation and rewards and more.”
Fee revenue by segment and geography
| (US$ thousands) | Q4 2017 | Q4 2016 | % growth |
| Executive search | |||
| North America | $97,264 | $94,678 | 2.7% |
| Europe, the Middle East, Africa | $37,210 | $36,161 | 2.9% |
| Asia Pacific | $20,061 | $21,199 | -5.4% |
| Latin America | $7,731 | $7,661 | 0.9% |
| Total executive search | $162,266 | $159,699 | 1.6% |
| Hay Group | $185,100 | $187,795 | -1.4% |
| Futurestep | $58,699 | $52,466 | 11.9% |
Full-year results
| (US$ thousands) | FY 2017 | FY 2016 | % growth |
| Fee revenue | $1,565,521 | $1,292,112 | 21.2% |
| Net income | $87,238 | $31,433 | 177.5% |
Guidance
Korn Ferry expects first-quarter fee revenue of between $382 million and $400 million, a year-over-year increase of between 1.7% and 6.5%.
Share price and market cap
Shares in Korn Ferry rose 4.92% to $35.38 in late-morning trading today and the company had a market cap of $2.02 billion, according to Yahoo.