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View All NewsKorn Ferry revenue up 14.6% in constant currency in fiscal Q2
Korn Ferry International Inc. (NYSE: KFY) yesterday reported total fee revenue rose 14.6% in constant currency in its fiscal second quarter ended Oct. 31. The increase was 11.8% on a reported basis. It was driven by organic growth in all three lines of business.
| (US$ thousands) | Q2 2019 | Q2 2018 | % change | % change (constant currency) |
| Fee revenue | $495,205 | $443,018 | 11.8% | 14.6% |
| Net income | $47,317 | $36,732 | 28.8% |
The Los Angeles-based provider of executive search and consulting also announced that it will formally change its name from Korn/Ferry International to Korn Ferry, effective Jan. 1. The company said the move is part of a rebranding campaign under which it is sunsetting all sub-brands and moving to one unified brand.
Quote
“For Korn Ferry’s recently completed second quarter, we achieved the highest top line and bottom line results in our history, with fee revenue of approximately $495 million and adjusted EBITDA and adjusted EBITDA margin of approximately $80 million and 16.2%, respectively,” said CEO Gary Burnison.
Fee revenue by segment
| (US$ thousands) | Q2 2019 | Q2 2018 | % change | % change (constant currency) |
| Total executive search | $197,634 | $176,766 | 11.8% | 14.0% |
| Advisory | $217,089 | $199,953 | 8.6% | 11.8% |
| RPO and professional search | $80,482 | $66,299 | 21.4% | 24.4% |
Executive search fee revenue by geography
| (US$ thousands) | Q2 2019 | Q2 2018 | % change |
| North America | $115,863 | $101,544 | 14.1% |
| Europe, the Middle East and Africa | $44,928 | $41,346 | 8.7% |
| Asia Pacific | $27,936 | $25,912 | 7.8% |
| Latin America | $8,907 | $7,964 | 11.8% |
Guidance
Korn Ferry expects third-quarter fee revenue to range between $470 million and $490 million.
Share price and market cap
Korn Ferry shares were down 4.6% to $43.14 at 1:15 p.m. Eastern time; the company had a market cap of $2.58 billion, according to FT.com.