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View All NewsKorn Ferry revenue up 18.9% in fiscal Q1, cites continued demand for integrated service offerings
Korn Ferry (NYSE: KFY) reported fee revenue rose 18.9% in its fiscal first quarter ended July 31. The increase was 24% on a constant currency basis.
The Los Angeles-based firm noted the increase in fee revenue was primarily driven by continued demand for integrated service offerings and the acquisitions of Lucas Group and Patina Solutions Group in the previous quarters.
| (US$ thousands) | Q1 2023 | Q1 2022 | % change | % constant currency |
| Fee revenue | $695,903 | $585,395 | 18.9% | 24% |
| Reimbursed expenses | $7,245 | $2,703 | 168.0% | |
| Total revenue | $703,148 | $588,098 | 19.6% | |
| Net income | $78,536 | $76,397 | 2.8% |
CEO Gary Burnison said we are in a new paradigm as global organizations fight for growth and relevancy while facing economic ambiguity.
“Today’s workscape has never been more complex — an imbalanced labor market, skills shortage and a major shift in how and where people work,” Burnison said. “While cycles will continually change, the long-term premium on people endures. Strategy without talent is helpless, and talent without strategy is hopeless.”
Fee revenue by segment
| (US$ thousands) | Q1 2023 | Q2 2021 | % change | % constant currency |
| Consulting | $166,484 | $148,478 | 12.1% | 18% |
| Digital | $83,761 | $80,671 | 3.8% | 10% |
| Total executive search | $232,789 | $216,904 | 7.3% | 11% |
| Professional Search & Interim | $98,947 | $51,837 | 90.9% | 98% |
| RPO | $113,922 | $87,505 | 30.2% | 37% |
Executive search revenue rose 7.3% with increases in the new search engagements and weighted-average fees revenue per engagement.
In May, Korn Ferry separated its RPO and professional search segment into two segments: Professional search and interim segment, and the RPO segment.
Korn Ferry on Aug. 1 completed the acquisition of Infinity Consulting Solutions, which will be included in the professional search and interim segment in the second quarter.
Executive search fee revenue by geography
| (US$ thousands) | Q1 2023 | Q1 2022 | % change |
| North America | $151,544 | $138,678 | 9.3% |
| Europe, the Middle East and Africa | $47,056 | $42,747 | 10.1% |
| Asia Pacific | $26,381 | $28,703 | -8.1% |
| Latin America | $7,808 | $6,776 | 15.2% |
Guidance
Korn Ferry forecast second-quarter fee revenue to range between $678 million and $708 million.
Share and market cap
Shares in Korn Ferry were down 10.53% to $53.89 as of 12:00 noon Eastern time; they were 5.51% above their 52-week low, according to FT.com. The company had a market cap of $3.27 billion.