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View All NewsKorn Ferry revenue up 7% in constant currency on RPO and professional search
Revenue rose 7% in constant currency at Korn Ferry International Inc. (NYSE: KFY) in its fiscal first quarter ended July 31; it was up 4.1% on a reported basis. The increase was primarily attributed to growth in RPO and professional search.
The Los Angeles-headquartered firm also reported net income increased to $42.9 million from a loss of $36.8 million in the previous fiscal first quarter. The company attributed the improvement to a decrease in general and administrative expenses — mainly due to a $106.6 million tradename write-off in the prior-year period — partially offset by an increase in income tax provisions in the current fiscal year’s first quarter.
Korn Ferry provides executive search, leadership and talent consulting, and recruitment process outsourcing.
| (US$ thousands) | Q1 2020 | Q1 2019 | % change | % change (constant currency) |
| Fee revenue | $484,549 | $465,568 | 4.1% | 7% |
| Net income/loss | $42,951 | -$38,611 | nm |
Fee revenue by segment
| (US$ thousands) | Q1 2020 | Q1 2019 | % change | % change (constant currency) |
| Total executive search | $193,199 | $192,924 | 0.1% | 2% |
| Advisory | $195,526 | $195,375 | 0.1% | 3% |
| RPO and professional search | $95,824 | $77,269 | 24.0% | 27% |
Executive search fee revenue by geography
| (US$ thousands) | Q1 2020 | Q1 2019 | % change |
| North America | $111,722 | $112,097 | -0.3% |
| Europe, the Middle East and Africa | $46,530 | $46,654 | -0.3% |
| Asia Pacific | $27,362 | $26,295 | 4.1% |
| Latin America | $7,585 | $7,878 | -3.7% |
Guidance
Korn Ferry forecast fee revenue of between $485 million and $505 million in its fiscal second quarter, which ranges from a decrease of 2.1% to an increase of 2.0% on a year-over-year basis.
Share price and market cap
Korn Ferry shares were down 5.11% to $37.35 at 9:42 a.m. Eastern time today; the company had a market cap of $2.21 billion, according to FT.com.