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Korn Ferry revenue up 8% in constant currency; RPO, professional search drives growth

June 21, 2019

Revenue rose 8% in constant currency at Korn Ferry International Inc. (NYSE: KFY) in its fiscal fourth quarter ended April 30. The increase was 3.2% on a reported basis. The increase was mainly due to organic growth in RPO and professional search.

Net income also increased at the Los Angeles-headquartered provider of executive search; leadership and talent consulting; and recruitment process outsourcing. The company attributed the increase to a rise in fee revenue, partially offset by an increase in compensation and benefits primarily due to an increase in average headcount and an increase in general and administrative expenses.

(US$ thousands)	Q4 2019	Q4 2018	% change	% change (constant currency)
Fee revenue	$490,756	$475,364	3.2%	8%
Net income	$50,627	$42,309	19.7%

Fee revenue by segment

(US$ thousands)	Q4 2019	Q4 2018	% change	% change (constant currency)
Total executive search	$190,888	$190,669	0.1%	3%
Advisory	$207,082	$207,551	-0.2%	5%
RPO and professional search	$92,786	$77,144	20.3%	20%

North American executive search revenue rose 1.5%.

Executive search fee revenue by geography

(US$ thousands)	Q4 2019	Q4 2018	% change
North America	$113,651	$112,005	1.5%
Europe, the Middle East and Africa	$45,307	$45,476	-0.4%
Asia Pacific	$24,373	$24,612	-1.0%
Latin America	$7,557	$8,576	-11.9%

Full-year results

(US$ thousands)	FY 2019	FY 2018	% change
Fee revenue	$1,926,033	$1,767,217	9.0%
Net income	$104,796	$135,897	-22.9%

Guidance

Korn Ferry forecast fee revenue of between $466 million and $489 million in its fiscal first quarter, which ranges from a decrease of 0.1% to an increase of 5.0% on a year-over-year basis.

Share price and market cap

Korn Ferry shares were down 16.92% to $40.31 at 11:15 a.m. Eastern time today; the company had a market cap of $2.66 billion, according to FT.com.