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View All NewsKorn Ferry sees executive search and RPO revenue fall in fiscal Q2
Executive search and RPO revenue fell at Korn Ferry (NYSE: KFY), which today reported earnings for its fiscal second quarter ended Oct. 31. Total revenue at the Los Angeles-based firm fell 3.3% year over year. The decline was 5% in constant currency. Net income also shrunk as the company took a $63.5 million workforce restructuring charge.
Still, Korn Ferry noted revenue in its digital business hit a record high in constant currency and cited new RPO wins.
“Despite a persistent, uneven economic environment, earnings and profitability held steady sequentially as we delivered $99 million of adjusted EBITDA at a 14% margin,” CEO Gary Burnison said in a press release.
Revenue by business line
Consulting revenue at Korn Ferry rose 2.7%. The company cited growth in the business’ organizational strategy and assessment and succession solutions.
Digital revenue rose 2.9%, driven by increases in its total reward, organizational strategy and sales effectiveness offerings.
Executive search revenue fell 7.0%, with the company citing the impact from the “uncertain and challenging economic environment.”
Professional search and interim revenue rose 2.7% with help from acquired revenue.
RPO revenue declined 18.3% amid reduced demand brought on by the uncertain economic environment.
Click to enlarge.
Guidance
Korn Ferry forecast third-quarter revenue to be down between 2.3% and 5.3% year over year.
Share price
Shares in Korn Ferry were down 0.2% to $53.27 as of 11:58 a.m. Eastern time today. They were 11.09% below their 52-week high.