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View All NewsKorn Ferry revenue roughly flat in fiscal Q1 with boost from acquisitions
Korn Ferry (NYSE: KFY) reported revenue was roughly flat year over year in its fiscal first quarter ended July 31, rising only 0.3% in constant currency to $699.2 million.
Executive search revenue fell 12.1% year over year amid decreased demand from clients affected by the uncertain economic environment. Korn Ferry also noted reduced demand for perm placement and RPO.
However, revenue increased in Korn Ferry’s “professional search and interim” business by 43.5% in constant currency thanks to the acquisitions of Infinity Consulting Solutions and Salo. The revenue boost from the acquisitions was partially offset by a decline in permanent placement fee revenue.
Korn Ferry forecasts second-quarter fee revenue to be in the range of $675 million to $695 million, representing a year-over-year decrease of between 4.5% and 7.3%.
Korn Ferry Q1 2024
| (USD thousands) | Q1 2024 | Q1 2023 | Change | % constant currency |
| Fee revenue | 699,189 | 695,903 | 0.5% | 0.3% |
| Reimbursed expenses | 7,073 | 7,245 | -2.4% | - |
| Total revenue | 706,262 | 703,148 | 0.4% | - |
| Net income | 47,185 | 78,536 | -39.9% | - |
Fee revenue by segment
| (USD thousands) | Q1 2024 | Q1 2023 | Change | % constant currency |
| Consulting | 168,088 | 166,484 | 1.0% | 0.8% |
| Digital | 87,986 | 83,761 | 5.0% | 5.2% |
| Total executive search | 205,234 | 232,789 | -11.8% | -12.1% |
| Professional search and interim | 142,179 | 98,947 | 43.7% | 43.5% |
| RPO | 95,702 | 113,922 | -16.0% | -15.9% |
Executive search fee revenue by geography
| (USD thousands) | Q1 2024 | Q1 2023 | Change | % constant currency |
| North America | 127,498 | 151,544 | -15.9% | - |
| Europe, the Middle East and Africa | 46,776 | 47,056 | -0.6% | - |
| Asia Pacific | 24,539 | 26,381 | -7.0% | - |
| Latin America | 6,421 | 7,808 | -17.8% | - |
Gary D. Burnison, CEO, Korn Ferry, said, “Our diversification strategy continues to positively influence our results. Our consulting and digital businesses have never been more meaningful—especially in tomorrow’s economy where there will be continued demographic and skill shifts across much of the world. We’re responding with expertise and solutions focused on interim talent, learning and professional development, engagement, retention, culture, assessments, and organizational design, as well as total rewards. We are creating more ways to deepen relationships with our clients.”
Korn Ferry shares closed yesterday at USD 48.76, down 2.23% on the day and 9.12% above its 52-week low of USD 44.69, set on 4 May 2023. The company has a market cap of USD 2.67 billion.